On July 17, 2020, the Michigan Supreme Court issued an important decision in Rafaeli, LLC and Andre Ohanessian v. Oakland County and Andrew Meisner that will impact county budgets and tax-foreclosure protocols.
In the case, Plaintiff Rafaeli owed $8.41 in unpaid property taxes from 2011, which grew to $285.81 after interest, penalties, and fees. Oakland County and its treasurer foreclosed on Rafaeli’s property for the delinquency, sold the property at public auction for $24,500, and retained all the sale proceeds in excess of the taxes, interest, penalties and fees. Plaintiff Ohanessian owed approximately $6,000 in unpaid taxes, interest, penalties, and fees from 2011. Like Rafaeli’s property, defendants foreclosed on Ohanessian’s property for the delinquency, sold his property at auction for $82,000, and retained all the proceeds. Plaintiffs claimed that the defendants’ retention of the surplus proceeds constituted a taking of their properties without payment of just compensation as required by Michigan’s Constitution. They filed a lawsuit and asserted a claim referred to as “inverse condemnation” against the defendants.
Find out how the court ruled in this particular case here!
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