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MICHIGAN NEWS

Sixth Circuit returns Allegan County tax-foreclosure case to district court

The October 5 ruling reopened claims seeking surplus proceeds from tax-foreclosure sales. It requires further proceedings on whether Allegan County had notice of an earlier class action and does not order a refund.

The Sixth Circuit vacated the dismissal as time-barred of federal claims by Denise Thompson and Gary and Josette Day against Allegan County. They seek surplus proceeds from tax-foreclosure sales in 2013 and 2014.

The panel said Michigan’s class-action tolling rules may apply, but the record did not establish whether the County had notice of the earlier Wayside case before it was named as a defendant in 2023. The district court must consider that notice question, which the panel said could determine whether the claims were timely.

The ruling does not decide the claims’ merits or order payment. Sherry Cunningham was dismissed from the appeal, although her name remains in the caption. The opinion is marked “not recommended for publication.”

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