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Foreclosure lawsuits headed to federal court

ALPENA — Lawsuits alleging that governments across the state — including Northeast Michigan counties — are wrongly profiting from foreclosures have moved to federal court.

A suit that includes Alpena, Alcona and Montmorency counties as defendants will be refiled in federal court after 34th Circuit Court Judge Robert Bennett dismissed the case with a court order in July. Attorney Philip Ellison, who is representing several clients in lawsuits against 80 of the state’s 83 counties, said that case was dismissed because Bennett ruled there was no constitutional wrongdoing.

Meanwhile, a separate suit over the same issues that includes Presque Isle County as a defendant will head to the U.S. District Court of the Eastern District of Michigan after Judge Roy Hayes of the 33rd Circuit Court in Charlevoix ruled there is a plausible constitutional violation.

Ellison, with the Hemlock-based firm Outside Legal Counsel, and his clients allege it is illegal for counties to sell tax-foreclosed property for more than the amount of taxes that are owed.

“We’ve always wanted to go to federal court on this, but one of the rules that was in place until fairly recently, based on a U.S. Supreme Court ruling, was that we had to try in state court first,” Ellison said Friday. “State courts just won’t, in my opinion, won’t protect constitutional rights, and then we can go to federal court and seek relief.”

Calls to attorneys representing Alpena, Presque Isle, Alcona, and Montmorency counties were not returned on Friday.

Alpena and Montmorency counties are being represented by Allan Vander Laan, of the firm Cummings, McClorey, Davis and Acho, which has several offices in Michigan, Missouri and California. Alcona County is being represented by John Freel, from the Freel Professional Corp., based in Tawas City. Presque Isle County’s attorney is Charles Lawler, from the Lansing-based firm Clark Hill.

Co-defendants with Alpena, Alcona and Montmorency counties are Oscoda, Rosscommon, Ogemaw, Clare, Gladwin, Arenac, Isabella, Midland, Gratiot, Bay, Saginaw and Tuscola counties. Charlevoix, Cheboygan, Leelanau, Grand Traverse, Antrim, Emmet, Otsego, Crawford, and Kalkaska counties are co-defendants with Presque Isle County.

Crystal Nelson can be reached at 989-358-5687 or cnelson@thealpenanews.com.

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