HomeMy WebLinkAboutResolutions - 2022.12.08 - 37765
December 8, 2022
RESOLUTION #2022-2323 _ 22-398
Sponsored By: Gwen Markham
Corporation Counsel - Budget Amendment Settlement of Bowles v Oakland County and Dover
Glen Condominium Assn v Oakland County
Chairperson and Members of the Board:
WHEREAS in Rafaeli v Oakland County, 505 Mich 429 (2020), the Michigan Supreme Court held that
surplus proceeds from a property tax foreclosure auction must be returned to the former property
owner; and
WHEREAS two class action lawsuits entitled Bowles v County Of Oakland, et al., Case No 20-12838
and Dover Glen Condominium Association v Oakland County, et al, Case No. 22-11468 were filed in
the US District Court, Eastern District of Michigan (individually the “Bowles Class Action” and the
“Dover Glen Class Action” and collectively the “Class Actions”) in which former property owners and
lienholders seek to recover surplus proceeds from property tax foreclosure auctions under the
Rafaeli decision; and
WHEREAS although the US District Court has not decided who is right or wrong in the Class Actions
and Oakland County denies liability because it was following state law in effect at the time, the
plaintiffs in the Class Actions and Oakland County have reached a tentative settlement (the
“Settlement”) to avoid the risk, uncertainty and costs of further litigation; and
WHEREAS the terms of the Settlement are described in greater detail in the parties’ Joint Motion for
Preliminary Approval of Settlement which was filed in the Bowles case at ECF Docket Entry No. 61
and in the Dover Glen case at ECF Docket Entry No. 10 which terms are incorporated here by
reference; and
WHEREAS the Finance Committee of the Oakland County Board of Commissioners previously
approved the terms of the Settlement upon Corporation Counsel’s recommendation.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
appropriates $39,840,000.00 (Thirty-Nine Million Eight Hundred Forty Thousand Dollars and zero
cents) from the General Fund Property Tax Forfeiture Activities Assigned Fund Balance (GL Account
383470) (“Account 383470”) of which $38,000,000.00 is being used to fund the Settlement of the
Bowles Class Action, of which $940,000.00 is being used to fund the Settlement of the Dover Glen
Class Action and of which the remaining $900,000.00 is being used to fund outside counsel legal
costs, third party administrator costs and other associated administrative costs of implementing the
Settlement of the Class Actions.
BE IT FURTHER RESOLVED that a budget amendment is required and is included in Schedule A to
the resolution.
Chairperson, the following Commissioners are sponsoring the foregoing Resolution: Gwen Markham.
Date: December 09, 2022
David Woodward, Commissioner
Date: December 09, 2022
David Coulter, Oakland County Executive
Date: December 13, 2022
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2022-11-30 Finance - Recommend to Board
2022-12-08 Full Board - Approved
VOTE TRACKING
Motioned by Commissioner Penny Luebs seconded by Commissioner Karen Joliat to adopt the
attached Budget Amendment: Settlement of Bowles v Oakland County and Dover Glen Condominium
Assn v Oakland County.
Yes: David Woodward, Michael Gingell, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen
Kowall, Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Chuck Moss, Marcia
Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Penny Luebs, Janet
Jackson, Gary McGillivray, Robert Hoffman, Adam Kochenderfer (20)
No: None (0)
Abstain: None (0)
Absent: (0)
Passed
ATTACHMENTS
1. Copy of Rafaeli Budget Amendment Schedule A
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on
December 8, 2022, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at
Pontiac, Michigan on Thursday, December 8, 2022.
Lisa Brown, Oakland County Clerk / Register of Deeds
Oakland County, Michigan
SETTLEMENT OF BOWLES V OAKLAND COUNTY and DOVER GLENN CONDOMINIUM ASSOCIATION V OAKLAND COUNTY CLASS ACTION LAWSUIT ARISING OUT OF RETENTION OF SURPLUS PROCEEDS FROM PROPERTY TAX FORECLOSURES
Schedule "A" DETAIL
R/E Fund Name Division Name
Fund #
(FND)
Cost Center
(CCN) #
Account #
(RC/SC)
Program #
(PRG)
Grant ID (GRN)
#
Project ID #
(PROJ)
Region
(REG)
Budget
Fund
Affiliate
(BFA)
Ledger
Account
Summary Account Title
FY 2023
Amendment
FY 2024
Amendment
FY 2025
Amendment
R General Fund Non-Department FND10100 CCN9010101 RC665882 PRG196030 665882 Planned Use of Balance $39,840,000 $-$-
Total Revenues $39,840,000 $-$-
E General Fund Treasurers FND10100 CCN7010110 SC730289 PRG186130 730000 Claims $38,940,000 $-$-
E General Fund Corporation Counsel FND10100 CCN1010101 SC731458 PRG181000 Professional Services $900,000
Total Expenditures $39,840,000 $-$-