Dockery v. Szymanski

1

JAMES DOCKERY, Plaintiff, v. DAVID SZYMANSKI, et al. Defendants.

Civil Action No. 22-11507

United States District Court, E.D. Michigan, Southern Division

January 24, 2023

REPORT AND RECOMMENDATION ON DEFENDANTS' MOTIONS TO DISMISS (ECF Nos. 11, 16, 19)

DAVID R. GRAND United States Magistrate Judge

This case arises out of the foreclosure of a property owned by Lyndon's, LLC (“Lyndon's”). The named plaintiff is James Dockery (“Dockery”), one of Lyndon's members, and he has filed a complaint against the following defendants related to the foreclosure: the County of Wayne and Wayne County Treasurer Eric Sabree (collectively the “County Defendants”); the City of Detroit, Jill Bryant, and Mike Duggan (collectively the “City Defendants”); the Detroit Land Bank Authority and Saskia Thompson (collectively the “Land Bank Defendants”); and two individuals - Rich Vivian and Brad Thompson (“Thompson”).^[1] (ECF No. 1). This case has been referred to the undersigned for all pretrial purposes. (ECF No. 26).

Now pending are three separate motions to dismiss, filed by the City Defendants,^[2]the County Defendants, and Thompson. (ECF Nos. 11, 16, 19). On September 9, 2022, the Court docketed two filings that appear to be Dockery's responses to one or more of the defendants' motions to dismiss. (ECF Nos 28, 29). Thompson filed a reply brief on September 23, 2022 however, the other defendants did not file replies. On December 2, 2022, the Court held oral argument on the pending motions.

I. RECOMMENDATION

For the foregoing reasons, IT IS RECOMMENDED that the Motions to Dismiss filed by the County Defendants and Brad Thompson (ECF Nos. 16, 19) be GRANTED. IT IS FURTHER RECOMMENDED that the City Defendants' Motion to Dismiss (ECF No. 11) be GRANTED IN PART and DENIED IN PART WITHOUT PREJUDICE, as set forth herein.

II. REPORT

A. Factual Background

Dockery commenced this action pro se against numerous governmental entities, government employees, and individuals regarding the property commonly known as 14700 Dexter Avenue, Detroit, Michigan (the “Dexter Property”). In his complaint, which arises out of a foreclosure and eviction occurring at the Dexter Property, Dockery refers to prior court rulings made by “a series of local judges.” (ECF No. 1, PageID.8). Because these state court rulings are a matter of public record and are referenced throughout Dockery's complaint, a brief discussion of these rulings is warranted.^[3]

It is undisputed that Lyndon's, LLC - which Dockery refers to as “my company” (Id., PageID.7) - owned the Dexter Property at the time Dockery contends it was unlawfully foreclosed on. First, Dockery asserts in his complaint that “[t]he Wayne County Treasurer improperly foreclosed on property owned by my company, Lyndon, LLC . . .” (Id.). Second, attached to the City Defendants' motion to dismiss is a copy of the recorded quitclaim deed which shows that Lyndon's, LLC was the Dexter Property's actual owner during the salient time. (ECF No. 11-2). Dockery does not challenge this document's authenticity. Third, on August 19, 2022, Dockery's company, Lyndon's, LLC (represented by counsel), filed a complaint in this Court, Civil Action No. 22-11942 (the “Lyndon's Action”), raising essentially the same dispute about the Dexter Property that Dockery raises in this action. In the Lyndon's Action, Lyndon's alleges, “James Dockery has never possessed an interest in the Property in his individual capacity.” (Lyndon's Action, ECF No. 1, PageID.12). Finally, during the December 2, 2022, oral argument, Dockery admitted that the Dexter Property was owned by Lyndon's LLC.

Dockery claims the Dexter Property was purchased “with all taxes due and owing paid,” but that later the “[C]ity of Detroit issued a tax notice for property tax due before [Lyndon's] actually owned the property . „ and foreclosed on [the Property] in [] less than one year.” (ECF No. 1, PageID.8). On March 28, 2014, the Wayne County Treasurer obtained an Uncontested Judgment of Foreclosure as to the Dexter Property.^[4] (ECF No. 11-3). When Lyndon's, LLC failed to redeem the foreclosed property by paying all forfeited delinquent taxes, interest, penalties, and fees by March 31, 2014, title vested in the Wayne County Treasurer. See MCL 211.78, et seq.

On January 7, 2015, the Wayne County Treasurer transferred title of the Dexter Property to the City of Detroit via a quitclaim deed for the “consideration of $0.00” pursuant to MCL 211.78m(6), which requires the Treasurer to deed all properties unsold at public auction to the local governmental unit at no cost. (ECF No. 11-4). Wayne County Circuit Court Judge Robert Columbo quieted title as to the Dexter Property to the City of Detroit on January 22, 2018. (ECF No. 11-5). Lyndon's, LLC's appeal of the judgment quieting title was dismissed by the Michigan Court of Appeals in October 2018 for want of prosecution.^[5] (ECF No. 11-6).

The City of Detroit first began the process of evicting Lyndon's, LLC - and any other occupants, including Dockery - from the Dexter Property in June 2017. (ECF No. 11-10). A judgment of possession was first entered in favor of the City of Detroit on February 20, 2019. (ECF No. 11-11). Lyndon's, LLC was able to stay the eviction proceedings by filing a motion for relief from judgment regarding the original 2014 Judgment of Foreclosure.

On January 19, 2021, Wayne County Circuit Court Judge Timothy Kenny denied all of the claims brought by Dockery and/or Lyndon's, LLC with respect to the judgment of foreclosure. (ECF No. 11-12). The Court specifically held that Wayne County had provided all statutory and constitutional notice required; had provided Dockery and Lyndon's, LLC with all required due process; and there was no “conspiracy” between the City of Detroit and Wayne County to “steal” the Dexter Property, as alleged. (Id.). The Court further ruled that the transfer of the Dexter Property by Wayne County to the City of Detroit for zero dollars “was consistent with the requirements of [state law].” (Id., PageID.83). The Michigan Court of Appeals denied Dockery's appeal on February 23, 2021. (ECF No. 11-13).

On March 30, 2021, a Judgment of Possession was again entered in favor of the City of Detroit. (ECF No. 11-14). On April 22, 2022, an order of eviction was issued by the 36^th District Court. (ECF No. 11-15). The City then began evicting Lyndon's, LLC and any other occupants from the Dexter Property.

Upon entering the Dexter Property on April 27, 2022, it was discovered that Lyndon's, LLC and/or Dockery had been using the building to store large amounts of personal items without permission from the City and without paying rent of any kind. The City claims that it “incurred considerable expenses” in paying a bailiff to begin removing items from the Dexter Property. (ECF No. 11, PageID.50).

Lyndon's, LLC, through counsel, then filed an emergency motion in the 36^th District Court to stay the eviction, which was temporarily granted on April 28, 2022, pending a hearing. (ECF No. 11-16). At the May 27, 2022, hearing in 36^th District Court, the City of Detroit advised the court that Lyndon's, LLC and Dockery continued to trespass on the Dexter Property and maintain a substantial amount of personal property there, including scrapped vehicles, boats, car parts, vendor appliances, clothing, and decommissioned firetrucks. (ECF No. 11-17). Lyndon's, LLC, represented by counsel, offered no defense to the eviction. The same day, the 36^th District Court entered an order commanding that Lyndon's, LLC “restore the [City of Detroit] to, and put the [City] in, full possession of the premises.” (ECF No. 11-18). The court further ordered that the eviction would begin on June 13, 2022, and that “[a]ny property remaining at the 14700 Dexter property on June 13, 2022, shall be deemed abandoned.” (Id.).

Dockery also makes certain allegations about a property adjacent to the Dexter Property, which the Court will refer to as the “Adjacent Property.” Specifically, Dockery alleges that, at some point, “Ms. Jill Bryant in her capacity as Manager of the Detroit Building Authority directed workers to padlock property rented by Mr. Dockery adjacent to the disputed building [i.e., the Dexter Property] preventing access to the [Adjacent P]roperty and [his] belongings.” (ECF No. 1, PageID.7; see also id., PageID.9 (alleging that Jill Bryant “oversaw the illegal raid and the padlocking of [his] property.”)). Thus, Dockery's claims regarding the Adjacent Property are directed at Bryant.

Dockery has now filed this action in federal court, alleging that the state court rulings discussed above were a result of Wayne County “turn[ing] to a series of local judges to confer title of the [Dexter P]roperty to the city .” (Id., PageID.8). He further alleges that the “Wayne County Treasurer improperly foreclosed on property owned by [his] company, Lyndon, LLC [sic] for taxes it represented that was owed by myself, Mr. Dockery” and that the Dexter Property was then wrongfully “given to the City of Detroit for $0 dollars.” (Id., PageID.7). Dockery brings assorted constitutional claims against various individuals and entities, seeking in excess of “$3M in actual costs and $50M in punitive damages for physical and emotional distress.” (Id., PageID.8-9).

B. Standard of Review

The defendants now move for dismissal of Dockery's complaint pursuant to Fed.R.Civ.P. 12(b)(1), arguing that he lacks standing to bring the claims asserted therein,^[6] which is a question of subject matter jurisdiction. See Stewart as next friend of M.S. v. Manchester Cmty. Sch., No 21-12392, 2022 WL 4385346, at *1 (E.D. Mich. Sept. 21, 2022). “Rule 12(b)(1) motions to dismiss for lack of subject-matter jurisdiction generally come in two...