Concerns over Exclusion of Leland House Tenants from Bankruptcy Case Raised by Judge in Detroit
A federal bankruptcy judge has raised concerns that tenants displaced from the historic Leland House in Detroit were not given proper notice or a meaningful opportunity to participate in court proceedings affecting their homes and belongings. U.S. Bankruptcy Judge Maria Oxholm adjourned a hearing on residents' request to reconsider a court order allowing only moving contractors, rather than tenants, to enter the building to remove personal property.
The city of Detroit opposed the tenants' motion, characterizing it as frivolous and arguing that residents cannot be allowed back into the historic building. The owner's counsel suggested that some residents had consented to having their belongings removed through informal agreements, but the tenants' attorneys disputed this claim.
During the hearing, Judge Oxholm expressed concern over the lack of notice to tenants and their exclusion from the proceedings. She directed the parties to meet with each other to attempt to reach a resolution before the case returns to court on February 24.
The Leland House filed for Chapter 11 bankruptcy in November, more than two years after the building's longtime owner passed away. Tenants were forced out of the building in December after an electrical equipment failure knocked out power, heat, and elevators. They had been told that the displacement would be temporary and that they would be able to access their apartments to retrieve their belongings.
The case has sparked controversy over the city's handling of the situation. Mayor Mary Sheffield has taken a hard line on the issue, while former Mayor Mike Duggan, who received tens of thousands of dollars in political donations from DTE Energy, declined to support the tenants' rights.
Resident representatives have argued that the shift in direction of the case occurred without proper notice or an opportunity for them to be heard. The U.S. Trustee has expressed serious concerns over the lack of financial transparency in the case and how debtor-in-possession funds have been handled and redirected.
The outcome of the case is uncertain, but it has raised questions about the rights of tenants in bankruptcy cases and the role of government agencies in protecting their interests.
A federal bankruptcy judge has raised concerns that tenants displaced from the historic Leland House in Detroit were not given proper notice or a meaningful opportunity to participate in court proceedings affecting their homes and belongings. U.S. Bankruptcy Judge Maria Oxholm adjourned a hearing on residents' request to reconsider a court order allowing only moving contractors, rather than tenants, to enter the building to remove personal property.
The city of Detroit opposed the tenants' motion, characterizing it as frivolous and arguing that residents cannot be allowed back into the historic building. The owner's counsel suggested that some residents had consented to having their belongings removed through informal agreements, but the tenants' attorneys disputed this claim.
During the hearing, Judge Oxholm expressed concern over the lack of notice to tenants and their exclusion from the proceedings. She directed the parties to meet with each other to attempt to reach a resolution before the case returns to court on February 24.
The Leland House filed for Chapter 11 bankruptcy in November, more than two years after the building's longtime owner passed away. Tenants were forced out of the building in December after an electrical equipment failure knocked out power, heat, and elevators. They had been told that the displacement would be temporary and that they would be able to access their apartments to retrieve their belongings.
The case has sparked controversy over the city's handling of the situation. Mayor Mary Sheffield has taken a hard line on the issue, while former Mayor Mike Duggan, who received tens of thousands of dollars in political donations from DTE Energy, declined to support the tenants' rights.
Resident representatives have argued that the shift in direction of the case occurred without proper notice or an opportunity for them to be heard. The U.S. Trustee has expressed serious concerns over the lack of financial transparency in the case and how debtor-in-possession funds have been handled and redirected.
The outcome of the case is uncertain, but it has raised questions about the rights of tenants in bankruptcy cases and the role of government agencies in protecting their interests.
... I mean, can you believe they weren't even given proper notice or a chance to say what's up? It's like, okay fine, move out, but then just leave us hanging and make us figure out what happens to our stuff? 
The fact that some "informal agreements" were made to get rid of their belongings is sketchy at best... it feels like the city is trying to sweep this under the rug. And Mayor Sheffield's stance on the issue is really questionable, especially with all those donations from DTE Energy coming in 
. It's gonna be a wild ride to see how this plays out on Feb 24th... will they get some answers or just more questions?
The judge said something about meeting with the parties to try and figure things out... hopefully they can come up with a solution that works for everyone. But it's still kinda fishy how everything went down, especially with all the money involved. I just hope these tenants get some justice soon! 
so I think its kinda weird that the city is trying to push this through without giving the tenants a chance to have their say 
its like they just want to get rid of them and not care about the fallout. 
the whole thing with DTE Energy donating to Mike Duggan is sketchy too - it feels like a clear conflict of interest 
meanwhile the city is all up in arms over something that isnt even that important like what does it matter if some rich ppl can play fast and loose with other peoples lives?
It's still his responsibility to take care of his property. But I guess when there's money involved, people suddenly start acting like they're doing it all for the greater good... not. 
. We need more transparency and accountability here. This whole system is just rigged against regular people 
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. I hope Judge Oxholm gets to the bottom of this soon and gives those tenants the justice they deserve 
I think the tenants have a legit case here. They should've been given more time to gather their stuff and maybe even some financial support to help them relocate. The fact that city officials are taking a hard line on this is concerning. 
What's really going on behind closed doors? We need more transparency and accountability.
. They're already dealing with a huge blow when they lost power, heat, and elevators... now they feel like they've been left out of the process? 
and now the judge has stepped in and said we need to figure this out before we go back to court. it's like they're trying to sweep this under the rug 
what's going on here is not right...
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this hearing is a total game changer! so glad there's someone looking out for the tenants' rights...and btw, why can't former mayor duggan just own up to those donkey energy donations? 
