Detroit's Leland House Tenants Left in the Dark as Bankruptcy Case Proceeds Without Them
A federal bankruptcy judge has raised serious concerns about whether the displaced tenants of Detroit's historic Leland House were properly notified or included in the court proceedings affecting their homes and belongings. US Bankruptcy Judge Maria Oxholm adjourned a hearing on residents' request to reconsider a court order allowing only moving contractors, rather than the tenants themselves, to enter the 22-story building at 400 Bagley Street to remove personal property.
The issue came to light after an earlier December order authorized bankruptcy funds for repairs and utility stabilization but was later redirected, without notice to tenants, towards removing residents' belongings instead. Patrick Foley, attorney representing residents through the Leland House Tenants Union, argued that there were fundamental notice and due process failures. He told the court that the shift in direction was a major change that occurred without serving or hearing from tenants.
The city of Detroit opposed the tenants' motion, characterizing their request as frivolous, while also taking a hard line against allowing residents to re-enter the historic building. However, Judge Oxholm declined to rule against the tenants and expressed concern about the lack of notice to them and their exclusion from the proceedings.
The case highlights the plight of the Leland House tenants who were forced out of their homes in December after an electrical equipment failure knocked out power, heat, and elevators. Tenants claim they were told that the displacement would be temporary and that they could access their apartments to retrieve their belongings, but instead have been locked out as the bankruptcy case moves forward.
The hearing comes days after Judge Oxholm halted a proposed fast-track auction of the Leland House and an adjacent parking lot, rejecting the owner's attempt to quickly sell the property while multiple disputes over tenant rights remain unresolved. The building filed for Chapter 11 bankruptcy on November 3, more than two years after its longtime owner, Michael Higgins, passed away in 2023.
As the case continues, tensions between the tenants and the city of Detroit remain high, with both sides refusing to back down. For the residents, the issue is not just about retrieving their belongings but also about being treated fairly and having their voices heard in the bankruptcy proceedings. The outcome will have significant implications for the future of the Leland House and its long-standing residents.
A federal bankruptcy judge has raised serious concerns about whether the displaced tenants of Detroit's historic Leland House were properly notified or included in the court proceedings affecting their homes and belongings. US Bankruptcy Judge Maria Oxholm adjourned a hearing on residents' request to reconsider a court order allowing only moving contractors, rather than the tenants themselves, to enter the 22-story building at 400 Bagley Street to remove personal property.
The issue came to light after an earlier December order authorized bankruptcy funds for repairs and utility stabilization but was later redirected, without notice to tenants, towards removing residents' belongings instead. Patrick Foley, attorney representing residents through the Leland House Tenants Union, argued that there were fundamental notice and due process failures. He told the court that the shift in direction was a major change that occurred without serving or hearing from tenants.
The city of Detroit opposed the tenants' motion, characterizing their request as frivolous, while also taking a hard line against allowing residents to re-enter the historic building. However, Judge Oxholm declined to rule against the tenants and expressed concern about the lack of notice to them and their exclusion from the proceedings.
The case highlights the plight of the Leland House tenants who were forced out of their homes in December after an electrical equipment failure knocked out power, heat, and elevators. Tenants claim they were told that the displacement would be temporary and that they could access their apartments to retrieve their belongings, but instead have been locked out as the bankruptcy case moves forward.
The hearing comes days after Judge Oxholm halted a proposed fast-track auction of the Leland House and an adjacent parking lot, rejecting the owner's attempt to quickly sell the property while multiple disputes over tenant rights remain unresolved. The building filed for Chapter 11 bankruptcy on November 3, more than two years after its longtime owner, Michael Higgins, passed away in 2023.
As the case continues, tensions between the tenants and the city of Detroit remain high, with both sides refusing to back down. For the residents, the issue is not just about retrieving their belongings but also about being treated fairly and having their voices heard in the bankruptcy proceedings. The outcome will have significant implications for the future of the Leland House and its long-standing residents.