Class action suit filed against the Detroit Land Bank Authority for its alleged unlawful seizure of homes under its Nuisance Abatement Program
February 26, 2025
On February 1, 2025, we filed a putative class action lawsuit against the Detroit Land Bank Authority (DLBA) in the U.S. District Court for the Eastern District of Michigan. The suit alleges that the DLBA’s nuisance abatement program has engaged in unlawful conduct by seizing “nuisance” properties in Detroit, selling them, and never properly compensating the original property owner. By retaining the proceeds from the sales of seized properties, we believe that the DLBA is unjustly enriched at the expense of Detroit homeowners. Over 451 houses have been sold at an average price of approximately $11,348.54, generating more than $5.1 million in revenue for the Land Bank. The complaint’s core allegations include violations of the Takings Clause of the U.S. Constitution, breaches of state constitutional protections, and the exploitation of homeowners through unjust enrichment.
Who is Eligible to Join the Suit?
Detroit homeowners who meet all of the following criteria may be eligible to join the suit:
- Detroit property owners who have had their real property transferred to the Detroit Land Bank Authority as a result of a nuisance-abatement lawsuit brought by DLBA and Mike Duggan, either i) within six years and 101 days prior to the filing of this Complaint, or ii) at any time since February 7 of 2014, and their former property was then sold by the DLBA within six years and 101 days prior to the filing of this Complaint;
- Whose real property was never included in DLBA’s “Drug House Unit” (DHU) program;
- Who did not sign any pre-litigation or post-litigation settlement agreement or stipulated dismissal agreement with DLBA or cause a deed to be recorded conveying their interest in the property to the DLBA;
- Who did not have any residential structure on their former property demolished while the property was owned by the DLBA;
- Whose property has not been returned to them by the DLBA;
- Who have not received compensation from the DLBA or the City of Detroit for their property, and have not received any portion of the proceeds from any subsequent sale of their property by the DLBA.
How do I Join the Suit?
If you or someone you know has been impacted by the DLBA’s unjust property seizures, now is the time to stand up for your rights. Our experienced legal team is ready to help you navigate this complex litigation and fight for the compensation you deserve.
Don’t let government overreach rob you of your home and future. Join our class action lawsuit today and be part of a movement dedicated to restoring justice and accountability in Detroit.