Federal Bankruptcy Judge Raises Concerns Over Exclusion of Leland House Tenants from Bankruptcy Case
A federal bankruptcy judge has expressed concerns that tenants displaced from Detroit's historic Leland House were not given proper notice or a meaningful opportunity to participate in the court proceedings affecting their homes and belongings.
The hearing, which adjourned on Wednesday, centered around 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 St. The case is part of Leland House's Chapter 11 bankruptcy filing in November 2023.
The judge, Maria Oxholm, raised questions about whether tenants were included in the bankruptcy proceedings, citing concerns that they had not been listed, scheduled, or served. The owner's lawyer conceded on the record that tenants had not been notified before key decisions were made, including a January order redirecting funds intended for repairs and utility stabilization to removing residents' belongings.
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 city's stance has remained unchanged since Mayor Mary Sheffield took office in January, with previous Mayor Mike Duggan receiving significant donations from DTE Energy.
The hearing came after a proposed fast-track auction of the Leland House was halted by Judge Oxholm due to disputes over tenant rights remaining unresolved. Tenants were forced out of the building in December following an electrical equipment failure that knocked out power, heat, and elevators.
The U.S. Trustee expressed concerns about lack of financial transparency in the case and how debtor-in-possession funds have been handled and redirected. Residents' attorneys argued that safety and insurance concerns are being used to block residents from entering the building, despite temporary lighting and limited access being possible at minimal cost.
At the close of the hearing, Judge Oxholm declined to rule against the tenants and directed Foley to meet with the owner, city, DTE, and other parties to attempt a resolution. The judge expressed concern about the lack of notice to tenants and their exclusion from the proceedings.
Luis Ramirez, a representative for the building's ownership, stated that they are working closely with the City of Detroit, the court, and residents to establish a safe process for retrieving belongings. However, it remains unclear when this process will be finalized or how it will address the concerns raised by Judge Oxholm and tenants' attorneys.
The hearing highlights ongoing disputes over tenant rights and the impact of the bankruptcy case on the historic Leland House and its displaced residents.
A federal bankruptcy judge has expressed concerns that tenants displaced from Detroit's historic Leland House were not given proper notice or a meaningful opportunity to participate in the court proceedings affecting their homes and belongings.
The hearing, which adjourned on Wednesday, centered around 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 St. The case is part of Leland House's Chapter 11 bankruptcy filing in November 2023.
The judge, Maria Oxholm, raised questions about whether tenants were included in the bankruptcy proceedings, citing concerns that they had not been listed, scheduled, or served. The owner's lawyer conceded on the record that tenants had not been notified before key decisions were made, including a January order redirecting funds intended for repairs and utility stabilization to removing residents' belongings.
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 city's stance has remained unchanged since Mayor Mary Sheffield took office in January, with previous Mayor Mike Duggan receiving significant donations from DTE Energy.
The hearing came after a proposed fast-track auction of the Leland House was halted by Judge Oxholm due to disputes over tenant rights remaining unresolved. Tenants were forced out of the building in December following an electrical equipment failure that knocked out power, heat, and elevators.
The U.S. Trustee expressed concerns about lack of financial transparency in the case and how debtor-in-possession funds have been handled and redirected. Residents' attorneys argued that safety and insurance concerns are being used to block residents from entering the building, despite temporary lighting and limited access being possible at minimal cost.
At the close of the hearing, Judge Oxholm declined to rule against the tenants and directed Foley to meet with the owner, city, DTE, and other parties to attempt a resolution. The judge expressed concern about the lack of notice to tenants and their exclusion from the proceedings.
Luis Ramirez, a representative for the building's ownership, stated that they are working closely with the City of Detroit, the court, and residents to establish a safe process for retrieving belongings. However, it remains unclear when this process will be finalized or how it will address the concerns raised by Judge Oxholm and tenants' attorneys.
The hearing highlights ongoing disputes over tenant rights and the impact of the bankruptcy case on the historic Leland House and its displaced residents.
so like I get why judge Oxholm is concerned about tenants being left out of this whole thing... it's not right that they weren't even notified about key decisions, let alone given a chance to participate in the court proceedings. But at the same time, you've got to consider the city of Detroit's stance - they're basically saying that residents can't just waltz back into the building without putting the entire structure at risk. I get it, safety first and all that... but it feels like there's a bit of a power struggle going on here, with the tenant's lawyers trying to fight for what's right, while the city and DTE are pushing back hard. 
these tenants have been through so much already, including that crazy electrical equipment failure in dec 
its unacceptable that they werent even given notice about the court proceedings affecting their homes and stuff 
judge oxholm is doing her job tho, at least she's not ignoring the tenants' concerns 
can we pls get more info on how this whole process is gonna play out? 
and what about dte energy? why are they still getting deals when they're basically helping to ruin people's lives 
anywayz lets hope judge oxholm gets things sorted out for the tenants 
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. This is a classic case of corporate greed taking precedence over human lives, and it needs to stop ASAP 
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. I mean, these people were already displaced from their homes due to some electrical issue, and now they're being told that they can't even participate in the court case affecting their own lives? It's like, hello, basic human rights, right? The fact that the judge is calling out the lack of notice and transparency is a major win for us tenants 
. And I gotta say, the city of Detroit's stance on this whole thing is straight-up shady 
. Who cares about "frivolous" motions when it comes to people's homes and livelihoods? The fact that they're trying to push the issue further down the line is a huge red flag 
. I hope Judge Oxholm keeps pushing for answers, and maybe we'll finally get some justice done 
Can't believe the city is trying to sweep this under the rug... tenants got screwed 
I feel bad for 'em, too - all that history in that building, and now it's like their lives are being put on hold just because of a bank's financial mess 
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... can't believe they weren't even given proper notice or a say in what's happening to their home 
. It's just not right, you know? They're being treated like pawns in some big game, and it's all because of the bank's decision to file for bankruptcy 
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. The tenants' attorneys are right – safety and insurance shouldn't be used as a way to block people from getting their stuff back 
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. The city's stance on this is pretty concerning, especially with Mayor Sheffield at the helm. I'm keeping an eye on this case because I think it'll be interesting to see how it all plays out 
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. i hope they can get some resolution going on soon so those tenants can get their stuff back 
The fact that the city's stance has remained unchanged since Mayor Sheffield took office also raises some red flags - what exactly are they hiding? 
gotta feel for them, been through that kinda stress already 
gotta get to the bottom of this 