After receiving
property as the result of a federal bankruptcy court order, the City of
Dearborn filed a quiet title action against West Dearborn Partners, LLC (West
Dearborn) and Bank of America (BOA). BOA held a mortgage on the property, which
purportedly was assigned to West Dearborn. The bankruptcy court order requiring
the sale of the property to the City extinguished any interest in the property
that was not of record. Although BOA’s interest in the mortgage was recorded at
the time of the bankruptcy court order, West Dearborn’s assignment was not. BOA
subsequently discharged the mortgage. All parties filed motions for summary
disposition. The trial court granted the City’s motion, holding that West
Dearborn’s interest in the mortgage was extinguished by the bankruptcy court order,
and quieted title in the property to the City. The Court of Appeals affirmed in
an unpublished opinion. The Supreme Court has ordered oral argument on West
Dearborn’s application for leave to appeal to address: (1)
whether the federal bankruptcy court’s October 5, 2011 order extinguished the
appellant’s interest in Parcel C; (2) whether BOA’s filing of a discharge of
the mortgage in 2015 impacted any interest the appellant had in Parcel C at
that time; and (3) whether the equitable arguments raised by the appellant
require the reversal of the Court of Appeals opinion.