Federal Judge Expresses Concerns Over Leland House Tenants' Exclusion from Bankruptcy Proceedings
A US Bankruptcy Judge, Maria Oxholm, has raised serious concerns about whether the displaced tenants of Detroit's historic Leland House were given proper notice or a meaningful opportunity to participate in court proceedings that affect their homes and belongings.
During a hearing on Wednesday, Oxholm adjourned the matter, citing her lack of preparation and noting that she had concerns about the tenants' exclusion from the case. The judge set the matter for further proceedings on February 24.
The Leland House Tenants Union has been arguing that the tenants were not provided with adequate notice or an opportunity to participate in court proceedings. Patrick Foley, an attorney representing the tenants, claimed that there were fundamental notice and due process failures. He pointed out that an earlier December order authorized bankruptcy funds for repairs and utility stabilization, but a subsequent January 13 order redirected those funds towards removing residents' belongings without their consent.
Oxholm expressed concerns about the lack of notice to tenants and their exclusion from the proceedings. She also directed Foley to meet with the owner, the city, DTE Energy, and other parties 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 2023, more than two years after the death of its longtime owner. Tenants were forced out of the building in December after an electrical equipment failure knocked out power, heat, and elevators. They claimed that they were told at the time that the displacement would be temporary and that they would be able to access their apartments to retrieve their belongings.
However, the tenants remain locked out as the bankruptcy case moves forward. The city of Detroit has taken a hard line during the hearing, characterizing the request as frivolous and arguing that residents cannot be allowed back into the historic building.
The U.S. Trustee also expressed concerns about the lack of financial transparency in the case and how debtor-in-possession funds have been handled and redirected. DTE Energy claimed that partial power could be restored for roughly $70,000, which sparked debate about limited, supervised access for residents.
Luis Ramirez, a representative for the building's ownership, issued a statement on the case, saying that they are working closely with the City of Detroit, the Detroit Fire Department, and the court to establish a safe process that will allow tenants to retrieve their belongings.
A US Bankruptcy Judge, Maria Oxholm, has raised serious concerns about whether the displaced tenants of Detroit's historic Leland House were given proper notice or a meaningful opportunity to participate in court proceedings that affect their homes and belongings.
During a hearing on Wednesday, Oxholm adjourned the matter, citing her lack of preparation and noting that she had concerns about the tenants' exclusion from the case. The judge set the matter for further proceedings on February 24.
The Leland House Tenants Union has been arguing that the tenants were not provided with adequate notice or an opportunity to participate in court proceedings. Patrick Foley, an attorney representing the tenants, claimed that there were fundamental notice and due process failures. He pointed out that an earlier December order authorized bankruptcy funds for repairs and utility stabilization, but a subsequent January 13 order redirected those funds towards removing residents' belongings without their consent.
Oxholm expressed concerns about the lack of notice to tenants and their exclusion from the proceedings. She also directed Foley to meet with the owner, the city, DTE Energy, and other parties 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 2023, more than two years after the death of its longtime owner. Tenants were forced out of the building in December after an electrical equipment failure knocked out power, heat, and elevators. They claimed that they were told at the time that the displacement would be temporary and that they would be able to access their apartments to retrieve their belongings.
However, the tenants remain locked out as the bankruptcy case moves forward. The city of Detroit has taken a hard line during the hearing, characterizing the request as frivolous and arguing that residents cannot be allowed back into the historic building.
The U.S. Trustee also expressed concerns about the lack of financial transparency in the case and how debtor-in-possession funds have been handled and redirected. DTE Energy claimed that partial power could be restored for roughly $70,000, which sparked debate about limited, supervised access for residents.
Luis Ramirez, a representative for the building's ownership, issued a statement on the case, saying that they are working closely with the City of Detroit, the Detroit Fire Department, and the court to establish a safe process that will allow tenants to retrieve their belongings.
OMG u guys I'm literally shaking thinking about what happened at Leland House 
like seriously how can u evict ppl from their homes without even giving them notice? I feel so bad for the tenants they were told it was temporary but now they're still stuck out on the street 
and don't have access to their own stuff 
like what's up with that? can't they see how this is just a huge mistake? 
I feel like DTE Energy and the city are just trying to cover their tracks and avoid taking responsibility for what happened 
it's just not right that ppl are being treated like this in our country 
we need some serious changes on how things go down in bankruptcy cases 
. I mean, these people were already displaced from their homes, now they're being excluded from the very court process that's supposed to help them get back in? It's like, what even is the point of having a bankruptcy case if you're not gonna let the tenants have a say? 
. That's just ridiculous. I mean, come on, can't they see that this is a human issue, not just a financial one? The fact that the judge had to step in and say something about it is just embarrassing 
.
. It's time for the city and the bank to take responsibility for what they've done here and start treating these people with some dignity. Fingers crossed that justice is served on February 24th 
- it seems like the tenants werent given proper notice or a chance to be heard about the bankruptcy case affecting their homes... how can we expect them to feel secure about their living situations if they dont know what's going on? 
just when i thought things were moving forward, i'm reminded that some ppl still gotta fight for basic human rights... like being treated fairly in court 
. It's just not right. And now, the judge is havin' a meltdown 'cause she didn't get all the info? Like, hello, it's been two years since the guy passed away and these people are still tryin' to figure out what's goin' on... it's just frustrating 
. I was browsing through this crazy vintage section and stumbled upon these super cool 80s-era mugs 
. I mean, who knew that's where all my grandma's old treasures were hiding? Anyway, it got me thinking... have you ever noticed how some of the old buildings in Detroit just seem to hold so much history and character? Like, can't they just find a way to save this Leland House instead of kicking everyone out? I'm not saying it's easy, but come on, can't we just find a way to make it work for everyone? 
what's up with the city of detroit, man? can't even give those tenants proper notice or let them participate in their own court case 
The city and DTE Energy need to work together with the tenants to find a solution that works for everyone. Fingers crossed they can figure it out before February 24 
and now their stuff is being auctioned off without them even knowing what's going on... it's not cool. and what's with the city of detroit being so hard on them? shouldn't they be trying to find a solution instead of just pushing for more funds to tear everything down? 
.