On November 12, 2020, in an unpublished opinion in James Akouri and Karen Akouri vs. Comerica Bank, the State of Michigan Court of Appeals confirmed not only that the six-year statute of limitations to pursue a suit on a note begins running at the time of acceleration rather than default, but also that failure to pursue action on a note within six years did not bar foreclosure of the mortgage within 15 years. The decision stems from a 2005 home equity line of credit encumbering the mortgagors’ home with a maturity date in 2025. The mortgagors stopped making payments in 2006, but it was not until 2015 lender sent a letter to the mortgagors requiring immediate payment in full. The Mortgagors did not meet the demand. However, foreclosure by advertisement proceedings were not commenced until about four years later, in 2019.

The Michigan Supreme Court has amended its June 2020 Administrative Order No. 2020-17 that provided direction to state courts for resuming eviction actions. Prior to the pandemic, courts traditionally processed these types of cases in a “cattle-call” fashion, with numerous cases being called simultaneously and resulting in large number of individuals in crowded and enclosed spaces. 

​The Court noted in June that this method of processing eviction cases was inconsistent with safety protocol in place due to COVID-19 and would present a public health threat if removal of moratoriums on eviction filings resulted in a sudden increase in eviction filings once the court resumed full-capacity operations. Most notably, Order 2020-17 did three things:

1. The Order required each eviction case individually be set for hearing at a unique date and time to be conducted remotely;
2. The Order classified and prioritized the hearing of eviction cases, with complaints alleging illegal activity given the greatest priority, followed by rental delinquencies of more than 120 days;
3. The Order permitted a default judgment to be granted against a served defendant for failure to appear at the hearing.

 
The amendment extends compliance with Order 2020-17 through the end of 2020 in tandem with the CDC’s eviction moratorium and seeks to reduce “the possibility of further infection while ensuring that landlord/tenant cases are able to be filed and adjudicated efficiently.” Amendment to Administrative Order No. 2020-17.

​The above information provided by PLG attorney, Ellen Fornash, licensed in OH, KY and MI.