Judge rejects accelerated hearing on TCH suit

By David Hohendorf

The Oakland County Circuit Court Judge presiding over the lawsuit between the City of Birmingham and The Community House Association on the sale of The Community House (TCH) has rejected the legal filing requesting an expedited hearing on a motion to dismiss the suit originally filed by the city, citing deficiencies in the filing and the volume of similar requests to dictate the court’s docket.

Judge Michael Warren of the business division of the court issued his written ruling Monday, January 12, saying that the TCH law firm request for an expedited hearing because of a pending sale closing was due to a "self-inflicted wound"

Birmingham officials filed a lawsuit in late November after officials with The Community House Association announced that the name of that group would be changing to The Birmingham Area Community Foundation which would continue with the original mission of mentoring and support of other nonprofit groups in the general area, and The Community House building would be sold.

The city’s legal challenge is based on deed restrictions created by founding members which stipulate that if the operating group was ever dissolved that the building had to be given to another nonprofit group or rented at a nominal rate to the city. The city has asked the court to halt the sale by granting an injunction. 

The legal firm representing The Community House Association, the Bodman law firm, had requested a hearing on a motion for an accelerated hearing schedule to avoid jeopardizing a planned February 5 closing on sale of the building to the Jewish Federation of Detroit, a buyer that has yet to be publicly announced by those involved in the proceedings.

In response to the TCH motion, the legal firm representing the city, the Varnum law firm, on Monday, January 5, filed a response that challenged the judge to toss out the request for an expedited hearing schedule on the request to dismiss the lawsuit, citing that court protocol was not followed and some basic requirements in making the motion were simply ignored.

The judge also awarded “reasonable costs and fees” to be paid to the city’s law firm for having to respond to the Bodman law firm motion.

In terms of the sale, TCH officials have said a new owner would take over the building effective July 1 and legal briefs say that the buyer has offered more than the appraised value of $7,040,000 in what is expected to be an all-cash purchase. Funds from the sale would be used, according to TCH officials, to retire debt and help serve as seed money for the community foundation.