Declaratory judgment action; Disbursement of proceeds from the foreclosure & sale of property; MCL 205.25(1); United States v New Britain; Standing; MCR 2.605; Actual controversy; League of Women Voters v Secretary of State; Real party in interest; Constitutionality of MCL 205.25; Unlawful taking

The court held that the trial court did not err by granting defendant-Department of Treasury summary disposition of plaintiff-corporation’s action seeking a declaratory judgment. Plaintiff sought a judgment declaring that defendant must stay its tax lien proceedings until plaintiff’s federal tax liens were satisfied and discharged. The trial court found that “plaintiff lacked standing because the dispute was between defendant and the IRS over the proceeds of the envisioned sale of plaintiff’s property.” On appeal, the court rejected plaintiff’s argument that the trial court erred by dismissing its claim for lack of standing. “The essence of plaintiff’s complaint was not to seek a declaration of rights as between plaintiff and defendant; instead, plaintiff seeks a declaration of the IRS’s rights relative to defendant’s. We agree with the trial court that plaintiff is not entitled to a declaratory judgment to preserve the legal rights of a nonparty, whether that limitation is characterized as plaintiff’s lack of standing or the fact that plaintiff is not the real party in interest.” The court also rejected plaintiff’s claim that foreclosure under MCL 205.25 would be an unconstitutional taking. It did not present the court with any “authority for the proposition that the potential existence of another secured creditor with a superior claim renders defendant unable to foreclose on property under MCL 205.25(1). At this point in the proceedings, any holding this Court made regarding MCL 205.25(1)’s constitutionality as applied to plaintiff would be in the nature of an advisory opinion, which we decline to issue.” Affirmed.