July 1^st Deadline to Claim Surplus Proceeds from Tax Foreclosure Sales

By: Kaitlyn Elias

In July 2020, the Michigan Supreme Court issued an opinion in the Rafaeli v Oakland County case which held a municipality’s retention of tax foreclosure proceeds exceeding the amount of the taxes owed is unconstitutional and violates the Michigan Takings Clause. Subsequently, in December 2020, amendments to the property tax procedures were enacted which codified the right of a former holder of a legal interest in property to any remaining proceeds resulting from the foreclosure and sale of the property to satisfy delinquent real property taxes. MCL 211.78(t). To claim the remaining proceeds for the property, the claimant/former owner must submit a written notice to the foreclosing governmental unit by the July 1 immediately following the effective date of the foreclosure of the property. MCL 211.78t(2). Accordingly, any former owners of property subject to tax foreclosure sales between July 2, 2022 and June 30, 2023 should contact attorney Kaitlyn Elias for assistance in submitting the proper paperwork to claim an interest in the tax foreclosure sale proceeds.

Kaitlyn.Elias@kitch.com

313.965.6606

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The Wireless Industry Can Help Add Revenue to Your Rooftops and Vacant Land – But Not Without Experienced Telecommunications/Real Estate Counsel

By: Mike Watza and Kaitlyn Elias

In search of fulfillment of its “5G” promises to the government and consumers alike, the wireless industry is experiencing an urgent need to expand existing cell tower sites and seek new locations for wireless facilities. Despite this dramatic increase in demand, the cunning wireless industry has been attempting to low ball landlords with warnings about a changing wireless infrastructure market place and often times successfully reducing rental rates, despite the exact opposite reality of typical supply and demand economics. As wireless telecommunications real estate professionals, we regularly provide our clients with updated information regarding current rates and the changing state and federal laws and the opportunities available to increase revenues by negotiating renewals and expansions of existing cell tower sites, as well as locating cell towers on vacant land or the roofs of buildings. We have our fingers on the pulse of cell tower market rates for annual revenues related to such facilities. And too, we assist in the details of negotiating such deals, watching out for industry favoring “bad” landlord language.

Call or write Mike Watza and Kaitlyn Elias for assistance in turning your rooftops into goldmines.

Mike.Watza@kitch.com

313.965.7983

Kaitlyn.Elias@kitch.com

313.965.6606

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A Drone May Be an “Aircraft” for Insurance Purposes.

By: John Sier

A woman attending a wedding in California was injured when she walked into a drone hovering at eye-level that was being operated by part of the photography crew. She ultimately lost her eye, and she sued the venue and the photographer. The photographer tendered the claim to its general liability insurance company who ultimately denied coverage – and the court agreed that the insurance carrier was not responsible to defend or pay the claim because the insurance policy excluded any injuries or damage arising out of the ownership, maintenance or use of any aircraft.

While the Federal Aviation Administration classifies an Unmanned Aerial Vehicle (UAV) commonly called a drone as an “aircraft,” the FAA does not currently mandate that drone users or operators maintain any level of insurance.

As a result, some people will rely on General Liability policies for insurance coverage. However, like the photographer in the case above, most General Liability policies exclude any injuries or damage arising out of the ownership, maintenance or use of any aircraft. Thus, any injuries or damage that arise from an accident involving a drone will likely not be covered by General Liability policies – as a result the operator and the property owner may not have any insurance protecting them.

Before you operate a drone commercially, or allow a drone to be operated on your property, be sure that appropriate insurance is in place for those operations. The insurance should specifically address liability risks that arise from drone operations, as well as the cyber security risks of the loss of control or “hijacking” of the UAV during operations, which can also include any of the data or information collected by the drone. Additional major concerns are the privacy issues and potential regulatory challenges that are continually being assessed and issued.

Drones can play a great role in observing and recording events and even performing inspections and delivering materials, but all of those positive features can be lost if the operations are not properly insured. Be aware of the insurance program of the property owner as well as the drone operators to verify there are not gaps in coverage and to avoid surprises in the event of a claim.

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Formed a Business? You May Still Need to Trademark the Name to Protect Against Infringement

By: Carina Kraatz

Recently, the Michigan Court of Appeals determined that a business did not infringe or create consumer confusion with another similarly named business even though both businesses shared the same first three words as part of their title and dealt in the same general area of real estate. Importantly, in making its opinion, the Michigan Court of Appeals weighed the fact that the plaintiff business did not have a trademark registered in Michigan or otherwise and determined that this negatively affected the strength of plaintiff business’s name. It is important to protect the name of your business, goods you are selling, services you are offering by applying for a trademark or service mark.

When you form a business, you create a great way to protect yourself from individual liability. However, you may not also be protecting the name of the business from use by other entity even though each named business is supposed to be unique. This is especially true if there are similar, but slightly different names used in the same industry or in a different state. In order to protect the name of your business and all of the reputational goodwill you have developed, it is important to protect the name of your business, goods you sell, and services you offer by formally registering a trademark or service mark with the United States Patent and Trademark Office.

Contact attorney Carina Kraatz for assistance

carina.kraatz@kitch.com

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Any information included here or through our website is presented solely for general informational purposes and is not in any way intended as legal advice, is not a substitute for getting actual legal advice from an attorney, and should not be acted upon as legal advice without first seeking qualified professional counsel specific to your needs and situation. Additionally, by providing this general information and the information on our website, no attorney client relationship is created.

Kitch Report: June Business and Commercial Law Update

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