It is a fundamental concept of American jurisprudence that the plaintiff in a lawsuit must have standing to sue. It protects defendants from having to litigate claims from parties who have no right to sue. Where a plaintiff is unable to show standing, then courts will dismiss the claims.
In Awad v GMAC, the Michigan Court of Appeals considered whether a plaintiff has standing to challenge a foreclosure once the redemption period has expired. In Awad, the defendant foreclosed on the plaintiff’s property. The plaintiff failed to redeem the property, and 18 days before the expiration of the redemption period, the plaintiff filed suit. The Plaintiff, however, failed to ask the court to stay the foreclosure before it occurred.
The Court of Appeals ruled that the plaintiff lacked standing to challenge the foreclosure. The Court noted that a lawsuit challenging the foreclosure, after the sale has occurred, does not toll the redemption period. Once the redemption period expired during the pendency of the lawsuit, so too did any rights belonging to the plaintiff in the property. As a result, the plaintiff no longer had standing to sue.
