Michigan National Bank v. City of Auburn Hills

Petitioner Michigan National Bank appeals as of right from an order of the Tax Tribunal that granted respondent City of Auburn Hills’ motion to dismiss the bank’s petition for the refund of taxes paid under duress. The bank claims that the city’s tax lien was not a first priority lien superior to the bank’s perfected security interest and it therefore is entitled to a refund of the tax assessment it was forced to pay to the city. We affirm.

On December 2, 1987, the bank loaned $5.5 million to Merit Stainless Steel, a Michigan corporation doing business at 4475 Purks Drive in Auburn Hills,…