Former Leland House tenants in Detroit fight for compensation

Months after former Leland House tenants were forced from their homes, their fight for compensation was back in court on Thursday.

"We want to be in front of this process from now on. We do not want to have another Leland House," said Conrad Mallett, City of Detroit Corporation Counsel.

On Thursday, a bankruptcy judge approved more than $723,000 in expenses for Detroit, money the city says it spent responding to residents' displacement.

The judge denied a separate request for $16,000 per tenant, citing a lack of documentation supporting those claims.

"It means that we're left to fight for crumbs. That amount being awarded to the city of Detroit lessens the pot to a small number, so residents will not have an attempt to reclaim the things that they lost during this displacement," said Detroit Tenants Union director Steven Rimmer.

However, another question regarding the tenants' claims remains before the court.

The judge is expected to rule next week on a separate request for what's called "adequate protection."

"She agreed with us that they are entitled to adequate protection because their leases were dissolved by the bankruptcy court. What that adequate protection is, we're waiting to find out. We're basically waiting for a number," said attorney Donovan McCarty.

Despite the city's $723,000 award, Mallett says Detroit still intends for some of that money to go to the tenants.

"We still intend to have conversations with the tenants' lawyers about how the tenants can be compensated. We are not looking to recapture 100% of our costs," said Mallett.

The city and tenants' attorneys say settlement talks are also continuing.

The judge says she'll rule on the remaining adequate-protection motion next Thursday, Sept. 3.