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without anyone taking responsibility for the properties has created an enormous problem <br /> for many years," said Ann-Carol Nash, assistant city attorney who represented the City in <br /> the case. "This decision by Judge Dees should help us considerably." <br /> The case arose from the city's efforts to enforce property-maintenance standards at a <br /> west-side investment property owned by Ginger Kay Phillips. <br /> In August 2005 when Phillips filed her chapter 7 bankruptcy petition, she owned three <br /> investment properties in South Bend. The case against the City involved her property at <br /> 703 N. Johnson St. The city's Department of Code Enforcement had issued numerous <br /> citations on the property as a public nuisance. On three occasions, Philips was ordered to <br /> make required repairs and clean up the property, facing a potential $5,000 penalty. <br /> Phillips' lack of maintenance on her property affected "the surrounding neighborhood <br /> and the city as a whole," according to Catherine M. Toppel, director of code enforcement. <br /> "If this blight is allowed in all cases where a property owner [files bankruptcy], the city <br /> will be without recourse to protect the public health, safety and welfare." <br /> Phillips' attorney contended that in August 2005 she had surrendered her responsibility to <br /> the creditor, Citifinancial Mortgage, which held the mortgage lien. Phillips filed the case <br /> against the city in May 2006, saying that attempts by Code Enforcement to enforce <br /> property maintenance standards violated her bankruptcy rights. <br /> The city's actions, however, "were a legitimate exercise of its police or regulatory power <br /> and were consistent with its duty to protect its residents,"the court said. <br /> "The primary purpose of the law being enforced was one of public health, safety and <br /> welfare, and was not ... to protect [the City of South Bend's] status as a creditor,"the <br /> court said. "Phillips continues to be the owner of the property, with all the rights and <br /> obligations." <br /> The case is Ginger Kay Phillips vs. City of South Bend, case number 05-34260HCD, <br /> which was filed July 27, 2006. <br /> - 30 - <br />