Legal Question in Real Estate Law in Michigan

unfounded law suit

I was property manager for a small corporation that was selling all property. Our realtor (X)bought the house she was showing for us, eventually transferred ownership to another party(Y) (without our permission), we never discharged a mortgage for realtor and the new buyer (Y) borrowed money from a mortgage company (Z)and ended up defaulting on everything. He declared bankruptcy. The house sat, locked up by the city. A real estate attorney advised us that we could notify all parties involved, if no responses go through Sherriff's Auction and if still no responses, the house would be under our corporation's ownership. That's what happened. Two years later (after the house was gutted, repaired and sold) the mortgage company (Z) sued everyone. The real estate attorney had said the house was ours, free and clear. At this point the corporation has paid the real estate attorney another large sum and the judgement is that we owe (Z) $50,000. The Title Company that illegally transferred ownership to (Y) is to pay us $20,000. It's under new ownership and unlikely to be upheld. Should we take this before a judge or pay up even though we never knowingly did anything other than follow ''expert'' advice?

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