Justia Civil Procedure Opinion Summaries

Meemic Insurance Company filed suit against Louise and Richard Fortson, individually and as conservator of their son, Justin Fortson, alleging that Richard and Louise had fraudulently obtained payment for attendant-care services they did not provide to Justin. In 2009, Justin was injured when he fell from the hood of a motor vehicle, necessitating constant supervision and long-term care. Richard and Louise opted to provide attendant care to Justin in their home on a full-time basis. Justin received benefits under his parents’ no-fault policy with Meemic, and from 2009 until 2014, Louise submitted payment requests to Meemic for the attendant-care services she and her husband provided, asserting that they provided full-time supervision; Meemic routinely paid the benefits. In 2013, Meemic investigated Richard and Louise’s supervision of Justin, and discovered Justin had been periodically jailed for traffic and drug offenses and had spent time at an inpatient substance-abuse rehabilitation facility at times when Richard and Louise stated they were providing full-time supervision. The underlying policy contained an antifraud provision stating that the policy was void if any insured person intentionally concealed or misrepresented any material fact or circumstance relating to the insurance, the application for it, or any claim made under it. Louise and Richard counterclaimed, arguing that Meemic breached the insurance contract by terminating Justin’s benefits and refusing to pay for attendant-care services. Meemic moved for summary judgment, and the trial court initially denied the motion, reasoning that under the innocent-third-party rule, Meemic could not rescind the policy on the basis of fraud to avoid liability for benefits owed to Justin, an innocent third party. Meemic moved for reconsideration of that decision after the Court of Appeals later concluded in Bazzi v. Sentinel Ins. Co., 315 Mich App 763 (2016), the innocent-third-party rule was no longer good law. On reconsideration, the trial court granted summary judgment in favor of Meemic. Louise and Richard appealed. The Court of Appeals reversed, first reasoning that Bazzi did not apply because the fraud in this case did not occur in the procurement of the policy and did not affect the validity of the contract. The court concluded, however, that the policy’s antifraud provision was invalid because it would enable Meemic to avoid the payment of personal protection insurance (PIP) benefits mandated by MCL 500.3105. The Michigan Supreme Court affirmed, holding that contractual provisions like the one asserted by Meemic, in the context of the mandate of the no-fault act, are valid when based on a defense to mandatory coverage provided in the no-fault act itself or on a common-law defense that has not been abrogated by the act. Because Meemic’s fraud defense was grounded on neither the no-fault act nor the common law, it was invalid and unenforceable. Accordingly, the Court of Appeals was affirmed on different grounds, and the case remanded to the trial court for further proceedings. View "Meemic Ins. Co. v. Fortson" on Justia Law

Water users and property owners in Flint, Michigan (plaintiffs) brought a class action at the Court of Claims against defendants Governor Rick Snyder, the state of Michigan, the Michigan Department of Environmental Quality (the MDEQ), and the Michigan Department of Health and Human Services (collectively, the state defendants) and against defendants Darnell Earley and Jerry Ambrose (the city defendants). Plaintiffs alleged the Governor and these officials had knowledge of a 2011 study commissioned by Flint officials that cautioned against the use of Flint River water as a source of drinking water. In 2014, under the direction of Earley and the MDEQ, Flint switched its water source from the Detroit Water and Sewage Department (DWSD) to the Flint River. Less than a month after the switch, state officials began to receive complaints from Flint water users about the quality of the water coming out of their taps. Plaintiffs alleged state officials failed to take any significant remedial measures to address the growing health threat and instead continued to downplay the health risk, advising Flint water users that it was safe to drink the tap water while simultaneously arranging for state employees in Flint to drink water from water coolers installed in state buildings. The state and city defendants separately moved for summary disposition on all four counts, arguing that plaintiffs had failed to satisfy the statutory notice requirements in MCL 600.6431 of the Court of Claims Act, failed to allege facts to establish a constitutional violation for which a judicially inferred damages remedy was appropriate, and failed to allege facts to establish the elements of any of their claims. The Court of Claims granted defendants’ motions for summary disposition on plaintiffs’ causes of action under the state-created-danger doctrine and the Fair and Just Treatment Clause of the 1963 Michigan Constitution, art 1, section 17, after concluding that neither cause of action was cognizable under Michigan law. However, the Court of Claims denied summary disposition on all of defendants’ remaining grounds, concluding that plaintiffs satisfied the statutory notice requirements and adequately pleaded claims of inverse condemnation and a violation of their right to bodily integrity. The Court of Appeals affirmed the Court of Claims. After hearing oral argument on defendants’ applications, a majority of the Michigan Supreme Court expressly affirmed the Court of Appeals’ conclusion regarding plaintiffs’ inverse-condemnation claim. The Court of Appeals opinion was otherwise affirmed by equal division. View "Mays v. Snyder" on Justia Law

Progress Michigan filed a complaint against then Attorney General Bill Schuette in his official capacity, alleging that defendant violated the Michigan Freedom of Information Act (FOIA), and failed to preserve state records under the Management and Budget Act. Plaintiff sought certain e-mail messages between Attorney General Schuette and his staff that were sent using personal e-mail accounts. Defendant denied the request on October 19, 2016, and on November 26, 2016, defendant denied plaintiff’s subsequent departmental appeal of that decision. Seeking to compel disclosure, plaintiff filed its complaint in the Court of Claims. Defendant moved for summary judgment, arguing that dismissal was appropriate because plaintiff failed to comply with the signature and verification requirement of MCL 600.6431 of the Court of Claims Act. Plaintiff amended its complaint which contained allegations identical to those in the original complaint, but was also signed by plaintiff’s executive director and sworn to before the Ingham County Clerk. Defendant again moved for summary judgment, this time arguing that the amended complaint was untimely because it was filed outside FOIA’s 180-day period of limitations. The Court of Claims dismissed plaintiff’s Management and Budget Act claim but denied the summary-judgment motion with respect to defendant’s FOIA claim, holding that plaintiff had complied with the MCL 600.6431 signature and verification requirement and that the complaint was timely filed within that statute’s one-year limitations period. The Court concluded that the amended complaint complied with FOIA’s statute of limitations because the amendment related back to the filing of the original complaint, which had been timely filed. The Court of Appeals reversed, reasoning that the Michigan Supreme Court’s decision in Scarsella v. Pollak, 607 NW2d 711 (2000), rendered plaintiff’s initial complaint a nullity, such that it could not be amended, and that the statutory period of limitations elapsed before the second complaint was filed. The Supreme Court reversed the appellate court, finding Scarsella did not apply in this context, and plaintiff complied with the statutory requirements necessary to sustain its claim under the FOIA. View "Progress Michigan v. Schuette" on Justia Law

Susan Bisio sued the City of the Village of Clarkston for allegedly violating the Michigan Freedom of Information Act (FOIA). Bisio filed a FOIA request with Clarkston seeking documents related to city business, including correspondence between Clarkston’s city attorney and a consulting firm concerning a development project and vacant property in the city. Clarkston denied Bisio’s request with regard to certain documents in the city attorney’s file. The city attorney, a private attorney who contracted with the city to serve as its city attorney, claimed that the requested documents were not “public records” as defined by MCL 15.232(i). The city attorney reasoned that he was not a “public body,” as defined by MCL 15.232(h), and because the requested documents were never in the possession of the city, which was a public body, the requested documents were not public records subject to a FOIA request. The trial court granted summary judgment in favor of Clarkston, concluding that the documents at issue were not public records because there was no evidence to show that Clarkston had used or retained them in the performance of an official function or that the city attorney had shared the documents with Clarkston to assist the city in making any decisions. The Court of Appeals affirmed the trial court, finding the city attorney was merely an agent of Clarkston and the definition of “public body” in MCL 15.232(h) did not encompass an agent of a public body. After its review, the Michigan Supreme Court reversed, finding the documents at issue did satisfy the statutory definition of "public records." View "Bisio v. City of the Village of Clarkson" on Justia Law

Deborah Foster sought to enforce a consent judgment of divorce (the consent judgment) between herself and ex-husband Ray Foster. The consent judgment provided that Ray would pay Deborah 50% of his military disposable retired pay accrued during the marriage or, if he waived a portion of his military retirement benefits in order to receive military disability benefits, he would continue to pay Deborah an amount equal to what she would have received had Ray not elected to receive such supplemental disability benefits. Because Ray was injured during combat, he was eligible for combat-related special compensation (CRSC), and Ray applied for CRSC around the time of his retirement. Deborah filed for divorce in November 2007, and the consent judgment was entered in December 2008. Deborah was receiving slightly more than $800 per month under the consent judgment until February 2010. When Ray began receiving CRSC, his disposable retirement benefit amount had been reduced, and Deborah's monthly payment was reduced to a little more than $200 per month. Ray failed to pay Deborah the difference between the reduced amount of retirement pay she was receiving and the amount that she had received shortly after entry of the consent judgment. Ray was ultimately held in contempt of court; he appealed to the Court of Appeals, arguing that the trial court erred by not finding Deborah's attempts to enforce the consent judgment preempted by federal law. The Court of Appeals concluded there was no preemption and affirmed the trial court’s contempt order. Defendant sought leave to appeal to the Michigan Supreme Court. The Supreme Court vacated the Court of Appeals' judgment and remanded the case for reconsideration in light of Howell v. Howell, 137 S Ct 1400 (2017). On remand, the Court of Appeals again affirmed the trial court’s finding of contempt, concluding that Howell did not overrule the Court of Appeals’ decision in Megee v. Carmine, 290 Mich App 551 (2010). Ray appealed again. The Supreme Court found federal law indeed preempted state law, such that the consent judgment was unenforceable to the extent it required Ray to reimburse Deborah for the reduction in the amount payable to her due to his election to receive CRSC. "Although the Court of Appeals indicated its agreement with plaintiff’s assertion that defendant was engaging in an improper collateral attack against the consent judgment, the panel did not discuss the effect of federal preemption on the trial court’s subject-matter jurisdiction or defendant’s ability to challenge the terms of the consent judgment outside of direct appeal." The matter was remanded for the Court of Appeals to address the effect of the Supreme Court's holding on Ray's ability to challenge the terms of the consent judgment. View "Foster v. Foster" on Justia Law

Christie DeRuiter, a registered qualifying medical marijuana patient and a registered primary caregiver to qualifying patients, brought an action in the Kent Circuit Court against Byron Township, alleging that the township’s zoning ordinance—which required that a primary caregiver obtain a permit before cultivating medical marijuana and that the caregiver cultivate the marijuana within a dwelling or garage in a residentially zoned area within the township as part of a regulated home occupation at a full-time residence—directly conflicted with and was therefore preempted by the Michigan Medical Marihuana Act (the MMMA). DeRuiter cultivated marijuana in an enclosed, locked facility at a commercially zoned property she rented in the township; she did not obtain a permit from the township before cultivating the medical marijuana as a primary caregiver. At the township’s direction, DeRuiter’s landlord ordered her to stop cultivating medical marijuana at the property or face legal action. The Michigan Supreme Court found that under the conflict-preemption doctrine, the MMMA did not nullify a municipality’s inherent authority to regulate land use under the Michigan Zoning Enabling Act (MZEA) as long as: (1) the municipality does not prohibit or penalize the cultivation of medical marijuana; and (2) the municipality does not impose regulations that are unreasonable and inconsistent with regulations established by state law. The township’s ordinance requiring primary caregivers to obtain a permit and pay a fee before using a building or structure within the township to cultivate medical marijuana also did not directly conflict with the MMMA because the ordinance did not effectively prohibit the medical use of marijuana. The Court of Appeals erred by affirming the trial court’s grant of summary disposition in favor of DeRuiter. The matter was remanded for further proceedings. View "DeRuiter v. Township of Byron" on Justia Law

David and Helen Goyings designed and built a retirement home on a lakefront lot. Their neighbors insisted the Goyingses violated the subdivision’s restrictive covenants that barred “pre-fabricated or modular home[s]” and had to tear it down. After a three-day bench trial, the trial court found no cause of action and dismissed the case. But the Court of Appeals concluded that the trial court erred when it held that the covenants “did not contemplate a home of the type built by Defendants.” The Court of Appeals reasoned the Goyingses’ home unambiguously fit the commonly understood definition of “modular” but never construed the disputed term used in the covenants, “modular home.” The panel reversed and held that the trial court should have granted judgment in the neighbors’ favor and ordered the Goyingses to tear down their new home. After review, the Michigan Supreme Court disagreed: "The materials, workmanship, quality, and outward appearance of the defendants’ home are indistinguishable from a site-built home. And modular components don’t necessarily make a modular home. The covenants give us text and context to determine what a modular home is. A fair reading of those covenants prohibits a home that is more modular than not. And the Goyingses’ home is mostly not modular." The Supreme Court reversed the Court of Appeals and affirmed the trial court’s dismissal of the case. View "Thiel v. Goyings" on Justia Law

Defendant Genesee County served as an administrator for certain employee health insurance plans. Plaintiff Genesee County Drain Commissioner Jeffrey Wright participated in this plan even though the office of drain commissioner had statutory autonomy from the county. The parties’ insurer, Blue Cross Blue Shield of Michigan (BCBSM), conducted a multi-year audit that revealed that the county’s collective insurance premiums, including those paid by the plaintiff, significantly exceeded the amount that should have been charged. The county held a public meeting about the overpayment -allegedly totaling millions of dollars - during which it accepted a refund from BCBSM. The county deposited the refund into its general fund. The plaintiff demanded a proportionate share of the refund; the county denied his request, and this lawsuit followed. The issue plaintiff’s case raised for the Michigan Supreme Court’s review reduced to whether a claim for unjust enrichment was barred by the governmental tort liability act (GTLA). The Court determined a claim for unjust enrichment was neither a tort nor a contract but rather an independent cause of action. And the remedy for unjust enrichment was restitution, not compensatory damages, the remedy for tort. For both reasons, the GTLA did not bar an unjust-enrichment claim. View "Genesee County Drain Commissioner v. Genesee County" on Justia Law

Dwayne Wigfall brought an action against the city of Detroit for injuries he sustained in a motorcycle accident allegedly caused when he hit a pothole on a city street. On advice from the city’s Law Department, Wigfall sent a notice via certified mail addressed to the Law Department that included a description of the pothole, its location, and a description of plaintiff’s injuries. An adjuster from the Law Department acknowledged receipt of Wigfall’s claim. After Wigfall filed his complaint, the city moved for summary judgment, arguing that Wigfall’s claim was barred by governmental immunity because Wigfall failed to serve notice of his claim on the mayor, the city clerk, or the city attorney as required by MCL 691.1404(2) and MCR 2.105(G)(2). The court denied the city’s motion, and the city appealed. Faytreon West brought an action against the city of Detroit, for injuries she allegedly suffered when she tripped on a pothole and fell while walking on a city street. West’s counsel sent notice of the injury and highway defect to the city’s Law Department via certified mail, instructing the city to immediately contact West’s counsel if it believed that the notice did not comply with any applicable notice requirements. The Law Department received the letter, and an adjuster from the Law Department acknowledged receipt of West’s claim. After West filed her complaint, the city moved for summary judgment, also arguing West had failed to comply with the notice requirement in MCL 691.1404(2) because she had not served an individual who may lawfully be served with civil process. The trial court granted the motion in favor of the city and denied West’s motion for reconsideration. In both cases, the Michigan Supreme Court reversed the grant of summary judgment in favor of the city: Plaintiffs complied with the requirements of MCL 691.1404(2) by serving their notices on the city’s Law Department. The Supreme Court found the Law Department was an agent of defendant’s city attorney (also known as the Corporation Counsel) and was charged with receiving notice under the city’s charter and ordinances. View "Wigfall v. City of Detroit" on Justia Law

The question presented in this case was whether the building inspection fees assessed by defendant, the city of Troy (the City), were “intended to bear a reasonable relation to the cost” of acts and services provided by the City’s Building Inspection Department (Building Department) under the Construction Code Act (CCA). The Michigan Supreme Court held the City’s use of the revenue generated by those fees to pay the Building Department’s budgetary shortfalls in previous years violated MCL 125.1522(1). “While fees imposed to satisfy the alleged historical deficit may arguably be for ‘the operation of the enforcing agency or the construction board of appeals,’ this does not mean that such fees ‘bear a reasonable relation’ to the costs of acts and services provided by the Building Department. Here, the Court was satisfied plaintiffs presented sufficient evidence to conclude that the City established fees that were not intended to “bear a reasonable relation” to the costs of acts and services necessary to justify the City’s retention of 25% of all the fees collected. Furthermore, the Supreme Court determined there was no express or implied monetary remedy for a violation of MCL 125.1522(1). Nonetheless, plaintiffs could seek declaratory and injunctive relief to redress present and future violations of MCL 125.1522(1). Because the City has presented evidence to justify the retention of a portion of these fees, the Supreme Court remanded to the trial court for further proceedings. Lastly, the Supreme Court concluded there was no record evidence establishing that plaintiffs were “taxpayer[s]” with standing to file suit pursuant to the Headlee Amendment. On remand, the trial court was mandated to allow plaintiffs’ members an opportunity to establish representational standing on plaintiffs’ behalf. View "Michigan Association of Home Builders v. City of Troy" on Justia Law