Justia Michigan Supreme Court Opinion Summaries

In 2009 and 2010, the south wing of the Detroit Public Library was renovated. Defendant KEO & Associates, Inc. (KEO) was the principal contractor for this project. Defendant Westfield Insurance Company supplied KEO with a payment bond worth $1.3 million, as required by the public works bond act (PWBA). KEO was identified as the principal contractor and Westfield as the surety on the bond. KEO subcontracted with defendant Electrical Technology Systems, Inc. (ETS) to provide labor and materials for electrical work. The agreement between KEO and ETS included a pay-if-paid clause, obliging KEO to pay ETS only after KEO had been paid for the relevant portion of work performed. ETS in turn subcontracted with Wyandotte Electric Supply Company for materials and supplies, making Wyandotte a sub-subcontractor from KEO’s perspective. ETS and Wyandotte first formed a relationship in 2003, when they entered into an “open account” agreement that governed ETS’s purchases from Wyandotte. Over the course of the project, ETS paid Wyandotte only sporadically and the unpaid balance grew. Initially, Wyandotte supplied materials on credit and credited ETS’s payments to the oldest outstanding balance, but eventually Wyandotte began to ship materials only for cash on delivery. Wyandotte sent certified letters to KEO and Westfield asking for a copy of the payment bond related to the library renovation project. The letter, on Wyandotte’s letterhead, referred to the “Detroit Public Library South Wing with [ETS.]” According to Wyandotte, KEO provided a copy of the payment bond the next day. Wyandotte also sent KEO a 30-day “Notice of Furnishing” in accordance with MCL 129.207, explaining that it was one of ETS’s suppliers. Wyandotte also sent copies of the letter to Westfield, the library, and ETS. The issue this case presented for the Supreme Court's revie centered on whether actual notice was required for a sub-subcontractor to recover on a payment bond when that sub-subcontractor complied with the notice requirements set forth in MCL 129.207. Furthermore, this case raised the question of whether a PWBA claimant could recover a time-price differential and attorney fees that were provided for by the claimant’s contract with a subcontractor, but were unknown to the principal contractor holding the payment bond as well as the principal’s surety. The Supreme Court concluded that the PWBA contained no actual notice requirement for claimants that comply with the statute, that the trial court properly awarded a time-price differential and attorney fees on past-due invoices to Wyandotte, and that the trial court erred in awarding postjudgment interest under MCL 600.6013(7). Accordingly, the Court affirmed the Court of Appeals with regard to the first two issues and reversed with regard to the third. View "Wyandotte Electric Supply Co. v. Electrical Technology Systems, Inc." on Justia Law

Defendant Paul Seewald and alleged coconspirator Don Yowchuang worked in the district office of former Congressman Thaddeus McCotter during McCotter’s 2012 reelection campaign. Michigan election law required McCotter to submit at least 1,000 valid voter signatures before the Secretary of State could certify his placement on the ballot. Defendant and Yowchuang bore some responsibility for collecting those signatures and submitting them to the Secretary of State. The day before the nominating petitions were due, defendant and Yowchuang realized that several of the petitions had not been signed by their circulator, and agreed to sign the petitions as circulators, even though they had not circulated the petitions themselves. Defendant was charged with nine counts of falsely signing nominating petitions (misdemeanor), and one count of conspiring to commit a legal act in an illegal manner (felony). Following a preliminary examination, the trial court bound defendant over to the Wayne Circuit Court as charged. Defendant moved to quash the information on the felony charge. The circuit court granted his motion and dismissed the felony charge against him, concluding that there had been no conspiracy to commit a legal act. The Court of Appeals affirmed in an unpublished opinion, agreeing that the prosecution could not show an agreement to commit a legal act. The Supreme Court granted the prosecution’s application for leave to appeal. The issue before the Supreme Court reduced to what alleged conduct was sufficient to warrant a bindover on the peculiar charge of “conspiring to commit a legal act in an illegal manner.” In an "anomalous" reversal of roles, defendant argued that his aim was illicit through and through, that he never agreed to commit any legal act. Rather he conspired to commit an illegal act illegally; and that double illegality should have set him free. The prosecution argued that while defendant’s agreed-to means were illegal, his conspiratorial ends were legal; and that legality was sufficient to try him as a felon. The irony was not lost on the Supreme Court. After examining the conspiracy statute, the Court held that the conduct alleged provided probable cause for trial on the charge. Accordingly, the Court reversed the judgment of the Court of Appeals and remanded the case to the Wayne Circuit Court for reinstatement of the district court's order to bind defendant over and for further proceedings. View "Michigan v. Seewald" on Justia Law

Plaintiff Bank of America brought an action against First American Title Insurance Company, Westminster Abstract Company, and others, alleging breach of contract and negligent misrepresentation in connection with mortgages that plaintiff had partially financed on four properties whose value had been fraudulently inflated and whose purchasers were straw buyers who had been paid for their participation. Shortly after closing, all four borrowers defaulted. After discovering the underlying fraud in the four loans during the foreclosure proceedings, plaintiff sued, among others, First American, which had issued closing protection letters that promised to reimburse plaintiff for actual losses incurred in connection with the closings if the losses arose from fraud or dishonesty, and Westminster, alleging that it had violated the terms of the closing instructions. The other defendants either defaulted or were dismissed. The Court of Appeals held that plaintiff’s claim against First American relating to the properties on which it had made full credit bids was barred by "New Freedom Mtg Corp v Globe Mtg Corp," (281 Mich App 63 (2008)). With respect to First American’s liability on the other two closings, the Court of Appeals concluded that the trial court properly granted summary disposition to First American and Westminster because plaintiff had failed to produce evidence that created a question of fact regarding whether Westminster knew of or participated in the underlying fraud in those closings. Finally, the Court of Appeals concluded that plaintiff had not established a link between Westminster’s alleged violations of the closing instructions and the claimed damages and, even if a link had been established, there were no damages because of plaintiff’s full credit bid at the foreclosure sale. The Supreme Court reversed, finding the Court of Appeals erred by concluding that plaintiff’s full credit bids barred its contract claims against the nonborrower third-party defendants. To the extent that New Freedom held that the full credit bid rule barred contract claims brought by a mortgagee against nonborrower third parties, it was overruled. Further, the closing instructions agreed to by plaintiff and Westminster constituted a contract upon which a breach of contract claim could be brought. Finally, the lower courts erred by relying on New Freedom to interpret the credit protection letters given that the terms of the letters in New Freedom differed materially from the ones at issue here. View "Bank of America, NA v. First American Title Ins. Co." on Justia Law

This case arose out of a traffic stop of defendant Charles Dunbar made after police officers observed that his vehicle’s registration plate was partially obstructed by a bumper-mounted towing ball, a civil infraction under MCL 257.225(2) and (7). During the stop, the officers smelled burnt marijuana within the vehicle, leading to a search of the vehicle during which they discovered contraband, including marijuana, cocaine, and a handgun. Defendant subsequently moved to suppress that contraband as the fruit of an illegal seizure because, according to defendant, the officers lacked a lawful basis on which to stop his vehicle. The trial court denied defendant’s motion, concluding that his obstructed plate violated MCL 257.225(2) and therefore provided a lawful basis on which to stop his vehicle. The Court of Appeals, however, concluded that MCL 257.225(2) did not prohibit the obstruction of a registration plate by a towing ball and reversed. The Supreme Court disagreed with the Court of Appeals and reversed its judgment. View "Michigan v. Dunbar" on Justia Law

Jason Triplett was convicted by jury on counts of domestic violence, carrying a concealed weapon and felonious assault. The charges arose after he threatened to use his utility knife to escape from two men who had stopped their vehicle when they spotted defendant and his wife fighting on the side of the road. The trial court instructed the jury that self-defense was a defense to the charge of felonious assault but that it was not a defense to carrying a concealed weapon (CCW). The Court of Appeals affirmed. Contrary to the Court of Appeals’ determination, the Michigan Supreme Court concluded that the common-law affirmative defense of self-defense was indeed available to a defendant charged with CCW for concealing an instrument which is a dangerous weapon only because it is used as a weapon. Accordingly, the Court reversed the judgment of the Court of Appeals, vacated defendant’s CCW conviction, and remanded this case for further proceedings. View "Michigan v. Triplett" on Justia Law

Brian Beck, Audrey Mahoney, David and Felice Oppenheim, Patty Brown, and others brought an action in the Oakland Circuit Court against Park West Galleries, Inc., and others, alleging, inter alia, breach of contract and fraud. Defendant Park West Galleries, Inc. (Park West) sold art on various cruise ships traversing international waters. Plaintiffs purchased art from Park West on multiple occasions over the course of several years while on different cruise ships in different locations. The issue this case presented for the Michigan Supreme Court's review centered on whether an arbitration clause included in invoices for plaintiffs’ artwork purchases applied to disputes arising from plaintiffs’ previous artwork purchases when the invoices for the previous purchases did not refer to arbitration. The Court agreed with plaintiffs that the arbitration clause contained in the later invoices could not be applied to disputes arising from prior sales with invoices that did not contain the clause. Each transaction involved a separate and distinct contract, and the facts did not reasonably support a conclusion that the parties intended for the arbitration clause to retroactively apply to the previous contracts. Accordingly, the Supreme Court reversed that part of the Court of Appeals judgment that extended the arbitration clause to the parties’ prior transactions that did not refer to arbitration. The case was remanded back to the Court of Appeals for consideration of the issues raised in plaintiffs’ appeal that the Court did not address to the extent those issues relate to claims that are not subject to arbitration. In all other respects, leave to appeal was denied because the Court was not persuaded that it needed to review the remaining questions presented. View "Beck v. Park West Galleries, Inc." on Justia Law

Brian Beck, Audrey Mahoney, David and Felice Oppenheim, Patty Brown, and others brought an action in the Oakland Circuit Court against Park West Galleries, Inc., and others, alleging, inter alia, breach of contract and fraud. Defendant Park West Galleries, Inc. (Park West) sold art on various cruise ships traversing international waters. Plaintiffs purchased art from Park West on multiple occasions over the course of several years while on different cruise ships in different locations. The issue this case presented for the Michigan Supreme Court's review centered on whether an arbitration clause included in invoices for plaintiffs’ artwork purchases applied to disputes arising from plaintiffs’ previous artwork purchases when the invoices for the previous purchases did not refer to arbitration. The Court agreed with plaintiffs that the arbitration clause contained in the later invoices could not be applied to disputes arising from prior sales with invoices that did not contain the clause. Each transaction involved a separate and distinct contract, and the facts did not reasonably support a conclusion that the parties intended for the arbitration clause to retroactively apply to the previous contracts. Accordingly, the Supreme Court reversed that part of the Court of Appeals judgment that extended the arbitration clause to the parties’ prior transactions that did not refer to arbitration. The case was remanded back to the Court of Appeals for consideration of the issues raised in plaintiffs’ appeal that the Court did not address to the extent those issues relate to claims that are not subject to arbitration. In all other respects, leave to appeal was denied because the Court was not persuaded that it needed to review the remaining questions presented. View "Beck v. Park West Galleries, Inc." on Justia Law

Alan Jesperson was injured in a motor vehicle accident when his motorcycle was struck from behind by a vehicle owned by Mary Basha and driven by Matthew Badelalla while Badelalla was making deliveries for Jet’s Pizza. Auto Club Insurance Association (ACIA) was notified of Jesperson’s injuries and that it was the highest-priority no-fault insurer. It began making payments to Jesperson shortly after it received that notice. Jesperson brought an action against Basha, Badelalla, and Jet’s seeking damages for the injuries he had sustained. He later moved to amend his complaint to add a claim against ACIA after it stopped paying him no-fault benefits. The trial court entered a default judgment against Badelalla and Basha, entered an order allowing Jesperson to amend the complaint, and entered an order severing Jesperson’s claims for trial. A jury returned a verdict of no cause of action with regard to Jesperson’s claims against Jet’s. Before trial on the remaining claim, ACIA moved for summary judgment, arguing that Jesperson’s claim against it was barred by the statute of limitations in MCL 500.3145(1). The court agreed that the statute of limitations barred Jesperson’s claim and granted ACIA’s motion for summary disposition. On appeal, the Court of Appeals affirmed, holding that the exception in MCL 500.3145(1) to the one-year limitations period when the insurer has previously made a payment applied only if the insurer has made a payment within one year after the date of the accident. Jesperson appealed, and the Supreme Court reversed. The Supreme Court found that the insurer's payment of no-fault benefits more than a year after the date of the accident satisfied the second exception to the one-year statute of limitations in MCL 500.3145(1). The Court vacated the trial court's order granting summary judgment in favor of the insurer and the case was remanded for further proceedings. View "Jesperson v. Auto Club Insurance Association" on Justia Law

In this medical malpractice case, the issue on appeal to the Michigan Supreme Court was whether the circuit court abused its discretion by excluding plaintiff’s expert medical testimony under MRE 702. The circuit court granted summary judgment in favor of defendants after excluding the opinion testimony of plaintiff’s expert, concluding that it was inadmissible because it was not reliable and did not meet the requirements of MCL 600.2955. The Court of Appeals, in a split opinion, reversed the circuit court and remanded, concluding that the circuit court incorrectly applied MRE 702 and abused its discretion by excluding the expert's testimony. The expert admitted that his opinion was based on his own personal beliefs. The Supreme Court found there was no evidence that the expert's opinion was generally accepted within the relevant expert community, there was no peer-reviewed medical literature supporting his opinion, plaintiff failed to provide any other support for the expert's opinion, and defendant submitted contradictory, peer-reviewed medical literature. As such, the Court concluded the circuit court did not abuse its discretion by excluding the expert's testimony. The Court of Appeals clearly erred by concluding otherwise. View "Ehler v. Mirsa" on Justia Law

The issue this case presented for the Supreme Court's review in this matter focused on the application of Michigan's Whistleblowers' Protection Act (WPA) to an employee who alleged that she was terminated because she reported a coworker’s plan to violate the law. Because "a violation or a suspected violation" refers to an existing violation of a law, the plain language of MCL 15.362 contemplated an act or conduct that has actually occurred or was ongoing. "MCL 15.362 contains no language encompassing future, planned, or anticipated acts amounting to a violation or a suspected violation of a law." Because plaintiff in this case merely reported another’s intent to violate a law in the future, plaintiff had no recourse under the WPA. The Supreme Court reversed the Court of Appeals’ contrary decision and remanded this case to that court for further proceedings. View "Pace v. Edel-Harrison" on Justia Law