3D Imaging Services LLC v. McLaren Inc
333100
| Mich. Ct. App. | Aug 8, 2017Background
- 3D Imaging (plaintiff) agreed to perform 3D laser scanning and deliver an AutoCAD (2010) LOD 100 point‑cloud-based model (.dwg) of two motel buildings and a cabin for McLaren (defendant). Contract price $2,225; $445 paid, $1,780 balance.
- Plaintiff delivered a .dwg AutoCAD file. McLaren’s president said he could not manipulate the delivered file as he expected and argued he had requested a 2D drawing; he refused to pay the balance.
- Plaintiff contended the contract expressly required 3D scanning and modeling, and that the delivered .dwg could be converted or viewed in 2D. Plaintiff’s witnesses demonstrated viewing the file in 2D.
- District court held the contract clearly required a 3D model, found plaintiff performed, and awarded $1,780 plus $2,000 in attorney fees and costs.
- The circuit court reversed, finding the contract ambiguous about whether the delivered “model” was 2D or 3D and entered judgment for defendant for $455 (the retainer).
- The Court of Appeals reversed the circuit court, holding the contract unambiguous (3D) and that plaintiff performed; remanded for determination of attorney fees and costs on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the contract ambiguous as to whether the delivered "model" had to be 2D or 3D? | Contract language plainly requires 3D scanning and modeling; not ambiguous. | Parties disputed meaning of “model”; defendant says he expected 2D and contract was silent, creating ambiguity. | Contract unambiguous: language ("3D laser scanning", "3D modeling", "three‑dimensional environment") requires 3D model. |
| Did plaintiff breach the contract by not providing a 2D drawing? | No; plaintiff delivered the required 3D .dwg and the file can be viewed/converted to 2D. | Yes; plaintiff failed to provide the 2D product defendant says he requested. | No breach by plaintiff; plaintiff performed and defendant breached by withholding payment. |
| Was defendant’s ambiguity argument preserved below? | N/A — plaintiff argued issue not raised below. | Defendant presented testimony about its expectation of a 2D model, sufficient to raise meaning dispute. | Court: parties’ conflicting testimony over “model” functioned as an ambiguity argument; issue was preserved. |
| Is plaintiff entitled to contract attorney fees and costs (including appellate fees)? | Yes; contract authorized fees/costs; district court awarded fees but circuit court did not address appellate fees. | N/A (circuit court did not resolve fees). | Remanded to circuit court to determine entitlement/amount of fees and costs, including appellate fees. |
Key Cases Cited
- Redmond v. Van Buren County, 293 Mich. App. 344 (standard of review for bench-trial findings) (discusses review for clear error and de novo law review)
- Coates v. Bastian Bros., Inc., 276 Mich. App. 498 (contract interpretation reviewed de novo)
- Smith v. Anonymous Joint Enterprise, 487 Mich. 102 (appellate courts should not override factual credibility findings)
- DaimlerChrysler Corp. v. G‑Tech Prof. Staffing, Inc., 260 Mich. App. 183 (contract interpretation principles)
- In re Smith Trust, 480 Mich. 19 (unambiguous contractual language enforced as written)
- Raska v. Farm Bureau Mut. Ins. Co. of Mich., 412 Mich. 355 (definition of ambiguity: reasonably susceptible to different meanings)
- Hellebuyck v. Farm Bureau Gen. Ins. Co. of Mich., 262 Mich. App. 250 (inartful wording that admits one interpretation is not ambiguous)
- Frankenmuth Mut. Ins. Co. v. Masters, 460 Mich. 105 (courts may not create ambiguity when terms are clear)
- Auto‑Owners Ins. Co. v. Churchman, 440 Mich. 560 (contract construed as a whole; give meaning to all terms)
- Miller‑Davis Co. v. Ahrens Constr., Inc., 495 Mich. 161 (elements required to prove breach of contract)
- Old Kent Bank v. Sobczak, 243 Mich. App. 57 (performance measured against contract’s plain terms)
