Asphalt Specialists Inc v. Steven Anthony Development Company
314658
Mich. Ct. App.Mar 21, 2017Background
- This appeal arises from litigation over construction liens and an award of attorney fees connected to foreclosure of those liens in a development project; multiple contractors and parties (including Wells Venture Corporation) were involved.
- The trial court awarded attorney fees to contractors who foreclosed against the developer and included those fees in lien recoveries; WVC challenged liability for fees beyond those incurred in foreclosing liens against it.
- A prior Court of Appeals panel reversed the inclusion of attorney fees in the construction liens and remanded for the trial court to separate lien amounts from attorney-fee awards and reassess fee reasonableness.
- On remand the trial court reconsidered reasonableness; this Court initially applied the law-of-the-case doctrine and affirmed entitlement to fees as previously decided, binding WVC.
- After the Michigan Supreme Court remanded for reconsideration in light of C D Barnes Assoc, this panel held that C D Barnes changed the applicable law on attribution of attorney fees and exercised its discretion not to apply the law-of-the-case doctrine.
- The Court reversed and remanded for the trial court to reassess attorney-fee awards under the C D Barnes framework, ensuring fees are attributed to the appropriate parties and not simply added to lien amounts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether attorney fees could be added to the amount of a construction lien and enforced against WVC | Contractors argued fees related to lien enforcement were recoverable and enforceable against WVC | WVC argued it should not be liable for fees beyond those incurred to foreclose liens against it | Court held C D Barnes requires fees be awarded separately from lien amounts and remanded to ensure fees are attributed to appropriate parties; reversed and remanded for further proceedings |
| Whether prior panel's decision (law of the case) bound this panel despite intervening change in law | Contractors relied on the prior panel's resolution of entitlement to fees | WVC contended law of the case precluded relitigation that would relieve it of fees | Court exercised discretion not to apply law-of-the-case doctrine because C D Barnes altered the applicable legal framework and fairness required reconsideration |
| Standard for assessing reasonableness and attribution of attorney fees | Contractors urged court to confirm previously awarded amounts as reasonable | WVC challenged reasonableness and attribution to it specifically | Court instructed trial court to reassess reasonableness and attribute fees properly under C D Barnes rather than combining with liens |
| Whether change in law must occur after lower-court decision to overcome law of the case | Contractors emphasized timing of decisions supported applying law of the case | WVC pointed to substantive change in law (C D Barnes) undermining prior panel's approach | Court acknowledged timing but found discretion to decline law-of-the-case application given substantive shift in law and fairness concerns |
Key Cases Cited
- C D Barnes Assoc, Inc. v. Star Heaven, LLC, 300 Mich. App. 389 (court must award construction liens and attorney fees separately; cannot add fees to lien amount)
- Smith v. Khouri, 481 Mich. 519 (standard for assessing reasonableness of attorney-fee awards)
- Hill v. City of Warren, 276 Mich. App. 299 (law-of-the-case doctrine explained)
- Freeman v. DEC Intern., Inc., 212 Mich. App. 34 (narrow exception and discretion in applying law-of-the-case doctrine)