Barry a Seifman Pc v. Raymond Guzall III
328643
| Mich. Ct. App. | Jan 17, 2017Background
- Seifman (plaintiff) sued Guzall (defendant) alleging Guzall, a former minority shareholder, took clients and physical client files when he left the firm; Guzall filed counterclaims.
- The trial court appointed attorney William Booth as a "Discovery Master" (later also as facilitator); parties were ordered to escrow fees and Booth provided services and billed $4,080.
- Guzall engaged with Booth and at times sought expansion of Booth’s role; Guzall later challenged Booth’s appointment and sought return of escrowed funds after adverse rulings and receipt of Booth’s bill.
- On May 13, 2015 the trial court orally granted summary disposition to Seifman on the limited issue of Guzall’s removal of client files; Guzall objected to the proposed wording of the written order.
- The parties accepted a case evaluation award shortly thereafter; the trial court then entered a written order memorializing the earlier summary-disposition ruling regarding removal of files and an order closing the case because the case evaluation was accepted.
- Guzall appealed the trial court’s appointment/payment of the discovery master and the propriety of the subsequent written summary-disposition order; Seifman sought sanctions for frivolous/vexatious appeal.
Issues
| Issue | Plaintiff's Argument (Seifman) | Defendant's Argument (Guzall) | Held |
|---|---|---|---|
| 1) Authority to appoint/pay a discovery master and reasonableness review of fees | Appointment was proper and fees paid per court order | Trial court lacked authority to appoint a discovery master and to require payment; court should review reasonableness of fees | Because both parties accepted case evaluation and thereby disposed of the entire action, Guzall lost ability to appeal the appointment/payment; issues therefore not reviewable on appeal |
| 2) Trial court entry of a written summary-disposition order after mutual acceptance of case-evaluation | Entry was proper because it memorialized an oral ruling made before acceptance | Entry was improper because after acceptance only dismissal should be entered | Entry was proper: the written order merely memorialized a decision made before case evaluation acceptance, so it was ministerial and not an impermissible post-acceptance action |
| 3) Request for appellate sanctions (frivolous/vexatious appeal) | Appeal is frivolous/vexatious; sanctions appropriate | Appeal has arguable bases; sanctions unwarranted | Court declined sanctions: Seifman waived a fuller frivolous-appeal argument and Guzall’s positions, while unpersuasive, were not sanctionable |
Key Cases Cited
- CAM Const v Lake Edgewood Condo Ass’n, 465 Mich 549; 640 NW2d 256 (Mich. 2002) (acceptance of case evaluation disposes of all claims in the action)
- People v Carter, 462 Mich 206; 612 NW2d 144 (Mich. 2000) (acquiescence to a court’s decision waives appellate challenge)
- Kitchen v Kitchen, 465 Mich 654; 641 NW2d 245 (Mich. 2002) (losing an appealable argument does not alone make the position frivolous)
- Ykimoff v Foote Mem Hosp, 285 Mich App 80; 776 NW2d 114 (Mich. Ct. App. 2009) (standards for finding an appeal frivolous)
