Black Law Offices Pc v. First Merit Bank
328699
Mich. Ct. App.Nov 15, 2016Background
- Randie Black, sole shareholder of Black Law Offices, P.C., defaulted on two promissory notes secured by the law-office building; Citizens Bank foreclosed and purchased the property at sheriff’s sale; Black did not redeem.
- The district court declared Citizens Bank (later succeeded by First Merit Bank) entitled to possession, voided leases, and issued eviction orders; Black and the corporation remained and were evicted in 2013.
- After prior litigation and appeals resolving the foreclosure/eviction, Black Law Offices filed a new suit asserting forcible ejectment/unlawful detainer, trespass, abuse of process, tortious interference, defamation, and conversion against First Merit Bank, Butzel Long, O’Malley, and eviction officers.
- Defendants moved for summary disposition; the trial court dismissed all claims as legally insufficient or barred and found plaintiff’s claims frivolous, awarding attorney fees and costs to defendants.
- Plaintiff appealed, challenging (1) denial of recusal of Judge Garcia and (2) summary disposition and the award of attorney fees as frivolous and excessive.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Judicial recusal | Judge Garcia previously decided related eviction matters and thus was biased or appearance of impropriety | Prior appellate rulings do not establish disqualifying bias; no deep-seated favoritism | Denial of recusal affirmed; no abuse of discretion |
| Sufficiency of wrongful eviction / unlawful detainer claim | Corporation lacked notice because eviction orders named Black, not the corporation | Black (sole shareholder/landlord/counsel) had actual notice; corporate veil pierced for notice purposes | Claim dismissed as meritless; plaintiff had notice and no court-ordered improper eviction |
| Trespass / conversion | Entry and removal of property constituted trespass and conversion | Entry and removal were authorized by court order; plaintiff had no possessory right after eviction | Claims frivolous; no exclusive possession or wrongful dominion |
| Abuse of process / tortious interference / defamation | Defendants used process for ulterior motives, interfered with business, and made defamatory statements by their conduct | Actions were privileged/justified by legitimate foreclosure and possession objectives; allegations were conclusory | All claims dismissed as legally insufficient or frivolous; no specific facts alleging ulterior motive, improper act, or false statements |
| Attorney fees award | Sanctions and fees were punitive/excessive | Fees awarded under MCR sanctions and MCL 600.2591 for frivolous claims; amount reasonable given documentation | Fee awards affirmed as reasonable and within trial court discretion; defendants may tax costs |
Key Cases Cited
- Caperton v. Massey, 556 U.S. 868 (2010) (due-process/appearance-of-bias standard for judicial recusal)
- Reed v. Reed, 265 Mich. App. 131 (2004) (standards on appeals and fee recovery principles)
- Butler v. Simmons-Butler, 308 Mich. App. 195 (2014) (review standards for disqualification rulings)
- Gates v. Gates, 256 Mich. App. 420 (2003) (repeated adverse rulings do not alone show disqualification absent deep-seated favoritism)
- Maiden v. Rozwood, 461 Mich. 109 (1999) (standards for MCR 2.116(C)(8) motions)