History
  • No items yet
midpage
City of Ann Arbor v. St James Church of God in Christ Ypsilanti
330336
| Mich. Ct. App. | Feb 23, 2017
Read the full case

Background

  • City sued St. James Church (a nonprofit corporation) and Pastor Melvin Lewis seeking nuisance abatement and permission to demolish a dangerous building on the Church’s property.
  • Lewis, a nonlawyer and the Church’s resident agent, filed an answer pro se purporting to represent the Church.
  • Because a corporation cannot be represented by a nonattorney, the Church failed to properly defend and a default was entered against the Church; the trial court then entered default judgment permitting demolition.
  • The Church later retained counsel and moved to set aside the default judgment, arguing good cause (Lewis’s confusion/ignorance) and a meritorious defense (corrected plans).
  • The trial court denied the motion to set aside, concluding Lewis’s unilateral lack of legal knowledge did not constitute good cause; motion for reconsideration denied.
  • The building was demolished; the Church appealed the denial of relief from the default judgment and collateral consequences (liens, costs) remain at issue.

Issues

Issue Plaintiff's Argument (City) Defendant's Argument (Church/Lewis) Held
Whether trial court abused discretion by denying motion to set aside default judgment Default properly entered because Church (a corporation) did not timely defend; no good cause shown Good cause: Lewis was reasonably "confused"/unaware that a nonlawyer cannot represent a corporation; deserves relief No abuse of discretion; ignorance of law by nonlawyer agent is not good cause to set aside default
Whether the Church showed a meritorious defense sufficient to set aside default Not reached by trial court; City contends none Church asserted City failed to explain site-plan rejections and Church corrected defects once informed Court did not decide meritorious-defense issue because good-cause failure was dispositive
Whether prior cases recognizing "confusion" as good cause apply here Those cases involved unusual procedural circumstances, not a unilateral misunderstanding Lewis’s confusion is analogous and should be excused Distinguishable; prior cases involved non‑unilateral, unusual circumstances; not applicable here
Whether procedural due‑process error from not ruling on stay warrants reversal City: moot because Church cannot obtain relief; no prejudice Church: trial court errored by not ruling on stay; due process violated Moot/unpreserved; no relief available so appellate court declines to decide

Key Cases Cited

  • Detroit Bar Ass'n v. Union Guardian Trust Co., 282 Mich. 707 (1938) (nonlawyer may not represent a corporation; unauthorized practice of law)
  • Fraser Trebilcock Davis & Dunlap PC v. Boyce Trust 2350, 497 Mich. 265 (2015) (corporation has separate legal existence and must be represented by counsel)
  • Saffian v. Simmons, 477 Mich. 8 (2007) (abuse-of-discretion standard for postjudgment relief; trial court discretion to evaluate reasonableness of excuses)
  • Barclay v. Crown Bldg. & Dev., Inc., 241 Mich. App. 639 (2000) (Michigan disfavors setting aside properly entered defaults; good cause standard explained)
  • Reed v. Walsh, 170 Mich. App. 61 (1988) (a lay party’s lack of legal knowledge will not necessarily be a reasonable excuse to set aside default)
  • Alken‑Ziegler, Inc. v. [Defendant], 461 Mich. (2000) (party is responsible for actions/inactions of its agents)
Read the full case

Case Details

Case Name: City of Ann Arbor v. St James Church of God in Christ Ypsilanti
Court Name: Michigan Court of Appeals
Date Published: Feb 23, 2017
Docket Number: 330336
Court Abbreviation: Mich. Ct. App.