City of Ann Arbor v. St James Church of God in Christ Ypsilanti
330336
| Mich. Ct. App. | Feb 23, 2017Background
- 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)
