Details Automotive Finishes LLC v. Four Childrens Enterprises LLC
355711
| Mich. Ct. App. | Apr 21, 2022Background
- Plaintiff (Details Automotive Finishes) acquired 14360 Washburn St., Detroit, by tax-foreclosure quitclaim deed in November 2015; prior owner was Four Childrens Enterprises (FCE) / Lecresha Ware.
- Plaintiff executed eviction in March 2016; later discovered equipment on the parcel and a blocked Washburn access; plaintiff installed a gate July 2016.
- Ware recorded a 2017 quitclaim deed purporting to convey the Washburn parcel to Bucharest Investments; plaintiff learned of the deed in July 2017 while negotiating a $150,000 sale to Kenji Lemon (sale collapsed over title issues).
- Adjacent parcels (14385 and 14365 Wyoming) were conveyed to Brian McKinney; McKinney/Gayanga stored heavy equipment, posted no-trespass signs, and denied plaintiff access beginning in early 2018.
- Plaintiff sued (quiet title, injunctive relief, slander of title), obtained quiet title at bench trial; trial court awarded slander damages of $163,800 (including $150,000 lost sale) plus $30,100 attorney fees against Ware/FCE, and trespass damages of $130,000 (52 months × $2,500/mo) plus injunctive relief against McKinney/Gayanga.
- On appeal the Court of Appeals affirmed liability rulings in part, vacated and remanded the damage awards for recalculation (trespass period and slander damages), and otherwise affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court could treat Count III (titled "Injunctive Relief") as a trespass claim | Complaint alleged Gayanga occupied plaintiff’s property, denied access, and attached a letter threatening trespass prosecution; plaintiff argued the pleading gave notice of trespass and sought damages and injunctive relief | McKinney/Gayanga argued trespass was a new legal theory not pled and that the court improperly amended pleadings sua sponte | Court held complaint, read as a whole, fairly pleaded trespass; trial court did not abuse discretion in treating Count III as trespass. |
| Whether trespass damages based on a 52-month period (Dec 2015–Mar 2020) were supported by evidence | Plaintiff relied on continuous occupation and photographic evidence to justify damages for entire period | McKinney/Gayanga argued record lacked evidence they trespassed as early as Dec 2015; trespass first appears in evidence in Jan 2018 | Court held finding of trespass beginning Dec 2015 was clearly erroneous; vacated trespass damages and remanded for recalculation. |
| Whether Ware/FCE’s slander-of-title damages ($150,000 lost sale) were supported when plaintiff retained the property (market value $148,000) | Plaintiff treated the full $150,000 lost-sale price as damages caused by the recorded deed and related disparagement | Ware/FCE argued plaintiff suffered at most the difference between sale price and retained FMV (about $2,000) because title was ultimately quieted in plaintiff’s favor | Court held plaintiff could not recover the full $150,000 where plaintiff retained the property worth $148,000; award for lost sale was clearly erroneous and must be recalculated under causation/substantial-factor principles. |
| Whether pre-2017 expenses ($13,800) could be recovered as damages for slander of title based on a 2017 recorded deed | Plaintiff included eviction and related 2016 expenses in award | Ware/FCE argued slander of title was premised on the 2017 recorded deed, so expenses incurred before that act were not caused by the slander | Court held the 2016 expenses were not caused by Ware/FCE’s 2017 slanderous recording and vacated that portion of the award; remand for proper damages calculation. |
Key Cases Cited
- Dacon v. Transue, 441 Mich 315 (Mich. 1992) (trial court has broad discretion over pleadings and amendments)
- Weymers v. Khera, 454 Mich 639 (Mich. 1997) (motions to amend pleadings reviewed for abuse of discretion)
- Johnson v. QFD, Inc., 292 Mich App 359 (Mich. Ct. App. 2011) (Michigan is a notice-pleading state; complaints read as whole to determine gravamen)
- Dalley v. Dykema Gossett, 287 Mich App 296 (Mich. Ct. App. 2010) (pleading must give reasonable notice of claims)
- Buhalis v. Trinity Continuing Care Servs., 296 Mich App 685 (Mich. Ct. App. 2012) (courts look beyond labels to determine claim substance)
- Terlecki v. Stewart, 278 Mich App 644 (Mich. Ct. App. 2008) (definition and elements of trespass and injunction as remedy)
- GKC Mich. Theaters, Inc. v. Grand Mall, 222 Mich App 294 (Mich. Ct. App. 1997) (slander-of-title causation: use substantial-factor test)
- Schankin v. Buskirk, 354 Mich 490 (Mich. 1958) (measure of trespass damages and flexible approaches to compensate harm)
- Chelsea Investment Group v. City of Chelsea, 288 Mich App 239 (Mich. Ct. App. 2010) (bench-trial findings of fact and damages reviewed for clear error)
- Alan Custom Homes, Inc. v. Krol, 256 Mich App 505 (Mich. Ct. App. 2003) (appellate review standard for damages after bench trial)