Fjn LLC v. Vijay Parakh
331889
| Mich. Ct. App. | Jun 22, 2017Background
- Frank Nazar Sr. and Jr., via corporate entities, renovated Gino’s Surf in Harrison Twp. Phase II (an antique car museum/restaurant) was completed in Feb 2009; plaintiffs believed they were entitled to a certificate of occupancy.
- Township building official Vijay Parakh informed plaintiffs Phase II lacked a certificate and attempted to prevent a February 6, 2009 grand opening; he prepared a written report to the Township Board describing safety violations and overcrowding.
- Plaintiffs sued in federal court (substantive due process); a jury later awarded plaintiffs economic and punitive damages against defendants.
- In state court plaintiffs sued for declaratory relief (Count I) and for libel/slander (Counts II–IV) based on Parakh’s report and alleged verbal statements. The trial court limited the defamation claims to statements unrelated to the occupancy issue.
- On remand from this Court, Parakh moved for summary disposition asserting the Board report was absolutely privileged; the trial court granted summary disposition on Counts II–IV and ordered declaratory relief on Count I (the occupancy claim not at issue on appeal).
- The Court of Appeals affirmed: it held Parakh prepared the report within his official duties for a quasi‑legislative proceeding, so the report was absolutely privileged and not actionable as defamation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Parakh’s report is absolutely privileged | Report was disseminated to media/third parties, so privilege inapplicable | Report prepared for Board in furtherance of official duties; absolute privilege applies | Report is absolutely privileged; defamation claims fail as a matter of law |
| Whether plaintiffs raised a factual dispute on publication to third parties | Newspaper article and community statements show publication by Parakh | No evidence Parakh distributed report to media; plaintiffs must prove unprivileged third‑party publication | No competent evidence Parakh published to third parties; plaintiffs’ speculation insufficient |
| Whether absolute privilege can be asserted despite not pleaded explicitly | Privilege was not raised in answer so defense waived | Privilege is a form of immunity and Parakh asserted immunity, giving plaintiffs notice | Privilege need not be separately pleaded; immunity notice suffices |
| Whether falsity/malice or damages preclude summary disposition | Malice and damages exist (forensic accountant report) preventing summary disposition | Absolute privilege defeats liability even if statements were false or malicious | Absolute privilege bars liability regardless of falsity/malice; summary disposition proper |
Key Cases Cited
- Ross v. Consumers Power Co., 420 Mich 567 (governs immunity for intentional torts)
- Kefgen v. Davidson, 241 Mich App 611 (definition and elements of defamation; privilege doctrine)
- Froling v. Carpenter, 203 Mich App 368 (extends absolute privilege to public officials communicating in furtherance of official duty to subordinate legislative/quasi‑legislative bodies)
- Oesterle v. Wallace, 272 Mich App 260 (statement absolutely privileged is nonactionable even if false and malicious)
- Couch v. Schultz, 193 Mich App 292 (discussion of absolutely privileged communications)
- Cuddington v. United Health Servs., Inc., 298 Mich App 264 (standard of review for MCR 2.116(C)(10))
