Lech v. Huntmore Estates Condominium Association
310 Mich. App. 258
| Mich. Ct. App. | 2015Background
- Lech sued the developers and Huntmore Estates Condominium Ass’n in Dec 2008 for slander of title, violation of the Michigan Condominium Act, and tortious interference.
- On June 10, 2009, the developers offered judgment for $5,000; Lech did not respond within 21 days, effectively rejecting the offer.
- The trial court granted summary disposition and awarded the developers attorney fees under MCR 2.405 for Lech’s rejection of the offer.
- On appeal, the Court remanded to reconsider sanctions; on remand the parties reduced the sanctions to $36,337.90 but disputed appellate costs and judgment interest.
- The trial court ruled appellate attorney fees were not recoverable and awarded $5,230.16 in judgment interest under MCL 600.6013; the court of appeals affirmed in part and reversed in part.
- The appellate decision holds that appellate costs are not “actual costs” under MCR 2.405, and that judgment interest under MCL 600.6013 does not apply to sanctions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appellate costs are recoverable under MCR 2.405 when an offer of judgment is rejected | Lech argues appellate costs are not actual costs | Developers contend appellate costs are recoverable | Appellate costs are not recoverable as actual costs under MCR 2.405 |
| Whether the sanctions award may include appellate attorney fees under MCR 2.405 | Lech sides with no appellate attorney fees | Developers argue appellate fees are included | No, appellate fees are not recoverable under MCR 2.405 |
| Whether judgment interest under MCL 600.6013 applies to sanctions | Sanctions are not money judgments and thus not subject to interest | Interest should accrue on sanctions under MCL 600.6013 | Sanctions are not money judgments; interest improper under MCL 600.6013 |
| Whether the sanctions award should be affirmed in part and reversed in part | Affirm in part, reverse in part; no prevailing party for costs |
Key Cases Cited
- Haliw v. Sterling Heights, 471 Mich 700 (2005) (actual costs not including appellate fees under case evaluation sanctions)
- Lech v Huntmore Estates Condo Ass’n, 491 Mich 937 (2012) (remand on sanctions; determining scope of sanctions and related fees)
- Forfeiture of $176,598, 465 Mich 382 (2001) (judgment interest as not a money judgment; defines money judgment scope)
- Fraser Trebilcock Davis & Dunlap PC v. Boyce Trust, 304 Mich App 174 (2014) (sanctions proceedings; post-judgment collection)