the Meisner Law Group v. Weston Downs Condominium Association
321 Mich. App. 702
| Mich. Ct. App. | 2017Background
- Meisner Law Group (plaintiff) provided legal advice to Weston Downs Condominium Association (defendant) under a general retainer (hourly) and proposed a separate, unsigned hybrid contingency retainer for a possible “major claim.”
- Plaintiff performed discrete work (research and a June 4, 2015 email responding to nine questions) and was paid $5,667 under the general retainer; plaintiff never invoiced for some requested work and the proposed hybrid retainer was never signed or funded.
- Defendant informed plaintiff (Aug. 11, 2015) it would not pursue litigation against the developer; the developer’s affidavit later confirmed no litigation or claim was filed.
- Plaintiff sued in circuit court asserting quantum meruit/unjust enrichment, breach of the general retainer, and fraudulent misrepresentation, alleging the amount in controversy exceeded $25,000.
- The circuit court granted summary disposition under MCR 2.116(C)(4), concluding the undisputed evidence showed plaintiff could not prove damages over $25,000, found the claims frivolous, and reserved attorney-fee sanctions for a later hearing.
- The Court of Appeals affirmed: subject-matter jurisdiction rested with the district court (≤ $25,000), plaintiff’s equitable-label argument failed, and the frivolous-claim finding and remand for a fee reasonableness hearing were upheld.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether circuit court had jurisdiction because plaintiff pleaded > $25,000 | Plaintiff alleged amount in controversy exceeds $25,000, so circuit court has jurisdiction | Documentary evidence showed plaintiff could not prove > $25,000; jurisdiction lies in district court | Court: On C(4), when evidence shows amount cannot exceed $25,000, circuit court lacks jurisdiction; dismissal proper |
| Whether Hodge (pleading controls amount) bars considering evidence on jurisdiction | Hodge means prayer controls amount in controversy, so complaint should govern | Hodge is limited; on a C(4) motion court must consider affidavits/docs; Hodge inapplicable where evidence shows claim cannot exceed limit | Court: Hodge does not bar consideration of submitted documentary evidence on a C(4) motion; undisputed facts defeated >$25,000 claim |
| Whether quantum meruit/unjust enrichment (equitable in nature) required filing in circuit court | Quantum meruit is equitable; thus district court lacks jurisdiction under MCL 600.8315 and case belongs in circuit court | Plaintiff sought only money damages; district court has exclusive jurisdiction when amount ≤ $25,000; MCL 600.8302 grants concurrent equitable jurisdiction to district court where provided | Court: Because plaintiff sought legal relief (money) and undisputed evidence showed amount ≤ $25,000, district court has exclusive jurisdiction; equitable label does not override statutory limits |
| Whether claims were frivolous and sanctions appropriate | Plaintiff contended claims were viable and dismissal premature | Defendant argued plaintiff had no reasonable factual basis and action was frivolous; sanctions authorized | Court: Finding of frivolous claim not clearly erroneous given lack of evidence and insufficient investigation; affirmed and remanded for fee hearing |
Key Cases Cited
- Hodge v. State Farm Mut. Auto. Ins. Co., 499 Mich 211 (Supreme Court) (plaintiff’s prayer controls district-court jurisdiction unless pleadings made in bad faith)
- Bowie v. Arder, 441 Mich 23 (Supreme Court) (circuit courts lack jurisdiction where statute grants exclusive jurisdiction to another court)
- Clohset v. No Name Corp., 302 Mich App 550 (Court of Appeals) (district court has exclusive jurisdiction for civil actions ≤ $25,000; §8302 grants concurrent jurisdiction in certain equitable matters)
- Island Lake Arbors Condo. Ass’n v. Meisner & Assoc. PC, 301 Mich App 384 (Court of Appeals) (quantum meruit applied to contingent-fee disputes where contract language and litigation/history supported recovery)