20241119_C367900_43_367900.Opn.Pdf

CourtMichigan Court of Appeals
DecidedNovember 19, 2024
Docket20241119
StatusUnpublished

This text of 20241119_C367900_43_367900.Opn.Pdf (20241119_C367900_43_367900.Opn.Pdf) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
20241119_C367900_43_367900.Opn.Pdf, (Mich. Ct. App. 2024).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

KENDALL WILLIAMS and THE WILLIAMS UNPUBLISHED FIRM PC, November 19, 2024 1:39 PM Plaintiffs-Appellants,

v No. 367900 Genesee Circuit Court CHA’RIS LEE and LEE LEGAL GROUP PLLC, LC No. 22-116674-CZ

Defendants-Appellees.

Before: MALDONADO, P.J., and M. J. KELLY and GARRETT, JJ.

PER CURIAM.

In this defamation action, plaintiffs, Kendall Williams and The Williams Firm, PC, appeal as of right the trial court’s order granting defendants, Cha’ris Lee and Lee Legal Group, PLLC, summary disposition under MCR 2.116(C)(8). For the reasons stated in this opinion, we reverse and remand for further proceedings.

I. BASIC FACTS

Plaintiffs provided legal representation to the Flint Board of Education (FBOE) and Flint Community Schools (FCS) for over twenty years. During that time, plaintiffs “essentially performed” the duties of general counsel for FCS and board counsel for FBOE. They provided monthly billing statements for the legal services provided. Plaintiffs contend that, during the past ten years, they had not received any correspondence disputing or questioning their billing statements, which they described as “transparent, honest billing statements.” They also asserted that they always informed the FBOE “of the nature and extent of the legal services” that they provided to FCS.

At some point, plaintiffs stopped representing FBOE and FCS. Thereafter, FBOE and FCS retained defendants as legal counsel. In their complaint, plaintiffs alleged that defendants “published falsehoods” about them, “accusing [them] of being, in essence, crooked and thieving lawyers, double-billers, and attorneys who steal money from their clients and engage in moral turpitude” and that stating that they cheated FCS “out of money,” which deprived “the children/students of funds for their education.” Specifically, plaintiffs alleged that defendants

-1- made such defamatory statements to a reporter before September 2021, at a duly convened meeting of the FBOE held on October 13, 2021, and to reporters sometime after the board meeting. They alleged that, at the board meeting, Lee stated that she was investigating allegations that plaintiffs had charged FCS exorbitant legal fees for years, that his billing statements reflected excessive staffing, unnecessary work, conflicts of interest, double-billing, and the likely breach of plaintiffs’ fiduciary duties. Lee added that, although the “average” lawyer for a school district would typically bill “maybe $120,000 per year,” plaintiffs billed FCS an average of $750,000 per year, with the legal bill sometimes as high as $1,000,000 per year. She also suggested that Williams had colluded with former board members in order to continue excessively billing FCS and that he would retaliate against anyone who questioned plaintiffs’ legal fees. Plaintiffs contended that the above statements were false, that Lee knew that they were false when she made them, and that she entertained serious doubts as to their truthfulness when she made them. Plaintiffs also stated that Lee had an “ulterior motive” for making the defamatory statements, but did not identify that motive in their complaint.

Based upon Lee’s recommendation at the school board meeting, the FBOE voted unanimously in favor of hiring Plante Moran to perform a forensic investigation of plaintiffs’ legal bills and of filing a complaint against plaintiffs with the Attorney Grievance Commission. Following the board meeting, Lee’s comments were quoted by newspaper reporters in articles published October 14, 2021 and October 15, 2021. Plaintiffs also alleged that Lee repeated the above statements to newspaper and television reporters. On October 25, 2021, plaintiffs demanded that defendants issue a retraction letter; however, no retraction was issued.

Thereafter, plaintiffs filed a three-count complaint, alleging defamation, intentional infliction of emotional distress, and invasion of privacy—false light. In lieu of filing an answer, defendants filed a motion for summary disposition under MCR 2.116(C)(8). Defendants argued that the absolute privilege applicable to allegedly defamatory statements made during quasi- legislative proceedings applies to the statements identified in plaintiffs’ complaint. More specifically, defendants contended that Lee made the statements “as a public official while carrying out her official duties, in a quasi-legislative setting, and regarding a matter of public concern.” Alternatively, defendants asserted that Lee’s statements were protected by qualified privilege and that plaintiffs could not overcome the qualified privilege because they could not show that the statements were made with actual malice.

In response, plaintiffs argued that absolute immunity did not apply to defendants because it only applied to “a judge judging, a prosecutor prosecuting,” and a legislator’s passing a law or budget. Plaintiffs stated that neither Lee nor the FBOE were engaged in a “legislative act” when Lee made her statements at the meeting. Instead, Lee was speaking regarding her investigation, which is an investigative function for which there is no absolute privilege. Moreover, plaintiffs pointed out that Lee “is simply a private attorney elected to no office whatsoever.” Moreover, plaintiffs argued that even if Lee’s comments at the meeting were privileged, defendants were not entitled to absolute immunity for the defamatory statements that they made to newspaper and television reporters before and after the meeting. Plaintiffs stated their belief that the allegations in the complaint were sufficient, but indicated their intent to amend should the pleadings need “clarification or amplification.”

-2- In their reply brief, defendants asserted that absolute privilege applied because Lee made the statements at the FBOE meeting “in her official role as counsel to the FBOE, while carrying out her official duties, and most importantly, they were made regarding an ongoing investigation into the legal fees charged to a public school district,” which was an unresolved public matter.

At a hearing on the motion, the parties argued consistently with their briefs. Additionally, plaintiffs noted that they had “an absolute right to amend” their complaint if they had “to plead evidence” in support of their allegations. Approximately 17 months after the hearing, the trial court entered a written opinion and order granting summary disposition under MCR 2.116(C)(8). The court reasoned that the allegedly defamatory statements that Lee made at the board meeting and that were repeated in newspaper articles were protected by the absolute privilege doctrine. Further, with regard to the statements made outside the board meeting, the court determined that “the allegations stated in Plaintiffs’ complaint do not support a finding that a rational finder of fact would find actual malice by clear and convincing evidence.” This appeal follows.

II. SUMMARY DISPOSITION

A. STANDARD OF REVIEW

Plaintiffs argue that the trial court erred by granting defendants’ motion for summary disposition under MCR 2.116(C)(8). We review de novo a trial court’s decision on a motion for summary disposition. Barnard Mfg Co, Inc v Gates Performance Engineering, Inc, 285 Mich App 362, 369; 775 NW2d 618 (2009). “A motion under MCR 2.116(C)(8) tests the legal sufficiency of the complaint. All well-pleaded factual allegations are accepted as true and construed in a light most favorable to the nonmovant.” Maiden v Rozwood, 461 Mich 109, 119; 597 NW2d 817 (1999). “When deciding a motion brought under this section, a court considers only the pleadings.” Id. at 119-120.

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20241119_C367900_43_367900.Opn.Pdf, Counsel Stack Legal Research, https://law.counselstack.com/opinion/20241119_c367900_43_367900opnpdf-michctapp-2024.