Cambridge Real Estate LLC v. the Cincinnati Insurance Company

CourtMichigan Court of Appeals
DecidedNovember 13, 2025
Docket369018
StatusUnpublished

This text of Cambridge Real Estate LLC v. the Cincinnati Insurance Company (Cambridge Real Estate LLC v. the Cincinnati Insurance Company) 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
Cambridge Real Estate LLC v. the Cincinnati Insurance Company, (Mich. Ct. App. 2025).

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

CAMBRIDGE REAL ESTATE, LLC, and UNPUBLISHED MICHAEL HAMAME November 13, 2025 10:31 AM Plaintiffs-Appellees,

v No. 369018 Wayne Circuit Court THE CINCINNATI INSURANCE COMPANY, LC No. 19-010015-CB

Defendant-Appellant, and

IAQ MANAGEMENT SERVICES, INC.,

Defendant.

No. 369081 CAMBRIDGE REAL ESTATE, LLC, and Wayne Circuit Court MICHAEL HAMAME, LC No. 19-010015-CB

Plaintiffs-Appellees,

v No.

IAQ MANAGEMENT SERVICES, INC, LC No.

THE CINCINNATI INSURANCE COMPANY,

Before: REDFORD, P.J., and FEENEY and BAZZI, JJ.

PER CURIAM.

-1- In this consolidated appeal, defendants-appellants, the Cincinnati Insurance Company (“Cincinnati”) and IAQ Management Services, Inc (“IAQ”), appeal by leave granted the trial court order denying defendants’ various motions for summary disposition.1 Among those motions for summary disposition, both defendants argued they were entitled to dismissal of plaintiffs’ claims under MCR 2.116(C)(7) on the basis of release. We agree. Therefore, we reverse the trial court’s order denying summary disposition in defendants’ favor and remand for entry of an order dismissing plaintiffs’ complaint.

I. BASIC FACTS

In July 2019, plaintiffs-appellees, Michael Hamame and Cambridge Real Estate, LLC (“Cambridge”), filed a complaint against defendants, alleging claims of tortious interference with a contract, tortious interference with a business expectancy, and civil conspiracy. Plaintiffs’ claims stem from defendants’ handling of a water-loss insurance claim at a building owned by nonparty Village Plaza Holdings, LLC (“Village Plaza”).

Village Plaza, a holding company whose sole member is Sam Hamame,2 owned a commercial property (“the Property”) located in Dearborn, Michigan. The Property consists of a 300,000 square foot commercial high-rise building that was leased out for office and retail tenants. Village Plaza insured the Property through Cincinnati. The policy included property coverage, commercial general liability coverage, and an endorsement that provided coverage for business interruption and extra expense.

Cambridge is a holding company whose sole member is Michael. Cambridge had a contract with Village Plaza to manage the Property, which included leasing the property, handling landlord/tenant disputes, and hiring maintenance. Cambridge also had a development agreement with Village Plaza to redevelop the Property into a mixed-use enterprise.

In January 2018, a water pipe burst and caused significant water damage to the building. Michael handled the insurance claim on behalf of Village Plaza, which included acting as the point of contact with Cincinnati, hiring contractors, and hiring a public adjuster to assist in the claim. Shortly after the water loss occurred, a contractor hired by Michael and Cambridge to mitigate the water damage cut into wet drywall without testing for the presence of asbestos. Mitigation efforts ceased, and Cincinnati hired IAQ, an industrial hygienist consulting company, to test for possible asbestos exposure. IAQ’s initial testing confirmed the presence of asbestos. Thereafter, IAQ was retained by Cincinnati to conduct further testing and to develop a safety protocol for removing the asbestos.

1 Cambridge Real Estate, LLC v The Cincinnati Ins Co, unpublished order of the Court of Appeals, entered January 10, 2024 (Docket No. 369018); Cambridge Real Estate, LLC v The Cincinnati Ins Co, unpublished order of the Court of Appeals, entered January 10, 2024 (Docket No. 369081). 2 Sam Hamame is Michael Hamame’s father. For clarity, we refer to both of these individuals by their first name throughout this opinion.

-2- In February 2018, Michael, acting on behalf of Village Plaza, sent letters to the Property’s tenants informing them that their leases had been terminated. The letter explained that the building’s heating, cooling, and water system needed to be suspended for at least 120 days to clean areas affected by asbestos and to avoid the possible spread of asbestos into occupied spaces. Although Village Plaza terminated the leases, several tenants remained on the premises at least through May 2018. During this time, mitigation efforts were halted and IAQ did not complete testing or develop the safety protocol.

Ultimately, mitigation efforts at the building remained stalled, and Cincinnati did not adjust the claim. There was a disagreement regarding the amount of loss sustained. Michael, acting on behalf of Village Plaza, negotiated a Settlement Agreement and Release with Cincinnati. On July 12, 2018, Village Plaza and Cincinnati entered into the Settlement Agreement and Release “to avoid the expense and disruption potentially arising out of their disagreement and to avoid any possible litigation related to the Claim and Village Plaza’s request for coverage of the Policy.” In exchange for $8.95 million (in addition to the amount Cincinnati had already paid to Village Plaza during adjustment of the claim), the parties agreed to enter a release of liability.3

The document provided, in relevant part:

As part of the consideration to Cincinnati for the Settlement Amount, Village Plaza for itself and each of its officers, directors, owners, partners, members, stockholders, employees, principals, agents, attorneys, controlling persons, insurers, reinsurers, parent companies, subsidiaries, affiliates, heirs, successors, and assigns (collectively hereinafter the “Releasors”) agree to forever release and discharge Cincinnati and its respective officers, directors, owners, partners, members, stockholders, employees, principals, agents, attorneys, controlling persons, insurers, reinsurers, parent companies, subsidiaries, affiliates, heirs, successors, and assigns (collectively hereinafter the “Releasees”) from any and all claims, demands, liabilities, obligations, losses, damages, and causes of action that the Releasors, or anyone claiming on their behalf, ever had, now have, or in the future may have, whether fixed or contingent, liquidated or not, known or unknown, suspected or unsuspected, based on, arising out of, or directly or indirectly relating to: the Claim; any claims for insurance coverage that Village Plaza has asserted or could have asserted with respect to the Claim; damage to the Building, including but not limited to repair costs, asbestos investigation or asbestos remediation, and claims under the property coverage of the Policy for lost rental or other income or any expense whatsoever related to the Claim or damage to the building. The types of claims released herein include, but are not limited to, claims for: insurance coverage; damages under Michigan statutes and Michigan common law; injunctive relief; common law and statutory bad faith; attorneys fees; equitable contribution; equitable subrogation; insurance benefits; unfair trade practices; and any form or theory of recovery, or cause of action whatsoever based in tort, contract, or otherwise. It is expressly understood and agreed, however, that

3 The total amount paid to Village Plaza by Cincinnati with the release was $9,965,687.50.

-3- this Paragraph 2 does not apply to any claims or damages related to the liability insurance coverage portion of the Policy. [Emphasis added.]

Sam, on behalf of Village Plaza, and Cincinnati signed the Settlement Agreement and Release. Plaintiffs did not sign it.

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Cite This Page — Counsel Stack

Bluebook (online)
Cambridge Real Estate LLC v. the Cincinnati Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cambridge-real-estate-llc-v-the-cincinnati-insurance-company-michctapp-2025.