Chabad-Lubavitch v. Schuchman

853 N.W.2d 390, 305 Mich. App. 337
CourtMichigan Court of Appeals
DecidedMay 22, 2014
DocketDocket No. 312037
StatusPublished
Cited by5 cases

This text of 853 N.W.2d 390 (Chabad-Lubavitch v. Schuchman) 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
Chabad-Lubavitch v. Schuchman, 853 N.W.2d 390, 305 Mich. App. 337 (Mich. Ct. App. 2014).

Opinion

HOEKSTRA, J.

This case arises out of a property ownership dispute between plaintiff, Chabad-Lubavitch of Michigan,1 and defendants. The property at the center of the dispute is currently titled in the name of defendant Sara Tugman Bais Chabad Torah Center of West Bloomfield (hereafter “Bais Chabad”). Plaintiff maintains that defendants are part of the Chabad-Lubavitch religious hierarchy and that the property must be titled in its name pursuant to Chabad-Lubavitch religious doctrine and polity and the orders of several ecclesiastical bodies. Defendants argue that no religious or legal doctrine requires them to transfer the title of their property and the hierarchy does not control their financial or property interests. The parties also dispute whether the applicable periods of limitations have expired. Plaintiff appeals the trial court’s order granting summary disposition in favor of defendants and denying its motion for summary disposition. Plaintiff asks this Court to reverse the trial court and order the transfer of the property to its name consistently with the orders of the Chabad-Lubavitch hierarchy. Because we conclude that the applicable periods of limitations were tolled during the ecclesiastical dispute resolution proceedings and because there are genuine issues of material fact, we reverse the trial court’s order granting summary disposition in favor of defendants and remand for further proceedings consistent with this opinion.

There are two pieces of property at issue. The first parcel was acquired by Bais Chabad in 1984 and is [342]*342located at 5595 Maple in West Bloomfield. Bais Chabad built its house of worship, which it continues to operate, on this property. In 1994, Bais Chabad acquired real property located at 6624 Tamerlane in West Bloomfield. This property is an outlot near the first property that provides a walkway to access the adjacent neighborhood. The first dispute regarding the property occurred in 1995, when defendant Rabbi Elimelech Silberberg instituted judicial proceedings before a two-person rabbinic panel regarding complaints he had about Rabbi Berel Shemtov, who is the head Chabad-Lubavitch rabbi in Michigan. After Silberberg began rabbinic proceedings, Shemtov raised countercomplaints within the rabbinic proceeding regarding Silberberg, including the fact that the property was titled in Bais Chabad’s name, and not in the name of Chabad-Lubavitch of Michigan. Plaintiff maintains that Chabad-Lubavitch doctrine and polity require all subordinate congregations to title property in the name of a higher authority within the religious hierarchy. Defendants disagree.

The parties do not dispute that Chabad-Lubavitch religious doctrine and polity require internal dispute resolution by means of one of various rabbinic judicial panels or courts. Permission to file a lawsuit in a civil, secular court is required before a dispute may be taken outside the religious organization. There have been five different ecclesiastical decisions made by various panels regarding the property disputes in this case. All five decisions concluded that the property at issue should be titled in plaintiffs name and that transfer of the property’s title should be undertaken as soon as possible. Defendants have refused to comply with these directives, maintaining their right to independent property ownership.

[343]*343Plaintiff received permission to file a civil lawsuit on December 24, 2009, and on April 17, 2012, plaintiff filed the instant lawsuit. In response, defendants moved for summary disposition pursuant to MCR 2.116(C)(7), (8), and (10). Thereafter, plaintiff moved for summary disposition under MCR 2.116(C)(10). The trial court held a hearing on the competing motions, and following arguments by both parties, issued its opinion on the record. The trial court denied plaintiffs motion for summary disposition, granted defendants’ motion in its entirety, and dismissed the case. Plaintiff now appeals as of right.

I. STATUTES OF LIMITATIONS

We first address plaintiffs argument that the trial court erred by granting summary disposition under MCR 2.116(C)(7) on the basis of its conclusion that the applicable statutes of limitations barred plaintiffs claims.

We review de novo a trial court’s decision on a motion for summary disposition. Coblentz v City of Novi, 475 Mich 558, 567; 719 NW2d 73 (2006). Under MCR 2.116(C)(7), summary disposition is appropriate if a claim is barred because of the applicable statute of limitations. A motion under MCR 2.116(C)(7) may be supported by affidavits, depositions, admissions, or other documentary evidence as long as the evidence would be admissible. Maiden v Rozwood, 461 Mich 109, 119; 597 NW2d 817 (1999). The allegations set forth in the complaint must be accepted as true unless contradicted by other evidence. Id. “[T]he trial court must accept the nonmoving party’s well-pleaded allegations as true and construe the allegations in the nonmovant’s favor to determine whether any factual development could provide a basis for recovery.” Hoffman v Boonsiri, [344]*344290 Mich App 34, 39; 801 NW2d 385 (2010). Whether an action is barred by a statute of limitations is a question of law reviewed de novo. Joliet v Pitoniak, 475 Mich 30, 35; 715 NW2d 60 (2006).

Resolution of this issue requires us to determine when plaintiffs claims accrued. Under MCL 600.5827, the period of limitations runs from the time the claim accrues, and “the claim accrues at the time the wrong upon which the claim is based was done regardless of the time when damage results.” However, the doctrine of equitable tolling can alter the accrual date. See, e.g., Trentadue v Buckler Automatic Lawn Sprinkler Co, 479 Mich 378, 405-406; 738 NW2d 664 (2007). At issue here is whether, under the circumstances in this case, the applicable limitations periods were equitably tolled while the parties were engaged in ecclesiastical dispute resolution proceedings.

The doctrine of equitable tolling has been recognized by Michigan courts; however it has a limited application. See, e.g., id.; Devillers v Auto Club Ins Ass’n, 473 Mich 562, 590 n 65; 702 NW2d 539 (2005). Nevertheless, in AFSCME v Highland Park Bd of Ed, 457 Mich 74, 82; 577 NW2d 79 (1998) (opinion by CAVANAGH, J.), the Court considered whether the applicable period of limitations was tolled when the parties negotiated a dispute resolution agreement that provided for a mandatory grievance procedure ending with nonbinding arbitration. The lead opinion noted that caselaw favors exhaustion of grievance procedures before filing suit. Id. at 83. Ultimately, the Court held that when grievance procedures are mandatory, the applicable period of limitations is tolled during the exhaustion of the mandatory procedure. Id. at 90.

In this case, plaintiff specifically argues that even if the applicable periods of limitations expired before the [345]*345filing of its lawsuit, the running of the periods of limitations was tolled by the ecclesiastical dispute resolution proceedings because Chabad-Lubavitch’s polity requires express permission before a lawsuit may be filed in a secular court. Moreover, it maintains that application of the First Amendment’s guarantees precludes the enforcement of the statutes of limitations without considering Chabad-Lubavitch’s own process for resolution of ecclesiastical disputes.

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Bluebook (online)
853 N.W.2d 390, 305 Mich. App. 337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chabad-lubavitch-v-schuchman-michctapp-2014.