Coblentz v. City of Novi

719 N.W.2d 73, 475 Mich. 558
Michigan Supreme Court·Decided July 19, 2006·No. Docket 127715·Published·Cited by 139 cases

Opinions

KELLY, J.

This case asks us to determine if the trial court appropriately found requested documents exempt from disclosure under the Freedom of Information Act (FOIA), MCL 15.231 et seq. We address also whether it was appropriate for defendant to charge fees to plaintiffs for the work of defendant’s attorney in retrieving and separating documents plaintiffs sought under the act.

This case revolves around an underlying settlement agreement between defendant and a third party. Plaintiffs filed a FOIA request for documents associated with the agreement. Requested were “site plans” and “global readings” on real property, all exhibits to the agreement, including certain exhibits listed as intentionally deleted, and side agreements or letters related to the agreement.

The Court of Appeals affirmed the trial court’s decision that the requested documents were exempt from disclosure. Coblentz v Novi, 264 Mich App 450; 691 NW2d 22 (2004). We affirm in part and reverse in part that decision. We conclude that the Court of Appeals appropriately affirmed the grant of summary disposition to defendant on plaintiffs’ request for “site plans” and “global readings.” But the Court of Appeals erred in affirming summary disposition regarding the request for all exhibits to the underlying settlement agreement, including the intentionally deleted exhibits. These exhibits were not exempt from disclosure and were sufficiently identified in the FOIA request.

The Court of Appeals also erred in affirming summary disposition for defendant on the requested “side agreements” to the settlement agreement. These items [562] were not exempt because defendant failed to comply with MCL 15.243(l)(f)(iii). Finally, the Court of Appeals erred in finding appropriate the fees that defendant charged for its attorney’s work in separating documents. The attorney in question was not an employee of defendant. Therefore, we remand this case to the trial court for entry of a judgment compelling disclosure consistent with this opinion.

I. RELEVANT FACTUAL AND PROCEDURAL HISTORY

In a separate civil action against defendant, Sandstone Associates Limited Partnership-A (Sandstone) obtained a judgment that totaled tens of millions of dollars, including costs, interest, and attorney fees. Sandstone and defendant then entered into an agreement in which defendant waived its appellate rights and Sandstone received real property rather than the money judgment. The major component of the agreement called for defendant to turn over 75 “net usable” acres to Sandstone for development.

The property had previously been set aside as parkland. It is adjacent to property owned by plaintiffs. Some of the property carried deed restrictions, including possible reciprocal negative easements.1 Plaintiffs’ properties contained the same deed restrictions. The [563] settlement agreement required defendant to arrange for the removal of the deed restrictions on its property and on plaintiffs’ property. It was agreed that, if defendant failed, it would convey additional property to Sandstone. In an effort to remove the restrictions, defendant contacted plaintiffs.

Plaintiffs retained counsel who filed a FOIA request with defendant, seeking:

1. All exhibits, including but not limited to exhibits G, T, U, V, W, AA, BB, GG, MM, NN, PB for the Agreement for Entry of Consent Judgment dated June 25, 2002 between Sandstone and the City of Novi;
2. Any and all site plans for Sandstone regarding the 75 dedicated acres; and....

Defendant’s attorney responded to these requests by writing:

1. Exhibits G, T, U, V, W, AA, BB, GG, MM, NN, PP: I have advised you by phone and letter that there are no such exhibits. The reference in the index, indicating that they were intentionally deleted, is merely to clarify for the reader that such exhibits have not been lost or detached from the Agreement. These exhibits do not exist, and never existed.
2. Site Plan: I have also advised you by phone and letter that a site plan or concept plan for the 75 acres does not exist. It has never existed. I do not know how [to] provide any further explanation.

Plaintiffs then informally requested all side agreements to the Sandstone settlement agreement and the “global readings.” Defendant’s attorney responded that he did not know what “global” meant. With regard to the side agreements, he stated that he assumed that [564] this meant the “side letters” to the Sandstone agreement. He indicated that he was attempting to learn from Sandstone’s counsel which of the side letters were submitted with an understanding of confidentiality.

Plaintiffs next filed a second FOIA request. Among the items sought were:

1. Any and all side agreements entered into between the City of Novi and Sandstone and/or its attorneys or representatives;
2. Global readings on “extra land”; global positioning satellite (GPS) readings on “extra land”;
3. Settlement agreements, releases, copies of drafts in settlement of the insurance cases relating to this property!;.]

After plaintiffs’ second FOIA request, defendant began to negotiate with Sandstone for release of the side agreements. Sandstone initially stated that none could be released, but later agreed to release five of the seven side letters.

In response to this FOIA request, defendant told plaintiffs that global or GPS readings did not exist. It also refused to release the two remaining side agreements, stating:

The request is denied with regard to two documents representing commercial and/or financial information voluntarily submitted to the City of Novi for use in developing governmental policy... as contemplated and required under MCL 15.243(g) [sic, (l)(f)].

Plaintiffs filed a complaint in the circuit court seeking production of all intentionally deleted exhibits. Plaintiffs claimed that they had located one of the exhibits, exhibit AA, despite the fact that defendant [565] contended that it never existed. They also asked the court to order production of global readings, site plans, and all side agreements.

Defendant filed a motion for summary disposition before the close of discovery. Attached was an affidavit from its mayor, Richard Clark. Clark stated that, as of the date of the affidavit, Sandstone had submitted no site plans for the 75 acres. He also affirmed that no “global readings” or GPS readings existed in connection with the Sandstone settlement agreement. Plaintiffs responded, but did not attach any documentary evidence rebutting Clark’s affidavit.

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Coblentz v. City of Novi, 719 N.W.2d 73, 475 Mich. 558 (Mich. 2006).

719 N.W.2d 73 (Coblentz v. City of Novi) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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