Coeus LLC v. City of Walled Lake

CourtMichigan Court of Appeals
DecidedJanuary 20, 2022
Docket353844
StatusUnpublished

This text of Coeus LLC v. City of Walled Lake (Coeus LLC v. City of Walled Lake) 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
Coeus LLC v. City of Walled Lake, (Mich. Ct. App. 2022).

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

COEUS, LLC, UNPUBLISHED January 20, 2022 Plaintiff/Counterdefendant-Appellant,

v No. 353844 Oakland Circuit Court CITY OF WALLED LAKE, LINDA S. ACKLEY, LC No. 2018-170030-CZ L. DENNIS WHITT, CHELSEA PESTA, and JENNIFER A. STUART,

Defendants-Appellees,

and

JOHN AND JANE DOES 1 THROUGH 20, FRANK MARRA, and MATTHEW CECCHETTI,

Defendants,

CUSTOM BUILT PROPERTIES, LLC, doing business as GREEN HOUSE OF WALLED LAKE, and JERRY MILLEN,

Defendants/Counterplaintiffs.

Before: GADOLA, P.J., and MARKEY and MURRAY, JJ.

PER CURIAM.

-1- Plaintiff, COEUS, LLC, appeals as of right the trial court’s stipulated order of dismissal.1 On appeal, plaintiff challenges the trial court’s earlier opinion and order granting summary disposition in favor of defendants city of Walled Lake, Mayor Linda S. Ackley, City Manager L. Dennis Whitt, City Development Manager Chelsea Pesta, and City Clerk Jennifer A. Stuart (collectively, “the city defendants”). On appeal, plaintiff argues that the city defendants are not entitled to governmental immunity and that its claims alleging a violation of due process and promissory estoppel were legally sufficient. We affirm.

This case arises from the city of Walled Lake’s implementation, under the authority of the Medical Marihuana Facilities Licensing Act (MMFLA), MCL 333.27101 et seq., of its medical marijuana facilities licensing ordinance and plaintiff’s subsequent application for a license to operate a provisioning center. The ordinance specifies that there are to be three licenses for provisioning centers, with two located in the C-2 zoning district and one located in the C-3 zoning district. Walled Lake Ordinance C-334-17, § 6b, enacting § 21.49(b) of the Zoning Ordinance. Subsequently, the city passed Resolution 2018-10, which established administrative rules for processing MMFLA permit applications.

After submitting applications to the city, plaintiff attempted numerous times to obtain status updates. In response to plaintiff’s repeated phone calls, the city informed plaintiff that no action had been taken on any of the applications, no permits had been issued, and no meetings had been held addressing any of the applications. Plaintiff alleged that contrary to the city’s claims that no MMFLA licenses had been issued, it was evident that the city had issued a license to defendant Green House of Walled Lake. Ultimately, plaintiff was advised that its request for the C-3 license was denied.

In its second amended complaint, plaintiff alleged the following counts against the city defendants: fraudulent misrepresentation (Count II); silent fraud (Count III); negligent misrepresentation (Count IV); unjust enrichment (against the city of Walled Lake only) (Count V); breach of an implied contract (Count VI); promissory estoppel (Count VII); violation of due process and equal protection (Count VIII); civil conspiracy (Count IX); injunctive relief (Count X); and gross negligence (Count XI).

The city defendants thereafter moved for summary disposition under MCR 2.116(C)(7), arguing that they were entitled to governmental immunity with respect to the alleged torts, and under MCR 2.116(C)(8) on plaintiff’s due-process and promissory-estoppel claims. In a thorough opinion and order, the trial court granted the motion and dismissed all claims against the city defendants.

I. GOVERNMENTAL IMMUNITY

This Court reviews de novo a trial court’s decision on a motion for summary disposition, Odom v Wayne Co, 482 Mich 459, 466; 760 NW2d 217 (2008), as well as issues involving

1 That order dismissed with prejudice plaintiff’s claims against defendants Custom Built Properties, LLC, Jerry Millen, Frank Marra, and Matthew Cecchetti. The order also dismissed the counterclaims brought by Custom Built and Millen against plaintiff.

-2- questions of law, such as the construction and interpretation of a city charter or ordinance. Oakland Co Bd of Co Rd Comm’rs v Mich Prop & Cas Guaranty Ass’n, 456 Mich 590, 610; 575 NW2d 751 (1998); Ferguson v City of Lincoln Park, 264 Mich App 93, 95; 694 NW2d 61 (2004).

A party is entitled to summary disposition under MCR 2.116(C)(7) if, among other things, the plaintiff’s claims are “barred because of immunity granted by law.” When considering a motion brought under this subrule, the court considers all the affidavits, depositions, admissions, or other documentary evidence submitted by the parties. MCR 2.116(G)(5). “The contents of the complaint are accepted as true unless contradicted by the evidence provided.” Odom, 482 Mich at 466 (quotation marks and citation omitted).

A. CITY OF WALLED LAKE

The governmental tort liability act (GTLA), MCL 691.1401 et seq., provides that “a governmental agency is immune from tort liability if the governmental agency is engaged in the exercise or discharge of a governmental function.”2 MCL 691.1407(1); see also Genesee Co Drain Comm’r v Genesee Co, 309 Mich App 317, 326-327; 869 NW2d 635 (2015). While there are six statutory exceptions to this broad grant of immunity, plaintiff did not allege that any applied.3 Thus, as the trial court noted, the only question is whether the city was engaged in a governmental function.

The GTLA defines “governmental function” as “an activity that is expressly or impliedly mandated or authorized by constitution, statute, local charter or ordinance, or other law.” MCL 691.1401(b). Conversely, when “a governmental agency engages in an activity which is not expressly or impliedly mandated or authorized by constitution, statute, or other law (i.e., an ultra vires activity), it is not engaging in the exercise or discharge of a governmental function” and “is therefore liable for any injuries or damages incurred as a result of its tortious conduct.” Ross v Consumers Power Co (On Rehearing), 420 Mich 567, 620; 363 NW2d 641 (1984). However, when determining whether an act is a “governmental function” or merely an ultra vires act, courts are to “ ‘look to the general activity involved rather than the specific conduct engaged in when the alleged injury occurred.’ ” Genesee Co Drain Comm’r, 309 Mich App at 327, quoting Ward v Mich State Univ (On Remand), 287 Mich App 76, 84; 782 NW2d 514 (2010).

Although plaintiff alleges that the city engaged in fraudulent and corrupt acts, its focus is too narrow. In this instance, the general activity in which the city had been engaged was the implementation and adoption of its medical marijuana facilities licensing ordinance and the

2 There is no dispute that the city of Walled Lake is a “governmental agency” as defined by the GTLA. See MCL 691.1401(a), (d), and (e). 3 “The six statutory exceptions are: the highway exception, MCL 619.1402; the motor-vehicle exception, MCL 691.1405; the public-building exception, MCL 691.1406; the proprietary- function exception, MCL 691.1413; the governmental-hospital exception, MCL 691.1407(4); and the sewage-disposal-system-event exception, MCL 691.1417(2) and (3).” Wesche v Mecosta Co Rd Comm, 480 Mich 75, 84 n 10; 746 NW2d 847 (2008).

-3- processing of applications for a license. The implementation of the ordinance was expressly authorized by the MMFLA, and the processing of applications for licenses was authorized by the city’s ordinance. Therefore, the city was engaged in a governmental function, and accordingly, it is immune from tort liability. Thus, the trial court did not err by granting summary disposition to the city on this ground.4

B. CITY DEVELOPMENT MANAGER PESTA AND CITY CLERK STUART

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Yazoo & Mississippi Valley Railroad v. Thomas
132 U.S. 174 (Supreme Court, 1889)
Odom v. Wayne County
760 N.W.2d 217 (Michigan Supreme Court, 2008)
National Pride at Work, Inc v. Governor
748 N.W.2d 524 (Michigan Supreme Court, 2008)
Studier v. Michigan Public School Employees' Retirement Board
698 N.W.2d 350 (Michigan Supreme Court, 2005)
Quality Products and Concepts Co. v. Nagel Precision, Inc.
666 N.W.2d 251 (Michigan Supreme Court, 2003)
Beaudrie v. Henderson
631 N.W.2d 308 (Michigan Supreme Court, 2001)
Hinky Dinky Supermarket, Inc. v. DEPT. OF COMMUNITY HEALTH
683 N.W.2d 759 (Michigan Court of Appeals, 2004)
McMath v. Ford Motor Co.
259 N.W.2d 140 (Michigan Court of Appeals, 1977)
Rental Property Owners Ass'n v. City of Grand Rapids
566 N.W.2d 514 (Michigan Supreme Court, 1997)
Bundo v. City of Walled Lake
238 N.W.2d 154 (Michigan Supreme Court, 1976)
Bisco’s, Inc v. Liquor Control Commission
238 N.W.2d 166 (Michigan Supreme Court, 1976)
King v. Ford Motor Credit Co.
668 N.W.2d 357 (Michigan Court of Appeals, 2003)
State Bank of Standish v. Curry
500 N.W.2d 104 (Michigan Supreme Court, 1993)
Oakland County Board v. Michigan Property & Casualty Guaranty Ass'n
575 N.W.2d 751 (Michigan Supreme Court, 1998)
Wong v. City of Riverview
337 N.W.2d 589 (Michigan Court of Appeals, 1983)
American Transmissions, Inc v. Attorney General
560 N.W.2d 50 (Michigan Supreme Court, 1997)
Chivas v. Koehler
453 N.W.2d 264 (Michigan Court of Appeals, 1990)
Kloian v. Domino's Pizza, LLC
733 N.W.2d 766 (Michigan Court of Appeals, 2007)
Gracey v. Wayne County Clerk
540 N.W.2d 710 (Michigan Court of Appeals, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
Coeus LLC v. City of Walled Lake, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coeus-llc-v-city-of-walled-lake-michctapp-2022.