David Taylor v. David Kallman

CourtMichigan Court of Appeals
DecidedJune 13, 2019
Docket344163
StatusUnpublished

This text of David Taylor v. David Kallman (David Taylor v. David Kallman) 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
David Taylor v. David Kallman, (Mich. Ct. App. 2019).

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

DAVID TAYLOR, UNPUBLISHED June 13, 2019 Plaintiff-Appellant,

v No. 344163 Eaton Circuit Court DAVID KALLMAN and KALLMAN LEGAL LC No. 2017-000272-NM GROUP PLLC,

Defendants-Appellees.

Before: METER, P.J., and JANSEN and M. J. KELLY, JJ.

PER CURIAM.

In this legal malpractice suit, plaintiff, David Taylor, appeals by right the trial court order granting defendants David Kallman and Kallman Legal Group PLLC summary disposition under MCR 2.116(C)(10). We affirm for the reasons stated in this opinion.

I. BASIC FACTS

This legal malpractice case arises out of Kallman’s representation of Taylor in two interrelated matters involving an apartment complex in Lansing, Michigan. Under the terms of a loan agreement with First Merit Bank, N.A., Taylor was required to provide First Merit Bank with an annual certificate of compliance; the failure to do so constituted a default under the agreement that would allow First Merit Bank to accelerate the entire balance of the loan.1 In July 2013, the City of Lansing—the entity responsible for issuing the certificate of compliance—

1 A copy of the loan agreement is not included in the lower court record. However, its terms are referenced in an opinion entered by the United States District Court for the Western District of Michigan, and the parties do not contend that the terms recited therein are inaccurate or misstated.

-1- conducted an inspection of the apartment complex, found multiple violations, and deemed the property substandard. The City directed Taylor to correct the violations by August 2013.2

Taylor acknowledged that the City “red-tagged” a couple of units. He stated that “the necessary repairs were completed on the units,” but that the City refused to re-inspect the units so that the red-tags could be removed. In his affidavit, Taylor acknowledged that the City sent inspectors to the property, but he asserted that they “would inspect other units and come up with more repairs they wanted completed but would not inspect the red tagged units that had already had the repairs completed.” Inspection notices from the City, however, show that the apartment complex was re-inspected in April 2014, and that there were still violations in multiple units, including units that were deemed to have violations during the July 2013 inspection. In addition, in July 2014, the Ingham County Health Department sent an abatement of infestation letter to Taylor indicating that, due to numerous complaints from residents, the Health Department had investigated and determined that there were bed bug and cockroach infestations in multiple units of the apartment complex.

Taylor averred that he hired Kallman and Kallman Legal Group to assist him in getting the units re-inspected. He did not state when he hired Kallman and Kallman Legal Group. Instead, he only noted that before retaining Kallman, Kallman told him the City could not do what they were doing and that he would be able to get the inspections done, but after being retained Kallman’s position was that “there was nothing that could be done” about the City’s refusal to re-inspect the red-tagged units. Taylor stated in his affidavit that “after months and months” of Kallman “doing nothing,” Taylor hired a second lawyer, Ina O’Briant, “to try to get the inspections done, which she was able to do.” In an affidavit, O’Briant averred that she personally completed an inspection of the premises and “confirmed that any and all repairs that had been required were completed.” Thereafter, on March 23, 2015, O’Briant scheduled an inspection of the red-tagged units for April 1, 2015; however, she stated that the inspection was cancelled because a court-appointed receiver began to manage the property.

Because the City did not issue a certificate of compliance for the apartment complex, Taylor defaulted on the loan agreement with First Merit Bank. On January 27, 2014, First Merit Bank sent Taylor notice that he was in default because of his failure to provide the annual certificate of compliance, and the bank gave him until February 14, 2014 to cure the default. Taylor admitted that default was never cured. Accordingly, in April 2014, First Merit Bank filed a lawsuit against Taylor in federal district court.

In May 2014, Taylor hired Kallman to represent him in the First Merit Bank litigation. On May 29, 2014, Kallman filed an answer to First Merit Bank’s complaint. On June 25, 2014, First Merit Bank filed a motion for summary judgment. Kallman filed a response to the motion

2 By way of non-exhaustive example, the inspector discovered the following violations: inoperable fire door, broken windows, a rusted furnace, accumulation of stagnant water due to improper grading or drainage, damaged walls in hallways, loose or inoperable light fixtures, leaky faucets, missing or inoperable smoke detectors in hallways and bedrooms, and bed bug and cockroach infestations.

-2- on July 23, 2014. A hearing on the motion was set for October 15, 2014, but the case was stayed and administratively closed after Taylor filed for bankruptcy. After Taylor failed to complete the bankruptcy proceedings, the federal court reopened the case on a motion from First Merit Bank. The summary judgment motion was noticed for hearing on January 8, 2015. One day before the hearing, on January 7, 2015, Taylor filed for bankruptcy a second time and the case was again stayed and administratively closed. Taylor did not complete the second bankruptcy, so the federal court again reopened the matter on a motion from First Merit Bank. 3 The summary judgment motion was noticed for hearing on March 24, 2015. In addition, on March 6, 2015, First Merit Bank filed a motion for the appointment of a receiver. The hearing on that motion was also set for March 24, 2015.

On March 12, 2015, Kallman spoke with Taylor on the phone; Kallman’s notes on the call indicate that Taylor’s bankruptcy lawyer was going to extend the bankruptcy and get the order to Kallman. It also stated that Taylor’s bankruptcy lawyer was “preparing action v. City also.” In addition, on March 24, 2015, Kallman again spoke with Taylor on the phone; in his case notes, Kallman wrote that Taylor knew a receiver would be appointed and that Taylor “told me not to go—order will be entered.” In his affidavit, Taylor confirmed that he spoke with Kallman and agreed that Kallman did not have to appear for the hearing, but he stated that it was Kallman that convinced him that Kallman need not appear, and he stated that he was relying on Kallman’s expertise. Kallman did not appear at the hearing.

The court granted summary judgment in favor of First Merit Bank, ruling that the parties entered into a binding agreement, the agreement required an annual certificate of compliance, Taylor failed to provide the certificate, and First Merit Bank suffered damages when Taylor failed to pay the accelerated balance based on Taylor’s default. The federal opinion noted that Taylor’s defense to compliance was that “the City of Lansing has refused to inspect the premises and provide him the necessary certificate.” The court rejected the defense, noting that Taylor did not provide legal authority in support of his position and reasoning that the contract did not excuse compliance based on the inactions of a third party. Accordingly, the federal court granted the motion for summary judgment, and, on April 2, 2014, the court entered a monetary judgment against Taylor.

In addition, the federal court entered an order appointing a receiver for the property. The order noted that Taylor’s lawyer had failed to appear on the motion.

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David Taylor v. David Kallman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-taylor-v-david-kallman-michctapp-2019.