David Young v. McBroom Industrial Services

CourtMichigan Court of Appeals
DecidedJanuary 24, 2017
Docket327854
StatusUnpublished

This text of David Young v. McBroom Industrial Services (David Young v. McBroom Industrial Services) 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 Young v. McBroom Industrial Services, (Mich. Ct. App. 2017).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

DAVID YOUNG, UNPUBLISHED January 24, 2017 Plaintiff-Appellee,

v Nos. 327029 & 327854 Oakland Circuit Court MCBROOM INDUSTRIAL SERVICES, LC No. 2011-118822-CK

Defendant-Appellant,

and

INDUSTRIAL CONTROL REPAIR, INC.,

Defendant,

LEHMAN & VALENTINO, P.C., and PAUL VALENTINO,

Intervening Plaintiffs-Appellees.

Before: GADOLA, P.J., and BORRELLO and STEPHENS, JJ.

PER CURIAM.

In these consolidated appeals, in Docket No. 327029, defendant McBroom Industrial Services (McBroom) appeals as of right a February 20, 2015, trial court order entered following a bench trial wherein the court entered a judgment in favor of plaintiff David Young (plaintiff) for $42,848.96 against McBroom. In Docket No. 327854, McBroom appeals as of right a June 9, 2015, order following the same bench trial wherein the court awarded intervening plaintiff, Lehman & Valentino, P.C. (Lehman), $92,550.08 against McBroom in connection with Lehman’s representation of plaintiff in a related lawsuit involving plaintiff and McBroom, and defendant Industrial Control Repair, Inc. (ICR), and $16,022.22 in case evaluation sanctions. For the reasons set forth in this opinion, in Docket No. 327029 we affirm the trial court’s order in favor of plaintiff, and in Docket No. 327854 we vacate the trial court’s order and remand for further proceedings consistent with this opinion.

-1- A. BACKGROUND

In April 2009, plaintiff was employed at ICR. On May 1, 2009, plaintiff signed an employment offer and agreed to work for McBroom. McBroom and ICR are involved in the same industry. In June 2009, ICR sued McBroom alleging breach of plaintiff’s non-compete agreement. ICR eventually added plaintiff to the suit.

In October 2009, McBroom terminated plaintiff’s employment. On May 2, 2011, plaintiff filed a complaint alleging that McBroom was liable for breach of contract for failing to pay a “signing bonus” promised to plaintiff when he left his employment with ICR, and for failing to also provide plaintiff with an ownership interest in McBroom. In addition, plaintiff alleged that McBroom was responsible for plaintiff’s attorney fees that plaintiff incurred in defending the ICR litigation. Plaintiff filed a jury-demand with his complaint. McBroom filed an answer, but did not file a jury-demand.

On August 15, 2011, Lehman moved to intervene pursuant to MCR 2.209(A)(3), alleging that both plaintiff and McBroom were liable for unpaid attorney fees related to Lehman’s representation of plaintiff in the ICR litigation. Specifically, Lehman alleged that “part of the damages claimed in the [proceeding] are the attorney fees and costs owed to [Lehman] by Young and McBroom.” Lehman argued that its claim “arises out of the same transaction being prosecuted in the case at bar,” and that its interests would be impaired if not included in the action. Lehman argued that under MCR 2.209(A)(3) it had a right to intervene because it claimed “an interest relating to the property or transaction which is the subject of the action and is so situated that the disposition of the action may as a practical matter impair or impede the applicant’s ability to protect that interest.” On August 31, 2011, the trial court granted Lehman’s motion to intervene.

On January 24, 2012, Lehman filed its complaint against plaintiff and McBroom, seeking $91,794.30 in unpaid attorney fees. Lehman did not file a jury demand with its intervening complaint and neither plaintiff nor McBroom filed a demand for a jury in response to the complaint. In its intervening complaint, Lehman sought recovery of attorney fees from McBroom for legal services associated with its representation of both plaintiff and McBroom in the ICR litigation.

Thereafter, the parties filed several motions and continued discovery. Then, on March 13, 2013, McBroom filed a motion to “confirm jury trial on intervening plaintiff’s claims” apparently because Lehman asserted that its claims were not subject to a jury trial. In the motion, McBroom explained that plaintiff filed a jury demand when he filed his complaint. McBroom argued that it did not file a jury demand because it was entitled to rely on plaintiff’s jury demand as to all of the issues in the case. McBroom argued that even though Lehman did not file a jury demand with its intervening complaint, McBroom was entitled to rely on plaintiff’s jury demand with respect to both plaintiff’s claims and Lehman’s intervening claims because the claims involved the same issue—i.e. liability for the attorney fees in the ICR litigation. McBroom cited language in Mink v Masters, 204 Mich App 242, 246-247; 514 NW2d 235 (1994), wherein this Court held that “[i]f a timely demand for trial by jury is filed by one of the parties, all of the parties who are interested in the issues for which jury trial has been

-2- demanded may rely on that demand and need not make an additional demand of their own” (quotation omitted).

The trial court held a hearing on March 27, 2013. After hearing argument from both parties, the trial court held that McBroom was not entitled to a jury trial on Lehman’s intervening complaint. The court held that McBroom could not rely on plaintiff’s jury demand, explaining: “I’m sorry, I think this is a different animal. It’s an intervening complaint. That is - - none of the authority refers to that particular animal. The motion’s denied.” The court entered a written order on March 29, 2013, denying McBroom’s motion to confirm a jury trial.

The case was scheduled for trial to commence on May 23, 2013, however, on that date, the court had a conflict and the trial date was adjourned to September 12, 2013. On September 4, 2013, McBroom moved to reschedule the trial for various reasons. In its motion, McBroom noted that the trial was a “bench trial.”

The case proceeded to trial on March 13, 2014. On the first day of trial, the court and plaintiff’s counsel engaged in the following exchange:

Trial Court. And this is the trial, a bench trial.

Plaintiff’s Counsel. That is correct.

Counsel for McBroom was present, but did not object when plaintiff’s counsel confirmed that the case was subject to a bench trial. Counsel for McBroom did not request that plaintiff’s and Lehman’s claims be bifurcated so that plaintiff’s claims could be tried before a jury.

At the ensuing bench trial, plaintiff testified that before beginning his employment with McBroom in May 2009, he had been employed by ICR since 2002. Plaintiff presented documentation of his salary increases with ICR and a severance agreement with ICR whereby ICR promised to pay plaintiff the equivalent of three months of his salary and other benefits, such as a car allowance, if he left ICR. At the time he ended his employment with ICR, plaintiff made approximately $172,300 per year and had a monthly car allowance of $760.

Plaintiff testified that ICR and defendant had an ongoing business relationship; he had known McBroom’s CEO, Richard McBroom and its president, Robert Campbell, for several years. Plaintiff testified that although ICR offered him another compensation package in April 2009, he was contacted by Richard McBroom and Campbell about working for McBroom. Plaintiff met with the two men several times and spoke with them on the phone. According to plaintiff, Richard McBroom told him that his sons did not wish to go into business with him and Richard McBroom asked plaintiff whether he wanted to ultimately take over the business. Richard McBroom wanted plaintiff to decide whether to leave ICR on short notice; according to plaintiff, as an incentive, Richard McBroom offered to pay plaintiff his ICR severance package as a “signing bonus” if plaintiff came to work for McBroom “within the week.”

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David Young v. McBroom Industrial Services, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-young-v-mcbroom-industrial-services-michctapp-2017.