Doraid Elder v. Scott K Lites

CourtMichigan Court of Appeals
DecidedFebruary 19, 2026
Docket369709
StatusUnpublished

This text of Doraid Elder v. Scott K Lites (Doraid Elder v. Scott K Lites) 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
Doraid Elder v. Scott K Lites, (Mich. Ct. App. 2026).

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

DORAID ELDER, NOZMI ELDER, and WEST UNPUBLISHED DEARBORN PARTNERS, LLC, February 19, 2026 2:25 PM Plaintiffs-Appellants,

v No. 369709 Wayne Circuit Court SCOTT K. LITES, KURT RIEDEL, MICHAEL LC No. 21-017445-NM ASHCRAFT, and PLUNKETT COONEY, PC,

Defendants-Appellees.

Before: FEENEY, P.J., and RIORDAN and GARRETT, JJ.

PER CURIAM.

In this legal-malpractice matter, plaintiffs-appellants, Doraid Elder, Nozmi Elder, and West Dearborn Partners, LLC, appeal as of right the trial court order granting summary disposition of plaintiffs’ remaining claims in favor of defendants-appellees, Scott K. Lites, Kurt Riedel, Michael Ashcraft, and Plunkett Cooney, PC, under MCR 2.116(C)(7) (claims are time-barred). We affirm.

I. FACTUAL BACKGROUND

Doraid, Nozmi, and Anmar Sarafa were the original members of West Dearborn Partners until Doraid and Nozmi acquired Sarafa’s ownership interest.1 Lites, Riedel, and Ashcraft are all attorneys, currently or formerly employed by Plunkett Cooney. Ashcraft served as general counsel to Plunkett Cooney. This case arises from an underlying property dispute.

In May 2005, the city of Dearborn sold a vacant parcel of land, “Parcel C,” to West Village Commons, LLC. In June 2005, West Village recorded a construction note and mortgage on Parcel C in favor of Standard Federal Bank National Association. Bank of America became the successor to Standard Federal. West Village never developed Parcel C, and in August 2010, West Village filed for bankruptcy. In March 2011, West Dearborn Partners acquired the 2005 Note and

1 Doraid is Nozmi’s son.

-1- Mortgage from Bank of America under a Note Sale and Assignment Agreement. Lites was the attorney that worked on this sale—West Dearborn Partners requested that Lites record the assignment with the register of deeds at that time, but he failed to do so.

On October 5, 2011, in the West Village bankruptcy proceedings, the bankruptcy court directed the trustee to abandon Parcel C to the city of Dearborn. The trustee executed a quit claim deed conveying Parcel C to Dearborn on October 17, 2011. It was not until December 17, 2015, that Lites recorded the 2011 assignment with the register of deeds on behalf of West Dearborn Partners. In separate litigation in Wayne Circuit Court, the city of Dearborn sought to quiet title against Bank of America, which resulted in a previous appeal before this Court. See Dearborn v Bank of America, unpublished per curiam opinion of the Court of Appeals, issued February 12, 2019 (Docket No. 339704). Both the trial court and this Court rejected the view that West Dearborn Partners’ interest in Parcel C was preserved and instead ruled that the failure to record the Assignment before October 5, 2011, extinguished any interest West Dearborn Partners had in Parcel C. Id. at 4, 8. Defendants sought leave to appeal in the Michigan Supreme Court on plaintiffs’ behalf, which was denied, Dearborn v Bank of America, 506 Mich 936 (2020), as was a motion for reconsideration, Dearborn v Bank of America, 506 Mich 974 (2020).

In December 2017, the parties entered a tolling agreement to extend the statute of limitations regarding any possible claims of legal malpractice until such time that defendants exhausted any appellate remedies while maintaining an attorney-client relationship with plaintiffs. The tolling agreement provided:

Nothing contained in this Agreement shall be deemed to renew, revive, or resurrect any claim on behalf of West Dearborn Partners which, on December 1, 2017, was already time-barred by statute, court rule, or case law[.]

II. PROCEDURAL HISTORY

Plaintiffs filed this suit on December 21, 2021. In Count I, plaintiffs alleged legal malpractice and professional negligence against Lites for, among other things, Lites’s failure to: (1) record the assignment, (2) inform plaintiffs of the failure to record the assignment, and (3) take legal action against Bank of America. Plaintiffs claimed they suffered damages by way of “the value of uncollected mortgage interest, the value of real property, and [the] value of development opportunity losses exceeding [$30 million.]” In Count II, plaintiffs alleged professional liability against Plunkett Cooney, Lites, and Riedel for the same acts, namely, failing to record the assignment and failing to advise plaintiffs of that failure.

In Count III, plaintiffs alleged breach of fiduciary duty by Lites. Plaintiffs asserted that at all times, defendants were engaged in the practice of their profession, and “[t]he attorney-client relationship gives rise to fiduciary duties and responsibilities, in addition[] to professional obligations as an advocate.” Plaintiffs then stated that a breach of fiduciary duty is distinct from professional negligence; a breach of fiduciary duty imposes a higher expectation than negligence, “arises from the attorney-client relationship,” and requires a more culpable state of mind. Plaintiffs claimed that Lites breached his fiduciary duty by not explaining his failure to record the assignment “and related false explanations in his effort to avoid full disclosure to his clients,” giving false deposition testimony, withholding information about conflicts of interests, and refusing to act

-2- adversely against Bank of America. In Count IV, plaintiffs alleged breach of fiduciary duty against Plunkett Cooney, Ashcraft, “and other Plunkett Cooney employees and agents” for not acknowledging the failure to record the assignment, withholding conflicts of interest, requesting that plaintiffs release any claims, failing to disclose information, and lack of candor.

Several motions for summary disposition were filed. The court granted Riedel summary disposition of the legal-malpractice claim against him because he had retired and the statute of limitations had run. Plaintiffs moved for summary disposition of their legal-malpractice claims, and in lieu of filing a response, a stipulated order was entered. The parties stipulated to two elements of the legal-malpractice claims: that an attorney-client relationship existed between Plunkett Cooney and West Dearborn Partners for the purpose of recording the assignment, and that the representation by Plunkett Cooney was negligent for failing to record the assignment before October 5, 2011. After defendants moved for summary disposition a second time, the court dismissed all claims brought by Nozmi individually, and dismissed Count IV, the fiduciary-duty claim against Plunkett Cooney and Ashcraft, as frivolous.

Thereafter, defendants moved for summary disposition of Count I, legal malpractice against Lites; Count II, legal malpractice against Plunkett Cooney and Lites; and Count III, breach of fiduciary duty against Lites. Defendants argued that they were entitled to summary disposition of these claims because: (1) they were time-barred; (2) even if they were timely, plaintiffs could not establish damages; and (3) there was no genuine issue of material fact precluding summary disposition of the legal-malpractice or fiduciary-duty claims.

The trial court held that although plaintiffs’ legal-malpractice claims were filed within the two-year period provided under MCL 600.5805(8), they were nonetheless time-barred by the statute of repose, MCL 600.5838b,2 because the act of legal malpractice was the failure to record the assignment in 2011, and plaintiffs did not file suit until December 2020, outside the six-year statute of repose period.

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Cite This Page — Counsel Stack

Bluebook (online)
Doraid Elder v. Scott K Lites, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doraid-elder-v-scott-k-lites-michctapp-2026.