Douglas Lancaster v. Cosmopolitan Homes Inc

Michigan Court of Appeals·Decided September 10, 2026·No. 373220·Unpublished

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

DOUGLAS LANCASTER and DIANA UNPUBLISHED LANCASTER, September 10, 2026 10:36 AM

Plaintiffs-Appellees,

and

BRIANNA LANCASTER,

Plaintiff,

v No. 373220 Wayne Circuit Court

COSMOPOLITAN HOMES, INC., and DAN LC No. 17-003533-CH WICKER,

Defendants-Appellants,

and

VLADISLAV SAFIR, ALVERS, LLC, CITY TRENDS REALTY, LLC, and YOUSSEF DAKROUB,

Defendants.

Before: LETICA, P.J., and RICK and GARRETT, JJ.

PER CURIAM.

After a remand by this Court,1 defendants, Cosmopolitan Homes, Inc., and Dan Wicker, appeal as of right the trial court’s order requiring the return of case-evaluation sanctions paid after

1 Lancaster v Cosmopolitan Homes, Inc, unpublished per curiam opinion of the Court of Appeals, issued December 29, 2020 (Docket No. 347678).

the first trial. Defendants also challenge the court’s denial of their motion for reconsideration and its refusal to sanction plaintiffs, Douglas and Diana Lancaster. We affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

This is the second time this dispute has reached this Court. Plaintiffs purchased a home in Taylor, Michigan, from Cosmopolitan Homes in February 2016 for use by their granddaughter, Brianna Lancaster. Before the sale, defendants provided a seller’s disclosure statement stating that there was no known history of water in the basement. A few months after Brianna moved in, the basement walls began leaking after a heavy rainfall. Plaintiffs and Brianna later sued Cosmopolitan Homes, Wicker, and several other defendants, alleging fraud, innocent misrepresentation, silent fraud, breach of contract, and violations of the Seller’s Disclosure Act (SDA), MCL 565.951 et seq. Lancaster v Cosmopolitan Homes, Inc, unpublished per curiam opinion of the Court of Appeals, issued December 29, 2020 (Docket No. 347678), pp 1-2.

Before the first trial, the case was submitted to case evaluation. The panel entered a $6,000 evaluation against Wicker in plaintiffs’ favor. The panel did not enter an evaluation for Cosmopolitan Homes. Plaintiffs rejected the evaluation.

The first trial ended in a directed verdict for defendants after the trial court denied plaintiffs a brief adjournment to secure the testimony of Cletis Nichols, a witness who had stated that he personally informed Wicker about the home’s history of water damage. During plaintiffs’ appeal from the directed verdict, the trial court awarded defendants $43,911.08 in case-evaluation sanctions. The parties then entered a stipulated order under which plaintiffs paid $48,000, or 110% of the sanctions award, to defendants’ counsel. The order provided that the funds were the property of defendants’ counsel and that plaintiffs had no right to them, except that:

There are no rights of these Plaintiffs in the said monies provided however in the event the Michigan Court of Appeals (and the Michigan Supreme Court if applicable) reverse and remand the matter for trial so that these plaintiffs are deemed the prevailing parties, then plaintiffs shall be entitled to reimbursement of monies paid.

On appeal, this Court held that the trial court abused its discretion by denying plaintiffs’

requested adjournment and that, had Nichols testified consistently with his affidavit, defendants would not have been entitled to a directed verdict on plaintiffs’ claims for fraud, innocent misrepresentation, silent fraud, and violation of the SDA. Lancaster, unpub op at 3-5. We therefore reversed the directed verdict as to those claims and remanded for a new trial. Id. at 4, 12-13. Our Supreme Court denied defendants’ application for leave to appeal. Lancaster v Cosmopolitan Homes, Inc, 508 Mich 895 (2021).

The case was retried in October 2023. The jury found that Wicker, but not Cosmopolitan Homes, committed silent fraud and violated the SDA. It found both defendants liable for innocent misrepresentation. The jury awarded plaintiffs $4,344 against Cosmopolitan Homes and $4,344.05 against Wicker, for an aggregate verdict of $8,688.05.

Wicker then moved for case-evaluation sanctions under former MCR 2.403(O). He argued that the $4,344.05 verdict against him was not more than 10% above the $6,000 case evaluation

and that defendants were therefore entitled to retain the sanctions paid after the first trial and to recover additional sanctions for the retrial. Plaintiffs responded that the first sanctions award could no longer stand after reversal of the directed verdict and that the $8,688.05 aggregate verdict was more favorable than the $6,000 aggregate evaluation. The trial court denied Wicker’s motion. It reasoned that the case-evaluation award should be considered together as to Wicker and Cosmopolitan Homes and that plaintiffs’ total verdict exceeded the evaluation by more than 10%.

Plaintiffs later moved for return of the $48,000 paid under the stipulated order. The court granted the motion, ordered defendants’ counsel to return the funds, and directed that they be held in plaintiffs’ counsel’s client trust account pending further order. In doing so, the court concluded that this Court’s reversal had eliminated the verdict on which the first sanctions award rested and that plaintiffs had prevailed at the retrial. The court later denied defendants’ motion for reconsideration. This appeal followed.

II. ANALYSIS

A. CASE-EVALUATION SANCTIONS

Defendants principally argue that plaintiffs were not prevailing parties after the retrial because the jury awarded only $4,344.05 against Wicker, less than the $6,000 case-evaluation award. They also argue that plaintiffs’ motion for return of the $48,000 was inadequately briefed and that defense counsel had no obligation to provide an accounting of those funds. We disagree.

“When MCR 2.403(O) was in effect, a trial court’s decision whether to grant case-

evaluation sanctions under that subrule presented a question of law, which this Court reviews de novo.” Webster v Osguthorpe, ___ Mich ___, ___; ___ NW3d ___ (2025) (Docket Nos. 166627 and 166628); slip op at 10. Whether the verdict was sufficiently favorable to avoid sanctions is likewise reviewed de novo. Id. We also review the interpretation and application of court rules de novo. Dawley v Hall, 501 Mich 166, 169; 905 NW2d 863 (2018).

MCR 2.403 was amended effective January 1, 2022, to eliminate case-evaluation sanctions. Webster, ___ Mich at ___; slip op at 3. Under MCR 1.102, however, a trial court has discretion to permit a pending action to proceed under the former rules when application of the amended rules would not be feasible or would work injustice. Id. at ___; slip op at 11-12. Here, the parties and the trial court proceeded under former MCR 2.403(O), and neither side argues on appeal that doing so was error. We therefore address the parties’ arguments under the former rule.

We first consider defendants’ contention that plaintiffs’ motion for return of the $48,000 was fatally deficient because the supporting brief cited only MCR 2.403(O). MCR 2.119(A)(2) provides that a motion presenting an issue of law “must be accompanied by a brief citing the authority on which it is based.” Defendants are correct that courts are not the parties’ research assistants. Tolas Oil & Gas Exploration Co v Bach Servs & Mfg, LLC, 347 Mich App 280, 293; 14 NW3d 472 (2023). Briefs should contain the argument, facts, and law necessary to resolve the dispute. City of Westland v Kodlowski, 298 Mich App 647, 662; 828 NW2d 67 (2012), rev’d in part on other grounds 495 Mich 871 (2013).

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