Eric Jones v. City of Walled Lake

CourtMichigan Court of Appeals
DecidedJune 17, 2021
Docket350997
StatusUnpublished

This text of Eric Jones v. City of Walled Lake (Eric Jones 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
Eric Jones v. City of Walled Lake, (Mich. Ct. App. 2021).

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

ERIC JONES, FLEMING YATOOMA & UNPUBLISHED BOROWICZ, PC, and COEUS, LLC, June 17, 2021

Plaintiffs-Appellants/Cross-Appellees,

v No. 350997 Oakland Circuit Court CITY OF WALLED LAKE, LC No. 2019-174189-CZ

Defendant-Appellee,

and

L. DENNIS WHITT,

Defendant-Appellee/Cross-Appellant.

Before: REDFORD, P.J., and BORRELLO and TUKEL, JJ.

PER CURIAM.

In this action seeking damages for alleged defamatory statements made by defendant L. Dennis Whitt on three separate occasions, plaintiffs, Eric Jones, Fleming Yatooma & Borowicz, PC, and COEUS, LLC, appeal as of right the trial court’s order granting summary disposition in favor of defendants. Defendant Whitt cross-appeals the same order. For the reasons set forth in this opinion, we affirm.

I. BACKGROUND

This appeal arises out of alleged defamatory statements made by Walled Lake’s city manager, L. Dennis Whitt, (Whitt) in three instances. The comments pertained to plaintiff COEUS’s attempt to obtain a medical marijuana provisioning center license within the city of Walled Lake and the city’s failure to approve that request. In November 2018, COEUS filed a lawsuit against the city and some of its officials, including Whitt. The crux of that complaint was that the city acted unfairly in how it approved medical marijuana provisioning licenses for other entities, but not COEUS. A news article in a local paper, Spinal Column, explained:

-1- The original suit, filed in November [2018] by COEUS, LLC, gives a long list of complaints, stating there is “undeniable evidence” that the city granted at least one Medical Marijuana Facilities Licensing Act (MMFLA) provisioning center license and “belief” that all three were granted before enacting the licensing ordinance.

In addition to Millen/The Greenhouse of Walled Lake, defendants for the first lawsuit include the City of Walled Lake, City Manager L. Dennis Whitt, Mayor Linda Ackley, City Development Coordinator Chelsea Pesta (who also is the assistant city manager), City Clerk Jennifer A. Stuart, “John and Jane Does 1 - through 20,” all city employees, Custom Built Properties, LLC d/b/a The Greenhouse of Walled Lake, and Millen were named in the lawsuit.

It also cites conspiracy between Millen/The Greenhouse of Walled Lake and the city, in particular singling out Whitt. The lawsuit stated that Millen’s buildout of his facility was completed and ready to be opened in September 2017, “nearly five months before” the city made amendments to the zoning ordinance, and was already hiring. It further asserted that around the same time, Millen was representing The Greenhouse of Walled Lake as having already received a city license and only being delayed by the state. According to the lawsuit, “Defendants colluded and conspired to deprive deserving MMFLA applicants, such as plaintiff, of their fundamental rights to fairness, justice, equal protection and due process, through a series of backroom dealing by which defendants circumvented, and frankly ignored, the licensing ordinance and administrative rules applicable thereto.”

At a February 19, 2019 city council meeting, Whitt provided his city manager’s report. The minutes from that meeting state, in pertinent part, that while discussing the marijuana licensing update,

Mr. Whitt opined the lawsuit is all bogus. Mr. Whitt said the City Council does not have authority to issue a marijuana license, the State of Michigan has that authority. Mr. Whitt said the council does not have the authority to make him issue a business license. Mr. Whitt said he was recently interviewed by the Oakland Press and was asked about the cartel that is out to get him. [Emphasis added.]

Although the minutes do not reflect an actual quote from Whitt, he admitted at a deposition in the 2018 COEUS lawsuit that he used the term “cartel” to refer to COEUS at the council meeting.

After the council meeting, Whitt was interviewed by Anne Seebaldt, a Spinal Column reporter. Seebaldt had asked Whitt what he meant by “cartel.” Although Whitt’s entire response to Seebaldt is not quoted in her article, she wrote:

Whitt said he believes that the intent of these suits on the part of this “cartel” was to have a “chilling effect” upon issuing licenses to anyone else, and specifically targeted The Greenhouse of Walled Lake. The lawsuit was filed before Millen had received his state marijuana license.

-2- “What you have,” he said, “is a group that wants a license and figures the fastest way to get it is to bully those who issue them into giving them one, while bypassing other applicants. They sued the city making false allegations.”

Plaintiffs’ second amended complaint in the instant case lists four counts: one count of defamation against Whitt, two counts of gross negligence against the city of Walled Lake related to its retention and supervision of Whitt, and one count of injunctive relief to prevent any further defamatory statements.

Defendants thereafter moved for summary disposition under MCR 2.116(C)(6), (7), and (8). Defendants argued that Walled Lake was immune from tort liability because, assuming it was implicated in plaintiffs’ count of defamation,1 a governmental agency cannot be held vicariously liable for the intentional torts of its appointed officials. Defendants also argued that the city was immune from the gross-negligence counts because the “gross negligence” exception to governmental immunity applies to individuals, not the governmental agency itself. Regarding Whitt, defendants averred that, as the highest appointive executive official in the city, he was absolutely immune from tort liability. They also maintained that Whitt was acting within the scope of his executive authority when he made his comments to the council, to the reporter, and at the deposition. Alternatively, defendants argued that Whitt’s statements were absolutely privileged.2

In response, plaintiffs asserted that the gravamen of the complaint was that the city was indirectly liable under the doctrine of respondeat superior for the intentional torts of Whitt and, directly, for the grossly negligent retention of him. Plaintiffs also argued that Whitt’s statements did not involve a governmental function, so he was not entitled to immunity. Further, plaintiffs argued that Whitt was not immune because he is not the highest appointive executive official; instead, as a city manager, he was an administrator who lacked any executive function. Likewise, plaintiffs also argued that because Whitt was not acting within his administrative authority, his statements were not privileged. Plaintiffs also argued that Whitt’s comments in his deposition testimony were not germane to the proceedings, so they were not privileged.

The trial court denied defendants’ motion for summary disposition under MCR 2.116(C)(6) and (8), but granted the motion under MCR 2.116(C)(7). The trial court ruled that the city was absolutely immune from liability. And although the trial court ruled that Whitt was not immune from liability, it nonetheless held that his comments were protected or privileged.

II. ANALYSIS

This Court reviews a trial court’s decision on a motion for summary disposition de novo. Odom v Wayne Co, 482 Mich 459, 466; 760 NW2d 217 (2008). 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.” A moving party may support its motion for summary

1 Defendants noted that there were no substantive allegations against the city in that count.

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

Related

Hamed v. Wayne County
803 N.W.2d 237 (Michigan Supreme Court, 2011)
Odom v. Wayne County
760 N.W.2d 217 (Michigan Supreme Court, 2008)
Rental Property Owners Ass'n v. City of Grand Rapids
566 N.W.2d 514 (Michigan Supreme Court, 1997)
Gleason v. Department of Transportation
662 N.W.2d 822 (Michigan Court of Appeals, 2003)
Oakland County Board v. Michigan Property & Casualty Guaranty Ass'n
575 N.W.2d 751 (Michigan Supreme Court, 1998)
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)
Gracey v. Wayne County Clerk
540 N.W.2d 710 (Michigan Court of Appeals, 1995)
Sun Valley Foods Co. v. Ward
596 N.W.2d 119 (Michigan Supreme Court, 1999)
Wesche v. Mecosta County Road Commission
746 N.W.2d 847 (Michigan Supreme Court, 2008)
Tarlea v. Crabtree
687 N.W.2d 333 (Michigan Court of Appeals, 2004)
Village of Dimondale v. Grable
618 N.W.2d 23 (Michigan Court of Appeals, 2000)
Marrocco v. Randlett
433 N.W.2d 68 (Michigan Supreme Court, 1988)
Beauregard-Bezou v. Pierce
487 N.W.2d 792 (Michigan Court of Appeals, 1992)
Kefgen v. Davidson
617 N.W.2d 351 (Michigan Court of Appeals, 2000)
Thomas J Petipren v. Rodney Jaskowski
494 Mich. 190 (Michigan Supreme Court, 2013)
Stephens v. Worden Insurance Agency, LLC
859 N.W.2d 723 (Michigan Court of Appeals, 2014)
Genesee County Drain Commissioner v. Genesee County
309 Mich. App. 317 (Michigan Court of Appeals, 2015)
Melissa Mays v. Governor Rick Snyder
916 N.W.2d 227 (Michigan Court of Appeals, 2018)
Ferguson v. City of Lincoln Park
694 N.W.2d 61 (Michigan Court of Appeals, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
Eric Jones v. City of Walled Lake, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eric-jones-v-city-of-walled-lake-michctapp-2021.