Futernick v. Sumpter Township

207 F.3d 305
Court of Appeals for the Sixth Circuit·Decided March 13, 2000·No. 98-2003·Published·Cited by 26 cases

Opinion

*307 OPINION

KAREN NELSON MOORE, Circuit Judge.

This case involves a settlement agreement obligating defendant-appellee Sump-ter Township to construct sewer lines to plaintiff-appellant Sheldon Futernick’s mobile home park, Holiday Woods. The agreement provided that the lines would be constructed with the proceeds of a bond sale to be scheduled “as quickly as possible.” Although the agreement was entered on August 25, 1993, the Township has not yet undertaken a bond sale or begun construction of the sewer lines to Holiday Woods.

Because of this delay, Futernick filed suit in federal district court against the Township and various of its officials, alleging that the Township had breached the settlement agreement and requesting specific performance. After a bench trial, the district court concluded that, although there had been substantial delays, the Township had not breached its obligation under the settlement agreement. Futer-nick now appeals that decision, as well as the district court’s denial of his post-judgment motion to enforce the settlement agreement. Because Futernick’s appeal of the district court’s judgment that the Township had not breached the settlement agreement is untimely, we DISMISS that portion of his appeal. Concluding that Futernick has presented no reason justifying relief from the district court’s judgment, we AFFIRM the district court’s denial of post-judgment relief.

I. BACKGROUND

Sheldon Futernick is the owner of Holiday West Mobile Home Park and Holiday Woods Mobile Home Park, which are located in Sumpter Township. In 1993, Fu-ternick sued Sumpter Township and Township officials in federal district court alleging violations of 42 U.S.C. § 1983 and various state laws. Futernick sought an injunction prohibiting the Township from constructing a sewer system that did not include free hook-up status for his mobile home parks.

The parties resolved the suit by way of a settlement agreement, which was never reduced to writing but which was placed on the record on August 25,1993. The agreement provides:

Number one. The Township shall construct sewer lines to Holiday West and Holiday Woods Mobile Home Parks. The line to Holiday West [ (hereinafter referred to as “Phase I”) ] will be constructed from the proceeds of the initial bond sale of $3.6 million. The line to Holiday Woods [ (hereinafter referred to as “Phase II”) ] will be constructed from the proceeds of the second scheduled bond sale. Sumpter Township shall obtain the second bond sale as quickly as possible.
Number two. Plaintiff shall pay a total of $625,000 toward the construction costs of the sewer lines to Holiday West and Holiday Woods. This payment will be in lieu of any tap fees or connection charges for existing units at either Holiday West or Holiday Woods. Payment of such amount shall be made as follows:
(A) The sum of $225,000 shall be paid within seven days of the date of commencement of flow of sewage from Holiday West into the Sumpter sewer system.
(B) The remaining $400,000 shall be paid within seven days of the date of commencement of flow of sewage from Holiday Woods into the Sumpter sewer system.
Three. The Township agrees that no other mobile home park will receive more favorable fee on a per-site basis with regard to the amount paid for the sewer construction, and/or connection than Plaintiff.
Number Four. The complaint against the Township and its officials will be dismissed with prejudice and without costs or attorneys fees to either party at *308 the time that construction to Holiday Woods is completed. Prosecution of the action will be stayed with the Court’s permission pending that event.
Number Five. The foregoing settlement is contingent upon agreement by the Michigan Department of Natural Resources to forego any enforcement action or effort to require compliance with the facility construction requirements of the Holiday Woods permit or the effluent limits set therein, pending construction of the sewer connection to Holiday Woods, and to suspend further proceedings toward a new permit for ... Holiday West; pending construction of the sewer connection to Holiday West.
Number Six. Notwithstanding the foregoing paragraphs four and five, Plaintiff agrees to withdraw his claim for injunctive relief with regard to the issuance and delivery of the initial bond issue covering inter alia construction to Holiday West, and a consent order will be presented to the Court for entry accordingly.

Joint Appendix (hereinafter “J.A.”) at 82-83 (D. Ct. Op. Denying Mots, for Summ. J. 6/17/97) (ellipsis in original). After entry of the settlement agreement, 1 the district court dismissed the claims against the Township. 2 A clean “non-litigation certificate” was then issued, making possible the closing of the initial bond sale.

Phase I of the Sumpter sewer system providing service to Holiday West was timely constructed with the proceeds of that first bond sale, and Holiday West is not at issue in this case. Phase I of the sewer system involved the installation of a sewer trunk line along Rawsonville Road to Willis Road. The Phase I system, however, does not extend far enough to serve Holiday Woods. Futernick believes that the Township should have extended the Willis Road Phase I sewer to Holiday Woods; the Township chose, however, to construct the Phase II sewer along a different and more complete route that would serve Holiday Woods.

In October of 1994, Futernick filed a diversity action in federal district court naming as defendants Sumpter Township and various Township officials. 3 Futernick alleged that Sumpter Township had breached the settlement agreement and asked the court to enforce the terms of the agreement. Both Futernick and the Township filed motions for summary judgment, and on June 17, 1997, the district court, finding that genuine issues of material fact existed, entered an opinion denying both motions. The district court explained that the parties’ dispute focused on the first paragraph of the settlement agreement. The court reasoned:

Plaintiff argues that this paragraph creates an absolute obligation on the part of the Township to build a sewer line to Holiday Woods, whereas Defendant ar *309 gues the second bond sale is a condition precedent that must occur before the sewer line is to be built. The Court concludes that the second bond sale is a condition precedent.

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Futernick v. Sumpter Township, 207 F.3d 305 (6th Cir. 2000).

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