Gabrielle Beebe v. Ag Management Company LLC

CourtMichigan Court of Appeals
DecidedJanuary 5, 2023
Docket356145
StatusUnpublished

This text of Gabrielle Beebe v. Ag Management Company LLC (Gabrielle Beebe v. Ag Management Company LLC) 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
Gabrielle Beebe v. Ag Management Company LLC, (Mich. Ct. App. 2023).

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

GABRIELLE BEEBE and DEANNA DITTENBER, UNPUBLISHED January 5, 2023 Plaintiffs-Appellants,

v No. 356145 Oakland Circuit Court AG MANAGEMENT COMPANY, LLC, and PSM LC No. 2020-181884-CH INVESTMENT PROPERTIES, LLC,

Defendants-Appellees,

and

PAULETTE MICHEL LOFTIN and LAW OFFICES OF PAULETTE LOFTIN, LLC,

Defendants.

Before: M. J. KELLY, P.J., and MURRAY and RIORDAN, JJ.

PER CURIAM.

Plaintiffs, Gabrielle Beebe and Deanna Dittenber, appeal the trial court’s opinion and order granting summary disposition in favor of defendants AG Management Company, LLC (“AG Management”) and PSM Investment Properties, LLC (“PSM”), pursuant to MCR 2.116(C)(8) and (C)(10), in this action involving a dispute over a residential security deposit.1 For the reasons set

1 This Court initially denied plaintiffs’ application for leave to appeal, Beebe v AG Mgt Co, LLC, unpublished order of the Court of Appeals, entered April 22, 2021 (Docket No. 356145), but our Supreme Court subsequently remanded the case to this Court for consideration as on leave granted. Beebe v AG Mgt Co, LLC, 508 Mich 966 (2021). Defendants Paulette Michel Loftin and Law Offices of Paulette Loftin, LLC, were dismissed from this action and are not parties to this appeal. Accordingly, references to “defendants” in this opinion shall refer only to defendants AG Management and PSM.

-1- forth in this opinion, we affirm in part, reverse in part, and remand to the trial court for further proceedings consistent with this opinion.

I. BACKGROUND

This case arises from a lease of residential property in Oak Park, Michigan. The property is owned by PSM and managed by AG Management. Plaintiffs were both listed as tenants and both were parties to the lease agreement. AG Management Company collected a security deposit of $1,792 from plaintiffs. On February 20, 2019, plaintiffs gave notice that they intended “to terminate their occupancy and their month to month tenancy.” Although Beebe vacated the property and turned in her keys on April 5, 2019, plaintiff Dittenber continued to have possessions at the property and did not turn in her keys until April 11, 2019. On May 6, 2019, AG Management prepared a statement of security deposit resolution (SDR), in which it claimed $790.17 against plaintiffs’ security deposit. After plaintiffs disputed the SDR, AG Management agreed to refund an additional $70.70 of the security deposit. In an e-mail dated May 21, 2019, Beebe expressed her continued dissatisfaction with the assessed charges.

On June 19, 2020, plaintiffs filed this action contesting defendants’ right to retain the security deposit. Count I of plaintiffs’ first amended complaint alleged violations of the Landlord Tenant Relationships Act (LTRA), MCL 554.601 et seq. In Count II, plaintiffs asserted a claim for statutory conversion, MCL 600.2919a(1)(a), based on defendants’ retention of the security deposit balance. Count III alleged violations of the Truth in Renting Act (TIRA), MCL 554.631 et seq. Count IV alleged fraud by both defendants. Finally, Count V alleged a claim against both defendants for unlawful civil conspiracy. Defendants moved for summary disposition under MCR 2.116(C)(8) and (C)(10) on all claims. Following a hearing, the trial court granted defendants’ motion and dismissed plaintiffs’ claims in their entirety.

II. STANDARD OF REVIEW

A trial court’s decision on a motion for summary disposition is reviewed de novo. El- Khalil v Oakwood Healthcare, Inc, 504 Mich 152, 159; 934 NW2d 665 (2019). Defendants moved for summary disposition under both MCR 2.116(C)(8) and (C)(10). In El-Khalil, our Supreme Court explained:

A motion under MCR 2.116(C)(8) tests the legal sufficiency of a claim based on the factual allegations in the complaint. Feyz v Mercy Mem Hosp, 475 Mich 663, 672; 719 NW2d 1 (2006). When considering such a motion, a trial court must accept all factual allegations as true, deciding the motion on the pleadings alone. Bailey v Schaaf, 494 Mich 595, 603; 835 NW2d 413 (2013); MCR 2.116(G)(5). A motion under MCR 2.116(C)(8) may only be granted when a claim is so clearly unenforceable that no factual development could possibly justify recovery. Adair v Michigan, 470 Mich 105, 119; 680 NW2d 386 (2004).

A motion under MCR 2.116(C)(10), on the other hand, tests the factual sufficiency of a claim. Johnson v VanderKooi, 502 Mich 751, 761; 918 NW2d 785 (2018). When considering such a motion, a trial court must consider all evidence submitted by the parties in the light most favorable to the party opposing the

-2- motion. Id. A motion under MCR 2.116(C)(10) may only be granted when there is no genuine issue of material fact. Lowrey v LMPS & LMPJ, Inc, 500 Mich 1, 5; 890 NW2d 344 (2016). “A genuine issue of material fact exists when the record leaves open an issue upon which reasonable minds might differ.” Johnson, 502 Mich at 761 (quotation marks, citation, and brackets omitted). [El-Khalil, 504 Mich at 159-160.]

This case also requires construction of different statutes. In Wayne Co v AFSCME Local 3317, 325 Mich App 614, 633-634; 928 NW2d 709 (2018), this Court explained:

The primary task in construing a statute is to discern and give effect to the Legislature’s intent, and in doing so, we start with an examination of the language of the statute, which constitutes the most reliable evidence of legislative intent. City of Coldwater v Consumers Energy Co, 500 Mich 158, 167, 895 NW2d 154 (2017). When the language of a statutory provision is unambiguous, we must conclude that the Legislature intended the meaning that was clearly expressed, requiring enforcement of the statute as written, without any additional judicial construction. Id. Only when an ambiguity in a statute exists may a court go beyond the statute’s words to ascertain legislative intent. Id. We must give effect to every word, phrase, and clause in a statute, avoiding a construction that would render any part of the statute nugatory or surplusage. Id. at 167-168.

III. PLAINTIFFS’ CLAIMS UNDER THE LTRA AND CONVERSION

Plaintiffs challenge the trial court’s dismissal of their claims for violation of the LTRA. They argue that the trial court erred in its interpretation of the statutory phrase “termination of occupancy” and by concluding that they did not vacate the leased premises until April 11, 2019. According to plaintiffs, they vacated the lease premises on April 5, 2019, and therefore, defendants’ May 6, 2019 SDR was untimely. As such, plaintiffs argue, defendants waived any claim to the security deposit. Plaintiffs also argue that the trial court erred when it determined that defendants’ retention of the security deposit balance was not unlawful because it was retained pursuant to the parties’ written agreement for purposes of the LTRA, and also by dismissing their claim for conversion on that basis. We agree that defendants did not waive any claim to the security deposit, but hold that the trial court erred by determining that plaintiffs agreed in writing to the final disposition of the security deposit, and also by dismissing plaintiffs’ conversion claim on that basis.

This case implicates several provisions of the LTRA that address the disposition of a tenant’s security deposit. In Tree City Props, LLC v Perkey, 327 Mich App 244, 248; 933 NW2d 704 (2019), this Court explained the purpose of the LTRA:

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Bluebook (online)
Gabrielle Beebe v. Ag Management Company LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gabrielle-beebe-v-ag-management-company-llc-michctapp-2023.