Gateplex Molded Products, Inc v. Collins & Airman Plastics, Inc

681 N.W.2d 1, 260 Mich. App. 722
CourtMichigan Court of Appeals
DecidedMay 14, 2004
DocketDocket 239459
StatusPublished
Cited by6 cases

This text of 681 N.W.2d 1 (Gateplex Molded Products, Inc v. Collins & Airman Plastics, Inc) 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
Gateplex Molded Products, Inc v. Collins & Airman Plastics, Inc, 681 N.W.2d 1, 260 Mich. App. 722 (Mich. Ct. App. 2004).

Opinion

Schuette, J.

In this molder’s lien case, plaintiff Gateplex Molded Products, Inc., appeals as of right a declaratory judgment in favor of defendant Collins & Aikman Plastics, Inc. We affirm.

I. FACTS

General Motors Corporation (gm) contracted with defendant to produce certain plastic parts for its automobiles. Gm owned the molds and allowed defendant to possess them, use them, or assign them for possession and use by third persons to produce the plastic parts. Defendant assigned the molds to Mexican Industries (Mexican) to do the production. Mexican then assigned them to plaintiff to do the production. Defendant is a “Tier I” subcontractor — subcontracting directly from gm. Plaintiff is a “Tier III” subcontractor — two steps further removed. Plaintiff produced the parts, but before plaintiff was paid in full by Mexican, Mexican filed for bankruptcy. Before filing for bankruptcy, Mexican was paid in full by defendant for the plastic parts produced by plaintiff. Plaintiff filed a molder’s lien against Mexican and refused to return the molds when asked to do so by defendant.

Plaintiff then filed this action requesting a declaration of rights in the molds. In its complaint, plaintiff alleged that Mexican issued a purchase order to plain *724 tiff for the production of plastic parts. Plaintiff also alleged that Mexican furnished or caused plaintiff to use certain tooling dies, molds, and other equipment in the process of producing plastic parts. Plaintiff further alleged that the parts produced by plaintiff were sent to Mexican, then to defendant, and finally were placed in gm automobiles. Plaintiff next alleged that Mexican included language in the purchase order indicating the molds belonged to Mexican:

[The molds] shall not be used by Seller [Plaintiff] for any purpose other than the performance of this order, shall be deemed to be personalty, shall be conspicuously marked “Property of Mexican Industries in Michigan, Inc,” by Seller [Plaintiff], shall not be commingled with the property of Seller [Plaintiff] or with that of any third person and shall not be moved from Seller’s [Plaintiff's] premises without Buyer’s [Mexican’s] prior written approval.

Plaintiff then alleged that on April 19, 2001, it filed a notice of molder’s lien against Mexican for the amount owed for plastic part production. Plaintiff additionally alleged upon information and belief that Mexican filed chapter 11, later converted to chapter 7, bankruptcy.

Plaintiff also sought a preliminaiy injunction to stop defendant from recovering the molds. Plaintiff relied on the reasons set forth in the complaint as the grounds for the court to grant the preliminary injunction.

The trial court denied plaintiffs motion for a preliminary injunction because: (1) it found that money damages would be sufficient to settle the matter if plaintiff won; (2) there was not a substantial probability that plaintiff would win; and (3) there would be a substantial injury to defendant if it had to *725 wait for the molds because it would not be able to make the parts necessary for the automobiles, which would shut down production on a number of cars.

Defendant answered plaintiff’s complaint with affirmative defenses, including that plaintiff failed to state a claim on which relief could be granted and that defendant did not proximately cause any of plaintiff’s damages. Defendant also filed a counterclaim for conversion, demanding return of the molds immediately.

The trial court decided the case for defendant. The court determined that plaintiff did not state a valid cause of action because it did not have a valid lien on the molds. The court concluded that the molds did not “belong to” Mexican under MCL 445.618, but belonged to gm, which both parties acknowledged in the stipulated facts was the owner of the molds. Therefore, the court ordered the immediate return of the molds by plaintiff to defendant.

n. STANDARD OF REVIEW

Questions of statutory inteipretation are questions of law, which are reviewed de novo. In re MCI Telecom, 460 Mich 396, 413; 596 NW2d 164 (1999).

HI. ANALYSIS

Plaintiff argues that the trial court erred in its interpretation of the words “belonging to” in MCL 445.618. We disagree.

On appeal the parties agree that the “central issue to this appeal is the trial court’s inteipretation of MCL 445.618, particularly the words ‘belonging to.’ ” The trial court determined “belonging to” meant owner *726 ship and this court reviews the trial court’s statutory interpretation de novo. In re MCI Telecom, supra at 413. In determining the meaning of a statute the following rule applies:

The primary goal of statutory interpretation is to ascertain and give effect to the intent of the Legislature in enacting a provision. Statutory language should be construed reasonably, keeping in mind the purpose of the statute. The first criterion in determining intent is the specific language of the statute. If the statutory language is clear and unambiguous, judicial construction is neither required nor permitted, and courts must apply the statute as written. However, if reasonable minds can differ regarding the meaning of a statute, judicial construction is appropriate. [Rose Hill Ctr, Inc v Holly Twp, 224 Mich App 28, 32; 568 NW2d 332 (1997) (citations omitted).]

A. STATUTORY LANGUAGE

An overview of the statutory language and scheme of the molder’s lien portion of the statute leads us to believe that the Legislature intended a molder’s hen to apply only against the absolute owner and titleholder to the mold. 1 The relevant statutory scheme is divided into three parts. Part one, MCL 445.611, defines terms including what constitutes a “customer.” Part two, MCL 445.612-445.617, is not related to the molder’s hen but discusses a time limit after which a customer loses its rights in the mold through *727 inaction, MCL 445.611-445.617. Part three concerns the molder’s lien, MCL 445.618 to 445.618d.

MCL 445.618, which defines the necessary elements for a molder’s hen, requires that a mold “belong to” the “customer” for the lien to be valid. MCL 445.618a-445.618d discuss the notice and sale mechanics and requirements for a molder’s hen.

In sum, under the statute:

• MCL 445.618 establishes a right to the hen (1) when the molder possesses the mold, (2) the mold “belongs to” the customer, and (3) for an amount owed the molder by the customer for work done with the mold. It allows the molder to keep the mold as security for payment.

• MCL 445.618a requires the molder to send the customer the amount due notice before enforcing the hen.

• MCL 445.618b allows the molder to sell the mold at public auction if the mold is still in the molder’s possession, and ninety days have passed since the molder has given the customer notice.

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Cite This Page — Counsel Stack

Bluebook (online)
681 N.W.2d 1, 260 Mich. App. 722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gateplex-molded-products-inc-v-collins-airman-plastics-inc-michctapp-2004.