Gerald Scott Usiondek v. Frank S Peters

CourtMichigan Court of Appeals
DecidedApril 16, 2015
Docket319701
StatusUnpublished

This text of Gerald Scott Usiondek v. Frank S Peters (Gerald Scott Usiondek v. Frank S Peters) 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
Gerald Scott Usiondek v. Frank S Peters, (Mich. Ct. App. 2015).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

GERALD SCOTT USIONDEK and ELIZABETH UNPUBLISHED USIONDEK, April 16, 2015

Plaintiffs/Counterdefendants- Appellees,

v No. 319701 Monroe Circuit Court FRANK S. PETERS, ARDA A. PETERS, JAMES LC No. 11-030341-CH T. NUNN, PEARL NUNN, JOHN FAZEKAS, MARIA FAZEKAS and WILLIAM FASECAS,

Defendants,

and

BEATRICE FASECAS, KEVIN FASECAS and SHANNON ION,

Defendants/Counterplaintiffs- Appellants.

Before: HOEKSTRA, P.J., and MARKEY and DONOFRIO, JJ.

PER CURIAM.

Beatrice Fasecas, Kevin Fasecas and Shannon Ion, appeal by right the trial court’s judgment denying their motion for summary disposition and granting summary disposition and quieting title to real property in favor of Gerald Scott Usiondek and Elizabeth Usiondek. They also challenge the trial court’s prior orders granting a default judgment quieting title in favor of the Usiondeks to the real property at issue against Frank S. Peters, Arda M. Peters, James T. Nunn, Pearl Nunn, John Fazekas and Maria D. Fazekas, identified as earlier owners in the chain of title, and the trial court’s denial of their motion to set aside the default. We affirm.

This litigation arises from a dispute over ownership of real property referred to as “the River Flats” area. The property borders the Huron River and is contiguous to the property the Usiondeks owned. Apparently, the River Flats area is submerged several months of the year by the waters of the Huron River. When the waters recede, however, the area is exposed and accessible and is situated between the Usiondeks’ property and the Huron River. Put simply, the

-1- Usiondeks claim that as riparian land owners that the River Flats area is part of their property, which they allege extends to the center of the Huron River. In contrast, Beatrice Fasecas, Kevin Fasecas and Shannon Ion claim that the area was reserved, having initially been part of a larger parcel of land and, despite the subsequent subdivision of the parcel, comprises a “no man’s land” available “for everyone’s enjoyment.”

Beatrice, Kevin and Shannon assert the trial court erred in denying their motion to set aside the default against Frank S. Peters, Arda A. Peters, James T. Nunn, Pearl Nunn, John Fazekas, and Maria Fazekas. They argue the existence of procedural errors in the failure to serve their counsel with the pleadings and to properly identify the real parties in interest. They further contend that as possible heirs of John Fazekas they have an interest in the disputed property.

Issues of law, such as the interpretation of court rules, are subject to review de novo. Huntington Nat’l Bank v Ristich, 292 Mich App 376, 383; 808 NW2d 511 (2011). “We review for an abuse of discretion a trial court’s decision on a motion to set aside a default and whether to grant a default judgment. A trial court abuses its discretion when it reaches a decision that falls outside the range of principled outcomes.” Id. (citations omitted).

Generally, it is the policy of this state to not set aside properly entered defaults and default judgments even though the law also favors the determination of claims on the merits. Alken–Ziegler, Inc v Waterbury Headers Corp, 461 Mich 219, 229; 600 NW2d 638 (1999). “A motion to set aside a default or a default judgment . . . shall be granted only if good cause is shown and an affidavit of facts showing a meritorious defense is filed.” MCR 2.603(D)(1). The good cause requirement may be shown by demonstrating “a substantial defect or irregularity in the proceedings” or “a reasonable excuse for failure to comply with the requirements which created the default.” Alken–Ziegler, 461 Mich at 230.

The Usiondeks acknowledge that through oversight counsel for Beatrice, Kevin and Shannon was not provided notice of the default. They emphasize, however, that the default does not encompass these parties and does not negatively affect their rights as their claims continued to be litigated to conclusion before the trial court. Although counsel for Beatrice, Kevin and Shannon was not counsel of record for the defaulted individuals, it is clear that the failure to serve them was contrary to the requirement of MCR 2.603(A)(2), which states, in relevant part: “Notice that the default has been entered must be sent to all parties who have appeared and to the defaulted party.” Nevertheless, it is questionable whether Beatrice, Kevin and Shannon have standing to set aside the default against the other defendant. A party must have a legally protected interest that is in jeopardy of being adversely affected to have standing. Barclae v Zarb, 300 Mich App 455, 483; 834 NW2d 100 (2013). In this instance, there has been no demonstration that the property rights Beatrice, Kevin and Shannon claimed have been adversely affected by the default of the other defendants, particularly as their claims were allowed to proceed in the trial court.

In addition, MCR 2.603(B)(1) provides:

a) A party requesting a default judgment must give notice of the request to the defaulted party, if

-2- (i) the party against whom the default judgment is sought has appeared in the action;

(ii) the request for entry of a default judgment seeks relief different in kind from, or greater in amount than, that stated in the pleadings; or

(iii) the pleadings do not state a specific amount demanded. [Emphasis added.]

We interpret court rules by applying the same principles that govern statutory interpretation. In re Sanders, 495 Mich 394, 404; 852 NW2d 524 (2014). The goal when interpreting a court rule is to give effect to the rule maker’s intent as expressed in the plain and ordinary meaning of the words used in the rule. If the terms of the rule are not ambiguous, we need only enforce the rule as written. See Peterson v Fertel, 283 Mich App 232, 235-236; 770 NW2d 47 (2009). MCR 2.603(B)(1) requires notice only to parties that are in default, which, here, does not include Beatrice, Kevin and Shannon. The parties subject to the default in this matter never appeared in the action, nor did any counsel on their behalf. Moreover, the relief sought of quieting title is consistent with the relief requested in the Usiondeks’ pleadings.

In accordance with MCR 2.603(D)(1), a motion to set aside a default or default judgment “shall be granted only if good cause is shown and an affidavit of facts showing a meritorious defense is filed.” A trial court should consider the totality of the circumstances in determining whether the defaulting party has established good cause and a meritorious defense. Shawl v Spence Bros, Inc, 280 Mich App 213, 236-237; 760 NW2d 674 (2008). “Good cause” can be demonstrated by a reasonable excuse for a failure to comply with the requirements that created the default. Id. at 221 (quotation marks and citations omitted). Factors found to be relevant in determining whether a party has demonstrated good cause have encompassed: (1) whether there was a complete failure to respond or a mistake in determining the deadline for a response, (2) the circumstances underlying the failure to file or timely respond, and (3) whether the failure was knowing or intentional. Id. at 238. A meritorious defense is established by providing an affidavit of facts delineating the defense. MCR 2.603(D)(1). To constitute good cause to set aside a default, a procedural error must have actually prejudiced the party that was defaulted. Alycekay Co v Hasko Constr Co, Inc, 180 Mich App 502, 506-507; 448 NW2d 43 (1989); MCL 600.2315(11) (providing that a party must show prejudice to obtain relief from a default or default judgment). As noted, the parties seeking to set aside the default were not defaulted.

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Gerald Scott Usiondek v. Frank S Peters, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerald-scott-usiondek-v-frank-s-peters-michctapp-2015.