Gravity Imaging LLC v. 814 Berkley LLC

CourtMichigan Court of Appeals
DecidedAugust 18, 2022
Docket357548
StatusUnpublished

This text of Gravity Imaging LLC v. 814 Berkley LLC (Gravity Imaging LLC v. 814 Berkley 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
Gravity Imaging LLC v. 814 Berkley LLC, (Mich. Ct. App. 2022).

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

GRAVITY IMAGING, LLC, formerly known as UNPUBLISHED HORIZON IMAGING, LLC, August 18, 2022

Plaintiff/Counterdefendant-Appellant,

v No. 357548 Oakland Circuit Court 814 BERKLEY, LLC, LC No. 2020-182922-CB

Defendant/Counterplaintiff-Appellee.

Before: SAWYER, P.J., and SHAPIRO and REDFORD, JJ.

PER CURIAM.

In this action alleging breach of a commercial lease and a license agreement for use of a parking lot, plaintiff, Gravity Imaging, LLC, appeals as of right the May 28, 2021 stipulated judgment. Plaintiff contends that the trial court erred by granting summary disposition in favor of defendant, 814 Berkley, LLC, by dismissing plaintiff’s complaint pursuant to MCR 2.116(C)(8), and by granting summary disposition in favor of defendant on defendant’s counterclaim pursuant to MCR 2.116(C)(10). Because the trial court correctly concluded that the lease did not require defendant to initiate proceedings under the summary proceedings statute, MCL 600.5701 et seq., and the license agreement did not grant plaintiff a possessory interest in the parking lot, we affirm.

I. BACKGROUND

On August 31, 2010, defendant’s predecessor, Berkley Twelve Associates, LLC (Berkley 12), as landlord, leased 1,344 square feet of office space to plaintiff’s predecessor, Horizon Imaging LLC (Horizon), as tenant, for use as a medical imaging office. The lease provided that, in the event of a default by the tenant, the lease could be terminated by delivery of a notice of termination, with the landlord “entitled to forthwith commence an action in summary proceedings to recover possession of the premises.” That same day, Berkley 12 and Horizon signed a license agreement allowing Horizon, as licensee, to use a portion of the parking lot for parking a mobile MRI trailer. The license agreement explicitly provided that it was made in conjunction with the lease, that the default provisions of the lease applied to the license, and that Horizon’s use of the

-1- license area was “permissive only” and “shall not give rise to any leasehold, easement, ownership or other right or interest . . . .”

Attachments to the lease and the license agreement granted the tenant the right to cancel both the license agreement and the lease after three years by providing 90 days advance notice to the landlord; in addition, the attachments provided that if the tenant failed to vacate the licensed premises or leave the leased or licensed premises in the condition required in the lease or license agreement by the date stated in the termination notice, the tenant “shall be deemed to be a trespasser and Landlord and its successors and assigns may institute eviction proceedings against Tenant and Tenant hereby knowingly and irrevocably waives any and all defenses it may have to such eviction proceedings.” At some point plaintiff purchased the MRI business from Horizon and, after two extensions, the lease and license agreement were scheduled to expire on December 31, 2019. In April 2019, defendant purchased the property from Berkley 12. With the purchase, defendant assumed all “right, title and interest in and to the Leases and all other transferable licenses, contracts, permits and agreements affecting the Property . . . .”

In an e-mail dated December 6, 2019, defendant informed plaintiff that it was negotiating with a child care provider to lease the majority of the building’s first floor, which would require alterations to the parking lot, rendering it unsuitable for parking the mobile MRI trailer. On December 9, 2019, plaintiff and defendant agreed to a joint amendment to the lease and parking lot license. This amendment extended the term of both the lease and the license to May 31, 2020.

Plaintiff continued to occupy the premises past the expiration date of May 31, 2020, and paid rent for June and July 2020. On July 31, 2020, defendant mailed a notice to quit informing plaintiff that the leased premises must be vacated by August 31, 2020. A letter accompanying the notice informed plaintiff that the mobile MRI trailer must be removed from the parking lot no later than August 15, 2020, in order to accommodate defendant’s plan to repave the lot. By Sunday, August 16, 2020, defendant had already begun demolition of the parking lot.

On August 14, 2020, plaintiff filed this action in the Oakland Circuit Court, seeking damages and injunctive relief, alleging that the case arose from a “leasing agreement and licensing agreement that was merged in December 2019,” and that despite serving a “Notice to Quit” the premises by August 31, 2020, defendant had demanded that plaintiff immediately vacate the parking lot and sent a representative to cut power to the premises on Friday, August 14, 2020. In Count I, plaintiff contended that the parties had agreed that any dispute over possession of the property would be resolved through the eviction process, defendant’s conduct constituted a breach of that agreement, and plaintiff would be unable to conduct business, causing loss of revenue and other damages. In Count II, plaintiff contended that defendant had failed to comply with Michigan law regarding eviction from real property and had violated the antilockout statute, MCL 600.2918. In Count III, plaintiff contended that defendant’s attempt to take possession of the premises violated Michigan’s summary proceedings statute, MCL 600.5714. Plaintiff requested entry of a judgment exceeding $25,000 and a temporary restraining order (TRO) or preliminary injunction to prevent defendant from taking possession of the parking lot and office space. Plaintiff did not attach a copy of the lease or license agreement, but did attach a copy of the 2019 joint amendment.

On the same day, plaintiff filed an emergency ex parte motion for a TRO and preliminary injunction, asserting that plaintiff would be irreparably harmed by the loss of use of its business

-2- and possession of the property and would suffer loss of revenue, loss of reputation in the community, and damage to its credit and ability to borrow money. In a supporting brief, plaintiff contended that the parties’ agreement required the use of summary eviction proceedings, defendant had failed to do so, and plaintiff was likely to succeed on the merits. Plaintiff also contended that it would suffer irreparable harm, it had no adequate remedy at law, and it would be unjust to allow defendant to proceed with eviction contrary to state law. Plaintiff requested immediate entry of a TRO and a hearing on its request for entry of a preliminary injunction.

On August 17, 2020, defendant filed a response to plaintiff’s motion, asserting that plaintiff’s motion was moot because the parking lot had already been removed and contending that plaintiff was not likely to succeed on the merits because, under Michigan law, tenants have no possessory interest in common areas and both the lease and license agreement expressly disclaimed any right of plaintiff to possession of the parking lot. That same day, the trial court, proceeding without oral argument pursuant to MCR 2.119(E)(3), signed an order denying plaintiff’s motion “pursuant to MCR 3.310(A) and (B), for lack of merit in the grounds presented.”

In lieu of answering the complaint, on September 8, 2020, defendant filed a motion for summary disposition under MCR 2.116(C)(8), contending that plaintiff had failed to assert a claim upon which relief could be granted and requesting dismissal of plaintiff’s claims, with prejudice.

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Bluebook (online)
Gravity Imaging LLC v. 814 Berkley LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gravity-imaging-llc-v-814-berkley-llc-michctapp-2022.