HARBOUR TOWNE MARINA ASS'N v. Geile

564 N.W.2d 509, 222 Mich. App. 234
CourtMichigan Court of Appeals
DecidedMay 22, 1997
DocketDocket 174473
StatusPublished
Cited by2 cases

This text of 564 N.W.2d 509 (HARBOUR TOWNE MARINA ASS'N v. Geile) 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
HARBOUR TOWNE MARINA ASS'N v. Geile, 564 N.W.2d 509, 222 Mich. App. 234 (Mich. Ct. App. 1997).

Opinion

Gribbs, P.J.

Plaintiff appeals as of right from the circuit court order determining a court officer’s fees for postjudgment collection efforts. We vacate the circuit court order and remand for further proceedings.

*238 I. FACTUAL BACKGROUND

Plaintiff Harbour Towne Marina Association obtained a judgment in the amount of $170,564 against defendant Gerald A. Geile in the Muskegon Circuit Court. Defendant did not pay, so plaintiff initiated collection efforts through its attorney’s office. Those efforts were only mildly successful, so plaintiff had a court officer search for and attempt to liquidate property of the debtor.

Plaintiff learned of several possible fraudulent transfers and filed a separate action to set them aside. As a result of the second lawsuit, plaintiff and defendant reached an agreement to compromise the claim for $100,000.

Upon hearing of the settlement, the court officer sent a bill through a private “paralegal” firm for certain fees, investigative costs, and a percentage of the settlement amount. Organized by type of expense, the court officer’s summary on the bill sought reimbursement of the following:

TOTAL HOURS

50 @ $25 HR = $1250.00

Miles 935 @ 31 = 289.85

Copies = 6.00

Photos = 10.00

Lunch = 10.94

Boat checks = 30.00

Service fee = 20.00

7% OF first $1000 = 70.00

3% OF BALANCE = 2970.00

FINAL TOTAL= $4656.79

Plaintiff filed a “Motion to Determine Court Officer’s Fees,” challenging the fees as exceeding stat *239 utory limits. Plaintiff maintained that the court officer had not successfully levied against any property of the debtor and that he was entitled only to certain minimal statutory fees ($20 for each levy attempt) and a portion of the mileage claimed. 1 Plaintiff also argued that the officer was trying to collect fees greater than those allowed by law, thereby entitling it to recover three times the excess from the court officer pursuant to a statutory penalty provision. 2

The circuit court found the fees to be reasonable and awarded the officer the full amount sought. On appeal, plaintiff challenges (1) the percentage fee awarded, which was based on the conclusion that the officer had successfully levied against property of the debtor; (2) the investigative costs awarded, which were a combination of the officer’s' (and his agents’) time and expenses; and (3) the court’s resultant decision that plaintiff was not entitled to treble damages because the officer had not attempted to collect excessive compensation.

H. PROCEDURAL IRREGULARITY

As will be discussed later, a sheriff or court officer had no common-law right to charge fees for performing his public duties. Any right to compensation *240 beyond the officer’s normal salary was considered purely statutory. Statutory fees are generally minimal. They do not reflect the actual effort that might be devoted to a legal process, but rather the fees reflect the Legislature’s wisdom concerning which flat-rate fees may be assessed under the statute and, therefore, may properly be considered taxable costs against a judgment debtor.

It should come as no surprise that judgment creditors may devote substantial resources to determining a debtor’s assets available for collection and that professionals are often hired to conduct those investigations. The law does not prohibit such arrangements, nor does it seek to limit the fees charged for such services as between the investigator and the hiring party or attorney. Thus, two compensation systems may run parallel to each other during collection efforts: minimal statutory fees that may be added to the judgment, and higher investigative fees absorbed by the creditor.

This case involves both types of fees, although the circuit court apparently did not recognize the dichotomy and treated all of the requested fees as being statutory fees. This confusion was caused by the plaintiff’s filing of a motion to determine statutory fees after receiving a bill for both types of fees. In short — and this is the root of the procedural irregularity — this case should have been split into two parts. Statutory fees should have been determined ancillary to the underlying lawsuit. If the court officer had wished to charge additional fees for nonstatutory services that are commonly rendered during judgment collection, he should have brought a separate lawsuit for breach of contract or quasi contract that would have been tried just like any other nonpayment case. *241 When plaintiffs attorney filed a motion to determine the proper costs, however, the entire dispute was thrown into court as one common action.

We believe the matter should be split into two separate actions. Therefore, we vacate the circuit court’s order for costs and fees, remand for a determination of the statutory fees that the officer may collect by virtue of his office, and dismiss the remaining claims from this ancillary action without prejudice to the court officer’s right to bring a separate action for breach of contract or quasi contract, as would any unpaid creditor performing investigative services. 3 There is some question concerning whether a court officer can form a contract for fees beyond those established by statute, a matter addressed later in this opinion.

IH. COURT OFFICERS’ FEES

There is a dearth of law concerning the subject of officers’ fees. The two main sources are nineteenth century (and older) cases and recent treatises, two of which were written by an attorney affiliated with the law firm representing the court officer in this case. 4 Although that affiliation might normally taint the source’s credibility, his treatises were written before *242 this case arose and not in contemplation of this dispute. The publications also were written from the perspective of the creditor — not the court officer. Thus, we will regard those publications as we would view other learned treatises.

Plaintiff argues that a court officer had no right to compensation at common law and, therefore, a court officer’s right to compensation beyond that received as a salary is based entirely in statute. The Michigan Supreme Court held in Fletcher v Aldrich, 81 Mich 186, 194; 45 NW 641 (1890): “The right of a sheriff to fees is derived from and depends upon the statute. At common law, he could not lawfully receive them.” It is an oversimplification to say, however, that a court officer is never entitled to compensation beyond statutory fees. The Court’s decision in Fletcher was based on the statement of the common law found in Mitchell v Reynolds, 88 Eng Rep 660; 10 Mod 130 (1711). In

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Bluebook (online)
564 N.W.2d 509, 222 Mich. App. 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harbour-towne-marina-assn-v-geile-michctapp-1997.