Hogg v. Four Lakes Association, Inc

861 N.W.2d 341, 307 Mich. App. 402
CourtMichigan Court of Appeals
DecidedOctober 23, 2014
DocketDocket 316898
StatusPublished
Cited by25 cases

This text of 861 N.W.2d 341 (Hogg v. Four Lakes Association, 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
Hogg v. Four Lakes Association, Inc, 861 N.W.2d 341, 307 Mich. App. 402 (Mich. Ct. App. 2014).

Opinion

SAAD, P.J.

Plaintiff appeals the trial court’s order that denied his motion for summary disposition and granted summary disposition to defendants. For the reasons stated in this opinion, we affirm.

I. FACTS AND PROCEDURAL HISTORY

Defendant Four Lakes Association, Inc. (Four Lakes), was established on April 30, 1968, 1 and is incorporated *404 under the summer resort owners act (the SRO), 2 which permits individuals who own homes in a resort area to “form a summer resort owners corporation for the better welfare of said community and for the purchase and improvement of lands to be occupied for summer homes and summer resort purposes . . . .” 3 The entities incorporated under the SRO essentially function in a similar manner to homeowners associations, with special powers granted by statute. 4 Four Lakes accordingly provides basic infrastructure services, including road maintenance, snow removal, and water-quality testing, for properties located in a forested lake area near Brighton. It also owns small parcels of common property. To fund its operations, Four Lakes collects dues from its members, and the individual parties to this suit, including plaintiff, have all served as officers and directors of Four Lakes at various times. Both plaintiff and the individual defendants own property within the area of operation of Four Lakes.

For reasons that are not entirely clear, plaintiff brought this suit in the Livingston Circuit Court, and alleged that Four Lakes was no longer a valid organization and should cease operations, because MCL 455.202 prohibited SRO corporations from existing for more than 30 years. He also asked the court to force Four Lakes to return any corporate funds to its members, and moved for summary disposition. 5 Defendants admitted that the term of corporate existence for Four *405 Lakes had not been renewed, but emphasized that the members were discussing new forms of association for the entity, and asserted that they would lose essential infrastructure services if the court held that Four Lakes no longer existed.

At a hearing, the trial court stated the 30-year limit in MCL 455.202 on SRO corporate existence was superseded by MCL 450.371, which allowed the term of existence of any Michigan corporation to be perpetual. After it heard additional arguments from both parties on the applicability of MCL 450.371, the trial court denied plaintiffs motion for summary disposition, and instead granted summary disposition to defendants. It noted that the 1963 Michigan Constitution essentially abrogated the SRO’s 30-year limit on SRO corporate existence when it eliminated the 1908 Constitution’s reference to temporal limits on corporate existence. Furthermore, the court stated that the Legislature intended MCL 450.371 to effect this change in public policy. Accordingly, the trial court held that MCL 450.371 superseded MCL 455.202 and allowed Four Lakes to operate in perpetuity, as specified in its articles of association.

Plaintiff appealed, and argues that the trial court erred when it held that Four Lakes was permitted by the SRO to declare that its existence was “perpetual” at the time of its incorporation and that MCL 450.371 does not apply to the term of existence for SRO corporations. He also claims that the SRO is unconstitutional because the alleged vagueness of its terms violates the Title-Object Clause, Const 1963, art 4, § 24. 6 Plaintiff did not make this constitutional argument in the trial court.

*406 II. STANDARD OF REVIEW

A trial court’s ruling on a motion for summary disposition is reviewed de novo, and we view the evidence in the light most favorable to the nonmoving party. Joliet v Pitoniak, 475 Mich 30, 35; 715 NW2d 60 (2006). Matters of statutory interpretation are reviewed de novo. In re McEvoy, 267 Mich App 55, 59; 704 NW2d 78 (2005). “The first step when interpreting a statute is to examine its plain language, which provides the most reliable evidence of [legislative] intent.” Ter Beek v City of Wyoming, 495 Mich 1, 8; 846 NW2d 531 (2014). When the language of a statute is unambiguous, “we presume that the Legislature intended the meaning clearly expressed — no further judicial construction is required or permitted, and the statute must be enforced as written.” Huron Mountain Club v Marquette Co Rd Comm, 303 Mich App 312, 324; 845 NW2d 523 (2013) (quotation marks and citation omitted).

As noted, plaintiff did not raise his constitutional arguments at trial. “Issues raised for the first time on appeal are not ordinarily subject to review.” Booth Newspapers, Inc v Univ of Mich Bd of Regents, 444 Mich 211, 234; 507 NW2d 422 (1993). We may elect to review such issues when they involve questions of law, and the facts necessary for their resolution have been presented. Smith v Foerster-Bolser Constr, Inc, 269 Mich App 424, 427; 711 NW2d 421 (2006). Our review of these unpreserved issues is limited to plain error. Kloian v Schwartz, 272 Mich App 232, 242; 725 NW2d 671 (2006).

III. ANALYSIS

A. THE SRO AND MCL 450.371

MCL 450.371 provides:

*407 Notwithstanding any other provision of law, the term of existence of every domestic corporation heretofore incorporated or hereafter incorporating under any law of this state may be perpetual or may be for a limited period of time, as fixed by its articles, or amendment thereto made before the expiration of its corporate term, or by a certificate of extension of its corporate term, or by a certificate of renewal of its corporate term. [Emphasis added.]

Accordingly, any Michigan entity that is incorporated under any Michigan law may exist perpetually or may exist “for a limited period of time, as fixed by its articles . ...” Id. By its plain language, then, the mandate in MCL 450.371: (1) applies to corporations incorporated under the SRO, and (2) supersedes the provision of the SRO (namely, MCL 455.202) that imposed a 30-year limit on the existence of any entity incorporated under the SRO. 7

Four Lakes, which is located in Michigan, was incorporated in 1968 under the SRO. Accordingly, it is a “domestic corporation” incorporated “under [a] law of *408 this state,” and it thus may exist in perpetuity or for a limited period of time “as fixed by its articles.” MCL 450.371. Four Lakes’ articles specify that its “term of. . . corporate existence is perpetual.” Four Lakes is therefore in existence and may carry out the functions specified in its articles.

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Bluebook (online)
861 N.W.2d 341, 307 Mich. App. 402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hogg-v-four-lakes-association-inc-michctapp-2014.