Houdini Properties, LLC v. City of Romulus

743 N.W.2d 198, 480 Mich. 1022, 2008 Mich. LEXIS 218
CourtMichigan Supreme Court
DecidedJanuary 18, 2008
Docket132018
StatusPublished
Cited by7 cases

This text of 743 N.W.2d 198 (Houdini Properties, LLC v. City of Romulus) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Houdini Properties, LLC v. City of Romulus, 743 N.W.2d 198, 480 Mich. 1022, 2008 Mich. LEXIS 218 (Mich. 2008).

Opinion

743 N.W.2d 198 (2008)

HOUDINI PROPERTIES, LLC, Plaintiff-Appellant,
v.
CITY OF ROMULUS, Defendant-Appellee.

Docket No. 132018. COA No. 266338.

Supreme Court of Michigan.

January 18, 2008.

On November 8, 2007, the Court heard oral argument on the application for leave to appeal the June 13, 2006 judgment of the Court of Appeals. On order of the Court, the application is again considered and, pursuant to MCR 7.302(G)(1), in lieu of granting leave to appeal, we REVERSE the judgment of the Court of Appeals and VACATE the Wayne Circuit Court's orders of October 19, 2005, granting summary disposition pursuant to MCR 2.116(C)(6) and (7), on the grounds of failure to comply with MCR 2.203(A) and res judicata. The plaintiff's claim of appeal pursuant to MCL 125.585(11) was not a "pleading." MCR 2.110(A). As the defendant has acknowledged, the joinder rules of MCR 2.203 therefore do not apply to a claim of appeal from the decision of a zoning board of appeals. The decision of the circuit court on appeal from the zoning board of appeals' denial of a use variance was not res judicata on the plaintiff's constitutional claims. The zoning board of *199 appeals did not have jurisdiction to decide the plaintiff's substantive due process and takings claims. Under MCL 125.585(11), the circuit court's review is confined to the record and decision of the zoning board of appeals. Therefore, the circuit court could not rule on takings issues in the plaintiff's appeal. The Court of Appeals and the Wayne Circuit Court erred in relying on the rationale of the unpublished decision in Sammut v. City of Birmingham, 2005 WL 17844 issued January 4, 2005 (Docket No. 250322). We REMAND this case to the Wayne Circuit Court for further proceedings not inconsistent with this order.

We do not retain jurisdiction.

CORRIGAN, J., dissents and states as follows:

I

I dissent from the majority's decision to reverse the judgment of the Court of Appeals and vacate the trial court's orders granting summary disposition for defendant. Although I concur that the compulsory-joinder rules of MCR 2.203(A) do not apply, I believe that the decision of the circuit court on appeal from the zoning board of appeals' (ZBA) denial of a use variance was res judicata regarding plaintiff's taking claim.

Plaintiff, a sophisticated developer, acquired an odd-sized, one-third acre lot for $25,000 near Detroit Metropolitan Airport in 1998. When plaintiff acquired the lot, the location was zoned "business transitional" and prohibited the erection of billboards.[1] Although the city later rezoned the property as "regional center," that zoning classification also prohibited billboards. Six years after plaintiff acquired the lot, it sought a use variance to erect a billboard. Plaintiff asserted various constitutional claims before the ZBA, including a claim that the denial of the use variance for a billboard was a taking. The city's planning consultant recommended that the ZBA deny the application for the following reasons:

1. There are no exceptional or extraordinary circumstances or conditions applicable to the site that are not common to other similarly zoned lots in the immediate vicinity of this subdivision. The lots are of a similar size and configuration as the other surrounding lots within this subdivision and possess the same access issue.
2. Placing a billboard in this site would convey a special privilege to this land owner that is not enjoyed by others in the district and immediate vicinity of this subdivision.
3. The billboard will not meet the 20 foot side yard setback from the north property line and will cast a shadow on the lot to the north.
4. That granting the variance will not be in harmony with the purpose and intent of the RC [regional center] District and is contrary to the recommendations of the Master Plan for development of the Metro Center area.
5. There are several other areas of the City that allow billboards.

The ZBA therefore denied the application, on the basis of the recommendation of the city's planning consultant.

Plaintiff appealed the ZBA decision in the circuit court, arguing, among other things, that the ZBA's denial of the use variance was a taking. Plaintiff later filed *200 this separate civil action, seeking damages arising from the same denial by the ZBA. Plaintiff again asserted a taking claim, a denial of substantive due process, and a 42 U.S.C. 1983 civil rights claim. The circuit court then affirmed the ZBA's denial of a variance. In doing so, the circuit court effectively ruled on plaintiff's taking claim:

[T]he fact that the property involved has very limited use doesn't mean that it's worthless or it can't be used. There are some uses that the property can be put to other than having a billboard, and it's not been shown to be totally worthless.

Then, in the instant case, the circuit court granted summary disposition for the city based on compulsory joinder and res judicata. The Court of Appeals affirmed.

In Washington v. Sinai Hosp. of Greater Detroit, 478 Mich. 412, 733 N.W.2d 755 (2007), this Court stated the requirements for application of the doctrine of res judicata:

"The doctrine of res judicata is employed to prevent multiple suits litigating the same cause of action. The doctrine bars a second, subsequent action when (1) the prior action was decided on the merits, (2) both actions involve the same parties or their privies, and (3) the matter in the second case was, or could have been, resolved in the first. This Court has taken a broad approach to the doctrine of res judicata, holding that it bars not only claims already litigated, but also every claim arising from the same transaction that the parties, exercising reasonable diligence, could have raised but did not." [Id. at 418, 733 N.W.2d 755, quoting Adair v. Michigan, 470 Mich. 105, 121, 680 N.W.2d 386 (2004) (citations omitted).]

Here, there is no question that plaintiff's ZBA appeal in the circuit court was decided on the merits and that plaintiff's ZBA appeal and taking claim involve the same parties. I disagree with the majority that plaintiff's taking claim could not have been resolved with the ZBA appeal in the circuit court. The order fails to explain why plaintiff could not have asserted its taking claim with its ZBA appeal.

The order holds that the circuit court could not rule on plaintiff's taking claim because the court's review under MCL 125.585(11) was confined to the decision of the ZBA. That MCL 125.585(11) stated that the circuit court "shall review the record and decision of the board of appeals," however, does not mean that the court is precluded from also reviewing other general jurisdiction claims involving the same facts, such as a taking claim stemming from the ZBA decision.

The majority also concludes that res judicata does not apply to plaintiff's taking claim because the circuit court's review is confined to the record created in the ZBA. When taking claims are not brought within the confines of MCL 125.585(11), however, nothing prevents the circuit court from taking additional evidence on those claims.

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Cite This Page — Counsel Stack

Bluebook (online)
743 N.W.2d 198, 480 Mich. 1022, 2008 Mich. LEXIS 218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/houdini-properties-llc-v-city-of-romulus-mich-2008.