Jacqueline Davis v. Betmgm LLC

CourtMichigan Court of Appeals
DecidedSeptember 28, 2023
Docket363116
StatusPublished

This text of Jacqueline Davis v. Betmgm LLC (Jacqueline Davis v. Betmgm 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
Jacqueline Davis v. Betmgm LLC, (Mich. Ct. App. 2023).

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

JACQUELINE DAVIS, FOR PUBLICATION September 28, 2023 Plaintiff-Appellant, 9:00 a.m.

v No. 363116 Wayne Circuit Court BetMGM, LLC, LC No. 21-006981-CK

Defendant-Appellee.

Before: BOONSTRA, P.J., and LETICA and FEENEY, JJ.

BOONSTRA, P.J.

Plaintiff appeals by right the circuit court’s order granting summary disposition in favor of defendant. We affirm.

I. PERTINENT FACTS AND PROCEDURAL HISTORY

Defendant is a Delaware corporation, licensed to conduct business in Michigan, that operates an online gaming website. In March 2021, plaintiff won a significant amount of money playing defendant’s “Luck O’ the Roulette” game. On March 23, 2021, plaintiff withdrew $100,000 of her winnings from the withdrawal window at the MGM Grand Casino in Detroit. Shortly thereafter, her account was flagged by defendant for unusual activity and suspended, leaving plaintiff unable to play or access the remaining balance of her online account— approximately $3.2 million. After conducting an investigation, defendant determined that plaintiff’s account had been erroneously credited due to an error in the game, and it “zeroed out” plaintiff’s account.

Plaintiff contacted defendant through her attorney in April 2021, requesting that the funds be released. Defendant responded that plaintiff’s account balance had been the result of an error, that plaintiff had not actually won that amount, and that she was not entitled to the remaining balance of her account.

Plaintiff filed suit in June 2021, alleging claims of fraud, conversion, and breach of contract against defendant. Plaintiff claimed that defendant had fraudulently misrepresented that its game was functioning properly and that defendant would pay the amounts won by its players, that

-1- defendant had wrongfully converted the funds in her account, and that defendant had violated its user agreement with plaintiff.

In July 2021, after filing suit in the circuit court, plaintiff filed a patron dispute with the Michigan Gaming Control Board (MGCB). Later in July, defendant filed a motion for summary disposition under MCR 2.116(C)(4), arguing that plaintiff’s claims were preempted by the Lawful Internet Gaming Act (LIGA), MCL 432.301 et seq., that the MGCB had primary jurisdiction over plaintiff’s claims, and that plaintiff had failed to exhaust her administrative remedies.

In February 2022, the deputy director of the MGCB informed plaintiff via letter that the MGCB had completed its investigation and was considering what actions to take. The letter stated, in pertinent part:

As noted in our January 24, 2022 email to your attorney, the patron complaint process exists to inform the Board of potential violations of the Lawful Internet Gaming Act and Rules by its licensees. MGCB investigations are not intended to determine the merits of any outstanding dispute or litigation between an authorized participant and the internet gaming operator and its internet gaming platform provider. Rather, the MGCB’s powers include supervising internet gaming operations, investigating alleged violations of the Act and Rules, and upon the finding of a violation of the Act or Rules, the Board may direct a licensee to take any corrective action the board considers appropriate.

Based on the information that you provided, and after a thorough investigation into the allegations in your complaint, MGCB will determine whether there was a violation by [defendant] of the Act and Rules. And if so, the appropriate remedy for such violation based on the Act and Michigan’s Administrative Procedures Act, MCL 24.201 et seq. If [defendant] is found responsible for a violation, that information would be made public after it is fully adjudicated.

The circuit court heard oral arguments on defendant’s motion on May 5, 2022. Plaintiff argued that defendant had fraudulently violated several administrative rules promulgated by the MGCB. Plaintiff referred to the letter from the MGCB deputy director, and argued that the letter indicated that the MGCB lacked jurisdiction over her claims.

In June 2022, the circuit court issued an opinion and order granting defendant’s motion on the ground that LIGA preempted plaintiff’s claims. Plaintiff subsequently moved for reconsideration. Plaintiff’s motion was accompanied by a partially-redacted letter from the MGCB to defendant’s Chief Executive Officer, which had been produced in response to a Freedom of Information Act (FOIA), MCL 15.231 et seq., request. The letter indicated that defendant had failed to comply with the MGCB’s rules requiring defendant to immediately notify the MGCB of a malfunctioning game, to advise plaintiff of her right to submit a complaint to the MGCB, and to timely provide specific information to the MGCB when requested. The letter concluded that “The Board has decided not to pursue formal disciplinary action at this time. Please be advised that any further violation of the Lawful Internet Gaming Act or Michigan Internet Gaming Rules may result in formal disciplinary action.”

-2- The circuit court denied the reconsideration motion. This appeal followed.

II. STANDARD OF REVIEW

We review de novo whether a court has subject-matter jurisdiction. Calabrese v Tendercare of Mich, Inc, 262 Mich App 256, 259; 685 NW2d 313 (2004). We review de novo a circuit court’s decision on a motion for summary disposition. Kraft v Detroit Entertainment, LLC, 261 Mich App 534, 540; 683 NW2d 200 (2004). We also review de novo issues of statutory interpretation. Id. We review for an abuse of discretion a circuit court’s decision to deny reconsideration. Woods v SLB Prop Mgmt, LLC, 277 Mich App 622, 629; 750NW2d 228 (2008).

III. ANALYSIS

Plaintiff argues that the circuit court erred by determining that her claims were preempted by LIGA, and by accordingly granting defendant’s motion for summary disposition based on lack of subject-matter jurisdiction. We disagree.

A state statute may preempt common-law claims by providing an exclusive statutory remedy. Kraft, 261 Mich App 534, 544; 683 NW2d 200 (2004). “In general, where comprehensive legislation prescribes in detail a course of conduct to pursue and the parties and things affected, and designates specific limitations and exceptions, the Legislature will be found to have intended that the statute supersede and replace the common law dealing with the subject matter.” Id. at 545 (citations omitted). Therefore, we must examine the relevant language of LIGA in order to determine whether the Legislature intended that LIGA provide the exclusive remedy for plaintiff’s claims for fraud, conversion, and breach of contract in this case. Id.; see also Papas v Gaming Control Bd, 257 Mich App 647, 658; 669 NW2d 326 (2003).

In interpreting statutory language, we seek to give effect to the intent of the Legislature. Papas, 257 Mich at 647. To determine the Legislature’s intent, we begin with the language of the statute itself and presume that the Legislature’s intended meaning was as plainly expressed by the unambiguous language of the statute. Id. Only if statutory language is ambiguous may we go beyond the words of the statute to determine the Legislature’s intent. Id. Statutes that relate to the same subject or share a common purpose should, if possible, be interpreted harmoniously. Bloomfield Twp v Kane, 302 Mich App 170, 176-177; 839 NW2d 505 (2013).

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Cite This Page — Counsel Stack

Bluebook (online)
Jacqueline Davis v. Betmgm LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacqueline-davis-v-betmgm-llc-michctapp-2023.