Joel Dorfman v. Pierce Martin LLC

CourtMichigan Court of Appeals
DecidedSeptember 26, 2017
Docket333428
StatusUnpublished

This text of Joel Dorfman v. Pierce Martin LLC (Joel Dorfman v. Pierce Martin 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
Joel Dorfman v. Pierce Martin LLC, (Mich. Ct. App. 2017).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

JOEL DORFMAN and S. DENNIS ROGERS UNPUBLISHED TRUST, September 26, 2017

Plaintiffs/Counter -Defendants, and

180 PIERCE STREET CONDOMINIUM ASSOCIATION,

Plaintiff/Counter-Defendant- Appellant,

v No. 333428 Oakland Circuit Court PIERCE MARTIN LLC and TOWNHOUSE LC No. 2011-118450-CH KITCHEN AND BAR LLC,

Defendants/Counter- Plaintiffs/Third-Party Plaintiffs- Appellees. and

MARC SCAGLIONE and S. DENNIS ROGERS,

Third-Party Defendants-Appellants, and

LAITH HANNA, IVANNA HANNA, MELISSA S. DORFMAN, SETH ROGERS, ANNA SACK, SHAINA STARK and LESLIE ROGERS,

Third-Party Defendants.

Before: BECKERING, P.J., and MARKEY and RIORDAN, JJ.

PER CURIAM.

-1- This appeal arises from a dispute between co-owners of a six-unit condominium project located at 180 Pierce Street in downtown Birmingham, Michigan. Four of the units are residential units and two are commercial units. The primary issue in this case is whether defendant Pierce Martin, LLC (hereafter “Pierce Martin”), which owned both of the commercial units, obtained the approval necessary to occupy and use part of the outdoor general common element space adjacent to one of its units for a commercial project it was developing. Appellants 180 Pierce Street Condominium Association (hereafter, “the Association”), Marc Scaglione, and Dennis Rogers appeal from the May 26, 2016 final order dismissing defendants’ counterclaims and third-party claims. Appellants challenge two prior orders, one granting defendants’ joint motion for a directed verdict, and the other granting defendants’ joint motion for summary disposition pursuant to MCR 2.116(C)(10)(no genuine issue of material fact, and moving party entitled to judgment as a matter of law). We affirm.

I. PERTINENT FACTS

The condominium building consists of two street-level commercial units of approximately 350 square feet each (Units 5 and 6), and four luxury residential units (Units 1 through 4), each occupying its own floor above the commercial units. Administration, operation, and maintenance of the building falls to the Association, which is a non-profit corporation comprised of all the condominium’s co-owners with a Board of Directors (“the Board”) that is granted broad authority by the condominium documents1 to act on behalf of the Association. In July 2010, when events underlying this dispute began, Kousay (Casey) Askar owned Unit 1, but the unit was in foreclosure and an entity controlled by Enriko (Henry) Sasson had purchased the sheriff’s deed. Dennis Rogers owned Unit 2, Laith Hanna owned Unit 3, and Marc Scaglione owned Unit 4. Pierce Martin owned Units 5 and 6. At all times relevant to this appeal, Scaglione was president of the Board, and Hanna was its vice-president.

According to evidence presented at trial, Jeremy Sasson, his brother, Jordan, and his father, Henry (collectively “the Sassons”), met with Rogers in July 2010, and Scaglione and Hanna in August 2010 to discuss their plans for the two commercial units. The Sassons proposed exterior improvements to the units that included the expansion of Unit 5 to enclose a portion of general common element2 space that was at the time being used as a flowerbed. The

1 Pursuant to Michigan’s Condominium Act, MCL 559.101 et seq., the administration of a condominium project is governed by the condominium bylaws. MCL 559.153. “Bylaws are attached to the master deed and, along with the other condominium documents, the bylaws dictate the rights and obligations of a co-owner in the condominium. See MCL 559.103(9) and (10); MCL 559.108.” Tuscany Grove Ass’n v Peraino, 311 Mich App 389, 393; 875 NW2d 234 (2015). In the instant case, “condominium documents” refers to the master deed, as amended, and the bylaws. 2 In addition to the residential and commercial units, the condominium project also consists of “common elements.” The master deed classifies common elements as limited (e.g., an owner’s balcony, an owner’s designated parking spaces), or general (e.g., the perimeter land, the parking structure, the utilities used in common areas of the building). Each co-owner has an undivided

-2- Sassons showed Rogers, Scaglione, and Hanna the same two sets of two sketches. Each set was comprised of a daytime and nighttime rendering; one set showed a red slanted awning covering the proposed expansion, and the other showed the same expansion with a black box-style awning. Rogers testified that the Sassons told him they were going to open a coffee shop, and he understood them to want to put up an awning under which their customers and the buildings’ residents could sit.

On August 19, 2010, the Sassons met with Hanna and Scaglione and showed them the renderings. Scaglione testified that he thought the Sassons were asking him whether he liked the black awning or the red one, and that he did not believe the Sassons were asking him to consider the expansion of Unit 5 onto a common element. Scaglione recalled there being no discussion of the Sassons seeking formal or informal approval from the Association to exclusively use and occupy the common element area, and that they did not offer to compensate him or any of the Association co-owners for their ownership interest in the common elements. Scaglione acknowledged on cross-examination that his memory of the meeting was “hazy” or “foggy”; in fact, he said that he did not have an independent memory of the month in which the meeting took place, and testified, “I’ve come to learn that it was August, memorized the date . . . .” He also acknowledged that he had not retained in his files any of the early e-mails exchanged regarding the Sassons’ proposal, stating that he had deleted them after receiving them and that it had not seemed important to him at the time to keep them. Scaglione further acknowledged that the meeting took place during “the depths of the great recession,” at a time when vacancies in the neighborhood were up, real estate values were down by upwards of 50%, the two commercial spaces were empty, and Unit 5 was papered over.

The day after meeting with Hanna and Scaglione, Jeremy Sasson sent Rogers, Scaglione, and Hanna separate e-mails thanking them for the meeting and stating that he looked forward to working together “to accomplish this beautiful and dramatic building enhancement.” Attached to each e-mail were the four renderings. Later that same day, Hanna sent Scaglione and Rogers a short e-mail message comprised in part of a list of nine items. Included on the list was the observation that they would be losing approximately 300 square feet of landscaping “owned by the association.” Other items on the list included the need to provide a separate water meter for the retail spaces, what affect increasing the retail area would have on the common air conditioning usage, the need for an additional garbage pickup, landscaping, maintenance, snow removal, no service of alcohol unless approved by the Association, and the enterprises’ hours of operation. Hanna testified that the items on the list were things that he and Scaglione had discussed, and that Hanna thought he, Scaglione, and Rogers needed to discuss in a conference call. Scaglione characterized the list as “how the association would interact with the restaurant if this were to happen, the coffee shop, what’s become a restaurant now.” Rogers said he “probably” received the e-mail and thought it represented conditions to defendants’ use of Unit 5. Rogers said that, to his knowledge, the Association never agreed to allow the sale and consumption of alcohol on the common element, and there had been no resolution of the nine items. Scaglione also testified that the Sassons did not “agree to give any of the items on the

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kevin Krohn v. Home-Owners Ins Co
802 N.W.2d 281 (Michigan Supreme Court, 2011)
Federated Insurance v. Oakland County Road Commission
715 N.W.2d 846 (Michigan Supreme Court, 2006)
Nowell v. Titan Insurance
648 N.W.2d 157 (Michigan Supreme Court, 2002)
Auto Club Group Insurance v. Burchell
642 N.W.2d 406 (Michigan Court of Appeals, 2002)
Gora v. City of Ferndale
576 N.W.2d 141 (Michigan Supreme Court, 1998)
Slatterly v. Madiol
668 N.W.2d 154 (Michigan Court of Appeals, 2003)
Smith v. Globe Life Insurance
597 N.W.2d 28 (Michigan Supreme Court, 1999)
Silberstein v. Pro-Golf of America, Inc
750 N.W.2d 615 (Michigan Court of Appeals, 2008)
Quinto v. Cross and Peters Co.
547 N.W.2d 314 (Michigan Supreme Court, 1996)
Tuscany Grove Association v. Peraino
875 N.W.2d 234 (Michigan Court of Appeals, 2015)
State Highway Commissioner v. Detroit City Controller
331 Mich. 337 (Michigan Supreme Court, 1951)
Michigan Education Ass'n v. Secretary of State
489 Mich. 194 (Michigan Supreme Court, 2010)
Abel v. Grossman Investments Co.
838 N.W.2d 204 (Michigan Court of Appeals, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
Joel Dorfman v. Pierce Martin LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joel-dorfman-v-pierce-martin-llc-michctapp-2017.