Karen Kerekes v. Miller Lakeside Motel Inc

CourtMichigan Court of Appeals
DecidedApril 28, 2016
Docket325325
StatusUnpublished

This text of Karen Kerekes v. Miller Lakeside Motel Inc (Karen Kerekes v. Miller Lakeside Motel 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
Karen Kerekes v. Miller Lakeside Motel Inc, (Mich. Ct. App. 2016).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

KAREN KEREKES, UNPUBLISHED April 28, 2016 Plaintiff-Counterdefendant- Appellant,

v No. 325325 Mason Circuit Court MILLER LAKESIDE MOTEL, INC., HPK LC No. 13-000048-CZ LAKESIDE PROPERTIES, LLC, and HELEN KEREKES, Individually and as Trustee of the HELEN M. KEREKES TRUST and Successor Trustee of the LEWIS KEREKES TRUST,

Defendants-Counterplaintiffs- Appellees.

Before: SAWYER, P.J., and MURPHY and RONAYNE KRAUSE, JJ.

PER CURIAM.

In this case arising out of a familial dispute and involving claims of breach of promise and unjust enrichment, plaintiff appeals as of right the trial court’s order granting summary disposition in favor of defendants. We affirm.

Plaintiff moved to Ludington, Michigan, in July 2003, and began residing with her boyfriend, Jeffrey Kerekes, whom she eventually married in 2008. Jeffrey Kerekes is the son of Lewis and defendant Helen Kerekes. The Kerekes family had owned and operated the Lakeside Inn Motel in Ludington dating back to the 1970s, and in 1993 the ownership of the motel was placed in the name of defendant Miller Lakeside Motel, Inc. (MLMI), with Lewis Kerekes as the corporation’s sole shareholder. Jeffrey Kerekes alone served in the various director and officer positions for MLMI for about 20 years, and the Kerekes family was involved in the day-to-day operations of the motel. Plaintiff testified in her deposition that after she arrived in Ludington in July 2003, she spent the remainder of the year working at the motel on a voluntary basis, assisting with various chores. Plaintiff testified that in January 2004, she was hired by the Kerekes and began working at the motel at the pay rate of approximately $9 per hour, performing a large variety of duties associated with operating a motel, including housekeeping and maintenance. According to plaintiff, she worked anywhere from 40 up to 70 hours per week during the tourist season and fewer hours over the winter months. Plaintiff testified that she was paid the same $9 per hour in 2005 and 2006, and that, although she continued working at the motel as before, along with taking on additional new tasks, she was not paid anything from 2007 through 2009, while receiving minimal

-1- amounts, approximately $3,500 annually, in 2010 and 2011. In stark contrast to plaintiff’s testimony, Helen Kerekes testified in her deposition that plaintiff never worked at the motel, while testimony by Jeffrey Kerekes generally supported plaintiff’s version of events. Plaintiff testified that there was no documentation showing the actual hours that she had worked.

Lewis Kerekes died in February 2011, and Jeffrey Kerekes, who had been managing the motel, testified that he continued “running the operation.”1 Defendants alleged below that upon Lewis Kerekes’ death, Jeffrey Kerekes had asserted a claim that he was sole owner of the business. Helen Kerekes testified that she solely owned the business following her husband’s death. In June 2012, Helen Kerekes formed defendant HPK Lakeside Properties, LLC (HPK), which plaintiff claimed was done to undermine her husband’s operation of the business and to prevent plaintiff from receiving money rightfully owed to plaintiff.2 In September 2012, plaintiff stopped working at the motel due to, as claimed by plaintiff, tensions and disagreements between her and Helen Kerekes. And plaintiff alleged that Jeffrey Kerekes’ multiple roles in the business, including as president and sole director, ended in September 2012. In October 2012, Helen Kerekes, individually and in various fiduciary roles, reopened a probate estate and filed numerous pleadings, motions, and petitions in the probate court, including an action against plaintiff and Jeffrey Kerekes, claiming ownership of the motel. Helen Kerekes apparently obtained a temporary restraining order from the probate court, which, according to plaintiff, barred her from entering the motel grounds. The probate action remained pending at the time the instant case, which was filed in February 2013, was summarily dismissed.

In plaintiff’s amended complaint,3 she alleged four counts, including a “Lost Wage Claim,” which provided in relevant part:

11. Commencing with the year 2004 and continuing until September of 2012, [p]laintiff was employed as an employee of [MLMI] and/or HPK, but did not receive a fair and just wage for the reason that the income of [MLMI] and/or HPK was not sufficient to pay her a wage, but [MLMI] and/or HPK, through its agents and owners, made various promises that [p]laintiff would be paid a decent, living wage when income from the operation of such motel business was sufficient enough to pay her a wage.

1 Helen Kerekes testified that estate planning documents provided that Jeffrey Kerekes could continue managing the motel following his father’s death. Helen Kerekes further testified that she was involved in running the front desk and overseeing the daily operations of the motel and that she effectively managed the motel because her son “was gone most of the time” and would “[c]ome and go whenever he wanted.” 2 In an affidavit, Helen Kerekes averred that she was the sole member of HPK and that it was “a legal entity established in June 2012 to succeed the operational aspect of [MLMI] . . ., pending resolution of Probate Case No. 12-185-CZ[,]” which case we shall discuss below. 3 With respect to the instant circuit court action filed by plaintiff, the judge presiding over the probate proceedings was assigned to also preside over plaintiff’s lawsuit given his familiarity with the parties and the surrounding circumstances.

-2- 12. That [p]laintiff may have received a minor amount of compensation during the period of times mentioned herein, but such compensation was totally inadequate and against both federal and state laws.[4]

13. That [p]laintiff was induced to perform various and sundry duties as an employee of [MLMI] and/or HPK in the belief that equity and future of income of [d]efendant[s] would provide her with adequate compensation for all services rendered over the years.

...

17. That [d]efendants [MLMI] and/or HPK breached its promise, as well as the applicable Michigan and Federal Laws, to pay [p]laintiff a wage for all of the time and effort given to [d]efendant[s] by [p]laintiff to the ongoing operation of [d]efendant[s’] business while the same was seasonally in operation.[5]

18. That [p]laintiff’s computation of uncompensated time and reasonable rates of pay justifies a claim for back wages in excess of $140,000.00. [Emphasis added.]

In her deposition, plaintiff was asked to provide specifics regarding the allegations in paragraph 11 of the amended complaint that she was promised that she “would be paid a decent, living wage when income from the operation of [the] motel business was sufficient enough to pay her a wage.” Plaintiff testified that the promise was initially made in 2005 and repeated a few times annually over the years that followed, primarily by Jeffrey and Lewis Kerekes, but also Helen Kerekes at times; nothing was put in writing. Plaintiff testified that after Lewis Kerekes died, Helen Kerekes had told her that “this is all going to be yours,” which plaintiff construed as meaning that she and her husband would inherit the motel, providing them security in their retirement. Plaintiff’s deposition testimony indicated, at various points, that there was an agreement that if plaintiff helped in operating the motel for little or no compensation, thereby allowing the Kerekes to maintain the business and make much needed repairs, she, as well as her husband, would be rewarded with ownership of the business. Jeffrey Kerekes similarly testified that there was an agreement that plaintiff would not be paid the wages to which she was actually entitled, because the two of them

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Bluebook (online)
Karen Kerekes v. Miller Lakeside Motel Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karen-kerekes-v-miller-lakeside-motel-inc-michctapp-2016.