Main Street Lofts Condominium Association v. Oscar Franco Parodi

CourtMichigan Court of Appeals
DecidedNovember 21, 2023
Docket362990
StatusUnpublished

This text of Main Street Lofts Condominium Association v. Oscar Franco Parodi (Main Street Lofts Condominium Association v. Oscar Franco Parodi) 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
Main Street Lofts Condominium Association v. Oscar Franco Parodi, (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

MAIN STREET LOFTS CONDOMINIUM UNPUBLISHED ASSOCIATION, November 21, 2023

Plaintiff/Counterdefendant-Appellee,

v Nos. 362990; 362991; 363727 Oakland Circuit Court OSCAR FRANCO PARODI, also known as OSCAR LC No. 2021-190435-CH PARODI,

Defendant/Counterplaintiff/Third- Party Plaintiff-Appellant,

and

HUNTINGTON BANK,

Defendant,

CONDOMINIUM MANAGEMENT ASSOCIATES,

Third-Party Defendant-Appellee.

Before: O’BRIEN, P.J., and K. F. KELLY and M. J. KELLY, JJ.

PER CURIAM.

In these consolidated appeals, defendant Oscar Franco Parodi appeals three separate orders entered by the trial court in this action arising from defendant’s failure to pay assessments against his condominium unit, which resulted in a lien against his unit. Plaintiff, the co-owners association for the Main Street Lofts Condominium, brought this action for foreclosure of the lien and collection of the delinquent assessments.

-1- In Docket No. 362990, defendant appeals by leave granted1 the trial court’s opinion and order granting partial summary disposition in favor of plaintiff and third-party defendant Condominium Management Associates (“CMA”) and dismissing defendant’s counterclaims and third-party claims for breach of contract or breach of fiduciary duty and conversion on the ground that the claims were barred by the applicable statutes of limitation. In Docket No. 362991, defendant appeals by leave granted2 the trial court’s opinion and order granting plaintiff’s motion for summary of its foreclosure and delinquency claims against defendant. And in Docket No. 363727, defendant appeals by right the trial court’s final order granting plaintiff and CMA summary disposition of defendant’s remaining claims for quiet title and slander of title. Finding no errors warranting reversal, we affirm.

I. BASIC FACTS AND PROCEDURAL HISTORY

Plaintiff is the co-owners’ association of the Main Street Loft Condominiums in Royal Oak, Michigan. CMA performs consulting and managerial duties for plaintiff. In 2011 and 2013, the building sustained damage to its exterior walls, and plaintiff contracted with Bain Architectural Builders, LLC (“Bain”) for repairs. In connection with the repairs, plaintiff obtained a loan of $750,000 with Alliance Association Bank to pay for them. Plaintiff imposed three assessments on the 22 condominium co-owners to pay for the repairs and repay the loan: (1) in June 2012, plaintiff issued an assessment of $2,633 per unit, for a total of $57,926; (2) in 2013, plaintiff issued an assessment of $38,000 per unit, for a total of $836,000; and (3) in 2015, plaintiff issued an assessment of $56,000 per unit, for a total of $1,232,000.

Defendant purchased his unit in 2015 after the assessments were imposed. In January 2020, plaintiff informed the co-owners that another monthly assessment of $295 would be imposed on each unit to resolve a cash-flow problem. Plaintiff also informed the co-owners that the balance of its Alliance loan was $527,506. Defendant refused to pay the January 2020 assessment because he believed that the three prior assessments were sufficient to repay the Alliance loan.

After plaintiff recorded a lien against defendant’s unit, plaintiff brought this action against defendant on October 7, 2021, for payment of the outstanding assessments and foreclosure of defendant’s unit. On March 18, 2022, defendant filed counterclaims against plaintiff for breach of contract, breach of fiduciary duty, conversion, quiet title, and slander of title. Defendant alleged that plaintiff refused to account for the sums it received in the first three assessments and added CMA as a third-party defendant for the same counterclaims.

Plaintiff and CMA jointly moved for summary disposition of defendant’s claims for breach of contract, breach of fiduciary duty and conversion, arguing that these claims were barred by the respective statutes of limitation because defendant failed to allege that any wrongful act occurred within the applicable limitation periods. The trial court granted the motion, which defendant

1 Main Street Lofts Condo Assoc v Parodi, unpublished order of the Court of Appeals, entered November 17, 2022 (Docket No. 362990). 2 Main Street Lofts Condo Assoc v Parodi, unpublished order of the Court of Appeals, entered November 17, 2022 (Docket No. 362991)

-2- appeals in Docket No. 362990. Plaintiff also moved for summary disposition of its claims against defendant under MCR 2.116(C)(10), arguing that there was no genuine issue of material fact that defendant defaulted on his obligation to pay the fourth assessment and that plaintiff was entitled to foreclose on defendant’s unit. Defendant argued in opposition that the legitimacy of the fourth assessment was the pivotal issue in the case and the parties’ claims could not be resolved until discovery was complete. He anticipated that discovery would enable him to prove that the fourth assessment was not justified because plaintiff could not account for funds received in the previous three assessments. The trial court granted plaintiff’s motion, which defendant appeals in Docket No. 362991.

Plaintiff and CMA thereafter moved for summary disposition and sought dismissal of defendant’s remaining claims for quiet title and slander of title. Plaintiff and CMA argued that the trial court’s second summary disposition order collaterally estopped defendant from prevailing on his remaining claims. The trial court concluded that its prior summary disposition orders rendered defendants’ remaining claims moot and dismissed the claims on that basis. After defendant filed a claim of appeal from that order in Docket No. 363727, this Court granted defendant’s applications in Docket Nos. 362990 and 362991,3 and consolidated the three appeals.

II. COUNTERCLAIMS FOR BREACH OF CONTRACT OR BREACH OF FIDUCIARY AND CONVERSION

Defendant asserted a counterclaim and third-party claim for breach of contract and breach of fiduciary duty, and an additional claim for conversion. Defendant argues that the trial court erred by dismissing these claims on the basis that they were barred by the applicable statutes of limitation. We disagree.

A. STANDARDS OF REVIEW

We review de novo a trial court’s decision on a motion for summary disposition. West v Gen Motors Corp, 469 Mich 177, 183; 665 NW2d 468 (2003). Summary disposition may be granted under MCR 2.116(C)(7) when a claim is barred by the “statute of limitations.” A party moving for summary disposition under MCR 2.116(C)(7) may support its motion with documentary evidence, and “[t]he reviewing court must view the pleadings and supporting evidence in the light most favorable to the nonmoving party” to determine whether the claim is barred by the statute of limitations. Kincaid v Cardwell, 300 Mich App 513, 522-523; 834 NW2d 122 (2013). “In the absence of disputed facts, whether a cause of action is barred by the applicable statute of limitations is a question of law, which this Court reviews de novo.” Magee v DaimlerChrysler Corp, 472 Mich 108, 111; 693 NW2d 166 (2005).

3 In his briefs on appeal in Docket Nos. 362990 & 362991, defendant argues that he established a sufficient basis to justify interlocutory review of the trial court’s first two orders granting summary disposition. This issue is now moot given that defendant later filed a claim of appeal from the final order entered in this matter, and this Court granted defendant’s applications in Docket Nos. 362990 & 362991 and consolidated the three appeals.

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Main Street Lofts Condominium Association v. Oscar Franco Parodi, Counsel Stack Legal Research, https://law.counselstack.com/opinion/main-street-lofts-condominium-association-v-oscar-franco-parodi-michctapp-2023.