Pcj Investments LLC v. Richard Rowhouses Association

Michigan Court of Appeals·Decided August 13, 2026·No. 371319·Unpublished

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

PCJ INVESTMENTS, LLC, UNPUBLISHED August 13, 2026

Plaintiff-Appellee, 8:37 AM

v No. 371319 Wayne Circuit Court

RICHARD ROWHOUSES ASSOCIATION, LC No. 21-009946-CB

Defendant/Cross-Defendant-Appellee,

and

TRIPLE PROPERTIES DETROIT, LLC,

Defendant/Cross-Plaintiff-Appellant.

Before: ACKERMAN, P.J., and BAZZI and LIEVENSE, JJ.

PER CURIAM.

In this action involving the reversion of condominium units, defendant/cross-plaintiff, Triple Properties Detroit, LLC (Triple), appeals as of right the order granting in part and denying in part plaintiff’s, PCJ Investments, LLC, motion to compel compliance with a court order requiring Triple to make a second settlement payment. Relatedly, Triple challenges (a) the order entering a written settlement agreement between plaintiff and Triple, (b) the prior order denying its motion for summary disposition and instead granting summary disposition in favor of defendant/cross-defendant, Richard Rowhouses Association (the Association), and (c) an order entered after the filing of this claim of appeal, which granted plaintiff’s motion to enforce the settlement agreement and ordered the release of the second settlement payment from escrow to plaintiff. We affirm.

I. BASIC FACTS AND PROCEDURAL HISTORY

This matter stems from the development of Richard Rowhouses, a condominium project, and whether units 13 through 26 (the subject units) reverted to the general common elements 10 years after construction commenced because of a lack of completion of the construction of those

units. On August 13, 2003, a master deed was executed by the developer, Westminster Abbey Homes, LLC, under the Condominium Act, MCL 559.101 et seq. The development was to be “administered” by the Association, a nonprofit corporation. The development was to have three buildings and 42 total units, and units 7 through 42 were labeled as “need not be built.” As it existed at the time, MCL 559.167(3)1 stated, in relevant part:

[I]f the developer has not completed development and construction of units or improvements in the condominium project that are identified as “need not be built” during a period ending 10 years after the date of commencement of construction by the developer of the project, the developer, its successors, or assigns have the right to withdraw from the project all undeveloped portions of the project not identified as “must be built” without the prior consent of any co-owners, mortgagees of units in the project, or any other party having an interest in the project . . . . If the developer does not withdraw the undeveloped portions of the project from the project before expiration of the time periods, those undeveloped lands shall remain part of the project as general common elements and all rights to construct units upon that land shall cease.

On March 16, 2004, the developer recorded a notice of commencement of the construction.

On October 1, 2009, Bank of America, N.A. (BOA) foreclosed on a mortgage and obtained a sheriff’s deed, which conveyed the subject units to BOA for $48,053.90. On October 18, 2011, BOA assigned its developer rights to the subject units to Triple for $42,350.

In September 2015, Triple entered into a purchase agreement to sell the units to the Ferlito Group for $140,000. In March 2016, counsel for the Association’s board of directors, Gregory J. Fioritto, sent a letter to Michael Ferlito regarding the “potential development” of the subject units, and a proposed first amendment to the master deed which would be necessary to reinstate the subject units. In October 2016, the Association’s co-owners held a meeting discussing the project. In December 2016, Fioritto sent the Association’s co-owners a proposed first amendment to the master deed. Any amendment required the approval of two-thirds of the Association’s co-owners. In January 2017, Fioritto e-mailed Alex Loewy, an employee of Triple and assistant to its owner, Andreas Apostolopoulos, stating that the proposal passed. However, the sale of the subject units to the Ferlito Group never occurred. Fioritto did not record the first amendment to the master deed.

In August 2019, Triple, through Andreas Apostolopoulos, and Christos Karatsikakis, “on behalf of an entity to be formed,” entered into a purchase and sale agreement for the subject units for $420,000. In November 2019, Triple purportedly conveyed the subject units to plaintiff. In December 2019, Ian Fairbrother, an employee of plaintiff, e-mailed members of the Association’s board of directors regarding the sale. In February 2020, Tiffany Semanisin, a community manager

1 This version of the statute was effective during this case. Any reference to MCL 559.167 is to this version of the statute, unless otherwise noted. MCL 559.167 was amended effective September 21, 2016. See MCL 559.167, as amended by 2016 PA 233. However, the amendment does not apply retroactively. See Cove Creek Condo Ass’n v Vista Land & Home Dev, LLC, 330 Mich App 679, 697-701; 950 NW2d 502 (2019).

at LandArc, which was the Association’s property manager, arranged a meeting with Fairbrother and the Association’s board of directors. An “informal introduction” meeting between plaintiff’s representatives and members of the Association’s board of directors occurred in March 2020.

In December 2020, Kyle Knopsnyder, senior claims counsel at North American Title Insurance Company (NATIC), stated there was a potential issue regarding plaintiff’s ability to develop the subject units because they “converted into common elements.” Knopsnyder requested the Association execute a quitclaim deed conveying the subject units to plaintiff. In April 2021, counsel for the Association sent a letter to Knopsnyder stating, under MCL 559.167(3), the subject units reverted to the Association on March 16, 2014.

Plaintiff filed a complaint to quiet title in the subject units. Triple filed a cross-claim against the Association, seeking declaratory relief on the grounds that the Association never possessed an interest in the subject units, and that no reversion occurred. The Association moved for summary disposition against plaintiff and Triple under MCR 2.116(C)(8) and (C)(10), asserting the subject units reverted to the general common elements in 2014. Because Triple never completed construction of the subject units, it lost its rights to them before its purported sale to plaintiff. The Association sought dismissal of Triple’s cross-claim seeking declaratory relief, asserting the current version of MCL 559.167 did not apply retroactively. Plaintiff opposed the Association’s motion for summary disposition, arguing the subject units never reverted to the Association. Triple also opposed the Association’s motion for summary disposition, contending the subject units never reverted to the Association, and, regardless, the first amendment to the master deed reinstated the subject units.

Plaintiff filed a first amended complaint, which included additional counts against Triple.

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