Raymond Guzall III v. David Warren

CourtMichigan Court of Appeals
DecidedJuly 8, 2021
Docket352004
StatusUnpublished

This text of Raymond Guzall III v. David Warren (Raymond Guzall III v. David Warren) 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
Raymond Guzall III v. David Warren, (Mich. Ct. App. 2021).

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

RAYMOND GUZALL III and RAYMOND UNPUBLISHED GUZALL III, PC, July 8, 2021

Plaintiffs-Appellants,

v No. 352004 Wayne Circuit Court DAVID WARREN and JOELSON ROSENBERG, LC No. 18-000343-CB PLC,

Defendants,

and

BARRY A. SEIFMAN and BARRY A. SEIFMAN, PC,

Defendants-Appellees.

Before: REDFORD, P.J., and BORRELLO and TUKEL, JJ.

PER CURIAM.

Plaintiffs, Raymond Guzall III, and Raymond Guzall III, PC, appeal as of right the trial court’s order awarding attorney fees and costs to defendants, Barry A. Seifman and Barry A. Seifman, PC.1 The trial court awarded the attorney fees pursuant to this Court’s prior order, imposing sanctions for plaintiffs’ previous vexatious appeal in this Court in Docket No. 344507 and remanding for a determination of an appropriate award of sanctions. Guzall v Warren, unpublished order of the Court of Appeals, entered September 12, 2019 (Docket Nos. 344507 & 345190). On appeal, plaintiffs challenge this Court’s order awarding sanctions to defendants and the amount of attorney fees awarded to defendants. We disagree and, for the reasons stated in this opinion, affirm the trial court’s attorney fee award to defendants.

1 The other defendants, David Warren and Joelson Rosenberg, PLC, are not parties to this appeal.

-1- I. UNDERLYING FACTS

A. BACKGROUND THROUGH THE PRIOR APPEAL

This case arises from a dispute over attorney fees in a civil employment discrimination case; the background facts can be found in this Court’s prior opinions. As summarized in Harris v Greektown Superholdings, Inc, unpublished per curiam opinion of the Court of Appeals, issued August 20, 2015 (Docket No. 322088) (Harris I), pp 1-2:

In March 2012, [Diane] Harris, assisted by attorney Raymond Guzall III, filed a lawsuit against Greektown Casino, LLC, Greektown Superholdings, Inc., and Carolyn Simancik (collectively “Greektown Casino”), asserting claims of racial discrimination, hostile work environment, age discrimination, retaliation, and intentional infliction of emotional distress. In November 2013, a jury returned a verdict in favor of Harris for $600,066. Thereafter, Harris filed a motion requesting entry of judgment and an award of attorney fees and costs.

After the jury returned its verdict but before the trial court entered judgment or awarded attorney fees or costs, appellees, Barry A. Seifman and Barry A. Seifman, P.C., formerly known as Seifman & Guzall, P.C., filed a motion to intervene in Harris’s case, asserting a right to any attorney fees awarded. According to appellees, in 2006, Guzall and appellees executed a stockholder agreement expressly providing that in the event Guzall ended his employment with Seifman & Guzall, P.C., all client files would remain the property of the firm. In February 2012, Guzall tendered notice that he was leaving the firm. Appellees asserted that when Guzall left, he took several client files and court documents, including the file regarding Harris’s case, in violation of the 2006 stockholder agreement.

Shortly after Guzall left the firm, appellees initiated litigation against him in the Oakland Circuit Court. In March 2012, the Oakland Circuit Court issued a stipulated order stating, “Any attorney fees and or cost reimbursements . . . paid to Plaintiffs or Defendants, whether directly or indirectly, from or on behalf of any of the following clients, shall be deposited into an interest bearing escrow account maintained by the Court.” Harris was not listed among the “following clients” covered by the Oakland Circuit Court’s March 2012 order. According to appellees, Harris was not listed because Guzall improperly concealed his relationship with Harris. Therefore, appellees argued, intervention in Harris’s case was necessary to protect their interest in any attorney fees awarded.

Following a hearing, the trial court granted appellees’ motion to intervene and ordered that any attorney fees awarded would be held in escrow with the Wayne Circuit Court. In January 2014, appellees requested that the trial court refer the issue of entitlement to attorney fees to the Oakland Circuit Court, where the other disputes between Guzall and appellees were pending. The trial court granted appellees’ motion and referred the attorney fee dispute to the Oakland Circuit Court. Thereafter, the [c]ourt entered judgment on Harris’s jury verdict, awarded $50,000 in attorney fees, and dismissed the case with prejudice.

-2- The plaintiff, Harris, appealed as of right, arguing that it was improper for the trial court to have allowed appellees to intervene in order to assert an interest in any of the awarded attorney fees. Id. at 2. This Court agreed that appellees did not have standing to intervene, but it also ruled that because Harris lacked standing to appeal, it could not grant her the relief she sought. Id. at 3- 4. This Court determined that because Harris was not an aggrieved party, she could not contest a matter that did not adversely affect her. Id. at 4. This Court noted that attorney Guzall was the aggrieved party with standing to appeal, but he did not. Id. As a result, this Court held that it lacked jurisdiction over the appeal and dismissed it. Id.

After this Court dismissed the appeal,

the trial court scheduled and began conducting an evidentiary hearing to determine the distribution of attorney fees in the action, rejecting numerous arguments posed by Guzall before and during the hearing. With a motion to disqualify the trial judge pending, Guzall refused to appear at a scheduled continuation of the hearing until the disqualification motion was heard and decided. In response, the trial court held Guzall in contempt, striking all of his filings related to the attorney-fee dispute, defaulting him for his contemptuous conduct, and releasing the disputed attorney fees, which were being held in escrow, to Seifman. [Harris v Greektown Superholdings, Inc., unpublished per curiam opinion of the Court of Appeals, issued October 31, 2017 (Docket No. 331652) (Harris II), p 2.]

Guzall and Harris appealed, and this Court affirmed the finding of contempt and the associated sanctions striking Guzall’s pleadings and defaulting him. Id. at 3-4.2

While Guzall’s application for leave to appeal this Court’s decision in Harris II was pending in the Supreme Court, Guzall filed this action.[3] Guzall’s complaint accused all defendants of (1) tortious interference with contract, (2) tortious interference with business relationship or expectancy, (3) statutory conversion, (4) unjust enrichment, (5) breach of contract, (6) conspiracy, and (7) intentional infliction of emotional distress. In response, Seifman and Warren each filed a motion for summary disposition under MCR 2.116(C)(7), (8) and (10), arguing that Guzall’s claims were barred by collateral estoppel, that this suit was an impermissible collateral attack on the trial court’s contempt order, that Guzall’s own wrongful conduct barred his attempts at recovery, and that Guzall had failed to state a claim on which relief could be granted. Defendants additionally requested that the trial court sanction Guzall for filing a frivolous pleading. Dispensing with oral argument, the trial court agreed with defendants that summary disposition was warranted, finding Guzall’s claims to be barred by collateral estoppel and the collateral attack doctrine, as well as legally deficient. The trial court also held that Guzall’s complaint was clearly frivolous and awarded sanctions under MCR 2.114

2 The Michigan Supreme Court declined to grant leave to appeal. Harris v Greektown Superholdings, Inc., 503 Mich 871 (2018).

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Raymond Guzall III v. David Warren, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raymond-guzall-iii-v-david-warren-michctapp-2021.