S Baxter Jones v. Esurance Insurance Co

CourtMichigan Court of Appeals
DecidedOctober 25, 2018
Docket339410
StatusUnpublished

This text of S Baxter Jones v. Esurance Insurance Co (S Baxter Jones v. Esurance Insurance Co) 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
S Baxter Jones v. Esurance Insurance Co, (Mich. Ct. App. 2018).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

S. BAXTER JONES, UNPUBLISHED October 25, 2018 Plaintiff-Appellant,

v No. 339410 Wayne Circuit Court ESURANCE INSURANCE CO., LC No. 15-015754-CZ

Defendant-Appellee.

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

PER CURIAM.

Plaintiff appeals as of right the trial court’s order granting defendant’s motion for summary disposition on grounds of res judicata. Because plaintiff failed to properly invoke the trial court’s jurisdiction by filing a complaint, we vacate the trial court’s order and remand for further proceedings consistent with this opinion.

This case arises out of an automobile accident that occurred in Shelby County, Kentucky on August 8, 2005, between plaintiff, a Michigan resident, and Christopher K. Leet, a Kentucky resident. Plaintiff filed a cause of action in Kentucky on July 25, 2007, in which it named defendant and Leet as defendants, and sought “underinsured motorist benefits and uninsured motorist benefits and personal injury protection benefits” from defendant. A lengthy litigation in Kentucky ensued.

While the case in Kentucky was ongoing, plaintiff filed a complaint in Michigan on January 22, 2013, seeking PIP benefits from defendant stemming from the 2005 Kentucky accident. In the Michigan action, defendant moved for summary disposition, arguing that dismissal was required under MCR 2.116(C)(6)1 because the ongoing litigation in Kentucky included the same claim between the same parties. The case went before Judge Daphne Means Curtis, who held a hearing on defendant’s motion on March 7, 2014. At the hearing, plaintiff’s counsel represented that it was attempting to “transfer” the Kentucky case to Michigan, and

1 Under MCR 2.116(C)(6), summary disposition is appropriate if “[a]nother action has been initiated between the same parties involving the same claim.” See Valeo Switches and Detection Sys v ECom Inc, 272 Mich App 309, 319; 725 NW2d 309 (2006).

-1- asked that defendant’s motion be held in abeyance until “there is a determination made in Kentucky.” Judge Curtis decided to take defendant’s motion “under advisement to see whether or not the case from Kentucky is transferred here.” Over six months after Judge Curtis entered this ruling, the parties had made no progress, so on September 25, 2014, Judge Curtis granted defendant’s motion.

Nearly one year after Judge Curtis entered the order dismissing the Michigan action, the Kentucky trial court entered an order “transferring” the Kentucky case to Michigan. The order stated that its prior orders related to whether defendant was entitled to reimbursement of PIP benefits were “VACATED, SET ASIDE, AND OF NO FURTHER EFFECT,” and that the issues were to be decided “in the Wayne County Circuit Court after transfer.” It further ordered that Michigan law applied “to all PIP issues between these parties” and that those issues were to “be decided by the Wayne County Circuit Court, applying Michigan law in the Michigan forum.” It also ordered that plaintiff’s “defenses to the statutory claim are preserved.” The order also stated that plaintiff’s objections to an amended counter-complaint previously filed by defendant were withdrawn, that the amended counter-complaint was accepted for filing, and that plaintiff’s defenses to the counterclaim were preserved. The order also provided as follows:

IT IS FURTHER ORDERED that this updated Order and its rulings concerning the applications of Michigan law to this dispute will apply to this case after transfer to Wayne County and to the presently pending case in the State of Michigan, Wayne County Circuit Court in Detroit and will be considered the law of the case.

IT IS FURTHER ORDERED that the proper forum for further proceedings is in the Wayne County Circuit Court in the State of Michigan.

IT IS FURTHER ORDERED that this action shall be transferred to the State of Michigan, County of Wayne, before the Honorable Daphne Means Curtis, the presiding Judge in the subsequently filed action for further proceedings.

IT IS FURTHER ORDERED that all claims in the action shall be governed by and related: back to the filing date in the Kentucky action; specifically July 25, 2007.

The case was then “transferred” to the Wayne County Circuit Court.

This “transfer” was filed in Michigan on December 4, 2015, and is the case now before this Court. Although no new complaint was filed, the first entry in the Register of Actions reads “Complaint, filed,” and beneath it states, “TRANSFER FILE FROM SHELBY CIRCUIT COURT, KENTUCKY, CASE NO. 07-CI00449 ORDER TO CHANGE VENUE TO WAYNE COUNTY CIRCUIT PER JUDGE CHARLES R. HICKMAN.” The “complaint” was a 789-page file recording the eight years of litigation in Kentucky. This case was assigned to Judge Curtis. Approximately 16 months after this complaint was filed—and following minimal discovery— Judge Curtis entered a trial notice and final pretrial order on April 5, 2017. The case was then reassigned to Judge Craig S. Strong.

-2- On May 1, 2017, defendants filed a motion for summary disposition. In its motion, defendant argued that there was no basis to “transfer” this case from Kentucky to Michigan and, therefore, the case must be dismissed. Defendant also argued that, based on Judge Curtis’s September 2014 ruling dismissing the previously filed Wayne County case, res judicata applied to plaintiff’s claims for PIP benefits prior to September 2014. Defendant walked through a res judicata argument, and concluded that plaintiff’s claims for PIP benefits prior to September 2014 should be dismissed under MCR 2.116(C)(7).

In response, plaintiff argued that the transfer from Kentucky to Michigan was valid because defendant consented to the transfer in Kentucky and “[t]he parties [were] bound by the admissions and statements that have taken place in the Kentucky case.” Plaintiff also asserted that venue was proper in Michigan based on MCL 600.1621. Plaintiff pointed out that defendant “cited no law to assert that [the trial court] cannot accept a transfer of venue where the parties have agreed to it by Order.” Finally, plaintiff argued that that the trial court should reject defendant’s res judicata argument because Judge Curtis dismissed the earlier Michigan case “for lack of jurisdiction,” which did not bar plaintiff’s claim.

The trial court held a hearing on defendant’s motion on June 29, 2017. At the hearing, defendant reiterated its main argument: “The most important thing is, how does this case get transferred from Kentucky to Michigan when it was a Kentucky State case? There is no basis for that, your honor.” In response, plaintiff argued that venue in either Michigan or Kentucky was proper, and that the transfer “can be looked at by Courts as far as a form of convenience.” In a short ruling, the trial court did not address the transfer issue, but instead only decided the case on res judicata grounds:

The Court notes that the plaintiff has already had the case dismissed in the State of Michigan by Judge Curtis, claims of the 2013 PIP suit is exactly the same as those being advanced in this case.

The doctrine of res judicata applies. The Court is going to grant the motion.

The trial court entered an order granting defendant’s dispositive motion on July 11, 2017. Plaintiff now appeals by right.

On appeal, the parties continue to argue the validity of the “transfer” from Kentucky to Michigan. The trial court chose not to address this issue, but we believe that it is dispositive to the issues raised on appeal.2 We conclude that this case could not be “transferred” from a Kentucky state court to a Michigan state court, as there is no court rule or statute that would authorize this procedure. We further conclude that the 789-page Kentucky file, that was

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S Baxter Jones v. Esurance Insurance Co, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-baxter-jones-v-esurance-insurance-co-michctapp-2018.