Steven Schneider v. City of Orchard Lake Village

CourtMichigan Court of Appeals
DecidedMay 26, 2022
Docket357380
StatusUnpublished

This text of Steven Schneider v. City of Orchard Lake Village (Steven Schneider v. City of Orchard Lake Village) 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
Steven Schneider v. City of Orchard Lake Village, (Mich. Ct. App. 2022).

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

STEVEN SCHNEIDER and JULIE ANN UNPUBLISHED SCHNEIDER, May 26, 2022

Plaintiffs-Appellants,

v No. 357380 Oakland Circuit Court CITY OF ORCHARD LAKE VILLAGE and LC No. 2018-164868-CH GERRY MCCALLUM,

Defendants,

and

BARTON RACHWAL and ANDREA RACHWAL,

Defendants-Appellees.

Before: BORRELLO, P.J., and SHAPIRO and HOOD, JJ.

PER CURIAM.

Plaintiffs appeal as of right the trial court’s order awarding attorney fees and costs to defendants Barton Rachwal and Andrea Rachwal (the Rachwals). For the reasons set forth in this opinion, we affirm in part, vacate in part, and remand for further proceedings consistent with this opinion.

I. BACKGROUND

This litigation stems from a dispute between neighbors that involved alleged violations of applicable deed restrictions and local zoning ordinances. As this Court explained when this matter was previously before us:

The Rachwals and plaintiffs own neighboring properties. The properties were originally part of a single tract that was subdivided into three parcels. At the time the properties were subdivided, the owner imposed covenants and restrictions to run with the land. Plaintiffs were involved in litigation with other neighbors

-1- before the Rachwals purchased their lot in 2011. In litigation commenced in 2006, plaintiffs reached a settlement in 2009 with the Rachwals’ predecessor, Matthew Flynn. That settlement order provided, in relevant part, that plaintiffs could enforce the existing deed restrictions in place for the property then owned by Flynn, but upon a sale or transfer of that property, plaintiffs would receive $50,000 from the closing proceeds and “release any rights to enforce the restrictions on the Flynn property,” but “[i]f no payment is made as provided herein, [plaintiffs] shall continue to have such rights of enforcement.”

The Rachwals purchased the Flynn property in 2011 and built their own home on the property. It is undisputed that the Rachwals did not pay plaintiffs $50,000 at the time of closing. Plaintiffs later informed the Rachwals in a letter that they could pay the $50,000 amount at a later time to obtain a release of the deed restrictions. . . .

* * *

The Rachwals subsequently tendered the $50,000 amount. In lieu of accepting that payment, plaintiffs filed this lawsuit.

Although plaintiffs filed a lengthy 66-page complaint that asserted several different theories of relief, their claims involved two primary issues: (1) the Rachwals violated the deed restrictions applicable to their property, which plaintiffs were entitled to enforce under the 2009 settlement order, and (2) the Rachwals performed work on their property in violation of several ordinances, which the City failed to enforce. [Schneider v City of Orchard Lake Village, unpublished per curiam opinion of the Court of Appeals, issued May 14, 2020 (Docket No. 347202), pp 1-2 (alterations in original).]

In addition to the Rachwals, plaintiffs also “named the city of Orchard Lake Village (the City) and its building official, Gerry McCallum, as defendants.” Id. at 1. The Rachwals moved for summary disposition, arguing in part that “the 2009 settlement allowed them to buy their way out of the deed restrictions,” that they were released from the deed restrictions once they tendered payment of $50,000 pursuant to the 2009 settlement, that plaintiffs were “obligated to accept payment,” and that plaintiffs waived their right to enforce the deed restrictions against the Rachwals by refusing to accept the payment. Id. at 2. The City and McCallum also moved for summary disposition. Id. at 3. The trial court granted defendants’ motions for summary disposition and dismissed plaintiffs’ claims. Id. This Court affirmed that decision. Id. at 1.

The 2009 settlement agreement is a central part of the dispute between plaintiffs and the Rachwals. As we explained in our prior opinion,

The 2009 settlement agreement, with regard to future enforcement of deed restrictions applicable to the Rachwals’ property provided:

G. . . .It is understood that upon any sale, transfer of title of the Flynn property, other than the current foreclosing bank obtaining title through foreclosure, that the Schneiders shall be paid the sum

-2- of Fifty Thousand and 00/100 ($50,000.00) Dollars at the closing from the closing proceeds and the sum of Thirty-Five Thousand and 00/100 ($35,000.00) Dollars shall be placed in escrow with the Title Company to satisfy the requirements of Flynn as set forth in Paragraph 2(B) herein, with any excess returned to Flynn. Upon receipt of such $50,000.00, Schneiders shall then release any rights to enforce the restrictions on the Flynn property, except as provided in the Amendment, Modification and Release of Declaration of Restrictions of Beath Woods. If no payment is made as provided herein, Schneiders shall continue to have such rights of enforcement.

The parties do not dispute that no payment was made or offered to plaintiffs when Flynn sold the property to the Rachwals in 2011. However, after the Rachwals acquired their property, they sent a letter to plaintiffs, advising them that they would not pay the $50,000 at that time and requesting that plaintiffs sign a release related to the deed restrictions, as plaintiffs had done for another neighbor. In the previously quoted written response of December 5, 2012, plaintiffs advised the Rachwals that the deed restrictions should remain in place, but further stated they would be “willing to release the restrictive covenants for the payment required in the amount of $50,000 . . .”

Plaintiffs’ letter of December 5, 2012 is proof that they agreed to modify the original settlement order with respect to the timing of the payment by accepting the $50,000 payment after the closing to obtain release of the deed restrictions. Hence, plaintiffs waived their rights with regard to both the payment and to enforce the deed restrictions by rejecting the payment and filing this action instead. [Id. at 4 (ellipses in original).]

More specifically, this Court concluded that in agreeing “to modify the terms of the 2009 settlement agreement to extend the timeframe for making the specified $50,000 payment to obtain a release from the deed restrictions,” it was “solely up to the Rachwals whether to invoke that provision” and the parties created no time limitation on the Rachwals’ ability to avail themselves of the option to obtain the release. Id. at 5. When the Rachwals tendered the $50,000 payment in 2018, they fulfilled this condition precedent entitling them to a release of the deed restrictions from plaintiffs and plaintiffs had no right to choose to instead reject the payment and enforce the deed restrictions. Id. This Court also determined that plaintiffs’ letter to the Rachwals operated to bar plaintiffs from enforcing the deed restrictions under the doctrine of promissory estoppel. Id. at 6.

After this Court affirmed the trial court’s ruling granting summary disposition in the previous appeal, the Rachwals filed a motion in the trial court seeking attorney fees, costs, and sanctions. In their motion, the Rachwals argued that plaintiffs breached the terms of the 2009 settlement order, as modified by the agreement between plaintiffs and the Rachwals, by rejecting the Rachwals’ payment and refusing to release the deed restrictions. The Rachwals maintained that a provision of the 2009 settlement order entitled them to an award of their actual attorney fees incurred as a result of plaintiffs’ breach and that the trial court could also award fees pursuant to

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Cite This Page — Counsel Stack

Bluebook (online)
Steven Schneider v. City of Orchard Lake Village, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steven-schneider-v-city-of-orchard-lake-village-michctapp-2022.