Sunrise Resort Association Inc v. Cheboygan County Road Commission

CourtMichigan Supreme Court
DecidedJuly 24, 2023
Docket163949
StatusPublished

This text of Sunrise Resort Association Inc v. Cheboygan County Road Commission (Sunrise Resort Association Inc v. Cheboygan County Road Commission) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sunrise Resort Association Inc v. Cheboygan County Road Commission, (Mich. 2023).

Opinion

Michigan Supreme Court Lansing, Michigan

Syllabus Chief Justice: Justices: Elizabeth T. Clement Brian K. Zahra David F. Viviano Richard H. Bernstein Megan K. Cavanagh Elizabeth M. Welch Kyra H. Bolden

This syllabus constitutes no part of the opinion of the Court but has been Reporter of Decisions: prepared by the Reporter of Decisions for the convenience of the reader. Kathryn L. Loomis

SUNRISE RESORT ASSOCIATION, INC v CHEBOYGAN COUNTY ROAD COMMISSION

Docket No. 163949. Argued on application for leave to appeal May 10, 2023. Decided July 24, 2023.

Sunrise Resort Association, Inc., Gregory P. Somers, and others brought an action in the Cheboygan Circuit Court against the Cheboygan County Road Commission asserting a statutory claim under the sewage-disposal-system-event (SDSE) exception, MCL 691.1416 through MCL 691.1419, to governmental immunity provided by the governmental tort liability act (GTLA), MCL 691.1401 et seq.; asserting a gross-negligence claim; and requesting injunctive relief for a common-law claim of trespass-nuisance. Plaintiffs owned real property along West Burt Lake Road in Cheboygan County. In 2013, a bicycle trail was constructed on the west side of that road, necessitating modifications by defendant to the drainage system. Defendant modified the drainage system again in 2015 after the bicycle trail washed out in 2014. In 2015, Sunrise Resort informed defendant that those modifications had caused minor damage to plaintiffs’ properties and that more severe damage would likely result if the system was not fixed. In May 2018, plaintiffs’ properties were damaged by an overflow and backup of the drainage system. Plaintiffs filed the instant action in February 2020, seeking monetary damages as well as injunctive relief to abate the alleged ongoing trespass or nuisance. Defendant moved for summary disposition under MCR 2.116(C)(7), arguing that plaintiffs’ SDSE claim was barred by the relevant three-year statutory period of limitations and by plaintiffs’ failure to provide timely notice of their claim as required by MCL 691.1419(1). Plaintiffs asserted that their action was timely because the limitations period began running following the 2018 event, which was the basis of their claim, not the 2015 event; however, plaintiffs conceded that their gross-negligence claim was barred by governmental immunity, and that claim was dismissed. The court, Aaron J. Gauthier, J., granted defendant summary disposition on the remaining claims, concluding that (1) plaintiffs’ claims accrued in 2015 and the claims were therefore not timely, (2) the request for injunctive relief was not a separate cause of action and could not be premised on untimely claims, and (3) injunctive relief was not available under MCL 691.1417(2). Plaintiffs appealed. In a published opinion, the Court of Appeals, RONAYNE KRAUSE, P.J., and CAMERON and RICK, JJ., reversed the trial court order and remanded for further proceedings. 339 Mich App 440 (2021). In doing so, the Court of Appeals concluded that (1) both the statutory SDSE claim and the common-law trespass-nuisance claim were timely because the claims did not accrue until 2018 and (2) injunctive relief was broadly available under the SDSE exception. Defendant sought leave to appeal the Court of Appeals judgment. The Supreme Court ordered and heard oral argument on whether to grant defendant’s application for leave to appeal or take other action. 509 Mich 983 (2022).

In a unanimous opinion by Chief Justice CLEMENT, the Supreme Court, in lieu of granting leave to appeal, held:

Plaintiffs’ SDSE claim was timely under MCL 600.5805(1) and (2). However, MCL 691.1417(2), the SDSE exception to governmental immunity, abrogates all common-law exceptions to governmental immunity for damages resulting from the overflow or backup of a sewage disposal system, including the common-law claim for trespass-nuisance; accordingly, plaintiffs’ trespass-nuisance claim arising from the 2018 SDSE had to be dismissed. The Court of Appeals’ conclusion that plaintiffs could seek an injunction in connection with their common-law trespass-nuisance claim was reversed because plaintiffs only sought that relief in connection with the abrogated trespass-nuisance claim. Trial court order reversed in part and affirmed in part; Court of Appeals judgment vacated in part; and case remanded to the trial court for further proceedings.

1. MCL 691.1417(2) provides that a governmental agency is immune from tort liability for the overflow or backup of a sewage disposal system unless the overflow or backup is an SDSE as that term is defined by the act and the governmental agency is an appropriate governmental agency. To recover compensation for the property damage or physical injury caused by an SDSE, MCL 691.1417(3) requires a plaintiff to show that the following existed at the time of the event: (1) the governmental agency was an appropriate governmental agency, (2) the sewage disposal system had a defect, (3) the governmental agency knew, or in the exercise of reasonable diligence should have known, about the defect, (4) the governmental agency, having the legal authority to do so, failed to take reasonable steps in a reasonable amount of time to repair, correct, or remedy, the defect, and (5) the defect was a substantial proximate cause of the event and the property damage or physical injury. Each SDSE, as defined by MCL 691.1416(k), may give rise to an independent cause of action for which the government may be liable if the elements in MCL 691.1417(3) can be established with regard to that particular event.

2. Claims under the GTLA are subject to the general laws respecting limitations of actions. Relevant here, under MCL 600.5805(1) and (2), the statutory period of limitation for claims brought under the SDSE exception is three years. MCL 600.5827 provides that the period of limitations runs from the time the claim accrues, which occurs when the wrong upon which the claim is based was done regardless of the time when damage results. A claim accrues for purposes of MCL 600.5827 when all the elements of the cause of action have occurred and can be alleged in a proper complaint. Stated differently, accrual occurs when the wrong is done, i.e., the moment when the plaintiff is harmed rather than when the defendant acted. In this case, while MCL 691.1417(3) carves out several exceptions under which such an overflow or backup does not constitute an SDSE, none of those exceptions applied here. Taking plaintiffs’ allegations in their complaint as true, they sought only to recover for damages caused by the 2018 overflow or backup event. Indeed, while they referred in the factual section of their complaint to the alleged minor flooding in 2015, they argue in Count I that the 2018 flooding constituted an “event” for purposes of MCL 691.1417(3). Accordingly, because plaintiffs’ SDSE claim was filed in February 2020, the complaint was timely filed within the three-year limitations period. The trial court therefore erred by dismissing plaintiffs’ claim on statute-of-limitations grounds. Contrary to defendant’s assertion, plaintiffs did not rely on the now-abrogated continuing-wrongs doctrine—under which the period of limitations would not run until a wrong was abated when the defendant’s wrongful acts were of a continuing nature—to support their claim. The continuing-wrongs doctrine was not relevant to plaintiffs’ claim for relief because their amended complaint, brought under the SDSE exception, alleged harm caused by a discrete 2018 SDSE, and plaintiffs did not seek to reach back and recover for any potential harms that may have occurred before that date.

3. Michigan caselaw recognized a trespass-nuisance exception to governmental immunity before the GTLA was enacted.

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Bluebook (online)
Sunrise Resort Association Inc v. Cheboygan County Road Commission, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunrise-resort-association-inc-v-cheboygan-county-road-commission-mich-2023.