Three Lakes Ass'n v. Kessler

300 N.W.2d 485, 101 Mich. App. 170, 1980 Mich. App. LEXIS 3022
CourtMichigan Court of Appeals
DecidedOctober 24, 1980
DocketDocket 45420
StatusPublished
Cited by12 cases

This text of 300 N.W.2d 485 (Three Lakes Ass'n v. Kessler) 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
Three Lakes Ass'n v. Kessler, 300 N.W.2d 485, 101 Mich. App. 170, 1980 Mich. App. LEXIS 3022 (Mich. Ct. App. 1980).

Opinion

Per Curiam.

Plaintiff, a nonprofit corporation composed mainly of riparian land owners, brought the underlying suit to enjoin the defendants, new residents on 47 residential lots in White Sands Estates subdivision, Antrim County, from having access to Torch Lake through a 42-foot-wide strip of land.

In an action tried in 1976, the trial court held, contrary to plaintiff’s argument, that beneficial use of the access strip could be vested in the subdivision lot owners and also that the plaintiff had failed to sustain its burden of proving an alleged common plan of development which made the defendants’ use unreasonable. Its ruling was af *173 firmed in Three Lakes Ass’n v Kessler, 91 Mich App 371; 285 NW2d 300 (1979).

This appeal is from the trial court’s order denying to plaintiff an award of attorney fees and costs and from the order denying a rehearing of the argument for fees and costs. This appeal is based upon the following arguments: (1) plaintiff should be awarded reasonable attorney fees and costs pursuant to GCR 1963, 313.3 by virtue of defendants’ refusal to admit the truth of matters of fact that were subsequently proven by plaintiff; (2) pursuant to GCR 1963, 111.6, defendants’ denial of certain allegations was unreasonable and so plaintiff should be awarded the cost of proving the allegations including reasonable attorney fees; (3) GCR 1963, 526.1 entitles plaintiff, as prevailing party, to recover its costs; (4) the Michigan environmental protection act, MCL 691.1203; MSA 14.528(203), entitles plaintiff to attorney fees and other costs; (5) based on (1) through (4), above, plaintiff’s motion for rehearing on the question of fees and costs should have been granted.

We affirm the trial court’s order denying plaintiff’s reasonable expenses and attorney fees and the order denying a rehearing on the matter.

Plaintiff’s requests for admissions came 11 days before the start of the trial. The action had been initiated nearly three years earlier. The defendant responded to the requests before the start of the trial, and it is the defendants’ denials of 22 of the 52 requests for admissions upon which plaintiff seeks the costs and attorney fee award.

GCR 313.3 gives reasonable expenses including attorney fees to the party whose requests for admissions of the truth of a matter of fact under GCR 312 are not admitted where the requesting party proves the fact at trial.

*174 The defendants did not strictly comply with GCR 312.1. They made general denials of the requests for admissions, did not claim a lack of knowledge which prevented them from admitting or denying, and did not object to the propriety of the requests. The trial judge ruled that the lack of strict compliance was excused because the requests were served only 11 days before trial, even though the case was filed over two years earlier. The judge may have assumed that, in light of the time frame, the plaintiff already would have prepared the bulk of its case.

In some instances, the plaintiff did not present evidence at trial to prove the statements contained in the requests. In other instances, defendants contested at trial the matters contained in the admission requests. Other requests were not or could not have been within the knowledge of the defendants or were of such a general nature to be irrelevant.

The trial judge denied the plaintiffs request for expenses under GCR 313.3. In denying plaintiffs request for GCR 313.3 expenses, the judge noted that many of the plaintiffs requests for admissions did not involve matters of fact as contemplated by GCR 313.3. He also noted that many of the requests for admissions ran contrary to his ultimate findings of fact so that it was plainly not unreasonable for the defendants to deny these requested admissions.

Fredericks v General Motors Corp, 48 Mich App 580, 588; 211 NW2d 44 (1973), lv den 390 Mich 805 (1973), indicates that GCR 313.3 is only applicable to denials of matters of fact and not to matters of opinion.

Plaintiffs in Greenspan v Rehberg, 56 Mich App 310, 328-329; 224 NW2d 67 (1974), denied that *175 covenants contained in a land contract between the defendants and the plaintiffs were binding on the plaintiffs. The trial court awarded the defendants costs under GCR 313.3 based on the evidence presented at trial that proved that the covenants were binding on the plaintiffs. This Court, in reversing the award of costs under GCR 313.3, stated:

"In 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 27, the author states that such admissions may dispose of matters over which there is no serious dispute, and hence avoid waste of time and preparation and a trial on unnecessary proofs. However, the author also states that unless a matter is completely free of controversy, it is not likely that a formal request for admissions will prove successful
"An examination of the demands for admission of fact submitted to the plaintiffs discloses that the 'facts’ which the defendants sought to have the plaintiffs admit were, in reality, not 'facts’ but were elements of the defendants’ claim.
"It is stated in 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 234:
" 'The mere fact that the matter was proved at the trial does not, of itself, establish that the denial in response to the request for an admission was unreasonable.’ ”

Defendants’ denials of the requests for admission were not unwarranted in the sense that they were unreasonable so that the defendants should be liable for the plaintiff’s costs of proving these allegations. Accordingly, the trial court, in the instant case, did not abuse its discretion in denying attorney fees pursuant to GCR 1963, 313.3.

Plaintiff’s motion for costs and attorney fees under GCR 111.6 was also properly denied.

*176 GCR 1963, 111.6 states:

"Unwarranted Allegations and Denials. If it appears at the trial that any fact alleged or denied by a pleading ought not to have been so alleged or denied and such fact if alleged is not proved or if denied is proved or admitted, the court may, if the allegation or denial is unreasonable, require the party making such allegation or denial to pay to the adverse party the reasonable expenses incurred in proving or preparing to prove or disprove such fact as the case may be, including reasonable attorney fees.”

Plaintiff cites Forster v City of Pontiac, 56 Mich App 415; 224 NW2d 325 (1974), in support of its position on this issue. The holding in that case indicates that the decision to award expenses under GCR 111.6 rests within the discretion of the trial juge and that there must be some bad faith to justify the award. See also Lindhout v Ingersoll, 58 Mich App 446, 454; 228 NW2d 415 (1975).

We find no abuse of discretion in the trial court’s denial of the motion for expenses and fees under GCR 111.6.

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Bluebook (online)
300 N.W.2d 485, 101 Mich. App. 170, 1980 Mich. App. LEXIS 3022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/three-lakes-assn-v-kessler-michctapp-1980.