Todd Oakley v. Robert Rutan

CourtMichigan Court of Appeals
DecidedApril 24, 2018
Docket337546
StatusUnpublished

This text of Todd Oakley v. Robert Rutan (Todd Oakley v. Robert Rutan) 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
Todd Oakley v. Robert Rutan, (Mich. Ct. App. 2018).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

TODD OAKLEY, UNPUBLISHED April 24, 2018 Plaintiff-Appellant,

v No. 337546 Jackson Circuit Court ROBERT RUTAN, DEBORAH RUTAN, and LC No. 16-002005-CK NATURS DESIGN, INC., doing business as REMZZZS.COM,

Defendants-Appellees.

Before: MURPHY, P.J., and JANSEN and SWARTZLE, JJ.

PER CURIAM.

Plaintiff appeals as of right the trial court’s order granting summary disposition in favor of defendants under MCR 2.116(C)(10) in this case involving a contractual dispute. We affirm, albeit for reasons different than those expressed by the trial court.

In 2013, plaintiff sued defendants, and the parties engaged in mediation in 2014 in an effort to settle the litigation. The mediation was successful, resulting in a settlement agreement in April 2014, pursuant to which defendants were to pay plaintiff $290,000 by August 12, 2014.1 Defendants failed to pay the $290,000 required under the settlement agreement, and in February 2015, plaintiff filed a motion for entry of judgment against defendants, which was denied, given that, according to plaintiff, the court wished to delay entering a judgment. In June 2016, plaintiff filed a second renewed motion for entry of judgment, and this time the trial court entered a judgment in favor of plaintiff in the amount of $271,336, plus $20,461 in statutory interest, making for a total judgment of $291,797. The judgment was scheduled to become final on July 12, 2016, 21 days after its entry on June 21, 2016.

1 The mediation settlement is not contained in the record, but there is no dispute that part of the settlement required defendants to pay plaintiff $290,000 by August of 2014. Defendants indicate in their brief that the mediation settlement also required them to pay plaintiff $50,000 within 30 days, which was done, and to make 72 monthly installment payments of $2,000, which provision was also satisfied, presumably early.

-1- Beginning on July 5, 2016, there were numerous phone and email communications and negotiations between the parties for purposes of giving defendants additional time so that they could obtain financing to pay the judgment or to otherwise arrange for some type of payment plan relative to the judgment. On the evening of July 19, 2016, plaintiff’s counsel emailed defendants’ attorney the outline of a deal between the parties as plaintiff’s counsel understood it. Pursuant to the email, the purported agreement entailed defendants withdrawing a motion for reconsideration, plaintiff conditionally dismissing the judgment, and defendants paying plaintiff $200,000 by 5:00 p.m. on July 25, 2016, and another $130,000 by 5:00 p.m. on October 14, 2016. With regard to the initial $200,000 payment, the alleged agreement provided that it was to be paid in two cashier’s checks, one for $30,000 “for the consideration specific to the agreement to delay collection” and one for $170,000 “to be applied to the outstanding Judgment.” The email from plaintiff’s counsel additionally indicated that, if the two cashier’s checks were received by the July 25 deadline, the agreement would involve plaintiff withdrawing or canceling a request and writ for garnishment that was tendered to the court earlier in the day. The email concluded with a request for confirmation that the recited provisions accurately reflected the parties’ negotiated agreement. On the morning of July 20, 2016, defendants’ attorney responded, stating, “Yes. Unless we pay the whole thing off in the next couple of days.” The record does not contain a specific documented response by plaintiff’s counsel to defendants’ reply and the statement about the possibility of defendants paying the “whole thing off in the next couple of days.” However, plaintiff has proceeded as if that payoff “condition” had been acceptable and part of the agreement.2

Between July 20, 2016, and 5:00 p.m. on July 25, 2016, defendants made payments to plaintiff amounting to $260,000.3 The payments, however, were not in the form of two cashier’s checks for $30,000 (delay collection) and $170,000 (toward judgment), although they exceeded by $60,000 the amount allegedly due to plaintiff by the July 25 deadline for purposes of delaying collection on the judgment. In an email from defendants’ attorney to plaintiff’s counsel at 4:05 p.m. on July 25, 2016, the attorney noted that $260,000 had been submitted to plaintiff and that defendants were “ready to tender the balance of the amount you are seeking in the garnishment.” The email further indicated that it was counsel’s understanding that the garnishment was approximately $271,000, but she asked plaintiff’s attorney to let her know how much needed to be paid to satisfy the balance owed. At 4:34 p.m. on July 25, 2016, plaintiff’s attorney

2 The flurry of emails that were exchanged between the parties during negotiations referenced, at times, phone conversations regarding the negotiations. Possibly the payoff condition had been discussed and approved by plaintiff’s attorney but was inadvertently not included in the attorney’s email to defense counsel outlining the agreement. Regardless, plaintiff accepts that the payoff condition was part of the agreement. 3 Defendants state in their brief that “[o]n July 25, 2016, [they] tendered a cashier’s check for $260,000.00” to plaintiff’s attorney. However, in an accounting worksheet generated by plaintiff’s counsel, it reflected that counsel received from defendants a $100,000 payment on July 21, 2016, a $100,000 payment on July 25, 2016, and a second payment on July 25 of $60,000. Either way, there is no dispute that $260,000 was paid to plaintiff by 5:00 p.m. on July 25, 2016.

-2- responded by email, sending defendants’ counsel a prejudgment interest calculation worksheet showing an outstanding balance of $62,424, which included $30,000 per the agreement to delay collection. At 4:51 p.m. that same day, defendants’ attorney emailed plaintiff’s counsel stating that “[a]lthough I have not received a response[,4] my clients are on the way to your office with an additional check for $12,000.00.” Apparently, this amount was to cover the difference between the $260,000 in payments and the amount that defendants’ attorney believed was the amount listed in a request and writ for garnishment. It appears from the record that defendants arrived at the office of plaintiff’s counsel with the $12,000 payment a short time after he left at 5:10 p.m., but the office was closed, and the $12,000 was never paid to plaintiff.

In an email from plaintiff’s attorney to defense counsel dated July 26, 2016, the attorney stated in full:

It is my understanding, from our multiple discussions yesterday, that none of the funds paid to [plaintiff] to date . . . are to be applied toward the $30,000 referenced in my email . . . dated July 19 . . . . I want to be certain that we are on the same page with respect to how the payments are being applied.

In response ten minutes later by email, defendants’ attorney stated, “To be clear, all payments are to be applied to the judgment entered in June. We obviously have no agreement to delay collection.” The file contains a request and writ of garnishment, dated July 25, 2016, indicating that the unsatisfied judgment was $32,424, which calculation included judgment interest and postjudgment costs, minus the $260,000 that defendants paid to plaintiff. 5 Defendants’ bank was the garnishee. There does not appear to be a dispute that plaintiff successfully garnished the full $32,424 from defendants’ bank account, resulting in plaintiff collecting a total of $292,424 from defendants when the $260,000 is added to the garnishment amount. There also does not appear to be any dispute that the $292,424 satisfied the judgment.

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Bluebook (online)
Todd Oakley v. Robert Rutan, Counsel Stack Legal Research, https://law.counselstack.com/opinion/todd-oakley-v-robert-rutan-michctapp-2018.