Value Investors LLC v. Jeffrey Yatooma

CourtMichigan Court of Appeals
DecidedApril 18, 2024
Docket362564
StatusUnpublished

This text of Value Investors LLC v. Jeffrey Yatooma (Value Investors LLC v. Jeffrey Yatooma) 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
Value Investors LLC v. Jeffrey Yatooma, (Mich. Ct. App. 2024).

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

VALUE INVESTORS LLC, UNPUBLISHED April 18, 2024 Plaintiff/Counterdefendant-Appellant,

v Nos. 362564; 365694 Oakland Circuit Court JEFFREY YATOOMA, and CANNABIS LC No. 2021-188165-CB PROPERTY BROKERS, LLC,

Defendants/Counterplaintiffs Third- Party Plaintiffs-Appellees,

and

190 N 20TH LLC, 190 N 20TH STREET INC, 477 MICHIGAN AVE, 477 MICHIGAN INC, 492 CAPITAL LLC, 716 STURGIS VENTURES LLC, 716 STURGIS ENTERPRISES INC, EAST LANSING INVESTMENTS LLC, 314 MUNSON AVE LLC, 1115 CORUNNA LLC, 1790 US-23 B LLC, 1790 US-23 INC, 224 CENTER LLC, 1382 W MICHIGAN LLC, 327 CAPITAL SW LLC, 306 W COLUMBIA LLC, 306 W COLUMBIA AVE LLC, 1050 COLUMBIA LLC,

Defendants,

NORMAN YATOOMA,

Third-Party Defendant-Appellant.

Before: RIORDAN, P.J., and O’BRIEN and MALDONADO, JJ.

PER CURIAM.

-1- In Docket No. 362564, plaintiff/counterdefendant-appellant Value Investors, LLC, and third-party defendant-appellant Norman Yatooma (collectively “appellants”) appeal as of right the trial court’s July 25, 2022 order entering judgment in favor of defendants/counterplaintiffs third- party plaintiffs-appellees Jeffrey Yatooma and Cannabis Property Brokers, LLC (collectively “defendants”), in the amount of $108,901.63 following a jury trial. In Docket No. 365694, appellants appeal by leave granted1 the trial court’s January 31, 2023 opinion and order quashing writs of garnishment filed by appellant Value Investors against defendant Jeffrey Yatooma. The appeals were consolidated by the same order granting leave.

In Docket No. 362564, appellants challenge a particular jury instruction at trial. In Docket No. 365694, appellants argue that despite the unfavorable jury verdict against them, they were nonetheless entitled to garnishments against defendant Jeffrey Yatooma, and the trial court erred by quashing the writs of garnishment several months after trial. 2 We disagree with appellants in both appeals and affirm.

I. FACTS

Value Investors filed this action against defendants to enforce a settlement agreement that the parties entered into on January 8, 2021. The underlying dispute involved buying and selling real estate for use in Michigan’s cannabis industry. In addition to other requirements, the agreement required Jeffrey to pay Value Investors a total of $6,142,196.46, to pay $142,196.46 on or before May 8, 2021, to execute a consent judgment and a promissory note in the amount of $6,142,196.46, and to execute an affirmation stating that the titles to “the CPB Properties” had not been transferred or encumbered. Regarding the consent judgment, the agreement stated as follows:

Upon execution of this Agreement, the parties shall execute a Consent Judgment which shall be held by the Escrow Agent and shall not be filed with the Court unless there is a default on the payment terms set forth herein. The Consent Judgment shall be in the amount of $6,142,196.46, less any amounts that [Value Investors] has received pursuant to this Agreement . . . .

After defendants breached the settlement agreement, Value Investors filed this action against defendants alleging breach of contract and seeking both a declaratory judgment and a money judgment. Defendants filed a countercomplaint against Value Investors and a third-party complaint against Norman alleging breach of contract and slander of title. Defendants also sought a declaratory judgment and to compel arbitration regarding the parties’ escrow agreement.

1 Value Investors LLC v Jeffrey Yatooma, unpublished order of the Court of Appeals, entered June 8, 2023 (Docket No. 365694). 2 While the writs for garnishment were nominally filed by appellant Value Investors, the interests of both appellants are essentially identical. Similarly, the interests of defendants Jeffrey Yatooma and Cannabis Property Brokers (CPB) are essentially identical as well. Thus, we generally will refer to “appellants” or “defendants” for ease of discussion, even when reference to a singular party would be more precise.

-2- The parties filed motions for summary disposition, which the trial court decided in a June 21, 2022 opinion and order. The trial court granted in part appellants’ respective motions for summary disposition. The trial court determined that Jeffrey breached the settlement agreement by failing to execute an affirmation contemporaneously with the agreement stating that the titles to the CPB Properties had not been transferred or encumbered. The trial court also determined that Jeffrey breached the agreement by failing to pay Value Investors $142,196.46 by May 8, 2021. The trial court determined that Jeffrey remitted the $142,196.46 payment two days late and paid the escrow agent rather than Value Investors as the settlement agreement required. The trial court concluded as follows:

Simply put, there is no question of material fact that the Defendants defaulted twice under the Agreement - they paid late and they paid the wrong party. As such, under the clear and unambiguous terms of the Settlement Agreement, a Consent Judgment should enter.

The trial court denied summary disposition with respect to defendants’ slander of title claim.

The case proceeded to a jury trial on defendants’ slander of title claim, which the jury decided in defendants’ favor and awarded them $108,901.63 in damages. On July 25, 2022, the trial court entered a judgment in defendants’ favor in the amount of $108,901.63. The judgment stated that it resolved the last pending claim and closed the case. On August 15, 2022, appellants filed a claim of appeal in Docket No. 362564. Their only argument in that appeal challenges a particular jury instruction.

On September 21, 2022, Value Investors filed a motion to enforce a purported judgment in its favor. On October 3, 2022, the trial court denied the motion, stating that the motion did not actually seek to enforce a judgment, but rather, sought entry of a judgment to enforce the court’s June 21, 2022 opinion and order. The trial court further stated as follows:

Second, perhaps such a judgment should have been presented before the trial, or after the trial, but no such order was entered. Perhaps the Court/parties were too zealous in including the language closing the case in connection with the judgment involving the jury’s verdict on the independent claims tried there, but now the case [is] before the Court of Appeals. To achieve the result requested, the Court would need to create a second judgment codifying the June 2022 Opinion and strike the language closing the case on the initial judgment. But MCR 7.208(A) divests the Court of any jurisdiction to do the same when a claim of appeal has been filed.

Third, even if the Court were inclined to treat the June 2022 Opinion and Order as a judgment, the Plaintiff’s proposed judgment includes terms (such as the 21 day deadline for compliance) that were not in the June 2022 order, again running afoul of the prohibition against modifying a judgment pending appeal.

On January 20, 2023, appellants filed 45 writs of nonperiodic garnishment. The garnishees were the numerous properties at issue. The writs stated that Value Investors obtained a judgment against Jeffrey in the amount of $5,699,696.46 on June 21, 2022. The writs also stated that the

-3- accrued judgment interest was $229,809.78 and that the total of the unsatisfied judgment was $5,929,506.24.

On January 25, 2023, Jeffrey filed objections to the writs of garnishment and an emergency motion to quash the writs, arguing that they falsely stated that a judgment had been entered.

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Cite This Page — Counsel Stack

Bluebook (online)
Value Investors LLC v. Jeffrey Yatooma, Counsel Stack Legal Research, https://law.counselstack.com/opinion/value-investors-llc-v-jeffrey-yatooma-michctapp-2024.