Windrush Inc v. Lee Vanpopering

CourtMichigan Court of Appeals
DecidedSeptember 10, 2015
Docket315958
StatusUnpublished

This text of Windrush Inc v. Lee Vanpopering (Windrush Inc v. Lee Vanpopering) 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
Windrush Inc v. Lee Vanpopering, (Mich. Ct. App. 2015).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

WINDRUSH INC., UNPUBLISHED September 10, 2015 Plaintiff-Appellant/Cross-Appellee,

v No. 315958 Kent Circuit Court LEE VANPOPERING, SHAGBARK LC No. 09-008274-CK DEVELOPMENT INC., and NORTHLAND MANAGEMENT INC.,

Defendants-Appellees/Cross- Appellants.

Before: MURPHY, P.J., and SHAPIRO and RIORDAN, JJ.

PER CURIAM.

ON REMAND

We previously considered this appeal and cross-appeal and issued an opinion affirming in full the trial court rulings. Windrush Inc v VanPopering, unpublished opinion per curiam of the Court of Appeals, issued June 19, 2014 (Docket No. 315958). Plaintiff Windrush, Inc., then filed for leave to appeal to the Supreme Court. In lieu of granting the application, the Supreme Court vacated our opinion and remanded the case to us “for reconsideration in light of BC Tile & Marble Co, Inc, 288 Mich App 576[; 794 NW2d 76] (2010)[,]” a case we had failed to consider in our opinion.

BC Tile addresses when a corporate officer may be held personally liable for his company’s violation of the Michigan Builders’ Trust Fund Act (MBTFA), MCL 570.151 et seq. After review of that decision, we reverse the trial court’s conclusion that VanPopering is not personally liable for the damages arising out of his company’s violation of the MBTFA.

We conclude that BC Tile does not affect the analysis or outcome of any other issue in this case. Accordingly, the following discussion is drawn verbatim from our initial opinion, except for Section II(B)(3), entitled “PERSONAL LIABILITY OF VANPOPERING,” and Section III, entitled “CONCLUSION.”

-1- I. FACTS

This appeal concerns the construction of a condominium development known as the Shagbark Condominiums (“the project”), owned by defendant Shagbark Development (“Shagbark”). Defendant Northland, owned solely by defendant Lee VanPopering, was the general contractor on the project. VanPopering was also the president and part owner of Shagbark. Northland, as the general contractor on the project, entered into agreements with plaintiff Windrush, which performed carpentry work and painting on the project. James Suschil was the president and sole owner of plaintiff.

At some point before the project was fully completed, financial difficulties arose and Fifth Third Bank, the project’s principal financier, threatened to foreclose on the project. On December 21, 2006, the project, in various stages of completion, was sold at a distressed price to a company called Mallards Landing. In October 2005, Suschil, and by extension, plaintiff, declared bankruptcy. Jeff Moyer was appointed bankruptcy trustee and, therefore, the sole representative of plaintiff. Seeking money to pay off Suschil’s creditors, Moyer began pursuing funds he believed plaintiff was owed for work completed on the project.

On July 31, 2009, plaintiff, through Moyer, brought suit against defendants, asserting three separate theories of liability. Plaintiff alleged that VanPopering, Shagbark, and Northland were jointly and severally liable for (1) breach of contract, (2) violations of the [] MBTFA, and (3) statutory conversion, MCL 600.2919a. Plaintiff requested $29,300 under the contract and MBTFA theories, and $89,700 for statutory conversion ($29,300 x 3), a cause of action that provides a trial court with the discretion to award treble damages. MCL 600.2919a(1); Aroma Wines & Equip, Inc v Columbia Distrib Servs, Inc, 303 Mich App 441, 449-450; 844 NW2d 727 (2013). Plaintiff claimed that defendants failed to pay for work completed on “Building 12” and “Building 13” of the project. Per the parties’ agreement, plaintiff was to receive $9,000 per building, known as a “builder’s fee,” after the buildings were completed and sold, for a total of $18,000. Plaintiff also claimed it was entitled to $11,300 under a construction lien placed on the project by Suschil for work performed on “Unit 45.”

Plaintiff moved for summary disposition under MCR 2.116(C)(10), which was granted with respect to the breach of contract claim against Shagbark for $29,300, but denied as to all other claims and all other defendants. This ruling is not challenged on appeal.

After a three-day bench trial, the court allowed the parties to submit written closing arguments. Plaintiff claimed that it was now owed an additional $22,500 by Northland and VanPopering due to some “particularly damning admissions by Mr. VanPopering” made on the last day of trial. Plaintiff cited a document, maintained by VanPopering, indicating that VanPopering had “paid” plaintiff $22,500 after December 21, 2006. Plaintiff asserted three separate theories as to how this $22,500 “fit” with the previously claimed $29,300 in damages. Lastly, plaintiff asserted that, even if VanPopering or Northland paid the $22,500 to Suschil, they still owed the money to plaintiff, because it would have been paid after Moyer had assumed control and authority over plaintiff.

In a written opinion, the trial court found: (1) as to breach of contract, for plaintiff against Northland for $9,000 for the Building 13 builder’s fee, but for VanPopering against plaintiff; (2)

-2- as to violations of the MBTFA, for plaintiff against Northland for $11,300, but for VanPopering and Shagbark against plaintiff, and; (3) as to statutory conversion, for all defendants. The court’s ruling was eventually reduced to a judgment for plaintiff accounting for applicable interest and costs. From this judgment, plaintiff appealed and Northland cross-appealed. [Windrush, pp 1-2.]

II. BREACH OF CONTRACT

On appeal, plaintiff argues that defendants are liable for the $9,000 builder’s fee for Building 12. On cross-appeal, Northland argues that the trial court erred by finding it liable to plaintiff for the builder’s fee for Building 13.1

“A party claiming a breach of contract must establish by a preponderance of the evidence (1) that there was a contract, (2) that the other party breached the contract and, (3) that the party asserting the breach of contract suffered damages as a result of the breach.” Miller-Davis Co v Ahrens Constr, Inc (On Remand), 296 Mich App 56, 71; 817 NW2d 609 (2012), rev’d in part on other grounds, __ Mich __ (Docket No. 145052; April 15, 2014).

The trial court found that it was undisputed that the parties entered into a “profit agreement,” i.e., a contract, under which plaintiff would be paid a $9,000 builder’s fee for its work on both Buildings 12 and 13 when those buildings were completed and sold. It appears that either a written agreement was not executed or such an agreement was not entered into the record before this Court. However, both VanPopering and Suschil testified that plaintiff was to receive a builder’s fee for Buildings 12 and 13 only if those buildings were completed and sold.

The court found, based on VanPopering’s testimony, that Building 13 had been completed and sold and that plaintiff had not been paid, thus satisfying the final two elements necessary to establish a breach of contract against Northland, the general contractor. Indeed, VanPopering testified at trial that plaintiff had performed the contracted work on Building 13, that Building 13 had been completed and sold, and that plaintiff was entitled to the builder’s fee. Accordingly, the trial court did not err by finding that Northland owed plaintiff $9,000 for its work on Building 13 for breach of contract.

With regard to Building 12, the court found that there was no evidence that Building 12 was ever completed and, therefore, that Northland had not breached the contract by failing to pay plaintiff the $9,000 builder’s fee for its work on Building 12. VanPopering testified that

1 We review a trial court’s findings of fact in a bench trial for clear error and its conclusions of law de novo.

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Windrush Inc v. Lee Vanpopering, Counsel Stack Legal Research, https://law.counselstack.com/opinion/windrush-inc-v-lee-vanpopering-michctapp-2015.