CAM Construction v. Lake Edgewood Condominium Ass'n

                                                                       Michigan Supreme Court
                                                                       Lansing, Michigan 48909
____________________________________________________________________________________________
                                                                 C hief Justice                   Justices
                                                                 Maura D. Cor rigan	              Michael F. Cavanagh




Opinion
                                                                                                  Elizabeth A. Weaver
                                                                                                  Marilyn Kelly
                                                                                                  Clifford W. Taylor
                                                                                                  Robert P. Young, Jr.
                                                                                                  Stephen J. Markman

____________________________________________________________________________________________________________________________

                                                                                      FILED MARCH 12, 2002





                CAM CONSTRUCTION,


                        Plaintiff-Appellant,


                v	                                                                                No. 116751


                LAKE EDGEWOOD

                CONDOMINIUM ASSOCIATION,


                     Defendant-Appellee.

                ____________________________________

                BEFORE THE ENTIRE BENCH


                CAVANAGH, J.


                        We granted leave to consider whether a party may appeal


                an adverse summary disposition judgment on one count of a


                multicount action after accepting a case evaluation rendered


                under MCR 2.403.                The plain language of MCR 2.403(M)(1)


                provides that a party’s acceptance of a case evaluation


                disposes        of    “all     claims       in     the            action.”   We     conclude,


                therefore, that, upon acceptance of a case evaluation under


                MCR 2.403, a party may not subsequently appeal an adverse


                summary         disposition           on      one            count      in   the             action.

                     I.   Facts and Proceedings


         In August 1998, plaintiff CAM Construction filed a four­

count complaint against defendant Lake Edgewood Condominium


Association for damages stemming from defendant’s failure to


pay plaintiff for services rendered and breach of contract.


In counts I, II, and III, plaintiff alleged that defendant


owed $9,110 for services rendered pursuant to an agreement


between the parties.       In count IV, plaintiff alleged that


defendant reneged on a separate contract, worth $183,450, by


preventing plaintiff from performing roof construction work


for defendant.


         Defendant moved for summary disposition on count IV,


claiming the contract was void under the statute of frauds.


MCL 566.132(1)(a).        The circuit court granted defendant’s


motion in December 1998 and plaintiff did not appeal that


decision.


         The case was then submitted to case evaluation, for which


both parties submitted mediation summaries.1        The summaries


briefly referred to the dismissal of count IV2; however, the



 1
   At the time this case arose, the term “mediation” was used
to define the process.    The current term that defines the
process, “case evaluation,” was adopted in 2000.
     2
    Plaintiff’s mediation summary stated the following about
count IV:

              Rather, CAM had agreed with Lake Edgewood to


                                  2
parties debate whether it was only the remaining counts the


case evaluation panel discussed.3      The panel recommended


defendant pay plaintiff $5,400, which both parties accepted.


Defendant then asked for an order dismissing the entire case


with prejudice under MCR 2.403(M)(1), which states:


           If all the parties accept the panel’s

      evaluation, judgment will be entered in accordance

      with the evaluation, unless the amount of the award

      is paid within 28 days after notification of the

      acceptances, in which case the court shall dismiss

      the action with prejudice.        The judgment or

      dismissal shall be deemed to dispose of all claims

      in the action and includes all fees, costs, and

      interest to the date it is entered.


      Plaintiff responded that it had reserved its right to


appeal the summary disposition on count IV.   Arguing that the


case evaluation summaries had focused on the claims in counts




      perform roofing repairs under the warranty work

      stated above, and Lake Edgewood, in essence,

      breached this agreement and did not allow CAM to

      perform this work (this allegation has been

      dismissed by the Court, due to there being no

      signed agreement for services which were allegedly

      to have occurred over a three year period.)


     Defendant’s mediation summary stated the following about

count IV:


           The Complaint also included a claim for breach

      of a December 1997 agreement for roof construction

      work. By order dated December 17, 1998, this Court

      dismissed that claim.

  3
   Plaintiff asserts that the case evaluation panel did not
discuss count IV. Defendant states that because the decision
was made outside the lawyer’s presence, no one can be sure
whether the panel discussed count IV.

                               3

I-III, plaintiff asserted that the $5,400 case evaluation


award covered only that portion of the case. 


        The circuit court agreed with plaintiff and ordered the


parties to:


             Craft a judgment here that preserves the

        appellate issue on the issue that I decided and

        otherwise dismisses the case and shows this to be a

        final order in the–the final order in this case.[4]


        Plaintiff, thereafter, appealed the summary disposition


on count IV. 


        The   Court   of   Appeals   dismissed   the   appeal   in   the


following order:


             [T]he claim of appeal is dismissed because

        appellant is not an aggrieved party. Under Reddam

        v Consumer Mortgage Corp, 182 Mich App 754; 452

        NW2d 908 (1990), a party cannot appeal an earlier

        order entered after a subsequent acceptance of the




  4
      This judgment stated:

             Plaintiff having brought this action, with its

        breach   of  contract   count   dismissed   through

        Defendant’s Motion for Partial Summary Disposition

        prior to Mediation, the cause being mediated as to

        the remaining issues, the parties having mutually

        accepted mediation on those issues, the amount of

        the award having been paid within 28 days after

        notification of the acceptances, and the Court,

        being otherwise advised in the premises:


             It is ordered that this matter is hereby

        dismissed, with prejudice, relative to the counts

        of the Complaint, which survived Defendant’s Motion

        for Partial Summary Judgment, with no interest,

        costs, or attorney fees awarded to either party.

        This is the final judgment in this matter.


                                     4
     mediation award.5


     Plaintiff applied to this Court for leave to appeal.


                        II.   Standard of Review


     We   review   de    novo   decisions   on   summary   disposition


motions. Sewell v Southfield Pub Schs, 456 Mich 670, 674; 576


NW2d 153 (1998).    Similarly, interpretation of a court rule,


like a matter of statutory interpretation, is a question of


law that this Court reviews de novo.             Marketos v American


Employers Ins Co, 465 Mich 407, 413; 633 NW2d 371 (2001).


                              III.   Analysis


     Plaintiff contends that it can appeal an earlier partial


summary disposition ruling where the parties have subsequently


accepted a case evaluation award.            We reject plaintiff’s


contention because it is contrary to the plain language of MCR


2.403(M)(1). 


     In Grievance Administrator v Underwood, 462 Mich 188,


193-194; 612 NW2d 116 (2000), we articulated the proper mode



 5
   Initially, the Court of Appeals issued an order dismissing
the appeal because there was no docket entry showing that the
trial court had dismissed count IV of the complaint.
Unpublished order, entered October 19, 1999 (Docket No.
221987).   Plaintiff filed a motion for rehearing, which
contended that the trial court made a clerical error.
Defendant answered, arguing that dismissal was proper because
no appeal lies from an earlier partial summary disposition
ruling where the parties have subsequently accepted a
mediation award. The Court of Appeals granted the motion and
dismissed the appeal. Unpublished order, entered January 13,
2000 (Docket No. 221987).

                                     5

of interpreting a court rule:


          When called on to construe a court rule, this

     Court applies the legal principles that govern the

     construction and application of statutes. McAuley

     v General Motors Corp, 457 Mich 513, 518; 578 NW2d

     282 (1998). Accordingly, we begin with the plain

     language of the court rule. When that language is

     unambiguous, we must enforce the meaning expressed,

     without    further    judicial   construction    or

     interpretation.    See Tryc v Michigan Veterans’

     Facility, 451 Mich 129, 135; 545 NW2d 642 (1996).

     Similarly, common words must be understood to have

     their everyday, plain meaning. See MCL 8.3a; MSA

     2.212(1); see also Perez v Keeler Brass Co, 461

     Mich 602, 609; 608 NW2d 45 (2000). 


     MCR    2.403(M)(1)   provides   that,   upon   both   parties’


acceptance of a case evaluation, the judgment entered pursuant


to that evaluation “shall be deemed to dispose of all claims


in the action and includes all fees, costs, and interest


. . . .”     The plain meaning of the words at issue is as


follows:


     A “claim” is defined as:


          1. The aggregate of operative facts giving

     rise to a right enforceable by a court . . . . 2.

     The assertion of an existing right; any right to

     payment or to an equitable remedy, even if

     contingent or provisional . . . . 3. A demand for

     money or property to which one asserts a right

     . . . . [Black’s Law Dictionary (7th ed).]


     An “action” is defined as:


          1. The process of doing something; conduct or

     behavior. 2. A thing done . . . . 3. A civil or

     criminal judicial proceeding. [Id.]


Thus, according to the plain meaning of these words, a claim




                                6

consists of facts giving rise to a right asserted in a


judicial proceeding, which is an action.                  In other words, the


action encompasses the claims asserted. 


          The language of MCR 2.403(M)(1) could not be more clear


that accepting a case evaluation means that all claims in the


action, even those summarily disposed, are dismissed.6                       Thus,


allowing bifurcation of the claims within such actions, as


plaintiff suggests, would be directly contrary to the language


of the rule.           We, therefore, reject plaintiff’s position


because      it   is   contrary      to   the   court     rule’s   unambiguous


language       that    upon    the    parties’    acceptance       of    a    case


evaluation all claims in the action be disposed.


          Plaintiff    cites   numerous       decisions    of   the     Court   of


Appeals as supporting its position that it may except a claim


from an action submitted to case evaluation under MCR 2.403.


In Reddam, the Court of Appeals examined the former, less


explicit version, of MCR 2.403,7 and explained that acceptance



      6
     This conclusion is mirrored in MCR 2.403(A)(1), which
explains that it is the civil action, not the claims within
the civil action, that is submitted to case evaluation:

               A court may submit to case evaluation any

          civil action in which the relief sought is

          primarily money damages . . . .

  7
          Before March 31, 1990, MCR 2.403 (M)(1) provided:

               If all the parties               accept the panel’s

          evaluation, judgment will             be entered in that


                                          7
of a case evaluation is essentially a consent judgment, but


that the parties may show they submitted less than all claims


of an action to case evaluation.


          The entry of a judgment pursuant to the

     acceptance of a mediation evaluation is, in

     essence, a consent judgment.        See Pelshaw v

     Barnett, 170 Mich App 280, 286; 427 NW2d 616

     (1988), modified on other grounds 431 Mich 910; 433

     NW2d 77 (1988).   Furthermore, one may not appeal

     from a consent judgment, order or decree. Dybata v

     Kistler, 140 Mich App 65, 68; 362 NW2d 891 (1985).

     Finally, we agree with defendant that the mediation

     rule, MCR 2.403, envisions the submission of an

     entire civil action to mediation where monetary

     damages are involved and that the mediators shall

     evaluate the total valuation of the case. That is,

     absent a showing that less than all issues were

     submitted to mediation, a mediation award covers

     the entire matter and acceptance of that mediation

     award settles the entire matter.       Accordingly,

     plaintiff’s acceptance of the mediation award

     settled all claims, including those which had been

     dismissed by partial summary disposition. [Reddam

     at 756-757.]


     These principles were followed in subsequent Court of


Appeals cases that construed the current version of MCR


2.403(M)(1). See Joan Automotive Industries, Inc v Check, 214


Mich App 383, 386-390; 543 NW2d 15 (1995), Bush v Mobil Oil


Corp, 223 Mich App 222, 227; 565 NW2d 921 (1997), and Auto


Club Ins Ass’n v State Farm Ins Cos, 221 Mich App 154, 166;


561 NW2d 445 (1997).


     These decisions improperly allow a party to make a



     amount, which includes all fees,       costs,   and

     interest to the date of judgment.


                              8
showing that “less than all issues were submitted” to case


evaluation.    Allowing   the   parties   involved   in   the   case


evaluation process to make such a showing has no basis in the


court rule.   Even if Reddam permitted such an approach under


the less detailed language of former MCR 2.403(M), there


plainly is no warrant for proceeding in that manner under the


language of the current version of MCR 2.403(M)(1):


          If all the parties accept the panel’s

     evaluation, judgment will be entered in accordance

     with the evaluation, unless the amount of the award

     is paid within 28 days after notification of the

     acceptances, in which case the court shall dismiss

     the action with prejudice.        The judgment or

     dismissal shall be deemed to dispose of all claims

     in the action and includes all fees, costs, and

     interest to the date it is entered. [Emphasis

     added.]


As we have explained, this unambiguous language evidences our


desire to avoid bifurcation of civil actions submitted to case


evaluation.   To the extent that Reddam and its progeny have


been read to suggest that parties may except claims from case


evaluation under the current rule, these cases are overruled.


If all parties accept the panel’s evaluation, the case is


over.


     In the present case, both parties accepted the panel’s


case evaluation, and defendant sent the required check within


twenty-eight days.   In those circumstances, the circuit court


should have granted defendant’s motion to dismiss, without



                                9

condition or reservation.       Thus, because the circuit court


should have dismissed this case in its entirety, the Court of


Appeals did not err when it dismissed the plaintiff’s claim of


appeal.   Accordingly, we affirm the dismissal order of the


Court of Appeals.    MCR 7.302(F)(1).


     CORRIGAN , C.J., and WEAVER , TAYLOR , YOUNG , and MARKMAN , JJ.,


concurred with CAVANAGH , J.





                                 10

                 S T A T E    O F   M I C H I G A N


                             SUPREME COURT




CAM CONSTRUCTION,


        Plaintiff-Appellant,


v                                                      No. 116751


LAKE EDGEWOOD

CONDOMINIUM ASSOCIATION,


     Defendant-Appellee.

___________________________________

KELLY, J. (dissenting).


        I believe that the judge's statements on the record make


clear that he intended plaintiff's appellate rights respecting


count IV be preserved in the final order.        It is obvious to


me, also, that both the judge and plaintiff reasonably relied


on the interpretation of MCR 2.403(M)(1) made by Reddam8 and


its progeny.     Therefore, it is unjust to apply a more strict


reading of the court rule to this plaintiff's appeal. I would


remand to the Court of Appeals for review of the summary


disposition ruling on its merits.





    8
   Reddam v Consumers Mortgage Corp, 182 Mich App 754; 452
NW2d 908 (1990).