Now Accepting New Clients!

BUSINESS LAW 2: An award of damages for breach of Global Release of Claims

The parties are two companies and their individual owners. Plaintiffs and his company entered into a business relationship with defendants and their LLC.  Plaintiff is a licensed realtor. He agreed to buy and manage properties on behalf of defendant and its clients.  The parties parted ways and forged a “Global Release of Claims” (GRC) without need for a lawsuit. Plaintiffs agreed to pay defendants $65,000, and to relinquish four computers and a truck. In return, defendants released and forever discharged any and all claims against plaintiffs. Defendants also agreed not to institute any action against plaintiffs or file any complaints with any government agency or professional boards. The subsequent litigation stems from this provision.

Despite the Release of Claims unambiguous terms, defendants filed complaints against plaintiffs with the Department of Licensing and Regulatory Affairs (LARA). Plaintiffs responded by filing a lawsuit. The complaint alleged that the Defendants breached the GRC by filing a complaint with the State of Michigan falsely accusing the Plaintiff of embezzlement, fraud and other crimes and requesting damages and sanctions against Plaintiff.

The circuit court granted partial summary disposition in plaintiffs’ favor on their breach of contract claim, and instructed the parties to work out the question of damages. The court also conveyed its willingness to consider an injunction as an element of plaintiffs’ relief.

The parties were unable to come to terms regarding damages or the language of an injunction. During a hearing, both the court and plaintiffs’ counsel acknowledged that LARA might proceed with its investigation even if defendants withdrew their complaints. Plaintiffs’ could have continuing damages if the state did not desist. The court expressed its inclination to enter a preliminary injunction ordering defendants to seek to withdraw the complaint and to conduct an evidentiary hearing regarding the monetary damages based upon the attorney fees, et cetera. Defendants argued that injunctive relief was improper because plaintiffs had already monetized their remedy.

The court responded: They haven’t monetized the future damages should the State proceed and pull the license and say he cannot participate. So I think that what we’re trying to do is mitigate any potential damages by ordering defendants to request a withdrawal of their complaint from the State of Michigan and to enjoin them from further prosecuting this existing complaint. The court’s order ultimately provided: Defendants are hereby ordered to seek withdrawal of the administrative complaint, filed by them, against Plaintiff.

 On a following date, the court took evidence regarding plaintiffs’ damages. At that point, three LARA complaints were open against plaintiffs. The court reiterated that defendants had breached the GRC by filing complaints against Plaintiff, and entered judgment in plaintiffs’ favor for $15,618.95. This sum represented the amount that plaintiffs had paid their lawyers for defending against the administrative complaints up to the date of the judgment.

Many business litigation matters center on complex agreements. If you are a business owner facing litigation, obtaining the right legal representation is essential.

From our law firm in Plymouth, Michigan, we represent business owners throughout Wayne County and the surrounding region who need help with:

  • Breach of contract litigation
  • Shareholder disputes
  • Partnership disputes
  • Ownership disputes
  • Membership disputes
  • Real estate litigation and lease negotiations
  • Employment litigation

Contact Aldrich Legal Services

REAL ESTATE 18: If contract is silent as to time of performance, the law will presume a reasonable time.

The absence of an explicitly stated time for performance or payment does not render a contract invalid or unenforceable. One party’s substantial breach of a contract may relieve the other party of its obligation to perform under the contract. Substantial breach may be found in cases where the breach has effected such a change in essential operative elements of the contract that further performance by the other party is thereby rendered ineffective or impossible.

Why Does Crime Spike In The Summer?

Summer is here. While most people are dreaming about relaxing and taking a well-earned vacation, others are getting ready for their busiest time of year. According to a report by the US Department of Justice, the crime rate can increase more than...

REAL ESTATE 17: To sustain a breach of contract, plaintiff must show that the other party breached the contract, not that it will breach the contract.

Plaintiff failed to properly allege a cause of action for breach of contract, plaintiff’s claim for injunctive relief necessarily fails. An injunction is an equitable remedy rather than an independent cause of action. It is not the remedy that supports the cause of action, but rather the cause of action that supports a remedy. Thus, without a cause of action, injunctive relief is not warranted, and the trial court did not abuse its discretion in denying plaintiff further injunctive relief.

3 Estate Planning Mistakes to Avoid

Estate planning is no easy task. It can be a daunting, overwhelming and leave you with more questions than answers. Many people can benefit from having an estate plan and this article breaks down the top 3 mistakes to avoid when planning your...

FSBO: 3 Tips to Help Effectively Sell Your Home

Many homeowners are taking real estate matters into their own hands, especially when it comes to their own homes. Some of the most difficult tasks FSBO sellers encounter are selling their home at the right price, understanding paperwork and selling...

How Is Debt Split Up In A Divorce?

For some, debt is inevitable. Many individuals have some form of debt whether it’s credit card debt or student loans. You and your spouse may have accumulated debt over the years and this raises a huge question. How is debt split up in a...

What Are Some Post Legal Divorce Issues?

Once a divorce is finalized, there still may be a few legal issues that can happen after the divorce proceeding. It’s even possible that new issues can arise after the divorce. In either event, a divorce lawyer can help guide you through these...

For Sale by Owner: Do You Need an Attorney?

  For sale by owner (FSBO) homes can be a daunting task. However, if you want to do it correctly and smoothly, it’s best done with some assistance from a real estate lawyer. A real estate attorney has the knowledge and experience to...

Michigan Marijuana Statutes

In the state of Michigan, the possession of marijuana is illegal unless you have a medical condition that is debilitating. Below we discuss the marijuana statutes in Michigan. Medical Marijuana The Michigan Medical Marijuana Act states that...

Don't let a bad decision, unfair contract, or a messy divorce get in the way of a promising future!
Contact the experienced team at Aldrich Legal Services today to schedule your free initial
and secure reliable and trustworthy representation today!
Get the Help You Need From a Team You Can Truly Count On: (734) 404-3000