Action to collect attorney fees under a land contract; Merger in relation to summary proceedings; MCL 600.5750; Summary proceedings; JAM Corp v AARO Disposal, Inc; 1300 LaFayette E Coop, Inc v Savoy

The court held that the trial court erred by granting defendant summary disposition of plaintiff’s action for attorney fees under a land contract. Plaintiff-seller sued defendant-buyer for breach of contract, alleging she incurred substantial attorney fees enforcing her rights under a land contract, triggering her right to collect reasonable attorney fees. The trial court granted summary disposition for defendant, finding the language of the attorney-fee provision “established that it ‘appl[ied] to bankruptcy only’ and that the ‘issue of merger’” was moot. On appeal, the court found that the trial court incorrectly interpreted the land contract. Rather, it concluded that “if a party hires an attorney to pursue his or her rights or files suit to enforce the provisions of the land contract, he or she is entitled to the payment of costs and attorney fees.” However, it held that resolution of the current dispute “should be put on hold until the summary proceedings come to a certain end.” The court also found that, “[g]iven the language of MCL 600.5750, [plaintiff’s] attorney-fee claim was not merged into the prior summary proceeding judgment and is not barred.” As plaintiff was “not seeking payment of any balance due on the land contract . . . the doctrine of merger does not preclude the current action.” Vacated and remanded.