Dispute over ownership of a company; Admission under MCR 2.312(B)(1); Medbury v Walsh; Motion to withdraw or amend; MCR 2.312(D); Burden of proof for fraud; Groth v Singerman; Damages; Aroma Wines & Equip, Inc v Columbian Distrib Servs, Inc

The court held that the trial court did not err by finding defendants had no ownership interest in plaintiffs’ company. Plaintiffs, the Iraqi owners of an oil supply company, and defendants, their American agents, disagreed as to whether defendants had an ownership interest in the company. The trial court found defendants had no ownership interest in the company and ordered them to repay plaintiffs for funds syphoned from the business. On appeal, the court rejected defendants’ argument that the trial court erred by finding plaintiffs purchased and owned the company. Defendant-Waleed claimed he never executed a purchase agreement under which he sold his interest in the company, claiming the signature was forged. “Waleed’s failure to respond to the request to admit acted as an admission to the request, and the trial court did not abuse its discretion by admitting the document at trial.” He also could have “moved to withdraw or amend his response to the requests for admissions, but did not avail himself of this option, either.” Further, even if the “purchase agreement had been forged, the trial court’s conclusion that Waleed had no interest in [the company] at the time of the conversion of funds . . . will not be disturbed on appeal because Waleed confirmed his intent to sell his interest in [the company] when he signed the global memorandum agreement.” Finally, plaintiffs established that Waleed exercised unlawful control over the company’s “money and appropriated that money to his own use.” Affirmed.