Offer of judgment; MCR 2.405; Actual costs; Attorney fees; Interest of justice exception; Token or de minimis offer; Luidens v 63rd Dist Court; Costs & expert fees; Derderian v Genesys Health Care Sys

The court held that the trial court abused its discretion by denying defendants-sellers’ request for taxable costs and expert fees, but did not abuse its discretion by denying attorney fees under the interest-of-justice exception to MCR 2.405. Plaintiffs-buyers sued after discovering a prior fire at the residential property they bought from defendants. After defendants obtained summary disposition, they moved for actual costs and attorney fees based on plaintiffs’ rejection of a $5,000 offer of judgment, but the trial court denied the motion. On appeal, the court held that costs other than attorney fees were mandatory because “the adjusted verdict” was more favorable to defendants than the rejected offer, and the interest-of-justice exception does not apply to that part of actual costs. Thus, the trial court had to award $2,065.15 in costs and expert fees. But the court held that the trial court did not abuse its discretion by denying attorney fees because the $5,000 offer was reasonably viewed as “de minimis in the context of the case” where plaintiffs sought rescission of a $445,000 purchase agreement and the offer came before “substantial discovery took place.” Because attorney fees were properly denied, no evidentiary hearing on their reasonableness was required. Reversed in part, affirmed in part, and remanded.