PER CURIAM.
In this construction lien and unjust enrichment case, plaintiff, Edward Karaus (doing business as Great Lakes Sea Walls), appeals as of right the trial court's orders granting summary disposition in favor of defendant, Bank of New York Mellon (hereafter Mellon). For the reasons stated in this opinion, we affirm in part and reverse and remand in part for further proceedings consistent with this opinion.
This case revolves around plaintiff's efforts to receive compensation for construction work that he performed on a home owned by Sheldon and Nelly Caref (hereafter the Carefs), and commonly referred to as 1258 Fabun Road, located in Glenn, Michigan (hereafter "the property"). The Carefs purchased the property on March 19, 2004. In May 2004, plaintiff entered into an oral agreement with the Carefs to perform construction work on the property. Plaintiff continued to perform construction work on the property until 2006. Thereafter, between 2006 and 2009, plaintiff performed repair work on the property.
Plaintiff maintains that he was not paid in full for his work, and accordingly, on October 26, 2009, he recorded a construction lien. The claim of lien stated that plaintiff had first provided labor or materials for improvements to the property on May 1, 2004, and that plaintiff had last provided labor or materials on October 26, 2009. The lien stated that the contract amount was $405,000. Plaintiff acknowledged payment of $80,000, and accordingly claimed a construction lien upon the property in the amount of $325,000, plus $500 for the cost of the claim of lien for a total of $325,500 plus interest.
In July 2006, the Carefs refinanced their home loan. To do so, the Carefs borrowed $1,000,000 from Home Loan Corporation. The loan was secured by a mortgage encumbering the property in the same amount. The mortgage was recorded on June 5, 2007. The mortgage was subsequently assigned to Mellon. At the time of the motion hearing, Mellon had not foreclosed on the mortgage.
On September 13, 2010, plaintiff filed a complaint against Mellon, PNC Bank,
On September 30, 2011, Mellon filed a motion for partial summary disposition pursuant to MCR 2.116(C)(10) in regard to plaintiff's construction lien claim. In support of its motion, Mellon argued that plaintiff's claim of lien was invalid because plaintiff failed to provide work pursuant to a written contract. Mellon cited MCL 570.1114, which is part of the Construction Lien Act (CLA), MCL 570.1101 et seq., and provides that a contractor does not have a right to a construction lien on an interest in a residential structure unless the work was done pursuant to a written contract conforming to specific statutory requirements. In support of its contention that the property was residential, Mellon attached an affidavit executed by Sheldon Caref in which Sheldon averred that the property is residential, and that he and his wife "resided at the Property at different times between March 19, 2004 and 2009."
Plaintiff filed a response to Mellon's motion for partial summary disposition regarding the construction lien claim on October 20, 2011. Plaintiff argued that the property was not residential because at the time he was first contacted about performing work on the property, the property was owned by NXS, LLC, (a company that is owned and controlled by Sheldon Caref), and that the property was clearly an investment property. Plaintiff further stated that neither the Carefs nor any person involved with NXS, LLC ever intended to reside on the property. Thus, plaintiff maintained that the property was commercial. In support of his position, plaintiff attached his affidavit disputing the accuracy of the statement in Sheldon Caref's affidavit. Specifically, plaintiff states that the property was not habitable at the time it was purchased by the Carefs and NXS, LLC, and that once the property became habitable it was rented by third parties, and thus was not occupied by the Carefs.
On October 3, 2011, Mellon filed a motion for partial summary disposition pursuant to MCR 2.116(C)(8) and (C)(10) in regard to plaintiff's unjust enrichment claim. In support of its claim that summary disposition was proper, Mellon argued that plaintiff could not establish a prima facie case of unjust enrichment because Mellon did not receive a benefit from plaintiff and plaintiff had an adequate remedy at law. Plaintiff filed a brief in response, and argued that Mellon did receive a benefit because but for plaintiff's improvements to the property, the entire area would have eroded and been uninhabitable. Plaintiff further argued that the legal remedy was not applicable.
The hearing regarding both motions for summary disposition was held on October 28, 2011. The parties presented arguments regarding the construction lien and the unjust enrichment claims. The trial court rendered its decision on the record. Concerning the construction lien claim, the trial court granted summary disposition in favor of Mellon because it concluded that there was no material issue of fact regarding whether the property was residential. The trial court stated that it "accept[ed] the plaintiff's statement that the Carefs didn't occupy and use the property as a residence." However, the trial court found that the property was "occupied and used" by tenants, and that the fact that lessees had occupied and used the property as a residence rendered the property residential for purposes of the CLA. The trial
In regard to the unjust enrichment claim, the trial court stated that summary disposition in favor of Mellon was proper because "there was an adequate legal remedy available to [plaintiff] and that finding and conclusion is decisive, pivotal in denying his unjust enrichment claim against [Mellon]." The trial court also stated that there was no "substantial factual foundation" regarding plaintiff's claim that the bank has been enriched. The trial court further elaborated, stating that it was granting summary disposition pursuant to MCR 2.116(C)(8) and (C)(10) on the unjust enrichment claim because there was no material issue of fact regarding whether the bank was enriched because the bank and the Carefs did not "stand in the same position."
After the trial court issued its opinions granting Mellon's motions for summary disposition, plaintiff filed two motions for reconsideration, one addressing the trial court's decision on the construction lien claim and one addressing the trial court's decision on the unjust enrichment claim. Relevant to the issues on appeal in this case, plaintiff attached several additional exhibits to support his claim that the property was commercial, not residential, to his motion for reconsideration in regard to the commercial lien claim. These additional exhibits consisted of affidavits from Norman Fautz, Diana Decker, and Donald Karaus, as well as an excerpt from the Saugatuck/Douglas Visitor's Guide. The visitor's guide showed a photograph of the deck built by plaintiff, ostensibly as part of an advertisement for rental properties. All three of the affiants stated that Sheldon Caref expressed a desire to "flip" the property and make a profit. The affiants further all indicated that the property was an investment property, and indicated that Sheldon never expressed any intent to reside at the property. The trial court denied plaintiff's motions for reconsideration, finding that plaintiff had presented the same issues already ruled on by the court and that plaintiff had failed to demonstrate a palpable error by which the court and parties were misled in regard to both motions.
We review de novo a trial court's decision to grant summary disposition. Coblentz v. City of Novi, 475 Mich. 558, 567, 719 N.W.2d 73 (2006). Summary disposition pursuant to MCR 2.116(C)(10) tests the factual support for a claim based on the affidavits, pleadings, depositions, admissions, and other evidence submitted by the parties. Id. The evidence is viewed in the light most favorable to the nonmoving party. Id. at 567-568, 719 N.W.2d 73. "Where the proffered evidence fails to establish a genuine issue regarding any material fact, the moving party is entitled to judgment as a matter of law." Maiden v. Rozwood, 461 Mich. 109, 120, 597 N.W.2d 817 (1999). Summary disposition pursuant to MCR 2.116(C)(8) is proper if the nonmoving party failed to state a claim on which relief can be granted. Kuznar v. Raksha Corp., 481 Mich. 169, 176, 750 N.W.2d 121 (2008). Claims must be "so clearly unenforceable as a matter of law that no factual development could possibly justify recovery." Id. (quotation marks and citation omitted). In reviewing a trial court's decision to grant summary disposition pursuant to MCR 2.116(C)(8), we review the pleadings alone, accepting all factual allegations in the complaint as true and construing them in a light most favorable to the nonmoving party. Id.
When a party moves the trial court for summary disposition pursuant to MCR 2.116(C)(10), the "moving party must specifically identify the matters that it believes have no disputed factual issues." St. Clair Med., PC v. Borgiel, 270 Mich.App. 260, 264, 715 N.W.2d 914 (2006); MCR 2.116(G)(4).
We also review de novo issues of statutory interpretation. Krohn v. Home-Owners Ins. Co., 490 Mich. 145, 155, 802 N.W.2d 281 (2011). The goal of statutory interpretation is to discern the intent of the Legislature by examining the plain language of the statute. Driver v. Naini, 490 Mich. 239, 246-247, 802 N.W.2d 311 (2011). If the language of the statute is clear and unambiguous, the Legislature is
Relevant in this case, the CLA limits a contractor's right to a construction lien in regard to work performed on residential structures. MCL 570.1114 provides:
Thus, to have a valid construction lien for work performed on residential structures, contractors must have performed those improvements pursuant to a written contract that satisfies the statutory requirements. "Residential structure" is defined by the CLA, MCL 570.1106(3), as "an individual residential condominium unit or a residential building containing not more than 2 residential units, the land on which it is or will be located, and all appurtenances, in which the owner or lessee contracting for the improvement is residing or will reside upon completion of the improvement."
This Court has not addressed the scope of the CLA's definition of "residential structure" in a situation analogous to this one. This Court has previously concluded that property owned by a building company was a "residential structure" despite the fact that the building company did not intend to reside on the property upon completion of a home being built on the property because a third party (the Johanneses) contracted with the building company to have a home built for them to reside in on the property. Kitchen Suppliers, Inc. v. Erb Lumber Co., 176 Mich.App. 602, 605, 608-609, 440 N.W.2d 50 (1989). This Court explained that the property was residential as defined by the CLA despite the fact that the building company
In Titanus Cement Wall Co., Inc. v. Watson, 158 Mich.App. 210, 217, 405 N.W.2d 132 (1987), this Court held that a single family residence was not a residential structure within the meaning of the CLA because the owner who contracted for the improvements to the home did not intend to reside in it upon its completion. This Court noted that it did not matter that a single family home would ordinarily be considered a residential structure because the statute's definition superseded the dictionary definition. Id.
Thus, on the basis of the plain language of the statute and this Court's interpretation and application of the CLA's definition of residential structure, the determining factor in regard to whether a property constitutes a residential structure or a commercial property is whether the owner or lessee contracting for the improvement intends to actually reside on the property on completion of construction. Kitchen Suppliers, 176 Mich.App. at 609, 440 N.W.2d 50; Titanus Cement Wall Co., Inc., 158 Mich.App. at 217, 405 N.W.2d 132. Thus, intent to reside in a structure is a prerequisite to that structure being a residential structure for purposes of the CLA.
In this case, the trial court found that there was no material issue of fact regarding whether the property was residential. The trial court stated that it "accept[ed] plaintiff's statement that the Carefs didn't occupy and use the property as a residence." However, the trial court found that the property was "occupied and used" by tenants, and that pursuant to this Court's decision in Kitchen Suppliers, the fact that lessees occupied and used the property as a residence rendered the property residential for purposes of the CLA.
We conclude that the trial court erred by granting summary disposition because there is a genuine issue of material fact in regard to whether the Carefs intended to or did reside on the property. Mellon, the moving party, presented an affidavit executed by Sheldon Caref wherein he stated that he and his wife "resided at the property at different times between March 19, 2004 and 2009" in support of its contention that the property is a "residential structure." Plaintiff, the opposing party, responded with an affidavit of his own stating that as soon as the property was habitable, the Carefs rented it out. Plaintiff further averred that the property was purchased by a company, and that it clearly appeared to be an investment property. Thus, plaintiff rebutted Mellon's evidence of the Caref's intent to reside in the property with evidence suggesting that the Carefs did not reside in the property, and in doing so established that there was a genuine issue of material fact for trial in regard to the Caref's intended use of the property. Maiden, 461 Mich. at 121, 597 N.W.2d 817; Borgiel, 270 Mich.App. at 264, 715 N.W.2d 914.
Next, plaintiff argues that the trial court erred by ruling that he failed to establish a prima facie case of unjust enrichment and also that the trial court erred by determining that plaintiff's unjust enrichment claim was barred because he had an adequate legal remedy.
Whether a claim for unjust enrichment can be maintained is a question of law that we review de novo. Morris Pumps v. Centerline Piping, Inc., 273 Mich.App. 187, 193, 729 N.W.2d 898 (2006). Trial court rulings regarding equitable matters are also reviewed de novo. Id.
A claim of unjust enrichment requires the complaining party to establish (1) the receipt of a benefit by the other party from the complaining party and (2) an inequity resulting to the complaining party because of the retention of the benefit by the other party. Id. at 195, 729 N.W.2d 898. If plaintiff in this case can establish that Mellon has been unjustly or inequitably enriched at its expense, the law will imply a contract to prevent the unjust enrichment. Id. Not all enrichment is unjust in nature, and the key to determining whether enrichment is unjust is determining whether a party unjustly received and retained an independent benefit. Id. at 196, 729 N.W.2d 898.
"One is not unjustly enriched ... by retaining benefits involuntarily acquired which law and equity give him absolutely without any obligation on his part to make restitution." Tkachik v. Mandeville, 487 Mich. 38, 48, 790 N.W.2d 260 (2010) (quotation marks omitted), quoting Buell v. Orion State Bank, 327 Mich. 43, 56, 41 N.W.2d 472 (1950). Our Supreme Court explained that unjust enrichment describes "the result or effect of a failure to make restitution of or for property or benefits received under such circumstances as to give rise to a legal or equitable obligation to account therefor." Buell, 327 Mich. at 56, 41 N.W.2d 472 (quotation marks and citation omitted).
An examination of the elements of unjust enrichment is dispositive
Therefore, we conclude that Mellon has not received a benefit from plaintiff because if anything, Mellon has merely received the benefit from the contract between plaintiff and the Carefs.
Turning to the second element, to the extent that Mellon has retained a benefit from the work plaintiff performed on the property, it received that benefit only as a third party to the agreement between plaintiff and the Carefs. There is no allegation or evidence to support the contention that Mellon requested any of the work performed by plaintiff or misled plaintiff to receive any benefit. Further, there is no evidence that Mellon ever gave any assurance that it would pay for the work completed by plaintiff, nor that it was even aware of the work as it was being performed. In light of the fact that Mellon was completely uninvolved with any negotiations that had occurred before the work on the property was commenced, it cannot be said that any benefit Mellon does retain is unjust. Further, it is not clear that Mellon has even benefitted from plaintiff's labor because Mellon has not yet foreclosed on the property and merely retains a mortgage interest. Therefore, the trial court properly granted summary disposition in favor of Mellon in regard to plaintiff's unjust enrichment claim.
Affirmed in part and reversed and remanded in part for further proceedings consistent with this opinion. We do not retain jurisdiction.
HOEKSTRA, P.J., and BORRELLO and Boonstra, JJ., concurred.