PER CURIAM.
In this conversion and breach-of-contract case, plaintiff Aroma Wines and Equipment, Inc., appeals as of right the trial court's order granting a directed verdict in favor of defendant Columbian Distribution Services, Inc., regarding plaintiff's statutory conversion claim. Plaintiff also appeals the trial court's order denying its motion for attorney fees and costs. Because we conclude that a directed verdict was not warranted in this case, and that the trial court properly denied plaintiff's request for attorney fees and costs, we affirm in part, reverse in part, and remand for further proceedings consistent with this opinion.
Plaintiff's claims stem from its storage of wine in defendant's warehouse. Plaintiff was in the business of importing and distributing fine wine, and defendant ran a warehousing and transportation business.
In response to defendant's refusal to release any of the wine, plaintiff filed a complaint against defendant. Plaintiff amended its complaint twice, with the final version alleging breach of contract, violation of Michigan's Uniform Commercial Code (UCC), MCL 440.7209 and MCL 440.7204, common-law conversion, and statutory conversion, MCL 600.2919a. Defendant answered plaintiff's complaints and filed a counterclaim for breach of contract and account stated. Eventually, a jury trial was held regarding the parties' claims.
Relevant to the issues raised on appeal, defendant moved for a directed verdict at the close of plaintiff's proofs. Defendant's directed verdict motion addressed both the statutory conversion claim and the issue of damages. The damages argument was rejected by the trial court and is not an issue on appeal. Regarding the statutory conversion claim, defendant argued that plaintiff failed to demonstrate that defendant had converted the wine to its own use. Moreover, defendant disputed that it had benefited from the movement of the wine and argued that, in any event, "benefit" is not the same thing as "use," which is what must be established to prove statutory conversion. Plaintiff responded by arguing that the definition of "use" is much broader than defendant maintained, and that because the term is not defined by the statute it must be given its common meaning, which raises a question for the jury. Plaintiff argued that defendant used the wine for its own purposes by withholding it and using it as leverage against plaintiff, and by moving it out of temperature-controlled storage and then filling that storage with different products from other customers.
Following the parties' arguments, the trial court issued its opinion on the record, stating in pertinent part:
Accordingly, the jury was not instructed on statutory conversion. On the twelfth day of trial the jury returned its verdict, finding that defendant had converted plaintiff's wine and that the value of that wine was $275,000. The jury also found that defendant had breached its contract with plaintiff and that the amount of damage was $275,000. Finally, the jury rejected defendant's counterclaims, finding that plaintiff had not breached the contract.
After trial, plaintiff moved to enter judgment and to tax costs and attorney fees. Initially, the trial court granted plaintiff's motion for attorney fees, citing Larson v. Van Horn, 110 Mich.App. 369, 383, 313 N.W.2d 288 (1981), for the proposition that "attorney fees are available for a litigant who has suffered damage due to common law conversion." Defendant moved for reconsideration, arguing that Larson upheld the award of attorney fees as exemplary damages, which were specifically sought in that case. Moreover, defendant maintained that subsequent cases had narrowly construed the ruling of Larson, noting that a later unpublished decision explicitly refused to award attorney fees to a plaintiff who was successful in a common-law conversion action. The trial court granted defendant's motion for reconsideration, reversing its award of attorney fees to plaintiff. The trial court explained that while Larson is a published decision from 1981, subsequent unpublished decisions indicated that an award of attorney fees in common-law conversion cases is improper.
On appeal, plaintiff first argues that defendant's motion for a directed verdict in regard to the statutory conversion claim should have been denied. Specifically, plaintiff argues that the trial court improperly interpreted the "to the other person's own use" requirement of MCL 600.2919a and that there was sufficient evidence to allow the statutory conversion issue to go to the jury.
We review de novo the trial court's grant or denial of a directed verdict. Chouman v. Home Owners Ins. Co., 293 Mich.App. 434, 441, 810 N.W.2d 88 (2011). "When evaluating a motion for directed verdict, the court must consider the evidence in the light most favorable to the nonmoving party, making all reasonable inferences in the nonmoving party's favor." Id. (quotation marks and citation omitted). Conflicts in the evidence must be decided in the nonmoving party's favor to decide whether a question of fact existed. Cacevic v. Simplimatic Engineering Co. (On Remand), 248 Mich.App. 670, 679, 645 N.W.2d 287 (2001). "A directed verdict is appropriately granted only when no factual questions exist on which reasonable jurors could differ." Id. at 679-680, 645 N.W.2d 287.
MCL 600.2919a(1) provides in part, "A person damaged as a result of ... the following may recover 3 times the amount of actual damages sustained, plus costs and reasonable attorney fees: (a) Another person's stealing or embezzling property or converting property to the other person's own use." Conversion, both at common law and under the statute, is defined as "any distinct act of domain wrongfully exerted over another's personal property in denial of or inconsistent with the rights therein." Lawsuit Fin., LLC v. Curry, 261 Mich.App. 579, 591, 683 N.W.2d 233 (2004) (quotation marks and citation omitted). The jury determined that defendant was liable for common-law conversion, and defendant does not dispute the verdict on appeal. Thus, whether conversion occurred is not an issue on appeal. At issue in this case is whether plaintiff presented evidence that the conversion
This Court has never addressed the precise meaning of the phrase "own use" in the context of the conversion statute. Accordingly, we must consider the language of the statute itself. 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). "When the language is clear and unambiguous, we will apply the statute as written and judicial construction is not permitted." Id. at 247, 802 N.W.2d 311. Absent an alternative definition set forth in the statute, "every word or phrase of a statute will be ascribed its plain and ordinary meaning." Robertson v. Daimler-Chrysler Corp., 465 Mich. 732, 748, 641 N.W.2d 567 (2002). Dictionary definitions may be consulted to determine the plain and ordinary meaning of a term. Alken-Ziegler, Inc. v. Hague, 283 Mich.App. 99, 102, 767 N.W.2d 668 (2009).
Random House Webster's College Dictionary (1992) offers 22 definitions of use; most relevant in the context of conversion, "use" is defined as "to employ for some purpose[.]" Black's Law Dictionary (8th ed.) defines "use" as "[t]he application or employment of something[.]"
In light of the dictionary definitions of "use," we conclude that plaintiff submitted sufficient evidence that defendant converted the wine to its own use to survive defendant's motion for a directed verdict. Contrary to the trial court's conclusion that "to use a wine, one would have to drink it or perhaps sell it," we hold that the definition of "use" encompasses a much broader meaning. The term "use" requires only that a person "employ for some purpose," Random House Webster's College Dictionary (1992), and clearly, drinking or selling the wine are not the only ways that defendant could have employed plaintiff's wine to its own purposes.
Plaintiff further argues that remanding for a new trial is unnecessary if this Court agrees that the trial court erred by refusing to allow the issue of statutory conversion to go to the jury. Rather, plaintiff argues that because the jury specifically found defendant liable for common-law conversion, this Court should simply remand to the trial court for entry of treble damages and assessment of attorney fees under MCL 600.2919a. We disagree.
MCL 600.2919a(1) provides that a person damaged under the statute "may recover 3 times the amount of actual damages sustained, plus costs and reasonable attorney fees[.]" (Emphasis added.) The term "may" is permissive and indicates discretionary activity. Haring Charter Twp. v. Cadillac, 290 Mich.App. 728, 749, 811 N.W.2d 74 (2010). Thus, under the language in MCL 600.2912a(1), treble damages and attorney fees are discretionary. Accordingly, whether to award treble damages is a question for the trier of fact, and we cannot simply order treble damages upon a finding of conversion. This Court has come to this conclusion previously in its unpublished decisions. See LMT Corp v. Colonel, LLC, unpublished opinion per curiam of the Court of Appeals, issued April 19, 2011 (Docket No. 294063), 2011 WL 1492589 (rejecting the plaintiff's argument that this Court should simply award treble damages for the defendant's statutory conversion and holding that treble damages are permissive under the statute and are accordingly a question for the trier of fact); Poly Bond, Inc v. Jen-Tech Corp, unpublished opinion per curiam of the Court of Appeals, issued July 27, 2010 (Docket No. 290429), 2010 WL 2925428 (holding that treble damages under the statutory conversion statute are permissive).
Next, plaintiff argues that it was entitled to attorney fees despite the fact that the trial court directed a verdict in favor of defendant on its statutory conversion claim. In particular, plaintiff maintains that attorney fees are allowable for conversion claims under the common law and the UCC. Thus, plaintiff argues that the trial court abused its discretion by granting defendant's motion for reconsideration and ruling that plaintiff was not entitled to attorney fees and costs.
The relevant standards of review regarding attorney fees were recently articulated by this Court in Brown v. Home-Owners
Further, a trial court's grant or denial of a motion for reconsideration is reviewed for an abuse of discretion. Corporan v. Henton, 282 Mich.App. 599, 605, 766 N.W.2d 903 (2009). MCR 2.119(F)(3) provides:
"The general American rule is that attorney fees are not ordinarily recoverable unless a statute, court rule, or common-law exception provides the contrary." Khouri, 481 Mich. at 526, 751 N.W.2d 472 (quotation marks and citation omitted).
Plaintiff first argues that Larson, 110 Mich.App. at 383-384, 313 N.W.2d 288, is applicable in this case and provides a common-law exception to the general rule that attorney fees are not recoverable. In Larson, the defendant argued that the trial court's award of exemplary damages approximating the amount of attorney fees was improper. Id. at 382-383, 313 N.W.2d 288. The trial court specifically found that the plaintiff suffered actual damages in the amount of the attorney fees he was required to pay, and awarded plaintiff exemplary damages meant to compensate him for his attorney fees. Id. at 382, 313 N.W.2d 288. This Court stated it was not prepared to declare that caselaw supported the "general proposition that attorney fees may be awarded as a measurable element of exemplary damages." Id. at 383, 313 N.W.2d 288. It noted that previous cases awarding attorney fees as exemplary damages dealt with defendants that had committed an intentional fraud or caused the party to have to prosecute or defend against a third person. Id. This Court went on to state that it was
The Larson Court further stated that "the intentional tort of conversion, found here, is not unlike actions for false imprisonment and malicious prosecution, where the recovery of attorney fees has been allowed." Id. Therefore, this Court upheld the trial court's award of exemplary damages.
We conclude that Larson does not mandate reversal of the trial court's decision denying plaintiff's request for attorney fees. Unlike the facts of Larson, no exemplary damages were requested or awarded in this case. Further, no allegations of fraud or actions requiring a lawsuit against a third party were made by plaintiff. Thus, this case is distinguishable from Larson. Moreover, the Larson decision was issued in October 1981 and is accordingly not binding on this Court. MCR 7.215(J)(1); In re Stillwell Trust, 299 Mich.App. 289, 299 n. 1, 829 N.W.2d 353 (2013).
Therefore, we conclude that the trial court correctly determined on reconsideration that Larson does not support an award of attorney fees in this case because no exemplary damages were awarded and no fraud or other specific misconduct necessitating another lawsuit arising from the same action was alleged. Moreover, common-law conversion on its own, without the facts present in Larson, does not provide a basis for the award of attorney fees.
Plaintiff next argues that Scott v. Hurd-Corrigan Moving & Storage Co., Inc., 103 Mich.App. 322, 347-349, 302 N.W.2d 867 (1981), recognized the right to attorney fees when there was evidence of conversion in the context of the UCC. In Scott, the Court considered whether the question of exemplary damages, in which attorney fees could be included, should have been submitted to the jury. Scott, 103 Mich. App. at 348, 302 N.W.2d 867. This Court concluded that the trial court did not err by refusing to submit the issue of exemplary damages to the jury because there was no allegation of fraud and no evidence of malice. Id. Moreover, it held that because there was no "finding of proof of a wilful breach" as required to prove conversion under the UCC, no award of exemplary damages would be proper. Id. at 349, 302 N.W.2d 867.
We conclude that Scott does not mandate the award of attorney fees in this case. Again, plaintiff made no request for exemplary damages in its complaint, nor did plaintiff allege that defendant engaged in conduct such as fraud or malice that would give rise to exemplary damages. Moreover, in Scott, the plaintiff's complaint
Affirmed in part, reversed in part, and remanded for further proceedings consistent with this opinion. We do not retain jurisdiction.
WHITBECK, P.J., and HOEKSTRA and Gleicher, JJ., concurred.