SAAD, P.J.
In this alleged riparian rights case, plaintiffs, James and Nancy Holton, appeal the trial court's grant of summary disposition to defendant, Carole Ward. Defendant cross-appeals because the trial court declined to hold that plaintiffs' lawsuit was frivolous and, therefore, denied defendant's motion for sanctions. Because plaintiffs have no riparian rights to the man-made body of water at issue, we affirm the trial court's grant of summary disposition. And because plaintiffs' suit is frivolous, we reverse the trial court's refusal to grant sanctions.
Plaintiffs and defendant own adjacent land parcels once owned, and subsequently divided and sold by, a common owner. To prevent his cattle from walking through a muddy wetland, the common owner dredged part of the wetland and built an earthen dam, which allowed surface water to collect in the wetland. His actions created a very large pond, which is now split between plaintiffs' and defendant's properties.
Plaintiffs claim the right to use that portion of the pond on defendant's property under the theory of riparian rights,
Michigan law is clear that riparian rights adhere to land that abuts a natural watercourse, and not, as here, to artificial or man-made bodies of water. Yet despite this well-established Michigan precedent and an earlier ruling by the Michigan Department of Environmental Quality (DEQ) that rejected a similar riparian rights claim brought by Mr. Holton to gain access to defendant's property, plaintiffs once again seek to establish riparian rights to gain access to property which is rightfully defendant's.
We hold that plaintiffs have no riparian rights to gain access to that portion of the pond that forms part of defendant's property. We accordingly affirm the part of the trial court's ruling that reflects this black-letter law. Moreover, because, in an earlier decision, the DEQ ruled that Mr. Holton had no riparian rights to access and disturb defendant's peaceful enjoyment of her property rights, we hold that collateral estoppel also bars plaintiffs' claim. In light of the DEQ ruling and well-established Michigan precedent, plaintiffs and their counsel knew or should have known that this claim was frivolous and vexatious, and therefore the trial court should have granted appropriate sanctions. Because it failed to do so, we remand for a determination of appropriate sanctions.
We so hold not only because of the obvious frivolity of plaintiffs' case. A land-owner should not have to confront the Hobson's choice of either repeated expensive litigation to reestablish the right of peaceful enjoyment of her property, or the abandonment of these historically cherished and valued property rights.
The parties own adjacent land parcels, which they obtained from a common owner.
The wetland-pond covers approximately 20 acres. When the common owner divided his lot into two parcels, the wetland-pond was also split in two, with part on plaintiffs' property and part on defendant's. This area of plaintiffs' and defendant's properties has been the subject of two prior lawsuits, both brought by Mr. Holton: (1) a 2003 action before the Oakland County Circuit Court to force defendant's predecessor in interest to remove a culvert that lowered the water level of the wetland-pond area (which Mr. Holton won),
Undeterred by this legal setback, plaintiffs launched this lawsuit in 2011 in the Oakland Circuit Court, in yet another effort to gain access to the portion of the wetland-pond on defendant's property (currently barred by defendant's fence), and claimed that defendant's denial of access violates plaintiffs' riparian rights. Defendant sought summary disposition under MCR 2.116(C)(7) and 2.116(C)(8), and in support asserted that plaintiffs' complaint is barred by collateral estoppel and res judicata because the DEQ ruled that plaintiffs have no riparian rights in this body of water. She also sought sanctions against plaintiffs for bringing a frivolous lawsuit because (1) plaintiffs knew when they brought this suit that well-established Michigan law holds that plaintiffs have no riparian rights to a man-made body of water, and (2) that the DEQ so ruled in Mr. Holton's earlier litigation.
The trial court correctly rejected plaintiffs' claims and granted defendant's motion for summary disposition. It held that collateral estoppel barred plaintiffs' action because the 2006 DEQ ruling stressed that defendant had no riparian rights in the large wetland-pond, because the wetland-pond was an artificial — i.e., man-made — waterway. The trial court, however, denied defendant's request for sanctions, holding that the riparian-rights issue was "arguable."
Plaintiffs appeal and argue that the trial court erred when it granted defendant's motion for summary disposition. They claim that they possess riparian rights in the wetland-pond, and that their suit should not have been collaterally estopped on the basis that they lack riparian rights. Plaintiffs also raise a new argument on appeal, asserting that Part 301 of the Natural Resources and Environmental Protection Act (NREPA), MCL 324.30101 et seq.,
We review de novo a trial court's decision on a motion for summary disposition, Latham v. Barton Malow Co., 480 Mich. 105, 111, 746 N.W.2d 868 (2008), and under MCR 2.116(C)(7) we aim to determine whether the moving party was entitled to judgment as a matter of law, Stoudemire v. Stoudemire, 248 Mich.App. 325, 332, 639 N.W.2d 274 (2001).
A motion for summary disposition pursuant to MCR 2.116(C)(8) tests the legal sufficiency of a plaintiff's claim based on the pleadings alone to determine whether the plaintiff has set forth a claim on which relief may be granted. Maple Grove Twp. v. Misteguay Creek Intercounty Drain Bd., 298 Mich.App. 200, 206, 828 N.W.2d 459 (2012). "Summary disposition under subrule (C)(8) is appropriate if no factual development could justify the plaintiff's claim for relief." Id. (quotation marks and citation omitted).
Claims of riparian rights are common-law claims and they are, accordingly, reviewed de novo by our Court. Mich. Citizens for Water Conservation v. Nestlé Waters North America Inc., 269 Mich.App. 25, 53, 709 N.W.2d 174 (2005) (opinion by SMOLENSKI, J.), aff'd in part and rev'd in part on other grounds 479 Mich. 280, 737 N.W.2d 447 (2007). "`[R]iparian rights' are special rights to make use of water in a waterway adjoining the owner's property." Dyball v. Lennox, 260 Mich.App. 698, 705, 680 N.W.2d 522 (2004) (citations and quotation marks omitted). Among other privileges, these rights include: the right to make natural and artificial use of the water in the watercourse;
Michigan has a straightforward rule governing riparian rights: riparian rights attach to land that abuts or includes a natural watercourse — i.e., a "natural stream of water fed from permanent or periodical natural sources and usually flowing in a particular direction in a defined channel, having a bed and banks or sides, and usually discharging itself into some other stream or body of water" Kernen v. Homestead Dev. Co., 232 Mich.App. 503, 511 n. 5, 591 N.W.2d 369 (1998) (citations and quotation marks omitted). Riparian rights do not attach to land that abuts an artificial watercourse — i.e., "waterways that owe their origin to acts of man, such as canals, drainage and irrigation ditches, aqueducts, flumes, and the like." Thompson, 379 Mich. at 679, 154 N.W.2d 473 (opinion by T.M. KAVANAGH, J.), citing 4 Restatement Torts, § 841, p 321. Stated another way, "it is clear under Michigan law that no riparian rights arise from an artificial body of water." Persell v. Wertz, 287 Mich.App. 576, 579, 791 N.W.2d 494 (2010).
As Justice KAVANAGH noted in Thompson, this rule is followed by many of our sister states,
It is undisputed that the wetland-pond in which plaintiffs claim riparian rights is an artificial body of water. The pond and deeper wetland were created in the 1950s by the common owner's earthen damming and dredging of a muddy wetland, which caused surface waters to collect in the deeper wetland, and created a pond. Accordingly, the wetland-pond area created by the dam is artificial, and plaintiffs possess no riparian rights in it. Plaintiffs have made no allegations that the common owner dammed a natural watercourse, nor is there any evidence to suggest that he did. In fact, it appears that the original wetland dredged and dammed by the common owner merely served as a collection point for surface waters — i.e., "`waters on the surface of the ground, usually created by rain or snow, which are of a casual or vagrant character, following no definite course and having no substantial or permanent existence.' Such waters are lost by percolation, evaporation, or by reaching some definite watercourse or substantial body of water into which they flow." Kernen, 232 Mich.App. at 511 n. 7, 591 N.W.2d 369, quoting Fenmode, Inc. v. Aetna Cas. & Surety Co., 303 Mich. 188, 192, 6 N.W.2d 479 (1942). Surface waters do not give rise to riparian rights: said rights only attach to land that abuts a natural watercourse. See Gregory v. Bush, 64 Mich. 37, 41, 31 N.W. 90 (1887) (noting that "outlet[s] for surface water" that have "no defined bed or channel, with banks and sides" and "no permanent source of supply" are not "governed by the well-settled rules applying to natural streams"). If the original wetland modified by the common owner was not a "natural watercourse," it is impossible for plaintiffs to have any riparian rights in the (artificial) pond and deeper wetland created by the common owner's actions. Plaintiffs cite no caselaw to the contrary, and their attempts to distinguish their situation are unavailing.
Perhaps in tacit admission that they have no viable common-law riparian-rights claim, plaintiffs, for the first time in this appeal, turn to a statute for a remedy. They assert that the definitional section of Part 301 of NREPA
In any event, plaintiffs' argument under Part 301 lacks merit.
We therefore affirm the trial court's grant of summary disposition in favor of defendant under MCR 2.116(C)(8) on the basis of plaintiffs' lack of riparian rights, because no factual development could justify plaintiffs' claim for relief.
"Generally, for collateral estoppel to apply three elements must be satisfied: (1) a question of fact essential to the judgment must have been actually litigated and determined by a valid and final judgment; (2) the same parties must have had a full [and fair] opportunity to litigate the issue; and (3) there must be mutuality of estoppel." Monat v. State Farm Ins. Co., 469 Mich. 679, 682-684, 677 N.W.2d 843 (2004) (citation and quotation marks omitted) (alteration in original).
Collateral estoppel applies to administrative proceedings if the determination was adjudicatory in nature, allowed for an appeal, and the Legislature intended that the decision would be final if no appeal was taken. Dearborn Hts. Sch. Dist. No. 7 v. Wayne Co. MEA/NEA, 233 Mich.App. 120, 129, 592 N.W.2d 408 (1998). An administrative agency's decision is "`conclusive of the rights of the parties, or their privies, in all other actions or suits in the same or any other tribunal of concurrent jurisdiction on the points and matters in issue in the first proceeding.'" Nummer v. Treasury Dep't, 448 Mich. 534, 557, 533 N.W.2d 250 (1995) (MALLETT, J., dissenting), quoting Lilienthal v. City of Wyandotte, 286 Mich. 604, 616, 282 N.W. 837 (1938).
In this case, mutuality is present and each party (or their predecessor in interest) has had a full and fair opportunity to litigate the issue of plaintiffs' riparian rights. Defendant's predecessor in interest, Sharon Bone, was a party to the 2004 action before the DEQ, and defendant would have been bound by an adverse decision against Bone. See Monat, 469 Mich. at 684-685, 677 N.W.2d 843. And both Mr. Holton and Bone had a full and fair opportunity to litigate Mr. Holton's riparian rights before the DEQ. The transcript of the DEQ hearing reveals that Mr. Holton, Bone, and defendant herself all provided extensive testimony and were cross-examined before the administrative law judge (ALJ).
In addition, a question of fact essential to the judgment in this case was actually litigated and determined by an earlier valid and final judgment — namely, the question of plaintiffs' claimed riparian rights in the wetland-pond was decided by the DEQ in its 2006 ruling. See Monat, 469 Mich. at 682, 677 N.W.2d 843. As the ALJ noted, Mr. Holton's primary complaint in his 2004 DEQ action was that defendant's fence violated his riparian rights in the wetland pond:
As such, whether Mr. Holton possessed such "water rights" was an essential part of his 2004 DEQ action.
Accordingly, the trial court correctly concluded that plaintiffs' claim is barred by collateral estoppel and properly granted summary disposition in favor of defendant.
"Awards of costs and attorney fees are recoverable only where specifically authorized by a statute, a court rule, or a recognized exception." Keinz v. Keinz, 290 Mich.App. 137, 141, 799 N.W.2d 576 (2010) (citation and quotation marks omitted). "If a pleading is signed in violation of MCR 2.114(D), the party or attorney, or both, must be sanctioned." Attorney General v. Harkins, 257 Mich.App. 564, 576, 669 N.W.2d 296 (2003). See also MCR 2.114(E). MCR 2.114(F) provides that "a party pleading a frivolous claim ... is subject to costs as provided in MCR 2.625(A)(2)." In turn, MCR 2.625(A)(2) states, "[I]f the court finds ... an action or defense was frivolous, costs shall be awarded as provided by MCL 600.2591." MCL 600.2591(1) mandates that, if a claim or defense is found to be frivolous, "the court ... shall award to the prevailing party the costs and fees incurred by that party in connection with the civil action by assessing the costs and fees against the nonprevailing party and their attorney." The statute defines "frivolous" to mean "that at least 1 of the following conditions is met":
Plaintiff's position in this case — when viewed in light of the well-established common law that makes clear there are no riparian rights to artificial bodies of water and the DEQ's straightforward ruling that Mr. Holton had no riparian rights in the water in question — was devoid of arguable legal merit. By plaintiffs' own admission, the waterway in question is artificial — and
When viewed in this light, this lawsuit is little more than an attempt to void the DEQ's determination through other legal avenues — and also an effort to harass defendant, and perhaps wear her down, with yet another legal action. See MCL 600.2591(3)(a)(i). Defendant should not be placed in a position of having to spend money to defeat repeated frivolous suits or give up her valuable property rights to peaceful and exclusive possession of her property. Plaintiffs may not agree with defendant's right to exclude them from her property, but that is a right she is entitled to exercise. See Nollan v. Cal. Coastal Comm., 483 U.S. 825, 831, 107 S.Ct. 3141, 97 L.Ed.2d 677 (1987) ("[A]s to property reserved by its owner for private use, the right to exclude [others is] one of the most essential sticks in the bundle of rights that are commonly characterized as property.") (citations and quotation marks omitted) (second alteration in original).
Therefore, we hold that plaintiffs' lawsuit is frivolous, and reverse the trial court's ruling on this issue. We hold that defendant is entitled to attorney fees and costs for frivolous litigation and we remand to the trial court for a determination of appropriate sanctions pursuant to MCR 2.114 and MCL 600.2591.
We affirm the trial court's grant of summary disposition in favor of defendant, and reverse the trial court's denial of sanctions on plaintiffs. We remand to the trial court for the imposition of sanctions in an appropriate amount. We do not retain jurisdiction.
CAVANAGH and K.F. KELLY, JJ., concurred with SAAD, P.J.
As discussed infra, we are not persuaded by Parsons' interpretation of the ILSA, and believe that the case was wrongly decided. We further note that the Parsons court was divided — Judge WHITE wrote a dissent that reached the same conclusions that we reach. See Parsons, unpub. op. at pp. 1-3 (WHITE, P.J., dissenting in part). And no subsequent decision has cited Parsons, except for Persell — which does so negatively. See Persell, 287 Mich.App. at 580-581, 791 N.W.2d 494 (disagreeing with Parsons' interpretation of the ILSA).