VanDeventer v. Michigan Nat. Bank, Docket Nos. 98798
| Decision Date | 16 December 1988 |
| Docket Number | Docket Nos. 98798,103963 |
| Citation | 432 N.W.2d 338,172 Mich.App. 456 |
| Parties | Bradford S. VANDEVENTER, Plaintiff-Appellee, and David R. Layton, Intervening Plaintiff-Appellee, v. MICHIGAN NATIONAL BANK, Defendant-Appellant. MICHIGAN NATIONAL BANK, Plaintiff-Appellant, v. Bradford S. VANDEVENTER, David R. Layton, and R & R Telecto, Inc. jointly and severally, Defendants-Appellees. 172 Mich.App. 456, 432 N.W.2d 338 |
| Court | Court of Appeal of Michigan — District of US |
[172 MICHAPP 458] Oade & Stroud by Ted W. Stroud, East Lansing, for Bradford S. vaNdeventer.
Sinas, Dramis, Brake, Boughton, McIntyre & Reisig, P.C. by George T. Sinas and David R. Brake, Lansing, for David R. Layton.
Hubbard, Fox, Thomas, White & Bengston, P.C. by Donald B. Lawrence, Jr., and Brian L. Hiesrodt, Lansing, for Michigan Nat. Bank.
Before DANHOF, C.J., and CYNAR and DENEWETH, * JJ.
Bradford S. VanDeventer brought an action against Michigan National Bank (MNB) seeking to enjoin MNB from cashing his annuity. He previously assigned the annuity to MNB as security for a line of credit which MNB extended to R & R Telecom, Inc. (R & R). The lower court granted VanDeventer's request for a preliminary injunction prohibiting MNB from cashing his annuity until his liability to MNB was determined. The court later permanently enjoined MNB from cashing the annuity. MNB appeals as of right.
MNB brought an action to collect damages from R & R, VanDeventer and David R. Layton based on a [172 MICHAPP 459] final judgment from a Florida action. MNB alleged that VanDeventer and Layton were obligated to pay debts owed by R & R to MNB in accordance with their personal guaranties. The lower court granted summary disposition in favor of VanDeventer, Layton and R & R on the grounds of res judicata and collateral estoppel. MNB appeals as of right. MNB's appeals were consolidated. MNB claims that the lower court erred by entering the injunctions and by granting summary disposition. We agree and reverse accordingly.
MNB extended R & R a $175,000 line of credit which was evidenced by a business loan agreement, security agreement and promissory note. VanDeventer signed these documents as R & R's president. Layton signed them as its treasurer. In accordance with the business loan agreement, VanDeventer and Layton each signed $100,000 personal guaranties as security for MNB's loans to R & R. VanDeventer assigned an annuity with a principal amount of $50,000 to MNB as security for his guaranty. Both guaranties guaranteed MNB "full and prompt payment of all sums, moneys, notes, bills, loans or other indebtedness" due or payable to MNB by R & R. Both guaranties further provided:
R & R relocated its business operations to Florida and apparently defaulted on its loan payments to MNB. MNB filed suit against R & R in Florida and obtained a judgment of replevin as to all of R & R's assets. The judgment was not a final judgment. MNB advised VanDeventer that it intended to cash his annuity. VanDeventer filed a complaint in which he contested his liability to MNB and sought to enjoin MNB from cashing his annuity unless and until his liability to MNB was fixed and settled by a final judgment. The lower court entered a temporary restraining order preventing MNB from cashing the annuity. The lower court granted Layton's motion to intervene.
At a show cause hearing, VanDeventer presented expert testimony that his annuity could not be replaced because of changes in the tax laws and that there would be no way to calculate money damages if MNB improperly cashed the annuity. The lower court issued an opinion and order which granted VanDeventer's request for a preliminary injunction preventing MNB from cashing his annuity until his liability to MNB was determined. The court reasoned that the annuity was unique and that it was impossible to calculate the potential damage to VanDeventer if the annuity were improperly cashed.
At proceedings held on October 17 and 18, 1985, MNB and VanDeventer presented conflicting testimony about whether VanDeventer's damages could be calculated if MNB improperly cashed his annuity. MNB also argued and presented evidence that VanDeventer was not entitled to injunctive [172 MICHAPP 461] relief because R & R owed MNB $64,344.96 plus interest and costs. The lower court refused to consider the liability issue.
On December 3, 1985, the lower court issued an opinion and order stating that the preliminary injunction should continue because VanDeventer's annuity was unique and he would be irreparably harmed if it were cashed. On November 26, 1986, VanDeventer moved for entry of final judgment. MNB filed a response which objected to the entry of final judgment on several grounds and informed the court that a judgment had been entered against R & R in Florida. On December 23, 1986, MNB obtained a final judgment of $106,655.95 against R & R in Florida.
On January 7, 1987, the lower court entered a judgment permanently enjoining MNB from cashing VanDeventer's annuity. MNB moved to set aside the judgment and for reconsideration. The lower court denied these motions.
On May 12, 1987, MNB filed a complaint against VanDeventer, Layton and R & R seeking to recover damages based on the $106,655.95 Florida judgment and VanDeventer and Layton's personal guaranties. The lower court issued an opinion and order granting VanDeventer, Layton and R & R's motion for summary disposition on the bases of res judicata and collateral estoppel. The court found that MNB failed to properly plead and prove its claims in the first action.
We first consider whether the lower court erred by granting injunctive relief.
We review equity cases de novo, but will not reverse a trial court's decision unless that court's findings are clearly erroneous or we are convinced that we would have reached a different result if we had occupied the trial court's position. Vergote v. K mart Corp. (After Remand), 158 Mich.App. 96, [172 MICHAPP 462] 103, 404 N.W.2d 711 (1987); Calvary Presbyterian Church v. Presbytery of Lake Huron of the United Presbyterian Church in the United States of America, 148 Mich.App. 105, 109-110, 384 N.W.2d 92 (1986), lv. den. 425 Mich. 863 (1986). The grant or denial of a preliminary injunction is within the sound discretion of the trial court. Bratton v. DAIIE, 120 Mich.App. 73, 79, 327 N.W.2d 396 (1982). Injunctive relief is an extraordinary remedy which issues only when justice requires, there is no adequate remedy at law and there is real and imminent danger of irreparable injury. Dafter Twp. v. Reid, 159 Mich.App. 149, 163, 406 N.W.2d 255 (1987), ...
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