Opinion
364205
05-05-2023
SURGICAL CAPITAL MANAGEMENT LLC v. JAMES KELLY
LC No. 21-009007-NZ
Anica Letica Presiding Judge Kirsten Frank Kelly Thomas C. Cameron Judges
ORDER
The motion to file a supplemental brief is GRANTED and the supplemental brief filed with the motion is accepted.
Pursuant to MCR 7.205(E)(2), in lieu of granting the application, the trial court's September 30, 2022 order is REVERSED, and the matter REMANDED for entry of an order denying the motion for sanctions. The trial court's decision to impose sanctions is reviewed for an abuse of discretion, while any factual determinations underlying the decision are reviewed for clear error. Sprenger v Bickle, 307 Mich.App. 411, 422-423; 861 N.W.2d 52 (2014). Under the circumstances of this case, it was an abuse of discretion to sanction appellant for having purportedly failed to conduct a reasonable inquiry into the facts underlying the default request. MCR 1.109(E)(5) and (6). At the time the default request was made, the answer due date had passed and the register of actions showed that no answer had been filed. Appellant conducted a reasonable inquiry into the facts underlying the default request by reviewing the register of actions to determine whether an answer had been filed. Conducting a reasonable inquiry under MCR 1.109(E)(5) did not require appellant to assume that the register of actions was inaccurate.
The motion for stay pending appeal is DENIED AS MOOT in light of this Court's disposition of the application.
This order is to have immediate effect. MCR 7.215(F)(2). We do not retain jurisdiction.