Michigan Injury Lawyer BlogMichigan Appeals Court Holds Small Claims Judgment Did Not Bar Subsequent Circuit Court Action
A plaintiff appealed the lower court’s grant of summary disposition under MCR 2.116(C)(7) in favor of the defendant in a Michigan motorcycle accident case. The circuit court determined that the small claims judgment the plaintiff obtained against the defendant for damage to his motorcycle barred his subsequent circuit court action against her for bodily injuries because both claims arose from the same accident. The Michigan Court of Appeals reversed and remanded.In July 2013, the defendant drove through an intersection and hit the plaintiff, who was riding his motorcycle. The responding police officer determined that the defendant failed to yield. The plaintiff brought a claim in the small claims division in March 2014, stating that the accident destroyed his motorcycle and caused him bodily injuries. The plaintiff explained that he did not have collision insurance on the motorcycle, which would have cost one-fourth of the motorcycle’s estimated $1,000 value. Consequently, the plaintiff asked for $900 because he expected to sell what was left of the motorcycle for $100. He obtained a judgment of $960, including $900 in damages and $60 in costs.
The plaintiff subsequently filed a complaint in the circuit court in July 2014 against the defendants (the driver and Frankenmuth Mutual Insurance Company) for claims arising out of the collision. He alleged that the driver’s negligence caused or exacerbated a neck injury that required surgery. The plaintiff agreed to dismiss one of his two claims against Frankenmuth, and Frankenmuth later settled his remaining claim.
The defendant moved for summary disposition under MCR 2.116(C)(7) (prior judgment) and (C)(8) (failure to state a claim). The defendant argued that res judicata and collateral estoppel barred the circuit court action because the small claims action involved the same claims and the same parties. The plaintiff opposed the motion.