Sheffer v. North American Insurance
Sheffer v. North American Insurance
Opinion of the Court
Defendant North American Insurance Company appeals as of right an order denying its motion for sanctions under MCR 2.405 and MCR 2.114. North American moved for these sanctions following entry of judgment upon the acceptance of a mediation award by both parties. The trial court denied the motion. We affirm.
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North American first argues that the trial court abused its discretion by denying its motion for offer of judgment sanctions under MCR 2.405. North American maintains that because plaintiffs Ronald E. Sheffer and Sherry M. Sheffer rejected an offer of judgment that was considerably higher than the mediation award both parties accepted, they were entitled to .sanctions. We disagree and see little merit to North American’s argument. In essence, North American asks this Court to find that an acceptance of a mediation award by both parties was a “verdict” for purposes of MCR 2.405. While we employ the ordinary rules of statutoiy construction when interpreting the
Here, MCR 2.405 plainly states that a “verdict” is (1) “a jury verdict,” (2) a “judgment by the court after a nonjury trial,” or (3) “a judgment entered as a result of a ruling on a motion after rejection of the offer of judgment.” MCR 2.405(A)(4)(a), (b), and (c). There is nothing whatsoever in this rule that even implies that a mediation award is a “verdict” for purposes of offer of judgment sanctions. Further, the court rule governing mediation states that “the judgment or dismissal [following an acceptance of a mediation award] is deemed to dispose of all claims in the action and includes all fees, costs, and interest to the date it is entered.” MCR 2.403(M)(1). Allowing a party to seek offer of judgment sanctions following an acceptance of mediation would gravely undermine the operation of MCR 2.403. The trial court’s denial of North American’s motion under MCR 2.405 was not erroneous.
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North American argues that the trial court committed clear legal error when it failed to find that the Sheffers’ claims were frivolous under MCR 2.114. Again we disagree and see little merit to North American’s argument. We note that an acceptance of a mediation award is deemed to dispose of all claims by the parties. MCR 2.403(M)(1). In Larson v Auto-Owners Ins Co, 194 Mich App 329, 333; 486 NW2d 128 (1992), this Court held that a party was not entitled
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Lastly, the Sheffers invite us to award sanctions for what they deem North American’s vexatious appeal. We decline the invitation. Although we disagree with North American’s positions, we are not convinced that they are taken in bad faith.
Affirmed. The Sheffers, being the prevailing parties, may tax costs pursuant to MCR 7.219.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.