AMERICAN INTERNET NEWS
vol 4/4/09
http://www.americaninternetnews.com/
The" new" news alternative. Free writers invited, Free advertising invited, subscription free with your email address. Paid premium ,2 above the cut, advertising available.
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Good Morning Flint!,By Terry Bankert ,http://www.divorcelawguy.com/
Full article at
http://goodmorningflint.blogspot.com/
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Do You want to be in a movie? Casting call in Flint noon to 5 pm. Sunday 4/5/09 at Buffalo Wild Wings,3192 S. Linden Rd. Lyon Productions movie "Minor League a Football story" Terry Bankert is planning on trying out.
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http://www.divorcelawyguy.co/SATURDAY’S Radio show "Know the Law" 9-9:30 AM. WFLT 1420 A.M. broadcasting from Flint Michigan. 239-5733 (810). Call in your Family Law Questions.
http://www.ontheradio.net/radiostations/wfltam.aspx
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SUNDAYS’S Family Law Column in the Flint Newspaper CPSA Courier See
http://cpsacourier.com/
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THE JUDGE JUST CANNOT SAY MY REFEREE DID A GOOD JOB, THEN CHANGE CUSTODY!
Necessary optimization. Flint Divorce Lawyer Terry Bankert today reviews an order to change child custody. Terry Bankert Flint child custody attorney observes as does the Court of Appeals that judges cannot blindly accept the finding of a referee, especially when custody of a child is changed. For more Flint Family Law attorney articles read the articles posted on the website of Flint Divorce attorney Terry Bankert. The complete article can be found at http://terrybankert.blogspot.com/
Today’s Issues Released 3/26/09 Unpublished:
1.Custody; Fletcher v. Fletcher; Powery v. Wells; Order modifying parenting time; Whether the trial court properly affirmed the referee's decision to modify the established custodial environment based on a preponderance of the evidence; Vodvarka v. Grasmeyer; Terry v. Affum (On Remand);
2. The clear and convincing evidence standard; MCL 722.27(1)©);
3.Consideration of the best interest factors required by MCL 722.23; Rivette v. Rose-Molina;
4.No contact order between the child and the defendant-mother's current husband
[This opinion has been modified for media presentation. Consult an attorney before you rely on its content.-Terry Bankert]
ejournal summary
The court reversed the trial court's order modifying parenting time and remanded the case because it was not clear whether the referee applied the correct burden of proof (clear and convincing evidence), the failure to definitively use the correct burden of proof constitutes clear legal error, and the trial court erred in failing to consider the best interest factors as required by MCL 722.23.
HIGHLIGHTS
THE LOWER TRIAL COURT DID WHAT?
1.DAD SAYS I SHOWED CHANGE IN CIRCUMSTANCES! DID THE REFEREE USE THE RIGHT LAW?
2.HIGH COURT TELLS THE JUDGE AND REFEREE TO DO IT RIGHT.
3.A BEST INTEREST ANALYSIS IN FAMILY LAW IS AS FUNDAMENTAL TO CHANGES IN CUSTODY AS AIR IS TO BREATHING.
4.REFERRING 101 FAILED!
5.THE TRIAL COURT JUDGE SHOULD HAVE KNOWN BETTER
"A mere statement by the trial court that the referee's findings were in the best interests of the child is not a sufficient review of the best interest factors." Reversed and remanded.
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S T A T E O F M I C H I G A N C O U R T O F A P P E A L S
e-Journal Number: 42269,CHAD S. MAXAM, Plaintiff-Appellee,
UNPUBLISHED,March 26, 2009,v No. 280827,Van Buren Circuit Court
CRYSTAL A. NIEMI, f/k/a CRYSTAL A.SNYDER,
LC No. 02-049876-DC ,Defendant-Appellant., Before: Cavanagh, P.J., and Fort Hood and Davis, JJ.,PER CURIAM.
6.THERE WAS ABUSE OF DISCRETION
7.PROPER CAUSE. CHANGE CIRCUMSTANCE, PREPONDERANCE OF EVIDENCE
8.IF CHANGE PROVEN, CUSTODIAL ENVIRONMENT THEN CLEAR AND CONVINCING
9.MOM’S LONG TERM BOYFRIEND IS A SEX OFFENDER
In the instant case, plaintiff established by a preponderance of the evidence that there had
been a change in circumstances warranting modification of parenting time. Vodvarka, supra;
Terry, supra. Plaintiff discovered in April 2006 that defendant’s long-term boyfriend (now
husband) was a registered sex offender. Defendant had knowledge of her husband’s criminal
background for many years but never informed plaintiff of this information.
10.BUT HE WAS ONLY A MODERATE RISK
11.THERE WAS A JOINT CUSTODIAL ENVIRONMENT THE CHANGE IN PARENTING WOULD CHANGE THE CUSTODY
12.JUST WHAT BURDEN DID THE REFEREE USE
It is not clear on the record whether the referee in fact applied the correct burden of proof
(clear and convincing evidence) in the determination of whether to modify the existing custodial
environment. The referee noted the appropriate burden, with case citation, in the initial
recommendation and order. However, he mistakenly stated the "preponderance of the evidence"
standard in the second recommendation following remand, and did so without case citation.
13.JUST WHAT BURDEN DID THE JUDGE USE?
Similarly, the trial court failed to indicate which standard it applied when accepting the referee’s
recommendations. Rather, it just found the referee’s recommendations were appropriate and in
the child’s best interests.
14.CLEAR ERROR ON THE PART OF JUDGE
The failure to definitively use the correct burden of proof constitutes
clear legal error. Powery, supra.
15.THEY SENT IT BACK AND TOLD THEM TO DO IT RIGHT
16.JUST HOW DID A FAMILY COURT JUDGE FORGET ABOUT THE BEST INTERESTS
Furthermore, we also find the trial court erred by failing to consider the best interest
factors required by MCL 722.23. Neither the referee nor the trial court referenced the statutory
best interest factors in their orders. Rather, the referee recounted the findings of fact and the
referee and trial court both summarily stated the custody modification was in the child’s best
interest because it was neither reasonable to expect, nor possible to ensure compliance, with
defendant staying away from her husband every other week.
THEY SENT IT BACK AND TOLD THE JUDGE TO DO IT RIGHT
Because there was no reference on the record by either the referee in his recommendations and order, or by the trial court in its order, to the best interest factors, a remand for such findings is required. Rivette v Rose-Molina, 278 Mich App 327, 329-333; 750 NW2d 603 (2008). A mere statement by the trial court that the referee’s findings were in the best interests of the child is not a sufficient review of the best interest factors.
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Terry Bankert
http://www.flintdivorce.com/
You are invited to continue these discussions on my face book.
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Saturday, April 4, 2009
Family court judge flunks the basics!
Thursday, April 2, 2009
When does the public have a right to know about a Federal Judges retirement letter to the President?
Good Morning Flint
4/2/09
Terry Bankert
http://www.FlintDivorce.com
Having just gone through the interview process for judicial appointment to a State Court position I was curious , no interest in serving, about the selection process for the Federal Court . I heard a rumor about a possible retirement from the Federal Bench and the scrambling of local State Judges for consideration. I do not know if anybody is retiring. I do wonder if the letter of intent to retire is public? How does the public know of the intended retirement of a jurist?
HOW DOES A FEDERAL JUDGE RETIRE and WHEN THE PROCESS BEGINS IS IT PUBLIC?
Judges cease performing their judicial duties when they retire by choice or because of ill health or death, or when they are subjected to the disciplinary actions of others.[5]
FEDERAL JUDGES
The main actors in the federal system are the men and women who serve as judges and justices. What characteristics do these people have that distinguish them from the rest of the citizenry? What are the qualifications – both formal and informal – for appointment to the bench? How are judges selected and who are the participants in the process? How do judges learn to be judges? How are judges disciplined and when are they removed from the bench?[5]
WHEN JUDGES RETIRE
Perhaps more problematic than removing jurists for misconduct is the removal of those who have become too old and infirm to carry out their judicial responsibilities effectively. Congress has tried with some success to tempt the more senior judges into retirement by making it financially more attractive to do so. Since 1984 federal judges have been permitted to retire with full pay and benefits under what is called the rule of 80; that is, when the sum of a judge's age and number of years on the bench is 80. Congress has also permitted judges to go on senior status instead of accepting full retirement. In exchange for a reduced caseload they are permitted to retain their office and staff and – equally important – the prestige and self-respect of being an active judge.[5]
Judges often time their resignations to occur when their party controls the presidency so that they will be replaced by a jurist of similar political and judicial orientation. A 1990 study found that especially since 1954, "judicial retirement/resignation rates have been strongly influenced by political/ideological considerations, and infused with partisanship," thus indicating that many jurists view themselves as part of a policy link between the people, the judicial appointment process, and the subsequent decisions of the judges and justices.[5]
WHEN A JUDGE NOTIFIES THE PRESIDENT OF INTENT TO RETIRE, IS THIS PUBLIC INFORMATION?
Technically, the president nominates all judicial candidates, but historically the chief executive has been more involved in appointments to the Supreme Court than to the lower courts. [5]
FEDERAL JUDGES ARE NOMINATED BY THE PRESIDENT CONFIRMED BY THE SENATE
Federal judges are nominated by the President, confirmed by the United States Senate, and serve a life term. Potential nominees are usually recommended by members of the Senate who are from the President's political party. The Senate Judiciary Committee is responsible for conducting confirmation hearings for each nominee. In this framework, whom you know as well as your political leanings count. [4]
THE PRESIDENT DELIBERATES THEN ANNOUNCES TO THE PUBLIC
The framework of judicial selection is the same for all federal judges, although the roles of the participants vary depending on the level of the U.S. judiciary. All nominations are made by the president after due consultation with the White House staff, the attorney general's office, certain senators, and other political operatives. The Federal Bureau of Investigation (FBI), an arm of the Justice Department, customarily performs a routine security check. After the nomination is announced to the public, various interest groups that believe they have a stake in the appointment may lobby for or against the candidate. Also, the candidate's qualifications will be evaluated by a committee of the American Bar Association. The candidate's name is sent to the Senate Judiciary Committee, which conducts an investigation of the nominee's fitness for the post. If the committee's vote is favorable, the nomination is sent to the floor of the Senate, where it is either approved or rejected by a simple majority vote.[5]
OBAMA HAS 40 PLUSE JUDGESHIPS TO NOMINATE CANDIDATES FOR.
Nationwide, at least 41 vacant judgeships - 29 district and 12 circuit - will await Obama once he takes office, according to the Federal Judicial Center.(11/23/08)
The President will convey to a judge his interest in nominating him to the Federal District Court. Following confirmation by the United States Senate. This creates the impression that it may be a non public process in the beginning.
THE CONSTITUTION GIVES THE PRESIDENT AUTHORITY TO APPOINT JUDGES
"The Appointments Clause of the Constitution vests the President with the authority to nominate people to federal judgeships, and it vests the Senate with the authority to give its Advice and Consent on nominations to the federal bench," explained Gerhardt. "Article I of the Constitution further empowers the Senate with the authority 'to determine rules for its proceedings.'" Consequently, the Senate has developed a number of procedural rules to govern confirmation decisions. [4]
US SENATORS OF THE STATE OF THE APPOINTMENT AND PARTY OF THE PRESIDENT HAVE A GREAT INFLUENCE ON THE PICK OF A FEDERAL JUDICIAL NOMINEE
A second reason why presidents are likely to devote more attention to Supreme Court appointments and less to lower court appointments is that tradition has allowed for individual senators and local party leaders to influence, and often dominate, lower court appointments. The practice known as senatorial courtesy is part of the appointment process for district judges. Under senatorial courtesy, senators of the president's political party who are from the home state of the nominee are asked their opinions of the candidate by the Senate Judiciary Committee. In expressing their views about a particular candidate, these senators are in a position to virtually veto a nomination. Senatorial courtesy does not apply to appellate court appointments, although it is customary for presidents to defer to senators of their party from states that make up the appellate court circuit.[5]
US SENATORS WILL SUBMIT NAMES TO THE PRESIDENT.
In the case of district judge appointments, where names are often submitted by home-state senators, the Justice Department's function is more that of screener than of initiator. Regardless of who comes up with a list of names, the Justice Department's primary duty is to evaluate the candidate's personal, professional, and political qualifications. In performing this role the department may work closely with the White House staff, with the senators involved in the nomination, and with party leaders who may wish to have some input in choosing the nominee.[5]
THE AMERICAN BAR ASSOCIATION RATES CANDIDATES
For more than five decades, the Committee on the Federal Judiciary of the ABA has played a key role in evaluating the professional credentials of potential nominees for positions on the federal bench. The committee, whose 15 members represent all the U.S. circuits, evaluates candidates on the basis of three criteria: judicial temperament, professional competence, and integrity. A candidate approved by the committee is rated either "qualified" or "well qualified," whereas an unacceptable candidate is stamped with a "not qualified" label.[5]
Posted Here by Terry Bankert 04/02/09 You are invited to continue this discussion on my Face Book Page. http://www.facebook.com/people/Terry-Bankert/645845362
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Sources
[1]
http://www.al.com/news/birminghamnews/metro.ssf?/base/news/122743180354080.xml&coll=2
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[2]
http://www.fjc.gov/
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[3]
http://washburnlaw.edu/news/2004/2004-04pdp-crow.php
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[4]
http://www.lawcrossing.com/article/861/Careers:-Federal-Judge/
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[5]
http://www.america.gov/st/usg-english/2008/May/20080522224217eaifas0.5669672.html
-FYI
Judge Paul V. Gadola
United States District Courtfor the Eastern District of MichiganFederal Building and U.S. Courthouse600 Church Street, Room 132Flint, MI 48502Courtroom: Room 127Chambers Telephone Number: (810) 341-7845Courtroom Deputy - Ruth Brissaud: (810) 341-7845Electronic Court Recorder - Jennifer Chase : (810) 341-7882
The Honorable Paul V. Gadola was born in Flint, Michigan, on July 21, 1929. Judge Gadola graduated from Michigan State University, with honors, in 1951, and received his Juris Doctor Degree from the University of Michigan Law School, in 1953.
He served in the U.S. Army from 1953 to 1955. Judge Gadola was in private practice in Genesee County, Michigan, from 1955 to 1989. Judge Gadola was nominated by President Ronald Reagan to the U.S. District Court for the Eastern District of Michigan and took office on January 6, 1989. Prior to taking office, he was certified as a Diplomat in Civil Trial Advocacy by the National Board of Trial Advocacy, and as a Lifetime Fellow of the American Trial Lawyers Foundation, and served as a arbitrator for the American Arbitration Association and as a mediator for the Circuit Courts of Genesee and Shiawassee Counties. Judge Gadola is also a Fellow of the Michigan State Bar Foundation.
He is a member of the Executive Board of the Federal Bar Association - Eastern District of Michigan Chapter, and is the President of the Michigan Chapter of the Incorporated Society of Irish/American Lawyers, and is a member of the Board of Directors of the Historical Society for the U.S. District Court for the Eastern District of Michigan, and is also a member of the Michigan Supreme Court Historical Society.
Judge Gadola is a member of the Federalist Society for Law and Public Policy Studies, and of the Advisory Committee of its Michigan Chapter, and of the Board of Directors of the Mackinac Center for Public Policy. He is also a member of the Philadelphia Society, the Economic Club of Detroit, and the Committee of Sponsors of the Flint College and Cultural Development Fund.
He is a member of the Hannah Society and the President's Club of Michigan State University and has served as a member of the Board of Directors of the Michigan State University Development Fund and as a member of the National Board of Directors of Michigan State University Alumni Association, and served as a member of the Board of Directors of the Mott Community College Foundation.
Prior to taking the bench, Judge Gadola was an elected member of the Board of Trustees of Mott Community College, located in Flint, from 1969 to 1989 and served as its Chairman from 1983 to 1989. He formerly served as President of the Urban League of Flint, President of the Cystic Fibrosis Research Foundation of Genesee County, Chairman of the March of Dimes of Genesee County and Vice-President of the Genesee County Legal Aid Society and as a Director of the Flint Environmental Action Team. He also formerly served as a Director of the Flint Area Convention and Tourist Council.
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http://www.mied.uscourts.gov/Judges/guidelines/topic.cfm?topic_id=160
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http://www.mied.uscourts.gov/Judges/guidelines/index.cfm?judgeID=10
Saturday, March 28, 2009
Mediation could be your best option.
GOOD MORNING FLINT!
3/29/09 By Flint Divorce Attorney Terry Bankert ,
contact at http://FlintDivorce.com/
or http://DivorceLawGuy.com/
Posted first to Blogging for Michigan
http://bloggingformichigan.com/
This issue will be discussed by Flint Divorce Lawyer Terry Bankert, on WFLT 1420 AM out of Flint, 9 AM to 9:30. Saturday 3/29/09. The Program "Know the Law" presents family law issues and is a call in program for your question 239-5733 area code 810. You are invited.
WHAT IS MEDIATION?
Here is how one mediator describes the process."Mediation Process: We will start in joint session with everyone present. Each side will provide an overview of the case from their perspective, and I encourage both counsel and their clients to speak at this time, if they so desire. It is generally helpful for the parties to communicate their views and feelings in joint session. Many times participants hear things they had not heard or considered before, and many issues can be resolved with everyone at the table. At some point we will probably break into separate meetings, in which we will further explore settlement possibilities privately. Then we will most likely re-convene to negotiate the final settlement terms, and reduce the agreement to writing."[1]
Another describes it as follows."Mediation is a voluntary non-binding information process in which disputing parties come together in good faith and sit with a mediator to discuss ways of resolving their problems. The participants explore options and share information. When an agreement is reached, it is put in writing and signed by both parties only after they have had the opportunity to review the document with their attorneys. Mediation is confidential and all parties will be asked to sign a confidentiality agreement along with an agreement to mediate."[1]
MEDIATION, WHEN DOES IT BECOME BINDING?
Flint Divorce Attorney Terry Bankert is also a mediator in decisions concerning child support, parenting time and divorce. Mediation is a voluntary process where you control the decision making process. But once you present your mediated decision to a court it will become binding.
In this "hot off the presses" case , Flint Divorce Lawyer Terry Bankert, the Issues are :
1.Denial of the plaintiff-wife's motion to set aside the settlement agreement obtained through mediation; Reno v. Gale; Woodard v. Custer; MCR 2.507(G); Plamondon v. Plamondon; Howard v. Howard; Windham v. Morris;
2.Whether the plaintiff was "tricked into signing the agreement" by her attorney; Whether plaintiff signed the agreement based on her "mistaken" belief she had to accept it to get spousal support; Ford Motor Co. v. Woodhaven; Meyer v. Rosenbaum;
3.Whether the terms of the agreement gave the defendant-husband an "unconscionable advantage"; Jackson v. Wayne Circuit Judge; Brown v. Siang; Clark v. DaimlerChrysler Corp.; MCR 3.216(A) and (H)(7)
The Source is :
S T A T E O F M I C H I G A N C O U R T O F A P P E A L S
SANDRA MILLER, Plaintiff-Appellant,UNPUBLISHED,March 24, 2009
v No. 282997,Oakland Circuit Court,JOHN MILLER, LC No. 2007-729752-DM
Defendant-Appellee. Before: Cavanagh, P.J., and Fort Hood and Davis, JJ.
PER CURIAM.e-Journal Number: 42246
[Disclaimer: This document has been alterd for media presentation. Consult with an attorney before you rely on its content.]
A quick Summary:
Since mediation is not binding unless it results in a mediation settlement agreement accepted by both parties, the plaintiff-wife was free to reject the agreement and proceed to trial, and admitted as much under oath on the record, and because she failed to show the settlement agreement was procedurally unconscionable, she did not establish a right to relief on this ground.
The case was referred to nonbinding mediation, following which both parties and their attorneys executed a settlement agreement.
The next day, plaintiff appeared in court and admitted on the record in open court she had read and voluntarily signed the agreement.
Although she claimed on appeal she was "tricked" into signing the agreement by her attorney, she executed the agreement based on her mistaken belief she had to accept it to obtain spousal support, and the terms of the agreement gave the defendant-husband an unconscionable advantage, the court disagreed where she was free to reject the agreement and proceed to trial and did not establish the settlement agreement was procedurally unconscionable. Affirmed.
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A more complete version of the case with additions follows:
WHEN YOU DO NOT AGREE WITH A JUDGEMENT FIRST MOTION TO SET IT ASIDE THEN TAKE IT UP ON APPEAL
Plaintiff appeals by right the judgment of divorce entered by the circuit court following
the denial of her motion to set aside a settlement agreement. We affirm. This appeal has been
decided without oral argument pursuant to MCR 7.214(E).
DID THE LOCAL COURT ABUSE ITS DECISION MAKING OR DISCRETION
We review the trial court’s decision whether to set aside a party’s acceptance of a
mediation evaluation for an abuse of discretion. Reno v Gale, 165 Mich App 86, 92; 418 NW2d
434 (1987). "An abuse of discretion occurs when the decision results in an outcome falling
outside the principled range of outcomes." Woodard v Custer, 476 Mich 545, 557; 719 NW2d
842 (2006).
COURTS ARE A DECISION MAKING PROCESS
An agreement between parties to an action or their attorneys, if subsequently denied by
either party, "is not binding unless it was made in open court, or unless evidence of the
agreement is in writing, subscribed by the party against whom the agreement is offered or by that
party’s attorney." MCR 2.507(G).
SOMETHING HAS TO BE WRONG
Generally, a party may obtain relief from a settlement agreement for mutual mistake, fraud, unconscionable advantage, or ignorance of a material term of the settlement agreement. Plamondon v Plamondon, 230 Mich App 54, 56; 583 NW2d 245 (1998); Howard v Howard, 134 Mich App 391, 394, 399-400; 352 NW2d 280 (1984).
Other grounds for relief include unilateral mistake induced by fraud, Windham v Morris, 370 Mich 188, 193; 121 NW2d 479 (1963); innocent misrepresentation, Alibri v Detroit Wayne Co
Stadium Auth, 470 Mich 895; 683 NW2d 147 (2004); lack of capacity to contract, Star Realty,
Inc v Bower, 17 Mich App 248, 250; 169 NW2d 194 (1969); and duress or coercion, Lafayette
Dramatic Productions, Inc v Ferentz, 305 Mich 193, 216-217; 9 NW2d 57 (1943).
NON BINDING MEDIATION MEANS VOLUNTARY
The instant case was referred to nonbinding mediation, following which both parties and
their attorneys executed a settlement agreement. The following day, plaintiff appeared in court
and admitted on the record in open court that she had read and voluntarily signed the agreement.
SHE SAID I WAS TRICKED, BY HER ATTORNEY?
Plaintiff first argues that she was tricked into signing the agreement by her attorney. However,
coercion by one’s own attorney is not a valid basis for setting aside a settlement agreement
"absent a showing that the other party participated in the coercion." Howard, supra at 397.
Plaintiff has neither alleged nor shown that defendant colluded with her attorney to secure her
consent to the settlement agreement.
SHE THOUGHT SHE WAS GOING TO GET SPOUSAL SUPPORT, HE DID NOT.
Plaintiff also contends that she executed the settlement agreement based on her mistaken
belief that she had to accept it to obtain spousal support. A mistake of fact warranting rescission
must be mutual, i.e., shared and relied on by both parties. Ford Motor Co v Woodhaven, 475
Mich 425, 442; 716 NW2d 247 (2006). Plaintiff has neither alleged nor shown that defendant
shared her mistaken belief and a unilateral mistake of fact is not grounds for voiding a contract.
Meyer v Rosenbaum, 71 Mich App 388, 394; 248 NW2d 558 (1976).
SHE SAYS HE HAD TOO GREAT OF AN ADVANTAGE
Plaintiff lastly contends that the agreement should be set aside because the terms gave
defendant an unconscionable advantage. The unconscionable advantage that warrants relief from
a contract is "unconscionable advantage taken by one party over the other." Jackson v Wayne
Circuit Judge, 341 Mich 55, 60; 67 NW2d 471 (1954).
MUTUAL LAWYERS SHOULD HAVE LEVELED THE PLAYING FIELD
Given that plaintiff was represented by counsel at mediation and has not alleged that defendant took advantage of her during settlement negotiations, unconscionable advantage is not a basis for relief.
Rather, plaintiff appears to contend that various terms of the settlement were unconscionable. A contract can be found to be invalid if it is one of adhesion, as where its terms are oppressive or unconscionable. Brown v Siang, 107 Mich App 91, 106-107; 309 NW2d 575 (1981).
In order for a contract or contract provision to be considered
unconscionable, both procedural and substantive unconscionability must be
present.
PROCEDURAL UNCONSCIONABILITY
Procedural unconscionability exists where the weaker party had no
realistic alternative to acceptance of the term. If, under a fair appraisal of the
circumstances, the weaker party was free to accept or reject the term, there was no
procedural unconscionability.
SUBSTANTIVE UNCONSCIONABILITY
Substantive unconscionability exists where the challenged term is not substantively reasonable.
However, a contract or contract provision is not invariably substantively unconscionable simply because it is foolish for one party and very advantageous to the other.
IT MUST SHOCK THE CONSCIENCE
Instead, a term is substantively unreasonable where the inequity of the term is so extreme as to
shock the conscience. [Clark v DaimlerChrysler Corp, 268 Mich App 138, 143-
144; 706 NW2d 471 (2005) (citations omitted).]
The case was referred to mediation, but mediation is not binding unless it results in a
settlement agreement accepted by both parties. MCR 3.216(A)(2) and (H)(7).
WHAT DO OTHERS SAY ABOUT UNCONSCIONABILITY?
The term unconscionability is not defined in the UCC. Comment 1 to UCC 2-302 provides the following insight:
The basic test is whether, in the light of the general commercial background and the commercial needs of the particular trade or case, the clauses involved are so one-sided as to be unconscionable under the circumstances existing at the time of the making of the contract … . The principle is one of the prevention of oppression and unfair surprise … and not of disturbance of allocation of risks because of superior bargaining power.[2]
Courts have attempted to identify factors and otherwise give meaning to the term unconscionability. For example, in John Deere Leasing Co v Blubaugh, 636 F Supp 1569 (D Kan 1986), the court offered a definition of unconscionability that involved ten elements. [2]
"(1) The use of printed form or boilerplate contracts drawn skillfully by the party in the strongest economic position, which establish industry-wide standards offered on a take it or leave it basis to the party in a weaker economic position … (2) a significant cost-price disparity or excessive price; (3) a denial of basic rights and remedies to the buyer of consumer goods … (4) the inclusion of penalty clauses; (5) the circumstances surrounding the execution of the contract, including its commercial setting, its purpose and actual effect … (6) the hiding of clauses which are disadvantageous to one party in a mass of fine print trivia or in places which are inconspicuous to the party signing the contract … (7) phrasing clauses in language that is incomprehensible to a layman or that divert his attention from the problems raised by them or the rights given up through them; (8) an overall imbalance in the obligations and rights imposed by the bargain; (9) exploitation of the underprivileged, unsophisticated, uneducated and the illiterate … and (10) inequality of bargaining or economic power."[2]
Id. at 1572–1573 (quoting Wille v Southwestern Bell Tel Co, 219 Kan 755, 758–759, 549 P2d 903 (1976)) (cites and emphasis omitted); see also Pride v Ford Motor Co, 341 F Supp 2d 617, 622 (ND Miss 2004) (" ‘an unconscionable contract is one such as no man in his senses and not under a delusion would make on the one hand, and no honest and fair man would accept on the other’ "; quoting Entergy Mississippi, Inc v Burdette Gin Co, 726 So 2d 1202, 1207 (Miss 1998));[2]
b. Procedural Unconscionability
§3.22 What's New in this Section Procedural unconscionability has been equated with unfair surprise as that term is used in comment 1 to UCC 2-302. Unfair surprise typically involves one of the following: (1) assent obtained by one party’s ignorance or carelessness, which is known to the other party; (2) assent obtained by the signing of forms that are difficult to read or deceptively arranged; or (3) an attempt to contract out of the contract’s dominant purpose. William B. Davenport, Unconscionability and the Uniform Commercial Code, 22 U Miami L Rev 121, 138 (1967). A lack of meaningful choice has become synonymous with procedural unconscionability. 2 William D. Hawkland, Uniform Commercial Code Series §2-302:03 (1992 & Supps).
The indicators of procedural unconscionability generally involve either a lack of knowledge or a lack of voluntariness. A lack of knowledge is demonstrated by a party’s relative unsophistication or an absence of an opportunity to study a contract term so that the term is not understood. An absence of voluntariness is illustrated by typical adhesion contracts, in which a substantial imbalance of bargaining power and an absence of meaningful choice exists. 3 Bender’s Uniform Commercial Code Service: Sales and Bulk Transfers under the Uniform Commercial Code §4.08
[2] (Richard W. Duesenberg & Lawrence P. King 1997). .[2]
Procedural unconscionability is evidenced by factors bearing on what may be called "the ‘real and voluntary meeting of the minds’ of the contracting parties: age, education, intelligence, business acumen and experience, relative bargaining power, who drafted the contract, whether the terms were explained to the weaker party, whether alterations to the printed terms were possible, whether there were alternative sources of supply for the goods." Johnson v Mobil Oil Corp, 415 F Supp 264, 268 (ED Mich 1976); see also Andersons, Inc v Horton Farms, Inc, 166 F3d 308 (6th Cir 1998); Jenkins v First American Cash Advance of Georgia, LLC, 400 F3d 868 (11th Cir 2005). In Pichey v Ameritech Interactive Media Servs, 421 F Supp 2d 1038 (WD Mich 2006), the court ruled that plaintiffs did not show that defendants had the sort of monopolistic power associated with procedural unconscionability.[2]
In Ozormoor v T-Mobile USA, Inc, No 08-11717, 2008 US Dist LEXIS 58725 (ED Mich June 19, 2008), the court found that cost-splitting requirements relating to arbitration were procedurally unreasonable because there was no reasonable alternative, but ultimately ruled that the suspect provisions could be severed from the rest of the arbitration provisions.[2]
c. Substantive Unconscionability
What's New in this Section Substantive unconscionability applies to transactions referenced in UCC 2-302 comment 1 as "one-sided" or "oppressive." Substantive unconscionability therefore focuses on the one-sided nature of a contract or a contract term. It may be present when one party is deprived of most of the agreement’s benefits or is left without a remedy for the other party’s breach. Procedural unconscionability concerns the contract formation process, while substantive unconscionability looks to the agreement’s content. 3 Bender’s Uniform Commercial Code Service: Sales and Bulk Transfers under the Uniform Commercial Code §4.08[2] (Richard W. Duesenberg & Lawrence P. King 1997).[2]
The majority of substantive unconscionability cases fall into two categories. The first category is excessive price cases. A number of courts have held contracts to be unconscionable solely on account of excessively high prices. See Shurgard Storage Ctrs v Lipton–U City, LLC, 394 F3d 1041 (2004) (price term in lease agreement’s purchase option was unconscionable as written because it would allow lessee to purchase property for less than half of its value), later proceeding, 454 F3d 934 (8th Cir 2006); Sitogum Holdings v Ropes, 352 NJ Super 555, 800 A2d 915 (2002) (great disparity between $800,000 at which plaintiff had gained right to purchase property and later appraisal and ultimate sale of property to others for nearly twice that amount demonstrated substantive unconscionability of option contract).[2]
The second category of substantive unconscionability cases involves specific clauses in contracts.
The more common examples include: [2]
disclaimers of remedies and warranties, Martin v Joseph Harris Co, 767 F2d 296 (6th Cir 1985) (disclaimer of warranty and limitation of remedy clause held unconscionable); Mallory v Conida Warehouses, Inc, 134 Mich App 28, 350 NW2d 825 (1984) (limiting remedy to seed’s purchase price found unconscionable);[2]
exclusion of consequential damages, World Enters, Inc v Midcoast Aviation Servs, Inc, 713 SW2d 606 (Mo App 1986) (where both parties to repair contract were commercial entities that had previously contracted with each other, limitation of liability for incidental and consequential damages was not hidden in fine print, and its terms were neither unusual nor harsh, neither procedural nor substantive unconscionability resulted); In re Feder Lithographic Servs, Inc, 40 BR 486 (Bankr ED Mich 1984) (absent factors that make exclusion of consequential damages unconscionable when contract was made or in its performance, buyer’s recovery for breach of warranty is limited to damages flowing from that breach);[2]
termination clauses, Gianni Sport, Ltd v Gantos, Inc, 151 Mich App 598, 391 NW2d 760 (1986) (clause allowing retailer to terminate clothing orders at any time where clothing was made especially for retailer was unconscionable); Walton v Hoover, Bax & Slovacek, LLP, 149 SW3d 834 (Tex App 2004) (termination clause in attorney fee agreement was unconscionable where it provided that fee: (1) was paid to law firm that was discharged over year and a half before settlement of case, (2) equaled 63 percent–100 percent of former client’s recovery, (3) was not tied to work performed or risk incurred by firm, (4) arose from agreement that did not clearly and accurately explain how fee was to be calculated, (5) allowed discharged attorneys unfettered discretion in determining value of their fee, and (6) was derived in part from settlement offer rejected by client), aff’d in part and rev’d in part on other grounds, 206 SW3d 557 (2006);[2]
default provisions, John Deere Leasing Co v Blubaugh, 636 F Supp 1569 (D Kan 1986) (where default provision was written on back of equipment lease in fine, light print and constituted unduly harsh remedy, provision was unconscionable);[2]
indemnification provisions, Maxon Corp v Tyler Pipe Indus, Inc, 497 NE2d 570 (Ind App 1986) (imposition of broad indemnification clause, placed in relative obscurity on back of invoice at end of long passage, without express consent of proposed indemnitor, was found unconscionable);[2]
contractual statutes of limitations, Clark v DaimlerChrysler Corp, 268 Mich App 138, 706 NW2d 471 (2005); Thurman v DaimlerChrysler, Inc, 397 F3d 352 (6th Cir 2004) (limitation of six months for bringing employment action upheld in both cases);[2]
arbitration clauses, Al-Safin v Circuit City Stores, Inc, 394 F3d 1254 (9th Cir 2005) (arbitration clauses regarding coverage of claims, remedies, arbitration fees, cost-splitting, statute of limitations, class actions, and modifications rendered arbitration agreement excessively one-sided and unconscionable); and [2]
limitation of liability, Pichey v Ameritech Interactive Media Servs, 421 F Supp 2d 1038 (WD Mich 2006) (liquidated damage provision did not shock conscience).[2]
SHE COULD HAVE REJECTED IT
Plaintiff was free to reject the settlement and proceed to trial on the scheduled trial date and admitted as much under oath on the record.
SHE LOSES
Because she has not shown that the settlement agreement was
procedurally unconscionable, she has not established a right to relief on this ground.
Posted Here by Flint Divorce Lawyer Terry Bankert 3/29/09
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[1]
Marketing Track: Educating Lawyers and Clients About the Mediation Process - What Every Litigant and Advocate Needs to Know About YOUR Process By Robert E. Lee Wright, Presented at
7th Annual Advanced Negotiation & Dispute Resolution InstituteThursday, March 13, 2008