Shefman v Law Office of Ernst Assoc, PLC, et al, unpublished per curiam opinion of the court of appeals, issued March 27, 2007 (Docket No. 269757)

Link: http://courtofappeals.mijud.net/documents/OPINIONS/FINAL/COA/20070327_C269757_69_269757.OPN.PDF

Underlying Case or Transaction: litigation

Key Concepts: (1) release and (2) frivolous claims

Shefman retained the Ernst firm to represent him in two legal actions. A dispute arose over fees. The Ernst sued for unpaid fees and Shefman counterclaimed for malpractice. On the eve of trial, Shefman's attorney withdrew and the court declared a mistrial. Shefman then retained new counsel and subsequently, the parties put a settlement agreement on the record releasing each other from all claims against each other that occurred before that date. Later, Shefman refused to sign a settlement agreement. Nevertheless, the court entered an order settling the case based on the settlement and release of claims that had been put on the record.

Shefman, representing himself, then sued the Ernst firm and two of its lawyers over their representation of him in the two legal actions. The defendants moved for summary disposition based on the release and for sanctions under MCR 2.114 and MCL 600.2591. The trial court granted the motion for summary disposition based on the settlement and release that was placed on the record. The trial court also awarded sanctions reasoning that Shefman's position was devoid of arguable legal merit.

The court of appeals upheld the sanction award and noted that Shefman's legal position was "devoid of legal merit because any claim that he had against defendants in this case was released in the settlement that he approved on the record and the subsequent settlement order entered in the district court, which was affirmed on appeal in the circuit court, and which was not further appealed to this Court. An agreement between the parties or their attorneys made in open court is binding upon the parties. Michigan Bell Telephone Co v Sfat, 177 Mich App 506, 515; 442 NW2d 720 (1989); see also MCR 2.507(G)."