20231207_C359082_69_359082.Opn.Pdf ( 2023 )


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  •            If this opinion indicates that it is “FOR PUBLICATION,” it is subject to
    revision until final publication in the Michigan Appeals Reports.
    STATE OF MICHIGAN
    COURT OF APPEALS
    INTERNATIONAL OUTDOOR, INC,                                      FOR PUBLICATION
    December 7, 2023
    Plaintiff-Appellant/Cross-Appellee,               9:00 a.m.
    v                                                                No. 359082
    Oakland Circuit Court
    SS MITX, LLC, d/b/a SIMPLY SELF STORAGE,                         LC No. 2016-155472-CB
    Defendant-Appellee,
    and
    LAMAR ADVERTISING OF MICHIGAN, INC,
    Defendant-Appellee/Cross-Appellant.
    LAMAR ADVERTISING OF MICHIGAN, INC,                              No. 359811
    Oakland Circuit Court
    Plaintiff-Appellee,                               LC No. 2016-155489-CB
    and
    SS MITX, LLC, d/b/a SIMPLY SELF STORAGE,
    Plaintiff,
    v
    INTERNATIONAL OUTDOOR, INC,
    Defendant-Appellant.
    Before: GADOLA, P.J., and BORRELLO and HOOD, JJ.
    GADOLA, P.J.
    -1-
    In Docket No. 359082, plaintiff, International Outdoor, Inc. (International), appeals by
    right the trial court’s order entering judgment in favor of defendants, SS MITX, LLC, doing
    business as Simply Self Storage (Simply Storage), and Lamar Advertising of Michigan, Inc.
    (Lamar) after a jury trial. Lamar cross-appeals the same order challenging the trial court’s denial
    of its claim for attorney fees. In Docket No. 359811, defendant International appeals by right the
    trial court’s award of costs to plaintiff Lamar. We affirm the trial court’s order entering judgment
    in favor of Simply Storage and Lamar, vacate the trial court’s order denying Lamar’s request for
    attorney fees, vacate in part the trial court’s order for costs, and remand to the trial court for further
    proceedings.
    I. FACTS
    This appeal arises from a contract dispute. Simply Storage operates a self-storage business
    near I-75 in Auburn Hills. In March 2009, Simply Storage leased to International the exclusive
    right to erect a billboard on its property. The lease had a five-year term and could be renewed for
    additional terms of five years. International did not erect a billboard on the property, and in
    December 2015, after the five-year term of the lease had concluded, Simply Storage leased the
    right to erect a billboard on the property to Lamar.
    International filed suit against Simply Storage and Lamar, contending that International
    renewed its exclusive lease with Simply Storage in 2013, that Simply Storage breached the
    renewed lease by thereafter contracting with Lamar, and that Lamar tortiously interfered with
    International’s contract with Simply Storage. Simply Storage denied that the lease with
    International had been renewed. Simply Storage and Lamar then sued International, alleging that
    International failed to perform on its lease with Simply Storage and thereafter tortiously interfered
    with Simply Storage’s lease with Lamar. The trial court consolidated the two cases.
    The parties moved for summary disposition under MCR 2.116(C)(10). International
    supported its motion with a letter dated December 20, 2013, signed by International’s president,
    Latif Z. Oram, purporting to renew the lease. Oram asserted that he sent the letter to Simply
    Storage in December 2013. Simply Storage presented evidence that it never received the renewal
    letter. The trial court denied the parties’ motions on the basis that a question of fact existed whether
    International timely renewed the lease.
    At trial, Oram testified that he drafted and sent the renewal letter to Simply Storage in
    December 2013. Oram admitted that, contrary to a statement in the letter, he did not include a
    check for payment, explaining that it was a form letter. When asked why International had not
    produced electronic records to demonstrate when the letter was created, Oram testified that he no
    longer owned the computer from 2013 and no longer had the relevant data on his computer’s server
    due to a computer virus. The jury found in favor of International, awarding $405,000 in damages.
    The trial court entered judgment in favor of International.
    Simply Storage and Lamar thereafter moved for relief from the judgment under MCR
    2.612(C)(1)(c). They asserted that after trial they learned that Oram created the renewal letter in
    2016 and intentionally backdated the letter to 2013 for the purpose of misrepresenting that
    International had timely renewed the lease. Simply Storage and Lamar supported their motion
    with the affidavit of Patrick Depa, a former International employee, in which Depa stated that in
    -2-
    July 2016, he saw Oram type and sign the renewal letter, backdating the letter to December 2013
    for the purpose of supporting International’s claim that it timely renewed the lease.
    The trial court held a hearing on the motion, at the conclusion of which the trial court
    ordered that International permit Simply Storage and Lamar to conduct a forensic analysis of
    International’s computers related to Depa’s assertion that the renewal letter was created in 2016
    and International’s assertion that their computer records of 2013 had been destroyed by a virus.
    The trial court thereafter held an evidentiary hearing, during which Depa testified that he had seen
    Oram create the renewal letter in 2016 and backdate the letter to 2013. In addition, the expert
    conducting the forensic analysis of International’s computer testified that he could find no
    evidence on the computer of the renewal letter being created in 2013, and no evidence of a
    computer virus wiping out files created before February 2014 as asserted. International’s own
    computer service provider testified that the reason the 2013 information was not apparent on the
    computer was because the one provided for analysis was not the one in use in 2013, but that
    information was not provided to the forensic examiner at the time of the forensic analysis.
    International’s computer service provider also testified that the computer in use by International
    in 2013 was not replaced until 2019, contradicting Oram’s assertion at trial in 2018 that the 2013
    computer was not available at the time of the first trial.
    The trial court thereafter issued an opinion in which it found Depa’s testimony sufficiently
    credible to rebut Oram’s testimony regarding the renewal letter. The trial court further found that
    International had made “flagrant misstatements” about the existence of its computer and had failed
    to fully disclose witnesses who had information about the case. The trial court entered an order
    setting aside the judgment and ordering a new trial.
    At the conclusion of the second trial, the jury found in favor of Simply Storage and Lamar.
    The jury determined that International tortiously interfered with Lamar’s contractual relationship
    with Simply Storage and awarded Lamar $687,244 in damages. The jury also found that Lamar
    was entitled to reasonable attorney fees as an element of damages. Lamar thereafter sought
    $844,011.40 in attorney fees and submitted a bill of costs seeking $40,237.86 in costs. The trial
    court determined that Lamar was not entitled to its attorney fees as an element of damages, but
    entered an order granting Lamar’s request for costs. The trial court denied International’s motion
    for judgment notwithstanding the verdict. These appeals followed and were consolidated by this
    Court.
    II. DISCUSSION
    A. MOTION FOR RELIEF FROM JUDGMENT
    International contends that the trial court abused its discretion by granting Simply Storage’s
    and Lamar’s motion for relief from judgment after the first jury trial because (1) Depa’s assertions
    could have been discovered by reasonable diligence before the first trial, (2) Depa’s assertions
    were not credible, and (3) the trial court made errors at the evidentiary hearing that warrant
    reversal. We disagree.
    We review a trial court’s decision to grant or deny a motion for relief from judgment for
    an abuse of discretion, which occurs when the trial court’s decision falls outside the range of
    -3-
    principled outcomes. Adler v Dormio, 
    309 Mich App 702
    , 707; 
    872 NW2d 721
     (2015). A trial
    court also abuses discretion when it premises its exercise of discretion on an error of law. Ronnisch
    Constr Group, Inc v Lofts on the Nine, LLC, 
    499 Mich 544
    , 552; 
    886 NW2d 113
     (2016). We
    review de novo the trial court’s interpretation and application of the court rules and the rules of
    evidence. Kuebler v Kuebler, ___ Mich App ___, ___; ___ NW2d ___ (2023) (Docket No.
    362488); slip op at 6.
    1. DUE DILIGENCE
    International first contends that the trial court abused its discretion by granting the motion
    for relief from judgment after the first jury trial because Simply Storage and Lamar could have
    discovered Depa’s assertions by due diligence before the first trial. We disagree that defendants
    were obligated to demonstrate due diligence.
    MCR 2.612(C) sets forth the bases under which a party may move for relief from judgment.
    MCR 2.612(C)(1) provides:
    (C) Grounds for Relief from Judgment.
    (1) On motion and on just terms, the court may relieve a party or the legal
    representative of a party from a final judgment, order, or proceeding on the
    following grounds:
    (a) Mistake, inadvertence, surprise, or excusable neglect.
    (b) Newly discovered evidence which by due diligence could not have been
    discovered in time to move for a new trial under MCR 2.611(B).
    (c) Fraud (intrinsic or extrinsic), misrepresentation, or other misconduct of
    an adverse party.
    (d) The judgment is void.
    (e) The judgment has been satisfied, released, or discharged; a prior
    judgment on which it is based has been reversed or otherwise vacated; or it is no
    longer equitable that the judgment should have prospective application.
    (f) Any other reason justifying relief from the operation of the judgment.
    MCR 2.612(C)(1)(b) (newly discovered evidence) and (C)(1)(c) (fraud) provide distinct
    grounds for relief from a judgment. Under MCR 2.612(C)(1)(b), newly discovered evidence is
    not sufficient to grant relief from a judgment unless it could not have been discovered through due
    diligence in time to move for a new trial under MCR 2.611(B). A party seeking relief from
    judgment based on newly discovered evidence must establish that (1) the evidence, not simply its
    materiality, is newly discovered, (2) the evidence is not merely cumulative, (3) the newly
    discovered evidence is likely to change the result, and (4) the party moving for relief from
    judgment was not able to produce the evidence with reasonable diligence. South Macomb Disposal
    Auth v American Ins Co, 
    243 Mich App 647
    , 655; 
    625 NW2d 40
     (2000). By contrast, MCR
    -4-
    2.612(C)(1)(c) does not impose a due diligence requirement on the party seeking relief from
    judgment on the basis of fraud, misrepresentation, or the misconduct of an adverse party.
    Additionally, MCR 2.612(C)(1)(f) permits the trial court to grant relief from judgment for
    “any reason justifying relief.” Generally, relief is granted under MCR 2.116(C)(1)(f) when the
    reason for setting aside the judgment is not included in (C)(1)(a)-(e), and when the judgment was
    obtained by the improper conduct of the party in whose favor the judgment was entered. Heugel
    v Heugel, 
    237 Mich App 471
    , 478-479; 
    603 NW2d 121
     (1999). However, a trial court is justified
    in granting relief under MCR 2.116(C)(1)(f) “even where one or more of the bases for setting aside
    a judgment under subsections a through e are present, when additional factors exist that persuade
    the court that injustice will result if the judgment is allowed to stand.” Id. at 481.
    Relatedly, the bases for granting a new trial are set forth in MCR 2.611, which provides,
    in relevant part:
    (A) Grounds.
    (1) A new trial may be granted to all or some of the parties, on all or some of the
    issues, whenever their substantial rights are materially affected, for any of the
    following reasons:
    ***
    (b) Misconduct of the jury or of the prevailing party.
    ***
    (f) Material evidence, newly discovered, which could not with reasonable diligence
    have been discovered and produced at trial.
    ***
    (h) A ground listed in MCR 2.612 warranting a new trial.
    ***
    (B) Time for Motion. A motion for a new trial made under this rule or a motion
    to alter or amend a judgment must be filed and served within 21 days after entry of
    the judgment.
    In this case, defendants moved for relief from judgment under MCR 2.612(C)(1)(c)
    asserting that Oram fraudulently represented that the letter purporting to renew the lease had been
    sent to Simply Storage in December 2013. Defendants offered Depa’s affidavit as proof that Oram
    created the letter in July 2016, but backdated the letter to 2013 for the purpose of misrepresenting
    that International had renewed the lease three years earlier.
    International contends that under MCR 2.612(C), defendants were required to establish
    that Depa’s averments constituted newly discovered evidence that they could not have discovered
    -5-
    with reasonable diligence before the first trial. In support of this theory, International directs this
    Court’s attention to Stallworth v Hazel, 
    167 Mich App 345
    ; 
    421 NW2d 685
     (1988).1 In Stallworth,
    the plaintiff sued the defendant to establish that the defendant was the father of her child. A jury
    found that the defendant was not the child’s father. Id. at 349. The plaintiff moved for a new trial
    and for relief from judgment, alleging in part that the defendant perjured himself when he denied
    that he had written the date on a letter that had been at issue during the trial. In support of her
    motion, the plaintiff presented a report from a handwriting expert opining that the defendant had
    written the date that appeared on the letter. The trial court denied the motions, reasoning that the
    plaintiff could have obtained the handwriting analysis before the first trial. Id. at 349. This Court
    affirmed, stating in relevant part:
    Because plaintiff’s allegation of perjury is dependent upon newly
    discovered evidence, we conclude that such perjury should warrant relief from
    judgment only if it could not have been discovered and rebutted at trial by the
    exercise of due diligence. Any other result would undermine MCR 2.611(A)(1)(f),
    which allows a new trial based on newly discovered evidence only when that
    evidence “could not with reasonable diligence have been discovered and produced
    at trial.” [Id. at 356.]
    We are unpersuaded that the reasoning of Stallworth supports International’s argument that
    due diligence must be demonstrated for a moving party to obtain relief from judgment on the basis
    of fraud. In Stallworth, this Court recognized the historical distinction between intrinsic and
    extrinsic fraud, which was a procedural distinction; a court sitting in equity could not grant relief
    from a judgment entered in a different court if the claim involved intrinsic fraud; rather, only the
    original court could grant relief for intrinsic fraud. See id. at 355. That distinction is not relevant
    under MCR 2.612(C), which permits the trial court to grant relief from a judgment on the basis of
    fraud without regard to whether the fraud was intrinsic or extrinsic.
    Moreover, Stallworth concluded that because the plaintiff’s allegation of fraud was based
    upon the report of the handwriting expert, which could have been sought by the plaintiff earlier,
    the plaintiff had not demonstrated diligence sufficient to obtain relief from judgment. MCR
    2.612(C)(1)(b) and (C)(1)(c), however, provide distinct grounds for relief from a judgment,
    distinguishing fraud, misrepresentation, and improper conduct by an adverse party as a basis for
    setting aside a judgment from the mere discovery of new evidence after trial. We observe that
    evidence of fraud typically is concealed from the moving party by the opposing party at the time
    of trial. Consequently, it will almost always be the case that whenever a party raises fraud,
    misrepresentation, or other misconduct of an adverse party as a basis to set aside a judgment, the
    evidence of that conduct is likely newly discovered by the moving party. Regardless of whether
    1
    Because Stallworth was published before November 1, 1990, it is not strictly binding on this
    Court. See MCR 7.215(J)(1). It nevertheless “has precedential effect under the rule of stare
    decisis.” MCR 7.215(C)(2); Legacy Custom Builders, Inc v Rogers, ___ Mich App ___, ___; ___
    NW2d ___ (2023) (Docket No. 359213); slip op at 5 n 1. See also Woodring v Phoenix Ins Co,
    
    325 Mich App 108
    , 114-115; 
    923 NW2d 607
     (2018). Although this Court has applied Stallworth
    in unpublished opinions, those decisions are not binding on this Court. See MCR 7.215(C)(1)
    -6-
    it is newly discovered, however, evidence of fraud is given a distinct category under the court rule
    delineating it from evidence that is merely newly discovered. By grafting the due diligence
    requirement of newly discovered evidence relevant to MCR 2.612(C)(1)(b) onto the grounds stated
    under MCR 2.612(C)(1)(c), the Court in Stallworth interpreted the court rule in such a way as to
    remove fraud as an independent ground for relief from judgment under MCR 2.612(C)(1).
    The Court in Stallworth reasoned that to not impose a due diligence requirement “would
    undermine MCR 2.611(A)(1)(f), which allows a new trial based on newly discovered evidence
    only when that evidence ‘could not with reasonable diligence have been discovered and produced
    at trial.’ ” Stallworth, 
    167 Mich App at 356
    . But just as there is a distinction between the
    requirements of MCR 2.612(C)(1)(b) and (C)(1)(c), there is a distinction between the requirements
    of MCR 2.611(A)(1)(f) and (A)(1)(h). MCR 2.611(A) provides that the trial court may grant a
    new trial when the substantial rights of a party are materially affected for any of the reasons stated
    in that subsection. One of the reasons is stated in MCR 2.611(A)(f), which provides “[m]aterial
    evidence, newly discovered, which could not with reasonable diligence have been discovered and
    produced at trial.” A separate basis for granting a new trial is stated in MCR 2.611(A)(h), which
    states, “[a] ground listed in MCR 2.612 warranting a new trial.” Fraud is a ground listed in MCR
    2.612 justifying relief from a judgment, and thus falls into the category of MCR 2.611(A)(h), not
    MCR 2.611(A)(f). In sum, we hold that MCR 2.612(C)(1)(c) does not impose a requirement of
    due diligence upon a party seeking relief from judgment on the basis of fraud, misrepresentation,
    or other misconduct of an adverse party.
    We observe, however, that although defendants were not required to show due diligence in
    discovering the fraud, the record in this case nonetheless amply supports the conclusion that
    Simply Storage and Lamar exercised diligence to ascertain the legitimacy of the renewal letter in
    the earlier litigation. During discovery, Lamar asked International to identify “any persons who
    provided information used in answering this First Discovery Set.” International answered: “Randy
    Oram, President; Jeff Sieving, Corporate Counsel; and Patrick Depa, Director, Real Estate.” When
    asked in the same set of requests, however, to identify all persons that “you believe may have
    information regarding the facts giving rise to the claims and defenses in this action,” International
    did not list Depa. International also did not list Depa when asked to identify “any and all person(s)
    with information about the facts alleged in the complaint and/or the Defendant’s denials of those
    facts.” Read together, International’s answers to the interrogatories can reasonably be understood
    as an assertion by International that Depa, although he may have assisted in some unstated way in
    preparing the discovery responses, had no relevant information concerning the substance of the
    dispute. Accordingly, International led Lamar to believe that it had no grounds to depose Depa
    despite International knowing that Depa had information about the provenance of the renewal
    letter.
    International suggests that Simply Storage and Lamar could not reasonably rely on
    International’s answers to the interrogatories and should have investigated further, implying that
    Lamar should have assumed that Depa had information notwithstanding International’s assertion
    to the contrary. We disagree. The purpose of discovery is to simplify and clarify the issues to be
    tried. Hamed v Wayne Co, 
    271 Mich App 106
    , 109; 
    719 NW2d 612
     (2006). International had a
    duty to make complete and correct disclosures, see MCR 2.302(G)(3)(a)(i), and we reject an
    interpretation of the court rules that requires a party to assume that his or her opponent has violated
    the rules of discovery. Simply Storage and Lamar were permitted to rely on International’s
    -7-
    discovery responses and cannot be faulted for failing to depose Depa after International asserted
    that Depa had no information relevant to the claims or defenses at issue.2 We conclude that
    although Simply Storage and Lamar were not required by MCR 2.612(C)(1)(c) to demonstrate
    diligence in discovering International’s fraud, they did not fail to exercise diligence in attempting
    to ascertain the validity of the renewal letter.
    2. DEPA’S CREDIBILITY
    International also contends that the trial court abused its discretion by finding Depa’s
    testimony credible when granting the motion for relief from judgment. We review for an abuse of
    discretion the trial court’s decision to admit or exclude evidence. Mitchell v Kalamazoo
    Anesthesiology, PC, 
    321 Mich App 144
    , 153; 
    908 NW2d 319
     (2017). We review the trial court’s
    findings of fact for clear error, giving regard to “the special opportunity of the trial court to judge
    the credibility of the witnesses who appeared before it.” MCR 2.613(C); Dep’t of Environmental
    Quality v Sancrant, 
    337 Mich App 696
    , 717; 
    976 NW2d 874
     (2021).
    International argues that there were inconsistencies and misrepresentations in Depa’s
    affidavit that demonstrated that Depa was not credible. During the evidentiary hearing,
    International’s lawyer cross-examined Depa about inconsistencies in his affidavit. For example,
    counsel questioned Depa about his assertion in the affidavit that, when searching for the renewal
    letter, the staff at International looked in every file. Depa agreed that the staff actually looked in
    every file pertinent to billboards, not necessarily every single file of every kind. Depa also agreed
    that during his deposition he conceded that it was possible that Oram replaced his computer
    without Depa’s knowledge. In addition, Depa agreed that, contrary to his assertion in his affidavit
    that International forgot about the lease until 2016, the lease was mentioned occasionally during
    meetings, although no one took action on the lease. International’s lawyer also elicited testimony
    from Depa casting doubt on his assertion that he informed Oram that the lease had expired, and
    testimony that Depa asked Oram to lie to a prospective employer.
    Although International’s lawyer effectively cross-examined Depa regarding the accuracy
    of Depa’s recollections, the trial court correctly observed that the inaccuracies with which Depa
    was confronted did not undermine his testimony that he saw Oram draft and print the back-dated
    renewal letter in 2016. The trial court was in the best position to assess the weight and credibility
    of Depa’s testimony at the evidentiary hearing. See MCR 2.613(C). In addition, International did
    not present evidence to support its assertion that all computer data surrounding the letter had been
    lost, lending support to Depa’s testimony that the renewal letter had in fact been created in 2016
    and that International deliberately deleted or destroyed evidence that would have established the
    letter’s provenance. On this record, we have no basis to second guess the trial court’s superior
    ability to assess Depa’s credibility. See Swain v Morse, 
    332 Mich App 510
    , 524; 
    957 NW2d 396
    2
    Similarly, Simply Storage and Lamar did not lack diligence for failing to make further discovery
    requests related to International’s computers based upon International’s assurances that the
    computer information was no longer available.
    -8-
    (2020) (The judicial system relies upon the fact-finders to determine the credibility of the
    evidence).
    3. EVIDENTIARY CHALLENGES
    a. CHARACTER EVIDENCE
    International contends that the trial court improperly admitted propensity evidence at the
    evidentiary hearing. Depa testified at the hearing that he observed Oram create the renewal letter
    in 2016 and backdate the letter to 2013, and that he also had observed Oram alter other documents
    in the past. He testified, in relevant part:
    Q. Had you ever had any experience with Mr. Oram doing anything of this
    nature before, altering the date on a document, or altering a document?
    A. Many, many times.
    Q. And what had you seen before?
    A. He would manipulate engineering plans. He would move stamps from
    other plans that were stamped and reviewed by engineers to engineering plans and
    building plans that weren’t approved by engineers.
    He would also manipulate building code dates for building code—for plans
    that were designed—or engineered to a specific building code in the past, but now
    a new building code was adopted by the state that he would move—he would
    actually move that—or change that date from 2011, building code—Michigan
    BC—Michigan building code—to now 2015 Michigan building code, . . .
    International’s lawyer objected to the testimony as improper evidence of “other bad acts”
    subject to exclusion under MRE 404(b). Lamar’s lawyer responded that the testimony was
    admissible under MRE 404(b) as evidence of Oram’s system of altering dates on documents. The
    trial court overruled International’s objection. We conclude that the trial court erroneously
    admitted Depa’s testimony that Oram altered other documents in the past, but the error was
    harmless.
    Generally, only relevant evidence is admissible. MRE 402. Evidence is relevant when it
    has “any tendency to make the existence of any fact that is of consequence to the determination of
    the action more probable or less probable than it would be without the evidence.” MRE 401.
    Evidence that is logically relevant under MRE 401 and 402, however, nonetheless may be
    excluded under a rule of legal relevance. In that regard, MRE 404 generally precludes the
    admission of character evidence to prove that the actor acted in conformity with that character
    despite its relevance. MRE 404 provides in pertinent part:
    (a) Character Evidence Generally. Evidence of a person’s character or a trait of
    character is not admissible for the purpose of proving action in conformity
    therewith on a particular occasion, . . .
    -9-
    ***
    (b) Other Crimes, Wrongs or Acts.
    (1) Evidence of other crimes, wrongs, or acts is not admissible to prove the
    character of a person in order to show action in conformity therewith. It may,
    however, be admissible for other purposes, such as proof of motive, opportunity,
    intent, preparation, scheme, plan or system in doing an act, knowledge, identity, or
    absence of mistake or accident when the same is material, whether such other
    crimes, wrongs, or acts are contemporaneous with, or prior or subsequent to the
    conduct at issue in the case.
    Other acts evidence under MRE 404(b) is only admissible “when a party shows that it is
    (1) offered for a proper purpose, i.e., to prove something other than . . . propensity to act in a
    certain way, (2) logically relevant, and (3) not unfairly prejudicial under MRE 403.” Rock v
    Crocker, 
    499 Mich 247
    , 257; 
    884 NW2d 227
     (2016). In this case, the trial court erred by accepting
    other acts evidence without a “proper purpose,” because Lamar’s stated purpose was effectively
    propensity evidence. See MRE 404(b). The trial court also failed to offer a limiting instruction.
    See People v VanderVliet, 
    444 Mich 52
    , 75; 
    508 NW2d 114
     (1993). Nonetheless Depa’s testimony
    regarding Oram’s other acts of falsifying documents could have been properly admitted under
    MRE 404(b) for myriad other proper purposes. Most obviously it tends to show lack of accident
    or mistake related to Oram’s explanations for International’s inability to locate metadata related to
    the document at issue in this case. See MRE 404(b)(1). Moreover, improper admission of other-
    acts evidence “is presumed not to be a ground for reversal unless it affirmatively appears that,
    more probably than not, it was outcome determinative—i.e., that it undermined the reliability of
    the verdict.” People v Denson, 
    500 Mich 385
    , 409; 
    902 NW2d 306
     (2017) (quotation marks and
    citation omitted). When reviewing the improper admission of other acts evidence, we must “focus
    on the nature of the error and assess its effect in light of the weight and strength of the untainted
    evidence.” Id. at 409-410 (alterations, quotation marks, and citation omitted). Here, the
    inadmissible testimony was relatively minor compared to other high-confidence corroborating
    evidence of falsification of the documents at issue. Considering that the evidence could have been
    properly admitted on other grounds, and in light other high-confidence corroborating evidence, the
    error in this case was harmless.
    b. FAYCURRY’S TESTIMONY
    International also contends that the trial court erred by preventing International from
    introducing evidence that Depa left a message with another employee, James Faycurry. Depa
    testified that no one at International had taken an interest in the lease with Simply Storage until
    about January or February 2016, which Depa recalled was about the time Faycurry started working
    with International, and that Faycurry renewed Oram’s interest in the lease with Simply Storage at
    that time. By contrast, Faycurry testified at the evidentiary hearing that he began working for
    International in February 2017. International’s lawyer attempted to introduce into evidence a
    voicemail message Depa purportedly left Faycurry in June 2019, wherein Depa attempted to
    confirm the date Faycurry began his employment with International and also made a derogatory
    remark about Oram. International argued that the voicemail message was offered to impeach Depa
    because Depa admitted on the voicemail that he was a contractor, not an employee, that Depa was
    -10-
    unsure of when Faycurry began his employment with International at the time he made his
    affidavit, and that the voicemail also showed Depa’s animosity toward Oram. The trial court
    excluded the voicemail as hearsay.
    Hearsay is a statement other than one made by the declarant while testifying at the hearing
    that is offered to prove the truth of the matter asserted, MRE 801(c), and is generally inadmissible.
    MRE 802. Evidence that Depa was biased against Oram generally would be admissible to attack
    Depa’s credibility. However, International did not have to admit the voicemail message to
    establish the points that it wished to make. It could have cross-examined Depa about his animosity
    toward Oram and could have confronted him with the voicemail and other evidence if he denied
    it. International also had cross-examined Depa about his understanding of his employment status
    and suggested that Depa misrepresented himself as an employee. International also demonstrated
    that Depa’s affidavit was incorrect about the start date of Faycurry’s employment, without resort
    to the voicemail. On the record before the trial court, International did not lay a sufficient
    foundation to establish that the voicemail was admissible for a purpose other than to prove the
    truth of the matters asserted in the recording. We conclude that the trial court did not abuse its
    discretion by excluding the hearsay evidence.
    B. JUDGMENT NOTWITHSTANDING THE VERDICT
    At the conclusion of the second trial, the jury found that International tortiously interfered
    with the contract between Simply Storage and Lamar. International contends that the trial court
    erred by denying International’s motion for judgment notwithstanding the verdict because Simply
    Storage and Lamar failed to establish their claim of tortious interference with a contract.
    International argues that it could not interfere with defendants’ contract because Simply Storage
    had no duty to perform under the lease until Lamar constructed a billboard on the Simply Storage
    property, which never occurred. We disagree.
    We review de novo a trial court’s decision to grant or deny a motion for judgment
    notwithstanding the verdict, Hecht v Nat’l Heritage Academies, Inc, 
    499 Mich 586
     , 604; 
    886 NW2d 135
     (2016), viewing “the evidence and all legitimate inferences in the light most favorable
    to the nonmoving party.” Craig v Oakwood Hosp, 
    471 Mich 67
    , 77; 
    684 NW2d 296
     (2004). If the
    evidence viewed in this light fails to establish a claim as a matter of law, the moving party is
    entitled to judgment notwithstanding the verdict. Craig, 
    471 Mich at 77
    . However, “if reasonable
    jurors could have honestly reached different conclusions, the jury verdict must stand.” Hecht, 499
    Mich at 605-606.
    The elements of tortious interference with a contract or contractual relations are “(1) the
    existence of a contract, (2) breach of the contract, and (3) an unjustified instigation of the breach
    by the defendant,” resulting in damage to the aggrieved party to the contract. Knight Enterprises,
    Inc v RPF Oil Co, 
    299 Mich App 275
    , 280; 
    829 NW2d 345
     (2013). For purposes of tortious
    interference with a contract, the element of breach may be demonstrated by showing that “the
    defendant induced or otherwise caused nonperformance of the contract.” Hutton v Roberts, 
    182 Mich App 153
    , 161; 
    451 NW2d 536
     (1989); see also Wilkinson v Powe, 
    300 Mich 275
    , 285-286;
    
    1 NW2d 539
     (1942) (Tortious interference with a contract does not require actual breach of
    contract; the interference need only cause the termination of the contractual arrangement). With
    regard to the third element, the party alleging tortious interference with a contractual relationship
    -11-
    must allege the “intentional doing of a per se wrongful act or the doing of a lawful act with malice
    and unjustified in law” for the purpose of invading the contractual rights of another. Relative Time
    Films, LLC v Covenant House Michigan, ___ Mich App ___, ___; ___ NW2d ___ (2022) (Docket
    No. 359645); slip op at 3 (quotation marks and citation omitted). “If the defendant’s conduct was
    not wrongful per se, the plaintiff must demonstrate specific, affirmative acts that corroborate the
    unlawful purpose of the interference.” 
    Id.,
     quoting Knight Enterprises, 299 Mich App at 280.
    In this case, the parties do not dispute that Simply Storage and Lamar entered into a lease
    agreement. The lease provides that Simply Storage leased to Lamar “as much of the hereinafter
    described lease premises as may be necessary for the construction, repair and relocation of an
    outdoor advertising structure,” for a term of 20 years beginning on the date of the installation of
    the billboard. Lamar presented significant evidence that Oram’s actions directly interfered with
    the lease between Lamar and Simply Storage and caused Lamar to lose the benefit of its bargain
    for a period of years; the evidence showed that, but for International’s forged renewal letter,
    Simply Storage would have allowed Lamar onto its property to erect the billboard. International’s
    actions therefore caused Simply Storage to “breach” its lease with Lamar, in that the interference
    induced the nonperformance of the contract.
    International argues that the record established that Simply Storage did not breach any
    particular duty that it owed to Lamar because the 20-year lease period did not commence until
    Lamar installed a sign, and thus the agreement never began; that is, Simply Storage had no duty to
    perform because Lamar never installed a billboard, so the lease never commenced. International’s
    argument does not reflect a plausible interpretation of the parties’ agreement.
    Simply Storage and Lamar agreed that Lamar was leasing the property “necessary for the
    construction” of the billboard, and that the term of the lease would be 20 years beginning from the
    date of the installation of the billboard. The fact that the parties agreed that the 20-year term would
    begin upon the construction of the billboard did not mean that the agreement did not become a
    valid and binding agreement as of the date of execution. The latter provision protected Lamar’s
    right to use the property for its billboard for at least 20 years after the billboard’s construction; it
    did not preclude the agreement from coming into force. Once Simply Storage executed the lease
    with Lamar, it would have been a breach of the agreement for Simply Storage to refuse Lamar
    reasonable entry to construct its billboard.
    A reasonable jury considering the evidence could conclude that a contract existed between
    Simply Storage and Lamar, and that International’s forged lease renewal, ostensibly demonstrating
    an exclusive right to erect a billboard on the property, interfered with the contract between Simply
    Storage and Lamar to permit Lamar to erect a billboard on the same property, inducing
    nonperformance of the contract. Because a reasonable jury could find that International
    unjustifiably induced the nonperformance of the contract between Simply Storage and Lamar, the
    trial court did not err when it denied International’s motion for judgment notwithstanding the
    verdict. See Hecht, 499 Mich at 605-606.
    C. REMITTITUR
    International also contends that the trial court abused its discretion by denying its motion
    for remittitur. We review the trial court’s decision on a motion for remittitur for an abuse of
    -12-
    discretion, viewing the evidence in the light most favorable to the non-moving party. Pungo v
    Blue Harvest Farms, LLC, 
    326 Mich App 1
    , 30; 
    930 NW2d 393
     (2018).
    Remittitur is a reduction of the amount awarded by the jury’s verdict. See Anderson v
    Progressive Marathon Ins Co, 
    322 Mich App 76
    , 84; 
    910 NW2d 691
     (2017). When determining
    whether remittitur is warranted, the relevant inquiry is whether the jury’s award falls within the
    range of the evidence presented at trial. 
    Id.
     Remittitur is warranted when the jury’s verdict exceeds
    the highest amount that the evidence supports. Diamond v Witherspoon, 
    265 Mich App 673
    , 694;
    
    696 NW2d 770
     (2005). The trial court’s power to grant remittitur should be exercised with
    significant restraint. Anderson, 
    322 Mich App at 84
    . If the jury’s award falls reasonably within
    the range of the evidence and within the limits of what reasonable minds would deem just
    compensation, it should not be disturbed. 
    Id.
    At trial, Lamar presented evidence that it lost $687,244 in profits during the years it was
    prevented from installing its billboard on Simply Storage’s property. That amount was based on
    testimony that Lamar’s net monthly profits for the proposed billboard would have been $11,541
    for 61 months (the delay caused by International’s interference), reduced by $16,757 to account
    for reduced profits during the Covid shutdown. International argues that at trial, through cross-
    examination of Lamar’s witness, International demonstrated that Lamar did not lose its profits
    altogether, but instead lost only the time value of the profits (the earnings on those profits) that it
    would have made during that period but for International’s interference. International argues that
    Lamar still has the opportunity to earn profits for the entire 20-year lease because after the delay
    of 61 months caused by International’s interference, Lamar still had a 20-year lease, albeit pushed
    further into the future, and that Lamar did not establish that it would have taken advantage of the
    lease renewal options.
    International’s assessment of the evidence does not establish grounds for remittitur. Lamar
    presented evidence of the profits it would have obtained; International argued that Lamar lost only
    the earnings on those profits during that period. The jury evidently found Lamar’s evidence
    persuasive; indeed, International’s argument does not account for Lamar not having access to those
    earnings during the years in question. That is, International did not merely delay Lamar in earning
    the interest on the profits in question, it deprived Lamar of access to those profits during that period
    for whatever purpose Lamar may have wanted or needed those funds. Moreover, International did
    not establish that the opportunity to embark on the 20-year lease several years later is necessarily
    the same opportunity that existed had the lease commenced according to Lamar’s and Simply
    Storage’s agreement.
    In sum, International presented its theory to the jury but did not succeed in refuting Lamar’s
    evidence. As discussed, remittitur is warranted only when the jury’s verdict exceeds the highest
    amount that the evidence supports, Diamond, 
    265 Mich App at 694
    , and thus, the relevant inquiry
    is whether the jury’s award falls within the range of the evidence presented at trial. Anderson, 
    322 Mich App at 84
    . A reasonable jury could find that Lamar lost the benefit of profits during the
    period in question as a result of International’s tortious interference. Viewing the evidence in the
    light most favorable to Lamar, there was evidence to support the jury’s award of damages. The
    trial court therefore did not abuse its discretion by denying International’s motion for remittitur.
    D. ATTORNEY FEES
    -13-
    On cross-appeal, Lamar argues that the trial court erred by determining that Lamar was not
    entitled to its reasonable attorney fees as an element of damages. We review for an abuse of
    discretion a trial court’s award of attorney fees and costs; questions of law pertaining to an award
    of attorney fees are reviewed de novo. Highfield Beach at Lake Michigan v Sanderson, 
    331 Mich App 636
    , 655; 
    954 NW2d 231
     (2020).
    Michigan follows the “American Rule” that provides that the prevailing party in litigation
    is not entitled to recover its attorney fees as an element of damages unless expressly allowed by
    statute, court rule, common law exception, or by the parties’ contract. Skaates v Kayser, 
    333 Mich App 61
    , 84; 
    959 NW2d 33
     (2020). Exceptions to this general rule are narrowly construed. Brooks
    v Rose, 
    191 Mich App 565
    , 575; 
    478 NW2d 731
     (1992).
    Michigan law allows a plaintiff to recover its attorney fees as an element of damages under
    the common law “prior litigation” exception. Under the prior litigation exception, a party may
    recover attorney fees incurred in prior litigation with a third party where the present defendant by
    wrongful conduct caused the present plaintiff to prosecute or defend the prior action. Grace v
    Grace, 
    253 Mich App 357
    , 371; 
    655 NW2d 595
     (2002). In this case, Lamar seeks to recover
    attorney fees incurred to litigate this action and the prior action with International, and therefore
    this case does not fall within the traditional description of the prior litigation exception.
    Lamar contends, however, that the recovery of attorney fees “has been allowed in limited
    situations where a party has incurred legal expenses as a result of another party’s fraudulent or
    unlawful conduct.” Brooks, 191 Mich App at 575. A review of the decisions relied upon to support
    this statement in Brooks, however, indicates that those cases involved fees incurred in previous
    disputes caused by the defendant’s fraudulent conduct. See Oppenhuizen v Wennersten, 
    2 Mich App 288
    , 299; 
    139 NW2d 765
     (1966) (the measure of damages for a claim of fraud may include
    attorney fees or legal costs that the plaintiff incurred in a dispute with a third party that was caused
    by the defendant’s fraud); Tutton v Olsen & Ebann, 
    251 Mich 642
    , 650; 
    232 NW 399
     (1930)
    (holding that a person may recover as a form of damages his or her attorney fees incurred in
    defending himself or herself from an earlier prosecution in a claim for malicious prosecution
    brought against the defendant who caused the earlier prosecution); Bates v Kitchel, 
    166 Mich 695
    ,
    701-702; 
    132 NW 459
     (1911) (stating that the expenses the plaintiff incurred in procuring his
    discharge from imprisonment were recoverable in an action for false imprisonment because the
    expenses were a direct and necessary result of the unlawful imprisonment). The key consideration
    in each of the cases cited in Brooks was that the plaintiff established that the defendant’s actions
    caused the plaintiff to incur legal expenses in an earlier action involving a third party.
    This Court, however, has since relied on Brooks for the proposition that a trial court has
    authority to award attorney fees in an action in which the moving party incurred the fees as a result
    of another party’s fraudulent or unlawful conduct. See Ypsilanti Charter Twp v Kircher, 
    281 Mich App 251
    , 286-287; 
    761 NW2d 761
     (2008); see also Spectrum Health v Grahl, 
    270 Mich App 248
    ,
    253; 
    715 NW2d 357
     (2006). Although earlier caselaw limited an award of attorney fees to fees
    incurred in prior litigation, the Court in Ypsilanti did not limit the exception in that same way:
    Plaintiff was forced to incur substantial costs and attorney fees to prosecute this
    matter, which originally arose out of defendant’s illegal and egregious discharge of
    raw sewage into a public storm drain. The matter then continued when defendant
    -14-
    flaunted the circuit court’s orders requiring him to clean up and remediate the
    contaminated areas on his property, and when he refused to bring his buildings into
    compliance with applicable local ordinances. Plaintiff incurred substantial legal
    expenses as a result of defendant’s unlawful conduct. We cannot conclude that the
    circuit court’s award of attorney fees for plaintiff fell outside the range of
    reasonable and principled outcomes. [Ypsilanti Charter Twp, 
    281 Mich App at 286-287
     (citations omitted).]
    Under the rule as articulated in Ypsilanti, Lamar could seek attorney fees associated with
    prosecuting its claim against International on the basis that International engaged in fraudulent or
    unlawful conduct that forced Lamar to prosecute its claim. See id. at 286-287. Accordingly, the
    trial court necessarily abused its discretion when it denied Lamar’s motion for attorney fees on the
    ground that there was no exception to the American Rule premised on fraud or unlawful conduct.
    See Ronnisch Constr Group, 
    499 Mich at 552
    . Consequently, we vacate the trial court’s order
    denying Lamar’s motion for attorney fees and remand for reconsideration of that motion. The trial
    court is directed on remand to reconsider Lamar’s request for attorney fees under the rule
    established in Ypsilanti and as stated in Spectrum Health and cases cited therein. See Brooks, 191
    Mich App at 575.
    E. COSTS
    International contends that the trial court abused its discretion by awarding costs to Lamar
    in excess of costs approved by the trial court’s clerk. We review a trial court’s decision to award
    costs for an abuse of discretion, Pirgu v United Servs Auto Ass’n, 
    499 Mich 269
    , 274; 
    884 NW2d 257
     (2016), and review de novo the application of the relevant statutes and court rules, Franks v
    Franks, 
    330 Mich App 69
    , 86; 
    944 NW2d 388
     (2019). Whether a particular expense is taxable as
    a cost is a question of law that we review de novo. VanElslander v Thomas Sebold & Assocs, Inc,
    
    297 Mich App 204
    , 211; 
    823 NW2d 843
     (2012).
    MCR 2.625 permits the prevailing party to recover the costs incurred during litigation.
    MCR 2.625(A)(1) provides that costs “will be allowed to the prevailing party in an action, unless
    prohibited by statute or by these rules or unless the court directs otherwise, for reasons stated in
    writing and filed in the action.” However, because the power to tax costs is purely statutory, the
    prevailing party cannot recover costs absent statutory authority. Estate of Carlsen v Southwestern
    Mich Emergency Servs, PC, 
    338 Mich App 678
    , 701; 
    980 NW2d 785
     (2021). What is a “cost”
    within the meaning of MCR 2.625(A) is ascertained by reference to the statutory provisions
    identifying what items are taxable as costs. 
    Id. at 702
    .
    The Revised Judicature Act, MCL 600.101 et seq., provides that the following items
    generally may be taxed as costs:
    (1) Any of the fees of officers, witnesses, or other persons mentioned in this
    chapter or in [MCL 600.2501 et seq.], unless a contrary intention is stated.
    (2) Matters specially made taxable elsewhere in the statutes or rules.
    (3) The legal fees for any newspaper publication required by law.
    -15-
    (4) The reasonable expense of printing any required brief and appendix in
    the supreme court, including any brief on motion for leave to appeal.
    (5) The reasonable costs of any bond required by law, including any stay of
    proceeding or appeal bond.
    (6) Any attorney fees authorized by statute or by court rule.              [MCL
    600.2405.]
    MCR 2.625(F) provides the procedure for taxing costs, directing the party entitled to costs
    to submit a bill of costs and supporting materials, and directing the trial court clerk to approve the
    appropriate costs. The action of the clerk is then reviewable by the trial court upon motion by an
    affected party. MCR 2.625(F)(4). In this case, after prevailing in the second jury trial Lamar
    submitted a bill of costs to the trial court clerk requesting $40,237.86 in taxable costs, and specified
    the requested amounts as follows:
    Filing fee, MCL 600.2529(2):                                            $187.98
    Motion fees, MCL 600.2529(2):                                           $834.37
    Service of process fee, MCL 600.2555, MCL 600.2559(1)(a):               $50.00
    Transcript fees, MCL 600.2543(2):                                       $2,021.62
    Depa’s travel costs, MCL 600.2552(1):                                   $960.50
    Expert witness fees, MCL 600.2163:                                       $25,045.39
    Appeal Bond, MCL 600.2505(5):                                           $11,138.00
    International objected to the bill of costs, and the trial court clerk approved costs in the
    amount of $660.35. Lamar moved for review of the clerk’s action. The trial court thereafter
    directed the trial court clerk to issue an additional taxation of costs to Lamar in the amount of
    $39,165.51, which included the amounts Lamar sought for transcript fees, Depa’s travel, expert
    witness fees, and the appeal bond fee. International challenges on appeal the trial court’s taxation
    of those costs.
    1. TRANSCRIPTS
    International contends that the trial court abused its discretion by permitting Lamar to tax
    the cost of transcripts from the first trial because those transcripts were prepared in anticipation of
    appeal to this Court and not for a purpose authorized by MCL 600.2543(2). That statutory section
    provides:
    Only if the transcript is desired for the purpose of moving for a new trial or
    preparing a record for appeal shall the amount of reporters’ or recorders’ fees paid
    for the transcript be recovered as a part of the taxable costs of the prevailing party
    in the motion, in the court of appeals or the supreme court. [MCL 600.2543(2).]
    -16-
    MCL 600.2543(2) does not authorize the trial court to tax the cost of transcripts prepared
    for an appeal, which is a taxable cost on appeal. Home-Owners Ins Co v Andriacchi, 
    320 Mich App 52
    , 74; 
    903 NW2d 197
     (2017). However, if a transcript was prepared for the purpose of
    moving for a new trial, it may be “recovered as a part of the taxable costs of the prevailing party
    in the motion . . . .” MCL 600.2543(2). In this case, the transcript from the first trial was not
    prepared for the purpose of Lamar moving for a new trial. Although Lamar indicates that it used
    the transcript to seek a new trial after learning of International’s fraud, the record indicates that
    Lamar initially obtained the transcript for the purpose of preparing for a motion for judgment
    notwithstanding the verdict after the first trial, on which it did not prevail, and also for its appeal
    in this Court. Accordingly, the trial court erred when it allowed Lamar to tax the cost of preparing
    the transcript from the first trial. We therefore vacate the trial court’s taxation of costs to the extent
    that it included this expense.
    2. TRAVEL EXPENSES
    International contends that the trial court erred in taxing costs for Depa’s travel expenses.
    A witness may be compensated for his or her travel expenses “in coming to the place of attendance
    and returning from the place of attendance” for trial, but only as provided under MCL 600.2552(5).
    See MCL 600.2552(1). Under MCL 600.2552(5), the witness may be reimbursed a “per-mile rate”
    equal to the rate set by the department of management and budget for state employees. See MCL
    600.2552(5). Mileage must be “estimated from the residence of the witness, if his or her residence
    is within this state, or from the boundary line of this state that the witness passed in coming into
    this state, if his or her residence is out of this state.” MCL 600.2552(1).
    In this case, it is undisputed that Depa flew to Michigan to attend the trial. MCL 600.2552
    does not limit reimbursement to any particular mode of travel. The trial court, however, allowed
    Lamar to tax the full cost of Depa’s airfare ($960.50) without applying the estimated miles to the
    rate of reimbursement provided under MCL 600.2552(5). Accordingly, we vacate the trial court’s
    order to the extent that it included this expense and remand to the trial court for amendment of the
    order to reflect the cost of Depa’s travel expense calculated under MCL 600.2552.
    3. EXPERT WITNESS FEES
    International contends that the trial court erred by permitting Lamar to tax the fees of its
    expert witness, John Stott Matthews, who testified regarding his inspection of International’s
    computers. We review for an abuse of discretion the trial court’s determination of the amount of
    expert witness fees taxed as costs. Estate of Carlsen, 338 Mich App at 701.
    MCL 600.2164 governs the award of costs for expert witness fees, and states in relevant
    part:
    (1) No expert witness shall be paid, or receive as compensation in any given case
    for his services as such, a sum in excess of the ordinary witness fees provided by
    law, unless the court before whom such witness is to appear, or has appeared,
    awards a larger sum, which sum may be taxed as part of the taxable costs in the
    case. . . .
    -17-
    ***
    (3) The provisions of this section shall not be applicable to witnesses testifying to
    the established facts, or deduction of science, nor to any other specific facts, but
    only to witnesses testifying to matters of opinion.
    International argues that the trial court erred when it allowed Lamar to tax Matthews’
    expert witness fees because Matthews testified to facts and not as an expert witness. Under MCL
    600.2164(3), an expert must testify as to “matters of opinion” and not to “established facts” to be
    entitled to compensation in excess of that for an ordinary witness. See MCL 600.2164(3); see also
    Guerrero v Smith, 
    280 Mich App 647
    , 672; 
    761 NW2d 723
     (2008). Contrary to International’s
    argument on appeal, Matthews testimony encompassed more than facts. Matthews testified about
    his investigation of the computer devices at issue and informed the court about the observations
    and reports that he made in his investigation. The trial court qualified him as an expert in computer
    forensics, and he offered opinion testimony about his observations throughout the hearing. The
    trial court therefore had authority to grant Lamar’s request to tax Matthews’ fees as a cost.
    International argues, however, that the trial court erred by allowing Lamar to tax Matthews’
    fees for time during which Matthews charged for advising and educating Lamar’s lawyers and for
    engaging in work other than testifying or preparing to testify. A trial court may only tax those fees
    related to testifying as an expert witness or preparing to testify as an expert witness; the court may
    not tax as a cost those fees arising from “conferences with counsel for purposes such as educating
    counsel about expert appraisals, strategy sessions, and critical assessment of the opposing party’s
    position.” See Detroit v Lufran Co, 
    159 Mich App 62
    , 67; 
    406 NW2d 235
     (1987). Additionally,
    the trial court may assess the reasonableness of an expert’s fees and adjust them accordingly. See
    Guerrero, 
    280 Mich App at 675-677
    .
    In its motion to tax costs, Lamar submitted documentation that showed that Matthews’
    charges included time and expenses arguably not compensable as costs, such as hardware that he
    purchased as part of his investigation and telephone conversations apparently for the purpose of
    educating counsel. See Lufran Co, 
    159 Mich App at 67
    . Moreover, the record does not
    demonstrate that the trial court evaluated the reasonableness of Matthews’ fees. See Guerrero,
    
    280 Mich App at 675-677
    . Accordingly, we vacate the trial court’s order to the extent that it taxed
    costs for Matthews’ fees and remand to the trial court to permit it to assess the requested fees.
    4. APPEAL BOND
    International also argues that the trial court had no authority to allow Lamar to tax its
    expenses for an appeal bond because Lamar did not identify a correct basis for taxing that cost in
    its request to the trial court’s clerk. A trial court may tax the “reasonable costs of any bond required
    by law, including any stay of proceeding or appeal bond.” MCL 600.2405(5). The expenses for
    a letter of credit obtained in lieu of a bond also may be taxable as a cost under this statute.
    VanElslander, 297 Mich App at 222. An appeal bond is a form of security designed to protect an
    appellee’s rights during the pendency of an appeal. See Federal Nat’l Mortgage Ass’n v Wingate,
    
    404 Mich 661
    , 678; 
    273 NW2d 456
     (1979). As such, it is normally incurred in the trial court as a
    condition precedent to an appeal. See MCR 2.621(H)(1). Because the trial court has the authority
    to tax costs incurred in its court, see MCL 600.2455, it had the authority to tax the expenses that
    -18-
    Lamar incurred in connection with its letter of credit as a cost under MCL 600.2405(5). See
    VanElslander, 297 Mich App at 222.
    International argues that under MCR 7.219(F)(2), only the Court of Appeals has authority
    to tax the costs of an appeal bond. MCR 7.219(F) provides that a “prevailing party may tax only
    the reasonable costs incurred in the Court of Appeals,” which includes expenses for any “appeal
    or stay bond.” MCR 7.219(F)(2). That is, when an appeal or stay bond is “incurred” in the Court
    of Appeals, the prevailing party on appeal may tax the costs associated with that bond. The
    Supreme Court similarly provided that the prevailing party in the Supreme Court could tax the
    costs associated with his or her appeal bond. See MCR 7.319(A). The court rules are consistent
    with the general proposition that a party is only entitled to tax the costs incurred in a particular
    court when that party prevails in that court. The trial court did not err when it allowed Lamar to
    tax the expenses associated with its letter of credit in lieu of appeal bond that was incurred in that
    court.
    We affirm the trial court’s order entering judgment for Simply Storage and Lamar, vacate
    the trial court’s order denying Lamar’s request for attorney fees, vacate in part the trial court’s
    order granting costs, and remand to the trial court for further proceedings consistent with this
    opinion. We do not retain jurisdiction. As the prevailing parties in Docket No. 359082, Lamar
    and Simply Storage may tax the costs associated with that appeal. See MCR 7.219(A). Because
    none of the parties prevailed in full in Docket No. 359811, no party may tax costs incurred in that
    appeal. See MCR 7.219(A).
    /s/ Michael F. Gadola
    /s/ Stephen L. Borrello
    /s/ Noah P. Hood
    -19-
    

Document Info

Docket Number: 20231207

Filed Date: 12/7/2023

Precedential Status: Non-Precedential

Modified Date: 12/8/2023