Memorandum of Law in Opposition to Plaintiff’s Motion for Releif Pursuant to Mcr 2.612

7/24/2019 Memorandum of Law in Opposition to Plaintiffs Motion for Releif Pursuant to Mcr 2.612

1/17

STATE OF MICHIGAN

IN THE CIRCUIT COURT FOR THE COUNTY OF OAKLAND

JEFFREY S. NEWTON, an individual, and Case No. 97-54305 C!R"C#$R% $. NEWTON, an individual, #on. %enise &an'(o)d-*o))is

+laini((s,

vs.

T#O*$S +$TR"C FREY%&, an individual, andFREY%& $SSOC"$TES,

%e(endans.

//////////////////////////////////////////////////////////////////////////////JEFFREY S. NEWTON +415372 T#O*$S +$TR"C FREY%&R"C#$R% $. NEWTON %e(endan,In Pro Per+laini((s,In Pro Per 00 $non lvd., 1143544 #e)6ia'e $ve Cosa *esa, C$ 98alle 8illa'e, C$ 407 3102 9-5442 94-1400//////////////////////////////////////////////////////////////////////////////

DEFENDANT THOMAS PATRICK FREYDLS MEMORANDUM OF LAW IN

OPPOSITION TO PLAINTIFFS MOTION FOR RELIEF PURSUANT TO MCR 2.612

1


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INTRODUCTION

NOW CO*ES %e(endan T:o6as +a)i;< F)edl, individuall, and as (o)6e) =)o=)ieo)

o( F)edl $sso;iaes, a dissolved *i;:i'an $ssu6ed Na6e :e)eina(e) >FREY%&?2 and in

su==o) o( :is O==osiion o :e =endin' *oion (iled @ +laini((, Je(()e S NeAon :e)eina(e)

>NEWTON?2, =u)suan o *CR .1 (o) Relie( ()o6 %e;e6@e) 1s011 O)de) ')anin'

F)edlBs *oion o 8a;ae O)de) O( Consen Jud'6en ReneAal (iles, T:is Cou)Bs ;onside)aion

(olloAin' *e6o)andu6 o( &aA.STATEMENT OF RELEVANT FACTUAL AND PROCEDURAL BACKGROUND

On $u'us 11, 1999, :is Cou) ene)ed a Revised Final Jud'6en Consen in (avo) o(

NeAon and :is @)o:e), in :e a6oun o( 70,000.00 :e)eina(e) >$u'us 11, 1999 Jud'6en?2.

Dnde) *i;:i'an laA, unless =)o=e)l )eneAed, :e $u'us 11, 1999 Jud'6en e=i)ed en 102

ea)s a(e) en). *C&$ 00.50932G

12 A per!" #$%% "!& 'r(") !r *$("&$(" $" $+&(!" &! e",!r+ea non;on)a;ual6one o@li'aion unless,H :e =e)son ;o66en;es :e a;ion Ai:in :ea==li;a@le =e)iod o( i6e =)es;)i@ed @ :is se;ion.

IIIII32 E;e= as =)ovided in su@se;ion 42, e per(!- !, %(*(&$&(!" ( 1 /e$r ,!r

$" $+&(!" ,!0"-e- 0p!" $ 0-)*e"& !r -e+ree re"-ere- (" $ +!0r& !, re+!r-!, ( &$&e !r (" $ +!0r& !, re+!r- !, e U"(&e- S&$&e !r !, $"!er &$&e !,

e U"(&e- S&$&e ,r!* e &(*e !, e re"-(&(!" !, e 0-)*e"& !r -e+ree.

E6@oldin' Su==lied2

T:e ee;uion o( :e ud'6en @ :e ;ou) sauo)il ;onsiues :e dae o( is en) (o)

=u)=oses o( :e ;o66en;e6en o( :e )unnin' o( :e Saue o( &i6iaions. *CR .02

>T:e dae o( si'nin' an o)de) o) ud'6en is :e dae o( en)?2, )e'a)dless o( A:en i Aas (iled

Ai: :e Cle)< o( :e Cou) SeeGMoriarity v Shields, 0 *i;:. $==. 5, 5710042 >KT:e

RuleL s=e;i(ies :a ud'6ens and o)de)s a)e ;onside)ed Mene)edB :e dae :e a)e si'ned @ :e

Cou), A:e:e) o) no :e a)e also (iled Ai: :e ;le)< o( :e ;ou) on :a dae.?2 E6=:asis

Su==lied2. T:us, :e Saue o( &i6iaions on :e $u'us 11, 1999 Jud'6en @e'an o )un on :e


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dae o( is ee;uion, $u'us 11, 1999, and e=i)ed a 6idni':, $u'us 11, 009. "6=o)anl,

onl a Jud'e ;an ene) a *i;:i'an ud'6en, even a )eneAal ud'6en *CR .0$212.+)io) o :e e=i)aion o( :e en 102 ea) saue o( li6iaions o A:i;: :e $u'us 11,

1999 Jud'6en Aas su@e;, NEWTON (iled a Su66ons and Co6=lain. NEWTON

a((i)6aivel esi(ied :e (iled a Su66ons and Co6=lain o )eneA :is Jud'6en 911

T)ans;)i=, =. 10, ln. 52,. T:e s=e;i(i; =leadin' :e (iled Aas eniled, >+laini((sB Co6=lain (o)

ReneAal O( $u'us 13, 1999 si;2 Revised Final Jud'6en Consen +u)suan o *C&

00.509 Wi: Se)vi;e O( :e NeA Su66ons and Co6=lain D=on a)en 8. F)edl?, (iled a

3G3 +.*. on :e las da o( :e en: 102 ea) ()o6 :e dae o( en) o( :e $u'us 11, 1999

Jud'6en :e)eina(e) >$u'us 11, 009 ReneAal $;ion?2. T:e Su66ons a;;o6=anin' :e

$u'us 11, 009 ReneAal $;ion e=i)ed @ is e)6s on Nove6@e) 10, 009.D=on =)o=e) s:oAin', :e *i;:i'an Cou) Rules e=)essl =)ovides :a a =laini((,

Ai:in :e nine-one 912 das o( :e e)6 o( a Su66ons, 6a see< an o)de) ()o6 :e assi'ned

ud'e (o) :e issuan;e o( a se;ond su66ons (o) a de(inie =e)iod, no e;eedin' one 12 ea)

()o6 :e dae :e ;o6=lain is (iled. *CR .10%2 >E=i)aion. $ su66ons e=i)es 91 das

a(e) :e dae :e ;o6=lain is (iled. #oAeve), Ai:in :ose 91 das, on a s:oAin' o( due

dili'en;e @ :e =laini(( in ae6=in' o se)ve :e o)i'inal su66ons, :e ud'e o A:o6 :e

a;ion is assi'ned 6a o)de) a se;ond su66ons o issue (o) a de(inie =e)iod no e;eedin' 1

ea) ()o6 :e dae :e ;o6=lain is (iledH.?2 NEWTON neve) a==lied o :e Cou) unde) *CR

.10%2 (o) an o)de) ')anin' :e issuan;e o( a se;ond Su66ons, and alloAed :e o)i'inal

Su66ons o la=se.T:e (ilin' o( :e Su66ons and Co6=lain in :e $u'us 11, 009 ReneAal $;ion did no

oll :e )unnin' o( :e saue o( li6iaions on :e $u'us 11, 1999 Jud'6en. "n *i;:i'an,

*C&$ 00.55, e;lusivel 'ove)ns ollin', sain'G >T:e saues o( li6iaions o) )e=ose a)e

olled in an o( :e (olloAin' ;i);u6san;esG

3


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a2 $ :e i6e :e ;o6=lain is (iled, i( a ;o= o( :e su66ons and ;o6=lain a)ese)ved on :e de(endan Ai:in :e i6e se (o): in :e su=)e6e ;ou) )ules.

@2 $ :e i6e u)isdi;ion ove) :e de(endan is o:e)Aise a;ui)ed.E6=:asis Su==lied2

Fu):e), in o)de) o (ul(ill FREY%&Bs )i': o( due =)o;ess, i Aas 6andao) :a :e @e

se)ved Ai: a ;o= o( :e Su66ons and Co6=lain (iled in :e $u'us 11, 009 ReneAal $;ion.

*CR .105J212 >+)ovisions (o) se)vi;e o( =)o;ess ;onained in :ese )ules a)e inended o

sais( :e due =)o;ess )eui)e6en :a a de(endan @e in(o)6ed o( an a;ion @ :e @es 6eans

availa@le unde) :e ;i);u6san;esH.?2SeeGMcGraw v. Parsons, 14 *i;:. $==. 1952 Jud'6en %e@o) se)ved Ai: =)o;ess o(

ReneAal Co6=lain2PEwing v. Bolden, 194 *i;:. $==. 95 1992 Jud'6en %e@o) eniled o

se)vi;e o( =)o;ess o( ReneAal Co6=lain2, :oldin'GWe ,("- $& e Ge"eee C(r+0(& C!0r& #$- +!"&("0(") per!"$% 0r(-(+&(!" !3er

-e,e"-$"& (" ( +$e MCL 6.4547 MSA 28A.454 $"- $& p%$("&(,, #$- $

*e$" ,!r er3(+e !, pr!+e !" -e,e"-$"& 0,,(+(e"& &! 'r(") e $+&(!" &! +!%%e+& e

0-)*e"&. C!"e90e"&%/ MCL 6.454 MSA 28A.454 :$ ("$pp%(+$'%e &! &!%% e

%(*(&$&(!" per(!- (" ( +$e.Id. a 101-10. E6@oldin' Su==lied2

$;;o)dG Van Reken v. Darden, Nee ! "eitsch, 59 *i;:. $==. 454 0032 Jud'6en %e@o)

eniled o se)vi;e o( =)o;ess o( ReneAal Co6=lain2." is si=ulaed :a FREY%&, a all i6e )elevan, Aas a )esiden o( :e Ci o( NeA=o)

ea;:, Cali(o)nia Se=e6@e) , 011 T)ans;)i=, =. 4, ln. 13-152. T:e)e(o)e, o =e)(e; se)vi;e

on FREY%& o( :e $u'us 11, 009 ReneAal $;ion, NEWTON ;ould :ave =e)sonall se)ved

:is Su66ons and Co6=lain u=on FREY%&, o) se)ved :i6 @GSe"-(") $ 0**!" $"- $ +!p/ !, e +!*p%$("& '/ re)(&ere- !r +er&(,(e- *$(%

re&0r" re+e(p& re90e&e- $"- -e%(3er/ re&r(+&e- &! e $--reee. Ser3(+e ( *$-e

:#e" e -e,e"-$"& $+;"!:%e-)e re+e(p& !, e *$(%. A +!p/ !, e re&0r" re+e(p&

()"e- '/ e -e,e"-$"& *0& 'e $&&$+#e- &! pr!!, #!:(") er3(+e 0"-er 0'r0%e


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NEWTON a;


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Cali(o)nia A:en FREY%& Aas =:si;all in NeA Yo)< Ci, and o a lo;aion A:e)e :e Aould

no :ave )e;eived i.

F)o6 $u'us 11, 009 :)ou': Nove6@e) 10, 009, :e =e)iod o( is Su66onsBs

via@ili, NEWTON 6ade no ae6= o ;o6=l Ai: :e *i;:i'an Cou) Rule 'ove)nin' se)vi;e

o( =)o;ess on FREY%& as an ou-o(-sae )esiden. "n (a;, NEWTON esi(ied :a ()o6 $u'us

11, 009, :e dae o( :e (ilin' o( :is ReneAal $;ion, unil Fe@)ua) 1, 011, :e oo< no o:e)

a;ion unde) :e $u'us 11, 009 ;o6=lain 911 T)ans;)i=, =. 75, ln. 2 >" didnB (ile an

o:e) =leadin's, no.?2 "n (a;, du)in' :e =e)iod o( $u'us 11, 009 o Fe@)ua) 1, 011,

NEWTON esi(ied :e did no )e;all A:e:e) :e :ad ;:e;


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ased on :e (o)e'oin', @e;ause FREY%& Aas neve) se)ved Ai: :e $u'us 11, 009

ReneAal $;ion, @ o=e)aion o( *C&$ 00.55, :e saue o( li6iaions on :e $u'us 11,

1999 Jud'6en )an no lae) :an Nove6@e) 11, 009, A:en is Su66ons :ad e=i)ed.

$2 "ndividuals. +)o;ess 6a @e se)ved on a )esiden o) non)esiden individual @12 delive)in' a su66ons and a ;o= o( :e ;o6=lain o :e de(endan=e)sonallP o)2 sendin' a su66ons and a ;o= o( :e ;o6=lain @ )e'ise)ed o) ;e)i(ied6ail, )eu)n )e;ei= )euesed, and delive) )es)i;ed o :e add)essee. Se)vi;eis 6ade A:en :e de(endan a;OR%ER R$NT"N *OT"ON TO 8$C$TE FERD$RY 1, 011

7


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RENEW$& OR%ER,? :e)eina(e) >%e;e6@e) 1, 011 8a;ain' O)de)?2, ;ae'o)i;all )uled in

(avo) o( F)edl, and a'ains NeAon , :oldin'

T#( *$&&er :$ 'e,!re e C!0r& !" De,e"-$"& M!&(!". T#e C!0r&

+!"-0+&e- $" e3(-e"&($r/ #e$r(") $"- &!!; e *$&&er 0"-er $-3(e*e"&.

T#e C!0r& #$3(") re3(e:e- e $pp%(+$'%e %$: $"- 'e(") ,0%%/ $-3(e- (" e

pre*(e ,("- $& 'e+$0e De,e"-$"& :$ "!& er3e- :( e S0**!" $"-

C!*p%$("& (0e- (" e A0)0& 11 2> Re"e:$% A+&(!" '/ !per$&(!" !, %$:

e &$&0&e !, %(*(&$&(!" e?p(re- !" e A0)0& 11 1>>> @0-)*e"& :#e" e

S0**!" e?p(re- !" N!3e*'er 11 2>. P%$("&(,, #$ ,$(%e- &! (-e"&(,/ $"/

%e)$% e!r/ :#(+# :!0%- per*(& e re"e:$% !, e @0-)*e"& 0"-er e

+(r+0*&$"+e pree"&e- (" ( +$e.

A++!r-(")%/

IT IS HEREBY ORDERED $& De,e"-$"& M!&(!" &! V$+$&e e Fe'r0$r/

16 211 Re"e:$% Or-er ( GRANTED. E6@oldin' Su==lied2

E:i@i G %e;e6@e) 1:, 011 8a;ain' O)de) Oa%"S*"SSE%?, @e;ause :e :ad (ailed o =e)(e; i in a i6el 6anne).

E:i@iG- O)de) o( *i;:i'an Cou) o( $==eals2. T:e)ea(e), NeAon a'ain ae6=ed o a;:ieve


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a==ellae )evieA o( :e %e;e6@e) 1, 011 8a;ain' O)de) @ a==lin', on *a);: 5, 013, o

:e *i;:i'an Su=)e6e Cou) (o) &eave o $==eal. E:i@i G- $==li;aion (o) &eave o $==eal

*i;:i'an Su=)e6e Cou)2 "n :is $==li;aion, NeAon ;e)i(ied :a an issue o @e )esolved Aas

>%id :e T)ial Cou) e))o) A:en i )uled :a :e Saue o( &i6iaions (o) :e ReneAal o( :e

1999 Consen Jud'6en E=i)ed "d. a =.i. #e a((i)6aivel saesG Fre/-% $%! +!"&e&e- e

er3(+e !, e $(- *!&(!" $& e E3(-e"&($% He$r(") e3e" !0)# #e #$- %(&e- e 0&(%(e-

er3(+e $--re $ e !,,(+($% er3(+e $--re ,!r e Mer(")!%! +$e. M$"#$&&$" L$:

F(r* I-. $& p.8. &iH 'e+$0e :e $re "!& per0$-e- $&

e 90e&(!" pree"&e- #!0%- 'e re3(e:e- '/ ( C!0r&. E:i@i 9G *i;:i'an Su=)e6e

Cou) O)de), June 5:, 0132, :e)e@ e:ausin' all o( NeAonBs a==ellae )i':s.

NeAonBs +e)=euaes #is F)audulen #oa +os %e;e6@e) 1:, 011

$(e) :e en) o( %e;e6@e) 1

s

, 011 8a;ain' O)de) sein' aside :e F)audulen

Fe@)ua) 1, 011 E +a)e ReneAal O)de), and @ein' (ull aAa)e :a is dee)6inaion nulli(ied

an )i':s unde) :e $u'us 11, 1999 Revised Consen Jud'6en, on *a 3, 01, NeAon,

neve):eless, (iled a *oion o "ne)vene in :e ;ase o( #reydl v. Meringolo, 09 Civ. 719

9


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NYS%2, =endin' in :e Dnied Saes %is)i; Cou) (o) :e Sou:e)n %is)i; o( NeA Yo)< in

A:i;: F)edl Aas a =)o se =laini((. "n :is *oion o "ne)vene, NeAon alle'ed :a :e :ad an

ine)es in :is dive)si a;ion @ vi)ue o( :is saus as a ud'6en ;)edio) o( F)edl unde) :e

ein'uis:ed $u'us 11, 1999 Revised Consen Jud'6en. #oAeve), a(e) )e;eivin' F)edlBs

O==osiion, Jud'e Oe


11/17

T:e *i;:i'an su@sanive laA saes in =e)inen =a)G

12 A per!" #$%% "!& 'r(") !r *$("&$(" $" $+&(!" &! e",!r+e anon;on)a;ual 6one o@li'aion unless,H :e =e)son ;o66en;es :ea;ion Ai:in :e a==li;a@le =e)iod o( i6e =)es;)i@ed @ :is se;ion.

IIIII32 E;e= as =)ovided in su@se;ion 42, e per(!- !, %(*(&$&(!" ( 1/e$r ,!r $" $+&(!" ,!0"-e- 0p!" $ 0-)*e"& !r -e+ree re"-ere- (" $

+!0r& !, re+!r- !, ( &$&e !r (" $ +!0r& !, re+!r- !, e U"(&e-

S&$&e !r !, $"!er &$&e !, e U"(&e- S&$&e ,r!* e &(*e !, e

re"-(&(!" !, e 0-)*e"& !r -e+ree. E6@oldin' Su==lied2

T:us, :e 'ove)nin' saue =)ovides :)ee enes. Fi)s, :a a =a) :as no sandin' o

;o66en;e o) 6ainain an a;ion on :e ud'6en a(e) is saue :as e=i)ed. Se;ondl, u=on is

e)6inaion, :e ud'6en @e;o6es unen(o);ea@le, A:i;:, o( ;ou)se, is is onl le'al essen;e,

$nd, :i)d, no Cou) :as :e udi;ial au:o)i o )eneA i a(e) i :as @een )ende)ed ein'uis:ed.

Fo) ea6=le, in %onsolidated Rail %or&. v. 'ashinsky, 70 F. 3)d591,59 :Ci) 1992, :e Si:

Ci);ui Cou) o( $==eal :eld :a :e e=i)aion o( :e Saue o( &i6iaions on a *i;:i'an

Jud'6en )ende)ed i 6oo, and ;on;luded :a i :ad no (u):e) en(o);ea@ili. >We (ind :a :e

;oe);ive as=e; o( :e ;one6= o)de) is noA 6ooed @e;ause :e unde)lin' ud'6en :as

e=i)ed unde) *i;:i'anBs sau)e o( li6iaions on ud'6ensIIIII ;o6=lian;e Ai: =os-

ud'6en dis;ove)H Aas noA 6oo @e;ause :e unde)lin' ud'6en, :e ;olle;ion o( A:i;: i

sou': o (a;iliae, :ad e=i)ed unde) *i;:i'anBs en-ea) saue o( li6iaion (o) :e

en(o);e6en o( ud'6ens on *a);: 19, 199.?2. $;;o)din'l, :e Cali(o)nia ud'6en is, @

o=e)aion o( do;)ine, li


12/17

"n :is +)o;eedin', NeAon see


13/17

sauo) se)vi;e on F)edl in :is (ailu)e o )es=ond o :is Cou)Bs O)de) o S:oA Cause

)e'a)din' su;: (ailu)e. T:e Cou) Aill (u):e) )e;all :a i, no :e Cou) Cle):as a


14/17

Jud'6en ReneAal $;ion :e se)vi;e add)ess o( 0434, &on' ea;:, Cali(o)nia 9010H Aas

:e add)ess :a add)ess F)edl ;oninuousl used in :e =)o;eedin' o( :is ;ase, ;o66en;in' in

1997H a==li;aion (o) leave o a==eal, *i;:i'an Su=)e6e Cou) *a);: 5, 013 =a'e 1 as

sied a@ove :e *i;:i'an Su=)e6e Cou) denied NeAonBs a==li;aion >H Ae a)e no =e)suaded

:a :e uesion =)esened s:all no @e )evieAed @ :is ;ou).?, NeAon v F)edl Su=)e6e

Cou) o( *i;:i'an o)de) daed June 5, 013, e:i@i ." is NeAonBs :eo) :)ou':ou :is =)o;eedin' :a :e 6e)e 6ailin' o( a Su66ons and

Co6=lain Ai:ou an eviden;e in :e )e;o)d :a i Aas )e;eived ;onsiues valid se)vi;e o(

=)o;ess unde) *i;:i'an laA :e si6=l i'no)es, and u)'es :is ;ou) o i'no)e :e sied

;onsiuional sa(e 'ua)ds esa@lis: @ :e *i;:i'an Cou) Rules :a add)ess se)vi;e o( =)o;ess

@ 6ailR0%e 2.14 Pr!+e7 M$""er !, Ser3(+e

$2 "ndividuals. +)o;ess 6a @e se)ved on a )esiden o) non)esiden individual @12 delive)in' a su66ons and a ;o= o( :e ;o6=lain o :e de(endan =e)sonallP o)2 sendin' a su66ons and a ;o= o( :e ;o6=lain @ )e'ise)ed o) ;e)i(ied 6ail, )eu)n )e;ei=)euesed, and delive) )es)i;ed o :e add)essee. Se)vi;e is 6ade A:en :e de(endana;


15/17

e=e;s :is Cou) o i'no)e :e ;ondiions i6=osed u=on se)vi;e @ 6ail @ :e saue.

S=e;i(i;all, :e as


16/17

NeAon, ;o66en;ed an $;ion a'ains FREY%& in :e Su=e)io) Cou) (o) :e Coun o(

O)an'e, Sae o( Cali(o)nia, o do6esi;ae :is Cou)Bs Fe@)ua) 1, 011 ReneAal Jud'6en

Case No. 30-011-0049312, A:i;: $;ion is =)esenl =endin' :e)eina(e) :e >Fi)s

Cali(o)nia Case?2. Su@seuenl, :e sa6e +laini((s (iled ano:e) laAsui in :e Cali(o)nia

O)an'e Coun Su=e)io) Cou) a'ains FREY%& on June , 011 Case No. 30-011-

0045972, A:i;: $;ion, li


17/17

va;aed Ai:ou =)eudi;e. $le)naivel, i( :e Cou) )ules in :is (avo) Ai: )es=e; o :e o:e)

ousandin' issues ()a6ed @ :is *oion unde) *CR .1, :e Aould li

Documents

Memorandum of Law in Opposition to Plaintiff’s Motion for Releif Pursuant to Mcr 2.612