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QUICKEN LOANS INC V GREAT HORIZONS INC
State: Michigan
Court: Court of Appeals
Docket No: 273965
Case Date: 01/24/2008
Preview:STATE OF MICHIGAN
COURT OF APPEALS

QUICKEN LOANS, INC., a/k/a ROCK FINANCIAL, Plaintiff-Appellant, v GREAT HORIZONS, INC., d/b/a GREAT AMERICAN MORTGAGE CORPORATION, Defendant-Appellee, and BOB STAHL, TOM WHEATON, BRADLEY SWANCOAT, FARIS ARABO, DAVID GILHOOLY, BOBBY MIZE, JR., and DEREK SMITH, Defendants. Before: Whitbeck, P.J., and Owens and Schuette, JJ. PER CURIAM. Plaintiff Quicken Loans, Inc. a/k/a Rock Financial (Rock) appeals as of right the trial court's order dismissing its complaint against defendant, Great Horizons, Inc., d/b/a Great American Mortgage Corporation (GAMC). We affirm. I. Basic Facts And Procedural History Rock filed its complaint on December 19, 2005, alleging tortious interference with contractual/business relationships, misappropriation of trade secrets, unfair competition, conversion, breach of fiduciary duties, and civil conspiracy. Rock alleged that GAMC and individual defendants1 were "engaged in a systematic pattern and practice of raiding mortgage No. 273965 Oakland Circuit Court LC No. 2005-071266-CK UNPUBLISHED January 24, 2008

The trial court entered consent judgments regarding Count I, Breach of Contract, against Bob Stahl, Faris Arabo and Tom Wheaton, and any remaining claims against them were dismissed. The trial court entered default judgments against Derek Smith, David Gilhooly and Bobby Mize, Jr., for failing to answer the complaint. All claims against Bradley Swancoat, the alleged Chief Executive Officer of GAMC, were dismissed.

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bankers employed, trained, and licensed by plaintiff." On May 4, 2006, Rock and GAMC executed a Settlement Agreement (the Agreement) in which Rock agreed to dismiss its complaint against GAMC in exchange for $15,000 and certain other promises. The parties also executed a Permanent Injunction (the Injunction), prohibiting GAMC from soliciting any of Rock's employees for confidential or proprietary information. The parties further executed a Consent Judgment in the amount of $75,000 that was to be entered in the event that GAMC breached the Agreement or violated the Injunction. On June 8, 2006, Rock moved to have the Consent Judgment entered, claiming that GAMC breached the Agreement, but the trial court denied the motion. The trial court granted GAMC's motion to dismiss the complaint on October 9, 2006. II. Motion To Enter Consent Judgment A. Standard Of Review Rock argues that the trial court erred by denying its motion to enter the Consent Judgment because it established that GAMC breached the Agreement and violated the Injunction. We review for an abuse of discretion a trial court's determination whether to enter a consent judgment.2 We also review for an abuse of discretion a trial court's determination whether an injunction was violated.3 A trial court abuses its discretion when it chooses an outcome that is outside the range of reasonable and principled outcomes.4 We review for clear error a trial court's determination whether a contract was breached.5 B. Legal Standards An agreement to settle a lawsuit is a contract subject to the legal principles associated with the interpretation and construction of contracts.6 A contract is "an agreement, upon a sufficient consideration, to do or not to do a particular thing."7 Nonperformance of a duty due under a contract is a breach.8 An injunction is "a court order commanding or preventing an action."9

Cf. Vestevich v West Bloomfield Twp, 245 Mich App 759, 763; 630 NW2d 646 (2001) (stating that this Court reviews for an abuse of discretion a trial court's decision on a motion to set aside a consent judgment).
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Cf. S Abraham & Son, Inc v Dep't of Treasury, 260 Mich App 1, 9; 677 NW2d 31 (2003) (stating that this Court reviews for an abuse of discretion a trial court's order of contempt). Maldonado v Ford Motor Co, 476 Mich 372, 388; 719 NW2d 809 (2006). Local 1064, RWDSU AFL-CIO v Ernst & Young, 449 Mich 322, 326; 535 NW2d 187 (1995). Kloian v Domino's Pizza, LLC, 273 Mich App 449, 452; 733 NW2d 766 (2006). McInerney v Detroit Trust Co, 279 Mich 42, 46; 271 NW 545 (1937). Woody v Tamer, 158 Mich App 764, 771; 405 NW2d 213 (1987). Black's Law Dictionary (8th ed).

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C. Applying The Standards (1) Breach Of The Agreement In
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