Where a plaintiff lender has brought suit alleging breach of a promissory note and forbearance agreement, the plaintiff is entitled to summary disposition based on the defendant’s failure to repay the loan amount.
“This case is before the Court on a motion for summary disposition pursuant to MCR2.1 16(C)(10) filed by Plaintiff Plante Moran Trust, as Trustee of the Gretchen C. Valade Irrevocable Living Trust u/a/d January 15, 2009 (the Trust). For the reasons stated below, the Court will grant the motion and enter judgment against Defendant Byzantine Holdings, LLC and in favor of Plaintiff.
“This case arises from the alleged breach of a promissory note and forbearance agreement by Byzantine. In January 2017, the Trust extended a line of credit to Byzantine. A promissory note (the Note) was executed under which the Trust agreed to loan Byzantine up to five million dollars. The Note had a term of three years, after which it would convert to a Short-Term Demand Note, which was payable on written demand of the Trust.
“In December 2020, the Trust and Byzantine entered into a Loan Forbearance and Repayment Agreement (Forbearance Agreement).
“Pursuant to the Forbearance Agreement, Byzantine made a $500,000 payment in January 2021. In April 2021, the parties amended the Forbearance Agreement (‘Amended Forbearance Agreement’) to indicate that the amount owed as of December 31, 2020 was $7,791,521. The other terms remained unchanged. On April 15, 2021, Byzantine made a contractual extension payment, which gave it another month to make the $750,000 April payment. However, Byzantine made no further payments on the Note. On May 21, 2021, the Trust notified Byzantine that it was in default of the Amended Forbearance Agreement.
“Plante Moran then initiated the instant action against Byzantine, bringing claims of Breach of Contract, Unjust Enrichment, and Promissory Estoppel. Currently before the Court is Plante Moran’s motion for summary disposition as to all claims.
“Plante Moran argues that it is entitled to summary disposition on its claims that Byzantine breached both the Note and the Amended Forbearance Agreement when it failed to repay the loan amount.
“In the present case, Byzantine does not dispute that the Note and the Amended Forbearance Agreement are valid, enforceable contracts. Regarding the Note, under the clear and unambiguous terms of the Note, Byzantine agreed to pay interest on any loan balance. Byzantine also agreed that, once demand for payment was made, it had 90 days to pay all amounts due and owing under the Note. It is uncontested that Byzantine did not pay the over $7.5 million owed within 90 days of the Trust’s demand for payment. Thus, Byzantine is in breach of the Note.
“With regard to the Amended Forbearance Agreement, Byzantine agreed to make installment payments until the balance of the outstanding loan was paid. It is uncontested that Byzantine only made one $500,000 payment under the Forbearance Agreement and has otherwise failed to make any payments. As of May 17, 2021, Byzantine was in breach of the Amended Forbearance Agreement, rendering Byzantine liable for outstanding principal in the amount of $7,291,521.00, plus interest and the cost to the Trust for seeking enforcement of the Note, including reasonable attorney fees. Accordingly, Plaintiff is entitled to judgment in its favor on the breach of contract claims.”
Plante Moran Trust, v. Byzantine Holdings LLC; MiLW 10-108113, 9 pages; Wayne Circuit Court; Berry, J.
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