Real Property Notes Blog
Service Fees Going Up
The cost of service of process is going up, from the current $23 plus mileage for most types of service to $26 plus mileage, effective September 26, 2018. The statute is MCL Sec 600.2559, amended by Act 261 of the Public Acts of 2018, and signed into law on June 27, 2018.
Extension of Time to Pay Note is Supported by Consideration
In Dunkel v Signal Medical Corp., an unpublished Michigan Court of Appeals opinion, Plaintiff sued for breach of a promissory note when Defendant sent a letter advising it would not repay the loan. Defendant moved for summary disposition on the basis that the suit was outside the statute of limitations.
The issue was the application of MCL 566.1, which requires a modification of a contract to either (1) be in writing and signed or (2) supported by additional consideration. Defendant asserted that extensions of time did not constitute additional consideration under the “pre-existing duty” doctrine because Defendant already had an obligation to repay the loan. The trial court granted Defendant’s motion for summary disposition.
On appeal, the Court of Appeals reversed. Because the extension resulted in Plaintiff receiving additional interest having to wait longer to be repaid in full, and Defendant having additional time to repay the principal and paying additional interest, there was consideration on both sides of the transaction. The modifications were enforceable, bringing the contract within the statute of limitations.