In McFarland Real Estate LLC v Anderson Woods Condominium Association, an unpublished Michigan Court of Appeals opinion, the trial court and the Court of Appeals both applied the factors and analysis first outlined in Smith v Khouri, a Michigan Supreme Court case. The Khouri case involved the No Fault Act. The same analysis has been applied in actions under the Headlee Amendment, the Freedom of Information Act, and court rules governing case evaluation sanctions, frivolous motions under the former MCR 2.114 (now 2.109), and MCR 3.206. This case is the first time that the analysis has been applied explicitly to the Michigan Condominium Act. Clearly, the Khouri factors and analysis are the preferred method for determining a reasonable attorney fee.
In this case, McFarland contested the levying of an assessment of $500 against its condominium unit for the installation of a sewer system servicing the units. After contested litigation, the trial court found the unit to be subject to the assessment, awarded the condominium association $500 in assessments, and $14,153.75 in costs and attorney fees. The case was affirmed in all respects on appeal.