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Court of Appeals Confirms Trial Standard for Attorney Fees in Commercial Lease Disputes

In TRG Advisory, Ltd. v. M.G. Realty, LLC, No. 367647, 2025 Mich. App. LEXIS 5571 (Ct. App. July 15, 2025), the Michigan Court of Appeals held that a post-judgment motion for attorneys’ fees under a lease was properly denied where no evidence about the attorneys’ fees had been presented at trial. A trial court “may not enter judgment on a claim that was not brought in the original action in the guise of a postjudgment proceeding.”

A jury found that the landlord had constructively evicted a commercial tenant and awarded damages.  But the tenant never introduced evidence of the reasonableness of the attorney fees at trial, and the trial court denied the post-judgment motion.  In affirming the trial court, the Michigan Court of Appeals explained that attorneys’ fees awarded under contractual provisions are damages, not costs, and evidence must be presented at trial because the damages should have been treated as any other damage claim.

This decision serves as an important procedural reminder for commercial litigators: claims for attorneys’ fees under a contract must be fully presented as part of the trial evidence or risk being waived. If your business is navigating a complex lease dispute or preparing for litigation, our team can provide guidance on best practices for preserving and proving damages.