7.7Stipulations

A.On the Record or in Writing

Stipulations must be made in open court or must be in writing and signed by the parties or the parties’ attorneys on the parties’ behalf. MCR 2.116(A)(1); MCR 2.507(G). The terms of a stipulation must be certain and definite. Whitley v Chrysler Corp, 373 Mich 469, 474 (1964). Approving an order or judgment as to form and content does not constitute a stipulation as to the outcome, unless there is an indication that the parties have stipulated to the outcome. See Ahrenberg Mech Contracting, Inc v Howlett, 451 Mich 74, 77-78 (1996). Generally, rules of contract construction apply to stipulated orders that have been accepted by the trial court. Phillips v Jordan, 241 Mich App 17, 21 (2000) (“contract principles do not govern child custody matters,” where the court must “independently determine what is in the best interests of the child”).

B.Stipulation of Fact and Stipulations of Law

Stipulations of fact are permissive, not mandatory. See MCR 2.116(A)(1) (the parties may submit stipulations of fact to the court). Stipulations of fact are binding on the court. Staff v Johnson, 242 Mich App 521, 535 (2000). “If the parties have stipulated to facts sufficient to enable the court to render judgment in the action, the court shall do so.” MCR 2.116(A)(1).

Stipulations of law are not binding on the court. Staff, 242 Mich App at 535. “It is within the inherent power of a court, as the judicial body, to determine the applicable law in each case. To hold otherwise could lead to absurd results; for example, parties could force a court to apply laws that were in direct contravention to the laws of this state. It would also allow the parties to stipulate to laws that were obsolete, overruled, or unconstitutional.” In re Finlay Estate, 430 Mich 590, 595-596 (1988).

C.Enforcement

Courts should encourage and enforce stipulations that are “designed to simplify, shorten or settle litigation and save costs to the parties” unless there is good cause not to do so. Conel Dev, Inc v River Rouge Savings Bank, 84 Mich App 415, 419 n 5 (1978). 

A trial court has the “equitable power to relieve a party from a stipulation where there is evidence of mistake, fraud or unconscionable advantage taken by one party over the other.” Valentino v Oakland Co Sheriff, 134 Mich App 197, 206 (1984), aff’d in part, rev’d in part on other grounds 424 Mich 310 (1986).¹ A fraud occurs when a party conceals some material fact from the court or makes some material misrepresentation to the court. Valentino, 134 Mich App at 207. The court must conduct an evidentiary hearing to determine if the allegations of fraud are true. Id.