- Michael R. Wernette
- MWernette@schaferandweiner.com
- Michigan
- Phone: +1 248-540-3340
- Fax: + 1 248-282-1900
- PRACTICE AREAS
- Business Litigation
- Bankruptcy Law and Litigation
- ADMISSIONS & QUALIFICATIONS
- State of Michigan trial and appellate courts, as well as the U.S. District Courts and U.S. Bankruptcy Courts for the Eastern and Western Districts of Michigan and the U.S. Court of Appeals for the Sixth Circuit. Pro Hac Vice admissions in New York, Delaware, and Ohio federal courts.
- EDUCATION
- Wayne State University Law School, Juris Doctor, 1996. Recipient of the Dean’s Scholar Award and Bronze Key Certificate, Finalist in the Arthur Neef Moot Court Competition, Editor in Chief of The Advocate law school newspaper.
- Michigan State University, B.A., 1993. Dean’s List, six consecutive semesters.
Michael R. Wernette
Partner
PROFESSIONAL PROFILE
Whether representing large corporations, small businesses, or individuals, Michael R. Wernette has established a reputation for strength and skill as a trial lawyer and counselor. Michael has obtained successful trial verdicts and favorable settlements under challenging circumstances in courts throughout Michigan, as well as in New York, Delaware, Ohio, and California. He also handles bankruptcy matters and bankruptcy litigation on behalf of both creditors and debtors as a major segment of his practice, with amounts in controversy ranging from tens of millions of dollars down to tens of thousands.
Mr. Wernette co-authored the Litigating in Bankruptcy Court chapter of the 2009 book Handling Consumer and Small Business Bankruptcies in Michigan, published by the Institute of Continuing Legal Education and has served as a speaker to the Michigan Association of Certified Public Accountants on various business law and bankruptcy law matters.
Mr. Wernette believes that first and foremost, a legal counselor and litigator must solve problems for his clients, and that whether the matter is large or small, the same things make the difference – leadership, keen judgment, and confidence in the courtroom.
REPRESENTATIVE MATTERS
Recovered a $500,000 settlement for an automotive parts manufacturer in the New York bankruptcy case of a large Tier One auto supplier. Mr. Wernette filed a claim in the Tier One’s bankruptcy case seeking priority payment of the client’s claim, which was based on a pricing dispute. The court scheduled the matter for trial. Mr. Wernette prepared his client’s case and appeared in New York prepared to go to trial. The Tier One agreed to settle at the courthouse.
Won a federal court trial verdict of over $600,000 for a real estate developer against a general contractor and its president based on Michigan’s Builder’s Trust Fund Act.
Defended an automotive tooling maker in a $1.2 million “preference payment” suit in a Delaware bankruptcy case. The client had withheld delivery of tooling to a Tier One supplier to extract payment for old invoices from the Tier One. The Tier One later filed bankruptcy, and the client was sued to recover the payment as a preference under the Bankruptcy Code. The typical preference payment defenses were weak, but Mr. Wernette developed a theory that the $1.2 million was not a preference because it was never the Tier One’s money – rather, the Tier One was a mere conduit for money General Motors put up to secure delivery of the “hostage” tooling. The client paid just 12 cents on the dollar to settle the case.
Removed a $1.5 million construction lien from a client’s real estate development project through fast-track litigation in bankruptcy court. After two days of taking evidence and argument, the court ruled that the construction lien was invalid, which paved the way for Mr. Wernette’s client to close on a sale of the project instead of losing it to foreclosure.
Won a unanimous jury trial verdict for a plaintiff business owner after ten days of trial in state court, in a breach of warranty/fraud action against a large manufacturer of custom roofing systems. The jury awarded every penny of requested damages.
Obtained a temporary restraining order and preliminary injunction in state court on behalf of an automotive parts manufacturer to prevent the client’s raw material supplier from stopping shipments due to late payments. Cessation of shipments would have shut the client down within days. Despite the client’s repeated failures to pay the supplier according to written terms, Mr. Wernette presented evidence that the supplier had waived the payment defaults, and prevailed after a two-day preliminary injunction hearing. The injunction gave the client the time needed to find a new supplier at lower prices without interruption to its business.
Defended a small business owner against claims brought by the UAW. The client’s company was unable to pay a subcontractor on a roofing project at the UAW’s facility. The subcontractor filed suit to foreclose its construction lien on the UAW facility. The UAW filed a third-party complaint against Mr. Wernette’s client personally, alleging breach of contract, fraud, and violation of the Builder’s Trust Fund Act. Mr. Wernette went on the offensive, filing a motion to dismiss the UAW’s complaint and seeking monetary sanctions. The UAW agreed to dismiss all claims against Mr. Wernette’s client rather than respond to the motion.
Defended a nursing home in a personal injury action by a resident who fell at the facility, resulting in a fractured hip and femur. After investigation was complete but before substantial litigation costs were incurred, the plaintiff made a settlement demand of $75,000. The client’s in-house counsel authorized Mr. Wernette to settle the case up to $50,000. Mr. Wernette negotiated a settlement for $29,500, saving the client tens of thousands of dollars in settlement costs and legal fees.
SEMINARS
Speaker to the Michigan Association of Certified Public Accountants:
The Business “Divorce” – Breakups of Closely-Held Companies (2007)
Bankruptcy Actions and the CPA’s Role (2006)
PUBLICATIONS
Co-author of the Litigation in Bankruptcy Court chapter of the 2009 book Handling Consumer and Small Business Bankruptcies in Michigan by the Institute of Continuing Legal Education.
PRIOR EXPERIENCE
Prior to joining Schafer and Weiner in 2001, Mr. Wernette practiced in the ligitation department at Kerr, Russell and Weber, PLLC in Detroit.