Justia Real Estate & Property Law Opinion Summaries

The issue before the Supreme Court in this case was the manner in which defendant JPMorgan Chase Bank, N.A. (Chase), the successor in interest to Washington Mutual Bank (WaMu), acquired plaintiffs' mortgage. Plaintiffs' mortgage was among the assets held by WaMu when it collapsed in 2008. Specifically, the issue was whether defendant acquired plaintiffs' mortgage by "operation of law" and, if so, whether MCL 600.3204(3), applied to the acquisition of a mortgage by operation of law. Upon review of briefs submitted by the parties and the applicable statutory authority, the Supreme Court held that defendant did not acquire plaintiffs' mortgage by operation of law. Rather, defendant acquired that mortgage through a voluntary purchase agreement. Accordingly, defendant was required to comply with the provisions of MCL 600.3204. Furthermore, the Court held that the foreclosure sale in this case was voidable rather than void ab initio. Accordingly, the Court affirmed in part and reversed in part the judgment of the Court of Appeals and remanded the case to the trial court for further proceedings. View "Kim v. J.P. Morgan Chase Bank, N.A." on Justia Law

Marcy Hill, Patricia Hill, and Christopher Hill brought an action against Sears, Roebuck & Co., Sears Logistic Services, Inc., Merchant Delivery, Inc., Exel Direct, Inc., Mark Pritchard, Timothy Dameron, and others, seeking to recover damages for injuries and property damage incurred when Marcy Hill released natural gas through an uncapped gas line and plaintiffs’ home burned down following Patricia Hill’s attempt to light a candle. Defendants were prior owners of the home and the parties who sold, delivered, and installed an electric washer and dryer purchased by Marcy Hill in 2003. Hill’s mother had directed the installers to place the washer and dryer in the same location where the prior owners’ gas dryer had been situated. The prior owners had turned off the gas to the line supplying their dryer, but had not capped off the line when they moved, taking their dryer with them. In 2007, four years after the electric dryer’s installation, during which time it had functioned without incident, Hill inadvertently opened the valve on the gas line. Marcy and Patricia Hill smelled gas throughout the day but did not act on this information, despite both women’s knowledge that the smell of natural gas required safety precautions. Plaintiffs’ home exploded that night when Patricia Hill attempted to light the candle with a lighter. Plaintiffs asserted that the installers had negligently installed the dryer and failed to discover, properly inspect, cap, and warn plaintiffs about the uncapped gas line. The court denied the retailers’, delivery companies’, and installers’ motions for summary judgment. The installers, Mark Pritchard and Timothy Dameron, appealed. The Court of Appeals affirmed. The retailers, delivery companies, and the installers filed separate applications for leave to appeal. Upon review of the matter, the Supreme Court concluded that the delivery and installation of the washer and dryer did not create a new dangerous condition with respect to the uncapped gas line or make an existing dangerous condition more hazardous. The hazard associated with the uncapped gas line was present when the installers entered the premises and when they left; the danger posed by the uncapped gas line was the same before and after the installation. Any liability of the retailers or the delivery companies would have resulted from their agency relationship with the installers. The circuit court erred by denying the summary judgment motions. The case was reversed and remanded for entry of an order granting defendants summary judgment. View "Hill v. Sears, Roebuck & Co." on Justia Law

"Michigan, being above the 42nd parallel of north latitude, is prone to winter. . . . This case tests the extent of a premises owner's liability for [a] winter-related accident." In this case, plaintiff recognized the danger posed by ice on a sidewalk, yet chose to "confront the hazard" by walking across the ice to enter the premises. Plaintiff claimed that the premises' owners should be liable for her injuries, while the premises' owners argued that they are not liable because plaintiff's accident occurred as the result of an ordinary, open and obvious condition. "In many regards, this case is unremarkable both in its simplicity and its frequent occurrence in Michigan. Yet there has been some confusion surrounding the application of the open and obvious doctrine to wintry conditions." Upon review, the Supreme Court rejected plaintiff's argument that the hazard in this case was effectively unavoidable because plaintiff had a business interest in entering the premises. The Court reversed in part the judgment of the Court of Appeals and remanded the case to enter judgment in favor of the premises' owners. View "Hoffner v. Lanctoe" on Justia Law

This case involved the issue of the priority of competing liens between a court-appointed receiver and the holder of a first-recorded mortgage on real property located in DeWitt, Michigan. The receiver, Thomas Woods, sought to recover receivership expenses before the holder of the first-recorded mortgage, Dart Bank, satisfied its mortgage interest. In affirming the circuit court's order placing a first-priority lien on the property in the amount of the receiver's expenses, the Court of Appeals relied, in part, on the Supreme Court's decisions in "Bailey v Bailey" and "Fisk v Fisk" and its own decision in "Attica Hydraulic Exchange v Seslar," to hold that because Dart did not object to and benefited from the receivership, it "may be held responsible for the receivership expenses." The Supreme Court granted Dart's application for leave to appeal to determine whether the common-law rule that receivership expenses are entitled to first priority is controlling, notwithstanding that the holder of a prior recorded mortgage is statutorily entitled to priority under MCL 600.3236, and whether a mortgagee must explicitly consent to the receivership before the mortgagee may be required to pay the associated costs. Upon review, the Supreme Court declined to extend the common-law rule to the facts of this case. Rather, the Court held that MCL 600.3236 controlled and, by its plain language, requires that any liens preexisting the mortgage that is the subject of the foreclosure remain in the same order of priority as they existed at the time of the mortgage's execution. The Court also held that a mortgagee that forecloses consistently with MCL 600.3236 may waive its statutory right of priority and, if that occurs, the receiver may be entitled to compensation before the mortgagee, but only if the mortgagee's waiver is explicitly and unequivocally given. Because the Court of Appeals in this case failed to recognize the applicability of MCL 600.3236 and erroneously extended the holdings in "Bailey" and "Fisk" to support its conclusion that even in the absence of affirmative consent, Dart could nevertheless be required to pay the receiver's costs and fees, the Supreme Court reversed the appellate court's judgment and remanded the case to the circuit court for entry of an order releasing the escrow funds in favor of Dart. View "Price v. Kosmalski" on Justia Law

The issue in these consolidated cases involved interpretation of the General Property Tax Act. For this case, the Supreme Court addressed whether the Tax Tribunal has the authority to reduce an unconstitutional increase in the taxable value of property when the erroneous taxable value was not challenged in the year of the increase. Upon review, the Supreme Court held that the Tax Tribunal does have the authority to reduce an unconstitutional previous increase in taxable value for purposes of adjusting a taxable value that was timely challenged in a subsequent year. "The Tax Tribunal Act sets forth the Tax Tribunal's jurisdiction[;] once [. . .] properly invoked, the Tax Tribunal possesses the same powers and duties as those assigned to a March board of review under the GPTA, including the duty to adjust erroneous taxable values to bring the current tax rolls into compliance with the GPTA." Because the Court of Appeals erroneously held that the Tax Tribunal did not have jurisdiction to review taxable values in years not under appeal, the Supreme Court reversed the Court of Appeals' judgment and remanded the case back to that Court to consider Northville Township's remaining issues on appeal regarding the Tax Tribunal's valuation of the properties.

The issue in these consolidated cases involved interpretation of the General Property Tax Act. For this case, the Supreme Court addressed whether the tax assessor's failure to adjust the taxable value of a parcel of real property in the year immediately following its transfer precluded a March board of review from adjusting the taxable value in a later year. Upon review, the Court held that the failure to adjust the taxable value in the year immediately following the transfer produced an erroneous taxable value because the taxable value was not in compliance with the GPTA. Further, the GPTA did not preclude a March board of review from correcting an erroneous taxable value that resulted from the failure of an assessor to adjust a property's taxable value in the year immediately following its transfer. Accordingly, the Court also held that a March board of review may adjust the erroneous taxable value in a subsequent year in order to bring the current taxable value into compliance with the GPTA. The Court of Appeals held that the error in this case could not be remedied and, therefore, the Supreme Court reversed the judgment of the Court of Appeals and reinstated the Michigan Tax Tribunal's decision affirming the March board of review's correction of the tax rolls to reflect the properly adjusted taxable values.

The dispute in this case stemmed from a disagreement between Plaintiff Florence Beach and Defendant Lima Township over property rights to an area of land that were shown as streets on the recorded township plat. The land was originally recorded in 1835, and through a series of conveyances, was acquired and held by the Beach family ever since. In 2004, the Township purchased several blocks to build a fire department substation and intended to use the platted streets. Plaintiff disputed the Township's right to use the streets and filed an action to quiet title to them based on adverse possession. The circuit court denied the Township's motion after an evidentiary hearing. The court found that 100-year-old trees were growing in the middle of the "streets," and that the Beach family had adversely possessed them by farming as well as maintaining private trials and fences. On appeal to the Supreme Court, the Township argued that Plaintiff was required to file a claim under the state Land Division Act (LDA) instead of bringing a quiet title action when the property in dispute is on a recorded plat. The Court found that the LDA only applied to cases when a party's interest arose from the platting process. Accordingly, the Court affirmed the trial court's findings that Plaintiff had adversely possessed the platted streets.

The Supreme Court consolidated nine separate cases for review. In each, Plaintiffs own property that was subject to state property taxes. Each Plaintiff described the property as âmachinery and equipment.â For the 2008 tax year, the local assessors classified the property for tax-assessment purposes as âindustrial real propertyâ or âcommercial personal property.â Plaintiffs petitioned the relevant boards-of-review to reclassify the property as âindustrial personal property.â That reclassification would permit them to take advantage of recently enacted tax exemptions or credits. In each case, the board denied the request. Plaintiffs then petitioned the State Tax Commission (STC) to reclassify the property. In each case, the STC denied the requests. Plaintiffs then sought and obtained relief in various state circuit courts. The STC appealed to the Court of Appeals, and the court reversed each of the circuit court judgments. The appellate court held that state law barred an appeal of the STC classifications to any state court. Plaintiffs appealed to the Supreme Court, to ask whether the circuit courts have jurisdiction to hear appeals of STC classification decisions. The Supreme Court found the state legislature has not provided for other means for judicial review of STC classification decisions. Accordingly, the Court held that the circuit courts do have jurisdiction over appeals from the STC.

Plaintiff Great Wolf Lodge of Traverse City, LLC (Lodge) is a water park that sits on former farmland. In 2000, the Lodge annexed a new portion of the former farmland to expand its premises. Defendant Cherryland Electric Cooperative (Cherryland) ran an electric line to the former farm. Cherryland insisted that it had exclusive rights to provide electric service to the Lodge. The Lodge did not protest Cherrylandâs assertion in order to keep its expansion project on track. The new Cherryland contract called for discounted rates. Over the course of the contract, Cherryland unilaterally raised the rates. The Lodge filed suit seeking a refund of excess rates it paid to Cherryland, and to have the ability to choose its own electric service provider. A hearing officer would rule in favor of the Lodge on the rate refund, but would not allow it to choose its own service provider, citing Cherrylandâs âright of first entitlementâ that dated back to when it provided service to the farm. The appellate court reversed the hearing officer. One of the issues on appeal to the Supreme Court was whether Cherrylandâs âright of first entitlementâ stopped when the property ownership changed hands. The Court concluded that the right is not extinguished when ownership changes. The Court reversed the judgment of the appellate court, and reinstated the decision of the hearing officer.