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On order of the Court, the application for leave to appeal the August 10, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the August 15, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the August 1, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. The motion to remand and/or to expand the record is DENIED. | [
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On order of the Court, the application for leave to appeal the August 8, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the August 14, 2017 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the July 25, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the July 25, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the application for leave to appeal the August 8, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant's motion for relief from judgment is prohibited by MCR 6.502(G). | [
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] |
On order of the Court, the application for leave to appeal the July 31, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the application for leave to appeal the June 26, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the motion for reconsideration of this Court's February 20, 2018 order is considered, and it is DENIED, because it does not appear that the order was entered erroneously. | [
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On order of the Court, the application for leave to appeal the May 12, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D).
Wilder, J., did not participate because he was on the Court of Appeals panel. | [
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On order of the Court, the application for leave to appeal the March 7, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). The motion to hold application for leave to appeal in abeyance is DENIED.
Wilder, J., did not participate because he was on the Court of Appeals panel. | [
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On order of the Court, the application for leave to appeal the May 12, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D).
Wilder, J., did not participate because he was on the Court of Appeals panel. | [
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On order of the Court, the application for leave to appeal the April 25, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the application for leave to appeal the April 5, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the application for leave to appeal the March 8, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant's motion for relief from judgment is prohibited by MCR 6.502(G).
Wilder, J., did not participate because he was on the Court of Appeals panel. | [
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On order of the Court, the application for leave to appeal the March 8, 2017 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. The motion to dismiss conviction and sentence, the motion to remand, and the motions for an evidentiary hearing and lab testing are DENIED. | [
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On order of the Court, the application for leave to appeal the March 29, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the motion for reconsideration of this Court's January 3, 2018 order is considered, and it is DENIED, because it does not appear that the order was entered erroneously. | [
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] |
On order of the Court, the application for leave to appeal the September 22, 2016 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. The motion for appointment of counsel is DENIED. | [
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On order of the Court, the application for leave to appeal the September 12, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the motion for reconsideration of this Court's April 3, 2018 order is considered, and it is DENIED, because it does not appear that the order was entered erroneously. | [
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On order of the Court, the application for leave to appeal the December 29, 2016 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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By order of February 20, 2018, the prosecuting attorney was directed to answer the application for leave to appeal the February 2, 2017 order of the Court of Appeals. On order of the Court, the answer having been received, the application for leave to appeal is again considered and, it appearing to this Court that the cases of People v. Tucker (Docket No. 152798) and People v. Snyder (Docket No. 153696) are pending on appeal before this Court and that the decisions in those cases may resolve an issue raised in the present application for leave to appeal, we ORDER that the application be held in ABEYANCE pending the decisions in those cases. | [
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On order of the Court, the motion for review of taxation of costs pursuant to MCR 7.319 and MCR 7.219(E) is considered, and it is DENIED. | [
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On order of the Court, the application for leave to appeal the February 15, 2019 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the February 19, 2019 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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] |
On order of the Court, the application for leave to appeal the February 21, 2019 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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] |
On order of the Court, the application for leave to appeal the January 22, 2019 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the January 3, 2019 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the January 15, 2019 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the February 19, 2019 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the January 15, 2019 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the February 7, 2019 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court.
Viviano, J., did not participate due to a familial relationship with the presiding circuit court judge in this case. | [
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On order of the Court, the application for leave to appeal the February 14, 2019 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the December 21, 2018 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the application for leave to appeal the December 20, 2018 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the December 18, 2018 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the November 27, 2018 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the motion for expedited consideration is GRANTED. The application for leave to appeal the October 16, 2018 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the November 14, 2018 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the application for leave to appeal the October 9, 2018 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. The motion to expand the record is DENIED. | [
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On order of the Court, the application for leave to appeal the October 11, 2018 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the September 27, 2018 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Chief Justice, the motion of defendant-appellee to extend the time for filing its brief is GRANTED. The brief submitted on June 26, 2019, is accepted as timely filing. | [
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On order of the Chief Justice, the motion for the temporary admission of out-of-state attorneys Jaimie N.L. Cavanaugh and Wesley P. Hottot to appear and practice in this case under MCR 8.126(A) is GRANTED. The motion of plaintiffs-appellants to extend the time for filing their reply brief is GRANTED. The brief will be accepted as timely filed if submitted on or before May 8, 2019. The motion of the Center for Constitutional Jurisprudence to file a brief amicus curiae is GRANTED. The amicus brief will be accepted for filing if submitted on or before May 8, 2019. | [
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On order of the Chief Justice, the motion of defendant-appellee to file a response to the brief amicus curiae filed by Kickham Hanley, PLLC is GRANTED. The response submitted on March 28, 2019, is accepted for filing. | [
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] |
On order of the Court, the motion for immediate consideration is GRANTED.
The application for leave to appeal the January 15, 2019 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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On order of the Chief Justice, the motion of Kickham Hanley PLLC to file a brief amicus curiae is GRANTED. The amicus brief submitted on March 20, 2019, is accepted for filing. | [
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On November 19, 2018, the Court heard oral argument on the application for leave to appeal the October 27, 2016 judgment of the Court of Appeals. On order of the Court, the application is again considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court.
Viviano, J. (concurring).
I concur in the Court's order denying leave to appeal. I agree that, under Allison v. AEW Capital Mgt., LLP , 481 Mich. 419, 751 N.W.2d 8 (2008), plaintiff has presented sufficient evidence to survive summary disposition. I write separately because I believe that Allison 's holding that MCL 554.139(1)(a) creates an ongoing obligation on the part of the lessor may be premised on an erroneous assumption and should be reexamined. But, since this argument has not been raised by any party, I write only to highlight the issue for future consideration.
Plaintiff Mae Hendrix slipped and fell on an ice patch that formed when water from a garage downspout pooled and froze on the driveway leading to her garage entrance at the apartment complex where she resided. The parties agree that all of the apartment driveways together constitute a common area, as tenants routinely walked across the adjoining driveways to access their own apartments. Plaintiff sued defendant, the owner of the apartment complex, claiming negligence, common-law premises liability, and a violation of MCL 554.139(1)(a).
MCL 554.139 provides, in relevant part, as follows:
(1) In every lease or license of residential premises, the lessor or licensor covenants:
(a) That the premises and all common areas are fit for the use intended by the parties.
(b) To keep the premises in reasonable repair during the term of the lease or license, and to comply with the applicable health and safety laws of the state and of the local unit of government where the premises are located, except when the disrepair or violation of the applicable health or safety laws has been caused by the tenant[']s wilful or irresponsible conduct or lack of conduct.
This statute was enacted in 1968 to codify the common-law implied warranty of habitability. In Allison , this Court held that "[b]ecause a parking lot within a leased residential property is a common area under MCL 554.139(1)(a), the lessor effectively has a contractual duty to keep the parking lot 'fit for the use intended by the parties.' " For the reasons below, I question whether this interpretation comports with the plain language of Subsection (1)(a), which does not appear to create an ongoing obligation on the part of lessors.
Our primary goal in interpreting a statute "is to ascertain the legislative intent that may be reasonably inferred from the words expressed in the statute." When the statutory language is clear, "we presume that the Legislature intended the meaning expressed." The plain language of MCL 554.139 creates two covenants in all residential leases: (1) "[t]hat the premises and all common areas are fit for the use intended by the parties," MCL 554.139(1)(a) ; and (2) that the landlord will "keep the premises in reasonable repair during the term of the lease" and "comply with the applicable health and safety laws," MCL 554.139(1)(b). The first of these covenants uses the present tense of the verb "to be"-"are"-which strongly suggests that the covenant relates to the condition of the premises at the time the covenant is made, i.e., at the time the lease is executed. In other words, it does not appear that this covenant creates an ongoing obligation for the duration of the lease term. By contrast, the second covenant creates such an ongoing obligation by requiring that the landlord "keep the premises in reasonable repair during the term of the lease or license." The word "keep" is relevantly defined as "to maintain, or cause to stay or continue, in a specified condition, position, etc.; as, keep your engine running." This duty obviously extends beyond the inception of the lease and continues during the lease term.
I concur in the majority's denial order because, under Allison , which interpreted the covenant created by MCL 554.139(1)(a) as an ongoing obligation, I agree that there remains a genuine issue of material fact as to whether defendant violated that covenant by failing to keep the driveway "fit for the use intended by the parties." As the Court of Appeals explained, photographs taken from the day of plaintiff's fall show that a "substantial portion" of the driveway was covered in ice formed when water from a downspout pooled in broken and depressed concrete. But, for the reasons above, I believe this Court should reconsider in an appropriate future case whether Allison 's interpretation of MCL 554.139(1)(a) as creating an ongoing obligation is consistent with the plain language of the statute.
Mae Hendrix passed away on May 11, 2017, and the trial court entered an order on December 15, 2017, allowing the personal representative of her estate, Celestine Stacker, to substitute as plaintiff. For ease of reference, I will continue to refer to Ms. Hendrix as "plaintiff."
1968 PA 295. See Allison , 481 Mich at 441, 751 N.W.2d 8 ( Corrigan , J., concurring) ("A reasonable inference arises from the language of MCL 554.139(1)(a) ('fit for the use intended by the parties') that it codifies the implied warranty of habitability.").
Id . at 429 (emphasis added).
Id . at 427 (quotation marks and citation omitted).
Id .
MCL 554.139(1)(b) (emphasis added).
Webster's New Twentieth Century Dictionary of the English Language, Unabridged (2d ed.).
See also Schier, Draftsman: Formulation of Policy , 2 Prospectus 227, 233 (1968) (emphasis added) ("Under [MCL 554.139,] the occupant of rented housing, whether a lessee or a licensee, has the benefit of two covenants which will be found in every rental agreement. The first covenant is in effect a warranty that the premises are fit for the uses intended by the parties at the time of taking possession . The second is in effect a promise of future performance and states that the lessor or licensor covenants to keep the premises in reasonable repair during the term of occupancy and to comply with all applicable health and safety laws."). | [
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On order of the Court, the application for leave to appeal the August 9, 2018 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). The motion to remand is DENIED. | [
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On order of the Court, the application for leave to appeal the June 29, 2018 order of the Court of Appeals is considered. We DIRECT the Genesee County Prosecuting Attorney to answer the application for leave to appeal within 28 days after the date of this order.
The application for leave to appeal remains pending. | [
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] |
On order of the Court, the application for leave to appeal the May 17, 2018 judgment of the Court of Appeals is considered. We direct the Clerk to schedule oral argument on the application. MCR 7.305(H)(1).
The appellant shall file a supplemental brief within 42 days of the date of this order addressing whether, when a defendant's plea of guilty or no contest will subject him to the court's discretion to impose consecutive sentences, the court must advise the defendant of that possibility before the court may accept the plea. See U.S. Const., Am. XIV ; Const. 1963, art. 1, § 17 ; MCR 6.302(B). In addition to the brief, the appellant shall electronically file an appendix conforming to MCR 7.312(D)(2). In the brief, citations to the record must provide the appendix page numbers as required by MCR 7.312(B)(1). The appellee shall file a supplemental brief within 21 days of being served with the appellant's brief. The appellee shall also electronically file an appendix, or in the alternative, stipulate to the use of the appendix filed by the appellant. A reply, if any, must be filed by the appellant within 14 days of being served with the appellee's brief. The parties should not submit mere restatements of their application papers.
The Prosecuting Attorneys Association of Michigan and the Criminal Defense Attorneys of Michigan are invited to file briefs amicus curiae. Other persons or groups interested in the determination of the issue presented in this case may move the Court for permission to file briefs amicus curiae. | [
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On order of the Chief Justice, the motion of defendant-appellee to extend the time for filing its answer to the application for leave to appeal is GRANTED. The answer submitted on June 18, 2018, is accepted for filing. | [
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On order of the Chief Justice, the motion to waive fees is considered and it is DENIED because MCL 600.2963 requires that a prisoner pursuing a civil action be liable for filing fees.
Within 21 days of the date of this order, appellant shall pay to the Clerk of the Court the initial partial filing fee of $72.00; submit a copy of this order; and refile the copy of the pleadings returned with this order. Failure to comply with this order shall result in the appeal not being filed in this Court.
If appellant timely files the partial fee and refiles the pleadings, monthly payments shall be made to the Department of Corrections in the amount of 50 percent of the deposits made to appellant's account until the payments equal the balance due of $303.00. This amount shall then be remitted to this Court.
Pursuant to MCL 600.2963(8) appellant shall not file a new civil action or appeal in this Court until the entry fee in this case is paid in full.
The Clerk of the Court shall furnish two copies of this order to appellant and return a copy of appellant's pleadings with this order. | [
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Wilder, J.
In this case, plaintiff claims a prescriptive easement for ingress and egress over defendant's property on the basis of open, notorious, adverse, and continuous use of that property by a predecessor of plaintiff for at least 15 years. The question presented here is whether such use creates a prescriptive easement that is appurtenant, without regard to whether the previous owner of the dominant estate took legal action to claim the easement. The answer to that inquiry is yes.
MCL 600.5801(4), which provides for a 15-year period of limitations, is not contingent on whether the prior owner of the dominant estate took legal action to claim the prescriptive easement. Moreover, our caselaw establishes that one seeking to obtain record title of a prescriptive easement may establish that the elements were met by a prior owner in the claimant's chain of title. When a prescriptive easement has vested under a previous property owner's possession, the easement is appurtenant and is conveyed to subsequent owners in the chain of title without the need to show privity of estate. Wortman v. Stafford , 217 Mich. 554, 187 N.W. 326 (1922) ; Haab v. Moorman , 332 Mich. 126, 50 N.W.2d 856 (1952).
The Court of Appeals erred by requiring plaintiff to establish privity of estate with the previous owner, regardless of whether plaintiff could establish that the elements of a prescriptive easement were satisfactorily met by that prior owner. Moreover, the Court of Appeals erred by holding that the previous owner of the dominant estate must have taken legal action to claim the prescriptive easement in order for plaintiff to prove that a prescriptive easement had vested during the preceding property owner's tenure. Title by adverse possession is gained when the period of limitations expires, not when legal action quieting title to the property is brought. See Gardner v. Gardner , 257 Mich. 172, 176, 241 N.W. 179 (1932) ; Matthews v. Natural Resources Dep't , 288 Mich.App. 23, 37, 792 N.W.2d 40 (2010). We reverse the Court of Appeals judgment in part and remand to that Court for consideration of any outstanding appellate issues in this case.
I. FACTS AND PROCEEDINGS
In early 1988, Bernard and Evelyn Zyrowski owned a single unimproved tract of land at the corner of M-53 and Enterprise Drive (which later came to be known as Euclid Street) in Marlette, Michigan. The land was conveyed to B & J Investment Company, which was owned by Bernard Zyrowski and his son James Zyrowski. The land was split into two parcels.
In the summer of 1988, B & J Investment began construction of a car wash on one of the two parcels. The remaining parcel was sold to Marlette Development Corporation by land contract on October 5, 1988. The car wash began operating in 1989, and from that date onward customers of the car wash used the parking lot of the other parcel as one means of ingress to and egress from the car wash. In March 1990, Marlette Development's land contract was paid off and the deed recorded. No easement was reserved for the benefit of the car wash property. Several months later, Marlette Development Corporation opened a shopping center on their property.
In March 2000, the village of Marlette closed the north entrance to the car wash from Euclid Street. After the entrance was closed, B & J Investment expanded the car wash, adding four additional car wash bays across that newly closed entrance. Closing the north entrance left two ways to access the car wash: (1) from M-53, and (2) through the shopping center parking lot. The M-53 access was problematic, however, because it required customers to drive through a (sometimes occupied) semi-truck car wash bay in order to access the western portion of the car wash property. Access to this portion of the property was necessary for all those customers wishing to use the automatic car wash bays or the four newly built self-service car wash bays. Local residents testified that they never saw anyone access the car wash by the M-53 entrance because it was a dangerous turn.
In April 2005, B & J Investment sold the car wash to Lipka Investments. At closing, Gary Lipka inquired how customers were to access the western portion of the car wash property. He was informed by Zyrowski that the car wash had been accessed through the shopping center parking lot since the car wash opened and that the parking lot was owned by the "Marlette Business Group." After talking to Zyrowski, Lipka believed that there would be no issue with the continued use of the parking lot because it had "been used for so long and never been blocked off...."
Approximately one year later, Lipka Investments defaulted on its loan with Tri-County Bank. Lipka Investments conveyed the car wash property to the bank in lieu of foreclosure on July 14, 2006. Shortly thereafter, the bank conveyed the property to GLCW, LLC, the property-holding entity of the bank. On September 28, 2006, GLCW entered into a lease and purchase agreement with plaintiff Marlette Auto Wash, LLC.
Six months later, Marlette Auto Wash purchased the property from GLCW. The purchase agreement did not include an easement, and Marlette does not allege that any statements were made regarding vehicular access at the time of purchase. Customers continued without interference to access the car wash by driving through the shopping center parking lot.
On May 22, 2013, defendant, Van Dyke SC Properties, LLC, purchased the shopping center property from Marlette Development Corporation. James Zyrowski, former co-owner of B & J Investment, is the sole owner of Van Dyke Properties. After undergoing renovations, the shopping center opened in November 2013. Shortly after opening the shopping center, defendant made clear that unless plaintiff contributed $1,500 per month to support the overall maintenance of the parking lot, defendant would park trailers at the property line, closing off access to the car wash. Plaintiff refused.
The following month, the village of Marlette encountered heavy snowfalls. After plaintiff plowed snow from its property onto defendant's property, defendant blocked the western entrance to the car wash with snow, rendering the car wash property inaccessible for a day and a half. After that incident, plaintiff filed the present lawsuit, claiming an easement for ingress and egress through defendant's parking lot. Defendant filed a counterclaim, seeking to quiet title and seeking monetary damages for parking lot maintenance, upkeep, and insurance.
A bench trial was conducted. At trial, James Zyrowski testified that he believed that B & J Investment had permission to use the parking lot for ingress to and egress from the car wash during the period that he and his father owned the car wash. This belief was based on a conversation that Zyrowski had with his father. Zyrowski did not recall when the conversation with the elder Zyrowski took place. Zyrowski was not present when the permission was allegedly given to his father, did not recall the year permission was given to his father, and did not recall any details regarding the scope of the permission. He acknowledged that B & J Investment never contributed any money toward the upkeep and maintenance of the parking lot.
In a written opinion, the trial court held that plaintiff had established a prescriptive easement for ingress and egress over defendant's property. The court found, among other things, that a prescriptive easement benefiting the car wash had vested in 2005. The court further concluded, given its authority as a court of equity, that the person now trying to preclude the current owners of the car wash from using the parking lot access was the same person who used this same parking lot for access to his car wash when he owned the car wash property. The trial court excluded defendant's evidence in support of its counterclaim seeking "amounts claimed for contributions for parking lot expenses," because the evidence was not disclosed to plaintiff before trial.
In an unpublished per curiam opinion, the Court of Appeals affirmed in part, vacated in part, and remanded for entry of judgment in defendant's favor on the prescriptive easement issue. The Court of Appeals affirmed the trial court's decision regarding defendant's counterclaim, concluding that the trial court had not erred by excluding defendant's evidence as a discovery sanction.
Concerning the easement claim, the Court of Appeals reversed, holding that the trial court had erred by granting a prescriptive easement because plaintiff had failed to establish privity of estate with the previous owner. Plaintiff argued that privity need not be established because the 15-year period elapsed during the time that Zyrowski owned the car wash, and a prescriptive easement vested to the benefit of all subsequent property owners. While the Court of Appeals acknowledged that a property interest acquired through adverse possession vests when the statutory period expires and not when the action was brought, the Court of Appeals held that plaintiff's claim failed because "no previous owner of the car wash asserted a claim of prescriptive easement with regard to defendant's property." Marlette Auto Wash, LLC v. Van Dyke SC Props., LLC , unpublished per curiam opinion of the Court of Appeals, issued May 10, 2016 (Docket No. 326486), p. 3, 2016 WL 2731124. The panel, being of the view that plaintiff had failed to support its assertion that privity of estate need not be established after the 15-year period is met by a previous owner with any legal authority, cited Reed v. Soltys , 106 Mich.App. 341, 346, 308 N.W.2d 201 (1981), for the proposition that a presumption of a prescriptive easement arises only when the property has been used in excess of the statutory period by "many years," and concluded that because the shopping center parking lot had not been used adversely for "many years" more than 15, no such presumption arose in this case. Marlette , unpub. op. at 3.
We granted plaintiff's application for leave to appeal, asking the parties to address "whether open, notorious, adverse, and continuous use of property for at least fifteen years creates a prescriptive easement that is an easement appurtenant, without regard to whether the owner of the dominant estate took legal action to claim the easement." Marlette Auto Wash, LLC v. Van Dyke SC Props., LLC , 500 Mich. 950, 891 N.W.2d 230 (2017).
II. ANALYSIS
Whether a predecessor in title to a dominant estate is required to take legal action to claim a prescriptive easement in order to create an easement appurtenant is a question of law, which we review de novo. See Beach v. Lima Twp. , 489 Mich. 99, 106, 802 N.W.2d 1 (2011). Moreover, an action to quiet title is an equitable action that we also review de novo. Id .
The adverse-possession statute, first codified in 1846, has a long pedigree in Michigan law. MCL 600.5801 provides in relevant part:
No person may bring or maintain any action for the recovery or possession of any lands or make any entry upon any lands unless, after the claim or right to make the entry first accrued to himself or to someone through whom he claims, he commences the action or makes the entry within the periods of time prescribed by this section.
* * *
(4) In all other cases under this section, the period of limitation is 15 years.
The elements of adverse possession are also well established. A party claiming adverse possession must show clear and cogent proof of possession that is actual, continuous, open, notorious, exclusive, hostile, and uninterrupted for the relevant statutory period. Yelverton v. Steele , 40 Mich. 538, 542 (1879) ; Vanden Berg v. De Vries , 220 Mich. 484, 486, 190 N.W. 226 (1922) ; Beach , 489 Mich. at 106, 802 N.W.2d 1. When the elements of adverse possession have been met, " 'the law presumes that the true owner, by his acquiescence, has granted the land, or interest to the land, so held adversely.' " Marr v. Hemenny , 297 Mich. 311, 314, 297 N.W. 504 (1941), quoting Turner v. Hart , 71 Mich. 128, 138, 38 N.W. 890 (1888). See also Smith v. Dennedy , 224 Mich. 378, 384, 194 N.W. 998 (1923) (concluding that, after 17 years of use, "[t]he statutory period having run, the prescriptive right ripened").
Just as ownership of land may be acquired through adverse possession, so too may an easement be acquired through prescription. Outhwaite v. Foote , 240 Mich. 327, 330-331, 215 N.W. 331 (1927). "The elements necessary to give rise to a prescriptive right are the same as those of title by adverse possession, with the exception that it does not have to be exclusive."
St. Cecelia Society v. Universal Car & Serv. Co. , 213 Mich. 569, 576, 182 N.W. 161 (1921) ; see also Barbaresos v. Casaszar , 325 Mich. 1, 8, 37 N.W.2d 689 (1949) ; Matthews , 288 Mich.App. at 37, 792 N.W.2d 40.
If "no single period" of adverse use amounts to the 15-year statutory period, a party claiming a prescriptive interest may tack the possessory periods of their predecessors in interest "to aggregate the 15-year period of prescription" if the claimant can show privity of estate.
Stewart v. Hunt , 303 Mich. 161, 164, 5 N.W.2d 737 (1942) ; see also von Meding v. Strahl , 319 Mich. 598, 614, 30 N.W.2d 363 (1948). Privity of estate may only be established in very limited circumstances. The first is when the deed includes a description of the disputed property. Arduino v. Detroit , 249 Mich. 382, 384, 228 N.W. 694 (1930). The second circumstance occurs when there is an actual transfer or conveyance of the disputed property by parol statements made at the time of conveyance. Sheldon v. Mich. C. R. Co. , 161 Mich. 503, 509-510, 126 N.W. 1056 (1910) ; Gregory v. Thorrez , 277 Mich. 197, 201, 269 N.W. 142 (1936). Lastly, a parol transfer may occur if a property owner is "well-acquainted" with the previous property owner and had visited and used the disputed property "for many years" before acquiring title. Under those circumstances, "the parties must have understood that an easement was appurtenant to the land[.]" von Meding v. Strahl , 319 Mich. at 615, 30 N.W.2d 363.
Defendant contends that plaintiff's prescriptive easement claim fails because plaintiff has not used defendant's property for 15 years and cannot establish privity of estate. However, Michigan caselaw makes clear that a claimant seeking to prove the existence of a prescriptive easement may establish that the requisite elements were met by the claimant's predecessor in interest. When a prescriptive easement vests with the claimant's predecessors in interest, the easement is appurtenant and transfers to subsequent owners in the property's chain of title without the need for the subsequent owner to establish privity of estate.
In Wortman , 217 Mich. 554, 187 N.W. 326, La Vern Wortman and George Stafford each owned adjoining 40-acre parcels. The defendant's property had previously belonged to his father, Jonathan Stafford, and for 40 years or so Jonathan Stafford crossed the plaintiff's property in order to access the highway. Jonathan Stafford paid the previous owner $50 for a right of passage, but no writing existed to establish the nature of the right. The plaintiff filed suit to quiet title to the property, claiming that the use was "a life lease or mere license," which could not ripen into a prescriptive easement. Id . at 557, 187 N.W. 326. The defendant, on the other hand, claimed that the use was a contractually secured right of way "perfected by prescription" that passed with the property. Id . at 556, 187 N.W. 326.
The Wortman Court held that the facts indicated "an easement rather than a lease or a license." Id . at 559, 187 N.W. 326. Quoting Berkey & Gay Furniture Co. v. Valley City Milling Co. , 194 Mich. 234, 242, 160 N.W. 648 (1916), the Court stated that " 'the open, notorious, continuous[,] and adverse use across the land of another' " for the requisite period of limitations " 'afford[ed] a conclusive presumption of a written grant of such way....' " Wortman , 217 Mich. at 559, 187 N.W. 326. Moreover, " 'when the passway has been used for something like a half century, it is unnecessary to show by positive testimony that the use was claimed as a matter of right, but that after such use[ ] the burden is on the plaintiff to show that the use was only permissive.' " Id ., quoting Berkey , 194 Mich. at 242, 160 N.W. 648. The Wortman Court agreed with the trial court that the plaintiff failed to show that the defendant's use was merely permissive.
The plaintiff next argued that the defendant could not tack the defendant's period of use to that of his predecessor in interest, Jonathan Stafford. The Court rejected the claim that the defendant was required to establish privity of estate, holding:
The question of the continuity of possession and use[ ] by successive holders in privity to sustain title by prescription is not involved here. The statute of limitations had run its course in his favor long before the elder Stafford died. Like peaceable possession and use[ ] continued thereafter by his successors as of right , and not of suffrance was but confirmatory of his established easement. [ Wortman , 217 Mich. at 560, 187 N.W. 326 (emphasis added).]
In Haab , 332 Mich. 126, 50 N.W.2d 856, four property owners filed suit to prevent the defendants from blocking an alley that ran behind the plaintiffs' properties. The trial court denied injunctive relief. On appeal, this Court reversed the trial court, concluding that the plaintiffs had easements in the alley. Regarding three of the property owners, the Court held that the defendants were estopped from denying a right of way appurtenant to their properties in the alley, given that the deeds of the property owners indicated that their land was bounded by a private alley or passageway.
Concerning the fourth property owner, Peter Karson, the Court held that he possessed a prescriptive easement in the alley, explaining:
The trial court in its opinion refers to the case of Zemon v. Netzorg , 247 Mich. 563 [226 N.W. 242 (1929) ] which held that one might not tack his adverse holdings for less than the prescriptive period of 15 years, even if the predecessor's holdings are shown to be adverse, if there is no conveyance to him or in his chain of title purporting to convey such an easement. One Adam Schaner, however, held the Karson parcels for more than 30 years and so established in his own name a valid easement without tacking . Once established, the right-of-way was an easement appurtenant and therefore passed by the deed of the dominant estate although not expressly mentioned in the instrument of transfer, and even without the word "appurtenances." [ Haab , 332 Mich. at 143-144, 50 N.W.2d 856 (emphasis added).]
The Court noted that the testimony of elderly witnesses established that the alley had been used by the dominant estates "the entire time they were owned by Schaner, as well as continuously up to the present time." Id . at 144, 50 N.W.2d 856. Citing Berkey & Gay FurnitureCo. , the Court held that because the alley had been "used openly and notoriously for over a quarter of a century," the plaintiff was not required to prove that that the use was claimed as a matter of right. Id . Rather, "the burden would be on the [defendants] to show that the use was only permissive." Id . Because "the alley had been used continuously, openly, and notoriously," the alley "became an appurtenant easement to the Schaner properties," and the alley was "used by Karson and his predecessors in title as a matter of right , not by permissive use...." Id . at 145, 50 N.W.2d 856 (emphasis added).
It is evident that, under both Wortman and Haab , when a claimant can demonstrate that a predecessor-in-interest met the requirements for the establishment of a prescriptive easement, the vested easement transfers to subsequent property owners in the chain of title without the obligation to show privity of estate. Wortman and Haab also hold that, when the property has been adversely used in excess of the prescriptive period for a substantial period of time, the burden shifts to the servient estate owner to show that the use was merely permissive. We reaffirm these principles in this case.
The Court of Appeals purported to rely on Reed , 106 Mich.App. 341, 308 N.W.2d 201, as support for its holding that plaintiff was required to show privity of estate because "a presumption of a prescriptive easement" may arise when property has been used in excess of the prescriptive period by " 'many years.' " Marlette , unpub op. at 3, quoting Reed , 106 Mich.App. at 346, 308 N.W.2d 201. Not only is this conclusion inconsistent with the plain language of MCL 600.5801(4), Reed simply does not stand for that proposition. Reed , citing Haab , articulated the same burden shifting that was expressed in both Haab and Wortman :
Mutual or permissive use of an area will not mature into a prescriptive easement unless the period of mutuality ends and adverse use continues for the statutory period. However, when use has been in excess of the prescriptive period by many years, a presumption of a grant arises and the burden shifts to the servient estate owner to show that use was merely permissive. [ Reed , 106 Mich.App. at 346, 308 N.W.2d 201 (citations omitted).]
As noted in both Wortman and Haab , the fact that property has been used in excess of the prescriptive period for "many years" is not pertinent to whether the requirements of a prescriptive easement have been met; nor is it germane to whether the proponent of the easement is required to establish privity of estate with a predecessor in the proponent's chain of title under whose ownership a prescriptive easement had vested. Rather, when the parties seek a judicial determination conclusively settling their respective property interests, and the proponent of the alleged easement provides evidence that the easement has been used in excess of the 15-year prescriptive period by "many years," the burden of production is then shifted to the opponent of the easement to establish that the use was merely permissive. See Berkey & Gay Furniture Co. , 194 Mich. 234, 160 N.W. 648 ; Wortman , 217 Mich. 554, 187 N.W. 326 ; Engleman v. Kalamazoo , 229 Mich. 603, 201 N.W. 880 (1925) ; Outhwaite , 240 Mich. 327, 215 N.W. 331 ; Beechler v. Byerly , 302 Mich. 79, 4 N.W.2d 475 (1942) ; Haab , 332 Mich. 126, 50 N.W.2d 856 ;
Myer v. Franklin Hotel Co. , 354 Mich. 552, 93 N.W.2d 224 (1958) ; Loehr v. Cochran , 14 Mich.App. 345, 347, 165 N.W.2d 485 (1968) ("The essence of this presumption is that long-standing use of another's property, e.g., over 50 years, shifts the burden to the defendant-owner, to show the use was permissive."); Widmayer v. Leonard , 422 Mich. 280, 290, 373 N.W.2d 538 (1985) (holding that the burden of persuasion concerning a prescriptive easement remains with the claimant throughout trial; however, after many years of use, the burden of producing evidence shifts to the opponents of the easement to establish that the claimant's use was merely permissive).
The Court of Appeals' alternative rationale for rejecting plaintiff's claim is equally without merit. Quoting Gorte v. Dep't of Transp. , 202 Mich.App. 161, 507 N.W.2d 797 (1993), the Court of Appeals held that the person claiming a prescriptive easement must "act on the purported acquired right" because " 'the expiration of the period of limitation terminates the title of those who slept on their rights and vests title in the party claiming adverse possession.' " Marlette , unpub. op. at 3, quoting Gorte , 202 Mich.App. at 168, 507 N.W.2d 797. In the Court of Appeals' view, plaintiff's claim failed because "[i]t is undisputed that no previous owner of the car wash asserted a claim of prescriptive easement with regard to defendant's property." Id . (emphasis added).
It is not clear why the Court of Appeals believes a prior property owner must have previously asserted a prescriptive easement claim in order for a prescriptive easement to vest, because, if a prior property owner had successfully asserted a prescriptive easement claim, marketable title of record as a result of the previous judicial decree would already exist for the property, and the current property owner would have no reason to file a lawsuit seeking to establish record title to the property by prescriptive easement. See Escher v. Bender , 338 Mich. 1, 8, 61 N.W.2d 143 (1953). Moreover, nothing in Gorte requires that a prior property owner assert a legal claim in order for a prescriptive easement to vest. In Gorte , the defendant argued that the plaintiffs' title to the land did not vest upon the expiration of the period of limitations but, instead, plaintiffs' possession of the property simply gave the plaintiffs the ability "to raise the expiration of the period of limitation as a defense to defendant's assertion of title." Gorte , 202 Mich.App. at 168, 507 N.W.2d 797. The Gorte panel concluded:
Contrary to defendant's arguments, however, Michigan courts have followed the general rule that the expiration of the period of limitation terminates the title of those who slept on their rights and vests title in the party claiming adverse possession. Thus, assuming all other elements have been established, one gains title by adverse possession when the period of limitation expires, not when an action regarding the title to the property is brought. [ Id . at 168-169, 507 N.W.2d 797 (citations omitted).]
Therefore, that portion of Gorte quoted by the Court of Appeals simply describes the general effect of an adverse-possession claim, assuming that all the other elements have been established. It does not stand for the proposition that a party must file a legal claim for title to vest by adverse possession. The final sentence of the quoted Gorte language specifically provides otherwise: one gains title by adverse possession when the period of limitations expires, not when an action regarding the title to the property is brought. Furthermore, as this Court has explained, an adverse possessor acquires legal title to property when the statutory period ends, but that title is neither recorded nor marketable until the property interest is established by judicial decree:
This Court has long recognized the common law doctrine of adverse possession, which the Legislature has since codified. To establish adverse possession, the party claiming it must show "clear and cogent proof of possession that is actual, visible, open, notorious, exclusive, continuous and uninterrupted for the statutory period of 15 years, hostile and under cover of claim of right." After the statutory period ends, the record owner's title is extinguished and the adverse possessor acquires "legal title" to the property. Acquisition of title in this manner includes "the right to defend the possession and to protect the property against the trespass of all others." However, the title acquired by adverse possession is neither record title nor marketable title until the adverse possessor files a lawsuit and obtains a judicial decree . Thus, until an adverse possessor obtains the necessary judicial decree, there is no record of the adverse possessor's ownership interest to verify whether the possessor actually satisfied the elements of adverse possession. [ Beach , 489 Mich. at 106-107, 802 N.W.2d 1 (emphasis added; citations omitted).]
In urging the correctness of the Court of Appeals opinion, defendant argues that, if this Court does not require a prior property owner to take legal action to claim a prescriptive easement, the law would recognize the existence of "secret" easements not apparent to the purchaser of the servient estate. Defendant, having enjoyed the beneficial use of the parking lot access to the car wash, certainly has no legitimate argument that the claimed easement was in any way "secret." Moreover, in order for plaintiff to successfully establish a prescriptive easement, plaintiff must show clear and cogent proof of possession that is actual, continuous, open, notorious, hostile, and uninterrupted for the relevant statutory period. " 'The possession must be so open, visible, and notorious as to raise the presumption of notice to the world that the right of the true owner is invaded intentionally, and with the purpose to assert a claim of title adversely to his, so that if the true owner remains in ignorance it is his own fault .' " Ennis v. Stanley , 346 Mich. 296, 301, 78 N.W.2d 114 (1956), quoting McVannel v. Pure Oil Co. , 262 Mich. 518, 525-526, 247 N.W. 735 (1933) (emphasis added). See also Doctor v. Turner , 251 Mich. 175, 186, 231 N.W. 115 (1930).
Thus, the very claim that plaintiff is required to prove by clear and cogent proof militates against ancient prescriptive easements arising under clandestine circumstances. Moreover, defendant's specter of secret prescriptive easements that "spring to life" many decades after their purported creation are allayed by existing legal principles. A prescriptive easement is extinguished after 15 years of nonuse by the owner of the dominant estate, without the servient estate being required to prove that its possession was hostile or adverse. McDonald v. Sargent , 308 Mich. 341, 344, 13 N.W.2d 843 (1944). Furthermore, a purchaser who did not know about the existence of a claim of title will be regarded as a bona fide purchaser without notice if the land is not adversely held by a party in possession at the time of purchase. See Russell v. Sweezey , 22 Mich. 235, 238-239 (1871). A bona fide purchaser "takes the property free from, and not subject to," the rights or interests of a third party. 1 Cameron, Michigan Real Property Law (3d ed.) § 11.21, p. 396.
III. CONCLUSION
Michigan caselaw establishes that the open, notorious, adverse, and continuous use of property for the relevant statutory period creates a prescriptive easement that is appurtenant, without the need for the claimant to show privity of estate with the prior owner. Wortman , 217 Mich. 554, 187 N.W. 326 ; Haab , 332 Mich. 126, 50 N.W.2d 856. Moreover, the prior owner of the dominant estate is not required to take legal action to claim the easement in order for a vested prescriptive easement to exist. Because the Court of Appeals erred by concluding otherwise, we reverse the judgment of Court of Appeals in part and remand to that Court for consideration of any remaining appellate issues.
Stephen J. Markman, C.J., Brian K. Zahra, Bridget M. McCormack, David F. Viviano, Richard H. Bernstein, JJ., concur.
Clement, J., took no part in the decision of this case.
Initially, the period of limitations was 20 years. See 1846 RS, ch. 139, § 1; 1857 CL 5350. The 15-year period of limitations was first adopted in 1863. See 1863 PA 227, § 1.
The panel also cited Siegel v. Renkiewicz' Estate , 373 Mich. 421, 425, 129 N.W.2d 876 (1964), to support its holding that tacking cannot occur without privity of estate. While it is certainly true that tacking cannot occur without privity of estate, Siegel has no application to the present case. In Siegel , the Court held that plaintiff's prescriptive-easement claim failed because "neither plaintiff nor any of his predecessors in title enjoyed possession or use[ ] of the parcels in question for the necessary 15-year period," and no proof was offered regarding privity of estate. Id . at 425-426, 129 N.W.2d 876. Siegel did not hold that privity of estate was required in a case like this, where it is claimed that a prescriptive easement vested under a claimant's predecessors in interest. | [
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] |
On order of the Court, the application for leave to appeal the August 8, 2017 judgment of the Court of Appeals is considered. We direct the Clerk to schedule oral argument on whether to grant the application or take other action. MCR 7.305(H)(1).
The appellants shall file a supplemental brief within 42 days of the date of this order addressing: (1) whether the defendants' home is a "modular home" as defined by Timber Ridge Bay's "Declaration of Restrictions, Covenants and Conditions"; and (2) if so, whether the violation was a technical violation that did not cause substantial injury, Cooper v. Kovan , 349 Mich. 520, 530, 84 N.W.2d 859 (1957). In addition to the brief, the appellants shall electronically file an appendix conforming to MCR 7.312(D)(2). In the brief, citations to the record must provide the appendix page numbers as required by MCR 7.312(B)(1). The appellees shall file a supplemental brief within 21 days of being served with the appellants' brief. The appellees shall also electronically file an appendix, or in the alternative, stipulate to the use of the appendix filed by the appellants. A reply, if any, must be filed by the appellants within 14 days of being served with the appellees' brief. The parties should not submit mere restatements of their application papers.
The Modular Home Builders Association is invited to file a brief amicus curiae. Other persons or groups interested in the determination of the issues presented in this case may move the Court for permission to file briefs amicus curiae. | [
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On order of the Court, the application for leave to appeal the August 21, 2017 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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O'Connell, J.
Plaintiff, Sarah Lynn Nortley, appeals as of right the trial court's grant of defendants' motion for summary disposition pursuant to MCR 2.116(C)(7) (statute of limitations). Nortley challenges the trial court's conclusion that the six-year statutory period of repose barred her claim because the statute of repose went into effect after her claim accrued. We affirm.
I. FACTUAL AND PROCEDURAL BACKGROUND
Nortley retained defendant Dennis Hurst, of the law firm Dennis Hurst & Associates, in August 2008 to represent her in a divorce proceeding. Defendant Michael Rosenthal was also a member of the firm. The judgment of divorce, entered on June 12, 2009, contained a provision terminating representation 21 days after the date of entry of the judgment.
The divorce became final 11 days before the tenth anniversary of the marriage. A person can claim Social Security benefits through a former spouse if the marriage lasted ten years or more. Nortley alleged that she learned about this rule on September 5, 2015, during a conversation with her mother.
Nortley brought a legal malpractice claim against defendants on January 15, 2016. Nortley contended that defendants failed to advise her that Social Security benefits were only available to a former spouse if the marriage lasted ten years or more.
Defendants Hurst and the law firm denied the allegations of malpractice, maintaining that they fully advised Nortley about all aspects of the divorce. Defendant Rosenthal answered separately to deny the allegations because he only attended one court hearing on behalf of Hurst and did not participate in advising Nortley about the divorce.
Defendants moved for summary disposition under MCR 2.116(C)(7), arguing that two statutes of limitations, MCL 600.5805(1) and (6) and MCL 600.5838(2), and a statute of repose, MCL 600.5838b, barred Nortley's malpractice claim. Nortley opposed the motion, arguing that she brought the action within the statutory period of limitations because she filed it within six months of discovering the basis for the claim. Nortley contested defendants' invocation of the statute of repose because it went into effect after the cause of action accrued and did not apply retroactively. Finally, Nortley argued, retroactive application of the statute of repose violated her right to due process because the statutory period expired before she knew about the basis of the malpractice claim. The trial court concluded that the statute of repose barred Nortley's claim and granted defendants' motion for summary disposition.
II. STANDARD OF REVIEW
We review de novo a trial court's decision to grant summary disposition. Nuculovic v. Hill , 287 Mich.App. 58, 61, 783 N.W.2d 124 (2010). This Court also reviews de novo the trial court's application of a statute of limitations, Stephens v. Worden Ins. Agency, LLC , 307 Mich.App. 220, 227, 859 N.W.2d 723 (2014), and whether a statute is constitutional, Stevenson v. Reese , 239 Mich.App. 513, 516, 609 N.W.2d 195 (2000).
Summary disposition under MCR 2.116(C)(7) is appropriate when a statute of limitations bars the claim. Nuculovic , 287 Mich.App. at 61, 783 N.W.2d 124. This Court accepts a plaintiff's allegations as true and considers all admissible evidence to decide whether the plaintiff has presented a genuine issue of material fact. Id.
The primary goal of statutory interpretation is to effectuate the Legislature's intent by applying the plain language of the statute. Klooster v. Charlevoix , 488 Mich. 289, 296, 795 N.W.2d 578 (2011). If the statute is clear and unambiguous, we apply it as written. USAA Ins. Co. v. Houston Gen. Ins. Co. , 220 Mich.App. 386, 389, 559 N.W.2d 98 (1996). If the statute is ambiguous, "judicial construction is appropriate." Id . at 389-390, 559 N.W.2d 98. This Court construes statutes of limitations and repose to promote the policy of protecting defendants from stale claims. Frankenmuth Mut. Ins. Co. v. Marlette Homes, Inc. , 456 Mich. 511, 515, 573 N.W.2d 611 (1998).
III. ANALYSIS
A professional malpractice claim accrues when the professional stops serving the plaintiff in a professional capacity on the matter giving rise to the claim. MCL 600.5838(1). A plaintiff must bring a malpractice action within two years of accrual of the claim, MCL 600.5805(1) and (6), or within six months of when he or she discovered or should have discovered the claim, MCL 600.5838(2), whichever is later. An action for legal malpractice, however, must be commenced within six years of the act or omission giving rise to the claim or before expiration of the period of limitations in MCL 600.5805, whichever period is earlier. MCL 600.5838b(1). This six-year statutory period of repose went into effect on January 2, 2013. 2012 PA 582.
In this case, the claim accrued on July 3, 2009, when defendants' representation ceased 21 days after entry of the judgment of divorce. Nortley filed her complaint on January 15, 2016, beyond both the two-year period of limitations and the six-year period of repose. Nortley argues that the statute of repose does not apply retroactively to bar her claim because the Legislature enacted it after the claim accrued and did not provide for retroactive application. Accordingly, Nortley contends, the complaint was timely because she filed it within six months of discovering the existence of the claim. We disagree.
Legislative intent governs whether a statute applies retroactively or prospectively only. Frank W. Lynch & Co. v. Flex Technologies, Inc. , 463 Mich. 578, 583, 624 N.W.2d 180 (2001). Generally, a new or amended statute applies prospectively unless the Legislature clearly and unequivocally intends for the statute to have retroactive effect. Davis v. State Employees' Retirement Bd. , 272 Mich.App. 151, 155-156, 725 N.W.2d 56 (2006). Reference to events that have already occurred "does not require a finding that the statute operates retroactively."
Id . at 156, 725 N.W.2d 56. An exception to the general rule presuming retroactive application only is a statute that is remedial or procedural in nature and whose retroactive application will not deny vested rights. Id . at 158, 725 N.W.2d 56.
The enactment of the statute of repose did not deny Nortley a vested right. Nortley's legal malpractice claim accrued in July 2009. When the statute of repose went into effect on January 2, 2013, Nortley still had more than two years to bring a timely claim within the six-year period of repose. Thus, the amended legislation did not prevent Nortley from filing a timely claim. This circumstance distinguishes this case from cases examining the immediately preclusive effect of a newly enacted statute of limitations. See, e.g., Davis , 272 Mich.App. at 166, 725 N.W.2d 56 (noting that a new one-year deadline immediately precluded the plaintiff's existing claim). Accordingly, we apply the statute of repose as written to Nortley's then viable claim to conclude that her complaint was untimely.
Nortley's discovery of the claim after the six-year period of repose does not alter this conclusion. Unlike a statute of limitations, a statute of repose bars a claim after a fixed period of time from the defendant's act or omission and may prevent accrual of a claim even if the injury happens after the statutory period has expired. Frank v. Linkner , 500 Mich. 133, 142, 894 N.W.2d 574, 579-580 (2017). The statute setting the deadlines for bringing a legal malpractice claim makes clear that the six-year period of repose caps the time for bringing a claim within six months of discovery. See MCL 600.5838b(1). Therefore, the trial court did not err by granting defendants' motion for summary disposition.
We also reject Nortley's argument that retroactive application of the statute of repose to bar her claim violates due process. A statute comports with due process if it "bears a reasonable relation to a permissible legislative objective." Trentadue v. Buckler Automatic Lawn Sprinkler Co. , 479 Mich. 378, 404, 738 N.W.2d 664 (2007) (quotation marks and citation omitted).
Nortley relies on Price v. Hopkin , 13 Mich. 318 (1865), and O'Brien v. Hazelet & Erdal , 410 Mich. 1, 299 N.W.2d 336 (1980), to support her argument. In Price , 13 Mich. at 322-323, 325, 328, the Supreme Court held that the enactment of a statute shortening the adverse possession period from 20 years to 15 years deprived the plaintiff of due process by immediately barring the plaintiff's claim. In O'Brien , 410 Mich. at 14-16, 299 N.W.2d 336, the Supreme Court concluded that a six-year period of repose for claims against architects and engineers did not violate due process when it prevented the plaintiffs from bringing claims that accrued after six years. The Supreme Court reasoned that the statute of repose balanced interests in protecting architects and engineers from unlimited liability and redressing plaintiffs' injuries. Id . at 16, 299 N.W.2d 336.
Likewise, in this case, the statute of repose reflects the reasonable legislative purpose of protecting professionals from stale claims. See Frankenmuth Mut. Ins. Co. , 456 Mich. at 515, 573 N.W.2d 611. Moreover, unlike Price , 13 Mich. at 326, enactment of the six-year period of repose did not immediately extinguish Nortley's claim. Therefore, application of the statute of repose to Nortley's claim did not violate due process.
We affirm.
Talbot, C.J., and O'Brien, J., concurred with O'Connell, J.
20 CFR 404.331(a)(2) (2017). The regulation contains additional requirements for a person to claim Social Security benefits through a former spouse. 20 CFR 404.331(b) through (f) (2017). Among other requirements, the claimant is not entitled to a former spouse's benefit if the claimant is remarried or if the claimant is entitled to a benefit greater than the former spouse's benefit. 20 CFR 404.331(c) and (e) (2017). | [
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On order of the Court, the motion for immediate consideration is GRANTED. The application for leave to appeal the July 18, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court.
I, Larry S. Royster, Clerk of the Michigan Supreme Court, certify that the foregoing is a true and complete copy of the order entered at the direction of the Court. | [
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On order of the Court, the application for leave to appeal the July 13, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the August 17, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the August 17, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the October 18, 2017 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the November 9, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the August 22, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the October 17, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the October 17, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the September 22, 2017 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the September 12, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the August 15, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the August 14, 2017 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the July 31, 2017 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the July 20, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the July 13, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the application for leave to appeal the May 18, 2017 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the application for leave to appeal the May 12, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D).
WILDER , J., did not participate because he was on the Court of Appeals panel. | [
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On order of the Court, the application for leave to appeal the March 29, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). The motion to default appellee is DENIED. | [
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On order of the Court, the motion to amend the application for leave to appeal is GRANTED. The application for leave to appeal the April 4, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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On order of the Court, the motion for reconsideration of this Court's November 29, 2017 order is considered, and it is DENIED, because it does not appear that the order was entered erroneously. | [
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On order of the Chief Justice, the motion of defendant-appellant to extend the time for filing his supplemental brief is GRANTED. The supplemental brief will be accepted as timely filed if submitted on or before June 1, 2018. | [
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On order of the Court, the application for leave to appeal the November 23, 2016 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D).
WILDER, J. , did not participate because he was on the Court of Appeals panel. | [
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On order of the Court, the motion for reconsideration of this Court's November 29, 2017 order is considered, and it is DENIED, because it does not appear that the order was entered erroneously. | [
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Swartzle, J.
This Court is asked again to determine the character of a rather protean actor under Michigan tax law, the "unitary business group." The group has no independent existence outside of tax law, unlike, for example, a partnership or corporation. It is a recent creation of tax law, and its definition has changed markedly since inception.
In this appeal, petitioner D'Agostini Land Company, LLC, as the representative member of a unitary business group, claims that it should be treated as a unified taxpayer for purposes of the Michigan Business Tax Act's small business alternative credit. Because "unitary business group" is not listed as a type of taxpayer subject to certain disqualifications, the group should be able to claim the credit notwithstanding the fact that one of its members would otherwise trigger one of the disqualifications. Respondent Department of Treasury disagrees and points to its published guidance that explains that each member of the unitary business group is subject to the disqualifying provisions. To grasp how to apply the credit and its disqualifying provisions to a unitary business group, the plain, ordinary meaning of the statutory text is sufficient, although our conclusion is strengthened by applying a common canon of statutory construction. As explained here, we agree with petitioner and reverse.
I. BACKGROUND
Central to this appeal is how the Michigan Business Tax Act's (MBT) small business alternative credit applies to a specific type of taxpayer-unitary business group.
It will be helpful, therefore, to review the credit's history under Michigan tax law, as well as the state's relatively recent adoption and modification of the unitary-business-group concept.
A. THE SMALL BUSINESS ALTERNATIVE CREDIT UNDER MICHIGAN TAX LAW
Given the importance of small businesses to the state's economy, Michigan has historically provided tax credits for qualifying small businesses. Beginning in the late 1970s, Michigan offered a form of the following credit under the state's Single Business Tax Act (SBT):
(2) The credit provided in this section shall be taken before any other credit under this act, and is available to any person whose gross receipts do not exceed ... $10,000,000.00 for tax years commencing after 1991, and whose adjusted business income minus the loss adjustment does not exceed $475,000.00 for tax years commencing on or after January 1, 1985, subject to the following:
(a) An individual, a partnership, or a subchapter S corporation is disqualified if the individual, any 1 partner of the partnership, or any 1 shareholder of the subchapter S corporation receives more than ... $115,000.00 for tax years commencing after December 31, 1997 as a distributive share of the adjusted business income minus the loss adjustment of the individual, the partnership, or the subchapter S corporation.
(b) A corporation other than a subchapter S corporation is disqualified if either of the following occur for the respective tax year: [various adjustments not relevant here]. [ MCL 208.36, repealed by 2006 PA 325 (emphasis added).]
Effective January 2008, Michigan repealed the SBT and replaced it with the MBT. The MBT also included a small business alternative credit in substantially the same form as the prior one, though it was updated, among other ways, to include limited liability companies among those taxpayers that may be disqualified from taking the credit:
(1) The credit provided in this section shall be taken after the credits under sections 403 and 405 and before any other credit under this act and is available to any taxpayer with gross receipts that do not exceed $20,000,000.00 and with adjusted business income minus the loss adjustment that does not exceed $1,300,000.00 as adjusted annually for inflation using the Detroit consumer price index and subject to the following:
(a) An individual, a partnership, a limited liability company, or a subchapter S corporation is disqualified if the individual, any 1 partner of the partnership, any 1 member of the limited liability company, or any 1 shareholder of the subchapter S corporation receives more than $180,000.00 as a distributive share of the adjusted business income minus the loss adjustment of the individual, the partnership, the limited liability company, or the subchapter S corporation.
(b) A corporation other than a subchapter S corporation is disqualified if either of the following occur for the respective tax year: (i) Compensation and directors' fees of a shareholder or officer exceed $180,000.00. (ii) The sum of the following amounts exceeds $180,000.00: [various adjustments not relevant here]. [ MCL 208.1417 (emphasis added).]
The MBT was not long for the tax world, and the state replaced it just four years later with the Corporate Income Tax (CIT). 2011 PA 38, effective January 2012. As with prior tax acts, the current CIT includes a credit for qualifying small businesses:
(1) The credit provided in this section shall be taken before any other credit under this part and is available to any taxpayer, other than those taxpayers subject to the tax imposed under chapter 12 or 13, with gross receipts that do not exceed $20,000,000.00 and with adjusted business income minus the loss adjustment that does not exceed $1,300,000.00 as adjusted annually for inflation using the Detroit consumer price index, and subject to the following:
(a) A corporation or unitary business group is disqualified if either of the following occurs for the respective tax year:
(i) Compensation and directors' fees of a shareholder or officer exceed $180,000.00.
(ii) The sum of the following amounts exceeds $180,000.00: [various adjustments not relevant here]. [ MCL 206.671 (emphasis added).]
B. UNITARY BUSINESS GROUP AS A "TAXPAYER" UNDER MICHIGAN TAX LAW
One key difference between the CIT's small business alternative credit and those in the SBT and MBT is the CIT's inclusion of the term "unitary business group" among the taxpayers that may be disqualified from taking the credit. A unitary business group is not a separate and distinct legal entity, like a corporation, limited liability company, or partnership; rather, the group is purely a creation of tax law. In general, a unitary business group is a group of related U.S. persons whose business activities are sufficiently interdependent. MCL 206.611(6) (CIT) ; MCL 208.1117(6) (MBT). To qualify as a unitary business group, one member of the proposed group must own or control more than 50% of the other members and there must be a sufficient connection between the members to meet one of two relationship tests. MCL 206.611(6) (CIT) ; MCL 208.1117(6) (MBT). If a group of businesses qualifies as a unitary business group in a particular tax year, then the group must file a unitary tax return for that year. MCL 206.691(1) (CIT) ; MCL 208.1511 (MBT). Michigan, like several other states, has adopted the unitary-business-group concept in an effort to measure more accurately the related group's taxable activities in the state.
Unitary business groups were not taxed as such under the SBT. When it enacted the MBT, the Legislature added "unitary business group" to the list of persons who qualify as a "taxpayer" under state law. MCL 208.1117(5). Membership in a unitary business group was open to individuals as well as a wide range of legal entities, including corporations, limited liability companies, and partnerships. MCL 208.1117(6) and (7). With the CIT, the Legislature retained the concept of a "unitary business group" in the definition of a "taxpayer," but it restricted membership in such a group to corporations, insurance companies, and financial institutions. MCL 206.611(6).
C. TREASURY DISALLOWS CREDIT CLAIMED BY UNITARY BUSINESS GROUP
In this tax dispute, the unitary-business-group taxpayer (represented by petitioner D'Agostini Land Company, LLC (D'Agostini)) and the Department of Treasury (Treasury) disagree on whether a unitary business group is subject to the disqualifying provision of the MBT's small business alternative credit. The following facts are not in dispute: D'Agostini is the designated representative of a unitary business group that filed returns under the MBT in 2009, 2010, and 2011. The group claimed a small business alternative credit under the MBT in 2009 and 2010. In neither year did the group's gross receipts exceed $20,000,000, nor did the group's adjusted net income exceed $1,300,000. One of its members, a Subchapter S corporation, did receive more than $180,000 as a distributive share of the adjusted net business income. Consistent with its then-published guidance, Treasury disallowed the credit because, in its view, no member of a unitary business group could violate the disqualifying provision in MCL 208.1417(1)(a) and (b) and claim the credit, even though the term "unitary business group" is not itself listed as a type of taxpayer that may be disqualified from taking the credit. See Treasury's MBT FAQs, at C41. Treasury adjusted the group's 2009 and 2010 returns, which resulted in an adjustment to the 2011 return as well; the adjustments added taxes due by the group as well as late penalties and interest.
On behalf of the group, D'Agostini appealed Treasury's decision to the Tax Tribunal (the Tribunal). On cross-motions for summary disposition, the Tribunal affirmed Treasury's decision with respect to the adjustments as well as to the late penalties and interest. D'Agostini moved for reconsideration, arguing that the group should have been reevaluated under this Court's decision in LaBelle Mgt., Inc v. Dep't of Treasury , 315 Mich.App. 23, 888 N.W.2d 260 (2016). The Tribunal denied the motion, concluding that the status of the unitary business group had never been at issue and that both parties had earlier acknowledged the status of the group.
D'Agostini appealed.
II. ANALYSIS
D'Agostini claims on appeal that the Tribunal erred in three separate ways. First, the Tribunal misread the plain language of the disqualifying provisions of the MBT's small business alternative credit. The provisions list five types of taxpayers that are subject to disqualification, and "unitary business group" is not one of them. Second, even if a unitary business group is subject to disqualification, the Tribunal should have allowed the group to take certain loss adjustments. Finally, according to D'Agostini, the Tribunal should have determined whether the group was even properly considered a unitary business group under this Court's recent decision in LaBelle Mgt.
A. STANDARD OF REVIEW
On appellate review, this Court defers to the Tribunal's factual findings supported by competent, material, and substantial evidence, but reviews de novo the Tribunal's legal conclusions, including its decision to grant summary disposition under MCR 2.116(C)(10) as well as its interpretation of a statute. Briggs Tax Serv., L.L.C. v. Detroit Pub. Sch. , 485 Mich. 69, 75, 780 N.W.2d 753 (2010). Summary disposition is appropriate under MCR 2.116(C)(10) when, except as to damages, "there is no genuine issue as to any material fact, and the moving party is entitled to judgment or partial judgment as a matter of law."
With respect to statutory interpretation, this Court is required to give effect to the Legislature's intent. Van Buren Co. Ed. Ass'n v. Decatur Pub. Sch. , 309 Mich.App. 630, 643, 872 N.W.2d 710 (2015). The Legislature is presumed to intend the meaning clearly expressed, and this Court must give effect to the plain, ordinary, or generally accepted meaning of the Legislature's terms. Lorencz v. Ford Motor Co , 439 Mich. 370, 376, 483 N.W.2d 844 (1992). "A statutory provision is ambiguous only if it irreconcilably conflicts with another provision, or when it is equally susceptible to more than a single meaning." People v. Fawaz , 299 Mich.App. 55, 63, 829 N.W.2d 259 (2012) (quotation marks and citation omitted). Only when ambiguity exists does the Court turn to common canons of construction for aid in construing a statute's meaning. People v. Borchard-Ruhland , 460 Mich. 278, 284-285, 597 N.W.2d 1 (1999).
B. SOME, BUT NOT ALL, "TAXPAYERS" ARE DISQUALIFIED FROM TAKING THE MBT'S SMALL BUSINESS ALTERNATIVE CREDIT
Although D'Agostini raises three claims of error, we begin and end our analysis with the first one. Under the MBT, a "taxpayer" is defined as "a person or a unitary business group liable for a tax, interest, or penalty under this act." MCL 208.1117(5). The act also includes a definition of a "unitary business group"-a group of related entities that satisfy specific control and relationship conditions. MCL 208.1117(6). The act goes on to define a "person" as "an individual, firm, bank, financial institution, insurance company, limited partnership, limited liability partnership, copartnership, partnership, joint venture, association, corporation, subchapter S corporation, limited liability company, receiver, estate, trust, or any other group or combination of groups acting as a unit." MCL 208.1113(3). Thus, individuals, partnerships, limited liability companies, corporations, and unitary business groups are all specifically identified as entities that, among others, may qualify as a taxpayer under the MBT.
With respect to the small business alternative credit, the MBT provides that the credit can be claimed by "any taxpayer" that has gross receipts not exceeding $20,000,000 and adjusted net income not exceeding $1,300,000. MCL 208.1417(1). The statute then makes the credit expressly "subject to" several disqualifying conditions:
(a) An individual, a partnership, a limited liability company, or a subchapter S corporation is disqualified if the individual, any 1 partner of the partnership, any 1 member of the limited liability company, or any 1 shareholder of the subchapter S corporation receives more than $180,000.00 as a distributive share of the adjusted business income minus the loss adjustment of the individual, the partnership, the limited liability company, or the subchapter S corporation.
(b) A corporation other than a subchapter S corporation is disqualified if either of the following occur for the respective tax year:
(i ) Compensation and directors' fees of a shareholder or officer exceed $180,000.00.
(ii ) The sum of the following amounts exceeds $180,000.00: [various adjustments not relevant here]. [ MCL 208.1417(1) (emphasis added).]
Thus, in terms of structure, the credit's language consists of a broad grant of the credit to "any taxpayer" that meets certain financial thresholds, followed by two limited exceptions or disqualifications related to entities that exceed other financial thresholds. The plain, logical way to read the statute is that the main provision applies at the "any taxpayer" level, and the disqualifying provisions that follow similarly (and consistently) apply at the taxpayer level-i.e., the entities listed in the disqualifying provisions are the types of taxpayers that may be disqualified from claiming the credit. Thus, it follows that if a particular type of taxpayer is not listed in the disqualifying provisions, then that type of taxpayer is not subject to disqualification based on the compensation of an owner or officer.
This reading is consistent with how Treasury treats most types of taxpayers in this situation. For example, in Letter Ruling 2013-3, Treasury was asked whether an irrevocable trust, a type of taxpayer, was subject to the credit's disqualifying provisions. Treasury explained that it was not: "An irrevocable trust is not listed as being subject to the disqualifiers or reduction percentages; therefore, irrevocable trusts are not subject to the disqualifiers or reduction percentages listed under MCL 208.1417(a) and (c). See Alliance Obstetrics & Gynecology, PLC v. Michigan Dep't of Treasury , 285 Mich.App. 284 [776 N.W.2d 160] (2009)." Michigan Department of Treasury, Letter Ruling 2013-3 (June 26, 2013), available at > [https://perma.cc/GX35-HQJE].
Treasury agrees with this reading as far as it goes, but then it asks this Court to go farther and infer that the disqualifying provisions also apply to a unitary business group made up of one or more of the listed entities (e.g., individuals, partnerships, limited liability companies, or corporations). We decline the invitation for several reasons. First, there is nothing on the face of the statute to suggest such a reading. Subsection (1) refers broadly to "any taxpayer," followed immediately by Subdivisions (a) and (b), which list several entities defined elsewhere as types of taxpayers. A person who reads MCL 208.1417(1) and (a) and (b) would reasonably conclude that the entities listed in the two subdivisions were those taxpayers-and only those taxpayers-that may be disqualified from claiming the credit. Nowhere does the plain language of the statute imply that a taxpayer that is not itself listed under Subdivision (a) or (b) should somehow be unpacked like a matryoshka doll until a disqualifying member of the group is discovered. The Legislature expressed itself with sufficient clarity in MCL 208.1417(1), and we will not infer an extension that is not supported by the statute's text. LaBelle Mgt. , 315 Mich.App. at 29, 888 N.W.2d 260 ("Tax laws generally will not be extended in scope by implication or forced construction, and when there is doubt, tax laws are to be construed against the government.").
To support its contrary reading, Treasury relies on its interpretive guidance provided to taxpayers as well as several Tribunal decisions interpreting and applying similar provisions in the SBT. Courts do give "respectful consideration" to a state agency's interpretation of a statute and do not generally overrule such an interpretation absent "cogent reasons." In re Complaint of Rovas Against SBC Mich. , 482 Mich. 90, 108, 754 N.W.2d 259 (2008). Moreover, legislative silence in the face of agency decisions may, under certain circumstances, suggest legislative acquiescence. See, e.g., Nat'l Labor Relations Bd. v. Aerospace Co. Div. of Textron Inc. , 416 U.S. 267, 275, 94 S.Ct. 1757, 40 L.Ed.2d 134 (1974) (adopting the board's interpretation of "employee" that had been consistently used before the act's amendment repeating the language). Yet, the taxation of unitary business groups as such was first introduced in the MBT, and decisions involving how the credit was applied to affiliated groups under the SBT are of limited interpretive value. More fundamentally, these are interpretive principles or canons employed only when a statute is ambiguous. See Borchard-Ruhland , 460 Mich. at 284-285, 597 N.W.2d 1. Treasury has not identified another provision of the MBT with which our reading of MCL 208.1417(1) would irreconcilably conflict, and as shown above, on its face MCL 208.1417(1) is not equally susceptible to more than a single meaning. Concluding that the statute is not ambiguous, we need not resort to these or other canons of construction.
With that said, even assuming for the sake of argument that MCL 208.1417(1) is ambiguous, a different canon of construction conclusively demonstrates that the Legislature did not intend to include unitary business groups in the MBT's disqualifying provisions. Recall that with the CIT, the Legislature explicitly added "unitary business group" to the list of taxpayers that may be disqualified from claiming the CIT's small business alternative credit. The form and substance of the CIT's credit mirrors that of the MBT's credit, but with a crucial difference relevant here-"unitary business group" is not listed in the MBT's disqualifying provisions, but it is listed in the CIT's disqualifying provision. Courts have long understood that "a change in the language of a prior statute presumably connotes a change in meaning." Ray v. Swager , 501 Mich. 52, 80 n. 68, 903 N.W.2d 366 (2017) (citation and quotation marks omitted); see also People v. Wright , 432 Mich. 84, 92, 437 N.W.2d 603 (1989) ("It is axiomatic that when the Legislature effects a change in the provisions of a statute, a presumption arises that the Legislature intends a substantive change in the law."). This is especially the case when the statutory language and history confirm that the change is a substantive one, and not merely a recodification of existing law. Scalia & Gardner, Reading Law: The Interpretation of Legal Texts (St. Paul: Thomson/West, 2012), p 257.
The CIT was a significant change in Michigan tax law. Among other things, the definition of a "taxpayer" was circumscribed to just three entities and one group: corporation, insurance company, financial institution, and unitary business group. MCL 206.611(5). Similarly, membership in a "unitary business group" was limited to just corporations, insurance companies, and financial institutions. MCL 206.611(6) Yet, even with these and other substantive changes, the CIT retained a small business alternative credit in much the same form and substance as the ones found in the SBT and MBT, though with several important changes. If Treasury's reading of the MBT were the correct one, then there would have been no need for the Legislature to add "unitary business group" to the CIT's credit-disqualifying provision, as merely listing "corporation" should have been sufficient. By adding "unitary business group" to the CIT's credit-disqualifying provision, the Legislature undercut any reasonable support for the argument that the MBT's credit-disqualifying provision should be read to include that missing taxpayer.
Finally, Treasury asserts that our reading would be "illogical" because one "cannot seriously believe that the Legislature intended to place more restrictions on single-entity taxpayers than unitary business groups in a credit designed for small businesses." This is an argument from policy implication, rather than an argument from law. It is undeniable that the Legislature chose not to apply the disqualifying provision to a number of taxpayers regardless of financial size or owner/officer compensation, including banks, associations, receivers, and trusts, as even Treasury has recognized. See, e.g., Letter Ruling 2013-3. It is not our place to divine why the Legislature did or did not subject unitary business groups to the disqualifying provisions of the MBT's small business alternative credit. Rather, it is our place only to determine whether the Legislature did or did not do so-and, as we have explained, the Legislature did not. Wismer & Becker Contracting Engineers v. Dep't of Treasury , 146 Mich.App. 690, 700-701, 382 N.W.2d 505 (1985). Accordingly, we reverse the Tribunal's grant of summary disposition to Treasury with respect to whether D'Agostini's unitary business group was disqualified under Subdivisions (a) or (b) from claiming the MBT's small business alternative credit under MCL 208.1417(1). C. REMAINING CLAIMS
Because we reverse the Tribunal's grant of summary disposition, we need not reach D'Agostini's second claim of error. As for the third claim of error, we agree with Treasury that the claim was not preserved because it was first raised in a motion for reconsideration. Vushaj v. Farm Bureau Gen. Ins. Co. of Mich. , 284 Mich.App. 513, 519, 773 N.W.2d 758 (2009). We decline to take up the unpreserved claim on appeal.
III. CONCLUSION
A "unitary business group" is not one of the types of taxpayer listed in the disqualifying provisions of the MBT's small business alternative credit. Under separation-of-power principles, we do not have the authority to add it, only the Legislature does-which it in fact did in the disqualifying provisions of the CIT's small business alternative credit. Accordingly, we reverse the Tribunal's grant of summary disposition to Treasury and remand for entry of judgment consistent with this opinion.
As the prevailing party, D'Agostini may tax costs. We do not retain jurisdiction.
O'Connell, P.J., and Hoekstra, J., concurred with Swartzle, J.
Although the MBT no longer applies to most businesses, the MBT will not be fully repealed until the last certificated MBT credit or the carryforward from that credit has been claimed. 2011 PA 39, enacting § 1.
Michigan Department of Treasury, Michigan Business Tax Frequently Asked Questions, at C41, available at <> (accessed April 10, 2018) [https://perma.cc/6XVZ-CYKP]. | [
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] |
Per Curiam.
Petitioner, Dale Schubert, as personal representative of the Estate of Marguerite Schubert, appeals as of right the Tax Tribunal order determining that the Estate was not entitled to a principal-residence exemption (PRE), MCL 211.7cc(1), for the 2010, 2011, 2012, and 2013 tax years. For the reasons stated in this opinion, we affirm.
I. BASIC FACTS
The subject property is a residential property located in Ludington, Michigan. Schubert and her husband purchased the property in 1977. According to petitioner, Schubert first filed an affidavit claiming a PRE for the property in 1994, and it was granted at that time. It appears that from 1994 until 2013, Schubert continued to claim and receive a PRE on the Ludington property. However, around August 2013, the Department began an audit of the property. And on November 14, 2013, the PRE was denied for the 2010, 2011, 2012, and 2013 tax years after the Department determined that the Ludington property was not owned and occupied as Schubert's principal residence.
Schubert, through her personal representative, sought an informal conference before the Department's PRE unit. The hearing was held on September 22, 2014. Petitioner asserted that before her retirement, Schubert was a public school teacher in Midland, Michigan. After her retirement, she continued to use a Midland apartment as her mailing address until her son took over responsibility for her bills. Additionally, her extended family remained in Midland, and she continued to see doctors in Midland. Petitioner represented to the conference referee that Schubert had intended to live at the Ludington property during her retirement. Schubert's son explained at the conference that Schubert had seasonally resided in Florida, Arizona, Midland, and Ludington but that she had spent most of the year at the Ludington property. He maintained that Schubert had only kept the apartment in Midland for convenience. In the summer of 2012, Schubert moved into a rehabilitation center, where she stayed until September or October 2012. She then returned to the Ludington property. In the fall of 2013, she entered a different rehabilitation facility, where she remained until her death in 2014.
Despite the facts presented by petitioner, the Department maintained that its denial of the PRE was proper for a number of reasons. First, it questioned whether Schubert was an "owner" as defined by MCL 211.7dd(a). Second, it contended that there was no evidence that Schubert had occupied the Ludington property as her principal residence during the 2010 through 2013 tax years. Third, the Department asserted that in 2012 and 2013, when Schubert was at the rehabilitation facilities, she did not maintain an intent to return to the Ludington property and she did not meet the requirements to retain the exemption under MCL 211.7cc(5)(a), (b), or (c).
The informal conference referee found that Schubert was an owner of the Ludington property because she was a grantor who had placed her property in a revocable trust. See MCL 211.7dd(a)(vi ). The referee, however, determined that petitioner had failed to present any documentation showing that the Ludington property was Schubert's principal residence, whereas the Department had presented a number of documents to show that Schubert's principal residence was her Midland apartment. The referee further stated that because there was no evidence that the Ludington property was Schubert's principal residence during the 2010 through 2013 tax years, petitioner could not establish that Schubert was entitled to retain the exemption under MCL 211.7cc(5).
On February 13, 2015, the informal conference recommendation was adopted as the Department's final decision under MCL 211.7cc(8). Petitioner appealed the decision to the Tax Tribunal, asserting that Schubert had established a PRE for the Ludington property in 1994 and had thereafter continuously maintained the property as her primary residence until her death in 2014. In response, the Department conceded that Schubert owned the Ludington property, but contended that she had not occupied it as her principal residence for the tax years at issue. It presented documentary evidence showing that Schubert's driver's license listed her Midland address until September 2013, that her 2009 through 2012 Michigan income tax returns listed her Midland address, that her voter registration history listed her Midland address and indicated that she was registered to vote in Midland, and that her vehicle registration address was her Midland address. In addition, the Department submitted a copy of a PRE Questionnaire completed by petitioner during the August 2013 audit, which indicated that the Ludington property was occupied "seasonally," and a letter from Schubert's son admitting that the Midland address was Schubert's permanent mailing address. Petitioner responded by submitting a number of documents to establish that Schubert owned and occupied the property as her principal residence for the tax years in question. In particular, he submitted copies of envelopes sent to Schubert at her Ludington address in 2013 and 2014; a tax refund check from 2014 that reflected Schubert's Ludington address; a copy of the certificate of title for Schubert's vehicle that listed her Ludington address; a copy of Schubert's Michigan identification card-apparently issued in September 2013-that proclaimed Schubert's address was in Ludington; a copy of Schubert's voter identification card stating that as of 2014, she was registered to vote in Ludington; a copy of Schubert's voter details stating that she had voted absentee in 2008, 2010, and 2012; a copy of her obituary published in a Ludington-area newspaper; an affidavit indicating that a letter to Schubert's creditors was published in a Ludington-area newspaper; a document purporting to show that Schubert's will was probated in the county that Ludington is located within; and progress notes from Schubert's rehabilitation home, noting that shortly before her death Schubert requested to be taken back to Ludington.
On June 17, 2016, the Tribunal issued a final opinion and judgment, affirming the Department's denial of the PRE for tax years 2010, 2011, and 2012, but reversing its denial for the 2013 tax year. Petitioner moved for reconsideration, arguing, in part, that petitioner had not been allowed sufficient time to rebut the Department's evidence. On July 15, 2016, the Tribunal granted the motion, finding that rebuttal evidence may have been improperly excluded. The Tribunal ordered that the rehearing be limited to one hour, and it subsequently denied petitioner's motion to extend the time for the hearing to two hours. At the rehearing, petitioner submitted additional evidence, including copies of unredacted individual income tax returns for 2009 through 2012, a copy of the first page of Schubert's 2010 through 2012 Michigan Homestead Property Tax Credit claim, and a copy of a letter from Consumer's Energy stating that the Ludington property had not received external electrical services since June 2008.
On February 1, 2017, the Tribunal affirmed the Department's denial of the PRE for the 2010, 2011, 2012, and 2013 tax years. The Tribunal determined that in order to qualify for a PRE, a person must both own and occupy a property as his or her principal residence on or before the relevant date of the tax years involved. The Tribunal held that although there was no question that Schubert owned the property during the relevant tax years, there was a question as to whether she occupied it as her principal residence. The Tribunal found that in light of the evidence presented, it was clear that Schubert "had a presence" at the property; however, it found that her Midland address was her principal residence. The Tribunal explained that Schubert had used her Midland address for her 2009 through 2012 income tax returns; that she had been registered to vote in Midland until October 3, 2013; that her Michigan Identification Card had listed her Midland address until September 13, 2013; and that her vehicle had been registered in Midland in 2010. The Tribunal further found that virtually all of petitioner's documentary evidence was developed after Schubert was audited in August 2013. Finally, the Tribunal found that because Schubert did not occupy the property as her principal residence before moving into a nursing home, petitioner did not qualify under MCL 211.7cc(5) for a PRE for the 2013 tax year.
II. PRINCIPAL-RESIDENCE EXEMPTION
A. STANDARD OF REVIEW
Petitioner argues that the Tribunal erred by affirming the Department's denial of a PRE for the property for the 2010 through 2013 tax years. In the absence of fraud, this Court reviews decisions by the Tax Tribunal for misapplication of the law or adoption of a wrong principle. Power v. Dep't of Treasury , 301 Mich. App. 226, 229-230, 835 N.W.2d 622 (2013). When the Tribunal's findings of fact are supported by competent, material, and substantial evidence on the whole record, those findings are conclusive. EldenBrady v. City of Albion , 294 Mich. App. 251, 254, 816 N.W.2d 449 (2011). "[S]tatutes exempting persons or property from taxation must be narrowly construed in favor of the taxing authority." Power , 301 Mich. App. at 230, 835 N.W.2d 622 (quotation marks and citation omitted). The burden of proving entitlement to a tax exemption rests with the person claiming the exemption. Stege v. Dep't of Treasury , 252 Mich. App. 183, 189, 651 N.W.2d 164 (2002).
Issues regarding the proper interpretation and application of a statute are reviewed de novo. Manske v. Dep't of Treasury , 282 Mich. App. 464, 468, 766 N.W.2d 300 (2009). When interpreting a statute, our main goal is to determine the Legislature's intent. EldenBrady , 294 Mich. App. at 254, 816 N.W.2d 449. The most reliable indicator of the Legislature's intent is the words used in the statute. Id . Therefore, we first examine the statutory language, giving the words used their plain and ordinary meaning. Id . at 254-255, 816 N.W.2d 449. If a statute defines a word or phrase, that definition is controlling. Orthopaedic Assoc. of Grand Rapids, P.C. v. Dep't of Treasury , 300 Mich. App. 447, 451, 833 N.W.2d 395 (2013).
B. ANALYSIS
"Michigan's principal residence exemption, also known as the 'homestead exemption,' is governed by §§ 7cc and 7dd of the General Property Tax Act, MCL 211.7cc and MCL 211.7dd." EldenBrady , 294 Mich. App. at 256, 816 N.W.2d 449. Under MCL 211.7cc(1), "[a] principal residence is exempt from the tax levied by a local school district for school operating purposes ... if an owner of that principal residence claims an exemption as provided in this section." In order to receive the exemption, a taxpayer must file an affidavit claiming the exemption. Power , 301 Mich. App. at 231, 835 N.W.2d 622. MCL 211.7cc(2) sets forth the requirements for the affidavit:
Except as otherwise provided in subsection (5), an owner of property may claim 1 exemption under this section by filing an affidavit .... The affidavit shall state that the property is owned and occupied as a principal residence by that owner of the property on the date that the affidavit is signed and shall state that the owner has not claimed a substantially similar exemption, deduction, or credit on property in another state. ... If an owner of property filed an affidavit for an exemption under this section before January 1, 2004, that affidavit shall be considered the affidavit required under this subsection for a principal residence exemption and that exemption shall remain in effect until rescinded as provided in this section. [Emphasis added.]
In pertinent part, the Legislature has defined the term "principal residence" to mean "the 1 place where an owner of the property has his or her true, fixed, and permanent home to which, whenever absent, he or she intends to return and that shall continue as a principal residence until another principal residence is established. " MCL 211.7dd(c).
In the proceedings before the Tribunal, the Department contended that, read together, MCL 211.7cc and MCL 211.dd(c) require a person claiming a PRE to occupy the property as his or her principal residence during every tax year the exemption is claimed. The term "occupied" is not defined by the statute. If a word or phrase is undefined by the statute, we may consult a dictionary. EldenBrady , 294 Mich. App. at 255, 816 N.W.2d 449. Merriam-Webster's Collegiate Dictionary (11th ed.) defines "occupy," in relevant part, as "to reside in as an owner or tenant." In turn, "reside" is defined as "to dwell permanently or continuously: occupy a place as one's legal domicile."Id .; see also EldenBrady , 294 Mich. App. at 259, 816 N.W.2d 449 (defining "unoccupied" as used in MCL 211.7dd(c) as meaning without a human tenant or resident). Accordingly, it is clear that a person must dwell either permanently or continuously at a property to "occupy" the property.
On appeal, however, petitioner asserts that Schubert only had to occupy the property on the date that she filed the affidavit claiming the PRE under MCL 211.7cc(2). MCL 211.7cc(2) requires an owner to aver that the property "is owned and occupied as a principal residence by that owner of the property on the date that the affidavit is signed .... " (Emphasis added.) Petitioner further contends that the MCL 211.7dd(c) definition of "principal residence" includes only an ownership, not an occupancy requirement. We agree that the first sentence of the definition in MCL 211.7dd(c) does not contain an occupancy requirement. However, the second sentence of the definition provides that "[e]xcept as otherwise provided in this subdivision, principal residence includes only that portion of a dwelling or unit in a multiple-unit dwelling that is subject to ad valorem taxes and that is owned and occupied by an owner of the dwelling or unit ." Id . (emphasis added).
Further, the definition goes on to provide in later sentences that under certain circumstances, portions of unoccupied property may be included in the definition of principal residence. MCL 211.7dd(c). See also EldenBrady , 294 Mich. App. at 259, 816 N.W.2d 449 (concluding that an unoccupied 10-acre parcel that adjoining or was contiguous to the petitioners' dwelling satisfied the MCL 211.7dd(c) definition of "principle residence."). It would make little sense to distinguish between those circumstances in which unoccupied property qualifies as a principal residence and those in which it does not if there were not an underlying requirement that the property must be both owned and occupied as a principal residence. In addition, MCL 211.7cc(5) expressly provides that a person who is not occupying his or her property because the person is residing in a nursing home or assisted living facility must satisfy a number of requirements to retain the exemption. If a property did not have to be occupied other than on date set forth in the affidavit, then the language providing this exception from the occupancy requirement would be nothing more than surplusage. See Robinson v. City of Lansing , 486 Mich. 1, 21, 782 N.W.2d 171 (2010) (stating that we should avoid a construction of a statute that would render any part of it surplusage or nugatory). Accordingly, we conclude that under the plain language of the statute, a person claiming a PRE on a property must establish that he or she owned and occupied the property as a principal residence for each year that the exemption is claimed.
Petitioner next argues that the Tribunal erred by finding that Schubert used her Midland apartment as her principal residence and by concluding therefore that she could not claim her Ludington property as her principal residence. MCL 211.7dd(c) provides that "principal residence" means "the 1 place where an owner of the property has his or her true, fixed, and permanent home to which, whenever absent, he or she intends to return and that shall continue as a principal residence until another principal residence is established ." (Emphasis added.) Petitioner directs us to consider the phrase "shall continue as a principal residence until another principal residence is established." This language suggests that once a property is established as an owner's principal residence, the sole way for it to lose its status as a principal residence is if the owner establishes a new principal residence. Petitioner then contends that in order to establish a new principal residence the owner must, in fact, own the new property.
However, MCL 211.7dd(c) only defines the phrase "principal residence." It does not provide that if a property is, at one time or another, an owner's principal residence, then the owner is entitled to the MCL 211.7cc(1) PRE until such time as he or she establishes a new principal residence. Instead, MCL 211.7cc(5) provides that "after exempted property is no longer used as a principal residence by the owner claiming an exemption, that owner shall rescind the claim of exemption by filing with the local tax collecting unit a rescission form prescribed by the department of treasury." (Emphasis added). Accordingly, to be entitled to the PRE, an owner claiming the exemption has a continuing requirement to use the property as his or her principal residence. In order to use a property as his or her principal residence, it must be "the 1 place where an owner of the property has his or her true, fixed, and permanent home to which, whenever absent, he or she intends to return ...." MCL 211.7dd(c). And as already explained, it must also be a property that he or she occupies. Because the definition of "principal residence" clearly provides that a person can only have one place that he or she holds out as his or her "true, fixed, and permanent home to which, whenever absent, he or she intends to return," id ., if a person stops using the exempted property in that fashion and starts using a rented apartment as his or her true, fixed, and permanent home, then that person, by definition, is no longer using the exempted property as his or her principal residence and must rescind the PRE under MCL 211.7cc(5). Therefore, even though MCL 211.7dd(c) provides that a person's principal residence will continue until a new principal residence is established, a person cannot continue to claim a PRE on a property that he or she no longer uses as a principal residence.
Schubert never rescinded the PRE on her Ludington property. The Department, however, was not required to wait to review the PRE until Schubert filed a rescission under MCL 211.7cc(5). MCL 211.7cc(8) provides, in pertinent part, as follows:
The department of treasury shall determine if the property is the principal residence of the owner claiming the exemption. Except as otherwise provided in subsection (21), the department of treasury may review the validity of exemptions for the current calendar year and for the 3 immediately preceding calendar years. Except as otherwise provided in subsections (5) and (32), if the department of treasury determines that the property is not the principal residence of the owner claiming the exemption, the department shall send a notice of that determination to the local tax collecting unit and to the owner of the property claiming the exemption, indicating that the claim for exemption is denied, stating the reason for the denial, and advising the owner claiming the exemption of the right to appeal ....
Consequently, the Department was entitled to review the PRE claim to determine if the Ludington property was Schubert's principal residence. Further, in accordance with that review power, the Department was free to determine whether Schubert owned and occupied the property and whether she had stopped using it as her principal residence.
Having determined that the Tribunal did not commit an error of law by requiring petitioner to establish occupancy, we next turn to whether there was competent, material, and substantial evidence on the whole record to support the Tribunal's findings.
Because a principal residence is defined as one's "true, fixed, and permanent home," MCL 211.7dd(c), and because the burden of proving a tax exemption falls to the person claiming the exemption, Stege , 252 Mich. App. at 189, 651 N.W.2d 164, petitioner had to present evidence linking Schubert to the Ludington address. A person can present that evidence in the form of testimony or documentary evidence. Generally, documentary evidence relevant to whether a person occupies the property as his or her principal residence can include utility bills, driver's licenses, tax documents, other documents showing the petitioner's address, and voter registration cards. See generally Drew v. Cass Co. , 299 Mich. App. 495, 500-501, 830 N.W.2d 832 (2013). No single document is conclusive. Id .
In this case, Schubert's son testified at the hearing regarding Schubert's intent. Petitioner also presented a number of documents purporting to show that Schubert owned and occupied the Ludington property as her principal residence during the tax years in question. The Department responded by submitting a number of documents purporting to show that Schubert was occupying her Midland apartment as her principal residence. Weighing the competing evidence, the Tribunal found that Schubert occupied the Midland apartment as her principal residence, not her Ludington property.
On appeal, petitioner attacks the credibility of the documentary evidence submitted by the Department. We briefly address each challenge in turn.
First, petitioner argues that the "drivers license search result" document submitted by the Department did not conclusively show that Schubert lived in Midland during the tax years at issue. Instead, petitioner contends that the document shows that Schubert resided, at various times, in Texas, in Midland, in Ludington, and at a post office box. He correctly points out that although the document is dated March 2015, it does not contain any dates indicating when she lived at any of the listed places. Instead, the document states that the "current" address on Schubert's identification card is her Ludington address, whereas Schubert's Midland address is listed as a "historical" address. A copy of Schubert's most recent identification card was also submitted. It proclaimed Schubert's address as her Ludington address; however, it was issued on September 13, 2013, which was after the Department began its audit of the Ludington property. Given this evidence, the Tribunal could reasonably conclude that Schubert's identification card was changed from Midland (one of her historical addresses listed on the driver's-licenses-search document) to Ludington in 2013, which would make Ludington her current address. Accordingly, the Tribunal's reliance on this document was not improper, despite the fact that it could arguably be interpreted in petitioner's favor.
Next, petitioner asserts that the 2009 through 2012 Michigan Income Tax Returns do not provide proof that Schubert's principal residence was her Midland apartment. He acknowledges that the tax returns proclaim in line 1 that Schubert's "home address" was her Midland apartment. However, petitioner asserts that because Schubert lived in Ludington from about mid-March until about mid-November, and because the tax returns were completed while she was not living on the property, Schubert was required to list her address as her Midland apartment. His argument, however, goes to the weight of the documents. And "[t]he weight to be accorded to the evidence is within the Tax Tribunal's discretion." Drew , 299 Mich. App. at 501, 830 N.W.2d 832 (quotation marks and citation omitted). "[T]his Court may not second-guess the [Tribunal's] discretionary decisions regarding the weight to assign to the evidence." Id .
Similarly, we find no error with the weight the Tribunal accorded to Schubert's Homestead Property Tax Credit Claim forms for 2010 through 2012. Petitioner argues that Schubert listed her Midland address because that was where she was living on December 31 of the relevant years, not because her Midland address was her principal residence. In support, petitioner points out that line 36 of the Homestead Property Tax Credit Claim forms asks the taxpayer to identify the "Address where you lived on December 31, [of the tax year], if different than reported on Line 1." The fact that the Tribunal did not credit this explanation for the address listed in Line 1 goes to the weight of the evidence, which we may not second-guess on appeal. See id .
Petitioner also challenges the weight given to the voter-registration records. The information indicated that Schubert registered to vote using her Midland address on October 30, 2007. It also indicated that on October 3, 2013, she registered to vote using her Ludington address. According to the document, Schubert last voted in November 2012, at which time she was registered to vote in Midland, not Ludington. Therefore, this document supports the Tribunal's findings of fact, despite the fact that it does not conclusively tie Schubert to her Midland apartment for the tax years at issue.
The challenge to the weight of the submitted vehicle-registration information fails for the same reason. According to the document submitted, Schubert's vehicle was registered using the Midland address on October 13, 2006, and again on September 12, 2010. On September 9, 2013, a title was issued for the vehicle that listed Schubert's Ludington address. Petitioner contends that this document only reflects registration of the vehicle in Schubert's name so that her son could try and sell the vehicle for her. Petitioner also asserts that Schubert's son testified at the hearing that Schubert no longer drove the vehicle (or others) during the tax years in question. The Tribunal, however, heard the testimony and decided to give some weight to the address and date listed on the vehicle-registration document. We find nothing improper in that exercise of discretion.
Finally, petitioner contends that the notation "seasonally" on the PRE Questionnaire submitted as part of the August 2013 audit does not prove that Schubert only used the property seasonally. In Part 2 of the questionnaire, the notation "seasonally" is handwritten in response to the question "Do you currently live at the property listed in Part 1?" The property listed in Part 1 is Schubert's Ludington property. Although we agree that this notation is not conclusive, we do not agree that it was improper for the Tribunal to rely on it in reaching its decision. The Tribunal was not required to credit petitioner's explanation for the notation.
Having carefully and thoroughly reviewed each exhibit submitted to the Tribunal, we conclude that although petitioner challenged the evidentiary value of the Department's evidence, the Tribunal was still entitled to rely on those documents when reaching its decision. And on this record, we conclude that the Tribunal's finding that Schubert was using her Midland apartment as her principal residence, not her Ludington property, was supported by competent, material, and substantial evidence on the whole record. See EldenBrady , 294 Mich. App. at 254, 816 N.W.2d 449.
Affirmed.
Murphy, P.J., and M. J. Kelly and Swartzle, JJ., concurred.
References in this opinion to "Schubert" are to the decedent, Marguerite Schubert.
A copy of the 1994 affidavit is not available in the lower court record; however, this fact is not disputed by the respondent, the Department of Treasury.
Schubert died on May 22, 2014.
In a March 2016 submission of evidence, petitioner clarified that Schubert had spent about eight months of the year at the Ludington property, typically from mid-March to mid-November, and that she spent the other months in Florida, Arizona; Texas; or Midland, Michigan.
In relevant part, MCL 211.7cc(5) provides:
An owner of property who previously occupied that property as his or her principal residence but now resides in a nursing home or assisted living facility may retain an exemption on that property if the owner manifests an intent to return to that property by satisfying all of the following conditions:
(a) The owner continues to own that property while residing in the nursing home or assisted living facility.
(b) The owner has not established a new principal residence.
(c) The owner maintains or provides for the maintenance of that property while residing in the nursing home or assisted living facility.
(d) That property is not occupied, is not leased, and is not used for any business or commercial purpose.
This document showed that Schubert was registered to vote using her Midland address in December 2007, but changed the address where she was registered to vote from Midland to Ludington in October 2013.
Additional exhibits were submitted; however, they are not pertinent to the issues raised on appeal.
The Tribunal concluded in the June 2016 order that petitioner was entitled to a PRE for 2013 because of the exemption provision in MCL 211.7cc(5) applying to an owner in a nursing home or other rehabilitation facility.
The definition of "principal residence" additionally sets forth a number of situations in which property is considered to be part of the principal residence, even if it does not strictly meet the cited definition. See MCL 211.7dd(c). For example, the statute explains that under some circumstances, unoccupied property can be included in the definition of principal residence, as can portions of a property that are rented or leased to another person. See id .
This requirement likely reflects the fact that an affiant cannot generally aver to events that may occur in the future. In that regard, it is axiomatic that a person claiming a PRE on his or her property could not properly aver that he or she currently owns and occupies the property as his or her principal residence and will continue to do so for the next 50 years.
We recognize that this portion of the definition expressly applies to multiple-unit dwellings, see Rentschler v. Melrose Twp. , 322 Mich. App. 113, 115,, 910 N.W.2d 711 (2017). However, because we must read a statute in context to produce a harmonious whole, it is nevertheless relevant to our analysis. See generally Robinson v. City of Lansing , 486 Mich. 1, 15, 782 N.W.2d 171 (2010).
Petitioner's interpretation of the statute would lead to absurd results. Assume, for example, that a person has a principal residence as defined in the first part of MCL 211.7dd(c). Assume further that the principal residence is wholly destroyed in a fire. Under petitioner's interpretation, unless the (former) owner of the residence (1) owns a new residence and (2) otherwise satisfies the definition in MCL 211.7dd(c), his or her principal residence will necessarily continue to be the wholly destroyed residence despite the fact that there is literally no residence left for the owner to claim as his or her true, fixed, and permanent home to which, whenever absent, he or she intends to return. Because we must construe MCL 211.7dd(c) to avoid absurd results, see Houghton Lake Area Tourism & Convention Bureau v. Wood , 255 Mich. App. 127, 142-143, 662 N.W.2d 758 (2003), we reject petitioner's interpretation.
Furthermore, we fail to see how this establishes that the address in line 1 was not Schubert's principal residence. It appears that there is no date requirement listed for line 1, which would allow Schubert to list her Ludington address on line 1 and her Midland address (the place she was living on December 31 of the relevant tax years) on line 36.
Petitioner also takes issue with the Department's decision to white out certain information on the Homestead Property Tax Credit Claim form. However, we have carefully reviewed the redacted and unredacted versions of the form and do not see any attempt to mislead the Tribunal by whiting out the information. Moreover, the Tribunal did not rely on the whited-out information in any form when reaching its decision.
In addition, petitioner contends that because the 2012 Homestead Property Tax Credit form lists the Ludington address in line 1, using the Tribunal's logic, Schubert is entitled to a PRE for 2012 on the subject property. However, the 2012 tax return appears to have been prepared after the audit was conducted; moreover, no one document is dispositive. See Drew , 299 Mich. App. at 501, 830 N.W.2d 832. | [
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Per Curiam.
Following a jury trial, defendant, Kerry L. Thorne, appeals as of right her conviction of larceny in a building, MCL 750.360. For the reasons explained in this opinion, we affirm.
On April 12, 2016, defendant and the victim were playing slot machines next to each other at the Odawa Casino in Petoskey, Michigan. When the victim left her slot machine to use the restroom, defendant took the victim's TITO out of the slot machine that the victim had been playing. While the victim was on her way to the restroom, she realized that she had not retrieved her TITO. The victim returned to the slot machine and asked defendant if she had seen the TITO, and defendant responded that she had not.
The victim reported the missing TITO to a security guard. Video footage from the casino showed defendant taking the TITO, and a police officer was called to investigate the incident. When speaking to the police, defendant initially denied that she had taken the TITO, but she later admitted doing so after the officer informed defendant of the surveillance footage.
At trial, defendant did not dispute having taken the TITO; rather, she testified that she believed that the TITO had been abandoned. According to defendant, her belief was rooted in her prior experiences in casinos, her prior discussions with casino staff, and an earlier instance in which staff had prevented her from
retrieving her own TITO after she had momentarily left her slot machine. A jury convicted defendant of larceny in a building. Defendant now appeals as of right.
I. PROPERTY "OF ANOTHER"
Defendant first argues that she did not commit a larceny because the TITO
was not the property "of another." Specifically, defendant maintains that the victim did not have the right to possess the TITO as against defendant because the victim abandoned or, at a minimum, "lost" the TITO. Because the TITO was lost or abandoned, defendant maintains that she-"or anyone else that sat down at that slot machine and played"-had the right to possess the TITO.
Questions of statutory interpretation and issues relating to the sufficiency of the evidence are reviewed de novo. People v. Cline , 276 Mich. App. 634, 642, 741 N.W.2d 563 (2007). Defendant was convicted of larceny in a building under MCL 750.360. Because the statute does not define the term "larceny," it is afforded its common-law meaning. People v. March , 499 Mich. 389, 399, 886 N.W.2d 396 (2016). Based on the common-law understanding of larceny, the elements of larceny in a building are as follows: (1) a trespassory taking (2) within the confines of a building and (3) the carrying away (4) of the personal property (5) of another (6) with intent to steal that property. Id. at 401-402, 886 N.W.2d 396. Defendant's argument implicates the "of another" element.
For purposes of the "of another" requirement, "possession, and not title ownership is the determinative requirement in larceny crimes." Id. at 409, 886 N.W.2d 396. Specifically, property "of another" "is any property in which 'another' individual holds the right to possess as against the defendant at the time of the taking." Id. at 414, 886 N.W.2d 396.
Conversely, "if the defendant had the right to possess the property as against the complainant at the time of the taking, no larceny could occur." Id. at 403, 886 N.W.2d 396.
To determine whether "another" had ... rightful possession, courts must examine the respective rights to the property. This examination requires courts to determine both the rights of all relevant individuals to the property and whether any of those individuals held a right to possess the property as against the defendant. To undertake this examination, courts should consult pertinent statutes, ordinances, contracts, caselaw, and the like that give rise to the individuals' rights and define the relationship between those rights .... [Id. at 414.]
In this case, the victim using the slot machine had actual possession of the TITO until she walked away from the machine. According to the victim's testimony, as she walked to the bathroom, she realized that she had left her ticket behind and, when the victim saw her daughter-in-law, the victim told her that she had "lost" the ticket. But within 4 minutes, the victim returned to the slot machine with her daughter-in-law to look for the ticket. The mere fact that the victim momentarily walked away from the machine does not establish that the victim gave up possession of the TITO. That is, possession can be either actual or constructive, and it can be concluded from the evidence that the victim retained the power and intention to exercise dominion or control over the TITO. Id. at 415, 886 N.W.2d 396. Moreover, insofar as defendant emphasizes the victim's characterization of the TITO as "lost," as between the owner of lost property and the individual who finds the item, the owner of the property has the right to possession of the item. See MCL 434.22(1) ; MCL 434.24 ; Wood v. Pierson , 45 Mich. 313, 317, 7 N.W. 888 (1881). Indeed, the finder of lost or misplaced property can be guilty of larceny when he or she takes found property with the intent to
steal. See People v. Harmon , 217 Mich. 11, 13, 18, 185 N.W. 679 (1921) ; see also 50 Am. Jur. 2d, Larceny, § 52, p. 73. In short, while defendant claims that the TITO was abandoned, the evidence supports the conclusion that the victim momentarily walked away from the TITO without relinquishing constructive possession or that she, at most, lost the TITO; and this evidence that defendant took lost or mislaid property was sufficient to support the conclusion that, when defendant took the TITO, the TITO was the property "of another" within the meaning of MCL 750.360.
II. JURY INSTRUCTIONS ON ABANDONED PROPERTY
Defendant next argues that the trial court erred by failing to give a specific instruction on abandoned property or that, alternatively, her trial counsel's failure to request an abandoned property instruction amounted to ineffective assistance of counsel. We first note that defendant waived review of the jury instructions because her counsel clearly expressed satisfaction with the trial court's instructions. See People v. Kowalski , 489 Mich. 488, 503, 803 N.W.2d 200 (2011). However, we will consider the jury instructions in the context of addressing defendant's claim that defense counsel was ineffective for not requesting instructions on abandoned property. See People v. Eisen , 296 Mich. App. 326, 329-330, 820 N.W.2d 229 (2012).
Defendant preserved her claim of ineffective assistance of counsel by raising it in a motion for a new
trial. People v. Wilson , 242 Mich. App. 350, 352, 619 N.W.2d 413 (2000). "Whether a person has been denied effective assistance of counsel is a mixed question of fact and constitutional law." People v. LeBlanc , 465 Mich. 575, 579, 640 N.W.2d 246 (2002). "A judge first must find the facts, and then must decide whether those facts constitute a violation of the defendant's constitutional right to effective assistance of counsel." Id . This Court reviews for clear error the trial court's factual findings and reviews de novo questions of law. People v. Lane , 308 Mich. App. 38, 67-68, 862 N.W.2d 446 (2014). When, as in this case, an evidentiary hearing has not been held, our review is limited to mistakes apparent from the record. Id. at 68, 862 N.W.2d 446.
To establish ineffective assistance of counsel, defendant "must establish (1) the performance of [her] counsel was below an objective standard of reasonableness under prevailing professional norms and (2) a reasonable probability exists that, in the absence of counsel's unprofessional errors, the outcome of the proceedings would have been different." People v. Sabin (On Second Remand) , 242 Mich. App. 656, 659, 620 N.W.2d 19 (2000). "Trial counsel is responsible for preparing, investigating, and presenting all substantial defenses." People v. Chapo , 283 Mich. App. 360, 371, 770 N.W.2d 68 (2009). "Failing to request a particular jury instruction can be a matter of trial strategy." People v. Dunigan , 299 Mich. App. 579, 584, 831 N.W.2d 243 (2013).
"A criminal defendant is entitled to have a properly instructed jury consider the evidence against [her]." People v. Riddle , 467 Mich. 116, 124, 649 N.W.2d 30 (2002). "The jury instructions must include all elements of the crime charged, and must not exclude from jury consideration material issues, defenses or theories
if there is evidence to support them." People v. Armstrong , 305 Mich. App. 230, 240, 851 N.W.2d 856 (2014) (quotation marks and citation omitted). "When a defendant requests a jury instruction on a theory or defense that is supported by the evidence, the trial court must give the instruction." Riddle , 467 Mich. at 124, 649 N.W.2d 30.
In this case, defendant contends that counsel should have requested an instruction on abandoned property. The "abandonment" of property refers to "the voluntary relinquishment thereof by its owner or holder, with the intention of terminating his or her ownership, possession, and control, and without vesting ownership in any other person." 1 C.J.S., Abandonment, § 1, p. 2. . See also Roebuck v. Mecosta County Rd. Comm. , 59 Mich. App. 128, 132, 229 N.W.2d 343 (1975). "Abandoned property belongs to no one," and "[t]he first person to take possession acquires ownership." 3 Wharton's Criminal Law (15th ed.), § 377, p. 447. "Therefore, abandoned property cannot be the subject of larceny." Id. See also 50 Am. Jur. 2d, § 52. Moreover, because larceny is a specific-intent crime, an individual who claims a right to property, even if that claim is mistaken or unfounded, has not committed larceny, provided that the individual honestly believed he or she had a claim to the property. See People v. Holcomb , 395 Mich. 326, 333, 235 N.W.2d 343 (1975) ; People v. Hillhouse , 80 Mich. 580, 586, 45 N.W. 484 (1890) ; M. Crim. JI 7.5. For this reason, if an individual "truly believed" property to be "abandoned or unwanted," this honest belief, even if mistaken, can constitute a defense to a specific-intent crime. Morissette v. United States , 342 U.S. 246, 271, 276, 72 S.Ct. 240, 96 L.Ed. 288 (1952). See also
Hawkins v. United States , 103 A.3d 199, 201 (D.C., 2014) ; Commonwealth v. Liebenow , 470 Mass. 151, 156-158, 20 N.E.3d 242 (2014).
At trial, defendant testified that she thought the TITO was "abandoned" when the victim walked away from the slot machine, and she specified that she held this belief because of her past experiences in the casino. Arguably, given this testimony, defense counsel could have sought an instruction regarding abandoned property. However, counsel's actions are presumed to be sound trial strategy, and defendant has not overcome the presumption that counsel's decisions regarding the jury instructions were a matter of trial strategy, particularly when, as discussed later in this opinion, the instructions on the elements of larceny under M. Crim. JI 23.4 were sufficient to protect defendant's rights. See People v. Meissner , 294 Mich. App. 438, 458, 460, 812 N.W.2d 37 (2011).
Moreover, even assuming counsel could, or should, have requested a specific instruction on abandonment, we are not persuaded that defendant is entitled to relief on appeal. Counsel's failure to request an instruction on abandonment did not prevent defendant from presenting a substantial defense. To the contrary, even absent a specific jury instruction, defendant testified to her belief that the property was abandoned and, in closing arguments, defense counsel argued that defendant did not intend to take property belonging to anyone else because, at the time she took the TITO, she did not think it belonged to the victim. Further, the jury instructions given did not prevent the jury from returning a not guilty verdict if they believed defendant's version of events. The instructions given on the
elements of larceny in a building, which were consistent with M. Crim. JI 23.4, required the jury to find that defendant took "someone else's property" and that "at the time the property was taken, the Defendant intended to permanently deprive the owner of the property." Had the jury believed that the TITO was abandoned or had the jury determined that defendant honestly believed that the TITO was abandoned, they would not have concluded that she took "someone else's property" or that when she did so she "intended to permanently deprive the owner of the property."
Additionally, despite defendant's claim that she believed that the TITO was abandoned, we note that there was strong evidence that this was not her honest belief. Unlike the "spent casings left in the hinterland to rust away" like unwanted junk in Morissette , 342 U.S. at 276, 72 S.Ct. 240, the TITO had a value of $40, it was being used by the victim in the moments before the taking, defendant saw the victim walk away from the slot machine, and defendant took the TITO within 30 seconds after the victim walked away. On these facts, its strains credulity to suggest that defendant honestly believed that the victim intended to relinquish all rights to the TITO. This is particularly true given evidence that the victim returned and asked defendant about the TITO within 4 minutes of walking away, but defendant denied seeing the ticket. Likewise, when defendant was first confronted by authorities about taking the
TITO, rather than claim that she simply picked up abandoned property, she said that she did not take the TITO. These lies to the victim and the authorities are indicative of a consciousness of guilt. See People v. Unger , 278 Mich. App. 210, 227, 749 N.W.2d 272 (2008). Overall, even assuming that counsel should have requested a specific instruction on abandonment, given the instructions under M. Crim. JI 23.4 and the strong evidence of defendant's guilt, defendant has not established that she was prejudiced by counsel's failure to request an abandoned-property instruction, and she is not entitled to relief on appeal.
III. CONSTITUTIONAL RIGHT TO TESTIFY
Finally, defendant claims that she was deprived of her constitutional right to testify when the trial court sustained a relevancy objection during her testimony. In particular, during defendant's testimony, defense counsel asked her whether she was familiar with the casino's practices regarding a "bowl of tickets." The prosecutor objected on relevancy grounds, and the trial court sustained the objection. Defendant now claims that this ruling deprived her of the right to testify in her own defense and to offer exculpatory evidence that would have revealed that TITOs are commonly abandoned at the casino.
"A defendant's right to testify in [her] own defense stems from the Fifth, Sixth, and Fourteenth amendments of the United States Constitution." People v. Boyd , 470 Mich. 363, 373, 682 N.W.2d 459 (2004). "Any ruling, even if on a mere evidentiary issue, necessarily affects a defendant's constitutional rights if it has a chilling effect on the exercise of the right to testify." Id . at 374, 682 N.W.2d 459. However, the right is not absolute, and a defendant remains subject to the " 'established rules of
procedure and evidence designed to assure both fairness and reliability in the ascertainment of guilt and innocence.' " People v. Hayes , 421 Mich. 271, 279, 364 N.W.2d 635 (1984), quoting Chambers v. Mississippi , 410 U.S. 284, 302, 93 S.Ct. 1038, 35 L.Ed.2d 297 (1973).
At the outset, we note that this is not a case in which the trial court prevented defendant from taking the stand. Cf. People v. Solomon (Amended Opinion) , 220 Mich. App. 527, 535, 560 N.W.2d 651 (1996). Instead, this is a case in which the trial court sustained an objection to a specific line of questioning relating to a "bowl of tickets" at the casino. Defendant did not make an offer of proof at trial, MRE 103(a)(2), and therefore it is unclear what testimony defendant intended to offer about a "bowl of tickets" at the casino or how this bowl related to the taking of the victim's TITO, which was left in a slot machine. If we were to accept defendant's assertion on appeal that the bowl of TITOs was evidence that TITOs are commonly abandoned in the casino, this evidence might have some relevance to defendant's intent and whether she honestly believed that the victim abandoned her TITO by momentarily walking away from the machine. See MRE 401.
However, even assuming that this testimony was relevant, the exclusion of this testimony did not prevent defendant from testifying on her own behalf, and any error in excluding this testimony was harmless. See Solomon , 220 Mich. App. at 535, 560 N.W.2d 651. That is, the exclusion of evidence relating to a "bowl of tickets" did not prevent defendant from asserting that she believed the victim's TITO had been abandoned or from asserting that she held this belief based on casino customs. Cf. Alicea v. Gagnon , 675 F.2d 913, 925 (C.A.7, 1982). For instance, defendant testified that she had "no idea" she was stealing because she had talked with "security
supervisors, slot attendants, about slips that have been left over, whether it be fifteen cents or $15.00, and they considered it abandoned, and that was my line of thinking." More specifically, defendant testified that two weeks before this incident, she had been playing a slot machine, she left the machine for a few moments, and when she returned to the machine, casino staff denied her receipt of her winnings because she had abandoned her machine. In short, the exclusion of evidence relating to a bowl of TITOs did not prevent defendant from testifying on her own behalf to her understanding of the casino's practice of deeming TITOs "abandoned" if a machine was left unattended. Moreover, as discussed earlier, given the $40 value of the ticket, the fact that defendant took the TITO within 30 seconds of watching the victim walk away, and the lies defendant told when first asked about the TITO, there was strong evidence that she did not honestly believe that the victim's TITO was abandoned. Overall, because defendant was able to present her abandonment-of-property defense, any potential error in the exclusion of her testimony relating to a "bowl of tickets" was harmless, particularly in light of the strong evidence of defendant's guilt. See id. at 925-926 ; Solomon , 220 Mich. App. at 535, 560 N.W.2d 651.
Affirmed.
MARKEY, P.J., and HOEKSTRA and RONAYNE KRAUSE, JJ., concurred.
TITO means "ticket-in, ticket-out." A TITO slot machine produces a piece of paper with the player's present credit value upon conclusion of play. For ease of reference in this opinion, we refer to this piece of paper as a TITO. A player may either exchange the TITO for cash or use it in another machine to play more games.
On appeal, defendant also argues that the TITO may have been owned or possessed by the casino once the victim walked away from the slot machine. We fail to see how this argument aids defendant because property belonging to, or in the possession of, the casino would still be property "of another." See generally People v. Hatch , 156 Mich. App. 265, 267, 401 N.W.2d 344 (1986).
Formatting altered.
Defendant relies heavily on Morissette , wherein the Court determined that the defendant's honest belief that property was abandoned negated the specific intent required to convert property, and the Court reversed the defendant's conviction on the basis of improper jury instructions on intent. Morissette , 342 U.S. at 271, 276, 72 S.Ct. 240. However, Morissette is easily distinguished because in that case the trial court affirmatively instructed the jury that "it is no defense to claim that [the property] was abandoned ...." Id. at 249, 72 S.Ct. 240. While the present case lacked a specific instruction on abandoned property, the general instructions on larceny in a building allowed the jury to consider defendant's claim that she believed the TITO had been abandoned. | [
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] |
On order of the Chief Justice, the motion of defendant-appellant for reconsideration of the order entered on June 1, 2018, is DENIED. For the reasons explained in that order, the only issue reviewable by this Court at this time is whether the Court of Appeals erred in dismissing the defendant-appellant's delayed application for leave to appeal on jurisdictional grounds because he failed to file it within the time period required by MCR 7.205(G)(3). Defendant-appellant is allowed an additional fourteen days to submit a new application addressing that question only. If the new application is not submitted on or before July 20, 2018, this matter will be administratively dismissed. This order shall serve as notice of the possible administrative dismissal under MCR 7.317(B). | [
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On order of the Chief Justice, the motion of defendant-appellant to file an application for leave to appeal in excess of the page limitation is GRANTED. The 60-page application submitted on June 1, 2018, is accepted for filing. | [
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On order of the Court, the application for leave to appeal the May 18, 2018 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). The motion contesting failure to file responsive pleading is DENIED. | [
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On order of the Court, the application for leave to appeal prior to decision by the Court of Appeals is considered, and it is DENIED, because the Court is not persuaded that the questions presented should be reviewed by this Court before consideration by the Court of Appeals. | [
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On order of the Court, the application for leave to appeal the April 19, 2018 judgment of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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On order of the Court, the motion for immediate consideration is GRANTED. The application for leave to appeal the January 23, 2019 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the question presented should be reviewed by this Court. | [
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On order of the Court, the motion for reconsideration of this Court's December 21, 2018 order is considered, and it is DENIED, because we are not persuaded that reconsideration of our previous order is warranted. MCR 7.311(G). | [
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On order of the Court, the motion for reconsideration of this Court's February 4, 2019 order is considered, and it is DENIED, because we are not persuaded that reconsideration of our previous order is warranted. MCR 7.311(G). | [
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On order of the Court, the motion for reconsideration of this Court's March 5, 2019 order is considered, and it is DENIED, because we are not persuaded that reconsideration of our previous order is warranted. MCR 7.311(G). | [
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On order of the Court, the application for leave to appeal the December 21, 2017 order of the Court of Appeals is considered, and it is DENIED, because the defendant has failed to meet the burden of establishing entitlement to relief under MCR 6.508(D). | [
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Gleicher, J.
Frank Shepard Fairey is an internationally acclaimed artist best known for creating a red, white, and blue poster of then presidential candidate Barack Obama, entitled Hope . Fairey launched his career by designing stickers that adorned skateboards and t-shirts. Over the years, his artistic repertoire expanded to include posters, prints, and larger works, including murals. Fairey's work combines elements of graffiti and pop culture; his themes often thumb a nose at authority and champion dissent. Anyone can buy Fairey's portable artworks (including posters and stickers) from his website, www.obeygiant.com.
Fairey's signature image is a cartooned face that he has dubbed "Obey Giant." Fairey has boasted of his exploits in applying posters and stickers sporting Obey Giant in public places without the permission of the owners. See Schjeldahl, Hope and Glory: A Shepard Fairey Moment, The New Yorker (February 23, 2009), pp 79-80, available at < < https://www.newyorker.com/magazine/2009/02/23/hope-and-glory>> (accessed August 20, 2018). This activity is known as "tagging."
In 2015, Bedrock Properties hired Fairey to design and create three large murals on its downtown Detroit buildings. Fairey arrived in Detroit sometime in May of that year; the exact dates of his stay are unknown. Local media commemorated his visit with interviews and articles about Fairey's life and works. Detroit Police Sergeant Rebecca McKay watched a television interview that month in which Fairey was asked whether he would be "leaving anything behind uncommissioned" when he left the city. Fairey responded, "[Y]ou'll just have to keep your eyes peeled." A newspaper article quoted Fairey as saying: " 'I still do stuff on the street without permission. I'll be doing stuff on the street when I'm in Detroit.' " Stryker, Street Artist Shepard Fairey Ready to Tag Detroit, Detroit Free Press , (May 16, 2015), p. 7A, available at < < https://www.freep.com/story/entertain%1fment/arts/2015/05/16/shepherd-fairey-detroit-mural/27459223/>> (accessed August 20, 2018).
McKay did some Internet research about Fairey. She came across a 2013 YouTube video in which Fairey admitted to putting up posters in illegal locations (he never mentioned Detroit). The video offers aspiring taggers a blueprint of the process. On May 22, 2015, McKay went on a hunt for illegal art containing the Obey Giant or other Shepard Fairey-esque images. She found posters harboring the icon (or a related one, called "Misfit") in 14 places around the city, mostly abandoned buildings or bridge and railroad abutments.
McKay decided that Fairey must have put up the illegal posters while he was in town. She had no evidence linking him to the posters and readily admitted that she had no idea when the illegal posters were installed. In McKay's estimation, the fact that the posters included the Obey Giant image and that Fairey had threatened to "do stuff on the street without permission" while in Detroit meant that he was responsible for the tagging. An examining magistrate agreed and bound Fairey over for trial on one count of malicious destruction of a building, $20,000 or more, MCL 750.380(2)(a), and two counts of malicious destruction of property, bridges/railroads/locks, MCL 750.379.
The circuit court quashed the information and dismissed the charges, finding (among other things) that the prosecution failed to present evidence establishing Fairey's identity as the tagger. We agree, and affirm.
I. GUIDING LEGAL PRINCIPLES
At a preliminary examination, the prosecution must present evidence establishing that the defendant committed the charged offense, and the district court must find that probable cause exists to bind over a defendant for trial. People v. Shami , 501 Mich. 243, 250-251, 912 N.W.2d 526 (2018). To satisfy this burden, the prosecution must present evidence of each and every element of the charged offense, or enough evidence from which an element may be inferred. People v. Seewald , 499 Mich. 111, 116, 879 N.W.2d 237 (2016). Identity is an essential element of every crime. People v. Oliphant , 399 Mich. 472, 489, 250 N.W.2d 443 (1976). Accordingly, to warrant a bindover, the prosecution must produce evidence that a crime was committed and that probable cause exists to believe that the charged defendant committed it.
Probable cause is established if the evidence would persuade a careful and reasonable person to believe in the defendant's guilt. People v. Yost , 468 Mich. 122, 126, 659 N.W.2d 604 (2003). Evidence supporting that the defendant perpetrated the crime may be circumstantial, but must nevertheless demonstrate reasonable grounds to suspect the defendant's personal guilt. People v. Tower , 215 Mich. App. 318, 320, 544 N.W.2d 752 (1996). The evidence considered must be legally admissible. People v. Walker , 385 Mich. 565, 575-576, 189 N.W.2d 234 (1971), overruled on other grounds by People v. Hall , 435 Mich. 599, 460 N.W.2d 520 (1990).
We review a district court's bindover decision for an abuse of discretion. Seewald , 499 Mich. at 116, 879 N.W.2d 237. An abuse of discretion occurs when the district court's decision " 'falls outside the range of principled outcomes.' " Id ., quoting Epps v. 4 Quarters Restoration LLC , 498 Mich. 518, 528, 872 N.W.2d 412 (2015).
II. ANALYSIS
The prosecution failed to establish probable cause that Fairey tagged the 14 buildings bearing the Obey Giant or other signature images.
We must review the evidence in the light most favorable to the prosecution, and we will assume that all of the prosecution's evidence was legally admissible. Even with the benefit of these presumptions, the prosecution failed to paint a picture suggesting that Fairey committed the crimes.
Several holes in the prosecution's evidentiary canvas doom its case. The prosecution presented no facts establishing when the illegal posters were installed or the length of time they had been present before McKay spotted them. McKay conceded that the artwork could have been on the walls long before her hunt for evidence implicating Fairey revealed them. No witnesses saw Fairey post any illegal artwork during his sojourn in Detroit, and the prosecution brought forward no evidence that Fairey had an opportunity or the means to travel around the city tagging buildings while also working on the commissioned murals. Although the prosecution makes much of the fact that the illegal art bore Fairey's signature imagery, McKay testified that the tags were all removable posters; the damage occasioned by their removal underlies the prosecutor's malicious-destruction charges. Proving that a piece of art was created by a particular artist usually requires expert testimony. See Greenberg Gallery, Inc. v. Bauman , 817 F.Supp. 167, 170-174 (D. D.C., 1993). That is not a significant concern here, though, because none of the tags were painted by hand and, as we have mentioned, Fairey's posters and stickers are easy to purchase on the Internet.
The district court judge gave short shrift to these evidentiary deficiencies and instead focused on Fairey's statements to the press. The judge declared that the media comments "all amount[ ] to one big fat admission."
Precisely what Fairely "admitted" in these interviews is difficult to discern. Telling an audience that "you'll just have to keep your eyes peeled" for illegal art and that he anticipated "do[ing] stuff on the street without permission" sounds like an artist playing a street-smart scoundrel. These statements might convince a person of ordinary prudence and caution that Fairey wanted to tag some buildings while he was in Detroit. What is missing is evidence that Fairey did tag the buildings.
In one of his best-known opinions, Justice Robert Jackson elegantly explained that a crime consists of a "concurrence of an evil-meaning mind with an evil-doing hand...." Morissette v. United States , 342 U.S. 246, 251, 72 S.Ct. 240, 96 L.Ed. 288 (1952). A wrongful act is an essential element of the malicious-destruction-of-property crimes with which Fairey stands charged. It is not a crime to fantasize (even publicly) about putting up posters on property that does not belong to you. Vincent van Gogh said, "I dream of painting and then I paint my dream." Fairey dreamed aloud, but no evidence exists that Fairey's hands painted his dreams or even touched the 14 tagged buildings.
The district court abused its discretion in binding Fairey over for trial by failing to distinguish between a suspicion of guilt and a reasonable belief that Fairey was the person who committed the crime. True, a district court may also rely on inferences to establish probable cause for a bindover. But a person of ordinary prudence and caution could not infer that Fairey carried out his veiled threats to tag absent any actual evidence linking Fairey to the acts of tagging. Mere suspicion is not the same as probable cause, and the record gives us nothing more. People v. Nunez , 242 Mich. App. 610, 624, 619 N.W.2d 550 (2000) ( O'CONNELL , J., concurring).
We affirm.
Cameron, P.J., and Fort Hood, J., concurred with Gleicher, J.
''https://perma.cc/AZV5-VY83.
Vincent van Gogh: Paintings, Drawings, Quotes, and Biography< < https://www.vincentvangogh.org/>> [https://perma.cc/WXA9-GJ9-GJ9H]. | [
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On March 6, 2019, the Court heard oral argument on the application for leave to appeal the February 18, 2016 judgment of the Court of Appeals. On order of the Court, the application is again considered. MCR 7.305(H)(1). In lieu of granting leave to appeal, it appearing to this Court that the case of People v. Betts (Docket No. 148981) is pending on appeal before this Court and that the decision in that case may resolve an issue raised in the present application for leave to appeal, we ORDER that the application be held in ABEYANCE pending the decision in that case. | [
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On order of the Court, the application for leave to appeal the February 25, 2019 order of the Court of Appeals is considered, and it is DENIED, because we are not persuaded that the questions presented should be reviewed by this Court. | [
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Subsets and Splits