20250122_C367262_26_367262D.Opn.Pdf

CourtMichigan Court of Appeals
DecidedJanuary 22, 2025
Docket20250122
StatusUnpublished

This text of 20250122_C367262_26_367262D.Opn.Pdf (20250122_C367262_26_367262D.Opn.Pdf) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
20250122_C367262_26_367262D.Opn.Pdf, (Mich. Ct. App. 2025).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

CODY ROSS and MOLLY ROSS, UNPUBLISHED January 22, 2025 Plaintiffs-Appellants, 1:23 PM

v No. 367262 Sanilac Circuit Court ALEXANDRA J. DEEHAN, LC No. 22-039461-CZ

Defendant-Appellee.

Before: LETICA, P.J., and GARRETT and FEENEY, JJ.

FEENEY, J. (dissenting).

The trial court granted defendant’s motion for involuntary dismissal of plaintiffs’1 request for specific performance of a land sale contract. For the reasons discussed below, I conclude that the trial court erred when it granted the motion and respectfully dissent.

I. FACTS

In 1962, Robert Deehan purchased property located at 3741 Shabbona Road in Snover, Michigan (the “Property”). He never recorded his interest in the Property, but it is uncontested that he had title. Deehan lived at the Property until 2018 when he had a stroke and was brought to a permanent treatment facility. After his stroke, he was deemed legally incompetent, and Kelly Strozeski, a public guardian, was appointed as his legal guardian (“guardian”) in June 2018. She served this role until Deehan died in April 2020.

In 2013, Deehan executed a Last Will and Testament which devised all of his property to his daughter, defendant-appellee Alexandra Deehan (“defendant”), after debts, taxes, and burial

1 While only Cody Ross’s name was on the purchase agreement, the lower court caption included both Cody and Molly Ross as plaintiffs, and our caption reflects the caption from the appealed order. Defendant never questioned Molly Ross’ inclusion as plaintiff in this matter.

-1- costs were paid and $100 was left to each of her siblings. The same day, he also issued defendant a “Lady Bird” deed.2

Plaintiffs-appellants Cody and Molly Ross (“plaintiffs”) own property adjacent to the Property. After Deehan’s stroke, they were put in contact with the guardian, and eventually became interested in purchasing the Property. It is unclear from the record who first brought up the possibility of a sale, but there was mutual interest in selling the Property.3 After inspecting the Property and determining what renovations were necessary, plaintiffs offered a purchase price of $28,000.4 On December 17, 2019, plaintiffs drafted a purchase agreement that was contingent on the probate court’s approval and gave it to the guardian. On January 7, 2020, the guardian filed a petition in the probate court requesting permission to sell the Property. The petition included the purchase agreement as an attachment. The guardian served Robert Deehan, defendant, defendant’s brother, defendant’s friend, and plaintiff Cody Ross copies of the Notice of Hearing and Petition Regarding Real Estate/Dwelling via first class mail on January 7, 2020. The probate court had a hearing and approved the petition on February 10, 2020, pursuant to the terms of the purchase agreement. During the course of finalizing the sale, the process was delayed because it was discovered that Deehan had never properly filed his deed and he was not in the chain of title. During this delay, Deehan died on April 20, 2020. Plaintiffs waived the title defects and tried to continue with the purchase.

On May 18, 2020, defendant recorded her Lady Bird deed and claimed the Property as her own. Plaintiffs inquired about continuing the sale, but defendant did not want to sell the Property. Plaintiffs were still interested in purchasing the Property, and after learning about unpaid back taxes on the Property, paid two years’ worth of back taxes in December 2021 to avoid it going into foreclosure and preserve the opportunity to purchase the Property pursuant to the purchase agreement.

On January 21, 2022, plaintiffs brought suit in Sanilac Circuit Court seeking specific performance of a contract for the sale of the Property, or in the alternative, claiming unjust enrichment for the unpaid taxes. In her response to the complaint, defendant raised several defenses including a lack of consideration, title issues, and unjust enrichment against plaintiffs; she also stated that she did not want to sell the Property. In July 2023, the circuit court conducted a bench trial where plaintiffs put on two witnesses: the guardian and plaintiff Cody Ross. At trial, the guardian testified that it was standard practice for guardians to pursue the sale of property to

2 A Lady Bird deed, or an “enhanced life estate,” is a deed which reserves to the grantor the rights to sell, commit waste, and almost everything else. It conveys the rest which the grantor has not disposed of to the grantee in the event of the grantor’s death. See Black’s Law Dictionary (10th ed), p. 503. 3 The guardian testified that she did not seek out plaintiffs to purchase the property, and plaintiff Cody Ross testified that he and his wife needed to bring electricity to his adjacent property through the Deehan property when he learned that it might be for sale, so he contacted the guardian who informed him that they were looking to sell the property; after that, he submitted a purchase agreement to the guardian. 4 In 2019, Argyle Township found that the Property had a taxable value of $44,600.

-2- prevent spoliation and then to present the probate court with an offer. Once the probate court approved the sale, a guardian would work toward closing the sale as though there were a contract between the parties. The guardian also testified that the probate court approved the sale of the Property on February 10, 2020, pursuant to the terms in the purchase agreement. After the witnesses’ testimony, the defense moved for a directed verdict. The court stated that it would withhold judgement on the motion until after the conclusion of proofs, at which point the defense stated it would present no proofs. The court ruled from the bench and found that the contract did not satisfy the statute of frauds because the probate court order only gave the guardian permission to begin selling, and thus did not authorize a previous agreement; therefore, it was not enforceable against defendant. The court therefore ruled against plaintiffs’ claim for specific performance. The court also found that defendant had title to the Property,5 and plaintiffs were entitled to be repaid the amount they paid in back taxes. Finally, the trial court granted a motion for involuntary dismissal rather than directed verdict. This decision was issued in writing July 25, 2023, and from this decision, plaintiffs appeals.

II. ANALYSIS

The pivotal issue in this case is whether there was a contract between plaintiffs and the guardian for the sale of the Property. To analyze whether there was a contract, there are two important threshold issues: whether the guardian was authorized to enter into a contract to sell the Property, and whether a contract was formed that can satisfy the statute of frauds. If either of these issues are found in the negative, then there could be no valid contract and the guardian’s power to continue the sale proceedings terminated with Deehan’s death, so defendant would have the power to terminate the sale. If both threshold issues are found in the affirmative, however, then the guardian formed a contract to sell the Property which is enforceable even after the death of one of the parties.6

The powers of the guardian are enumerated in MCL 700.5422(3). Determining the scope of those powers is a question of statutory interpretation, which this Court reviews de novo. See Christie v Wayne State Univ, 511 Mich 39, 47; 993 NW2d 203 (2023).

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20250122_C367262_26_367262D.Opn.Pdf, Counsel Stack Legal Research, https://law.counselstack.com/opinion/20250122_c367262_26_367262dopnpdf-michctapp-2025.