Estate of Matt Malnar v. Ivan Malnar

Michigan Court of Appeals·Decided September 5, 2024·No. 366963·Unpublished

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

In re MALNAR ESTATE.

CHARLENE RITTER, as Personal Representative of UNPUBLISHED the ESTATE OF MATT MALNAR, September 5, 2024

Plaintiff/Counterdefendant-Appellant,

v No. 366963 Delta Probate Court IVAN MALNAR, LC No. 21-022770-CZ

Defendant/Counterplaintiff-Appellee.

Before: SWARTZLE, P.J., and K. F. KELLY and YOUNG, JJ.

PER CURIAM.

In this action to quiet title, plaintiff/counterdefendant, Charlene Ritter, as Personal Representative of the Estate of Matt Malnar, appeals as of right the probate court’s June 29, 2023 order granting summary disposition to defendant/counterplaintiff, Ivan Malnar, under MCR 2.116(C)(10) (no genuine dispute of material fact) and denying Ritter’s competing motion for summary disposition on defendant’s counterclaim under MCR 2.116(C)(10). Ritter seeks reversal of the probate court’s order, arguing the court erred in finding that the quitclaim deed granting Ivan title to the disputed property had been delivered. We affirm the probate court’s grant of summary disposition to Ivan on Ritter’s initial claim to quiet title because the deeds were considered delivered based on the parties’ intent and subsequent actions. We also affirm the probate court’s denial of summary disposition to Ritter on Ivan’s counterclaim because whether Ivan had title to the disputed property by adverse possession is moot.

-1- I. FACTUAL AND PROCEDURAL HISTORY

This appeal arises from a decades-long dispute in ownership over a 40-acre parcel of land the parties1 refer to as “the West 1/2.” The entire property involved is an 80-acre parcel more particularly described as: “the East 1/2 of the Southeast 1/4 of Section 16, Township 40 North, Range 21 West,” but is more commonly referred to throughout the record as “the East 1/2 of the Southeast Quarter of Section 16.” To clarify, there is the “West 1/2” of the East 1/2 of the Southeast Quarter of Section 16, the parcel in dispute, and the “East 1/2” of the East 1/2 of the Southeast Quarter of Section 16, ownership of which is settled.

A. INITIAL CONVEYANCE

Matt Malnar married Helen, and the two had several children, including Ivan, who is married to Jodi Malnar, and Raymond, who is married to Suk Malnar. Ritter is Raymond’s daughter. Matt was granted the deed to the entire 80-acre property in fee simple on May 11, 1938. On May 2, 1979, in a deed drafted by Matt’s Attorney Robert Hansley, Matt and Helen quitclaimed the East 1/2 of the property to Matt and Ivan “as joint tenants, and not as tenants in common.” Ivan testified that after this, Matt put “two or three acres” from the West 1/2 into Ivan’s name, and Ivan built a house there which he continues to occupy. Ivan also testified that with Matt’s permission, he constructed a sawmill on the West 1/2 in 1970. Matt told Ivan which portions of the West 1/2 would be ideal to build the sawmill.

B. CORRECTING ERROR IN INITIAL CONVEYANCE

Matt died on February 29, 1988. After Matt’s death, title to the East 1/2 passed exclusively to Ivan under the 1979 quitclaim deed. Ivan’s attorney at the time, Russell Hall, wrote to him in September 1988, stating: “I have reviewed the problem with the existing deeds and the Last Will of [Matt Malnar],” referring to the 1979 quitclaim deed conveying the East 1/2 to Matt and Ivan as joint tenants. Attorney Hall testified “it was clear there was an error in the legal description” contained in the 1979 quitclaim deed. Attorney Hall’s letter recommended the following steps to remedy the error in the 1979 quitclaim deed, which was supposed to convey the West 1/2 to Ivan, not the East 1/2: (1) Ivan was to obtain a quitclaim deed to the West 1/2 from each of Matt’s heirs, and (2) Attorney Hall was to draft a Scrivener’s Affidavit for Hansley to execute, stating the 1979 quitclaim deed meant to convey the West 1/2, not the East 1/2, to Ivan. The letter stated an additional safeguard would be to probate Matt’s estate which purported to contain the East 1/2. Attorney Hall assured Ivan that if those steps were completed, Delta Abstract & Title, the company that was to prepare the deeds from each of Matt’s heirs, would be willing to insure title of the West 1/2 in Ivan. Attorney Hall also wrote “in order to give Raymond good title to a portion of the property from the probate estate, [Ivan] would need to execute a quit-claim deed conveying to [Raymond] all of [Ivan’s] interest in the East 1/2 . . . .” Finally, Attorney Hall wrote “I have forwarded the quit-claim deeds to you so that you could discuss this with parties prior to executing

1 Because multiple parties share the last name “Malnar,” they are referred to by their first names throughout this opinion.

-2- the quit-claim deeds.” Attorney Hall did not recall ever drafting a deed conveying the East 1/2 to Raymond.

Another letter from Attorney Hall to Raymond dated August 27, 1990, purports to enclose a quitclaim deed for Raymond to convey his portion of the West 1/2 to Ivan. The next day, August 28, 1990, Attorney Hansley, who drafted the 1979 quitclaim deed conveying the East 1/2 of the property to Matt and Ivan as joint tenants, signed an Affidavit of Scrivener’s Error, wherein he averred the 1979 quitclaim deed was meant to convey the West 1/2 of the property, not the East 1/2, to Matt and Ivan. This would have placed ownership of the East 1/2 back to Matt’s estate, and granted the West 1/2 to Matt and Ivan as joint tenants, wherein the West 1/2 would pass to Ivan automatically at Matt’s death. From August 1990 onward, the parties operated under the assumption that the Scrivener’s Affidavit was valid, that Ivan held title to the West 1/2, and Matt’s estate held title to the East 1/2.

C. THE SIX QUITCLAIM DEEDS

In keeping with the recommendations to correct the error in the 1979 quitclaim deed, between 1990 and 1994, Attorney Hall drafted six quitclaim deeds from each of Matt’s heirs: (1) Helen, (2) Raymond and Suk, (3) Leonard and Judy Peterson, (4) Michael and Delores Ettenhofer, (5) Leonard and Angie Clemens, and (6) Matt Malnar Jr. and Laurel Malnar. Each of the deeds quitclaimed the heirs’ interests in the West 1/2 to Ivan and Jodi as tenants by the entirety. The deeds were drafted by Attorney Hall and sent to each heir. Each deed was fully executed and notarized, but the deeds were never recorded. In a November 5, 1990 letter to Ivan, Attorney Hall wrote that he received two of the “properly executed deeds,” one from Matt Jr. and one from Delores Ettenhofer, and asked Ivan to send the quitclaim deeds from the other heirs. Relevant to this appeal, Raymond and Suk Malnar conveyed the West 1/2 by quitclaim deed to Ivan and Jodi as tenants by the entirety on February 17, 1994.

It is unclear from the record if or when all the deeds were sent to Attorney Hall. Attorney Hall testified he did not know what happened to the deeds after he drafted them, but he intended that each one be signed and recorded, “[o]therwise, a few of the deeds doesn’t accomplish anything.” Ultimately though, the quitclaim deeds ended up in the possession of Delta Abstract & Title. Ivan asserted that once all the deeds were returned to Hall, they were forwarded to Delta Abstract & Title so it could provide Ivan title insurance. Attorney Hall testified he assumed Delta Abstract & Title was holding the deeds as an escrow agent in anticipation of collecting all of them before finalizing the transaction to convey the West 1/2 to Ivan. Ivan did not recall ever receiving any of the deeds.

On March 18, 1994, Ivan was able to mortgage the West 1/2 to secure a $525,000 loan from First Bank, Upper Michigan.

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