Fowler v. Doan

683 N.W.2d 682
Michigan Court of Appeals·Decided July 7, 2004·No. 245335·Published·Cited by 13 cases

Opinion

683 N.W.2d 682 (2004)
261 Mich.App. 595

Gerald F. FOWLER and Roseann Fowler, f/k/a Roseann Spitzig, Plaintiffs/Counter-Defendants-Appellees,
v.
Robert A. DOAN, Sr. and Lina Doan, Defendants/Counter-Plaintiffs/Third-Party Plaintiffs-Appellants,
v.
James A. Dondero and First American Title, Third-Party Defendants-Appellees.

Docket No. 245335.

Court of Appeals of Michigan.

Submitted March 3, 2004, at Lansing.
Decided April 20, 2004, at 9:00 a.m.
Released for Publication July 7, 2004.

*683 Plunkett & Cooney, P.C. (by Jeffrey C. Gerish), Bloomfield Hills, for Gerald F. and Roseann Fowler, James A. Dondero, and First American Title Insurance Company.

Charles G. Hoffman, P.C. (by Charles G. Hoffman), Cheboygan, for Robert A. Doan, Sr., and Lina Doan.

Before: SAWYER, P.J., and BANDSTRA and SMOLENSKI, JJ.

SMOLENSKI, J.

In this action to quiet title, plaintiffs Gerald F. and Roseann Fowler and defendants Robert A. Doan, Sr., and Lina Doan claimed rightful ownership by record title of a sixty-six-foot-wide piece of property located in Mentor Township, Cheboygan County. This property was formerly used as a railroad spur. Defendants appeal as of right from the trial court's judgment quieting title to the disputed land in plaintiffs.[1] We affirm.

On February 2, 1996, plaintiffs purchased by way of land contract a triangular-shaped *684 piece of property consisting of approximately 3.37 acres, and promptly recorded their deed. On July 31, 1996, defendants purchased by way of quitclaim deed any and all interest the United Railway Corporation possessed in approximately 6.8 miles of an abandoned railroad corridor. This property included a sixty-six-foot-wide strip of land that passed through plaintiffs' 3.37 acres. The problem apparently came to light when defendants attempted to sell the strip of land at issue. Plaintiffs became aware of defendants' claim of interest and submitted a claim to their title insurance company, third-party defendant First American Title Insurance Company. A week later, plaintiffs received a letter from First American Title's legal counsel, third-party defendant James Dondero, informing them that, under Michigan law, defendants held no interest in the strip of land at issue; however, because their policy did not cover the acts of trespassers, plaintiffs' claim was denied.[2] Plaintiffs subsequently filed this action to quiet title.

Both parties produced their respective chains of title that traced back to conveyances made by Norman and Nora Beverly. In 1905, the Beverlys deeded the strip of land in question to the Jackson, Lansing & Saginaw Railroad, which in turn conveyed the property to the Michigan Central Railroad Company in 1916. In 1995, the Michigan Central Railroad Company merged into the United Railroad Corporation, which then deeded the strip of land to defendants on July 31, 1996. It is undisputed that there were no recordings with respect to this property from 1916 until defendants recorded their deed in July 1996.

The root of the problem stems from a conveyance of a large piece of property made by the Beverlys in 1911 to Jonathon Royce, executed by way of warranty deed, that included the property currently owned by plaintiffs. There were no exceptions in this deed for the railroad property previously conveyed by the Beverlys in 1905. This larger piece of property was subsequently transferred several times. Each owner since 1939 properly recorded the owner's interest. The evidence showed that a good, uninterrupted chain of titled existed from at least 1939 to February 2, 1996, a period of fifty-seven years.

Following a bench trial, the trial court concluded that pursuant to the marketable record title act, MCL 565.101 et seq., plaintiffs held superior title. In its opinion, the court stated:

There are two chains of title to this parcel, and there was clearly a defect in Plaintiffs' chain in that the Beverlys had already deeded out their interest in the disputed strip prior to their deed of the same property which is contained in Plaintiffs' chain of title. Defendants' chain, however, lies dormant from 1916 to 1996, a period of 80 years. Since Plaintiffs' chain of record title exceeds 40 years prior to 1996, they are entitled to hold this property free and clear of any claim by the Defendants.

Defendants' sole argument on appeal is that the trial court erred in deciding this case pursuant to the provisions of the marketable record title act. Defendants assert that the act does not apply in situations such as this where there are two valid competing claims of title. An action to quiet title is an equitable action, and the findings of the trial court are reviewed for *685 clear error while its holdings are reviewed de novo. Killips v. Mannisto, 244 Mich.App. 256, 258, 624 N.W.2d 224 (2001). Also, the applicability of a statute is a question of law that this Court reviews de novo. Adams Outdoor Advertising, Inc. v. City of Holland, 463 Mich. 675, 681, 625 N.W.2d 377 (2001).

The primary goal of judicial interpretation of statutes is to ascertain and give effect to the intent of the Legislature. Frankenmuth Mut. Ins. Co. v. Marlette Homes, Inc., 456 Mich. 511, 515, 573 N.W.2d 611 (1998). Courts may not speculate regarding the probable intent of the Legislature beyond the language expressed in the statute. Pohutski v. City of Allen Park, 465 Mich. 675, 683, 641 N.W.2d 219 (2002). Further, a court may not inquire into the knowledge, motives, or methods of the Legislature, McDonald Pontiac-Cadillac-GMC, Inc. v. Prosecuting Attorney for Co. of Saginaw, 150 Mich.App. 52, 55, 388 N.W.2d 301 (1986), and may not impose a construction on a statute based on a policy decision different from that chosen by the Legislature, Robertson v. DaimlerChrysler Corp., 465 Mich. 732, 752, 641 N.W.2d 567 (2002).

MCL 565.101 provides that, subject to certain exceptions regarding prior claims of interest that are not applicable in this case, any person who has an unbroken chain of title for over forty years has marketable record title in that interest. Here, the evidence established that plaintiffs had an unbroken chain of title from at least 1939 to February 1996, when plaintiffs recorded their interest. See MCL 565.102. MCL 565.103 further provides, in part:

Marketable title shall be held by a person and shall be taken by his or her successors in interest free and clear of any and all interests, claims, and charges whatsoever the existence of which depends in whole or in part upon any act, transaction, event, or omission that occurred prior to the 20-year period for mineral interests, and the 40-year period for other interests, and all interests, claims, and charges are hereby declared to be null and void and of no effect at law or in equity.

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Fowler v. Doan, 683 N.W.2d 682 (Mich. Ct. App. 2004).

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