Gary Olszewski v. Kathy J Erdman Trust

Michigan Court of Appeals·Decided May 8, 2025·No. 369659·Unpublished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

GARY OLSZEWSKI, UNPUBLISHED May 08, 2025

Plaintiff-Appellant, 1:07 PM

v No. 369659 Wexford Probate Court

EMILY G. ERDMAN and RACHEL L. ERDMAN, LC No. 2023-001230-CZ as co-trustees of the KATHY J. ERDMAN TRUST,

Defendants-Appellees.

Before: BORRELLO, P.J., and RIORDAN and PATEL, JJ.

PER CURIAM.

In this dispute over the proceeds from the sale of decedent Kathy J. Erdman’s house in Cadillac, Michigan, plaintiff appeals as of right the probate court’s order dismissing the complaint for improper venue. For the reasons set forth in this opinion, we reverse and remand for further proceedings.

I. BACKGROUND

This action concerns real property located in Cadillac, Michigan previously owned by the decedent.1 Plaintiff resided on the property with the decedent for over six months. Prior to that, plaintiff lived with the decedent at her former residence in Lowell, Michigan. The decedent created a revocable living trust on April 17, 2018, which states that her Lowell residence would be distributed to plaintiff upon her death. The trust document indicates that the decedent was a resident of Kent County, Michigan, and that the trust is governed by the laws of the State of Michigan. It is also noted that the trust is exempt from registration as permitted by State law. At some point, the decedent sold the Lowell property and purchased the Cadillac property. While residing with the decedent at the Cadillac property, plaintiff and the decedent worked on improving

1 According to plaintiff’s affidavit, the home may have technically been owned by the decedent’s trust. However, conclusive resolution of this detail is not necessary to resolve the present appeal.

the property with the alleged intention of selling it. Both parties reportedly contributed to the costs of the improvements.

On March 8, 2023, plaintiff and the decedent entered into a contract that was handwritten, signed by both parties, and notarized in Wexford County. Some portions of the contract are difficult to read; however, it generally appears to provide plaintiff with a partnership interest in real estate investments in exchange for $250,000 from the proceeds of selling the Cadillac property, in consideration of plaintiff’s general contracting work on that property. The work covered by the contract included permits, tile, flooring, cement staining, foundation work, wood trim, wood ceilings, painting, basement rough-in, and subcontractor payments. The contract also stated, “No Claim on [L]owell School House investm.” It is noted that plaintiff’s builder’s license was in escrow at the time, as he was managing a restaurant. Plaintiff further indicated that the mechanical and heating work was contracted in writing through Advanced Mechanical, and the electrical work was contracted in writing through Taylor Electric. According to the complaint, the decedent passed away on March 25, 2023, prior to the sale of the Cadillac property. The provision in the trust concerning the Lowell property was reportedly never modified or updated. Plaintiff filed a claim against the decedent’s estate for $250,000, which was disallowed.

Plaintiff initiated this action in the Wexford Probate Court, alleging breach of contract and conversion against the decedent’s daughters, Emily Erdman and Rachel Erdman, who served as co-trustees of the decedent’s trust. The complaint stated that plaintiff sought to “determine an interest in land located in Wexford County, Michigan,” and indicated that the “facts and circumstances giving rise to this Complaint occurred in Kent County, Michigan.” It was noted that plaintiff and the decedent had entered into a contract prior to the decedent’s death, stipulating that plaintiff would receive a percentage of the Cadillac property in exchange for the Lowell property as identified in the decedent’s trust, along with investments made in the Cadillac property. The defendants were accused of breaching this contract or converting the proceeds of the Cadillac property by not paying the outstanding contract balance to plaintiff. The complaint also indicated that plaintiff resides in Florida.

The co-trustees filed for summary disposition under MCR 2.116(C)(8) and (C)(10). In relation to the present appeal, the co-trustees asserted that the venue in the Wexford Probate Court was improper because the trust was administered in Cook County, Illinois, where both co-trustees reside. They further claimed that the trust was not registered as it was exempt from registration by its own terms. Additionally, the co-trustees remarked that plaintiff had acknowledged his residency in Florida.

In response, plaintiff argued that the co-trustees had not properly changed the principal place of administration for the trust as mandated by statute. Plaintiff contended that the principal place of administration for the trust at the time of the decedent’s death was Wexford County, Michigan, and that it remained so due to the co-trustees’ failure to comply with statutory requirements for changing the place of administration. Plaintiff also argued that venue for proceedings involving an unregistered trust is appropriate in a place where the trust could have been registered, claiming that this trust could have been registered in Wexford County. Furthermore, plaintiff stated that he “completed work at the trust-owned property for his

occupancy and use while he and the Settlor lived on the property, making his work (and the contract between him and Ms. Erdman) exempt from the Builder’s Act.”

The probate court conducted a hearing and received oral arguments from both parties. At the conclusion of the hearing, the court ruled from the bench, determining that the matter would be dismissed due to improper venue in Wexford County. The court reasoned that the trust was not registered and that, in accordance with MCL 700.7209, the principal place of administration was Chicago, where the co-trustees resided and maintained records associated with the trust. The probate court issued an order stating that the venue was improper, resulting in the dismissal of the complaint for the reasons detailed on the record. Plaintiff’s subsequent motion for reconsideration was denied, leading to this appeal.

II. STANDARD OF REVIEW

The “power to establish the venue for causes of action” rests with the Legislature, and venue is thus “controlled by statute in Michigan.” Dimmitt & Owens Fin, Inc v Deloitte & Touche (ISC), LLC, 481 Mich 618, 624; 752 NW2d 37 (2008). Questions of statutory interpretation are reviewed de novo, but the trial court’s ruling on a motion to change venue is reviewed for clear error. Id.

“The primary goal of statutory interpretation is to give effect to the intent of the Legislature.” Brown v Mayor of Detroit, 478 Mich 589, 593; 734 NW2d 514 (2007). This Court begins by reviewing the language of the statute; if “the statutory language is unambiguous, the Legislature is presumed to have intended the meaning expressed in the statute and judicial construction is not permissible.” Id.

Regarding the clearly erroneous standard applicable to the trial court’s ruling on venue, “[c]lear error exists when the reviewing court is left with a definite and firm conviction that a mistake has been made.” Dimmitt & Owens, 481 Mich at 624.

To the extent the trial court’s ruling and the parties’ arguments implicate issues concerning subject matter jurisdiction, this Court reviews the question whether a lower court has subject- matter jurisdiction de novo, as an issue of law. Black v Cook, 346 Mich App 121, 128; 11 NW3d 563 (2023). As this Court has explained:

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Dimmitt & Owens Financial, Inc v. Deloitte & Touche (Isc), LLC
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Brown v. Mayor of Detroit
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In Re Wirsing
573 N.W.2d 51 (Michigan Supreme Court, 1998)