Greenough v. Greenough

93 N.W.2d 391, 354 Mich. 508, 1958 Mich. LEXIS 324
CourtMichigan Supreme Court
DecidedDecember 2, 1958
DocketDocket 56, Calendar 47,563
StatusPublished
Cited by21 cases

This text of 93 N.W.2d 391 (Greenough v. Greenough) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenough v. Greenough, 93 N.W.2d 391, 354 Mich. 508, 1958 Mich. LEXIS 324 (Mich. 1958).

Opinion

Smith, J.

There is little of law in this case and much of fact. It is a divorce action. The wife sued for divorce and got it. Neither party is complaining about that. The controversy rages over the property. The litigation has been protracted, some 8 .law firms having participated therein. Plaintiff has enjoyed the services of 4, and defendant of an equal number. The trial chancellor observed, after “many "hours of study of the exhibits herein (between 40 and 50, which include deeds, audits, leases, checks, "et cetera) and the review of the days of testimony” (that “to do complete justice in this case would re"quire' a chancellor of extraordinary perception plus *511 -the combined efforts of skilled accountants and a ■real-estate specialist who could foresee the future.”, "We agree. j

The parties were married on May 29,1947. There are no children of this marriage. Both had been married before. The plaintiff, the wife, brought property -worth some $67,000 to the marriage. Part of this was real estate consisting of 12 lots on the north side of 12-Mile road in the city of Berkley, Michigan, and the McMehen building on the south ■ side of 12-Mile road. The defendant, the husband, in the words of the trial chancellor, “brought little to the marriage in terms of money or property.” He was, however, in the real-estate business (in fact, he and plaintiff first met on a business matter) and he brought to the marriage a business acumen and skill in this field, amply evidenced in the record before us. Even prior to the marriage, defendant managed plaintiff’s property and assisted her in financial dealings involving the estate of Dr. Charles McMehen, her' deceased former husband. Subsequently, defendant worked diligently to convert undeveloped property on 12-Mile road into a shopping .center. The Greénough Corporation was formed in December of 1947, to hold the latter in corporate form .in.order to “buy, sell, mortgage, promote, build ' and lease real estate.” At the time of entry of the decree of divorce, there were 3 stockholders in the corporation, namely, plaintiff, holding 9,913 shares, defendant holding, 9,912 shares, and plaintiff acting ■as guardian for her minor daughter, Margaret Ann ..McMehen, holding 10,575 shares. This corporation built and now owns the shopping center described in the litigation. The trial chancellor summarized defendant’s activities in the creation of the shopping center in the following portion of his opinion:

*512 “The former husband of the plaintiff (Dr. MeMehen) as early as 1941 had made plans for a shopping center on the site of the present one owned by the G-reenough Corporation. However, the land which came from Dr. McMehen’s estate was not sufficient in size for the present operation. More lots had to be acquired, an alley vacated, parlcing had to be provided and many changes made due to the changes in the concept of business centers. The deeds for the needed land for the center were obtained December 31, 1946. In the spring of 1947 defendant commenced work on getting leases for the center. In December of 1947 the Greenough Corporation, a Michigan corporation, was formed, the stock in which is owned by the plaintiff, her daughter and the defendant. Said corporation did build and now owns a modern shopping center which is well described by words, pictures and drawing contained in exhibit 11, to which reference is made. The center was completed in the spring of 1949.
“After stressing the fact that plaintiff brought to the marriage money and property of the value of $67,358.53 some of which was used either directly or indirectly in bringing about the present financial status of the parties, attention is directed to some of the things done by the defendant:
“1. (a) Arranged for a mortgage on McMehen building of $32,000.
“(b) Upgraded tenants and rent in said building.
“2. Necessary additional lots (6) were acquired for the proposed center.
“3. Procured (with outside assistance) the 3 basic leases, and then lesser ones.
“4. Negotiated setback of alley (-relocation of poles of phone company, Edison and Consumers Power). “5. Attended to rezoning.
“6. Procured a promise of a $437,000, 4% mortgage from the Northwest Mutual Life Insurance Co. in February of 1948.
“7. Procured plans and specifications and got estimates for the center.
*513 “8. Let contracts in March of 1948.
“9. Northwest Mutual mortgage reneged on loan and then defendant procured a commitment of $400,000 from Massachusetts Mutual.
“10. Procured a required completion bond from St. Paul Mercury Co.
“11. Massachusetts Mutual money ($400,000) was $85,000 short of what was needed — which created problem to be met.
“12. Litigation and liens contended with.
“13. Rents were assigned to Massachusetts Mutual who collected rents until June of 1953.
“14. Induced St. Paul Indemnity to take second mortgage which has been retired, et cetera.
“15. Procured final Prudential mortgage which took up existing mortgages and returned the management and collection of rentals to the parties hereto or to the officers of the corporation.
“It is not difficult to believe that during these days the defendant put in from 16 to 18 hours per day in the interest of the corporation. The plaintiff recognized, as was only fair and reasonable, the contributions of the defendant and so he was paid for his efforts, by being alloted by the issuance of stock, a 1/3 interest in said corporation.” (Italics the court’s.)

Having concluded that divorce was warranted upon the evidence, it was so decreed. As to property, the trial chancellor made a nearly, equal division thereof between husband and wife. This is attacked by plaintiff as an “abuse of discretion” in various particulars, upon those of which meriting our attention we shall comment.

First, the mortgage referred to by the court as having been arranged by defendant is said to have been “procured by C. Harmon Company.” We are referred to page 103a of the appendix as supporting this statement. The portions of page 103a referring to the matter are as follows:

*514 “Q. Let’s come down, to the mortgage that you obtained, you say from the Provident Mutual Life Insurance Company on the McMehen building some years ago, was not Mr. Plerman the man who made arrangements for the mortgage?
“A. His father was alive then and his name was Claud Harmon and Austin C. Harmon.
. “Q. Did the mortgage, that is to say the Provident Mutual people, did they have an appraisal made of the building?
“A: The C. M.

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Bluebook (online)
93 N.W.2d 391, 354 Mich. 508, 1958 Mich. LEXIS 324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenough-v-greenough-mich-1958.