Harper Land Company LLC v. Jay C Carll

Michigan Court of Appeals·Decided July 17, 2026·No. 372804·Unpublished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

HARPER LAND COMPANY, LLC, UNPUBLISHED July 17, 2026 Plaintiff/Counterdefendant-Appellant, 10:05 AM

v No. 372804 Wayne Circuit Court JAY C CARLL and WAYNE COUNTY LC No. 21-013053-CH TREASURER,

Defendants, and

OUTFRONT MEDIA LLC, formerly known as CBS OUTDOOR INC., and OUTDOOR EQUITIES LLC,

Defendants/Counterplaintiffs- Appellees

Before: RIORDAN, P.J., and GARRETT and MARIANI, JJ.

PER CURIAM.

Plaintiff/Counterdefendant, Harper Land Company LLC (“HLC”), appeals by right the trial court’s partial award of summary disposition to defendants/counterplaintiffs Outfront Media LLC (“Outfront”) and Outdoor Equities LLC (“Outdoor”). HLC also challenges the trial court’s partial denial of its related motion for reconsideration. We affirm.

I. BACKGROUND

This case arises from a dispute over easements for a billboard that burden the real property located at 11001 Hern, Detroit, MI 48213 (“the Property”). Since 2000, Outfront (inclusive of its predecessors-in-interest) has leased the Property to display a billboard. In October 2011, defendant Jay C. Carll purchased the Property from the Michigan Land Bank Fast Track Authority for $6,000. On March 18, 2014, Carll entered into a lease agreement (the “Lease Agreement”) with Outfront,

-1- then doing business as CBS Outdoor Inc., for display of a billboard.1 Then, in April 2015, Carll entered into an agreement with nonparty 8150 Fulton LLC (“Fulton”) that granted to Fulton four perpetual easements over the Property (the “Easement Agreement”). The “Billboard Sign Structure(s) Easement” (“Billboard Easement”) granted “[a]n exclusive easement over, under and above” a specified “area of the Property . . . for the purpose of [Fulton] and/or its agents and tenants to construct, install, repair, replace, operate, utilize, lease, and maintain thereon” a billboard. The “Access Easement” allowed for “ingress and egress over all of the Property . . . for exclusively constructing, reconstructing, erecting, installing, repairing, replacing, relocating, operating, utilizing, leasing, servicing[,] maintaining[,] and removing the Billboard.” The “Utility Easement” allowed for the “installation, operation[,] and maintenance” of utilities that “may be reasonably necessary or appropriate in order to afford adequate illumination of the Billboard.” And the “Visibility Easement” granted “[a]n exclusive easement upon, over and/or across all of the area of the Property . . . to ensure the unobstructed display of advertising on the Billboard to vehicular traffic approaching and passing the Property,” with Carll “agree[ing] not to implement or to allow” structures or other items on the Property that cause such obstruction and “not to construct nor allow” any other “advertising sign structures on the Property.”

The Easement Agreement provided, among other things, that it “shall be binding upon and inure to the benefit of the parties hereto” and their “successors and assigns”; that it “shall run with the land upon which the Easement is located”; that Fulton “will have the absolute and unconditional right to assign or sublease its rights hereunder at its sole discretion, including the benefits and burdens”; and that “[t]he Easements will run with the land and are imposed on the Property as equitable servitudes in favor of” Fulton. Among the “Representations and Covenants” that Carll made to Fulton as part of the Easement Agreement was that he “shall pay all taxes and take all other actions necessary to avoid forfeiture of the Property.” Also as part of the Easement Agreement, Carll assigned to Fulton his rights under the Lease Agreement with Outfront.

The Easement Agreement was recorded in the Wayne County Register of Deeds in July 2015. At some point after conveying the easements, Carll stopped paying property taxes on the Property. Eventually, the Property was forfeited to defendant Wayne County Treasurer and placed in foreclosure in March 2019, where it went unredeemed. In July 2019, Fulton assigned its rights under the Easement Agreement and Lease Agreement to Outdoor for $99,000. A copy of Fulton’s assignment of the Easement Agreement was recorded as well.

In September 2019, HLC purchased the Property for $28,000 at auction. As the property owner, HLC demanded rent payments from Outfront for the display of its billboard. According to Outfront, it was paying rent to Outdoor at that time but, in response to HLC’s demand, it began paying rent to both HLC and Outdoor. Eventually, Outfront decided to end this arrangement. It advised HLC that Outdoor’s easements survived the tax foreclosure sale and that Outdoor remained the landlord under the Lease Agreement. Outfront maintained that this made Outdoor

1 In March 2013, between Carll’s initial purchase of the Property and the execution of the Lease Agreement, Carll conveyed the Property to nonparty Media Lease Advisors LLC. The Property was conveyed back to Carll later that year.

-2- the proper recipient of its rent payments, and so Outfront ceased paying rent to HLC and demanded a refund of its past payments. HLC refused, and this litigation ensued.

HLC filed suit against Carll, Outfront, and Outdoor to quiet title and for declaratory relief to extinguish any and all interests under the Lease Agreement and Easement Agreement.2 HLC also sued Outfront for breach of contract and Outdoor for tortious interference with a business expectancy. Outfront and Outdoor each responded with counterclaims against HLC for quiet title and declaratory relief, with Outfront also alleging unjust enrichment against HLC and Outdoor alleging tortious interference with a business relationship against HLC.3

During the litigation, HLC obtained an appraisal of the Property. The appraisal provided three different valuations of the Property. Without the easements but with the billboard lease in place, the Property had a hypothetical market value of $130,000. Without either the lease or the easements, the hypothetical market value of the Property was $20,000. And the appraisal opined that the “as is” market value of the Property with the easements was $0, given that the easements rendered the Property “mostly unusable for development” for other uses and left “abandonment” as the “[t]he highest and best use of the site as is” for its owner.

On June 5, 2021, Outfront moved for summary disposition under MCR 2.116(C)(8) and (C)(10). Outfront argued, in pertinent part, that the easements survived the tax foreclosure sale because they were duly recorded. See MCL 211.78k(5)(e) (providing that “all existing recorded and unrecorded interests in [the foreclosed] property are extinguished, except a visible or recorded easement . . . .”). Therefore, Outfront reasoned, Outdoor remained the easement holder entitled to rent payments under the Lease Agreement. Outdoor concurred with the relief sought in Outfront’s motion.

HLC also moved for summary disposition under MCR 2.116(C)(10). As relevant here, HLC argued that the easements were invalid because they were not “true easements” but instead essentially gave the easement holder, Outdoor, an interest in fee simple. Moreover, HLC argued that the easements—which it characterized as easements in gross—violated public policy by rendering the Property valueless. According to HLC, the easements frustrated the purpose of the General Property Tax Act (“GPTA”), MCL 211.1a et seq., which is to “encourag[e] the efficient and expeditious return to productive use of property returned for delinquent taxes.” MCL 211.78(1).

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