In Re the Marvin Adell Childrens Funded Trust

CourtMichigan Court of Appeals
DecidedMay 19, 2022
Docket357133
StatusUnpublished

This text of In Re the Marvin Adell Childrens Funded Trust (In Re the Marvin Adell Childrens Funded Trust) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Marvin Adell Childrens Funded Trust, (Mich. Ct. App. 2022).

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 THE MARVIN ADELL CHILDRENS’ FUNDED TRUST.

RALPH LAMETI, Trustee, UNPUBLISHED May 19, 2022 Respondent-Appellant, and

KEVIN ADELL,

Respondent,

v No. 357133 Oakland Probate Court MICHAEL ADELL, RHONDA ADELL LC No. 2020-397042-TV SATOVSKY, LINDA ADELL FITZERMAN, and CLASSIC AMERICANA, LLC,

Petitioners-Appellees.

Before: JANSEN, P.J., and CAVANAGH and RIORDAN, JJ.

PER CURIAM.

Appellant, trustee of the Marvin Adell Childrens’ Funded Trust (MACFT), appeals as of right the probate court’s order denying his motion for summary disposition in part, granting it in part, and ordering that he not make any change in the ownership of certain real property. Appellant challenges only the portion of the probate court’s order prohibiting him and respondent, Kevin Adell, from making any changes in ownership to the property. Appellant argues that the probate court abused its discretion because it did not consider the necessary factors before issuing a preliminary injunction. He also argues that the probate court deprived him of due process by failing to notify him it was considering issuing a preliminary injunction. We affirm.

-1- I. FACTS

This case arises from appellant’s performance as trustee of the MACFT. Appellees are beneficiaries of the MACFT. Until 2015, the MACFT held an interest in a tract of real property in Novi, Michigan (the Novi property). In 2015, the Novi property was foreclosed on and sold to another party, thus depriving the MACFT of a significant asset.

In 2020, appellees petitioned the probate court to remove appellant as trustee and surcharge him for alleged breaches of his fiduciary duties. Soon after, appellant moved for summary disposition under MCR 2.116(C)(7), (C)(8), and (C)(10). Appellant argued that appellees’ claims were barred by the applicable statute of limitations and the doctrine of laches. He also argued that appellees failed to state a claim because the MACFT had been terminated after the foreclosure in 2015; hence, there was no trustee for the probate court to remove. And, in any case, appellant argued, there was no evidence he breached his duties. The probate court denied in part and granted in part appellant’s motion for summary disposition. Additionally, and most germane to this appeal, the probate court temporarily enjoined appellant from making any changes in ownership of the Novi property: I’m also ordering that there be—Kevin Lameti—I’m sorry, [appellant] and Kevin Adell shall make no changes in the ownership of the Novi Expo Center property, the property at issue here, whatever proper description that is, I guess it’s described in the real estate mortgage, it’s described in the Discharge of Mortgage, that there be no—that they make no changes whatsoever in the ownership of that property until further order of this court. So, that’s my order.

The probate court issued this preliminary injunction sua sponte, for there is nothing in the record to suggest either party requested an injunction. This appeal followed.

On appeal, appellant argues the probate court erred on two grounds. First, he argues the probate court abused its discretion by failing to apply correct legal principles when issuing a preliminary injunction. Second, he argues, by failing to notify appellant it was considering issuing a preliminary injunction, the probate court deprived him of due process. We address each argument in turn.1

II. ANALYSIS

We review for an abuse of discretion a court’s decision to grant injunctive relief. Pontiac Fire Fighters Union Local 376 v Pontiac, 482 Mich 1, 8; 753 NW2d 595 (2008). A court “abuses its discretion when its decision falls outside [the] range of principled outcomes.” Id. “An error of

1 We reject appellees’ argument that we lack jurisdiction to hear this appeal as of right. MCR 5.801(A)(2)(i) defines a final order as one “allowing, disallowing, or denying a claim.” Because the probate court’s order denied appellant’s motion for summary disposition, the probate court’s order was one “allowing” appellees’ claims to proceed. See MCR 5.801(A)(2)(i). Accordingly, we conclude we have jurisdiction to hear this appeal under MCR 5.801(A)(2)(i). And for the same reason, we conclude that appellant has standing to pursue this appeal.

-2- law necessarily constitutes an abuse of discretion.” Denton v Dep’t of Treasury, 317 Mich App 303, 314; 894 NW2d 694 (2016). To the extent this appeal requires us to interpret statutes or court rules, this Court reviews de novo the interpretation of both. Anderson v Myers, 268 Mich App 713, 714; 709 NW2d 171 (2005); Hyslop v Wojjusik, 252 Mich App 500, 505; 652 NW2d 517 (2002). Finally, we review de novo whether a party has been afforded due process. Elba Twp v Gratiot Co Drain Comm’r, 493 Mich 265, 277; 831 NW2d 204 (2013).

To begin, the probate court had authority to issue the preliminary injunction at issue under MCL 700.1309 and MCR 5.204(A). When MCL 700.1309 and MCR 5.204(A) are read together, these provisions provide, under certain circumstances, a probate court may enter an injunction on its own initiative and without notice to the parties. MCL 700.1309 states: Upon reliable information received from an interested person, county or state official, or other informed source, including the court’s files, the court may enter an order in a proceeding to do either or both of the following:

(a) Appoint a special fiduciary to perform specified duties.

(b) Enjoin a person subject to the court’s jurisdiction from conduct that presents an immediate risk of waste, unnecessary dissipation of an estate’s or trust’s property, or jeopardy to an interested person’s interest. Under this subdivision, the court shall not enjoin a respondent in a proceeding to appoint a guardian or conservator or enjoin a ward or protected individual. An enjoined person shall be given a prompt hearing, if requested, to show cause why the order should be terminated.

And, MCR 5.204 states: (A) The court may appoint a special fiduciary or enjoin a person subject to the court’s jurisdiction under MCL 700.1309 on its own initiative, on the notice it directs, or without notice in its discretion.

Accordingly, the probate court had authority to issue the preliminary injunction, and that authority was not contingent on whether appellant owned the Novi property. MCL 700.1309(b) allows the probate court to enjoin “a person subject to the court’s jurisdiction . . . .”

Nevertheless, appellant argues the probate court abused this authority by failing to apply the four factors courts must consider before entering a preliminary injunction. See Slis v State, 332 Mich App 312, 336-337; 956 NW2d 569 (2020). Those factors are: (1) whether the applicant has demonstrated that irreparable harm will occur without the issuance of an injunction, (2) whether the applicant is likely to prevail on the merits, (3) whether the harm to the applicant absent an injunction outweighs the harm an injunction would cause to the adverse party, and (4) whether the public interest will be harmed if a preliminary injunction is issued. [Id.].

While the probate court did not consider these factors on the record, appellant cannot establish reversible error. It is undisputed that appellant had no interest in the Novi property when the probate court issued its preliminary injunction. Consequently, the probate court’s injunction

-3- had no effect on him, and any error was harmless. This Court does not reverse on the basis of a harmless error.

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Bluebook (online)
In Re the Marvin Adell Childrens Funded Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marvin-adell-childrens-funded-trust-michctapp-2022.