In Re Wallace Estate

CourtMichigan Court of Appeals
DecidedMay 11, 2026
Docket370747
StatusUnpublished

This text of In Re Wallace Estate (In Re Wallace Estate) 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 Wallace Estate, (Mich. Ct. App. 2026).

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 ESTATE OF DANIEL K. WALLACE.

BYRON P. GALLAGHER, JR., Personal UNPUBLISHED Representative of the ESTATE OF DANIEL K. May 11, 2026 WALLACE, 9:33 AM

Plaintiff-Appellee,

and

WALLACE STORAGE CENTER, LLC, GOMINIS OF MICHIGAN, LLC, and SUMMIT ASSET MANAGEMENT, LLC,

Plaintiffs,

v No. 370747 Ingham Probate Court TRACY L. WALLACE, LC No. 18-001266-CZ

Defendant-Appellant,

TL AUGUST, LLC, doing business as GOMINIS OF WILLIAMSTON,

Defendant.

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

PER CURIAM.

This case is before us a second time. In the original appeal, Tracy L. Wallace and TL August, LLC, appealed as of right the probate court’s judgment in favor of Byron P. Gallagher,

-1- Jr., as successor personal representative of the estate of Daniel K. Wallace, in the amount of $525,860.1 We affirmed the probate court’s finding that Tracy breached her fiduciary duties but vacated the probate court’s inclusion of $127,050 in tax penalties and interest in the judgment because those tax-related damages were speculative, and we remanded the case to the probate court in accordance with those conclusions.2 On remand, the probate court entertained additional evidence regarding those tax-related damages and found that Gallagher was entitled to $192,858.08 in such damages, as well as statutory pre-judgment interest in the amount of $104,016.83. Thus, the probate entered final judgment in favor of Gallagher and against Tracy in the amount of $695,684.91.

In the instant appeal, Tracy appeals as of right that final judgment, raising two issues: (1) the probate court exceeded the scope of our remand instructions by entertaining additional evidence regarding tax-related damages and by adding such damages to the final judgment, and (2) the probate court erred by awarding Gallagher statutory pre-judgment interest because this case does not involve a typical “money judgment” under MCL 600.6013(8) that entitles a prevailing party to such interest. For the reasons set forth, we disagree with both arguments and affirm.

I. BACKGROUND FACTS

In our original opinion, we set forth the following factual background of this case:

Before his November 2011 death, Daniel was the sole member of Wallace Storage Center, LLC, GoMinis of Michigan, LLC, and Summit Asset Management, LLC (the LLCs), which he operated with Tracy, his ex-wife. Daniel’s membership interests in the LLCs became assets of his estate upon his death.

Daniel’s will nominated Tracy as the personal representative, granted his tangible personal property to Tracy, and designated the trustee of The Daniel C. Wallace Trust No. 1 as the recipient of his residual property. Tracy was identified as the successor trustee and sole beneficiary under the trust. In January 2012, Tracy was appointed the personal representative of Daniel’s estate. The couple’s two children were identified as heirs, and a supplemental declaration identified Tracy as the successor trustee and beneficiary.

For seven years after Daniel’s death, Tracy continued to operate the LLCs and manage the estate. But the probate court found that Tracy failed to pay creditors’ claims as ordered by the court. Accordingly, in August 2017, the probate court removed Tracy as personal representative, appointed Gallagher as the successor personal representative, and ordered Gallagher to provide a final accounting and satisfy claims against the estate.

1 We will hereinafter refer to the parties by the same names used in our original opinion unless otherwise appropriate. 2 See In re Wallace Estate, unpublished per curiam opinion of the Court of Appeals, issued November 22, 2022 (Docket No. 357441).

-2- In September 2018, Gallagher filed a complaint on behalf of the estate and the LLCs against Tracy and TL August.[3] Pertinent to this appeal, the complaint alleged that Tracy had breached her fiduciary duties to the estate, which included the LLCs as assets. Following discovery, Gallagher moved for summary disposition. Gallagher presented evidence that Tracy had paid nonbusiness expenses from business expense accounts, failed to account for rents the LLCs received, failed to settle creditor claims, and had not filed taxes for the estate. Tracy and TL August did not present any evidence to refute the findings and conclusions of Gallagher’s financial expert. They responded that Tracy did not owe fiduciary duties to creditors or the LLCs. They also argued that the estate’s beneficiaries did not want Gallagher to pursue the litigation.

The probate court determined that Tracy breached her fiduciary duties to the estate, which included the LLCs as assets. But because the court determined there were genuine issues of material fact regarding damages, it ordered a bench trial on damages only.

At the bench trial, Tracy testified that she operated the LLCs in the same manner as Daniel had because her attorney instructed her to simply continue doing what Daniel had done. She admitted the LLCs’ funds were comingled— deficiencies in an LLC account were covered with funds from another LLC account. But she claimed that no one objected to her methodology. She also acknowledged the estate had more liabilities than assets. She further admitted she failed to disclose some assets that should have been in the estate’s inventory statement. But she defended her actions by claiming the estate’s attorneys failed to properly advise her. She maintained she was simply trying “to be able to keep the boys a legacy of their dad.”

One of Daniel’s sons testified that Tracy “picked up where my dad left off.” He also asserted he did not consent to the litigation. The probate court accepted an offer of proof that Daniel’s other son would have testified that he did not consent to the litigation either. But the court opined that the children’s wishes were irrelevant to the issue of damages.

Gallagher testified extensively about his efforts to determine the estate’s assets and liabilities. Rent revenue was unaccounted for. All of the assets were not disclosed on the estate’s inventory. Although approximately 2000 properties were listed in the estate’s inventory, all but three of those properties were lost due to non- payment of taxes or foreclosures while Tracy managed the estate. Creditors filed approximately $4.8 million in claims against the estate. Gallagher determined the estate was insolvent—its assets were less than its liabilities.

3 TL August was established by Tracy in 2014, and it was legally responsible for some of the operation of the other LLCs’ assets.

-3- Because financial records had not been properly kept, Gallagher hired Ryan Lowe, an expert in tax preparation and forensic accounting, to piece the financial information together. Lowe reconstructed the financial transactions of the LLCs and TL August. He entered bank statements and transactions into accounting software, reconciled them, and categorized them into various income and expense categories. Lowe compiled and summarized the financial records in his report, which was admitted into evidence over appellants’ hearsay objection. Lowe provided detailed testimony regarding his analysis of the financial records and his calculations.

According to Lowe, the largest sources of loss to the estate were the use of the LLCs’ accounts to pay for personal expenses, and various checks that were written to Tracy or “cash” from the LLC accounts. These personal expenses included automobile expenses, mortgage payments, utility payments, moving expenses, insurance premiums, and rent payments on Tracy’s apartment.

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Cite This Page — Counsel Stack

Bluebook (online)
In Re Wallace Estate, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-wallace-estate-michctapp-2026.