in Re Washington Estate

CourtMichigan Court of Appeals
DecidedJune 25, 2019
Docket337467
StatusUnpublished

This text of in Re Washington Estate (in Re Washington 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 Washington Estate, (Mich. Ct. App. 2019).

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 LOIS C. WASHINGTON.

CONLY K. CROSSLEY, Personal Representative UNPUBLISHED of the ESTATE OF LOIS C. WASHINGTON, and June 25, 2019 ARIEL ELLIS,

Appellees,

v No. 337467 Monroe Probate Court VERA WASHINGTON, LC No. 2011-000343-DE

Appellant.

In re LOIS C. WASHINGTON TRUST.

CONLY K. CROSSLEY, Special Fiduciary for LOIS C. WASHINGTON TRUST,

Appellee,

v Nos. 337467 Monroe Probate Court VERA WASHINGTON, LC No. 2014-000032-TT

CONLY K. CROSSLEY, Special Fiduciary for LOIS C. WASHINGTON TRUST,

-1- Appellee,

v No. 341187 Monroe Probate Court ARIEL ELLIS, LC No. 2014-000032-TT

Before: MURRAY, C.J., and STEPHENS and SHAPIRO, JJ.

PER CURIAM.

These consolidated appeals involve both the estate and the trust of Lois Washington (“the decedent”), who died in 2011. She was survived by several children and named her daughter, appellant Vera Washington (“Vera”), as co-personal representative of her estate and co-trustee of her trust. In July 2016, the probate court found Vera in contempt for failing to prepare and file appropriate accountings and inventories for the estate and the trust, and for refusing to sign a deed transferring certain property back to the estate. Vera had earlier signed a deed transferring the property to herself, contrary to the terms of the decedent’s trust. In February 2017, the probate court sentenced Vera to a seven-day jail term for contempt for her refusal to sign the deed. The court also ordered Vera to serve time in jail until she satisfied her obligation to file proper accountings and inventories, or the interested parties agreed to waive the filing of those documents. In Docket No. 337467, Vera now appeals as of right the judgment of contempt, which was entered in both the estate case and the trust case.

Appellant Ariel Ellis (“Ariel”) is Vera’s daughter and a beneficiary of the trust. In Docket No. 341187, Ariel appeals as of right, challenging the probate court’s order approving the petition of special fiduciary, appellee Conly Crossley, to divide, distribute, and sell some of the trust property.

In Docket No. 337467, we vacate Vera’s conviction and fine of criminal contempt for refusing to sign the deed, but affirm the probate court’s order of civil contempt for failure to prepare appropriate inventories and accountings. In Docket No. 341187, we affirm the probate court’s order approving the division, distribution, and sale of trust property.

I. DOCKET NO. 337467

In Docket No. 337467, Vera challenges the probate court’s order holding her in contempt for refusing to sign a deed to return real property to the decedent’s trust, and for failing to prepare and file appropriate inventories and accountings for the periods she served as fiduciary of the estate and trust. We review a trial court’s issuance of a contempt order for an abuse of discretion. Porter v Porter, 285 Mich App 450, 454; 776 NW2d 377 (2009). Reversal is warranted only when the trial court’s decision is outside the range of principled outcomes. Id. at 455. The trial court’s factual findings are reviewed for clear error, and any questions of law are reviewed de novo. Id.; In re Contempt of Henry, 282 Mich App 656, 668; 765 NW2d 44 (2009).

-2- A finding is clearly erroneous when this Court is left with a definite and firm conviction that a mistake has been made. In re Contempt of Henry, 282 Mich App at 669.

A. CRIMINAL CONTEMPT

After the decedent’s death in 2011, Vera and her sibling, Gregory, were appointed co- personal representatives of the decedent’s estate. Approximately two years later, they were removed after questions arose regarding the disposition of many of the estate assets. Ida Jean Washington-Joy (“Ida Jean”) was named as successor personal representative, but she was removed approximately a year later and replaced by Conley Crossley, an independent personal representative. During this time, however, Vera continued to serve as a co-trustee of the decedent’s trust. The other co-trustee, Gregory, resigned as co-trustee in December 2014. On February 5, 2015, the probate court suspended Vera as trustee and replaced her with Crossley as special fiduciary for the trust.

In 2015, the probate court conducted a lengthy evidentiary hearing to determine which of two competing versions of the decedent’s trust was controlling. The two trusts differed as to the disposition of property on Tuttle Hill Road in Milan Township (the “Tuttle Hill property”). The Tuttle Hill property was a single parcel of land on which there were two residential buildings. According to the trust offered by Vera, the entire parcel was to be awarded to Vera. According to the trust offered by Vera’s sibling, Gregory, the residence at 12991 Tuttle Hill was awarded to Gregory, and the other residence at 12927 Tuttle Hill was awarded to Vera. At the time of the hearing, Vera, acting as trustee, had already conveyed the entire parcel to herself, individually. Throughout these proceedings, Vera and Ariel resided at the residence at 12991 Tuttle Hill. The court resolved the issue in favor of the version of the trust offered by Gregory. Accordingly, it determined that Vera had wrongfully conveyed the entire parcel to herself.

The newly appointed special fiduciary, Crossley, determined that the property had to be surveyed and divided in order to distribute the residences to Vera and Gregory as separate parcels in accordance with the terms of the trust. In addition, the entire parcel contained other land that could be partitioned off and sold to benefit other beneficiaries. Before that could be done, however, it was necessary to clear the title to the property because Vera, in her capacity as trustee, had previously conveyed the entire parcel to herself, individually. Accordingly, Crossley requested that Vera convey her interest in the property back to the trust so that the property could be distributed in accordance with the terms of the trust.

In July 2016, the probate court ordered Vera to sign a deed that Crossley had prepared conveying her interest in the Tuttle Hill property to the trust. When Vera refused to sign the deed, the court found her in contempt. The court delayed imposing any sanction for her contempt in order to provide her an opportunity to purge the contempt by signing the deed. Alternatively, the court considered entering its own order to void the earlier deed conveying the property to Vera.

Vera refused to sign a deed to return the Tuttle Hill property to the trust, but in September 2016, the probate court entered an order voiding Vera’s improperly conveyed interest in the property. Later, however, in February 2017, the probate court sentenced Vera to a seven-day jail term for criminal contempt for her refusal to execute a deed as ordered by the court.

-3- On appeal, Vera now argues that she did not receive proper notice that she was facing a charge of criminal contempt for refusing to sign the deed and that it was improper to convict her of criminal contempt because, by the time she was sentenced, the contempt had been purged by the court’s order voiding the original deed. We agree.

Because the probate court found that Vera committed a direct act of contempt by refusing to sign the deed, the court could have summarily found her guilty of contempt without prior notice of the charge. MCL 600.1711(1) provides:

When any contempt is committed in the immediate view and presence of the court, the court may punish it summarily by fine, or imprisonment, or both.

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in Re Washington Estate, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-washington-estate-michctapp-2019.