Megan Parks v. Darrell Ray Parks

CourtMichigan Court of Appeals
DecidedOctober 22, 2019
Docket343867
StatusUnpublished

This text of Megan Parks v. Darrell Ray Parks (Megan Parks v. Darrell Ray Parks) 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
Megan Parks v. Darrell Ray Parks, (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

MEGAN PARKS, UNPUBLISHED October 22, 2019 Plaintiff-Appellant,

v No. 343867 Oakland Circuit Court DARRELL RAY PARKS, LC No. 2016-155188-PD

Defendant-Appellee.

Before: RIORDAN, P.J., and K. F. KELLY and CAMERON, JJ.

PER CURIAM.

Plaintiff, Megan Parks, appeals as of right from the judgment entered in defendant’s favor following a jury trial. This Court is asked to determine whether the trial court committed error requiring reversal when it (1) denied plaintiff’s motions for summary disposition and directed verdict, (2) permitted the equitable issues of constructive trust and conditional gift to be considered by the jury without proper instructions, and (3) abused its discretion by allowing the admission of irrelevant evidence. We affirm.

I. BACKGROUND & PROCEDURAL HISTORY

This case turns on the ownership of a small airplane and two classic cars. Defendant, who is plaintiff’s father, purchased the airplane, a Yak 18A, on behalf of his business Concrete Construction Systems, Inc. (“CCS”) in the 1990’s using corporate funds.1 Defendant also owned a 1950 Ford convertible.2 In 2004, defendant transferred title to these items to plaintiff in order

1 Defendant testified at trial that he was the sole shareholder of CCS. However, plaintiff asserted that defendant and his ex-wife, plaintiff’s mother, were both shareholders. Neither party presented any evidence, beyond their own testimony, to support their claims. 2 The record is not clear whether the 1950 Ford was registered to defendant or CCS.

-1- to avoid losing them in his divorce proceeding.3 Around that time, defendant transferred title to his sailboat, a 43 foot yacht, to his son, plaintiff’s brother, Alexander Parks.4 In March 2009, defendant purchased a 1973 Jaguar XKE sports car by giving plaintiff money with which to purchase, register, and insure the car. The cars and airplane were stored in a hangar at the Oakland County International Airport. Plaintiff and defendant each had security keys and electronic gate passes to access the hangar.

In June 2016, the parties’ relationship devolved, resulting in a physical altercation and this lawsuit. Plaintiff filed a complaint with respect to the airplane and cars for claim and delivery pursuant to MCL 600.2920, and common law and statutory conversion pursuant to MCL 600.2919a. Defendant filed a counterclaim alleging that he had an arrangement with plaintiff, and that she held title to the airplane and cars in a constructive trust for his benefit. Plaintiff’s failure to perform her obligation meant that she (1) breached of the parties’ “oral constructive trust contract,” and (2) breached her fiduciary duty as constructive trustee. The counterclaim also contained counts of (3) conversion, (4) assault and battery, (5) fraud and misrepresentation, (6) detrimental reliance and promissory estoppel, and (7) a request for exemplary damages.

Plaintiff moved for summary disposition under MCR 2.116(C)(5) (no standing), (C)(8) (failure to state a claim), (C)(9) (failure to state a valid defense) and (C)(10) (no genuine issue of material fact). She argued that defendant was bound by res judicata, collateral estoppel, and cross-over estoppel from asserting that he had any ownership interest in the airplane or cars because he testified during his divorce proceeding that plaintiff owned these items, and the issue of ownership was decided in that proceeding in plaintiff’s favor. Thus, defendant lacked standing with regards to all counts in his counterclaim (except the count of assault and battery) because he was not the “real party in interest.” Moreover, plaintiff argued, Michigan law does not recognize an “oral constructive trust contract” and defendant’s testimony from his divorce proceedings that the items were given to plaintiff as a gift precludes defendant from asserting in his counterclaim that he established a constructive trust with plaintiff. Plaintiff requested sanctions.

Defendant countered that plaintiff’s complaint for claim and delivery of the aircraft meant that she did not have possession of it, which is a prerequisite to obtain a gift under Michigan law. He submitted affidavits from himself, his son, Alexander Parks, and his daughter, Jennifer Parks, (plaintiff’s siblings), swearing that the parties had an agreement by which plaintiff held the items in a constructive trust for defendant. Defendant further argued that, the testimony he gave during his divorce proceedings notwithstanding, the divorce court found that the airplane and 1950 Ford were his premarital property. Moreover, plaintiff had unclean hands because she testified during the divorce case that she did not own the Jaguar and had never paid insurance payments on the 1950 Ford, which contradicted her position in this case. Res judicata,

3 Defendant and plaintiff’s mother divorced and defendant remarried. It is his divorce from his second wife that prompted him to transfer title to the airplane and 1950 Ford to plaintiff. 4 Again, the record is not clear whether the sailboat was registered to defendant or CCS.

-2- collateral estoppel, and cross-over estoppel did not apply because the divorce action and the instant action did not involve the same parties. Although the airplane was originally titled to CCS, defendant was the constructive owner. Additionally, Michigan law recognizes the equitable remedy of constructive trusts, which was the arrangement that plaintiff and defendant had with respect to the airplane and cars. The affidavits of defendant, Alexander, and Jennifer all supported the assertion that this arrangement existed and that plaintiff was aware of it. These items were never given as a gift because defendant never intended for the items to be a gift, and there was no delivery because defendant paid for the maintenance and storage of the items at the airport hangar. Defendant also requested sanctions.

Plaintiff replied that the gift was complete when she accepted title to the items, that a constructive trust arises by operation of law (rather than by agreement of the parties), and that defendant was bound by judicial estoppel from asserting a position contrary to the one he assumed in his divorce proceedings. She also argued that the court lacked subject matter jurisdiction over defendant’s claim of constructive trust because, pursuant to MCL 700.7203 (EPIC), the probate court has exclusive jurisdiction over the administration of a trust.

The trial court heard oral arguments and denied the motion “for the reasons set forth.” The case proceeded to trial where the jury heard testimony from plaintiff, defendant, Alexander, and Jennifer. Alexander testified that defendant conveyed title to a sailboat to him to hold on to until defendant wanted it back. This arrangement had something to do with defendant’s divorce. Alexander and Jennifer confirmed that defendant put the airplane in plaintiff’s name as a temporary measure while he was going through his divorce, and that plaintiff expressed annoyance numerous times over having the airplane and cars in her name and told her siblings that she no longer wanted the responsibility.

At the close of proofs, plaintiff and defendant each moved for directed verdict. Plaintiff repeated her arguments that defendant lacked standing to bring a defense or cause of action to claim ownership of the airplane due to his contradictory testimony that the airplane was owned by CCS, and not by himself personally, and that Michigan law does not recognize any such cause of action as an “oral constructive trust contract,” and conditional gifts are limited to the context of engagement rings.

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Megan Parks v. Darrell Ray Parks, Counsel Stack Legal Research, https://law.counselstack.com/opinion/megan-parks-v-darrell-ray-parks-michctapp-2019.