State Highway Commissioner v. Simmons

91 N.W.2d 819, 353 Mich. 432, 1958 Mich. LEXIS 384
Michigan Supreme Court·Decided September 9, 1958·No. Docket 60-68, Calendar 47,341-47,349·Published·Cited by 10 cases

Opinion

Voelker, J.

Dates are important in this case and there is no lack of them. Prior to June 29, 1940, William G. Gilmore and wife were the owners of all of the lands involved in the various consolidated causes herein, subject to a trust mortgage dated June 25, 1926, and recorded July 2, 1926. The lands ad *435 joined Telegraph Road (US-24) in Dearborn township and were unimproved.

On June 29,1940, Gilmore and his wife executed a quitclaim deed for valid consideration to the corporate trustee, Union Guardian Trust Company, which deed was recorded July 1, 1940. The Detroit Trust Company became a successor in interest.

On August 7, 1940, Gilmore and wife executed a warranty deed conveying the same lands to the then State highway commissioner of the State of Michigan in exchange for $21,200. Said deed was not recorded until April 26, 1946.

The lands were placed upon the tax roll of Dear-born township for the year 1940, wherein the corporate trustee under the trust mortgage was shown as “owner or occupant.”

The taxes on said lands for the year 1940 and subsequent years not being paid, tax foreclosure proceedings followed which culminated in their being bid off to the State on May 4, 1943. The next occurrence concerning the lands was a quitclaim deed by Gilmore and wife to the State highway department, dated January 8, 1944. On January 18, 1944, the Detroit Trust Company for valid consideration also gave the State highway department a quitclaim deed to the lands. These 2 quitclaim deeds were recorded by the highway department on February 16, 1944. (It is important and in fact crucial to note that these 2 deeds were received and recorded within the redemption period following the noted tax sale of May 4, 1943.)

On July 3, 1944, no redemption having been made, the auditor general deeded the lands to the State of Michigan, and said deed was recorded August 17, 1944.

The State land office board (hereafter for brevity sometimes referred to as land board) on February 19, 1945, sold all of the lands involved in each of *436 the causes herein and on April 5, 1945, issued quitclaim deeds to the purchasers of the various parcels. Since that date some of the lands have been resold to other purchasers.

On September 17, 1945, by letter the land board notified the original purchasers of the lands involved (all of whom are defendants and appellees herein) that the highway department had submitted to it photostatic copies of recorded deeds as evidence that the said department had acquired title to the lands prior to the date title had vested in the State, and that under such circumstances the said purchasers did not have a marketable title. The letters requested surrender of the quitclaim deeds given by the land board if not recorded, or reconveyance to it in case of recorded deeds. Tender of the purchase money was also made.

The defendants and appellees having been unwilling to return for cancellation the deeds which they had received from the land board and to accept repayment of the amounts paid therefore, the appellants brought this action to quiet title.

After hearing the trial court dismissed the 'bill of complaint and decreed that the defendants had a fee simple interest in the lands in question and that the noted deeds from the Detroit Trust Company and William G. Gilmore and wife to appellants were null and void as against the defendants and their assigns. This appeal has resulted.

The appellants offer 2 independent arguments concerning the validity of their claimed interests in the lands in question. These arguments will be discussed in the order presented;

Plaintiffs argue first that the quitclaim deed (June 29,1940) by Gilmore to the mortgagee Union Guardian Trust Company (succeeded in interest by the Detroit Trust Company) was only a security device and did not convey absolute title to the lands. They argue *437 further, that when the highway department obtained n warranty deed from Gilmore (August 7, 1940) it therefore obtained an interest in the land, which was later perfected by the noted quitclaim deed from the Detroit Trust Company (January 18, 1944).

This argument is without merit. It is settled law in Michigan that a quitclaim deed, absent clear proof to the contrary, transfers any and all interest in the lands that the grantor may have, whatever its nature. See Kitchell v. Mudgett, 37 Mich 81; Roddy v. Roddy, 342 Mich 66; CL 1948, § 565.3 (Stat Ann 1953 Rev §26.522). No adequate proof to the contrary was made here. Therefore the chancellor was correct in holding that the warranty deed transferred no interest in the lands, for after Gilmore had executed the prior quitclaim deed he simply had nothing left to deed to the State highway department.

The appellants further argue in this connection •that it was ultra vires for the corporate trustee to accept title to the land, thus making the quitclaim ■deed to the mortgagee void and consequently validating the warranty deed to the State highway commis■sioner. However CL 1948, § 487.204 (Stat Ann 1957 Rev § 23.1014) plainly gives the corporate trustee •the power to accept such land titles, thus negating .appellants’ claim of ultra vires.

Appellants’ second main argument is based upon "the land board’s claimed lack of authority to sell the property in question. They fail to tell us precisely why that agency lacked such authority and we modesty allow that we have dredged that on our own. "We find that a legal basis for such lack of authority may be spelled out in a rather new statute not yet interpreted on our point (CL 1948, § 211.371 [Stat Ann 1950 Rev § 7.965(1)]). Notwithstanding appellants’ studied disregard of this possible saving statute in their argument, and indeed their outright ■claims of its invalidity and unconstitutionality in *438 their briefs, we find ironically that this statute becomes the crux of their case and the one possible saving grace for their cause. It is of course elementary that litigants cannot bind us by their interpretation of a statute, however wrong and however much their interpretation, if they persuaded us to follow it, might help them lose their case. We shall now examine this statute in more detail.

Section 1 of the statute provides:

“If the State land office board * * * shall discover before the execution and delivery of a deed or the execution of a contract for the sale of any land, apparent title to which vested in the State of Michigan by virtue of a tax sale, that the State of Michigan, or any board, officer, commission, department, public corporation, governmental subdivision, agency, municipal or quasi-municipal corporation thereof owned any parcel of such land or part thereof or interest therein prior to the apparent vesting of title thereto in the State of Michigan by virtue of a tax sale, it shall be the duty of the State land office board * * * to withhold the same or part thereof so publicly owned, or in which the public had an interest, from public sale,

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State Highway Commissioner v. Simmons, 91 N.W.2d 819, 353 Mich. 432, 1958 Mich. LEXIS 384 (Mich. 1958).

91 N.W.2d 819 (State Highway Commissioner v. Simmons) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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