Cindy Schaaf v. Charlene Forbes
343630
| Mich. Ct. App. | Jul 1, 2021Background:
- This is a concurrence/dissent (Riordan, J.) on remand from the Antrim Circuit Court matter between plaintiffs (Schaaf, Fryer, Mason) and defendant Charlene Forbes.
- The circuit court exercised subject-matter jurisdiction, admitted over 300 pages of plaintiffs’ documentation, ordered defendant to contribute to plaintiffs, and ruled on a property-title issue involving a trust.
- The pivotal legal dispute concerns whether a trust may hold legal title to real property as a joint tenant with rights of survivorship.
- Riordan J. concurs that the court had jurisdiction, did not abuse discretion admitting voluminous evidence, and properly required contribution, but he dissents from the majority’s conclusion that a trust cannot hold property as a joint tenant with rights of survivorship.
- Riordan’s analysis relies on common-law trust principles, historical Michigan cases recognizing trustees holding title as joint tenants, the Restatement (Third) of Trusts, and the comprehensive Michigan Trust Code—arguing the statute does not prohibit and in many respects contemplates such ownership.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Subject-matter jurisdiction | Circuit court had jurisdiction to decide the dispute | Lack of subject-matter jurisdiction | Court had subject-matter jurisdiction (Riordan concurs) |
| Admissibility of voluminous documentary evidence | Plaintiffs’ >300 pages were relevant and properly considered | Admission was an abuse of discretion | Court did not abuse its discretion (Riordan concurs) |
| Requirement of contribution to plaintiffs | Plaintiffs entitled to contribution | Contribution order was erroneous | Court did not err in requiring contribution (Riordan concurs) |
| May a trust hold title as joint tenant with rights of survivorship? | A trust may not hold title as a joint tenant (majority view) | A trust may hold title as a joint tenant; trustees historically have held joint-tenancy title | Majority held a trust cannot hold property as a joint tenant with rights of survivorship (Riordan dissents; would hold trust may) |
Key Cases Cited
- Wold Architects & Engineers v. Strat, 474 Mich 223 (Mich. 2006) (common law remains in force unless repealed or superseded by statute)
- Scudder v. Security Trust Co., 238 Mich 318 (Mich. 1927) (historical recognition that trusts could not exist in perpetuity under common law)
- Norris v. Hall, 124 Mich 170 (Mich. 1900) (deed expressly declaring trustees to hold as joint tenants)
- Fox v. Greene, 289 Mich 179 (Mich. 1939) (definition of trust and recognition that property held by a trustee as joint tenant may be partitioned)
- Ford v. Wright, 114 Mich 122 (Mich. 1897) (trustee holds trust property; discussing trustee title)
- Bank of Delaware v. Bancroft, 269 A.2d 254 (Del. Ch. 1970) (rejecting common-law incapacity of corporations/trust companies to hold joint tenancy where statute confers powers of an individual)