Klooster v. City of Charlevoix
488 Mich. 289
| Mich. | 2011Background
- 1959: title to the Charlevoix property held by James and Dona Klooster as tenants by the entirety.
- Aug 11, 2004: Dona quitclaims to James; James and Nathan Klooster hold as joint tenants with rights of survivorship.
- Jan 11, 2005: James dies; Nathan becomes sole owner by operation of law.
- Sept 10, 2005: Nathan quitclaims to himself and Charles Klooster as joint tenants.
- 2006: City mails notice of reassessment based on transfer of ownership; Tax Tribunal and Courts later address whether the transfers uncapped the property and whether the joint-tenancy exception applies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a GPTA "conveyance" requires a written instrument | Klooster: conveyance under GPTA can occur without writing | Charlevoix: transfers must be by written instrument | Conveyance under GPTA need not be written |
| Whether the January 2005 death transfer uncapped the property | Death of cotenant did not uncapping the property | Death transfer could uncap if not fitting the exception | January 2005 conveyance did not uncapped the property under the original-ownership/continuous-tenancy rules |
| Whether the September 2005 joint-tenancy creation uncapped the property | Creation of joint tenancy could be exempt or uncapped depending on original ownership | September 2005 conveyance uncapped the property | September 2005 conveyance uncapped the property; reassessment proper |
| Proper interpretation of MCL 211.27a(7)(h) original-owner and continuous-tenancy requirements | Sequence and timing support original-owner/continuous-tenancy | Literal reading limits applicability | Original-ownership and continuous-tenancy requirements apply; affect result of uncapping |
| Preservation and scope of the September 2005 conveyance issue | Court addresses September 2005 issue; decision reaches correct result for the wrong reason |
Key Cases Cited
- Albro v. Allen, 434 Mich 271 (Mich. 1990) (joint tenancy survivorship and transfer concepts relevant to conveyances)
- Toll Northville Ltd v Northville Twp, 480 Mich 6; 743 NW2d 902 (Mich. 2008) (Proposal A and assessment principles governing uncapping)
- McMurtry v Smith, 320 Mich 304; 30 NW2d 880 (Mich. 1948) (historic conveyance definitions and recording considerations)
- Brown v Detroit Mayor, 478 Mich 589; 734 NW2d 514 (Mich. 2007) (statutory interpretation principles and plain-language focus)
- People v. Jackson, 487 Mich 783; 790 NW2d 340 (Mich. 2010) (textual interpretation and reading statutes as a whole)