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PENROSE v. McCULLOUGH
862 N.W.2d 674
Mich. Ct. App.
2014
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Background

  • Lots 9, 10, 11 originally owned by Gleesons; lot 6 owned by McCulloughs. McCulloughs bought lot 11 from the Gleesons in May 2007.
  • About a week after that sale, McCulloughs granted an "exclusive perpetual easement" across a 10-foot strip of lot 6 to the Gleesons, expressly stating it benefitted "any or all of the Lots" (9, 10, and 11) and that it "shall run with the land."
  • The Gleesons’ easement was recorded in May 2007. In April 2008 McCulloughs deeded lot 11 to the Sanfords and expressly conveyed an easement over the same portion of lot 6 to the Sanfords.
  • Plaintiff Penrose purchased lots 9 and 10 (and the recorded exclusive easement) from the Gleesons in December 2012. Penrose sued after the Sanfords used the easement and blocked his construction access.
  • Trial court granted summary disposition for Penrose; Sanfords appealed claiming they held a valid easement and that laches/equities should protect their use. Appellate court affirmed.

Issues

Issue Penrose's Argument Sanfords' Argument Held
Whether the recorded easement is appurtenant and exclusive, benefiting lots 9/10 (and 11 as described) The deed created an appurtenant, "exclusive" easement for lots 9 and 10 (and thus successors), so only those owners may use it The Sanfords point to the deed to lot 11 conveying an easement to them in 2008 and argue their recorded grant gives them rights Held for Penrose: deed language shows an appurtenant exclusive easement for the lots (benefiting 9 & 10); exclusivity precludes others including Sanfords
Whether McCulloughs could create an easement in favor of lot 11 when they already owned both dominant and servient estates Penrose: any attempted easement attaching to lot 11 at creation failed because one cannot have an easement on one’s own land; the valid appurtenant easement attached to lots 9 & 10 Sanfords: the later deed to them expressly granted an easement over lot 6 Held: Even if deed language was ambiguous about lot 11, the attempt to create an easement in favor of lot 11 while McCulloughs owned both lots could not create a valid easement for lot 11 at that time; valid easement was in favor of lots 9 & 10
Whether Sanfords’ later-recorded interest (2008) defeats Penrose’s earlier recorded easement (2007) under Michigan’s race-notice recording scheme Penrose: Gleesons’ exclusive easement was recorded first (constructive notice), so subsequent purchasers with notice cannot take superior rights Sanfords: they relied on the 2008 deed granting an easement to lot 11 and on equities Held: Sanfords had constructive notice of the prior recorded exclusive easement; Penrose’s recorded priority prevails
Whether laches or equitable considerations bar enforcement of Penrose’s easement Penrose: promptly enforced rights after purchase (sued within months) — laches not applicable Sanfords: delay/equities should preserve their use Held: Laches not applicable — short delay and no demonstrated prejudice to Sanfords

Key Cases Cited

  • Von Meding v. Strahl, 319 Mich. 598 (recognizes union of dominant and servient estates extinguishes easements)
  • Dimoff v. Laboroff, 296 Mich. 325 (one cannot have an easement in one’s own land)
  • Dep’t of Natural Resources v. Carmody-Lahti Real Estate, Inc., 472 Mich. 359 (distinguishes easement in gross and appurtenant; definition of easement in gross)
  • Myers v. Spencer, 318 Mich. 155 (presumption favoring easement appurtenant when related to parcel)
  • Charles A. Murray Trust v. Futrell, 303 Mich. App. 28 (easement "runs with the land" indicates appurtenant nature)
  • Coventry Parkhomes Condo Ass’n v. Fed. Nat’l Mortgage Ass’n, 298 Mich. App. 252 (Michigan is a race-notice jurisdiction; recording priority rules)
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Case Details

Case Name: PENROSE v. McCULLOUGH
Court Name: Michigan Court of Appeals
Date Published: Nov 18, 2014
Citation: 862 N.W.2d 674
Docket Number: Docket 316435
Court Abbreviation: Mich. Ct. App.