809 N.W.2d 429
Mich. Ct. App.2011Background
- Trader, as personal representative of Thelma DeGoede, sued Comerica Bank for breach of contract over three CDs.
- CDs were issued by Industrial State Bank & Trust (later Comerica) to Thelma in 1980, 1981, and 1982.
- 1980 and 1981 CDs were labeled nontransferable and automatically renew for successive periods unless presented for payment.
- 1982 CD included non-transferable and type-20 designation with literature-based renewal provisions; no back-end payment signatures present.
- Thelma died in 2005; John DeGoede retrieved CDs 45-60 days after death; Comerica allegedly refused payment for lack of records.
- Trial court held the claim time-barred under MCL 600.5807(8); the appellate court reversed, holding accrual occurred at demand in 2005.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does accrual occur for nonnegotiable CDs? | Accrual occurs at demand in 2005. | Accrual occurs at end of renewal or maturity dates (1981/1982/1983). | Accrual at demand; timely under 6-year limit. |
| Do renewal provisions affect the accrual timing for 1980/1981 CDs? | Language shows automatic renewals, delaying accrual. | CDs mature on fixed dates despite renewal language. | Renewal language indicates multiple renewals, delaying accrual. |
| Does McKeyes establish the accrual rule for CDs? | McKeyes Rule: accrual upon demand. | McKeyes dictum; not binding. | McKeyes rule adopted as governing accrual. |
| Is the 1982 CD automatically renewable under its terms? | Type-20 designation and literature describe renewal. | Front lacks explicit renewal language; renewal unclear. | 1982 CD deemed automatically renewable via type-20 provisions. |
| Should remand address defenses other than statute of limitations? | Not necessary; needs only statute issue resolved. | Other defenses may bar relief. | Remand allowed to address additional defenses; not decided here. |
Key Cases Cited
- McKeyes v. McKeyes, 315 Mich 369 (1946) (adopts accrual rule that CD claims accrue on demand)
- Elliott v Capital City State Bank, 128 Iowa 275; 103 NW 777 (1905) (CDs not due until demand for payment)
- Union Guardian Trust Co v Emery, 292 Mich 394; 290 NW 841 (1940) (CDs as promissory notes payable on demand or with interest)
- White v Wadhams, 204 Mich 381; 170 NW 60 (1918) (distinguishes payable-on-demand vs. payable with interest)
- In re McKeyes’ Estate, 315 Mich 369; 24 NW2d 155 (1946) (adopts demand-based accrual for CDs; significant historical rule)
- Cohn-Goodman Co v People’s Savings Bank of Grand Haven, 203 Mich 307; 168 NW 1042 (1918) (nonnegotiable CDs governed by contract law)
- AFSCME v Bank One, NA, 267 Mich App 281; 705 NW2d 355 (2005) (contract interpretation framework; de novo review on appeal)