MEGAN PARKS v. DARRELL RAY PARKS
No. 343867
Michigan Court of Appeals
October 22, 2019
S T A T E O F M I C H I G A N
C O U R T O F A P P E A L S
MEGAN PARKS,
Plaintiff-Appellant,
v
DARRELL RAY PARKS,
Defendant-Appellee.
UNPUBLISHED
October 22, 2019
No. 343867
Oakland Circuit Court
LC No. 2016-155188-PD
Before: RIORDAN, P.J., and K. F. KELLY and CAMERON, JJ.
PER CURIAM.
Plaintiff, Megan Parks, appeals as of right from the judgment entered in defendant’s favor following a jury trial. This Court is asked to determine whether the trial court committed error requiring reversal when it (1) denied plaintiff’s motions for summary disposition and directed verdict, (2) permitted the equitable issues of constructive trust and conditional gift to be considered by the jury without proper instructions, and (3) abused its discretion by allowing the admission of irrelevant evidence. We affirm.
I. BACKGROUND & PROCEDURAL HISTORY
This case turns on the ownership of a small airplane and two classic cars. Defendant, who is plaintiff’s father, purchased the airplane, a Yak 18A, on behalf of his business Concrete Construction Systems, Inc. (“CCS”) in the 1990’s using corporate funds.1 Defendant also owned a 1950 Ford convertible.2 In 2004, defendant transferred title to these items to plaintiff in order
In June 2016, the parties’ relationship devolved, resulting in a physical altercation and
this lawsuit. Plaintiff filed a complaint with respect to the airplane and cars for claim and
delivery pursuant to
Plaintiff moved for summary disposition under
Defendant countered that plaintiff’s complaint for claim and delivery of the aircraft meant that she did not have possession of it, which is a prerequisite to obtain a gift under Michigan law. He submitted affidavits from himself, his son, Alexander Parks, and his daughter, Jennifer Parks, (plaintiff’s siblings), swearing that the parties had an agreement by which plaintiff held the items in a constructive trust for defendant. Defendant further argued that, the testimony he gave during his divorce proceedings notwithstanding, the divorce court found that the airplane and 1950 Ford were his premarital property. Moreover, plaintiff had unclean hands because she testified during the divorce case that she did not own the Jaguar and had never paid insurance payments on the 1950 Ford, which contradicted her position in this case. Res judicata,
Plaintiff replied that the gift was complete when she accepted title to the items, that a
constructive trust arises by operation of law (rather than by agreement of the parties), and that
defendant was bound by judicial estoppel from asserting a position contrary to the one he
assumed in his divorce proceedings. She also argued that the court lacked subject matter
jurisdiction over defendant’s claim of constructive trust because, pursuant to
The trial court heard oral arguments and denied the motion “for the reasons set forth.” The case proceeded to trial where the jury heard testimony from plaintiff, defendant, Alexander, and Jennifer. Alexander testified that defendant conveyed title to a sailboat to him to hold on to until defendant wanted it back. This arrangement had something to do with defendant’s divorce. Alexander and Jennifer confirmed that defendant put the airplane in plaintiff’s name as a temporary measure while he was going through his divorce, and that plaintiff expressed annoyance numerous times over having the airplane and cars in her name and told her siblings that she no longer wanted the responsibility.
At the close of proofs, plaintiff and defendant each moved for directed verdict. Plaintiff repeated her arguments that defendant lacked standing to bring a defense or cause of action to claim ownership of the airplane due to his contradictory testimony that the airplane was owned by CCS, and not by himself personally, and that Michigan law does not recognize any such cause of action as an “oral constructive trust contract,” and conditional gifts are limited to the context of engagement rings. Alternatively, plaintiff argued, any such contract would be void under the statute of frauds because it was not completed within one year of when the contract was made (2004), and if there was a valid and enforceable contract, any claim arising from its breach was barred by the statute of limitations which would have started to run one year from when the agreement would have been performed (2005) and would have expired in 2011. Or if the clock began to run from when the Jaguar was purchased (2009), then the agreement would have to be performed within one year (2010) and the limitations period would have run out in 2016. Moreover, plaintiff argued, defendant’s claim of conversion failed because the items were in his possession, and no evidence was introduced to show that plaintiff committed fraud or made any misrepresentations to defendant.
Conversely, at the close of trial, defendant argued that the statute of frauds did not apply because there was no requirement that the contract be performed within one year of making the agreement. Judicial estoppel was not applicable because his position at trial was not wholly inconsistent with his testimony given during his divorce proceedings, and the judge in that case did not find that the airplane was never his. He continued that the parties in the divorce case
The trial court denied the motions, and the matter was submitted to a jury which found that the cars and airplane were not permanently gifted to plaintiff and must be retitled to defendant. No cause of action was found for defendant’s claim of assault. The jury found that plaintiff committed battery, but no money damages were awarded. The trial court entered an order reflecting these findings of fact. This appeal followed.
II. SUMMARY DISPOSITION AND DIRECTED VERDICT
Plaintiff first argues that the trial court committed error requiring reversal when it failed to grant her motions for summary disposition and directed verdict. We disagree.
Plaintiff moved for summary disposition under
“A motion under
Summary disposition may be granted under
A motion for summary disposition under
“The moving party has the initial burden to support its claim for summary disposition by
affidavits, depositions, admissions, or other documentary evidence.” McCoig Materials, LLC v
Galui Construction Inc, 295 Mich. App. 684, 693; 818 NW2d 410 (2012). The burden is then
shifted to the nonmoving party to demonstrate that a genuine issue of material fact exists. Id.
The existence of a disputed fact must be established by substantively admissible evidence,
although the evidence need not be in admissible form.
Plaintiff moved for directed verdict, reciting the reasons in her motion for summary disposition, and adding that any contract between the parties is unenforceable under the statute of frauds, and alternatively, any claim for breach of contract expired because the limitations period had already run out when defendant filed his counterclaim. This Court reviews de novo a trial court’s decision on a motion for directed verdict. Diamond v Witherspoon, 265 Mich. App. 673, 681; 696 NW2d 770 (2005). In reviewing a decision on a motion for directed verdict, this Court “reviews all the evidence presented up to the time of the directed verdict motion, considers that evidence in the light most favorable to the nonmoving party, and determines whether a question of fact existed.” Id. at 681–682. “A directed verdict is appropriate only when no factual question exists on which reasonable jurors could differ.” Id. This Court also reviews de novo whether the statute of frauds bars enforcement of a contract, Zander v Ogihara Corp, 213 Mich. App. 438, 441; 540 NW2d 702 (1995), and the existence and interpretation of a contract, Kloian v Domino’s Pizza, LLC, 273 Mich. App. 449, 452; 733 NW2d 766 (2006).
The application of legal doctrines, such as res judicata and collateral estoppel, are reviewed de novo. Estes v Titus, 481 Mich. 573, 579; 751 NW2d 493 (2008). “Judicial estoppel is an equitable doctrine.” Szyszlo v Akowitz, 296 Mich. App. 40, 46; 818 NW2d 424 (2012) (citation omitted). “Findings of fact supporting the trial court’s decision are reviewed for clear error, and the application of the doctrine is reviewed de novo.” Id. (citation omitted).
Plaintiff first argues that defendant should be estopped from asserting a position contrary to testimony that he gave during his divorce proceeding wherein he stated that he has no ownership interest in the airplane and the cars, and therefore, defendant lacks standing to bring his counterclaim because he is not the real party in interest.
For this same reason, collateral estoppel does not apply. Storey v Meijer, Inc, 431 Mich. 368, 373 n 3; 429 NW2d 169 (1988) (collateral estoppel requires that (1) a question of fact essential to the judgment was actually litigated and determined by a valid and final judgment, (2) the same parties had a full and fair opportunity to litigate the issue, and (3) there was mutuality of estoppel). Additionally, the doctrine of cross-over estoppel does not apply here because this is not a criminal proceeding. People v Trakhtenberg, 493 Mich. 38, 48; 826 NW2d 136 (2012), citing People v Gates, 434 Mich. 146, 155; 452 NW2d 627 (1990) (cross-over estoppel is “the application of collateral estoppel in the civil-to-criminal context”).
Likewise, plaintiff’s argument regarding judicial estoppel fails. “For judicial estoppel to apply, a party must have successfully and ‘unequivocally’ asserted a position in a prior proceeding that is ‘wholly inconsistent’ with the position now taken.” Szyszlo, 296 Mich. App. at 51 (citation omitted). Defendant argued at trial, and the trial court agreed, that defendant’s testimony from the divorce proceedings was not wholly inconsistent with his position in this case. During his divorce, defendant testified that he titled the 1950 Ford to plaintiff as a “gift” because he discovered that his ex-wife withdrew and spent all the funds in the couple’s joint retirement account, and that plaintiff used her own funds to purchase the Jaguar. At trial, defendant testified that the 1950 Ford was not transferred to plaintiff as a gift. When plaintiff’s counsel attempted to impeach defendant with his prior testimony, defendant clarified that his previous testimony was that it was only intended as a “temporary gift” as he called it “for lack of a better terminology.” Similarly, when defendant testified at trial that plaintiff used his funds to purchase the Jaguar, plaintiff’s counsel attempted to impeach him with his prior testimony. Defendant explained that he gave plaintiff the money, in other words, she used her own funds, but he “funded it through her.” Defendant’s position in this case is not a “wholly inconsistent” with his previous position during his divorce. Even though defendant’s behavior during the divorce was perfidious, plaintiff does not provide any compelling reason why equity demands that this Court reward her in the instant case as a consequence.5 Accordingly, plaintiff has not
Plaintiff argues the trial court should have granted her motions under
Plaintiff argues that she was entitled to summary disposition and directed verdict6
because there can be no constructive trust where items are given as an irrevocable, completed,
inter-vivos gift. Plaintiff misstates the law. “To effectuate a gift inter vivos, there must be an
unconditional delivery, . . . and the right of disposition must be wholly beyond the power of the
donor.” Geisel v Burg, 283 Mich. 73, 80; 276 NW 904 (1937) (internal quotation marks and
citations omitted). However, neither of these conditions would be met under facts giving rise to
the imposition of a constructive trust, where a trustee holds bare legal title to the property that is
subject to the trust for the benefit of the beneficiary. In re Filibeck Estate, 305 Mich. App. 550;
853 NW2d 448 (2014). In other words, defendant alleged that he gave the items to plaintiff for
her safekeeping with the condition that she would title them back to him (or another entity) at his
direction. This hardly constitutes an “unconditional delivery” where the right of disposition is
wholly beyond defendant’s power. Accordingly, plaintiff’s argument that defendant failed to
state a claim on which relief can be granted is without merit, and plaintiff’s motions under
honorable and trustworthy. Each concealed information from the other on more than one occasion.” The divorce court went on to list examples, including the transfer of the sailboat and the airplane. Thus, it seems that defendant’s motives were known to the divorce court when it made its determinations.
Plaintiff argues that summary disposition and directed verdict should have been granted
pursuant to
Here, defendant asserted that he had a right to possession of the airplane by virtue of the
equitable title he held via his agreement with plaintiff. Again, merely because plaintiff’s
characterization of this arrangement differs, it does not render the asserted defense invalid.
Rather, plaintiff’s motions under
Plaintiff argues for the first time on appeal that any constructive trust imposed by the trial court should have been limited to arising only between plaintiff and CCS because defendant could not be the settlor. We decline to address this argument because it is not preserved. Polkton Twp v Pellegrom, 265 Mich. App. 88, 95; 693 NW2d 170 (2005) (generally, an issue is not properly preserved for appellate review if it has not been raised before and decided by the trial court); City of Riverview v Sibley Limestone, 270 Mich. App. 627, 633 n 4; 716 NW2d 615 (2006) (alternative grounds are not properly preserved for appeal unless the pertinent argument was presented below). Moreover, plaintiff provides no legal authority for this variation on her argument regarding defendant’s standing. Prince v MacDonald, 237 Mich. App. 186, 197; 602 NW2d 834 (1999) (where a party fails to cite any supporting legal authority for its position, the issue is deemed abandoned).
Plaintiff next argues on appeal, as she did in her motion for directed verdict, that any oral contract between the parties is unenforceable under the statute of frauds, and alternatively, if the statute of frauds did not render the contract unenforceable, defendant’s claim was untimely because the limitations period for his breach of contract claim had expired before he filed his counterclaim.
Inasmuch as constructive trusts arise by construction or operation of law and not by agreement or intention, the statute of frauds, and statutes prohibiting parol trusts, have no application to such trusts, and do not prevent the establishment or enforcement thereof, since such statutes are meant to prevent frauds and not to encourage them, and a court of equity will not permit a person to shield himself behind the statute of frauds in order to perpetrate a fraud. So it is frequently said that a constructive trust may be established by parol evidence.
Defendant’s counterclaim of breach of contract was timely.8 The statute of limitations
for breach of contract is six years.
Therefore, the trial court did not commit error requiring reversal when it denied plaintiff’s motions for summary disposition and directed verdict.
III. EQUITABLE REMEDIES
Matters of equity are reviewed do novo on the record on appeal. Tkachik, 487 Mich. at 44-45. “The granting of equitable relief is ordinarily a matter of grace, and whether a court of equity will exercise its jurisdiction, and the propriety of affording equitable relief, rests in the sound discretion of the court, to be exercised according to the circumstances and exigencies of each particular case.” Id. at 45 (cleaned up). Additionally, this Court reviews de novo a trial court’s decision on a motion for directed verdict. Diamond, 265 Mich. App. at 681. However, this Court reviews for an abuse of discretion “the trial court’s determination that a jury instruction is accurate and applicable to the case[.]” Hill v Hoig, 258 Mich. App. 538, 540; 672 NW2d 531 (2003). “Instructional error warrants reversal if the error resulted in such unfair prejudice to the complaining party that the failure to vacate the jury verdict would be inconsistent with substantial justice.” Cox ex rel Cox v Bd of Hosp Managers for City of Flint, 467 Mich. 1, 8; 651 NW2d 356 (2002) (quotation marks and citation omitted).
Plaintiff argues that the issue of “conditional gift” should not have been submitted to the jury because defendant’s theory of “conditional gift” was unsupported by Michigan law. In other words, plaintiff appears to argue that she should have received a directed verdict on this issue because Michigan law only recognizes conditional gift in the context of gifts given in expectation of marriage (e.g., engagement rings). Certainly, these are the better known cases. See e.g., Meyer v Mitnick, 244 Mich. App. 697, 703; 625 NW2d 136 (2001) (holding that “an engagement ring given in contemplation of marriage is an impliedly conditional gift that is a completed gift only upon marriage”), In re Lowe Estate, 146 Mich. App. 325; 379 NW2d 485 (1985) (finding that where an engagement terminated by the death of the donee, her estate was entitled to the engagement ring). However, Michigan law has not limited the concept of conditional gifts to only the marriage context. See e.g., In re Erickson’s Estate, 346 Mich. 432; 78 NW2d 256 (1956) (involving a devise to a daughter and son-in-law, made conditional upon the adoption of a child). Accordingly, plaintiff’s argument lacks merit.
Plaintiff argues that the constructive trust issue should not have been submitted to the jury, and that any instructions that proposed to allow the jury to decide that equitable issue are invalid and require reversal. However, plaintiff waived this issue.
At trial, plaintiff objected to submitting this issue to the jury. Defendant concurred, and
IV. EVIDENTIARY RULINGS
Plaintiff argues that the trial court abused its discretion by admitting irrelevant evidence. We disagree.
This Court reviews a trial court’s evidentiary decisions for an abuse of discretion. Elher v Misra, 499 Mich. 11, 21; 878 NW2d 790 (2016). A trial court abuses its discretion when it selects an outcome that is outside the range of principled outcomes. Id. This Court reviews de novo whether the trial court properly interpreted and applied the rules of evidence to the facts. Donkers v Kovach, 277 Mich. App. 366, 369; 745 NW2d 154 (2007).
Plaintiff’s brief contains a laundry list of 36 overruled objections and denied motions that were all purportedly in error. Plaintiff’s merely labels each piece of evidence as “irrelevant” or “improper” and utterly fails to substantiate these assertions with any form of argument. “It is not sufficient for a party ‘simply to announce a position or assert an error and then leave it up to this Court to discover and rationalize the basis for [her] claims, or unravel and elaborate for [plaintiff her] arguments, and then search for authority either to sustain or reject [her] position.’ ” Wilson v Taylor, 457 Mich. 232, 243; 577 NW2d 100 (1998), quoting Mitcham v Detroit, 355 Mich. 182, 203; 94 NW2d 388 (1959). A party also may not give issues cursory treatment with little or no citation to supporting authority. Goolsby v Detroit, 419 Mich. 651, 655 n 1; 358 NW2d 856 (1984); Silver Creek Twp v Corso, 246 Mich. App. 94, 99; 631 NW2d 346 (2001). Plaintiff’s “failure to properly address the merits of [her] assertion of error constitutes abandonment of the issue.” Houghton v Keller, 256 Mich. App. 336, 339-340; 662 NW2d 854 (2003), citing Yee v Shiawassee Co Bd of Comm’rs, 251 Mich. App. 379, 406; 651 NW2d 756 (2002). Accordingly, this argument is abandoned.
V. CONCLUSION
Affirmed.
/s/ Michael J. Riordan
/s/ Kirsten Frank Kelly
/s/ Thomas C. Cameron
Notes
In the following cases an agreement, contract, or promise is void unless that agreement, contract, or promise, or a note or memorandum of the agreement, contract, or promise is in writing and signed with an authorized signature by the party to be charged with the agreement, contract, or promise:
(a) An agreement that, by its terms, is not to be performed within 1 year from the making of the agreement.
