WILSON v TAYLOR
Docket No. 105906
Supreme Court of Michigan
Decided May 6, 1998
457 MICH 232
Argued December 9, 1997 (Calendar No. 5).
In an opinion by Justice CAVANAGH, joined by Chief Justice MALLETT, and Justices BRICKLEY and KELLY, the Supreme Court held:
The writ of restitution was issued improperly.
2.
Reversed.
Justice TAYLOR, joined by Justice WEAVER, dissenting, stated that issuance of the writ of restitution should be affirmed because defendants failed to pay even the minimum amount due during the period of redemption.
The majority is apparently unwilling to enforce the statutory time limit because Flynn v Korneffel, 451 Mich 186 (1996), was not cited by either party. However, an appellee‘s failure to adequately brief a case does not preclude affirming the result reached below when there was no error. The Supreme Court has a duty to follow the law if it is within its knowledge what the law is.
A consent judgment does not strip the instrument of its contractual character. Moreover, a consent judgment possesses the same force and character as other judgments. In this case, the parties resolved their dispute by contracting for the amount the defendants owed, when it would be paid, and the result that would follow if defendants failed to perform. The parties placed their agreement on the record and obtained a judgment that embodied these terms. They later modified their agreement to give the defendants additional time to pay, and this agreement also was reduced to an order of the court. After the defendants failed to perform as required, a writ of restitution was entered pursuant to the terms of the consent judgment. By holding the “further orders” language of the judgment invalid under
Justice BOYLE, dissenting, stated that because the defendants failed to pay the balance owed within the statutory period of redemption, the writ of restitution was properly issued.
Rappleye & Wilkins, P.C. (by William G. Rappleye), for plaintiffs-appellees.
Stephen D. Conley for defendants-appellants.
Amici Curiae:
Jerrold Schrotenboer for Legal Services Association of Michigan, Legal Services of Southeastern Michigan, Inc., Michigan Legal Services, and United Community Housing Coalition.
Pepper, Hamilton & Scheetz, L.L.P. (by Vicki R. Harding and Lisa S. Gretchko), for Real Property Law Section of the State Bar of Michigan.
CAVANAGH, J. In this case, we are called on to decide whether a defendant against whom a land contract forfeiture judgment has been obtained must pay an amount, representing the monthly payments under the contract, in excess of the judgment to preclude entry of a writ of restitution.1 For the reasons detailed
I
Defendants in this case are husband and wife. They entered into a land contract for a two-unit residential property with Lynette Marie Luft in August 1989. In January 1992, Luft assigned her interest in that contract to the plaintiffs, two attorneys. In April 1992, plaintiffs commenced a forfeiture action in the 12th District Court. Plaintiffs voluntarily dismissed that action, and then filed a second forfeiture notice in August 1992.2 It is this action from which the present appeal arises.
On October 27, 1992, the defendants, who were not represented by counsel, consented to entry of judgment in favor of the plaintiffs for $2,000. In a brief hearing,3 both defendants acknowledged that $2,000 was “due and owing.” Ms. Taylor also replied affirmatively when the court inquired if she was familiar with the terms outlined in the judgment. The defendants agreed with the court that, because less than half the total contract had been paid, the redemption period would be ninety days. Finally, plaintiff Rappleye also agreed with the court that $2,000 was the redemption amount.
The plaintiffs drafted the judgment on a standard State Court Administrative Office approved form.
Between October 27, 1992, and the end of January 1993, the defendants paid the plaintiffs a total of $1,800. On February 5, 1993, after the redemption period had expired, but before any further action in this matter, the defendants paid an additional $350 to the plaintiffs, bringing the total amount paid to $2,150. Nonetheless, the plaintiffs moved for issuance of a writ on the ground that, following the “further orders” language, and applying the bulk of the monies paid to the $1,600 that had become due under the contract,4 the defendants remained significantly in arrears.5
The defendants did not make any further payments before February 18, 1993, and, on that day, the plaintiffs applied for and received a writ of restitution ex parte. The application for the writ indicated the “No payment has been made on the judgment and/or no rent has been received since the date of judgment, except the sum of $1,400.00 received under the following conditions: per the judgment.”7
Defendants appealed in the Jackson Circuit Court, which affirmed. In the course of this appeal, an appeal bond and escrow order was entered, requiring the defendants to continue their $400 land contract payments each month. The circuit court continued the appeal bond and escrow order to allow the defendants to proceed in the Court of Appeals. The defendants claim in this Court that they have continued to make every monthly payment since the entry of the escrow order, and the plaintiffs do not dispute that.
The Court of Appeals, in an unpublished per curiam opinion,8 affirmed in part and reversed in part. Finding the district court to have erred in the application of the “further orders” language, the Court of Appeals held that such language was an “improper ‘clog’ on
We granted leave to appeal to address this issue, which may affect a substantial number of land contract vendors and vendees, and invited the Michigan State Bar Real Property Law Section to file a brief amicus curiae.10 We now affirm in part, and reverse in part.
II
The question before us concerns the appropriateness of the Court of Appeals sanctioning the use of summary forfeiture proceedings to enforce the payments due on the underlying land contract that accrue after a judgment has been entered, but prior to the issuance of a writ of restitution. The Court of Appeals held that the failure to make such payments constituted a material breach under the contract sufficient to support the issuance of a writ of restitution. We review this question of law de novo. Cardinal Mooney High School v Michigan High School Athletic Ass‘n, 437 Mich 75; 467 NW2d 21 (1991).
A
The concept of forfeiture in the land contract setting has undergone a substantial evolution under
This Court rejected that argument, reasoning:
This method would cause a multiplicity of suits and serve no useful end. We believe that the practice heretofore generally followed of including all amounts due up to the date of the judgment is correct, and carries out the intent and purpose of the present statute. [Id. at 27.]
This same concern resonated in the views of the circuit court below. While the argument was abandoned here, the plaintiffs did advocate such a concern below. While we agree that such a concern can, in some circumstances, be very legitimate, we do not find it so here.
In Gruskin v Fisher, 405 Mich 51; 273 NW2d 893 (1979), we addressed the area of land contract forfeitures as concerning the issue of election of remedies. We noted that, historically, the effect of the service of a notice of forfeiture was to end the contract, and, thus, was an election of remedies. Under modern summary proceeding practice, however, we found that a notice of forfeiture actually acted more as a condition precedent to the commencement of summary proceedings. In modern practice, including summary proceedings under the Revised Judicature Act,
We have recently restated the belief that the Revised Judicature Act is a codification of the common-law rule of election of remedies, with some arguable modifications. Michigan Nat‘l Bank, Trustee v Cote, 451 Mich 180; 546 NW2d 247 (1996). While we do not return to the issues underlying Gruskin or Cote today, we are confident that the option of instituting a foreclosure action, as opposed to a forfeiture action, existed for the plaintiffs when they filed their initial claim.11 Indeed, we note that the plaintiffs earlier had filed and then dismissed a forfeiture action, for reasons that are not clear from the record. Whatever their reasons, the possibility of the need to file repeated forfeiture actions appears to have been more than an abstract concept to the plaintiffs. Nonetheless, they chose to forgo the acceleration advantages of a foreclosure action in favor of the ease of a summary forfeiture proceeding.
This leads us to dispose of the problem that so troubled the circuit court and was a basis of arguments for the plaintiff below. A land contract vendor in the plaintiffs’ position need never face the diffi-
B
We note that while the defendants and amici curiae urge us to address the question of a clogging of the
To be thorough, however, and also to provide guidance to the bench and bar, as requested by the amici
If the jury or the judge finds that the plaintiff is entitled to possession of the premises, or any part thereof, judgment may be entered in accordance with the finding and may be enforced by a writ of restitution as provided in this chapter. If it is found that the plaintiff is entitled to possession of the premises, in consequence of the nonpayment of any money due under a tenancy, or the nonpayment of moneys required to be paid under an executory contract for purchase of the premises, the jury or judge making the finding shall determine the amount due or in arrears at the time of trial which amount shall be stated in the judgment for possession. In determining the amount due under a tenancy the jury or judge shall deduct any portion of the rent which the jury or judge finds to be excused by the plaintiff‘s breach of the lease or by his breach of 1 or more statutory covenants imposed by section 39 of chapter 66 of the Revised Statutes of 1846, as added, being section 554.139 of the Compiled Laws of 1948. The statement in the judgment for possession shall be only for the purpose of prescribing the amount which, together with taxed costs, shall be paid to preclude issuance of the writ of restitution. The judgment may include an award of costs, enforceable in the same manner as other civil judgments for money in the same court. [Emphasis added.]
The statute clearly requires that the amount stated shall prescribe the amount to be paid to preclude issuance of the writ. Here the amount stated in the judgment was $2,000. The “further orders” language operated to circumvent this amount and purported to require that an amount in excess of the $2,000 stated actually would be required to prevent issuance of the
C
We now address the holding of the Court of Appeals that the failure to make monthly payments during the redemption period was a material breach sufficient to justify issuance of the writ of restitution. In so finding, the Court of Appeals relied on
When the judgment for possession is for nonpayment of money due under a tenancy or for nonpayment of moneys required to be paid under or any other material breach of an executory contract for purchase of the premises, the writ of restitution shall not issue if, within the time provided, the amount as stated in the judgment, together with the taxed costs, is paid to the plaintiff and other material breaches of an executory contract for purchase of the premises are cured.
While we agree that this subsection applies to this question, we find that the Court of Appeals erred in interpreting it. The statute quoted prevents the issuance of a writ of restitution if payment is made in an amount provided in the judgment and other material breaches are cured. The statute separates “nonpayment of moneys required to be paid,” from “any other material breach.” It clearly divides monetary and nonmonetary breaches. It seems clear that whatever the other material breaches may be, they do not include the failure to make monetary payments.
To hold otherwise would run contrary to the specific language of the statute and logic. A writ of restitution is issued only upon a failure to pay the amount specified in the judgment. To permit its issuance upon
As we have already noted,
III
As we have noted, the Court of Appeals found that the reason relied on by the trial court for the issuance of the writ, the failure of the defendants to comply with the “further orders” language, was erroneous. We are not called on to review that decision. The sole
MALLETT, C.J., and BRICKLEY and KELLY, JJ., concurred with CAVANAGH, J.
TAYLOR, J. (dissenting).
I
Defendants were the vendees in a land contract agreement entered into with Lynette Luft. Luft subsequently assigned her interest in the property to plaintiffs. Defendants did not make timely payments on the land contract and, consequently, in October, 1992, after serving notice of forfeiture on defendants with no payment received thereafter, plaintiffs initiated a forfeiture proceeding by filing a complaint for possession. Subsequently, the parties agreed that the land contract was $2,000 in arrears, and on October 27, 1992, the parties appeared in district court and stipulated to the entry of a judgment. The judgment required that defendants pay the $2,000 arrearage and that “all monies paid during [the] redemption period shall first be applied to keep payments current and
Defendants subsequently paid plaintiffs $2,150. They paid $1,800 during the redemption period specified in the consent judgment ($600 on October 19, 1992, and $400 on November 5, 1992, December 14, 1992, and January 8, 1993). Three hundred-fifty dollars were paid on February 5, 1993, after the deadline had expired. Because the judgment had not been satisfied, plaintiffs moved for a writ of restitution. A hearing was conducted on February 9, 1993. The parties submitted a stipulated order requiring that defendants pay $1,450 by February 18, 1993. This amount represented the unpaid balance due under the October 27, 1992, judgment. Effectively, plaintiffs gave defendants additional time to cure the default. Defendants acknowledged on the record that they had agreed to pay the $1,450 or be put out of the
Defendants, up to this time unrepresented by legal counsel, retained an attorney and sought to have the writ of restitution set aside on the basis that the original judgment was unenforceable. Defendants claimed that the consent judgment contained an impermissible clog on their right of redemption because it required that all payments made during the redemption period would first be applied to the current month‘s rent. The district court refused to set the writ
II
I would affirm the result reached by the Court of Appeals, albeit for a different reason than relied on by that Court. If, as the majority clarifies for the benefit of the bench and bar, the judgment must be construed pursuant to
The majority is apparently unwilling to enforce the statutory time limit because Flynn was not cited by either party. I agree that this Court is not obliged to research an appellant‘s legal arguments when the appellant fails to do so. Yet, there is a critical difference between the appellant‘s obligation to demonstrate that error occurred below and the role of an appellee. While an appellant bears the burden of directing this Court to the authority that will substantiate its claim of error, appellees are not similarly required to demonstrate the lack of error below. This Court has specifically noted that an appellee‘s failure to adequately brief a case does not preclude affirming the result reached below when there was no error.
No argument is made in the brief for the appellee to support the rulings admitting testimony, the charge of the court, or the theory according to which the issue of fact was left with the jury. Nevertheless, we must sustain the judgment if no error occurred at trial. [Int‘l Text-Book Co v Marvin, 166 Mich 660, 666; 132 NW 437 (1911).]
Moreover, this Court has specifically stated that the failure to raise an issue, both below and in the briefs
In this case the majority simply refuses to apply the statutory time limit and controlling precedent, well within the Court‘s knowledge, because the parties’ briefs were inadequate in this regard. Such action is contrary to the fact that the Court is obliged to follow the law. I would affirm issuance of the writ of restitution because defendants failed to pay even the minimum amount due during the period of redemption.
III
I further disagree with the majority‘s conclusion that the “further orders”6 language of the judgment was improper in this case. This case presents us with the common situation where a lawsuit is resolved by
IV
Apart from the fact that the judgment was an enforceable contract between the parties that entitled plaintiffs to the writ of restitution, there is yet another problem with the majority‘s analysis. It holds that any judgment for possession arising out of a land contract dispute may not require the vendee to bring the contract completely current by the end of the redemption period provided in the judgment. This, of course, means that, at the end of the redemption period, if these monthly accruing payments are not made, the contract will again be in arrears and the vendors, once again, would need to initiate proceedings to receive the money they are due. This, as seems obvious, can be a never-ending litigation treadmill. Arguably, this outcome is required if proceeding to judgment under the statute.
However, we should not have to reach this issue because this judgment was not taken under the statute. Rather it was, as I have earlier explained, an enforceable agreement that stands independent of the summary proceedings statute. Given this situation, the parties should be able, if they settle their case before trial under the statute, to make such arrangements as they would wish with regard to accruing payments. The majority precludes the parties from having this latitude, however, by their handling of this
Typically the vendor has his own payments to make on the property. To tell him to wait months or years as he goes through pretrial mediation, discovery, settlement conferences, and trial in a foreclosure action is to commit him to a desperate situation where he is really without a meaningful remedy. In Gruskin v Fisher, 405 Mich 51, 64; 273 NW2d 893 (1979), this Court noted that, at that time, it could take up to five years for a foreclosure action to proceed to trial in Wayne County.
Land contract purchasers generally do not willingly surrender possession or forfeit their equity. Most sellers do not seek a return of the property, but payment.
There is no reason to burden the circuit courts with actions to foreclose land contracts. Land contract sellers should not be encouraged to commence such proceedings. [Id. at 63.]
It is in this light that we should view the current controversy. If we emasculate a vendor‘s ability to negotiate resolution of a land contract dispute with his vendee and get the land contract vendee to bring his payments completely current, the result will not be, once the dawn breaks with respect to what we have done, that land contract disputes will simply be handled in foreclosure actions. The outcome will be that we will greatly discourage vendors from offering land contracts. This will be of little moment for financially substantial citizens and institutions that may
Consequently, I would affirm the result reached by the Court of Appeals.
WEAVER, J., concurred with TAYLOR, J.
BOYLE, J. (dissenting). I join with the dissent for the reason that the balance owed was not paid during the period of redemption. In Flynn v Korneffel, 451 Mich 186, 199; 547 NW2d 249 (1996), this Court stated that it was “incumbent on the vendee in default to pay the entire balance within [the period of redemption].” Because the defendants failed to pay that amount within the statutory period of redemption, the writ of restitution was properly issued.1
Notes
The Court: You‘re familiar with the terms outlined in this land contract forfeiture judgment, are you, ma‘am?
Tonia Taylor: Yes.
The Court: And you‘re willing for the Court to sign it?
Tonia Taylor: Yes.
Robert Taylor: Yes. Contrary to the majority‘s assertion, the issue in this case is not limited to whether the Court of Appeals erred in determining that the failure to pay the monthly payments was a “material breach” under
The Court: Tonia Taylor. So you‘ve heard what Mr. Wilson has had to say, and you‘ve also reviewed this document called the stipulation?
Mr. Taylor: Right.
The Court: That‘s another word for an agreement and an order. It looks like you both signed that. Did you do that here this morning?
Mr. Taylor: Yes, ma‘am.
The Court: All right, so do you understand what the agreement is that you‘ve reached here today?
Mrs. Taylor: Yes.
* * *
The Court: . . . And if you have that paid by that time then this matter would be closed and at an end. However, if you fail to do that, Mr. Wilson will appear here then for Writ of Restitution, which means you would be put out of the property. Do you understand all of that?
Mr. Taylor: Yes, ma‘am.
The Court: And that‘s the agreement that you‘ve reached? And you understand then having reached that agreement that I‘m going to sign this order here today?
Mr. Taylor: Yes.
Plaintiffs’ brief on appeal to this Court includes an attachment consisting of canceled checks and money orders received from the defendants. While the three amounts above appear on instruments with dates close to those above, an additional $400 check dated November 5, 1992 is included, along with a $350 check dated February 5, 1993.
While it is apparent that the $350 check was issued after the date the plaintiffs’ motion was signed, the absence of any mention of the November 5, 1992, check is troubling. The motion claims that defendants have “failed to pay the monies which were due on the payments which accrued during the redemption period and have paid nothing toward the outstand- It is even dubious to me that this rule will in fact be applied consistently. The following hypothetical situation makes the point. If a person appeared before this Court after winning on a procedural basis below, asking that he be released from involuntary servitude, yet failed to cite the Thirteenth Amendment of the United States Constitution, prohibiting slavery, would we decline to affirm the lower courts because of that failure? I think not. I grant that I offer an extreme example, yet, its lesson is clear.
In short, it appears that both the motion and the application for the writ of restitution significantly understate the payments actually received, and the plaintiffs’ various competing rationales all fail to support the claims made in the application for the writ. While it may be arguable that the first settlement agreement was not enforceable pursuant to
The dissent‘s citation of Gruskin for the proposition that forfeiture proceedings should not be encouraged arrives without the necessary context. As we noted immediately before that statement, “[land contract] sellers do not seek a return of property, but payment.” Gruskin at 63. We noted the availability of summary forfeiture proceedings, which “move expeditiously and generally accomplish their purpose of persuading the purchaser to cure the delinquency.” Id. at 64. “If it appears that the purchaser does not desire or intend to perform and is willing to surrender his equity, then the seller must make a decision and, under the statute, is put to an election of remedies. He may accept possession or, if he wishes to obtain a deficiency judgment, abandon the summary proceedings in favor of foreclosure action.” Id. at 64. Contrary to the dissent‘s implication, our decision in Gruskin hardly amounts to a wholesale disfavoring of foreclosure actions.
It seems clear that the court should not be authorizing the entry of a writ on the basis of the owing of an amount that has never been (1) accurately ascertained, or (2) even been proven to be owed before the court.
