Marlette Auto Wash LLC v. Van Dyke Sc Properties LLC
Marlette Auto Wash LLC v. Van Dyke Sc Properties LLC
Opinion
*164 **195 In this case, plaintiff claims a prescriptive easement for ingress and egress over defendant's property on the basis of open, notorious, adverse, and continuous use of that property by a predecessor of plaintiff for at least 15 years. The question presented here is whether such use creates a prescriptive easement that is appurtenant, without regard to whether the previous owner of the dominant estate took legal action to claim the easement. The answer to that inquiry is yes.
MCL 600.5801(4), which provides for a 15-year period of limitations, is not contingent on whether the
**196
prior owner of the dominant estate took legal action to claim the prescriptive easement. Moreover, our caselaw establishes that one seeking to obtain record title of a prescriptive easement may establish that the elements were met by a prior owner in the claimant's chain of title. When a prescriptive easement has vested under a previous property owner's possession, the easement is appurtenant and is conveyed to subsequent owners in the chain of title without the need to show privity of estate.
Wortman v. Stafford
,
The Court of Appeals erred by requiring plaintiff to establish privity of estate with the previous owner, regardless of whether plaintiff could establish that the elements of a prescriptive easement were satisfactorily met by that prior owner. Moreover, the Court of Appeals erred by holding that the previous owner of the dominant estate must have taken legal action to claim the prescriptive easement in order for plaintiff to prove that a prescriptive easement had vested during the preceding property owner's tenure. Title by adverse possession is gained when the period of limitations expires, not when legal action quieting title to the property is brought. See
Gardner v. Gardner
,
I. FACTS AND PROCEEDINGS
In early 1988, Bernard and Evelyn Zyrowski owned a single unimproved tract of land at the corner of M-53 and Enterprise Drive (which later came to be **197 known as Euclid Street) in Marlette, Michigan. The land was conveyed to B & J Investment Company, which was owned by Bernard Zyrowski and his son James Zyrowski. The land was split into two parcels.
In the summer of 1988, B & J Investment began construction of a car wash on one of the two parcels. The remaining parcel was sold to Marlette Development Corporation by land contract on October 5, 1988. The car wash began operating in 1989, and from that date onward customers *165 of the car wash used the parking lot of the other parcel as one means of ingress to and egress from the car wash. In March 1990, Marlette Development's land contract was paid off and the deed recorded. No easement was reserved for the benefit of the car wash property. Several months later, Marlette Development Corporation opened a shopping center on their property.
In March 2000, the village of Marlette closed the north entrance to the car wash from Euclid Street. After the entrance was closed, B & J Investment expanded the car wash, adding four additional car wash bays across that newly closed entrance. Closing the north entrance left two ways to access the car wash: (1) from M-53, and (2) through the shopping center parking lot. The M-53 access was problematic, however, because it required customers to drive through a (sometimes occupied) semi-truck car wash bay in order to access the western portion of the car wash property. Access to this portion of the property was necessary for all those customers wishing to use the automatic car wash bays or the four newly built self-service car wash bays. Local residents testified that they never saw anyone access the car wash by the M-53 entrance because it was a dangerous turn.
**198 In April 2005, B & J Investment sold the car wash to Lipka Investments. At closing, Gary Lipka inquired how customers were to access the western portion of the car wash property. He was informed by Zyrowski that the car wash had been accessed through the shopping center parking lot since the car wash opened and that the parking lot was owned by the "Marlette Business Group." After talking to Zyrowski, Lipka believed that there would be no issue with the continued use of the parking lot because it had "been used for so long and never been blocked off...."
Approximately one year later, Lipka Investments defaulted on its loan with Tri-County Bank. Lipka Investments conveyed the car wash property to the bank in lieu of foreclosure on July 14, 2006. Shortly thereafter, the bank conveyed the property to GLCW, LLC, the property-holding entity of the bank. On September 28, 2006, GLCW entered into a lease and purchase agreement with plaintiff Marlette Auto Wash, LLC.
Six months later, Marlette Auto Wash purchased the property from GLCW. The purchase agreement did not include an easement, and Marlette does not allege that any statements were made regarding vehicular access at the time of purchase. Customers continued without interference to access the car wash by driving through the shopping center parking lot.
On May 22, 2013, defendant, Van Dyke SC Properties, LLC, purchased the shopping center property from Marlette Development Corporation. James Zyrowski, former co-owner of B & J Investment, is the sole owner of Van Dyke Properties. After undergoing renovations, the shopping center opened in November 2013. Shortly after opening the shopping center, defendant made clear that unless plaintiff contributed $1,500 per month to **199 support the overall maintenance of the parking lot, defendant would park trailers at the property line, closing off access to the car wash. Plaintiff refused.
The following month, the village of Marlette encountered heavy snowfalls. After plaintiff plowed snow from its property onto defendant's property, defendant blocked the western entrance to the car wash with snow, rendering the car wash property inaccessible for a day and a half. After that incident, plaintiff filed the present lawsuit, claiming an easement for ingress *166 and egress through defendant's parking lot. Defendant filed a counterclaim, seeking to quiet title and seeking monetary damages for parking lot maintenance, upkeep, and insurance.
A bench trial was conducted. At trial, James Zyrowski testified that he believed that B & J Investment had permission to use the parking lot for ingress to and egress from the car wash during the period that he and his father owned the car wash. This belief was based on a conversation that Zyrowski had with his father. Zyrowski did not recall when the conversation with the elder Zyrowski took place. Zyrowski was not present when the permission was allegedly given to his father, did not recall the year permission was given to his father, and did not recall any details regarding the scope of the permission. He acknowledged that B & J Investment never contributed any money toward the upkeep and maintenance of the parking lot.
In a written opinion, the trial court held that plaintiff had established a prescriptive easement for ingress and egress over defendant's property. The court found, among other things, that a prescriptive easement benefiting the car wash had vested in 2005. The court further concluded, given its authority as a court of equity, that the person now trying to preclude the **200 current owners of the car wash from using the parking lot access was the same person who used this same parking lot for access to his car wash when he owned the car wash property. The trial court excluded defendant's evidence in support of its counterclaim seeking "amounts claimed for contributions for parking lot expenses," because the evidence was not disclosed to plaintiff before trial.
In an unpublished per curiam opinion, the Court of Appeals affirmed in part, vacated in part, and remanded for entry of judgment in defendant's favor on the prescriptive easement issue. The Court of Appeals affirmed the trial court's decision regarding defendant's counterclaim, concluding that the trial court had not erred by excluding defendant's evidence as a discovery sanction.
Concerning the easement claim, the Court of Appeals reversed, holding that the trial court had erred by granting a prescriptive easement because plaintiff had failed to establish privity of estate with the previous owner. Plaintiff argued that privity need not be established because the 15-year period elapsed during the time that Zyrowski owned the car wash, and a prescriptive easement vested to the benefit of all subsequent property owners. While the Court of Appeals acknowledged that a property interest acquired through adverse possession vests when the statutory period expires and not when the action was brought, the Court of Appeals held that plaintiff's claim failed because "no previous owner of the car wash asserted a claim of prescriptive easement with regard to defendant's property."
Marlette Auto Wash, LLC v. Van Dyke SC Props., LLC
, unpublished per curiam opinion of the Court of Appeals, issued May 10, 2016 (Docket No. 326486), p. 3,
We granted plaintiff's application for leave to appeal, asking the parties to address "whether open, notorious, adverse, and continuous use of property for at least fifteen years creates a prescriptive easement that is an easement appurtenant, without regard to whether the owner of the dominant estate took legal action to claim the easement."
Marlette Auto Wash, LLC v. Van Dyke SC Props., LLC
,
II. ANALYSIS
Whether a predecessor in title to a dominant estate is required to take legal action to claim a prescriptive easement in order to create an easement appurtenant is a question of law, which we review de novo. See
Beach v. Lima Twp.
,
The adverse-possession statute, first codified in 1846, has a long pedigree in Michigan law. 1 MCL 600.5801 provides in relevant part:
**202 No person may bring or maintain any action for the recovery or possession of any lands or make any entry upon any lands unless, after the claim or right to make the entry first accrued to himself or to someone through whom he claims, he commences the action or makes the entry within the periods of time prescribed by this section.
* * *
(4) In all other cases under this section, the period of limitation is 15 years.
The elements of adverse possession are also well established. A party claiming adverse possession must show clear and cogent proof of possession that is actual, continuous, open, notorious, exclusive, hostile, and uninterrupted for the relevant statutory period.
Yelverton v. Steele
,
Just as ownership of land may be acquired through adverse possession, so too may an easement be acquired through prescription.
Outhwaite v. Foote
,
**203
St. Cecelia Society v. Universal Car & Serv. Co.
,
If "no single period" of adverse use amounts to the 15-year statutory period, a party claiming a prescriptive interest may tack the possessory periods of their predecessors in interest "to aggregate the 15-year period of prescription" if the claimant can show privity of estate.
*168
Stewart v. Hunt
,
Defendant contends that plaintiff's prescriptive easement claim fails because plaintiff has not used defendant's property for 15 years and cannot establish privity of estate. However, Michigan caselaw makes clear that a claimant seeking to prove the existence of a prescriptive easement may establish that the requisite elements were met by the claimant's predecessor in interest. When a prescriptive easement vests with **204 the claimant's predecessors in interest, the easement is appurtenant and transfers to subsequent owners in the property's chain of title without the need for the subsequent owner to establish privity of estate.
In
Wortman
,
The
Wortman
Court held that the facts indicated "an easement rather than a lease or a license."
Id
. at 559,
**205 The plaintiff next argued that the defendant could not tack the defendant's period of use to that of his predecessor in interest, Jonathan Stafford. The Court rejected the claim that the defendant was required to establish privity of estate, holding:
The question of the continuity of possession and use[ ] by successive holders in privity to sustain title by prescription is not involved here. The statute of limitations *169 had run its course in his favor long before the elder Stafford died. Like peaceable possession and use[ ] continued thereafter by his successors as of right , and not of suffrance was but confirmatory of his established easement. [ Wortman ,217 Mich. at 560 ,187 N.W. 326 (emphasis added).]
In
Haab
,
Concerning the fourth property owner, Peter Karson, the Court held that he possessed a prescriptive easement in the alley, explaining:
The trial court in its opinion refers to the case of Zemon v. Netzorg ,247 Mich. 563 [226 N.W. 242 (1929) ] which held that one might not tack his adverse holdings for less than the prescriptive period of 15 years, even if the predecessor's holdings are shown to be adverse, if there is no conveyance to him or in his chain of title purporting to convey such an easement. One Adam Schaner, however, held the Karson parcels for more than 30 years and so established in his own name a valid easement without **206 tacking . Once established, the right-of-way was an easement appurtenant and therefore passed by the deed of the dominant estate although not expressly mentioned in the instrument of transfer, and even without the word "appurtenances." [ Haab ,332 Mich. at 143-144 ,50 N.W.2d 856 (emphasis added).]
The Court noted that the testimony of elderly witnesses established that the alley had been used by the dominant estates "the entire time they were owned by Schaner, as well as continuously up to the present time."
Id
. at 144,
It is evident that, under both Wortman and Haab , when a claimant can demonstrate that a predecessor-in-interest met the requirements for the establishment of a prescriptive easement, the vested easement transfers to subsequent property owners in the chain of title without the obligation to show privity of estate. Wortman and Haab also hold that, when the property has been adversely used in excess of the prescriptive *170 period for a substantial period of time, the burden shifts to the servient estate owner to show that the use was merely permissive. We reaffirm these principles in this case.
The Court of Appeals purported to rely on
Reed
,
Mutual or permissive use of an area will not mature into a prescriptive easement unless the period of mutuality ends and adverse use continues for the statutory period. However, when use has been in excess of the prescriptive period by many years, a presumption of a grant arises and the burden shifts to the servient estate owner to show that use was merely permissive. [ Reed ,106 Mich.App. at 346 ,308 N.W.2d 201 (citations omitted).]
As noted in both
Wortman
and
Haab
, the fact that property has been used in excess of the prescriptive period for "many years" is not pertinent to whether the requirements of a prescriptive easement have been met; nor is it germane to whether the proponent of the easement is required to establish privity of estate with a predecessor in the proponent's chain of title under whose ownership a prescriptive easement had vested. Rather, when the parties seek a judicial determination conclusively settling their respective property interests, and the proponent of the alleged easement provides evidence that the easement has been used in excess of the 15-year prescriptive period by "many years," the burden of production is then shifted to the opponent of the easement to establish that the use was merely permissive. See
Berkey & Gay Furniture Co.
,
**208
Myer v. Franklin Hotel Co.
,
The Court of Appeals' alternative rationale for rejecting plaintiff's claim is equally without merit. Quoting
Gorte v. Dep't of Transp.
,
It is not clear why the Court of Appeals believes a prior property owner must have previously asserted a prescriptive easement claim in order for a prescriptive easement to vest, because, if a prior property owner had successfully asserted a prescriptive easement claim, marketable title of record as a result of the
*171
previous judicial decree would already exist for the property, and the current property owner would have no reason to file a lawsuit seeking to establish record
**209
title to the property by prescriptive easement. See
Escher v. Bender
,
Contrary to defendant's arguments, however, Michigan courts have followed the general rule that the expiration of the period of limitation terminates the title of those who slept on their rights and vests title in the party claiming adverse possession. Thus, assuming all other elements have been established, one gains title by adverse possession when the period of limitation expires, not when an action regarding the title to the property is brought. [ Id . at 168-169,507 N.W.2d 797 (citations omitted).]
Therefore, that portion of Gorte quoted by the Court of Appeals simply describes the general effect of an adverse-possession claim, assuming that all the other elements have been established. It does not stand for the proposition that a party must file a legal claim for title to vest by adverse possession. The final sentence of the quoted Gorte language specifically provides otherwise: one gains title by adverse possession when the period of limitations expires, not when an action regarding the title to the property is brought. 2 Furthermore, **210 as this Court has explained, an adverse possessor acquires legal title to property when the statutory period ends, but that title is neither recorded nor marketable until the property interest is established by judicial decree:
This Court has long recognized the common law doctrine of adverse possession, which the Legislature has since codified. To establish adverse possession, the party claiming it must show "clear and cogent proof of possession that is actual, visible, open, notorious, exclusive, continuous and uninterrupted for the statutory period of 15 years, hostile and under cover of claim of right." After the statutory period ends, the record owner's title is extinguished and the adverse possessor acquires "legal title" to the property. Acquisition of title in this manner includes "the right to defend the possession and to protect the property against the trespass of all others." However, the title acquired by adverse possession is neither record title nor marketable title until the adverse possessor files a lawsuit and obtains a judicial decree . Thus, until an adverse possessor obtains the necessary judicial decree, there is no record of the adverse possessor's ownership interest to verify whether the possessor actually satisfied *172 the elements of adverse possession. [ Beach ,489 Mich. at 106-107 ,802 N.W.2d 1 (emphasis added; citations omitted).]
In urging the correctness of the Court of Appeals opinion, defendant argues that, if this Court does not require a prior property owner to take legal action to claim a prescriptive easement, the law would recognize the existence of "secret" easements not apparent to the purchaser of the servient estate. Defendant, having enjoyed the beneficial use of the parking lot access to
**211
the car wash, certainly has no legitimate argument that the claimed easement was in any way "secret." Moreover, in order for plaintiff to successfully establish a prescriptive easement, plaintiff must show clear and cogent proof of possession that is actual, continuous, open, notorious, hostile, and uninterrupted for the relevant statutory period. " 'The possession must be so open, visible, and notorious as to raise the presumption of notice to the world that the right of the true owner is invaded intentionally, and with the purpose to assert a claim of title adversely to his,
so that if the true owner remains in ignorance it is his own fault
.' "
Ennis v. Stanley
,
Thus, the very claim that plaintiff is required to prove by clear and cogent proof militates against ancient prescriptive easements arising under clandestine circumstances. Moreover, defendant's specter of secret prescriptive easements that "spring to life" many decades after their purported creation are allayed by existing legal principles. A prescriptive easement is extinguished after 15 years of nonuse by the owner of the dominant estate, without the servient estate being required to prove that its possession was hostile or adverse.
McDonald v. Sargent
,
III. CONCLUSION
Michigan caselaw establishes that the open, notorious, adverse, and continuous use of property for the relevant statutory period creates a prescriptive easement that is appurtenant, without the need for the claimant to show privity of estate with the prior owner.
Wortman
,
Stephen J. Markman, C.J., Brian K. Zahra, Bridget M. McCormack, David F. Viviano, Richard H. Bernstein, JJ., concur.
Clement, J., took no part in the decision of this case.
Initially, the period of limitations was 20 years. See 1846 RS, ch. 139, § 1; 1857 CL 5350. The 15-year period of limitations was first adopted in 1863. See
The panel also cited
Siegel v. Renkiewicz' Estate
,
Reference
- Full Case Name
- MARLETTE AUTO WASH, LLC, Plaintiff-Appellant, v. VAN DYKE SC PROPERTIES, LLC, Defendant-Appellee.
- Cited By
- 40 cases
- Status
- Published