Essay Flashcards
Bailment
A bailment is formed by the delivery of personal property by one person to another in trust for a specific purpose, coupled with an express or implied contract.
A bailee who is entrusted with the bailor’s personal property is responsible for exercising a level of care over the bailed property that corresponds with the three categories of bailment that are distinguished according to who benefits from the relationship.
A bailment is for the sole benefit of the bailor (property owner), the bailee is only liable for gross negligence.
A bailment that benefits only the bailee, bailee is liable for even the slightest negligence.
A bailment that benefits both parties, bailee is liable for ordinary negligence.
Gift
(1) the donor must possess an intent to gratuitously pass title to the donee;
(2) there must be actual or constructive delivery; and
(3) the donee must accept the gift, although a gift beneficial to the donee will be presumed to
have been accepted.
Gift Causa Mortis
Gift of personal property made by a person in the expectation of imminent death, on condition that the donor dies as anticipated, leaving the donee surviving him.
It is the apprehension or expectation of imminent death, and not the actual imminence of death, which is evaluated
Gift engagement ring
Given in contemplation of marriage. If the engagement is cancelled, the ring must be returned if the donor so requests since the gift is not capable of being completed because the condition or marriage is not met.
Lost and Unclaimed Property Act
In Michigan, there is no legal distinction between lost and mislaid property with respect to a finder’s legal status as it relates to the owner. The Lost and Unclaimed Property Act requires the finder to report the finding or deliver the property to a law enforcement agency in the jurisdiction where the property is found.
The person shall provide their name and current address to the law enforcement agency and shall inform the agency of any change in their address.
Law enforcement would be required to mail notice to any known legal owner of major value property identifying, among other things, its location, the date found, type of property, etc.
Property categorized as having major value may be returned to the finder if the owner fails to claim it within six months from the date of the notice or if a legal owner cannot be established or located.
Property of major value is statutorily defined as “any property that is not collectible currency, contraband, currency, evidence, hazardous material, junk, perishable property, or property of minor value.
Abandoned Property
First, it must be shown that there is an intent to relinquish the property and,
second, there must be external acts that put that intention into effect.
Garnishment
A judgment creditor has the legal right to the garnishment of the assets, or payments due.
Judgment debtors may file objections to garnishments:
(a) the funds or property are exempt from garnishment by law;
(b) garnishment is precluded by the pendency of bankruptcy proceedings;
(c) garnishment is barred by an installment payment order;
(d) garnishment is precluded because the maximum amount permitted by law is being withheld pursuant to a higher priority garnishment or order;
(e) the judgment has been paid;
(f) the garnishment was not properly issued or is otherwise invalid.
Financial hardship is not a proper challenge to a garnishment.
Timelines for Judgement Collections
Generally, collection efforts are only allowed to begin on a final judgement 21 days after entry. The statute of limitations for collection on a judgement is 10 years.
The court will issue a writ of garnishment which must be served on garnishee within 182 days, garnishee must serve debtor within 7 days, and garnishee must then file a disclosure statement with the court within 14 days. 28 day grace period or judgement against garnishee.
Wages
- Max 25% of weekly disposable wages.
Joint Bank Account
- Likely only entitled to one half of the contents of the account. Holders of join bank accounts are considered joint tenants with rights of survivorship. Absent facts to the contrary, two account holders are presumed to contribute equally to the account balance.
Writ of Execution
Assets (typically vehicles)
- Assets can be sold and the proceeds would be credited to the judgment balance. Must not breach the peace in collecting asset.
Transfers to other people are voidable under the “Uniform Voidable Transactions Act” which allows for the reversal of fraudulent transfers, if it can be shown by a preponderance of the evidence that the transfer was intended to defraud the creditor.
Social Security
- Social security benefits are exempt from garnishment.
Commercial Lease Rental Payments
- Under Michigan Law, rental payments may be garnished by court order; ordering a tenant to pay the creditor directly a percentage of the rent.
Inheritance money in a bank account
- Creditors may garnish a bank account funded primarily by inheritance money through a non-periodic (ONE-TIME) payment from the account, not to exceed the judgment amount.
Contracts Choice of Law
The place with the most significant relation will govern.
A choice of law provision will govern unless that state has no relation the parties or transaction.
If there is NO choice of law provision:
- place of contract
- place of contract negotiation
- place of performance
- location of the subject matter of the contract
- domicile, residence place of incorporation and place of business of the parties.
Tort Choice of Law
Michigan uses the “Interest Analysis” when more than one state is implicated. MI Courts apply MI law unless a rational reason exists to do otherwise.
First, we must determine if any foreign state has an interest in having its law applied. If no state has such an interest, the presumption Michigan law will apply cannot be overcome.
In regard to a tort action for personal injury:
(a) the place where the injury occurred,
(b) the place where the conduct causing the injury occurred,
(c) the domicile, residence, nationality, place of incorporation, and place of business of the parties, and
(d) the place where the relationship, if any, between the parties is centered.”
Note: Being a resident of a foreign state is not enough to use foreign law.
Agency Actual, Implied, or Apparent (Ostensible) Authority
An agency is a fiduciary relationship created by express or implied contract or by law, in which one party (the agent) may act on behalf of another party (the principal) and bind that other party by words or actions.
The authority of an agent to act on behalf of a principal such that the principal is bound by those actions, is either (1) actual or (2) apparent/ostensible.
Actual authority may be express or implied. Implied authority is the authority which an agent believes they possess.
Apparent authority may be found when principal reasonably leads a third person to believe that an agency relationship exists based on the totality of circumstances. A principal may be estopped from challenging the authority of an agent when a person of ordinary prudence is justified in assuming the agents authority.
(1) the person dealing with the agent must reasonably believe in the agent’s authority
(2) the belief must be generated by some act or neglect on the part of the principal sought to be charged, and
(3) the person relying on the agent’s authority must not be guilty of negligence
Ratification
Ratification is the affirmance by a person of a prior act which did not bind them but which was done or professedly done on their account, whereby the act is given effect as if originally authorized by them.
Affirmance is either
(a) a manifestation of an election by one on whose account an unauthorized act has been done to treat the act as authorized, or
(b) conduct by him justifiable only if there were such an election.
Formal Will
Holographic Will
Failed Will
Anti-lapse
EPIC Estate and Protected Individuals Code
18 years of age or older and of sufficient mental capacity.
Understand providing for disposition of property after death
Nature and extent of property
Natural objects of their bounty
Understand in reasonable manner the general nature and effect of signing the will
Writing
Signed by testator
Two witnesses (can be interested)
Material provisions of the will are in the testator’s handwriting
Signed by the testator
Dated
Clear and convincing evidence of decedent’s intent that writing is a will, revocation, alteration, or revival.
Any assets not disposed of by will passes be intestate succession.
Anti-lapse
If a devisee fails to survive the testator, but the devisee is a grandparent, decendant of grandparent, or stepchild, then the gift will pass to the decendants of the beneficiary, provided they survive by 120 hours after the testator’s death. The surviving decendants take by representation the property to which the devisee would have taken had the devisee survived the testator.
Undue influence
1) fiduciary relationship, 2) fiduciary takes under will, and 3) opportunity for influence.
120 hour rule
an individual who fails to survive the decedent by 120 hours is considered to have predeceased the decedent for purposes of . . . intestate succession, and the decedent’s heirs are determined accordingly
Elective Share
One half of intestate share less half the value of all the property received from decedent outside of will
Five statutory trust requirements
Michigan Trust Code
Transfer of property to another person as trustee during the settlor’s lifetime.
Settlor has capacity
Settlor has intent to create trust
Definite beneficiary, charitable trust, trust for noncharitable purpose, trust for the care of an animal
Trustee has duties to perform
Same person is not the sole trustee and sole beneficiary
Oral - clear and convincing evidence (only personal property)
Carry out to give effect to the settlor’s intentions, as long as lawful, not contrary to public policy, and possible to achieve.
Court may reform a trust to conform to the settlor’s intent when affected by mistake of law or fact.
Spendthrift provisions are valid and enforceable; they usually prevent creditors from satisfying beneficiary’s debt unless 1) child support, 2) provided services under the trust, or 3) government.
Can only satisfy debt out of distributions that are due.
Unless a trust states it is irrevocable, the trust is revocable. During the lifetime of the settlor, the property of a revocable trust is subject to the claim’s of settlor’s creditors.
Charitable Trust
for the relief of poverty, the advancement of education or religion, the promotion of health, scientific, literary,
benevolent, governmental, or municipal purposes, any purpose described in section 501(c)(3) of the internal revenue code or any other purposes the achievement of which is beneficial to the community
Change in Custody
In order to be entitled to a hearing to amend a custody agreement, the movant must demonstrate proper cause or a change in circumstances. Normal life changes are not sufficient. The changes must have a significant effect on the child’s life.
An established custodial environment occurs when the child looks to the parent for guidance, discipline, necessities of life, and parent comfort. If there is an established custodial environment, then the movant must demonstrate by clear and convincing evidence a change in custody is warranted. If there is not an established custodial environment, then the burden of proof is preponderance of evidence.
There are 12 best interest of child factors the court looks at to determine a change in custody. The facts supporting a motion to change custody must relate to one best interest of child factor.
1) love, affection
2) capacity to provide love, affection, guidance
3) capacity to provide material items
4) length of time in envt
5) permanence of family unit
6) moral fitness of the parties
7) mental and physical health of parties
8) home, school, community record
9) reasonable preference of child - age not determinative, judge discretion to determine weight. Must interview upon request.
10) willingness and ability of the parties to foster relationship with other parent
11) domestic violence
12) any other factor
Parenting Time
Normal life changes warrant a hearing where the best interest of the child is considered in determining modifications.
Foreclosure by Advertisement
The following four requirements must be satisfied:
1) Default
2) Not an active action or proceeding to recover debt secured by the mortgage unless discontinued or unsatisfied
3) Power of sale clause has been properly recorded
4) Foreclosing party is owner or interested party of secured mortgage
Notice
Published at least once per week for 4 consecutive weeks in newspaper where property is situated
Notice of sale must be conspicuous place on property within 15 days of the first published notice
Public sale will be held in circuit court where property is located as designated by mortgage document or county sheriff to the highest bidder.
Sheriff deed conveys voidable equitable titled
Statutory right to redeem the property within 6 months from the sale date by paying the specified redemption amount.
After the six-month redemption period, person entitled to possession may file summary proceedings when a person continues in possession of the premises.
Marital v Separate Property
Separate - those owned prior to marriage, inheritance, or gift unless ex-spouse contributed to the acquisition, improvement, or accumulation of the property OR the aware of marital assets is insufficient for the suitable support and maintenance of ex-spouse and any children in their care.
Marital Property is subject to equitable division (does not mean equal).
1) contributions of parties to the marital estate
2) health
3) age
4) prior conduct/fault
5) equity
6) life status
7) earning ability
8) necessities and circumstances
9) duration of marriage
Spousal Support
1) work, ability
2) health
3) age
3) length of marriage
4) equity
5) ability to pay
6) present situation
7) present necessities and circumstances
8) past relations and conduct
9) past standard of living
10) property, source and amount awarded
Conveyances
Tenancy by entirety - to right to convey unless death or divorce
Joint tenancy with rights of survivorship
Tenancy in common
Preliminary injunction
Under Michigan law, injunctive relief is an extraordinary remedy that issues only when justice requires, there is no adequate remedy at law, and there exists a real and imminent danger of irreparable injury
(1) the moving party made the required demonstration of irreparable harm,
(2) the harm to the moving party absent such an injunction outweighs the harm it would cause to the nonmoving party,
(3) the moving party showed that it is likely to prevail on the merits, and
(4) there will be harm to the public interest if an injunction is issued.
To establish irreparable injury, a plaintiff must demonstrate a noncompensable injury for which there is no legal measurement of damages or for which damages cannot be determined with a sufficient degree of certainty.
Retaliatory Eviction
The burden of proving that a retaliatory termination does not exist falls on the plaintiff landlord where the defendant complained to a governmental authority about health or safety code violations within 90 days from the summary proceedings filing since such an occurrence creates a presumption that the termination action is retaliatory. By the same token, however, a presumption that a termination action is not retaliatory is established if no such governmental complaint of code violations against the landlord is filed within that 90-day window, and thus the burden of proof is borne by the defendant tenant to prove the retaliation defense.