Source: https://www.thegallagherlawfirm.com/blog/frontpage/
Timestamp: 2019-04-23 20:52:52+00:00

Document:
The Gallagher Law Firm with offices in Lansing, Mt. Pleasant, Grand Rapids, and Detroit provides a variety of legal services across Michigan for corporate and individual clients. Our AV-rated, highly experienced attorneys offer responsive and efficient representation. Learn why our clients consider the Gallagher Law Firm to be a trusted, insightful and experienced partner for their legal needs.
554.291 Oil or gas interest in land; abandonment; claim of interest; vesting in surface owner; preservation from disclosure.
Joint ownership of motor vehicles - Don't!
When co-owners of real estate cannot agree.
What is the highest interest rate I can charge?
Dower – is this really still the law in Michigan?
Does our corporation have to have annual meetings?
Pat, my brother and I set up a corporation six years ago for our contracting business and we have not had any annual meetings since then. Our accountant files our Michigan Annual Report each year. Is this enough or do we have to have annual meetings?
Mileage reimbursement made easy with this Excel form from University of Michigan Finance website! Use this form when claiming mileage reimbursement for business use of personal vehicles.
MCL 691.1173 Foreign judgment; filing; effect.
How does Michigan recognize a judgment from my state?
Crowdfunding: When securities are purchased pursuant to the crowdfunding provision of the JOBS Act, are they transferable?
A "Corporation" is an association of persons, created by law and existing as an entity with powers and liabilities independent of those of its members. In the case of profit corporations, its owners are shareholders.
Corporate shareholders actively engaged in running their corporation (business owners) often get so busy running their corporation that they forget to follow corporate formalities like holding shareholder and board meetings and keeping minutes of those meetings. These formalities may not seem important to the business owner; however, when he or she goes to sell his or her shares or tries to get a loan for the corporation, the corporate minute book becomes very important.
Lenders and prospective purchasers rely on the minute book for various reasons. They use the minute book to determine whether (i) the corporation is duly organized; (ii) its bylaws permit the proposed transaction; (iii) the shareholders, board, or both must vote on the proposed transaction and what percentage vote is required to approve the proposed transaction; (iv) the amount of outstanding shares and who owns them; (v) the corporation is subject to any material contracts (like stock redemption agreements, security agreements, restrictions on stock transfer, etc.); and (vi) various other reasons.
When updating your corporate minute book, it is important to only create minutes for meetings that actually happened. Creating minutes for meetings that were not held or holding a meeting and backdating the minutes to reflect that the meeting was actually held at an earlier date may constitute fraud and could subject the signor to civil liability or even criminal prosecution. When meetings were not held, the business owner, with the help of his or her attorney, should ratify past legal actions of the board as actions of the corporation. Going forward, the business owner should hold the required annual meetings or, if no meeting is required, use the shareholder consent resolution process.
Client: Are you telling me that my neighbor gets part or whole of my property, just because I did not care about it during a time when he maintained my property by doing the landscaping and by placing a fence around it.
Lawyer: Absolutely yes. Michigan recognizes certain patterns of conduct between property owners, which, after a period of years, will result in the transfer of property from one owner to another who is called an Adverse Possessor.
Adverse Possession is a doctrine under which a person in possession of land owned by someone else may acquire valid title to it, so long as certain requirements are met, and the adverse possessor is in possession for a sufficient period of time, as defined by statute of limitations. The used or occupied land may be transferred to the adverse person or neighbor without any agreement or payment.
"The Michigan Supreme Court will rule on whether state employees are covered by the right-to-work law passed late in 2012, the court said today.
September 1, 2013 marked a new day for the business world and Michigan state law. The Michigan Public Act 333 of 2012 now requires that every county with at least three Circuit Judges establish a Business Court. The purpose behind the new court system is to improve efficiency, allow for business disputes to be resolved with expertise and to enhance the accuracy, consistency and predictability of decisions in business and commercial arenas.
According to Michigan Law an incorporated Michigan Company must hold a annual Shareholder meeting. This is a great opportunity to discuss businesses accomplishments, cast a vote on needed items and to discuss how to grow the company. There are a few official steps that need to be taken at the meetings, such as taking minutes of the meetings and recording them in the company record books. If your corporation is not aware of this procedure, or has not updated the books in quite some time, Michigan Law provides a way to do so.
The boomers are coming! That’s the gist of the many reports and news stories that have been published in the last few years. It seems that every week there are at least a few new stories which predict the great changes that are coming as 5 million boomers turn 65 every year for the next 15 years. Many of the changes predicted are ones that will affect the economy, social structure, residential housing, recreational activities and delivery of health care services of a larger, older population. There’s not much doubt that boomers have different expectations about their “golden years” than their parents did.
"It’s possible that the legacy of Michael Jackson could turn out to be a string of court cases. He has kept lawyers and business managers happily employed since he died – and his tax lawyers are no exception. The estate for the King of Pop is planning to go to the mattress in the fight against the Internal Revenue Service over taxes and penalties assessed as a result of values reported on his federal estate tax return.
Michael Jackson died on June 25, 2009, in Los Angeles, California. The federal estate tax exemption amount was $3,500,000 for decedents dying in 2009. That means that estate assets in excess of that amount are taxed.
In a sense that question qualifies as an “oxymoron, meaning a phrase which is incongruous (not consistent with what is logical) and impossible to answer.
Check out this recent New York Times article, exploring the dispute over an heiresses' $300 million dollar fortune. Does the family or the medical staff deserve the fortune?
When applying collateral estoppel principles to a nondischargeability proceeding, a bankruptcy court is directed to apply the law of the forum where the original proceeding took place. Marrese v. American Academy of Orthopedic Surgeons, 470 U.S. 373, 380 (1985). The Nevada courts have stated four requirements must be met for issue preclusion to apply: (1) the issue decided in the prior litigation must be identical to the issue presented in the current action; (2) the initial ruling must have been on the merits and have become final; (3) the party against whom the judgment is asserted must have been a party or in privity with a party to the prior litigation; and (4) the issue was actually and necessarily litigated. Five Star Capital Corp. v. Ruby, 124 Nev. 1048, 1055 (2008).
Paid-Up Lease. An oil and gas lease that does not provide for delay-rental payment. The lease is effective for the whole period of the primary term.
Partition. The division of undivided interests in kind or by sale, by voluntary agreement or judicial action.
Percentage Depletion. A provision of § 611 of the Internal Revenue Code that permits a taxpayer who owns an economic interest in a producing oil or gas well to deduct a specified percentage of the gross income from the well in lieu of depleting the actual basis. See also Cost Depletion.
Michigan slayer statute applies to voluntary manslaughter too. Interesting how this issue will appear from time to time! A few years local dentist going through a divorce was shot in the back of the head in a rough part of town – wife was person of interest but never charged and she received life insurance benefits because husband never changed beneficiary despite pending divorce.
Economic-Out Clause. Another name for a gas contract Market-Out Clause.
Entirety Clause. A clause in an oil and gas lease or in a deed that states the agreement of the parties that royalties are to be apportioned in the event that the property is subdivided after the lease is granted. The purpose of the clause is to avoid the non-apportionment rule.
Jennifer Tichelaar, attorney at The Gallagher Law Firm, PLC, recently obtained a nondischargeability Judgment of her Nevada client’s $9,674,057.18 Nevada District Court Judgment. The underlying Nevada state court litigation involved a dispute regarding a casino development project in Dayton, Nevada.
Acreage-Contribution Agreement. A support agreement by which the contributing party agrees to contribute leases or interests in leases in the area of a test well to a drilling party in exchange for information, if the drilling party drills to an agreed depth and develops the information. See also Support Agreements.
Ad Coelum Doctrine.The common-law doctrine that the owner of land owns everything above and below the property’s boundaries from the heavens to the core of the earth, including all elements therein. This has generally been replaced by the rule of capture for fugacious minerals such as oil and gas.
What You Need to Know About "Business Divorce"
It's stormy seas for businesses that neglect “divorce-proofing” shareholder agreements, according to a recent WealthCounsel article. Disputes that arise between business partners can become just as financially and emotionally draining as family law divorce.
Check out NALFA's recent article regarding Detroit's Chapter 9 Bankruptcy.
"A recent Detroit Free Press story, “Detroit’s Legal Fees Could Top $100 Million for a Chapter 9 Bankruptcy,” reports that the City of Detroit has been billed nearly $1.4 million in legal fees by Jones Day for the first six weeks on the job. The restructuring could result in the largest municipal bankruptcy in U.S. history. The Chapter 9 case could cost more than $100 million, said Douglas Bernstein, partner with Plunkett Cooney in Birmingham. “It is certainly one of the reasons that you want to get a resolution more quickly, because the longer it goes, the more money gets burned by paying professionals,” Bernstein said."
Check out the upcoming American Association of Professional Landmen (AAPL) events in Michigan. The American Association of Professional Landmen is the leading source of information and guidance for the landman profession.
The AAPL Pooling Seminar will be held on Thursday, August 1, 2013 at the Amway Grand Plaza in Grand Rapids, Michigan. This Seminar is a one-day program designed to give an in-depth overview of the pooling process.
This year’s MAPL (Michigan Association of Professional Landman) Annual Golf Outing for MAPL Members will be held at the Buck’s Run Golf Club in Mt. Pleasant, Michigan on July 26, 2013 with a 9:00 A.M. shotgun! MAPL members and their guests are invited to participate in a day of golfing, fun, and prizes.
Did you know that The Michigan Online Oil and Gas Information System allows the public to search for selected oil, gas, and UIC data from the Michigan Department of Environmental Quality databases?
Wayne County Circuit Court is implementing a Business Court docket on July 1, 2013. The Supreme Court appointed Judge Daniel Ryan, Judge Jeanne Stempien, and Judge Brian Sullivan as Business Court Judges. All Business Court cases must be eFiled and will be assigned by blind draw to one of these judges.
Michigan law permits borrowers to assign rents from their commercial and industrial properties (other apartments with less than six units and family residences) to their lenders as security for their loan. The lender, however, may only collect the rents completing several steps. For assistance with assignment of rents, please contact us.
On April 1, 2013, Michigan Attorney General Bill Schuette appointed Scott Pierangeli, Jim Riemland, and Paul Slough to serve as public administrators. Pierangeli will serve in Kalamazoo County, Riemland will serve in Berrien County, and Slough will serve inOtsego County.
The Michigan Supreme Court has appointed 18 judges to serve on Michigan’s new business courts, including Judge Draganchuk in Ingham County. We look forward to the increased efficiency these business courts will bring to our business litigation clients!
There are a few steps that must be followed to extinguish an IRS lien recorded at least 30 days before the sheriff’s sale.
On March 14, 2013, GLF attorney Kate Barnaby gave a presentation on Michigan's Compulsory Pooling Process at at HalfMoon Seminar's Legal and Regulatory Issues in Oil and Gas Seminar in Lansing, Michigan.
We don't normally follow criminal cases, but People v. Johnson-El, a published Michigan Court of Appeals opinion, caught our attention. In this case, Defendant Johnson-El is a member of the Washitaw Nation. Johnson-El wandered around Detroit and recorded Affidavits of Allodial Title on properties he thought looked abandoned or in foreclosure, claiming that as a Washitaw Moor his title is superior to that of the home owner's or the bank's. As a law firm that deals with title insurance issues, we know that there are many clouds on title that pop up. Having a random person drive by and decide to claim your house as his own is an extreme example.
In In Re: Stillwell Trust, a published Michigan Court of Appeals opinion, the court discussed two issues: whether hand-written notes constituted a valid amendment to the trust, and whether a child adopted after the settlor passed away was a grandchild-beneficiary of the trust. This case highlights the importance of being clear in your directives and following the methods in your estate planning documents for amending your wishes. Stillwell clearly expressed her intent for the distribution of the assets in the amendments. If you need to amend your estate planning documents, contact Gallagher Law Firm attorney Craig Gerard.
Governor Rick Snyder signed legislation allowing for the practice of trust decanting, meaning assets held by an irrevocable trust may be moved into a different trust, as long as the trust documents do not disallow it and the trustee has discretionary powers.
On December 21, 2012, the Michigan Supreme Court released its opinion on Kim v JPMorgan Chase. Back in February, we reviewed the opinion by the Michigan Court of Appeals in which MCOA held that since the FDIC assigned Washington Mutual's assets to JPMorgan Chase rather than transferred them by operation of law, JPMorgan Chase needed to record each assigned mortgage in order to foreclose, rendering any foreclosure void ab initio. MSC agreed that FDIC transferred Washington Mutual's assets to JPMorgan Chase by assignment, not by law, but that any resulting foreclosure is voidable, not void.
A Carson City, Nevada public administrator found about seven million dollars worth of assets, mostly gold, hiding in a decedent's modest home. The public administrator was also able to locate a cousin to inherit the wealth.
In an unpublished opinion dated November 15, 2012 in Bennett v Bugbee, the Michigan Court of Appeals affirmed the Saginaw Circuit Court’s order denying plaintiff Robert Bennett’s request to quiet title to real property in his favor because there was no evidence that consideration was paid. This case shows the importance of being able to provide a paper trail, especially when money and real property is involved.
In an unpublished opinion dated November 15, 2012 in Bonsu v Ocwen Loan Servicing, LLC, the Michigan Court of Appeals affirmed the Wayne Circuit Court’s order granting summary disposition in favor of the mortgagee. Attorneys at the Gallagher Law Firm frequently represent parties with foreclosure disputes. Contact us today.
The ‘last antecedent’ rule of statutory construction provides that a modifying or restrictive word or clause contained in a statute is confined solely to the immediately preceding clause or last antecedent, unless something in the statute requires a different interpretation. In Hardaway v. County of Wayne, a published opinion, the Michigan Court of Appeals reversed the Wayne Circuit Court's decision regarding statutory construction of a stateute that gives benefits to "an appointee other than a member of a board or commission who is confirmed by the County Commission."
In an unpublished opinion dated October 9, 2012 in Michalik v JP Morgan Chase Bank, the Michigan Court of Appeals reversed the Wayne Circuit Court’s order granting summary disposition in favor of Chase because there was a question of material fact regarding whether the account in question was a joint account or a representative-payee account.
In an unpublished opinion dated October 9, 2012 in Marcuz v Steven Premiere Properties & Development, LLC, the Michigan Court of Appeals affirmed the Oakland Circuit Court’s order of judgment following a bench trial that found defendant Steven Branoff personally guaranteed a loan from the plaintiff to the LLC when he signed it twice—once as an officer and again as an individual.
In an unpublished opinion dated October 9, 2012 in Tipton v Flagstar Bank, the Michigan Court of Appeals affirmed the Washtenaw Circuit Court’s grant of summary disposition in favor of Flagstar. If you are involved in a foreclosure, make sure all promises from the mortgagee are in writing and that you take timely action to preserve your rights.
Pat Gallagher will speak at the Ingham County Bar Association's Bench-Bar Conference on Saturday, October 6, 2012 at the Veterans Memorial Courthouse in Lansing, Michigan. The topic will be civil motions.
In an unpublished opinion dated October 2, 2012 in In re Estate of James D. Goodin, the Michigan Court of Appeals affirmed the probate court order equally dividing the proceeds of a bank account. This case stresses the importance of reviewing the beneficiaries on each asset as part of a complete estate plan. If you need help drafting or reviewing your estate plan, please contact Gallagher Law Firm attorney Craig Gerard.
In an unpublished opinion dated September 27, 2012 in Ginnard v Advanced Design and Prototype Technologies, Inc., the Michigan Court of Appeals reversed the Oakland Circuit Court’s opinion and order denying plaintiff Mark Ginnard’s request for shareholder oppression damages. The Court remanded the case back to the trial court to decide if by not providing additional documents, the parties consented to the estimated valuation; if either party was at fault for the missing documentation; if another remedy would be appropriate; and what level of certainty would be required for determining the damages if not.
On Thursday, September 20, 2012 the Michigan Senate passed its version of HB-5128, which will establish business courts throughout the state. Now that the bill has passed the Senate, it is on to the House for a concurrence vote.
Michigan Attorney General Bill Schuette has joined the Attorneys General of South Carolina and Oklahoma, along with private party plaintiff’s Competitive Enterprise Institute, State National Bank of Big Spring, and the 60-Plus Association in challenging the constitutionality of certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”), which was signed into law on July 21, 2010.
Thank you Community Bankers of Michigan!
Hundreds of Michigan’s leading community bankers converged on Traverse City, Michigan this September for the 2012 Community Bankers of Michigan Convention and Trade Show. The bankers, bank service providers, and exhibitors were able to enjoy scenic Traverse City, Michigan and the beautiful Grand Traverse Resort and all of its amenities.
Kate Fetkenhier spoke on the Common Title Issues in the Oil and Gas Industry to a packed crowd at the Michigan Association of Professional Landmen's 35th Annual Fall Seminar on Thursday, September 20, 2012 at theAmway Grand Plaza in Grand Rapids, Michigan.
Gallagher Law Firm is pleased to announce that Lynch Gallagher attorney John “Jack” Lynch has been selected by his peers to be included in The Best Lawyers in America, 19th edition for his work in the practice area of Oil & Gas Law.
Lee Hornberger, an arbitrator and mediator in Traverse City, Michigan, posted a summary of the Michigan Court of Appeals cases regarding case evaluation since January 2011.
Peer to peer file sharing copyright enforcement lawsuits are continuing to meet increasing levels of resistance in federal court. However, these cases continue to be filed. If you’ve been accused of illegally pirating software, music, games or movies, the most important tip of all may be to get help from a copyright lawyer who can analyze your particular circumstances, legal options, and legal defenses.
In an unpublished opinion, the Michigan Court of Appeals ruled in National City Mortgage v Mercantile Bank that the equitable subrogation ruling in CitiMortgage Inc v MERS applies retroactively as long as the lawsuit was filed after the recording statute was amended in 2008.
The sale of securities can be an excellent source for a small company to raise capital. The State of Michigan website provides an excellent Business Guide to Selling Securities. The guide gives a general overview of the Michigan Uniform Securities Act and provides a summary of the registration and exemption provisions of state and federal law.
In KBD & Associates v Great Lakes Foam Technologies, a published opinion, the Michigan Court of Appeals affirmed the decision of the Jackson County Circuit Court in favor of defendant Great Lakes Foam Technologies, owned by MacReady, against KBD & Associates, on behalf of Lyons.
In McCoig Materials, LLC v Galui Construction, Inc., a published opinion, the Michigan Court of Appeals reversed a decision by the Macomb Circuit Court to deny plaintiff's motion for summary disposition, ruling that the defendant was not entitled to recoupment because the transaction Galui was attempting to set off was separate from the transaction McCoig was seeking payment for, even if the companies had one contract.
In Kim v JP Morgan Chase Bank, the Michigan Court of Appeals reversed the lower court's decision and found a sheriff's sale to be void for lack of record chain of title linking the mortgage interest to JP Morgan Chase.
In Gray v Burns, an unpublished opinion, the Michigan Court of Appeals reversed and remanded the Kalamazoo Circuit Court's decision to reform the parties' deeds because the boundary line that the trial court considered was acquiesced to was not the property line between the parties.
In Woodbury v. Res-Care Premier, Inc., a published opinion, the Michigan Court of appeals reversed the trial court's decision to grant summary disposition in favor of the subdivision, Center Woods, reasoning that Center Woods had automatically dissolved in 1993 and was not a valid legal entity at the time of defendant Res-Care's purchase of defendant Averill's property, so Averill was not required to give notice or right of first refusal to Center Woods.
In an unpublished opinion, the Michigan Court of Appeals affirmed the lower court's summary disposition in Rule v. US Bank, stating that a mortgagee has no duty to investigate unrecorded property interests prior to foreclosure and is allowed to rely on the record of title.
In Levenfeld v County of Berrien, an unpublished opinion by the Michigan Court of Appeals, MCOA affirmed the Michigan Tax Tribunal's denial to grant Levenfeld a principal residence exemption due to adherence to the language in the statute.
In Kim v JP Morgan Chase Bank, the Michigan Supreme Court reversed the lower court's decision and found a sheriff's sale to be void for lack of record chain of title linking the mortgage interest to JP Morgan Chase.
In December 2011, the Michigan Court of Appeals issued an opinion in CitiMortgage, Inc. v MERS, Inc. that addressed and expanded the doctrine of equitable subrogation in Michigan. The Court held that if the refinancing lender is the holder of the original mortgage that is being refinanced, the new mortgage can be subrogated to take the position of the original mortgage and it may retain the original mortgage's priority over intervening mortgages.
In Macreno v. St. James Capital, an unpublished opinion, the Michigan Court of Appeals affirmed the Oakland Circuit Court decision to dismiss the plaintiff's claims for gender discrimination and retaliation in violation of the Michigan Civil Rights Act for the termination of his employment.
On Tuesday, November 1, 2011, the costs of certain miscellaneous bankruptcy filing fees will increase. The increases were voted for on September 13, 2011 by the Judicial Conference of the United States.
In EldenBrady v. City of Albion, No. 297735, the Michigan Court of Appeals reviewed the Michigan Tax Tribunal's decision that an abandoned school building on ten acres of residential-zoned land adjacent to a residential dwelling prevents the parcel from being vacant and thus not eligible to be included in the principal residence exemption.
On September 1, 2011, changes to several attorney discipline procedural rules went into effect. The full text of the new changes is available here.
Natural gas companies lease land for surface use in order to build access roads, compressor stations, water impoundments, pipeline activity, gas storage infrastructure, or other infrastructure needs on the landowner's property. It can be tempting to enter into a surface use agreement, but there are issues that a landowner needs to think about before giving a company permission to use their land for infrastructure purposes. Landowners can easily give up more rights than they thought they were when entering into one of these agreements.
A forbearance agreement is a contract between a borrower and a lender where the lender agrees to not exercise certain rights that it has under an existing agreement in exchange for actions on the part of the borrower. An example would be a bank's promise not to foreclose for a certain amount of time although they have the right to in exchange for the borrower's promise not to claim certain defenses if the account continues its delinquency and requires a lawsuit.
The Business Corporation Act, P.A. 284 of 1972 allows a domestic corporation that was automatically dissolved to renew its corporate existence by filing the reports and paying the required fees (including late fees and penalties) for the years they were not filed.
The use of land contracts is increasing as traditional financing is not available to most purchasers based on increased lending requirements and decreased appraised values. Use of a land contract may be the only way to close a sale in this slow real estate market. This relieves the seller of continuing to pay the carrying costs, taxes, maintenance and insurance for the property while waiting for a purchaser with bank financing. A land contract seller may also be able to charge up to 11% interest on most land contracts which can be very attractive compared with other investments.
Filing a Chapter 7 Bankruptcy should be used as a last resort in the event an individual has no other avenue to become solvent again. Under a Chapter 7 Bankruptcy, all of an individual's debt is discharged (with some exceptions such as taxes, student loans, court-ordered support etc.). In exchange for the discharge, all non-exempt assets are liquidated and distributed among creditors.
MERS is a name frequently heard in court in connection with mortgage issues. Much litigation revolves around mortgages and often it is unclear to litigants how MERS operates. Often the issue is whether MERS should be a party to the litigation or if it has standing to be a party. Of course, each is case is different.
Earlier this month, the Lansing City Council approved an Obsolete Property Tax Rehabilitation Tax Abatement for Michigan State University Federal Credit Union‘s (MSUFCU) planned ninth branch, located in downtown Lansing at 104 South Washington Square.
Plaintiffs' attorneys in Michigan are having potential plaintiffs troll ATMs searching for an absence of required notices. Generally, the Electronic Fund Transfer Act requires posting of fee notices on both the ATM itself and on the ATM screen or paper notice printed before the transaction is completed. Plaintiffs who make withdrawals from ATMs lacking all of the required notices then become the principal plaintiffs in a class action suit on behalf of all who have used the ATMs. These suits are attractive to Plaintiffs' attorneys because the lack of the required notices allows them to tag the banks for statutory damages and actual attorney fees.
Discharge of a debtor's personal liability by way of bankruptcy does not automatically extinguish or satisfy a lien against real property. As recognized by the United State Supreme Court, ordinarily liens on real property and other secured interests survive a Chapter 7 Bankruptcy.
Banks and credit unions should be aware that the Michigan Bar Association is implementing new rules applying to law firm trust accounts which go into effect in September 2010. Banks and credit unions that want to continue holding law firm trust accounts and benefiting from the ancillary business that results must comply with these new trust account rules. Law firms are responsible for confirming their bank or credit union complies with these rules.

References: v. 
 v. 
 § 611
 v. 
 v. 
 v. 
 v. 
 v. 
 v.