Opinion ID: 845821
Heading Depth: 2
Heading Rank: 2

Heading: Ford has Stated Valid Claims Under MCL 211.53a Based on Mutual Mistake of Fact

Text: Consistent with our interpretation of the legal term mutual mistake of fact as it is used in MCL 211.53a, the key issue in these cases is whether there was an erroneous belief shared and relied on by both Ford and respondents about a material fact that affected the substance of the transactions. Under our interpretation of MCL 211.53a, we hold that Ford has stated valid claims of mutual mistakes of fact that were intended to be remedied under MCL 211.53a. Here, there is little doubt that a mistake occurredthe personal property statements erroneously overstated the amount of Ford's taxable property, including reporting the same property twice. This resulted in excessive assessments that were paid in full. Further, the mistakes made in these cases are best characterized as mutual. In our view, each assessor's erroneous belief that Ford's personal property statement was accurate does not practically differ from Ford's belief that the statement was accurate. In other words, if Ford believed that it owned certain personal property and reported it properly at the time, then Ford believed that each statement was accurate. Similarly, if each assessor believed that Ford's statement was accurate, then the assessor likewise believed Ford owned certain personal property and reported it properly. As such, the parties shared a mistaken belief about a material fact that went to the very nature of the transactionthat all the personal property Ford claimed in its personal property statements was taxable. And the parties relied on this shared, erroneous beliefrespondents when they assessed the property, and Ford when it subsequently paid the excessive assessments. Therefore, we conclude that Ford has stated valid claims under MCL 211.53a under the theory of mutual mistake of fact because the parties shared and relied on their erroneous beliefs about material facts that affected the substance of the assessments. [7]