Albro v. Allen
454 N.W.2d 85 (1990)
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Rule of Law:
A cotenant in a 'joint tenancy with full rights of survivorship' holds a joint life estate with an indestructible contingent remainder. This cotenant may freely convey their life estate interest to a third party without severing or otherwise affecting the contingent remainder (the right of survivorship).
Facts:
- On October 14, 1977, commercial property was conveyed to Carol Allen and Helen Albro 'as joint tenants with full rights of survivorship.'
- On April 23, 1987, Carol Allen entered into a purchase agreement with Steven Kinzer.
- Under the agreement, Allen contracted to convey her interest in the property to Kinzer via a quitclaim deed.
- Helen Albro did not consent to this sale.
Procedural Posture:
- Helen Albro filed a lawsuit against Carol Allen and Steven Kinzer in a Michigan trial court seeking to enjoin the sale of Allen's interest.
- The trial court granted a temporary restraining order enjoining the sale.
- The trial court then granted summary disposition in favor of Albro, permanently enjoining Allen from transferring her interest without Albro's consent.
- Allen and Kinzer appealed to the Michigan Court of Appeals.
- The Court of Appeals held that Allen could transfer her future contingent interest but affirmed the trial court's decision to enjoin the sale of her present life estate interest.
- Kinzer, as appellant, was granted leave to appeal to the Supreme Court of Michigan on the sole issue of whether the life estate interest was transferable.
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Issue:
May a cotenant who holds property as a 'joint tenant with full rights of survivorship' convey their life estate interest to a third party without the consent of the other cotenant and without destroying the right of survivorship?
Opinions:
Majority - Boyle, J.
Yes, a cotenant holding property as a 'joint tenant with full rights of survivorship' may convey their life estate interest without destroying the other cotenant's indestructible right of survivorship. The court reasoned that express words of survivorship, such as 'with full rights of survivorship,' create a special type of interest distinct from a standard joint tenancy. This interest is properly characterized as a joint life estate with dual contingent remainders. While a conveyance by one party in a standard joint tenancy would sever the tenancy and destroy the survivorship right, the contingent remainders in this special tenancy are indestructible by the unilateral act of one cotenant. The court emphasized that life estates are freely alienable under both common law and Michigan statute (MCL 565.4). Furthermore, Michigan statute (MCL 554.32) explicitly protects such expectant estates (the contingent remainders) from being destroyed by the owner of the precedent estate (the life tenant). Therefore, Allen could validly convey her life estate interest to Kinzer, and this conveyance would have no effect on Albro's contingent remainder. The court also overruled its precedent in Ames v. Cheyne, holding that the joint life estate component of this tenancy is subject to partition, which provides a remedy if the original cotenant and the new grantee cannot coexist.
Analysis:
This decision solidifies the distinction in Michigan property law between a standard joint tenancy and a 'joint tenancy with full rights of survivorship,' establishing the latter as a joint life estate with indestructible contingent remainders. By affirming the free alienability of the life estate portion, the court reinforces the public policy against restraints on alienation. The most significant impact is the overruling of precedent to allow for the partition of the joint life estate. This change provides a crucial remedy for cotenants who may be forced into a relationship with a stranger, thereby resolving a practical problem created by the free transferability of the life interest and making the interest more marketable.
