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Butzel, J.
Plaintiff is the owner of lot 21, and others, in what is known as the Grauf plat, lying just south of the city of Monroe, in Monroe county, Michigan. He built a private sewer for the drainage of lot 21, and other lots, connecting it with the county ditch several hundred feet to the south. Edward Shurer, defendant, acquired title to lot 6 of the same plat. He constructed a tile drain running from the cellar of his house, across a part of lot 6 of the same plat, and sought permission to connect it with plaintiff’s private sewer. This permission was granted, in consideration of the defendant’s paying plaintiff the sum of $30, and the following receipt was executed:
“October 20, 1931, Monroe, Mich.
“Received from Mr. Edwrard Shurer $30 payment in full for the tap on John Swiderski private sewer for lot No. 6 on Grauf plat, township of Monroe.
(Signed) “John A. Swiderski.”
It will be noted that the receipt does not limit the right of defendant to use the private sewer for any-particular portion of lot 6.
. In the spring of 1933, defendant found it necessary to drain some low land near his house and extended the drain to a point about 15 feet from the rear of the lot. Whether due to heavy rains or other factors, plaintiff claims that, in the spring of 1933, his private sewer was worked beyond its capacity, resulting in the projection of back-water and sewage refuse into the cellars of plaintiff’s dwellings located on the lots which the sewer was originally designed to serve.
The instant suit was brought to enjoin defendant from further use of the sewer. Plaintiff claimed that the drain was built up to the northerly end of lot 6 and in some manner was draining the surface water from a large area of adjoining land owned by third parties. The trial judge who heard the case personally inspected the premises, notwithstanding plaintiff’s protest. He found that defendant’s drain did not extend entirely across his lot.
Plaintiff appeals from a decree dismissing his bill. He claims that the receipt does not fully describe the property, and, therefore, fails to comply with the statute of frauds (3 Comp. Laws 1929, § 13411). He relies on the case of Cooper v. Pierson, 212 Mich. 657, in which the description of the property as “lots 831, 833 and 835, North Saginaw street” was held insufficient, inasmuch as the memorandum neglected to name the State, county, or village in which the land was situated. The receipt in the instant case is dated at Monroe, Michigan, the dominant tenement is. described by giving the plat lot number and township, and the servient tenement may be located from the reference to the John Swidersld private sewer. We believe the description is sufficient. Francis v. Barry, 69 Mich. 311; Tuthill v. Katz, 163 Mich. 618.
Plaintiff further claims that there is a lack of mutuality in the contract, alleging that the right to an easement in the sewer, not being limited in time, could be discontinued at will. This claim and others of a trivial nature have no merit. The trial judge reached the correct conclusion and the decree dismissing the bill is affirmed, with costs to defendant.
McDonald, C. J., and Weadock, Potter, Sharpe, North, Pead, and Wiest, JJ., concurred. | [
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Wiest, J.
Three townships in the county of Gogebic filed bills to restrain the board of county road commissioners from taking over portions of township roads under the provisions of Act No. 130, Pub. Acts 1931. The cases were consolidated and the bills dismissed.
The legislature, by the mentioned act, provided for absorption of township highways into county road systems by taking over each year, commencing in'1932, 20 per cent, of the total township highway mileage, as ascertained and fixed by the State highway commissioner. The county road commissioners were taking action in compliance with the mentioned statute.- when plaintiffs filed the bills and obtained injunctions. The circuit judge held the statute constitutional and plaintiffs, by appeal, claim that the statute is void because it contravenes article 5, § 21, and article 8, § 28, of the Constitution of the State. Article 5, § 21, of the Constitution, provides that:
“No law shall embrace more than one object, which shall be expressed in its title.”
The point is made that the title to the mentioned act is misleading, embraces more than one object and the act is broader than the title. The title is as follows:
“An act to authorize the consolidation of township and county road systems; to provide revenue for such purpose; to provide for the apportionment of such funds among the counties; to confer all necessary powers and duties upon county and State boards and officers; to provide limitations upon the powers of township boards and officers and to make appropriations for all such purposes.”
It is claimed that abolishment of township road systems by absorption is not consolidation. The meaning sought to be attached to the term “consolidation” is too restrictive. The term is broad enough to express the purpose of making one highway system out of two existing systems and absorption of the lesser by the greater. We think the act expresses but one object, and that object is expressed in its title.
It is also claimed that the statute violates the other mentioned constitutional provision which reserves to cities, villages, and townships the reasonable control of .their streets, alleys, and public places, and the act is an interference with such right of local self-government.
The townships invoke the following provision of the Constitution:
‘ ‘ The right of all cities, villages, and townships to the reasonable control of their streets, alleys, and public places is hereby reserved to such cities, villages, and townships.” Article 8, § 28.
This is but a portion of the section and is not to be read apart from the rest, for what precedes it is explanatory of its purpose. The first part of the section reads:
“No person, partnership, association, or corporation operating a public utility shall have the right to the use of the highways, streets, alleys, or other public places in any city, village, or township, for wires, poles, pipes, tracks, or conduits, without the consent of the duly constituted authorities of such city, village, or township; nor to transact a local business therein without first obtaining a franchise therefor from such city, village, or township.”
With such inhibition it was a necessary sequence to add the mentioned provision. The section was new and in the address submitting the proposed revision it was stated:
‘4 This is a new section and its purpose is to prevent the use of streets, alleys, highways, and .public places without the consent of the local authorities first had and obtained.”
Section 26 of the same article provides:
4 4 The legislature may by general law provide for the laying out, construction, improvement, and maintenance of highways, bridges, and culverts by the State and by the counties and townships thereof and by road districts; and may authorize counties or districts to take charge and control of any highway within their limits for such purposes. The legislature may also by general law prescribe the powers and duties of boards of supervisors in relation to highways, bridges, and culverts; may provide for county and district road commissioners to be appointed or elected, with such powers and duties as may be prescribed by law; and may change and abolish the powers and duties of township commissioners and overseers of highways.”
Surely the framers of the Constitution intended the two mentioned sections to be harmonious. There is no conflict if section 28 is held to the purpose stated by its framers and clearly expressed in the language employed.
The decrees are affirmed, with costs.
McDonald, C. J., and Weadock, Potter, Sharpe, North, Pead, and Butzel, JJ., concurred. | [
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Btjtzel, J.
On April 16,1929, Bichard Van Dellen and wife, plaintiffs, sold land, buildings and machinery in Grand Bapids, Michigan, to Balph H. Castetter and wife, on executory contract. On May 11, 1929, the latter assigned their vendee’s interest to William S. Smith by written assignment containing a covenant binding Smith to the fulfilment of all the conditions of the contract.' The assignment was on a printed form and signed by Castetter and wife, but not by Smith. On June 13, 1929, Smith in turn assigned the contract to Lee H. Higgins and John A. Higgins. A similar form of assignment was used, containing a covenant binding the assignee “to fulfill all the conditions set forth in the annexed instrument.” It was signed by Smith but not by Lee PI. or John A. Higgins. On August 14, 1929, the latter assigned on a similar form, containing the covenant of assumption, to Thomas E. Walsh. Again the instrument was only signed by the assignors.
After continued default in payments, plaintiffs brought suit against the original vendee and all of the successive assignees, asking decree for foreclosure and also payment of any deficiency against all the defendants. Castetter and wife and Smith permitted their defaults to be taken, but Lee H. Higgins, John A. Higgins and Thomas E. Walsh, appellees, filed answers denying liability for the deficiency. The trial court thereupon granted foreclosure but discharged appellees from liability for the deficiency. He held that they had not seen, read, or heard read, or signed the printed form of assignment binding them to the performance of the covenants of the contract, and that there was no intention shown on their part to be personally bound thereby. Plaintiffs appeal from this latter portion of the decree.
It is the contention of appellees that they did not sign the assignments, did not have them recorded, and did not know or believe that they were binding themselves personally to the contract, and further, that they performed no affirmative act or acts indicating any intention to be so bound. John A. Hig’gins testified that he and his brother bought the contract for trading purposes, expecting to hold it only for a short time and then to trade it off. On the other hand, there is no question but that the Higgins brothers and Walsh received and accepted the assignments in the form in which they were made out. John A. Higgins collected two instalments of rent from the tenant, one Carlson, and later he and his brother must have relied upon their assignments to establish their right in turn to assign to Walsh. The latter collected the rent from Carlson, the tenant of the property, for almost three years. In 1931, when defaults were made in payment of taxes, and Yan Dellen sought payment from John A. Higgins, the latter stated that he did not want to be bothered any longer about the property, since he had sold out to Walsh. However, it is significant that Higgins indorsed Walsh’s note in order to enable him to raise the money with which to pay the taxes. Appellees further claim that they never delivered duplicates of the assignments to plaintiffs. The latter, however, produced such duplicates annexed to the contract. Van Dellen stated that he did not know whether he received them direct from appellees or through the mail. There is no claim that plaintiffs practiced any fraud, or that appellees received the assignments as security. Appellees became personally bound to fulfill the contract when they accepted the assignments and accepted the benefits thereunder. Following our decision in Barnard v. Huff, 252 Mich. 258 (77 A. L. R. 259), we but recently held again that in a court of equity the assignee of a land contract, who agrees to fulfill all of its conditions and who by his acts accepts the assignment, becomes liable to the vendor for a deficiency even though the assignee did not attach his signature to the assignment. Allen v. King, ante, 306.
The testimony shows that after Walsh held the property for several years, he defaulted in his payments. He then told Van Dellen to see if he could get some rent from Carlson, the tenant. Walsh claims he told Yan Dellen at that time to “take charge” of the property, that he “could not go ahead with the contract.” Yan Dellen, however, denied that there was even an attempted surrender of the contract or the premises. The tenant testified that he paid two instalments of rent directly to Van Dellen in accordance with the instructions from Walsh, Yan Dellen applying such payments on the contract. Walsh, thereafter, collected a small amount of rent direct from the tenant and used it to pay a premium for insurance on the property. Van Dellen made no further collections of rent thereafter. None of the parties claim that there was any surrender of the contract or any release executed. There was no cancellation of the contract.
The decree of the lower court should be amended to provide for the payment by appellees of the deficiency, if there be any after foreclosure sale. The case is remanded to the trial court with directions to amend the decree in accordance with this opinion. Plaintiffs will recover costs.
Nelson Sharpe, C. J., and Potter, North, Fead, Wiest, Btjshnell, and Edward M. Sharpe, JJ., concurred. | [
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Potter, J.
Plaintiff sued defendants to recover damages sustained by reason of defendants ’ alleged malpractice as physicians and surgeons. From a judgment for plaintiff defendants appeal.
It is claimed the verdict is contrary to the weight of the evidence. The credibility of the witnesses and the weight of the testimony is for the jury. When the case was here before (DeGroot v. Winter, 261 Mich. 660) the same question was raised, but the case was reversed on other grounds. We think there was sufficient testimony to take the case to the jury.
The verdict reviewed in the former case was for $5,000. The verdict now here is $4,560. We cannot say in view of the testimony and exhibits the verdict is excessive.
It is claimed lay witnesses were erroneously permitted to testify to plaintiff’s physical condition. One does not have to be an expert to testify to what he sees and knows. Elliott v. Van Buren, 33 Mich. 49 (20 Am. Rep. 668); Harris v. Railway, 76 Mich. 227; Will v. Village of Mendon, 108 Mich. 251; Hall v. City of Flint, 195 Mich. 638.
£ £ There is no rule which can prevent ordinary witnesses from describing what they see, or from testifying concerning the kind of injury or sickness of others whom they have had occasion to consort with, unless it is something out of the common course of general information and experience, or unless the question presented involves medical knowledge beyond that of ordinary unprofessional persons. It would be ridiculous to shut out testimony of what any juryman would understand well enough for all the exigencies of the case before him, simply because no physician has seen or examined the party. It would lead to a denial of justice in all cases of bodily injuries and sickness which did not occur within range of medical help, and which were not regarded as so difficult of treatment as to demand it. There is no danger that the introduction of common testimony on matters of common knowledge will do any more mischief, when open to cross-examination before a court and jury, than would arise from the want of any legal means of selecting witnesses from the numerous class of professional men, who differ as much in their relative merits as many of them do from laymen. ” Elliott v. Van Buren, supra.
Various complaints are made as to the charge of the court.
(a) It is claimed the court erred in stating to the jury the rule as to a physician’s liability for error of judgment in choosing between one of two approved methods of treatment. The language complained of is an excerpt from the general charge. It was not criticized when the case was here before and is modified and explained by preceding and subsequent portions of the charge. On the whole we are not satisfied defendants were prejudiced thereby. In 48 C. J. p. 1128 the general rule is stated:
“Whether errors of judgment will or will not make a physician or surgeon liable in a given case depends not merely upon the fact that he may be ordinarily skillful, but on whether he has treated the case skillfully or has exercised in its treatment such reasonable skill and diligence as is ordinarily exercised in his profession. The exemption from liability does not extend to a case where the error occurs by reason of a physician’s lack of the knowledge which he should possess or his . failure to exercise proper care; thus a physician is liable for the consequences if the error of judgment is so gross as to be inconsistent with the exercise of that degree of skill and care which it is his duty to apply.”
(b) Complaint is made of the charge of the court in permitting the jury to award damages for future pain, suffering and loss of earning capacity. The court charged the jury:
“If you find for the plaintiff, then you should award to him such a sum as will fully and fairly compensate him for any pain and suffering which he has endured from the time when his leg would, had he not been treated negligently, have recovered. Neither of the defendants was in any way to blame for the original breaking of the leg and no claim has been made in this case that either was in any way responsible for this original breaking or for any pain and suffering which the plaintiff endured because of the original breaking or because of any sub sequent pain and suffering growing out of such original breaking which was not caused or contributed to by some negligent act on the part of the defendants. If you find for the plaintiff, he is entitled to recover only for pain over and above that which would naturally have followed from the breaking of a leg and its proper reduction and treatment.
‘1 Plaintiff cannot recover for any pain and suffering which would naturally follow a broken leg, nor for any pain and suffering which would naturally follow the proper treatment after such fracture. It is only for any additional pain which was caused by improper treatment, if there was such improper treatment, for which he asks, or could ask, recovery.
“Now a word relative to the subject of pain and compensation for pain. Of course, no testimony has been offered, and no testimony can be offered as to the value, as to -the damage done a man by suffering pain. That is a subject left to the good judgment of the jury; that must be left to the sound discretion and judgment of the jury. If you find in this case that the plaintiff is entitled to recover for pain that he did suffer, over and above what he would have suffered, had the treatment been in accord with standard practice, as I have defined it to you, then you are to decide what amount will fairly compensate him for such pain and suffering, and the fact that no evidence can be offered as to its value, of course, does not mean that plaintiff is not entitled to recover for pain and suffering. It only means that it is impossible to state it, and is left to the sound judgment of the jury.
‘ ‘ The question of damages will not enter into your consideration, unless you first find that the defendants, or one of them, was guilty of negligence which proximately caused the injuries complained of, as I have defined these terms to you.
“In considering the question of damage, you should confine your consideration to those damages which resulted from the negligence of the defend ants, if yon find that they were negligent, and you must exclude from your consideration any damages which were the natural consequence of the original 'injury to the plaintiff.
“If you find that plaintiff’s earning capacity has been impaired because of negligent conduct on the part of the defendant, or defendants, then you should award to him such a sum as will fully and fairly compensate him for such loss of earning capacity from the time when you determine from the evidence he would have recovered, had he received proper treatment and care, until the present time.
“If you find for the plaintiff, you should award to him such sum as you believe will fairly and fully compensate him for any future pain and suffering which he will be reasonably certain to endure because of any improper treatment.”
We find no prejudicial error in the charge of the ' court.
(c) It is claimed the court erred in permitting the introduction of the mortality tables. A similar question was before the court in Hunn v. Railroad Co., 78 Mich. 513 (7 L. R. A. 500), where the rule is stated:
“The mortuary tables contained in Howell’s Statutes were properly admitted in evidence, as some testimony tending to show Hunn’s expectancy of life at the age of 27. Batch v. Railroad Co., 67 Mich. 394. Such tables are not conclusive. They show the probable age which a healthy person may expect to reach, whose age is given. But when that is before the jury, and the physical condition of the person at the time of his death, and all testimony which may reasonably affect his duration of life, the jury must determine from the testimony before them the probable duration of decedent’s life had he not died as a result of his injury.”
We do not find the conrt was in error in permitting the introduction of the mortality tables nor in his charge to the jury.
It is claimed the court was in error in inducing a verdict by coercive instructions to the jury. The instructions did not go as far as those in People v. Coulon, 151 Mich. 200, and we find no error in such instructions. ■
It is contended the court erred in refusing to give the instructions requested by defendant upon the question of speculation and guess work. These instructions were negative in character. The court had very fully stated what was necessary for plaintiff to prove and establish in order to recover. He had properly limited the measure of damages to which plaintiff might be entitled in case defendants were found guilty of malpractice. This was all that was necessary. We find no reversible error.
Judgment affirmed, with costs.
Weadock, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. McDonald, C. J., did not sit. | [
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Sharpe, J.
On September 18, 1920, plaintiffs sold a farm in Barry county to the defendant upon land contract. The purchase price was $7,000, of which $1,500 was then paid and the balance to be paid in' annual instalments of $200 each, with interest on all sums unpaid at six per cent, per annum. On October 9th following, the defendant assigned the contract to Ernest V. Barker. On August 1, 1921, Barker assigned the contract to J. J. McVay. Copies of both assignments were sent to plaintiffs. It is admitted that after receiving these copies they consulted an attorney, and were advised that the defendant was not relieved from liability thereby.
Annual payments were made by McVay and accepted by the plaintiffs until September, 1931, when default occurred. This action is brought by the plaintiffs to recover from the defendant the amount of the payment and interest then due. On trial before the court without a jury, plaintiffs had judgment therefor in the sum of $410, from Avhich the defendant, by leaAm of the court, has taken this appeal.
The record discloses that the plaintiffs gave Mc-Vay receipts in his name for the payments made by him, and made no demand on the defendant until after the default in 1931. It also appears that they at times extended leniency to him Avhen payments Avere due. The defendant claims that they at one time agreed Avitlv McVay to accept the payment in October instead of September, and at another time to accept a payment of interest only. While the testimony of McYay, and the dates of payment as evidenced by the receipts, may be said to support these claims, they were denied by the plaintiffs, and the court found that they were not established.
The defendant claims that the plaintiffs accepted McYay as their debtor, and that a novation was thereby established.
“In every novation there are four essential requisites: (1) A previous valid obligation. (2) The agreement of all the parties to the new contract. 13) The extinguishment of the old contract, and (4) The validity of the new one.” Ceabuske v. Smolarz, 229 Mich. 100.
In Epworth Assembly v. Railway Co., 236 Mich. 565, 572, it was said:
“While-it is true that the assent to and acceptance of the terms of novation may be implied from the facts and circumstances attending the transaction and the conduct of the parties thereafter, yet the performance by the substitute is not sufficient in itself to raise such implication.
“ ‘There must be consent by the creditor to take the new debtor as his sole security and to extinguish the claim against the former debtor. Butterfield v. Hartshorn, 7 N. H. 345 (26 Am. Dec. 741). Such consent is not to be implied merely from the performance of the contract by the substitute, for that might well consist with the continued liability of the original party, the substitute acting for that purpose in the capacity of agent for the original obligor.’ Illinois Car, etc., Co. v. Linstroth Wagon Co., 50 C. C. A. 504 (112 Fed. 737, 740).”
The acceptance of payments by the plaintiffs from McYay created no privity of contract between them, and they could not have maintained an action at law against him on the contract. Tapert v. Schultz, 252 Mich. 39.
Had defendant desired to be relieved from his obligation, he should have secured a release in writing so providing.
The judgment is affirmed.
McDonald, C. J., and 'Weadock, North, Fead, Wiest, and Butzel, JJ., concurred. Potter, J., did not sit. | [
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McDonald, C. J.
This is a suit at law to recover permanent disability benefits under an insurance policy. Prom an adverse judgment, the plaintiff has appealed.
The defendant, Metropolitan Life Insurance Company, issued group insurance policies covering the employees of the General Motors Truck Division, Yellow Truck & Coach Manufacturing Company. The plaintiff was one of these employees.
In addition to temporary disability and death benefits the policy provided for permanent disability as follows:
“Under the terms of the group policy mentioned on page one of this certificate, any employee shall be considered totally and permanently disabled who furnishes due proof to .the company that, while insured thereunder and prior to his 60th birthday, he has become totally and permanently disabled, as a result of bodily injury or disease, so as to be prevented thereby from engaging in any occupation and performing any work for compensation or profit. ’ ’
The plaintiff’s application contained a true statement of the date of his birth which showed that he was 64 years • of age when the policy was issued. Premiums were paid for about five years, at which time the plaintiff became totally and permanently disabled. He was then 69 years of age. A claim was made in the regular way for permanent disability benefits. It was denied on the ground that the insured was not eligible for benefits under the total and permanent disability clause of the policy which applied only to an employee whose disability occurred prior to his 60th birthday. The plaintiff then brought this suit in which he claims the right to recover on the theory that the defendant waived the provision of the policy relative to the age limitation by issuing it with knowledge from its records that the plaintiff was more than 60 years of age and by accepting premiums thereon for five years without informing him that he was not fully covered. Unless the doctrine of waiver applies, the plaintiff is not entitled to recover.
There are some material facts present in this case which distinguish it from most of the insurance cases where waiver has been applied and especially from those cited and relied on by the plaintiff. For instance, the premium paid by the plaintiff was no larger than that paid by other employees entitled to the same benefits. All employees regardless of age or physical condition paid the same premium. When they reached the age of 60 they lost their right to total disability benefits, but they continued to pay the same premiums as they had previously paid. Whether they had partial or full coverage the premium was the same. So this is not a case where by reason of some act or neglect of the insurer the insured paid a larger premium than he should have paid. In the payment of premiums he was not prejudiced.
Eliminating the age-limitation clause, the policy constituted a valid and binding contract for the pay ment to the plaintiff of temporary health and death benefits. Hence there was a consideration for the premiums.
The policy expressly excluded benefits for total disability to those who had reached the age of 60 years; so if the doctrine of waiver is applied the effect will be to force upon the insurer a risk which it expressly refused to assume.
There were benefits under the policy which were not contingent on the age limitation, so if that clause is enforced it will not render the policy void at its inception, in which ease there can be no forfeiture. An enforcement of the age-limitation clause will leave a valid and binding contract for temporary health and death benefits. In view of these facts the language of this court in Ruddock v. Detroit Life Insurance Co., 209 Mich. 638, aptly applies:
“The cases where the doctrine of waiver, or estoppel, has been applied have largely been cases where the insurance companies have relied on a forfeiture of the contract, upon breaches of the warranties and conditions to work such forfeiture; and in many such cases this court and other courts of last resort have held that if the companies have led the other party, to his prejudice, to his expense, to understand that such forfeitures, such breaches of warranties and conditions would not be insisted upon, then the companies would be estopped from asserting such defenses. But here the defendant makes no claim of forfeiture of the contract; on the contrary, it is insisting upon the contract itself and insisting that by its terms it did not insure the deceased when engaged in military services in time of war. To apply the doctrine of estoppel and waiver here would make this contract of insurance cover a loss it never covered by its terms, to create a liability not created by the contract and never assumed by the defendant under the terms of the policy. In other words, by invoking the doctrine of estoppel and waiver it is sought to bring into existence a contract not made by the parties, to create a liability contrary to the express provisions of the contract the parties did make.”
In applying the doctrine of waiver the courts have made a distinction in cases where the entire benefits from the policy are contingent upon the insured being within the age limitation so if that clause is not waived the policy would be void at inception and cases where the enforcement of the age limitation clause leaves a valid contract between the parties. The doctrine of waiver has not been applied to the latter cases. In the first line of cases the insurers’ rely upon a forfeiture of the policy which the courts do not favor.
The facts in the instant case are very similar to those involved in McLain v. American Glanzstoff Corp., 166 Tenn. 1 (57 S. W. [2d] 554), and the principle there enunciated is applicable. It was said:
“If the policy had insured against total disability alone and the insurer knew that complainant was 61 years old at the time the contract was written, the insurer, under this rule, would be estopped to rely on a provision of the policy excepting from total disability benefits any insured over 60 years of age.
“Here, however, the contract of insurance covers the life of the insured for the benefit of his wife, is a valid contract in that respect, not void from its inception. The contract merely excludes from its total disability benefits employees over 60 years of age.”
In the instant case though, the application correctly stated the plaintiff’s age and showed that he was not entitled to total ■ disability benefits, the in surer owed no- duty to so inform him because the application was the same as plaintiff would have made for partial coverage and the insured had a right to assume that plaintiff understood it that way. We conclude there was no waiver.
The judgment is affirmed, with costs.
Weadook, Potter, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. | [
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Wiest, J.
Defendant Guy H. Burgess was treasurer of the township of Marion, Sanilac county, in 1926 and 1927, and defendant company was surety on his bond to the county. This suit was brought by the county of Sanilac to recover State and county tax money collected by the township treasurer in 1926 and 1927 and not paid over to the county treasurer. The township treasurer defends on the ground that he deposited the tax money in a bank designated by the township board in 1910 as the proper depository, and the money sued for by the county was so on deposit when the bank failed on January 5, 1927. The township board, in December, 1910, designated the bank as depository under the provisions of the statute, and on December 21, 1910, approved the bond of the depository with personal sureties thereon. This designation was never renewed nor changed by action of the township board, and plaintiff claims that it was operative only during the term of the then township treasurer and until his successor was elected and had qualified, while defendants claim that the designation remained operative because unchanged. These contentions present the issue of law to be decided.
Act No. 305, P.ub. Acts 1909, now 1 Comp. Laws 1929, § 1017, permitted the township board to designate a depository for money coming into the hands of the township treasurer, and required the treasurer to comply therewith and, upon compliance, relieved him and the surety from liability occasioned by failure of the depository. Between 1910 and 1926 many treasurers served. The tax roll in Marion township for 1926 amounted to $40,285.46. The depository bond was given in 1910. The bond of the depository need not be in the amount of the tax roll for the law limits deposits to the amount of the bond fixed by the township board.
. It does not appear whether the sureties on the depository bond given in 1910 are still living, or, if living, are pecuniarily responsible.
Counsel for defendants cite cases from other jurisdictions upon the question of continuance of a depository once designated. Of course, holdings in such cases hinged upon construction of statutes. The decisions of courts in other jurisdictions afford no certain guidance or test. There appears to be no fixed general rule on the subject, and .we are, therefore, required to construe our statute and apply the law in accord with its manifest purpose.
In City Savings Bank v. Huebner, 84 Mich. 391, there was involved construction of a local act, au ■thorizing the comity treasurer and the board of auditors to designate a depository for public funds, and- it was held:
“A designation of a depository by the treasurer and board is good and valid until the expiration of the term of his office, and until a new designation is made by the newly-elected county treasurer and board.” • '
The continuing effect of the designation was, however, limited by the following statement of the court:
“It is the duty of the newly-elected county treasurer and board of auditors, as soon as convenient after the treasurer qualifies'and enters upon the duties of his office, and without unnecessary delay, to designate one or more depositories, in accordance with the statute. ’ ’
That case, while not directly in point, is persuasive of the holding we should make.
It is not the policy of the law to subject the safeguards, established for the protection of tax collections, to any hazards, and much less to the inattention here disclosed.. Defendant treasurer’s exoneration, if any, must rest upon due attention to the provisions of law and not upon inattention. It was the duty of the township board, if a depository was deemed advisable, to make the designation from time to time, having in mind instant needs and tax rolls and prospective funds in the hands of an incumbent treasurer.
The statute contemplates successive action by the township board, if a depository is desired, and not continuing operation of action had under different circumstances and based on other considerations.
The defendants were bound by the bond in suit to account for State and county taxes collected, unless the liability was discharged by due observance of the statute permitting designation of a depository, and deposits in accordance therewith. The presumption of law is against a continuing guaranty, especially in the case of uncompensated sureties. *
The statutes relating to tax collections; bond by the treasurer to the township; fixing the amount thereof by the supervisor in accordance with the assessment roll; bond to the cpunty treasurer for State and county tax moneys; and permission to the township board to designate a depository for tax money collected, all indicate the extreme care with which such moneys are safeguarded, and it would render such safeguards of little avail to hold that the designation of a depository in 1910, without more, was operative, within the intent and purposes of the statute, in 1927. The statute does not require designation of a depository, but is permissive, and we hold that the designation of a depository in 1910 did not, without more, authorize the. treasurer in 1926 and 1927 to assume continued operation of the designation and the right to deposit tax collections thereunder.
Judgment affirmed, with costs to plaintiff.
McDonald, C. J., and Weadook, Potter, Sharpe, North, Fead, and Butzel, JJ., concurred. | [
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Potter, J.
Plaintiff sued defendant for having, by deceit and false representations, procured from bim $500. There was judgment for plaintiff and defendant brings error. Plaintiff lived in Detroit. His present wife, then unmarried, lived in the home of defendant. Plaintiff desired to marry her. Defendant represented he was sole representative of the father of the girl; that her father, who lived in Syria, Lad instructed defendant to collect $500 before bis consent be given to her marriage to plaintiff. Plaintiff introduced testimony tending to show it was agreed that after the marriage plaintiff and defendant would go to the bank, draw the money, and send it to the father. Plaintiff claims he relied upon such representations, and gave defendant a check for $500, which defendant cashed. Plaintiff’s testimony shows that after the marriage he and his wife decided to send the money and asked defendant to go to the bank. Defendant refused to do so, and said he had spent the money. At the conclusion of plaintiff’s testimony, defendant moved to direct a verdict on the ground there was no proof the money had not been transferred to plaintiff’s wife’s father in Syria. The court, without ruling upon the motion, took defendant’s testimony. Defendant admitted he asked plaintiff for the money, gave plaintiff a receipt for the check, and that plaintiff asked defendant to hold the check. Defendant says he claimed the money and kept it, and never had any authority from plaintiff’s wife’s father to collect it. At the conclusion of the testimony, defendant renewed his motion to direct a verdict, and assigns error upon the court having refused to do so.
No requests for finding of fact and law were presented to the court under Circuit Court Rule No. 45. No proposed amendments to the findings of fact were made. No exceptions were filed thereto, as required by Rule No. 45. Where no exceptions are taken to the findings as required by the rule, assignments of error based upon the sufficiency of the evidence to support the particular findings cannot be reviewed. Haines v. Saviers, 93 Mich. 440; Child v. City of Jackson, 93 Mich. 503; Edward W. Alexander Co. v. Griggs, 240 Mich. 71; Evangelist v. Falzerano, 241 Mich. 62; Smarr v. Colgrove, 242 Mich. 56. Aside from this, when plaintiff rested, a prima facie case had been established. Judgment affirmed, with costs.
North, C. J., and Fead, Butzel, Wiest, Clark, McDonald, and Sharpe, JJ., concurred. | [
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McDonald, C. J.
This is a suit for rescission of two land contracts on the ground of fraud: The contracts are dated July 28, 1931, and evidence the purchase by the plaintiff of two lots from the Alien-crest Gardens Corporation. The defendant, Max Borgan, was president and sales manager of the corporation. The lots in question were sold by him through subagents, Miss Gentz and Miss Biegel, and are a part of a subdivision near the city of Detroit in Ecorse township, Wayne county, Michigan.
The plaintiff is a widow living in Fremont, Michigan. At the time she purchased the lots she had some money in one of the Fremont banks and owned 11 shares of Consumers Power Company stock. It is her claim that she was induced to buy the lots by false representations of the defendants’ agents, who in substance stated to her that her money was not safe in the banks; that the Consumers Power Company stock was falling in value; that she would lose the largest part of her investment in that stock if she retained it; that the safest place for her money was in real estate; that the purchase of the lots in question offered a wonderful opportunity for a safe investment and large profits; that she would double her money in five years if she bought the lots, which were well worth $1,300 each.
The plaintiff charges that she was not at all familiar with the value of real estate in the vicinity of these lots; that she so informed the agents and further told them that if she made the purchase she would be compelled to rely entirely on the truth of their representations; that she did rely on them; that she believed them to be true and did not discover that they were false and made with intent to deceive and to defraud her until after she had executed the contracts. The assertion and denial of these fraudulent charges made up the issue, which on the hearing the trial court resolved in favor of the plaintiff and accordingly entered a decree against both defendants for rescission and repayment of the consideration. The defendants have appealed.
The defendants admit that they represented the value of the lots to be $1,300, but deny that they made the statements ’attributed to them about the failing financial condition of the Consumers Power Company and the Fremont banks. They still insist that the lots were" reasonably worth the amount represented but say that in any event regardless of the actual value the statements made to the plaintiff were merely expressions of opinion insufficient to sustain an action for rescission.
The general rule that an honest expression of opinion as to value in itself does not constitute actionable fraud is well settled; but we think the facts in this case present an exception to the general rule. If the plaintiff’s testimony is true, there was more than expression of opinion. There was a concealment of facts bearing on the value. There was a misstatement of facts to one who was ignorant of land values in the vicinity where these ’ lots were located. At the time the plaintiff purchased the lots there waspio local market for them. A selling campaign was carried on in districts remote from the city of Detroih/Mr. Batigan,- an expert witness on values, called by the defendants, testified:
"With regard-to the sales of real estate and the value of real estate for selling purposes in June, 1931, the market was comparatively dead. ’ ’
The sales to the plaintiff were made in July, 1931, at which time according to the defendants’ expert witness "the market was comparatively dead.” The plaintiff knew nothing about this condition of the real estate market. They did not inform her of the actual situation though she told them' she was ignorant of real estate values and if she purchased the lots 'it would be in reliance on their representations. They concealed the facts from her. In respect to this phase of the case the trial court said in his opinion:
“It further appears from the testimony that the area contiguous to Detroit had. been largely subdivided prior to June, 1931, and that there were many of these unimproved lots on the market which were unsalable at the time the contracts were made in this case and it is the further finding of this court that the lots in the Allencrest Gardens Subdivision were no exception to the general condition which prevailed in Detroit at the time the deal was made. * * * It further appears that there was no local market for this real estate and that sale of lots was being made through the efforts of the sales organization of the defendant outside the city of Detroit. This court is not favorably impressed with the practice employed in this case of deceiving widows and other parties without knowledge of values of real estate in the city of Detroit and by the use of high-pressure salesmanship inducing them to make purchases of this kind. The plaintiff in this case was entirely unacquainted with the values of Detroit real estate. She appears to- be an honest but an ignorant woman in business matters; one whose testimony is worthy of credence by the court, but whose appearance on the stand indicates her unfamiliarity with or knowledge of business affairs. There is no question in the mind of the court but that she was induced to purchase these lots relying entirely upon the representations as to value that were made to her and that excepting for such representations she would not have entered into the contract to buy them. Such is her testimony, and all of the facts and surroundings. corroborate her testimony in that respect. ’ ’
There was a wide variance in the testimony as to the value of the lots at the time they were purchased. It ranged from $50 to $900. Mr. Cain, a witness for the plaintiff, testified that the lots were worth $100 each. Objections to his qualifications were overruled and on that ruling error is assigned. We think him sufficiently qualified. There is more merit to the alleged disqualification of the witness Branstrom, who valued the lots at $50 each. However, his testimony may be eliminated without affecting the result. Mr. Ratigan, the defendants’ real estate expert, gave his opinion that the lots were reasonably worth $900 each. Of his testimony the trial court said :
“The qualifications of the expert who testified for the defendants are very apparent. The credence to be given to his testimony, however, is somewhat lessened because of the unusual interest which he manifested upon the stand and the voluntary statements made, which would characterize him as a great booster for all Detroit real estate and especially that in the down-river district.”
On this record we are convinced as was the trial court that the value represented by the defendants was greatly in excess of the actual worth of the lots; that the representations were made as the plaintiff claims; that they were relied on by her; that they were^alse and that she is entitled to a rescission of her contracts.
But we disagree with the court in his finding and decree of personal liability on the part of defendant Borgan for the repayment to the plaintiff of the money paid on the contracts. This is not a suit at law for damages resulting from the fraud. It is a suit in equity for rescission. She is entitled to a rescission and restitution from the corporation of the money paid on the contracts. She can recover nothing from Borgan. He' was not a party to the contracts. He personally received no payments. Though he participated in the fraud and may have received a commission from the corporation for the sale he cannot in this action be held personally liable'. Hafner v. A. J. Stuart Land Co., 246 Mich. 465.
As to defendant Borgan, the decree is reversed. In all other respects it is affirmed. The defendant Borgan will have costs against the plaintiff. She will have costs against the corporation.
Weadock, Potter, Sharpe, 'North, Pead, Wiest, and Btjtzel, J J., concurred. | [
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North, J.
The highway known as US-131 extends in a northerly direction from the city of Kalamazoo. Something less than half a mile north of the city limits the Brookside Inn is located on the westerly side of this highway. In that locality the concrete surface of the road is 20 feet in width. In the early evening of August 5, 1932, defendant and two companions were proceeding in his automobile in a northerly direction from Kalamazoo along this highway, going 30 to 35 miles per hour, their destination being the Brookside Inn. The three were occupying the front seat of defendant’s Pierce Arrow automobile. Plaintiff’s decedent (hereinafter called plaintiff) and a companion mounted on motorcycles were proceeding in the same direction some distance in the rear of defendant’s automobile. There are two driveways from the highway into the Brookside Inn. Defendant slowed down as he approached one of these two driveways and turned his automobile to his left in the act of driving into the premises. Just at this instant the motorcycle of plaintiff collided with defendant’s automobile, striking it in the center portion of the rear end. The accident resulted in the death of Nicholas Lauth. Upon suit brought by his administrator for damages, he had judgment and defendant has appealed.
In support of plaintiff’s case it is claimed that just immediately prior to the accident he and his companion were in the act of attempting to pass defendant’s automobile. The gist of the negligence charged in the declaration is that defendant failed to keep to the right of the highway after deceased had given a suitable audible signal indicating his intention to pass; and further that before turning from the line in which he was traveling defendant was negligent in failing to ascertain that such movement could be made in safety and in failing to give a signal by means of his hand or arm or other device and to convey an intelligent warning to deceased who was approaching from the rear. See 1 Comp, Laws 1929, §§ 4703, 4711. Appellant asserts that he was entitled to judgment as a matter of law on the ground that the undisputed physical facts are such as establish plaintiff’s negligence; and also because the undisputed testimony is that defendant exercised reasonable care and complied with the statutory requirements in the manner in which he was operating his automobile at the time of the accident, particularly in that he gave warning of his intention to make a left-hand turn by extending his hand and by displaying signal lights on his automobile.
Under the facts which plaintiff’s testimony tends to establish in the instant case, we cannot sustain appellant’s contention that right of recovery is barred because of the undisputed physical fact that plaintiff’s motorcycle collided with the rear end of defendant’s automobile in the manner above indicated. According to the testimony of plaintiff’s companion the latter’s motorcycle immediately preceding the accident was traveling a little in the rear and somewhat to the right of the motorcycle on which plaintiff was riding. This witness testified that plaintiff by sounding a horn gave warning of his intention to pass defendant’s automobile; that this was done when plaintiff was about 50 or 75 feet back of defendant’s ear and at a time when plaintiff had veered to the left or westerly side of the highway in attempting' to pass; that after plaintiff sounded the horn and was about 20 feet from the automobile defendant turned rather sharply to the left and applied the brakes at which instant the warning signal on the rear of the automobile was lighted, but that prior to that time no signal of defendant’s intention to make a left-hand turn had been given. The testimony is further to the effect that plaintiff upon discovering that the automobile was turning to the left or in a westerly direction attempted to change his course and pass to the right of the automobile, that he was unable to turn quickly enough and the collision resulted. Plaintiff’s com panion succeeded in veering to the right and in passing defendant’s car in safety on the right-hand side. There is testimony that the motorcycles were traveling from 35 to 40 miles an hour. After the accident plaintiff’s motorcycle was found lying just east of the center line of the traveled portion of the highway. The testimony in behalf of defendant is that he approached the point of turning into the driveway at a comparatively slow rate of speed, that he gave timely warning of his intention to turn both by extending his hand and arm and also by operation of the warning light at the rear of his automobile. Appellant stresses the point that there is no dispute in the testimony about the light warning having been given, and asserts that giving such warning was sufficient compliance with the statutory requirement.
We think it clearly appears from this record that there is a dispute in the testimony as to how and when defendant gave warning of his intention to turn. It is admitted by his witnesses that they did not know exactly the location along this highway of the Brookside Inn, that they were watching for it as they approached. We quote from the testimony of plaintiff’s companion, Merrill Kitchel:
“The gentleman in the car ahead did not extend his arm. At that time when Mr. Lauth turned to the left, the automobile ahead of us was being driven on the right side of the road. There was no stop light showing on the rear at that time. * * * He (plaintiff) sounded his horn and started to pass him, and then the car abruptly started to turn to the left and applied the brakes at the same time. Mr. Lauth turned to the right to miss the car and he couldn’t turn quite far enough. * * * The back part of the car where he struck was approximately on the black line when he hit it. The front end of the car was pulling to the left of the pavement, off from the pavement. * * * The left front wheel, I believe, was off the pavement, or at least it was almost off. * * * At no time while I was approaching that car did the driver of the car extend his hand. Mr. Lauth was approximately 20 feet from the automobile at the time the automobile started to turn to the left.”
The pertinent statutory provision is:
“Signals on starting, stopping or turning.
“ (a) The driver of any vehicle upon a highway before starting, stopping or turning from a direct line shall first see that such movement can be made in safety and shall give a signal as required in this section.
“(b) The signal herein required shall be given either by means of the hand and arm in the manner herein specified, or by a mechanical or electrical signal device which conveys an intelligible signal or warning to another driver approaching from the rear.
“Whenever the signal is given by means of the hand and arm, the driver shall indicate his intention to start, stop, or turn by extending the hand and arm horizontally from and beyond the left side of the vehicle.” 1 Comp. Laws 1929, § 4711.
As intimated above, we think the testimony is in dispute as to whether a proper signal of intention to deviate from the course his automobile was pursuing was given by defendant; and surely the record presents a question of fact as to whether the electric signal, even though given, was sufficiently timely to free defendant from the charge of negligence in that particular. See Rohrman v. Denzinger, 208 Ky. 832 (272 S. W. 16); Gates v. Landon, 216 Mich. 417; 1 Blashfield Cyclopedia of Automobile Law, p. 539. The case was submitted to the jury under a charge of which no complaint is made. Appellant’s conten tion that he was entitled to judgment as a matter of law cannot be sustained.
Affirmed. Costs to appellee. .
McDonald, C. J., and Weadock, Potter, Sharpe, Pead, Wiest, and Butzel, JJ., concurred. | [
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Fead, J.
This is certiorari to review a contempt proceeding. The facts are substantially undisputed.
On July 2, 1928, the criminal trial of Charles Jacoby and others, charged with extortion, was in progress in the recorder’s court of the city of Detroit. The case was notorious, involved what was known as the "Purple Gang,” and was voluminously reported in the local newspapers. Jacoby testified that he had collected money from persons in the cleaning and dyeing business, under direction of Frank X. Martel, president of the Detroit Federation of Labor, and had paid the money to him. That evening a reporter for the Detroit Free Press called defendant Simmons by telephone. Simmons was secretary of the Detroit Federation of Labor and an attorney at law. His version of the conversation was:
“And then asked me, ‘Do you see where Jacoby says he gave the money to Martel?’ and I said, ‘Yes,’ and he said, ‘What do you think of it?’ I said, ‘I don’t think — I know.’ I said, ‘Neither Frank Martel or any officer of the Federation of Labor received any money from Charles Jacoby.’ * * * He asked me, I believe, ‘Do you care if we publish this story?’ and I said, ‘I don’t care whether you publish it or not, it is the truth. ’ ’ ’
The reporter testified that when he asked Simmons if he cared if the statement was published, the latter replied, “No, go ahead.” The next day the Detroit Free Press contained an article, part of which, was:
“SIMMONS DENIES GRAFT
“John F. Simmons, Martel’s attorney, denies Jacoby’s charges that either Martel or any of the officials of the Detroit Federation of Labor had-been paid ‘graft’ money by Jacoby.
“ ‘No member of the Detroit Federation of Labor and no representative of any of its affiliated bodies ever received one cent of the money Charles Jacoby says he gave to Frank X. Martel, the federation’s president,’ Simmons, attorney for the federation, said yesterday in answer to Jacoby’s statement that he, as representative of the wholesale cleaners’ and dyers’ union, had paid Martel $3,000. * * *
“jACOBY DISPOSED OE MONEY
“ ‘Jacoby disposed of this money in other ways. It never reached the office of the Federation of Labor, and the officials of the federation had nothing to do with any of the money handled by officials of the cleaners’ union,’ Simmons-said late yesterday.”
The case was still pending and the testimony not yet closed. Contempt proceedings were had against Simmons. He was found guilty and fined $150, with the alternative of 15 days in the county jail.
Defendant challenges the jurisdiction of the court, in that the acts charged as contempt, “not being within the immediate view and presence of the court and directly tending to interrupt its proceedings, or to impair the respect due to its authority,” are not within the statute, 3 Comp. Laws 1915, § 12268, defining contempts punishable by courts of record.
■ This statute is part of the judicature act (No. 314) of 1915. With only slight, changes of language, it is substantially a merger and re-enactment of two former statutes of long standing (2 Comp. Laws 1857, §§ 4053, 4074), the criminal contempt parts of which were not designed to limit or prohibit jurisdiction but were* in affirmation of the common-law inherent power of courts of record. Langdon v. Wayne Circuit Judges, 76 Mich. 358. The recorder’s court of the city of Detroit was re-established by Act No. 326, Local Acts 1883 (3 Comp. Laws 1915, § 14633 et seg.). It has original and exclusive jurisdiction over certain criminal offenses committed within the corporate limits of the city, and supplants the circuit court of the county in, that respect and territory. To exercise such jurisdiction, it was given the general powers of the circuit court. This included the jurisdiction in contempt possessed by the circuit court, inherent as well as statutory. Nichols v. Judge of Superior Court of Grand Rapids, 130 Mich. 187.
Defendant, however, contends that the judicature act, being subsequent to the recorder’s court act, impliedly repeals the general grant of power in the latter as far as it applies to contempt. His position is untenable on several counts. Repeals by implication are not favored. “Only when- two acts are. so incompatible that both cannot stand does the latter repeal the former.” Highland Park v. McAlpine, 117 Mich. 666. There is no such incompatibility between the acts under consideration. The recorder’s court act was intermediate the original and present contempt statutes. As the latter was merely a' reenactment of the former, the recorder’s court act maintains its position of qualifying the latter as it did the former. 36 Cyc. p. 1084. The judicature act was a revision of the practice. Where there is an express repealing clause in a revision, only enumeracted acts are repealed unless other legislative intent-clearly appears. 36 Cyc. pp. 1081, 1082. The judicature act attempted no wholesale repeal or abrogation by general language, but carefully and specifically set up the particular statutes repealed by it. Neither the recorder’s court act nor any part of it is listed in the repealing clause of the judicature act. The power of the recorder’s court to punish for contempt in the exercise of its criminal jurisdiction is as necessary as that of the circuit court. The indices are that the legislature intended to leave that power intact. The court had jurisdiction.
The publication of defendant’s statement tended to introduce into a pending trial the testimony of an unsworn witness given out of court. In effect, it charged Jacoby with perjury. It was contempt of court. Patterson v. Colorado, 205 U. S. 454 (27 Sup. Ct. 556, 10 Ann. Cas. 689); Felkin v. Herbert, 9 L. T. R. 635; Littler v. Thomson, 2 Beav. 129; 13 C. J. p. 34. Defendant’s various contentions on this branch of the case may be answered by a quotation from Patterson v. Colorado, supra:
“In the next place, the rule applied to criminal libels applies yet more clearly to contempts. A publication likely to reach the eyes of a jury, declaring a witness in a pending cause a perjurer, would be none the less a contempt that it was true. It would tend to obstruct the administration of justice, because even a correct conclusion is not to be reached or helped in that way, if our system of trials is to be maintained. The theory of our system is that the conclusions to be reached in a case will be induced only by evidence and argument in open court, and not by any outside influence, whether of private talk or public print.”
The serious • question is whether defendant was . responsible for the publication of his, statement. No authority involving contempt of court has been cited on this issue, and both counsel have discussed the analogous law of libel, under which defendant contends the publication was an independent act of the reporter and editor for which he cannot be held ac^ countable.
In Johnson v. Gerasimos, 247 Mich. 248, this court recently recognized and applied the general rule that merely answering questions of a newspaper reporter, even though he is known to be a reporter, is not sufficient to charge a person with responsibility for the publication of the answers. 37 C. J. p. 15.
However, in this case the reporter asked defendant if he could quote his statement, and the testimony upon defendant’s reply justified the finding of the court that he had consented to the publication. While the defendant and the reporter disagreed as to precise words used, the facts were for the court to pass upon, and, on certiorari, his finding is conclusive, as there was evidence to sustain it. People v. Doe, 226 Mich. 5.
To be responsible for a publication a party need not have requested it or even have given his express consent. The rule is stated:
“If the statement is indicated for publication, with the intention that it will be written and published, and the purpose in that respect is carried out, the party who makes it with such intent and understanding is equally guilty as if an express request for publication had been made.” 17 B. C. L. p. 386.
The rule is illustrated in Weston Electrical Instrument Co. v. Benecke, 82 N. J. Law, 445 (82 Atl. 878, Ann. Cas. 1913 D, 11); Weston v. Weston, 83 App. Div. (N. Y.) 520 (82 N. Y. Supp. 351); Hazy v. Woitke, 23 Colo. 556 (48 Pac. 1048); and Valentine v. Gonzalez, 179 N. Y. Supp. 711, involving civil libel. In the latter ease the court held (quoting from syllabus):
“Where defendant furnished the information upon which a libel was based, and documents in support thereof, to a newspaper reporter, knowing that the latter intended to publish the story, he caused the defamatory matter to be published, though the reporter solicited the information, and defendant did not request that it be published.”
In Hazy v. Woitke, supra, in which it appeared the defendant, after making a statement, said he had no objection to its publication, the court approved the rule as stated in Odgers on Libel and Slander (1st Am. Ed.), 155:
“Every one who requests, procures, or commands another to publish a libel is answerable as though he published it himself. And such a request need not be express, but may be inferred from the defendant’s conduct in sending his manuscript to the editor of a magazine, or making ,a statement to the reporter of a newspaper, with the knowledge that they will be sure to publish it, and without any effort to restrain their so doing.”
In the two cases involving criminal libel, which we have found, Clay v. People, 86 Ill. 147, and State v. Osborn, 54 Kan. 473 (38 Pac. 572), the same rule of responsibility for publication was approved. In the latter case the court said:
“Of course, a person who casually makes a false statement to another, with no purpose or intention that it shall be written, printed, or published, even though the other person be a reporter for a newspaper, and the statement should afterward be printed and published, will not be guilty of libel. On the other hand, if a person knowingly dictates a slander to a reporter for publication, and knowing that it would be published, and it is afterward published as given by him, he is responsible for a libel, and may be punished equally with the one who aided or united with him in making the same.”
The rule so announced is sensible. In considering the purpose, intent, and understanding of a person who makes statements to a newspaper reporter, the parties and circumstances should be taken into consideration. An attorney at law fairly may be held to a greater degree of circumspection than a layman. One in a public position, having frequent contact with newspapers and reporters, may be held to a greater knowledge of their habits of obtaining and publishing interviews than one in a secluded station in life. It would be a work of supererogation to suggest reasons for holding that defendant knew the reporter intended to publish his statement, at once and while it was news, and that defendant’s reply to the request for permission to quote him was a consent and authorization of publication.
The court was justified in holding defendant responsible for the publication of his statement.
The extended argument of counsel that defendant was merely exercising his constitutional right of free speech in defending his own character and that of the association against slander is beside the mark. The accusation had been made against Martel. The record did not disclose that defendant had been attacked. His statement was a sweeping assertion, beyond the possibility of his personal knowledge, designed not only in defense of Martel but in impeachment of Jacoby. Would defendant have been justified in making the statement privately to the jurors? Obviously not. Then he was not justified in causing its publication where it might come to their attention. Nor was he justified by the fear that, if he had refused to deny the charge against Martel, the newspaper might have published his refusal to make denial. The offense charged against him was not merely in making the statement, but also in consenting and being a party to its publication.
During the Jacoby trial, defendant presented to the trial judge at chambers a written document, severely criticizing the conduct of the case. It was received in evidence in the contempt proceedings and cited by the court as one of several facts in support of his conclusion that defendant’s statement to the newspaper was not innocently made on the spur of the moment, but was deliberately intended to embarrass the court and jury and bring the trial into public disrepute, in furtherance of a general scheme to that end. The fact of its presentation was competent as showing defendant’s interest in the Jacoby case and as bearing upon the intentional character of his consent to the publication of his statement to the press and his responsibility therefor. The truth or falsity of the charges in the document was immaterial to that issue. The record does not show that defendant was convicted of contempt for making or presenting the document at chambers. The incident was used by the court as bearing upon his animus in connection with the charge of which he was convicted. It was not error to so use the testimony.
We find no error in the record, the conviction is affirmed, and the cause remanded for execution of the judgment.
North, C. J., and Wiest, Clark, McDonald, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision. | [
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Potter, J.
Willard O. Twombly, also known in the record as Willard Irving Twombly, and defendant were married July 23, 1916. From 1916 to 1925 they lived together in the city of New York. There they separated. October 31, 1925, Mrs. Twombly filed a bill for separate maintenance against her husband in the superior court of Cook county, Illinois, alleging her residence was in New York and his in Chicago. In 1932 she obtained a decree of that court against him for separate maintenance, a lump sum award of $22,910 and $400 a month thereafter. Willard O. Twombly had acquired the land in question in Berrien county, Michigan, and, Septemher 19', 1927, mortgaged it to plaintiff for $5,000. The mortgage was signed and executed by Willard O. Twombly and a woman he was then living with on the farm as his wife. By reason of his subsequent default .in the payment of the mortgage, plaintiff foreclosed it and at mortgage sale bid in the- land. In 1929 Willard O. Twombly quitclaimed his interest in the- land to plaintiff. Defendant,' February 2, 1928, caused a wait' of attachment to be issued out of the circuit court' o.f Berrien county against Willard O. Two.mbly and-..recovered judgment against him for $3,517.95 and costs, and June 15, 1928, caused an execution to be levied upon the lands in'question. Plaintiff is conceded to .'have been-^-.mortgagee in good faith' for a- valuable consideration without notice of defendant’s existence or rights. Defendant never lived in Michigan.
Angnst 4, 1928, defendant caused to he recorded in the office of the register of deeds of Berrien county her affidavit in which she set up that the mortgage of Willard O. Twombly purported to be joined in by his wife; that the woman who signed the mortgage with him was not his wife; that defendant, as the wife of Twombly, claimed a dower interest in the premises here involved. After perfecting its title by foreclosure and purchase at mortgage sale of the lands and quitclaim deed thereof from Twombly, plaintiff filed a bill to quiet title thereto and remove cloud therefrom against defendant. From a decree for plaintiff, defendant appeals.
The trial court found:
‘ ‘ The Twomblys -were living, in 1925, in the State of New York. On September 9, 1925, there was a separation, as claimed by the wife because of the cruel treatment received from her husband. Since that time these parties have never lived together as husband and wife. Defendant filed a bill for separate maintenance in Cook county, Illinois, on October 31, 1925, wherein she alleged that the separation between the parties took place on September 9, 1925, and that since that time they have lived separate and apart from each other, and that she at tliat time was an actual resident of the State of New York. In the month of June, 1932, defendant herein obtained a decree of separate maintenance from her husband in that' suit, wherein the court found, as a matter of fact, that from September 9, 1925, up to the date of the entering of the decree, the Twomblys had continued'to live separate and apart. This court must, therefore, find as a matter of fact tliat the theoretical, unity between this husband and wife had been destroyed,- and .-that the' wife had acquired a residence and' domicile - separate- and apart- from that of her husband. It is not claimed by defendant, or her counsel, that up to September 19, 1927, she had ever acquired an actual residence in the State of Michigan, but their theory is that because the Twomblys were then legally husband and wife, under the common-law fiction of the identity of husband and wife, the domicile and residence of the husband was that of the wife, and therefore, as a matter of law, she was legally domiciled in Michigan at that time. As I have endeavored to point out, this is not the law, as applied to the facts in the case at bar.”
Had defendant’s husband died in Michigan she would have been entitled to dower only in the lands of which he died seized. 3 Comp. Laws 1929, § 13088. Stanton v. Hitchcock, 64 Mich. 316 (8 Am. St. Rep. 821); Black v. Singley, 91 Mich. 50; and Hall v. Marshall, 139 Mich. 123 (111 Am. St. Rep. 404), hold that a wife who has never resided in Michigan is not entitled to homestead rights in lands owned by her husband here. Defendant relies upon Sherrid v. Southwick, 43 Mich. 515; Rogers v. Day, 115 Mich. 664 (69 Am. St. Rep. 593), and Gluc v. Klein, 226 Mich. 175.
In Sherrid v. Southwick, supra; John Cave and wife had. lived for many years on the land in question. She was subsequently driven from home by her husband’s misconduct. He mortgaged the land without her signature. It was held this mortgage, was void because she had acquired dower and homestead rights in the premises and her absence from the State by reason of Ms misconduct could not deprive her of these vested rights.
In Rogers v. Day, supra, one Louw, together with his wife and children, lived on the land in question for some time. She was driven out by'his misconduct for which he wás arrested. While in jail await ing trial lie executed the mortgage in question without his wife’s signature. Subsequently he was convicted and sent to prison. It was held her vested rights could not be cut off by his misconduct and the mortgage did not affect her dower and homestead rights.
In Gluc v. Klein, supra, the husband and wife had lived in Minnesota. The wife became insane and was incarcerated in a Minnesota insane asylum. The husband afterward came to Michigan and acquired the land in question. The question was whether his deed alone of the land, under the circumstances, was sufficient. It was held his domicile was presumptively that of his wife; that had his wife been sane she presumptively would have followed him to Michigan, but being insane she was unable to choose any other domicile than that of her husband and her signature was necessary in order to cut off her rights in the lands acquired here by him, but it was said:
“Under the statute if the wife resides out of the State her right of dower is barred by a conveyance executed by the husband alone.”
Under the undisputed facts here involved defendant resided out of the State; never resided in this State; never acquired dower and homestead rights in the lands in question, and her rights under the execution issued must be held to have been cut off by the mortgage sale to plaintiff.
Decree of the trial court affirmed, with costs.
McDonald, C. J., and Weadock, Sharpe, North, Fead, Wiest, and Btjtzel, JJ., concurred. | [
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Sharpe, J.
On February 3, 1928, the defendants •Henry and Marie Smeltekop, husband and wife, entered into a lease of 40 acres of land in Muskegon county to one E. L. Dee, granting to him the right to mine and operate for oil, gas, and gasoline thereon for the term of two years thereafter. The plaintiff has acquired all rights thereunder by proper assignments. Among the provisions therein were the following :
"The party of the second part agrees to commence a well on said premises within six (6) months from the date hereof, or pay at the rate of forty ($40) dollars, for each additional six months such commencement is delayed from the time above mentioned for the commencing of such well until a well is commenced. A payment of rentals to party of the first part by check made payable to the order of Henry Smeltekop and mailed to his address, viz., Muskegon, or deposited to the credit of lessor in the Muskegon Savings Bank of..........on or before the days and times provided herein for the payment of same, shall be good and sufficient payment of any rentals provided for in this agreement. And it is agreed that the commencing of such well shall be and operate as a full liquidation of all rent under this provision during the remainder of the- term of this lease. * * *
“The party of the second part, his successors or assigns, shall have the right at any time on payment of one dollar to the parties of the first part....., heirs or assigns, to surrender this lease for cancellation, after which all payments and liabilities thereafter to accrue under and by virtue of its terms shall cease and determine.
“All covenants and agreements herein set forth between the parties hereto shall extend to their successors, heirs, executors, administrators and assigns.”
At the expirátion of the first six months’ period, on August 3, 1928, plaintiff’s assignor paid the $40' rental provided for. The next six months expired on February 3, 1929. It was not then paid. On Feb-, rnary 11th, the Smeltekops sent their son to the bank where snch payment might be made with instructions to accept it if there, but, if not, to notify the bank not to accept it if paid later. A tender of the $40 was made on February 13th, but refused, and on the following day the Smeltekops entered into a lease of the premises to be used for the same purposes with the defendants Thompson Brothers. The lease to Dee and the assignment thereof to plaintiff have been recorded, as has also the lease to Thompson Brothers.
On February 27, 1929, plaintiff filed the bill of complaint herein, praying that its lease be decreed to be valid and in existence, and that the lease to Thompson Brothers be canceled and removed as a cloud upon its title. Defendants answered, and, after a hearing in which proofs were taken, the trial court entered a decree adjudging plaintiff’s lease to be null and void, and that subsequently entered into to be in full force and effect, from which plaintiff has appealed.
In the recent case of J. J. Fagan & Co. v. Burns, 247 Mich. 674, this court held that a lease of this kind ‘ ‘ should be read not only according to its words but in connection with the purpose of its clauses; ’ ’ that such leases “are to be construed for the benefit of the lessor and against the lessee;” that “in fairness to lessors, extension provisions should be made plain,” and that, if there be ambiguity therein, “the construction must be in favor of the lessor.” The changes in the forms of leases, due to the construction placed on the language used by the courts in the interest of lessors, and the purpose of inserting certain provisions, are commented on at some length and need not be here repeated.
The provision first above quoted obligated the lessee to commence a well by August 3, 1928, or, if not then commenced, to pay $40 for each additional six months such commencement was delayed. A fair construction of this provision, having in mind the applicable rules above stated, leads us to the conclusion that such payments should be made at the beginning of each six months’ period. The lessee did not expressly agree that he would “commence a well” within six months. At its expiration it had two options. It might surrender the lease on the payment of one dollar, or it might continue it in force for six months by the payment of $40 rental, so-called. It promptly made the first payment when it became due. It was under no legal obligation to do so, as surrender might have been had. If it desired to retain rights under the lease, the manner in which it might do so was pointed out — it must make the payment at the expiration of the time to which extension had been had, and thus inform the lessors that the lease was still binding upon them. The manner in which payment should be made was provided for. A check might be mailed to the lessor, or the money might be deposited to his credit “in the Muskegon Savings Bank * * * on or before the days and times provided herein for the payment of same.” While no specific time is fixed for making such payment, this provision is strongly suggestive that the extension of time is conditional on such payment being made if further time is desired. That plaintiff’s assignor also so construed the contract when making its first rental payment is worthy of note. It also appears that when the tender was made by its representative “he admitted he was'late paying the rental,” but tried, unsuccessfully, to induce the Smeltekops to accept it. Plaintiff’s right to an extension was dependent upon the payment being made. It was not, strictly speaking, a rental, because the plaintiff was not in possession, nor was it entitled to take possession until operation to sink a well was begun. As was said in Bettman v. Harness, 42 W. Va. 433 (26 S. E. 271, 36 L. R. A. 566), “these payments are not rentals, but compensation only for delay.” The one dollar consideration first paid insured it the right of possession to commence a well for six months.- The $40 payments, if made, extended this right for an additional six months. Both parties understood that these payments should be made in advance to secure the extension, and there is no injustice in so holding. Plaintiff’s rights were conditional on such payments being made in advance. Its failure to do so terminated its rights under the lease.
In ordinary leases of real estate, where the use and occupation form the consideration for the payment of the rent, there is some presumption that the lessee will have property from which the rental, if hot paid at the agreed time, can be secured, and so the undertaking for payment is not construed as a condition on which continued occupation- depends. But in leases such as this, where the lessee secures a privilege or option which he may or may not exercise at his will, a different rule should apply. Under the construction placed upon these provisions by the lessee, he may tie up the property of the lessor so as to prevent exploration for one year for the consideration of one dollar paid at the time the lease was executed, and at the end of that time surrender his lease and subject the lessor to the expense of litigation in an effort to collect the $40. The obligation in the case of an ordinary tenant is to pay for use and occupation. Under this agreement, the obligation was to pay for an option to do a certain thing if exercised within a limited time.
The rules of law applicable to ordinary tenancies do not here apply. Plaintiff’s right to an extension of time within which “to commence a well on said premises,” not having been exercised within the first six months, was conditional on its securing an extension of time to do so. It did not secure such an extension, and its rights became terminated when notified by the lessors that they would not accept the payment because not made within the time limited therefor. The authorities bearing upon the construction which should be placed upon the provisions in such leases are fully collected and discussed in J. J. Fagan & Co. v. Burns, supra. The views we have expressed find .support in Dill v. Fraze, 169 Ind. 53 (79 N. E. 971); in Maud Oil & Gas Co. v. Bodkin, 75 Okla. 6 (180 Pac. 959); in Thomas v. Standard Development Co., 70 Mont. 156 (224 Pac. 870); and in Epperson v. Helbron, 145 Ark. 566 (225 S. W. 345, 15 A. L. R. 597). The conclusion reached is not in harmony with several other decisions. See note to 15 A. L. R. p. 604. But, in our opinion, it is justified by the nature of the contract, the intent of the parties in the performance thereof, as evidenced by their acts, and by a consideration of its provisions as a whole.
The decree is affirmed, with costs to appellees.
North, C. J., and Fead, Wiest, Clark, McDonald, and Potter, JJ., concurred. The late Justice Fellows took no part in this decision. | [
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Sharpe, J.
(dissenting). The information in this case charged the defendant with having unlawfully had a quantity of intoxicating liquor in his possession in the county of Genesee on July 9, 1928. It also charged his conviction of felonies committed in said county on three former occasions. He was convicted after trial, and here seeks review by writ of error.
There is little dispute about the facts. Three of the officers of the county visited defendant’s home after 1 o’clock in the afternoon of the day charged, in response to information received that “they were having a rough party at his home south of the Bristol road.” When they arrived, “there was a lot of noise coming out of the house, swearing, laughing.” As one of them went toward the front of the house, he saw a gallon jug'thrown out of the window. It was not broken in the fall, and, on examination, was found to contain a considerable quantity of moonshine whisky. Defendant, his wife, his sister-in-law, and several men were in the house. All of them, except perhaps the defendant, were more or less intoxicated. He was arrested, and his trial and conviction followed. The errors relied upon will now be considered.
1. It is urged that defendant’s constitutional, rights were invaded by the entry of the officers upon his premises and the arrest which followed. A petition to suppress the evidence taken on the examination for this reason was filed. It was unsupported. The examination does not appear in the record. Neither does it appear that it was passed upon by the trial court. Error may not be predicated upon a claimed denial thereof. The jug containing the liquor was thrown from the room in which the defendant was before the officers entered the house. By this act they were apprised that the law was being violated by some person therein.
2. Defendant’s Control of his Home. Defendant testified that he had been at work that morning and returned to his home about 11 o’clock; that the persons above named were then there and he saw the jug containing the liquor and knew that they had been drinking; that there was loud talking; that he threw the jug out of the window when the officers arrived; that, while the others continued to drink, he did not drink any himself; that “liquor was offered to everybody,” and was served by his wife; that he threw the jug out of the window to get rid of it, and tried to break it; that his wife “said it belonged to her, that she was running* the place.” The instructions of the court as to defendant’s liability in this respect were in line with the law as stated in People v. Sybisloo, 216 Mich. 1 (19 A. L. R. 133).
3. Instructions to the Jury. It is urged that the instructions “amounted to a directed verdict of guilty” under the rule relating thereto, as announced in People v. Lintz, 244 Mich. 603. We have read the charge with care, and cannot so conclude. While the trial court referred to the testimony of the defendant and other .witnesses, he made it clear to the jury that it was for them to decide upon the guilt or innocence of the defendant. He said:
“If there is any question in your minds about his guilt in this matter, if there is any reasonable doubt of his guilt, it is your duty to acquit him.”
The defendant had a fair trial. No reversible error appearing, the judgment should be affirmed.
Wiest, J.
I find reversible error in this record. Defendant was convicted of having intoxicating liquor in his possession, at his home, on the 9th day of July, 1928. His defense was that he came home from his work just before the noon hour and found his wife, sister, and three men there engaged in drinking intoxicating liquor; that he objected, and finally threw a jug, containing whisky, out of the window.
Under instruction given ■ by the court the jury could do no less than find defendant guilty, and this was done with the recommendation of mercy. Defendant was sentenced to prison for life. If defendant’s testimony was true, he did all he could, by way of expostulation, to get the liquor out of his home. I do not think he should be held guilty of possessing the liquor if he endeavored to have it removed from his home. He was not under obligation to enter into a knock-down-and-drag-out fight with his wife, sister, or the three men, else be held to have possession of the very thing he was trying to avoid.
I think the court was in error in instructing the jury as follows:
“I will say to you that if from the facts you determine that that liquor was in his possession or in his home with his knowledge at that time, and it was there a sufficient length of time that after he discovered it was there he permitted it to stay there, no matter how long, during that time he was in possession of it, and that is a violation of the law, if you find that to be a fact. Now, that is the law that you have agreed to take from the court as the law in this case. In determining this fact, as to whether or not he had it in his possession any length of time, or that he had it in his possession any length of time so that he should be presumed to have knowledge, you will take into consideration the testimony itself, take his own testimony, and all the testimony. If you take the story of the respondent himself, that he arrived in his home between 10 o’clock and 11 o’clock that forenoon and that when he arrived there he knew that the liquor was there in his home and that he remained in his home until 20 minutes or half an hour later when he went away, he left that liquor there in his own home without destroying it,, went after this ice, and left his wife and her sister, Mrs. Teiderman, and these three men there with that liquor, and if you find he did that knowingly, find that beyond a reasonable doubt from the evidence in the case, then I say to you that the people have established the fact that he knew and had knowledge that that liquor was there and had knowledge at that time that it was in his possession, and I charge you that the respondent will be presumed to have knowledge that that liquor was there during that time and that he had possession of it during that time.”
If defendant, when he returned from his work to his home found his wife, sister, and the three men drinking' intoxicating liquor and protested, and then went a short distance to get some ice for. his wife who was a sufferer from asthma, and,- upon his return, again protested and endeavored to have the liquor removed, and both protestations and endeavors were within the compass of about a half hour, then he was not guilty qf possessing the intoxicating liquor.
The rule given the jury by the court rendered the defendant guilty, even though he endeavored to have the liquor removed from his home and did what he could to avert any possessory right thereover. He was not bound to take the liquor from his wife and others and immediately destroy it or be held guilty of its possession.
Defendant’s testimony raised an issue of fact for the jury, and the instruction mentioned did not give the law applicable to such an issue.
The instruction given finds no support in People v. Sybisloo, 216 Mich. 1 (19 A. L. R. 133).
The point I have discussed is raised by defendant’s sixth assignment of error.
The judgment should be reversed, a new trial granted, and defendant remanded to the custody of the sheriff of Genesee county to await trial.
North, C. J., and Fead, Clark, McDonald, and Potter, JJ., concurred with Wiest, J. The late Justice Fellows took no part in this decision. | [
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North, C. J.
In May, 1919, the plaintiff sold on a land contract to the defendant Kamondy real estate in-the city of Detroit. The monthly payments were made promptly until August, 1924, at which time there remained unpaid on the contract $1,425. Kamondy had stock of the par value of $1,000 in the defendant packing company. He had paid $1,000 for this stock. Each of these men claims that the other took the initiative in urging an arrangement which was consummated between them whereby in satisfaction of the $1,425 unpaid on the land contract, Kamondy transferred his stock to Motzkus* at an agreed value of $1,250 and also paid $175 in cash. Motzkus thereupon deeded the real property to Kamondy in performance of the land contract. The plaintiff held this stock upwards of two years without making any complaint and in the meantime accepted the 1925 dividends, amounting to' $50, and those of 1926 amounting to $60. It appears at this time the corporation became somewhat less prosperous than it had theretofore been. In September, 1926, plaintiff filed this bill of complaint, wherein he alleges he was induced to thus purchase this stock from Kamondy by the fraudulent representations of Kamondy and the defendant Grünsberg as to its value and also their false representation that “the stock certificate would be retired by the company, and the sum of $1,250 or more paid to your petitioner therefor, within two years.” On these grounds plaintiff seeks cancellation of his deed to the defendant Kamondy and his wife and other relief. At the conclusion of plaintiff’s proofs, on motions made by the respective defendants, the circuit judge authorized a decree dismissing the bill of complaint. Plaintiff has appealed.
The circuit judge did not set forth in the record his reasons for dismissing the bill; but upon a careful • reading of the record and consideration of the briefs filed we are satisfied that he was amply justified in so doing. We will not cumber this opinion with the details of the record. Suffice it to say that no theory is advanced under which the defendant corporation could possibly be.held liable. It had absolutely nothing to do with the transaction excepting to transfer the stock on its records. There is no showing that its president, the defendant Louis Gunsberg, was in any way authorized to represent the corporation in this transaction, or that it had the slightest interest in the deal, or that it directly or indirectly profited thereby.
As to the fraud charged against the defendants, the burden of proof was upon the plaintiff. The circuit judge, who saw the witnesses, evidently concluded that the plaintiff had failed to establish actionable fraud, and in this conclusion we concur. The plaintiff seenis to have been entirely content with the transaction for more than two years, during the first of which he received a 5 per cent, dividend, and a 6 per cent, dividend during the second year. We are not impressed with his claim that he was induced to consummate this transaction by the alleged false representations. The defendant Gunsberg is not shown to have benefited in any manner by the transfer of Kamondy’s stock to Motzkus. No reason appears why Gunsberg should have aided Kamondy in defrauding the plaintiff. Actionable fraud is not established by the record. J. B. Colt Co. v. Cousino, 226 Mich. 518. The bill of complaint was properly dismissed, and the decree is affirmed, with costs to the appellees.
Fead, Wiest, Clark, McDonald, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision. | [
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Butzel, J.
J. L. Puller Company, a Michigan corporation, sold to Max Greenberg, a plumbing con tractor, equipment installed by him in property belonging to Harry J. Pelavin. All three parties met subsequently and the amount due was agreed upon, and on October 24, 1924, Puller Company accepted in part payment a 30-day note for $1,583.70, signed by Pelavin, and indorsed by Greenberg. The note was not paid. Plaintiff, Hart & Crouse Company, a New York corporation, claiming to be a holder in due course, brought suit against Pelavin, the maker, Fuller, the payee, and Greenberg, the indorser. On motion for summary judgment, John L. Puller filed an affidavit stating that he was president of the Puller company, which represented the plaintiff and sold its products; that the note had been duly indorsed to plaintiff, placed with the bank for collection, and that on the, 24th day of November, or very shortly thereafter, the Puller company received notice from the bank that the note had not been paid and had been regularly protested; that on November 29, 1924, affiant had written on behalf of plaintiff to Greenberg, at 8416 Linwood avenue, Detroit, notifying him that the note was unpaid and had been protested; that Greenberg told him shortly afterwards that he knew that the note had not been paid and had been protested; that the note had been given in payment of the amount due to the Puller company from Greenberg for equipment that went into the construction of the building owned by Pelavin. Defendant Greenberg, who appeals from the summary judgment rendered in plaintiff’s favor, filed an affidavit of merits, showing that he received no notice of protest nor any letter whatsoever notifying him of the nonpayment of the note; that his address is 8424 Linwood avenue, and not 8416 Linwood avenue; that he did not learn of the nonpayment of the note until 1925, when he ascertained that Pelavin had. given a quitclaim deed of property in Detroit as security to the payee of the note; that affiant had been a plumbing contractor in Detroit for many years, but the notice of protest which was introduced showed that it had been addressed to him at Utica, New York, where he never resided or had a place of business; that the note had been accepted by the payee in payment of materials that went into Pelavin’s property and affiant had become an ordinary indorser, only assuming an indorser’s liability, and without relinquishing the statutory presentment or notice of dishonor.
The notice of protest shows that the note-was not presented for payment until November 25, 1924, one day after maturity, and that no notice of dishonor was sent to Greenberg at his known address. Presentment for payment is necessary in order to charge an indorser. 2 Comp. Laws 1929, § 9319. It must be made on the date the note falls due. 2 Comp. Laws 1929, § 9320. The certificate of protest shows that it was not presented on the day the note fell due. Plaintiff attempts to excuse proper presentment by claiming that under 2 Comp. Laws 1929, § 9329, it is not required in order to charge an indorser where the instrument was made or accepted for his accommodation, and he has no reason to expect that the instrument will be paid if presented. The affidavits show that the note was not presented on the due date and the appellant did not receive prompt notice of dishonor.
A question of fact is raised, whether proper notice of dishonor and presentment were not necessary in order to charge defendant. He claims that there was a complete novation of the debt, and that the instrument was not made or accepted for his accom modation, and therefore, notice of dishonor was not dispensed with under 2 Comp. Laws 1929, § 9364. Even if this were not true, there is no showing whatsoever that he had any reason to expect that the instrument would not be paid if presented, and therefore presentment not required under 2 Comp. Laws 1929, § 9329. Questions of fact thus arise, .and .a summary judgment should not have been rendered. The judgment is reversed, with costs to defendant, and the case remanded for trial on the merits.
Clark, C. J., and McDonald, Potter, Sharpe, North, Pead, and Wiest, JJ., concurred. | [
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Fead, J.
For some years plaintiff and his family lived near Lydia Smith at Ludington and rendered her many neighborly services. .-Plaintiff claims that in 1919 he contemplated moving to Detroit, and that, in consideration of his remaining at Ludington, Miss Smith contracted to leave him at her death sufficient money to produce $3,000 per year interest. His claim on the contract was allowed against her estate in probate court at $60,000, and the executors appealed.
In circuit court, plaintiff moved for summary judgment upon affidavits of his wife and cousin. Defendants, filed affidavit of merits provided by statute, but. did not deny the contract upon oath of a competent witness as required by Court Rule No. 30. With some doubt of the application of the statute, the court ordered summary judgment (3 Comp. Laws 1929, § 14260 et seq.).
We think summary judgment improper in this kind of proceeding. The statute ’ and rule’; must be read in connection with the general law. ' The remedy was not intended "to apply* to: a case where, by reason of the death of the real defendant, his representatives are prevented from' rnaking the required showing and his estate would be deprived of defense upon the merits.- Claims against the estates of deceased persons must he-proved by the claimants, and judicially found. They cannot be established -by concession-of the decedent’s representatives. Much less can they be held proved through inability of the representatives to discover ■ competent witnesses to specifically deny the claim.- Frequently the only defense the representatives can' make is through weakness of the claim,1-developed on- cross-examination and by attack upon the credibility of claimant and-his witnesses.- No such defense is open on motion for summary - judgment. Neither the statute nor the rule was designed to operate as a practical repeal of the probate law requiring affirmative proof of claims against thé estátes of decedents.
In Hampton v. Van Nest’s Estate, 196 Mich. 404, 413, the rule requiring denial on oath of execution of a promissory note was invoked against an estate. The court said: -
“We doubt if it is applicable to cases appealed from the probate court. We think the burden was upon the claimant all the time to make his case and prove the execution of the instruments claimed to have been executed by the deceased.”
Nor do we think-plaintiff-made a case for summary judgment. The narrations by affiants of the conversation in which the contract was claimed to have been made were not identical. Neither deposed to an express agreement with definite terms. The contract now claimed was' not stated except upon conclusion andinferénce óf plaintiff’s wife. To find it established would require not only -the determination as á fact of which account of the conversation was "correct, but also the' balancing of extraneous facts and inference's in connection with such determination. This is the province of the court or jury on the trial, hut is not permissible on motion for summary judgment. Insufficiencies in the affidavit of merits are unimportant because plaintiff’s own showing disclosed issues of fact. Baxter v. Szucs, 248 Mich. 672.
We agree with counsel for plaintiff that the record contains a considerable amount of unnecessary printing. We estimate the excess at about one-fourth, for which defendants will not be entitled to charge.
Judgment reversed, with costs except as above, and cause remanded for trial on the merits.
Clark,' C. J., and McDonald, Potter, Sharpe, North, Wiest, and Butzel, JJ., concurred. • | [
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Potter, J.
(dissenting). Plaintiffs sued defendant on an insurance policy issued by it to plaintiffs in the amount of $3,500 insuring plaintiffs’ house-' hold goods, including jewelry, against all direct loss and damage by fire. During the time the policy was in force, plaintiffs’ household servant picked up an envelope containing two rings from a desk in plaintiffs ’ house, and, not realizing’ the envelope contained rings, put it in a waste paper basket and later put the contents of the waste paper basket including the rings, in the furnace, where, when a fire was built, they were seriously damaged. There was judgment directed for defendant and plaintiffs appeal. Plaintiffs claim defendant is liable under the terms of the policy. Defendant denies liability on the ground the policy does not cover loss or damage occasioned as was plaintiffs’. A contract of insurance is one of indemnity against loss by fire. Brady v. The Northwestern Ins. Co., 11 Mich. 425.
“The fair and reasonable interpretation of a policy of insurance against loss by fire, will include within the obligation of the insurer, every loss which necessarily follows from the occurrence of the fire, to the amount of the actual injury to the subject of the risk, whenever that injury arises directly and immediately from the peril, or necessarily from incidental and surrounding circumstances, the operation and influence of which could not he avoided.” Brady v. The Northwestern Ins. Co., supra.
Courts cannot remake the contract between the parties. Insurance policies, whether regarded as restrictions and conditions imposed upon insurance companies in doing business, or as contracts between the insured and the insurer, are construed most favorably to the insured, because such contracts are usually framed by the insurer and the insured is compelled to accept the policy offered in order to procure insurance at all. Ordinarily, the insurer is held liable for loss or damage by fire even though plaintiffs ’ negligence or the negligence of plaintiffs ’ servants was the proximate cause of the damage by fire.
“If a loss by fire is occasioned by the mere fault, carelessness, or negligence of assured or his servants or agents, such negligence, carelessness or want of due care is no defense, unless there is fraud or design or gross negligence or misconduct of such a kind and degree as to clearly evidence a corrupt design or fraudulent purpose on the part of the assured, or someone acting with his privity or consent.” Joyne on Insurance, § 2840, and cases cited.
There is no claim of corrupt conduct, fraudulent design, or wilful intent to wrongfully collect upon the policy on the part of plaintiffs. The loss involved was occasioned by direct action of the fire. It was not like the scorched sugar case of Austin v. Drewe, 6 Taunt. 436 (128 Eng. Repr. 1104), where there was no ignition of the sugar. That case is analogous to seeking to hold an insurance company liable for damage to beans burned while baking in an oven, and has no application to the facts here involved. If the rings in question had been placed on a mantel over an open grate in which there was a fire and had been blown into tbe grate by a gust of wind or had fallen into the open fire and been injured, the New York court indicates it might be a close question whether recovery could be had for the loss. Weiner v. St. Paul Fire Ins. Co., 124 Misc. Rep. 153 (207 N. Y. Supp. 279). In Countess FitzJames v. The Union Fire Ins. Co., 23 Irish Law Times & Solicitors’ Jl, p. 168, the Countess FitzJames insured against fire in the above company all her furniture and effects, among which were mentioned jewelry and especially a pair of earrings composed of pearls valued at 18,000 francs. During the time the policy was in force one of those earrings which had been placed on the mantel piece was accidently knocked down and fell into the fire, where it was consumed, notwithstanding every effort made to save the jewel. The insurance company refused to pay for the burnt pearl on the ground there was no conflagration; that the fire which consumed the object was an ordinary fire; that there was no fire, and that the company was not responsible where combustion had only occurred in the ordinary use of a grate for heating purposes. The court, however, rejected this, and ruled that the word “fire” in matters of assurance applied to every accident however unimportant such accident may be, so long as it is caused by the action of fire. It was therefore ordered that the Union Company should pay to the Countess Fitz-James the value of the jewel, less that of the gold recovered.
The policy of. defendant issued to plaintiffs is general in its terms: It contains no limitations and exceptions applicable to the facts herein. It insures plaintiffs’ jewelry without exception against all direct loss and damage by fire. There being no limita-. tions or exceptions in the language of the policy, we can make none. The loss falls directly within the language of the policy. If the defendant would escape liability it should by appropriate language exclude such liability by the terms of its contract. We think plaintiffs entitled to recover. Judgment should be reversed, with costs. New trial ordered.
North, J., concurred with Potter, J.
Butzel, J. A loss of articles placed, either inadvertently or purposely, in a friendly fire, is not compensable under a policy against loss by fire, and it was unnecessary to word a policy so as to cover such contingency.
In Reliance Insurance Co. v. Naman, 118 Tex. 21 (6 S. W. [2d] 743), recovery was denied for a loss of jewelry, placed for safe-keeping in a paper hat box, which was inadvertently thrown into the furnace. The court stated:
“A friendly fire is not within the undertaking of the insurance company at all. If it were, the company would be liable, as in a case of unfriendly fire, for all direct loss or damage irrespective of destruction or of actual ignition and the fact that in this case there was an actual consumption of the insured property is of no importance in determining the liability of the insurance company. * * * In the sense in which the word ‘fire’ is used in the policy, there has been no fire so long as it is kept within the proper and accustomed place. In common parlance, one has not had ‘a fire’so long as it has only burned in the place where it was intended to burn, and the sense in which that word is used in common parlance accurately indicates the sense in which it is employed in a fire insurance policy.”
In Weiner v. Insurance Co., 124 Misc. Rep. 153 (207 N. Y. Supp. 279), (affirmed, without opinion, in 214 App. Div. 784 [210 N. Y. Supp. 935]), recovery was denied for loss of jewelry placed in a stove for safe keeping, and injured therein by fire inadvertently started.
The judgment of the lower court is affirmed, with costs.
Clark, C. J., and McDonald, Sharpe, Fead, and Wiest, JJ., concurred with Btjtzel, J. | [
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Butzel, J.
Margaret Hogan, plaintiff, required a mortgage loan of $22,000 on approximately 10 acres of valuable land at the corner of Yan Dyke avenue and the Outer Drive, as extended, in Detroit. Her cousin, Robert Dalton, an attorney, offered the loan to Frank J. Hester, also an attorney. The latter represented himself as the loan agent of his mother, Frances Hester, and his sister, Bernadine Christa, but his exact business arrangements with them are not fully disclosed by the record. Although they are also defendants in the instant case, they did not appear as witnesses. Sheets from Hester’s books indicate that he kept an account with each of them. He banked their moneys with his own, issued his own personal checks for loans made in their names, handled the loans as if his own, evidently never charged them for his services, and took and kept large bonuses or commissions apparently with their express or implied knowledge and consent. He stated that his method of acting as agent for his mother and his sister and loaning their funds to borrowers whom he sought was to take put whatever he thought proper for his commissions, and turn the balance over to the borrowers. He admitted that his mother must have- known that he was making money in this manner. He conducted all of the negotiations in making the loans in the present litigation, advanced part of his own funds to make them, and not only took a large bonus, but exacted an additional 10 per cent, for himself for each 12 months or fraction thereof that might intervene between the dates of the maturity of the loan and the time of its subsequent payment. He seems to have had continuous and full charge of the entire transaction from its inception, and even after attempted foreclosure, a corporation that he dominated and in which he, his wife, and his secretary owned all of the stock claimed title to the property. In order to obtain the loan of $22,000 plaintiff executed two mortgages of $12,500 each on November 19, 1926, one running to Mrs. Hester and the other to Mrs. Christa, and each payable within a year. They were regarded as having been simultaneously, executed. The $3,000 difference between the aggregate of the loans and the $22,000 was kept by Hester as a commission. He also deducted further amounts for mortgage taxes and recording fees. He paid $500 of the commission to Dalton for bringing him the business. Dalton claims that plaintiff knew he received this fee. The mother and sister were each charged with $12,500 on Hester’s books. Debit balances of over $4,900 against the mother and of over $6,700 against the sister were created on Hester’s books, so that it would appear that he furnished a large part of the money himself, but it whs repaid to him shortly thereafter.
Payments of neither principal nor interest were made by plaintiff on the mortgages. She claims that this was dne to the fact that she conld not secure releases of lots that she was able to sell and through the proceeds of which sales she expected to make payments. Foreclosure proceedings by advertisement of each mortgage were simultaneously instituted, and- the entire property was bid in on the same day, once in the name of the mother, and again in the name of the sister, each time for $12,500, plus interest, etc. There was no designation as to who bought the property first, nor was there any way of indicating to a prospective bidder under which sale he would get title, or, if he bought at one sale, what the effect of the other one would be. During the year of redemption, plaintiff made unsuccessful attempts to refinance. She claims that Hester encouraged her to believe that he would make her a new loan, and discouraged her from dealing with others. As the expiration of the time to redeem approached, plaintiff asserted that the foreclosure proceedings were void because the advertisements showed an amount due far in excess of what she legally owed, and because the foreclosure proceedings should have been brought in equity and not by advertisement, so that prospective bidders would know what interest they were getting at the sale.
Condemnation proceedings for street opening purposes had been begun and an award of approximately $12,741.96 was made for two acres or thereabouts. Plaintiff was dissatisfied with the award, and took steps to appeal.
Shortly prior to the expiration of the time to redeem,- plaintiff with her attorney met Hester, who was an officer of the Hester Investment Company, a corporation with a capital of $50,000, of which Hester owned over $47,000 worth of stock, his wife $2,000, and his secretary the remaining shares. There seems little doubt but that Hester was in full control of the Hester Investment Company, which had full knowledge of plaintiff’s rights and claims. In accordance with an agreement made by plaintiff and her attorney with Hester representing the Hester Investment Company, plaintiff gave the latter a quitclaim deed of the premises, and the Hester Investment Company, though not yet the owner of the property, gave her a 60-day option to repurchase the property for the amounts bid at the foreclosure sale, plus interest from that date, and in addition thereto the extra 10 per cent, per year from the date the mortgage became due until the end of the 60-day option period, in accordance with the contemporaneous agreement plaintiff had made with Hester. The agreement further stated that in the event plaintiff should avail herself of the option, she would be entitled to a quitclaim deed of the premises, and an assignment of the condemnation award. In order to determine the amounts paid by her, a memorandum of charges was drawn up, reading as follows :
“Amount of bids $27,541.86. Interest on same May 15, 1928, to July 25, 1929, $2,302.79'. Renewal on $25,000, November 19, 1927, to July 25, 1929, $2,104.95. Total $31,951.60.”
Plaintiff claims that she thought that the option agreement operated as a renewal of the mortgages from the date of the foreclosures, and that she could not be divested of her rights in the property without foreclosure. Dalton claims he permitted plaintiff to give a deed and enter into the option agreement because the legal effect would be to re-establish plaintiff’s rights as mortgagor. After the option expired, quitclaims for the property to the Hester Investment Company from the mother and sister were recorded. The one from the mother is dated subsequently to the time the option expired. After the option period expired, Hester Investment Company also sold the property on executory contract to Hafeli Brothers, a Michigan corporation, -for $40,000, with a down payment of $5,000. It also collected $12,741.96 from the condemnation award. Plaintiff, having failed to avail herself of the option within the 60 days, brought the instant suit against Hester Investment Company, Frank J. Hester, Frances Hester, Bernadine Christa, Hafeli Brothers, a Michigan corporation, Joseph Hafeli, Raymond Hafeli, and Carl Paulson. The latter took a deed from Frances Hester but quitclaimed the same to the Hester Investment Company, and disclaims all interest in the property. The interests of Joseph Hafeli and Raymond Hafeli may be considered with those of. Hafeli Brothers, a corporation.
Plaintiff seeks to have the mortgages declared usurious, the foreclosure proceedings set aside, and, in order to redeem, a determination of the correct amount still due on the mortgages after the application of the condemnation award received by the Hester Investment Company and the proper deductions made on account of the usurious amounts exacted from her. She also seeks to have the Hafeli Brothers’ contract set aside. We believe that the case is very similar to and controlled by Freedman v. Katz, 246 Mich. 297, 298, where Mr. Justice Fead, speaking for the court, said:
“The relationship between Alpert and Mrs. Katz contained possibilities of a bona fide brokerage connection, an agency, or a subterfuge. The oral tes timony of defendants that the transaction was a brokerage was seriously impeached by the fact that, if true, they could have proved it by the written evidence of their correspondence, submitting and accepting the loan, and production of Mrs. Katz’s check, forwarding the money to Alpert, and they failed to do so. * * * Alpert spoke with authority in making and handling the loan, passed upon the security and title, drafted and recorded the mortgage, gave his personal check to the mortgagor, made demand for payment, offered to renew for a year on payment of another $450, conducted the foreclosure proceedings, signed Mrs. Katz’s answer in this suit as her attorney in fact, and had been making loans for her. The testimony fairly preponderates that if Alpert was not the real lender, he was general loan agent for his sister and had her money on hand to loan. Matteson v. Blackmer, 46 Mich. 393.
“The great weight of authority is that a loan is not rendered usurious by the lender’s agent charging the borrower, for his own benefit, a commission or bonus for procuring the loan, in excess of the maximum legal rate of interest, where such charge is made without the lender’s knowledge or consent, either expressed or implied, and is not ratified or shared by him. 21 A. L. R. 841, note. However, such knowledge and consent may he implied from circumstances. While not conclusive, circumstances held to he of weight, both of which are present at bar, are blood relationship between the lender and agent (Franzen v. Hammond, 136 Wis. 239 [116 N. W. 169, 19 L. R. A. (N. S.) 399, 128 Am. St. Rep. 1079]; Rogers v. Buckingham, 33 Conn. 81); and the fact that the lender paid the agent no compensation for his services (21 A. L. R. 860).”
See, also, Umphreg v. Auger, 208 Mich. 276.
We believe the foreclosure sales were so irregular that they must he set aside. There was no way that
a prospective purchaser could determine what, if any, title he would receive by bidding at either sale. As was stated in Grover v. Fox, 36 Mich. 461:
"Parties are entitled to have the papers on file (foreclosure proceedings) of themselves identify the sale and convey distinct information, without the aid of extrinsic inquiries, as to the time and manner of the sale and the price or prices bid.” (Syllabus.)
In Van Aken v. Gleason, 34 Mich. 477, we held:
"A foreclosure by advertisement of one of two mortgages of even date, and designed to be simultaneous, would not be effectual to settle the relative rights.of the foreclosure purchaser and the holder of the other mortgage; and a bill in equity would be necessary to determine such rights and to marshal the assets;, and to do this a sale is necessary unless one of the parties shall take up the other’s mortgage.” (Syllabus.)
There must be reasonable certainty in a foreclosure by advertisement so that there will be no confusion on the part of the prospective purchasers, and so that when they bid, they may know, with the exercise of ordinary intelligence, what property is offered. Welch v. Byerly, 150 Md. 107, 112 (132 Atl. 616); Nichols v. Nichols, 192 Ala. 206 (68 South. 186); Clark v. Duvall, 61 Colo. 76 (156 Pac. 144); Schoch v. Birdsall, 48 Minn. 441 (51 N. W. 382).
The foreclosure advertisement called for excessive amounts. While it is true, as defendants contend, that the defense of usury may be waived, we do not believe that there was such a waiver in the present case. There is much force in plaintiff’s claim that the giving of the deed with the option back was considered a renewal of the loan, as designated by Hester in the memorandum of charges. We believe there was no real consideration for the deed. Usury may be paid or waived, but giving the mortgagor 60 days in which to redeem from a void foreclosure upon her paying not only the original usurious charges, but also additional ones, does not appeal to a-court of equity as a sufficient consideration for a waiver. As was stated in Gardner v. Matteson, 38 Mich. 200, 204:
“The defense of usury is a personal one, and may be waived, and so may the party voluntarily pay usurious interest, and where he does so he will not be permitted to recover it back. To this extent the statute undoubtedly goes, but it never was intended that by substituting new paper, with usury added, for the old paper as the same became due, the question of usury could not thereafter be raised.”
Plaintiff is entitled to relief. She should be charged with the original $22,000 loan; she should also be charged with interest at the rate of 5 per cent, per annum from the time the loan was made up to and including the date of the decree. She has asked the aid of a court of equity and must be prepared to do equity. Stiglitz v. Weinstein, 227 Mich. 691; Dalton v. Weber, 203 Mich. 455; Vandervelde v. Wilson, 176 Mich. 185; People, ex rel. Attorney General, v. Detroit Mortgage Corp., 239 Mich. 495. She should be further charged with all taxes, assessments, or other legal charges upon the property that she should have paid and that were paid by the Hester Investment Company, Hester, or anyone else in her behalf. She should be credited with the amount collected for the condemnation award and with the $5,000, and any other moneys paid by Hafeli Bros., a corporation, to the Hester Investment Company on the executory contract to purchase the property; she should he credited with interest at the rate of 5 per cent, per annum from the time of such payments. The balance shall be the amount found due from plaintiff to Hester Investment Company and for which it shall have a first lien on. the property, but subject to the vendee’s rights under the Hafeli Brothers’ contract. Plaintiff shall pay such balance within 30 days from the time of entering the decree, together with interest from the date of entry of the decree, at the rate of 5 per cent, per annum. Upon her paying the amount, she shall be entitled to a deed to the premises and an assignment of the Hafeli Brothers’ contract, and the deed shall operate as a full discharge of both mortgages. The Hester Investment Company shall be deemed the equitable assignee of the two mortgages. Further foreclosure proceedings, if necessary, shall recognize the rights of Hafeli Brothers under the land contract and the purchaser under foreclosure sale shall be entitled to. an assignment of the vendor’s interest under such contract, provided that it is still in existence at the time of foreclosure sale. If it shall become necessary, a receiver may be applied for to protect the rights of the respective parties under the Hafeli Brothers’ contract. Plaintiff is guilty of such laches that she cannot complain of the contract with Hafeli Brothers, a corporation, which is found to be a bona fide contract purchaser. If parties cannot agree upon the amounts respectively due, the case will be remanded for an accounting. Plaintiff shall be entitled to the costs, but they shall be paid by crediting her with the amount thereof on the balance due on the mortgages. Plaintiff may have decree accordingly.
Clark, C. J., and McDonald, Potter, Sharpe, North, Fead, and Wiest, JJ., concurred. | [
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McDonald, J.
The defendant has appealed from a conviction on a charge of perjury based on his testimony before a grand jury sitting in the county of Oakland, Michigan. The jury was investigating as to the commission of crime in the letting of contracts by the school board in the township of Royal Oak. The defendant was called by subpoena to appear for questioning with reference to having solicited money for his influence with the school board in the awarding of certain contracts and as to receiving $300 from one Richard H. McG-eorge for his influence in securing a contract. Based on his answers to questions touching those matters, he was indicted by the jury for perjury.
On the trial, the prosecuting attorney offered in evidence the defendant’s testimony taken before the grand jury. Objection was made on the ground that when it was taken he -was not advised as to his constitutional privilege in regard to answering questions that might tend to incriminate him, and that he did not .waive the privilege by answering them. The court’s ruling in denying this objection presents the first question for our consideration.
The defendant attended the grand jury in obedience to a subpoena. He was not in custody and was not charged with any crime. He was just an ordinary witness. He was not compelled to testify, but was not advised that he could claim his constitutional privilege and refuse to give evidence that might tend to incriminate him. He answered all questions without objection and now claims his constitutional right was violated and that his testimony there taken cannot be used against him in this trial.
The statute, 3 Comp, Laws 1929, § 17233, permits the testimony of a witness taken before a grand jury to be used against him on his trial for perjury. In this case it was properly received, unless taken in violation of his constitutional privilege.
In his work on Evidence, p. 477, § 285, Justice Potteb says:
“The privilege against self-incrimination is a personal one and may be waived or asserted at the option of the witness. Where one is subpoenaed before a grand jury and testifies, he is held to have waived his privilege. ’ ’
The rule of the text is supported by Michigan authority and by current opinion in other jurisdictions.
In People v. Arnold, 40 Mich. 710, 713, this court said:
“No doubt the witness might have declined to answer under the acknowledged rule, that no one can be compelled to incriminate himself. But this is matter of personal privilege which a witness may waive, and is not a ground of objection by the people, and here the witness did not object, and we cannot assume but that he was not only willing, but desirous to answer.”
In People v. Lauder, 82 Mich. 109, 119, 121, it is said:
“A party may waive personal rights, although secured to him by law or by the Constitution. # *
“In all eases where a personal privilege exists for a witness to testify or not, if such witness does testify without objection he will be deemed to have done so voluntarily.”
In Underhill on Criminal Evidence (2d Ed.), p. 449, it is said:
“The right to refuse to answer incriminating questjons is personal to the witness. To preserve his right he must himself object. If he wishes to answer he may do so.”
State v. Duncan, 78 Vt. 364 (63 Atl. 225, 4 L. R. A. [N. S.] 1144, 112 Am. St. Rep. 922, 6 Ann. Cas. 602), approves the holding in People v. Lauder, supra, and says:
“But the privilege is an option of refusal, not a prohibition of inquiry. Hence, when an ordinary witness is on the stand, and a self-incriminating act relevant to the issue is desired to be shown by him, the question may be asked, and then it is for the witness to say whether he will answer it or claim his privilege, for it cannot be known beforehand which he will do.”
To summarize the pronouncements of the courts and text writers on the question of self-incriminating evidence, it appears to be well settled that, if a witness wishes the benefit of the privilege, he must claim it; that the privilege is personal and may be waived; that it is deemed to have.been waived when he fails to assert it; and that failure to warn him of his constitutional right is not a violation of the privilege.
These are general rules not applicable to all conditions and circumstances. They should not be applied where the witness is in custody accused of crime at the time the testimony is taken. Also it would seem that they ought not to be applied where the witness is brought before the jury for the sole purpose of securing evidence on which to indict him or where he is too ignorant to protect himself.
In the instant case there was no error in admitting the testimony of the defendant taken before the grand jury.
The second error alleged relates to the testimony of the witness Lottie Thibos, a member of the school board, whose name was not on the information, but who was called in rebuttal, and, over objection of the defendant, was permitted to testify that he offered to buy her a fur coat and give her $100 if she would vote favorably on the bid of a certain electric company to furnish electric fixtures for the school building. The information charged in part that defendant committed perjury in testifying before the grand jury “that he had never talked with any of the members of the school board of said school district concerning the awarding of any subcontracts pertaining to the construction or equipment of said high school.” The defendant demanded a bill of particulars in which he asked for the names of the members of the school board with whom he was alleged to have talked concerning the awarding of subcontracts. The prosecuting attorney responded with a bill of particulars in which it is alleged:
“It is the theory of the people that said respondent talked with one Frank J. Koukol, a member of the school board of School District No. 8 of Royal Oak township, Oakland county, Michigan. ’ ’
If Lottie Thibos’ name had been given in the bill of particulars as one of the members of the school board to whom the defendant had talked, her testimony would have belonged to the people’s case in chief and it would have been necessary to indorse her name on the information. As it was not indorsed and was not mentioned in the bill of particulars, the defendant had no reason to expect that she would be produced as a witness against him. It is apparent that the prosecuting attorney did not know of Mrs. Thibos when he filed the bill of particulars and indorsed the names of other witnesses on the information. But he learned about her during* the trial. She was taken before the grand jury and there gave her testimony. It then became his duty to apply at once to the court for leave to amend his bill of particulars and to add her name to the information. Instead of taking that course, she was withheld until after the defendant had given his testimony and his case was practically closed. She was then offered, to the defendant’s surprise, as a witness for the alleged purpose of impeachment. No request to the court was made to add her name to the information and no excuse appears in the record or in the people’s brief for not having done so as soon as her testimony was discovered. In the language of Justice Campbell, “this was an unfair suppression, in contravention of law.” (People v. Hall, 48 Mich. 482, 488 [42 Am. Rep. 477]). It was said in People v. Quick, 58 Mich. 321:
“We have held on several occasions that the defendant has a right' to know in advance of the trial what witnesses are to be produced against him, so far as then known, and to have any new witnesses indorsed on the information as soon as discovered.”
This right of a defendant in a criminal case to know in advance what witnesses are to be produced against him is a substantial right, not a mere formality. People v. Hall, supra.
So strictly has the court upheld this right that in People v. Moran, 48 Mich. 639, a conviction for burglary was set aside because the prosecuting attorney, during the trial, indorsed the names of additional witnesses on the information without first having obtained leave of the court. Arid as recently as 1928 this court said in People v. Tamosaitis, 244 Mich. 258:
“The right of the defendant to know the witnesses to be called against him is a substantial one, and the statutory requirement should be faithfully observed by the prosecuting attorney.” ■
.Mrs. Thibos’ testimony was in ¡.support of the charge in the information that defendant committed perjury when he testified before the grand jury that he had not talked with any member of the school board concerning the awarding of subcontracts. It was the only testimony on that element of the people’s case. It was known to the prosecutor before he rested his case in chief. He kept still about it until he had reached a point in the trial when it could be used most advantageously against the defendant. In view of the circumstances, the admission of the testimony was error for which the judgment of conviction must be reversed.
Because the conviction is reversed on other grounds, it becomes unnecessary to discuss the third alleged error, which relates to the prolonged cross-examination of the defendant on the subject of changing his name. However, it might be said in passing, without going into details, that in our judgment the cross-examination was improper and the repeated reference to the defendant as “Mr. Goldsmith or Mr. Coppersmith” should not have been permitted by the court. The judgment of conviction is reversed, and a new trial granted.
Clark, C. J., and Potter, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. | [
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Fead, J.
This is a bill to pursue a trust fund. In November, 1904, Mary Sandell conveyed all her property, recited as worth over $20,000, to her only child, William F. Sandell, in trust. In general, the trust instrument provided that the mother have all the net income during her lifetime; that if William’s wife, Martha, survived her, William and Martha should have the income and so much of the principal as was needed for their use, for life; and, on the death of both Mary and Martha, the whole estate—
“shall immediately vest and become the sole and absolute property of the said William F. Sandell, and his assigns, for his personal use and support during his life, with full right to dispose of any or the entire estate, both real and personal, .should he so desire for his support and use.”
The instrument made substantially .a like provision for Martha in case she survived the others. It also provided for devolution upon the nieces and nephews of Martha and Mary.
“Should the parties hereto not use during their lives all of the estate all that remains after the death of all of them shall be divided as follows
It gave William full control of the property, required him to keep accounts, and provided that he—
“shall not be held responsible personally for any loss incurred by bad investment or otherwise except when wilful and deliberate misappropriation thereof.”
Martha died in 1911, Mary, in 1915, and William, at the age of 67, on March 1, 1927. At the time of William’s death the estate held 188 pieces of real estate, 13 mortgages, 64 land contracts, aggregating over $50,000, bonds of about'$13,000, and stocks of $25,000, thus requiring considerable office work to handle.
William was a private banker, but the bank failed in 1922 and a receiver was appointed. He was also interested in an insurance agency. ■ In 1924, der fendant Mrs. Houck was employed to manage the agency. She also did work for the bank receiver and for Mr. Sandell in connection with the trust estate. In 1925, the insurance agency was sold to Mrs. Houck and Nell G. Steele. Mr. Sandell continued to conduct his trust and private business in the same building, and Mrs. Houck did work for him.
In March, 1926, the Lapham building nearby was for sale. Sandell suggested that Mrs. Houck buy it and offered to furnish the money. The purchase was made, the title conveyed to Mrs. Houck by deed dated March 27th, and her ownership was noted in the local papers and well known. Out of trust funds, Sandell paid the purchase price of $3,750 and sums for repairs, which brought the total to $6,231.13.
April 26th, Mrs. Houck executed a quitclaim deed to Sandell as trustee, which she destroyed immediately after his death. Books of the estate contain a pencil memorandum of the deed, but the testimony does not show that it was ever delivered.
After the purchase, the insurance agency and Sandell’s affairs were moved to the Lapham building. Mrs. Houck continued to work for Sandell in his private and trust matters but without pay, pro vided him office room without cost, and paid the expenses of the building herself.
Her claim of agreement with Sandell, so far as it is supported by competent testimony, is that he was to pay her no salary for working for him, he was to have his office in the building during his lifetime without cost, and if he survived her he was to> take title to the property. The court found this agreement established by the testimony and we non-cur in the finding.
Sandell’s purpose in the transaction may be gathered from the fact that he had expressed confidence in Mrs. Houck, thought her competent to handle his business, and he desired more leisure for himself, with possibility of travel. ■ •
The right to follow trust funds diverted from the trust purpose needs citation of no authority. The question here is whether there was a diversion. Assuming that, on the death of his mother and wife, William Sandell did not become vested with an absolute title to the trust estate (Quartern v. Barton, 249 Mich. 474 [69 A. L. R. 820]), nevertheless the broad powers of disposition granted him are not to be narrowed by analogy to other trusts to defeat the will of the donor. Both from specific language and the general purpose of the trust, only one restriction was imposed on his power of disposition — that it be for his personal support and use. The power is not confined to procuring the necessaries of life, but covers also his comfort and rational pleasures. As long as connection between the disposition and his personal use appears and the transaction discloses such benefit or advantage to him that it may be said that, acting in good faith, he did and fairly could determine it was for his use, it is not for the court to measure, with fine calipers, either the character or proportion of benefit to ascertain whether he received full consideration for the funds. In substance, the inquiry is whether he committed a wilful and deliberate misappropriation of the estate.
The benefit to Sandell was in that he acquired a permanent place for the conduct of his business, made sure, for his lifetime, of the services of one whom he had found competent and trustworthy to managé his business, so that his labors were lightened and he had the leisure and opportunity to travel which he desired. All this was obtained through the money paid on the property and secured by the property itself. Normally, he had an expectancy of 10 years. The amount advanced was not so disproportionate to any fair.value which could be placed on the benefits as to warrant the conclusion that the advance was a mere gift, not for his use, and constituted a misappropriation of the estate. The transaction was for his use, comfort, and benefit, and it must be held as within the powers granted him.
Decree for defendant's affirmed, with costs.
Clark, C. J., and McDonald, Potter, Sharpe, North, Wiest, and Butzel, JJ., concurred. | [
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Butzel, J.
(dissenting). Julia Gilbert, plaintiff, beneficiary under an accident policy issued to Fred J. Stute, her brother, recovered a judgment on a directed verdict against the insurer, Federal Life Insurance Company, defendant. The policy was issued to Stute as a premium on a $2 subscription to the Michigan Farmer. The following clause of the policy is pertinent to the issue in the instant case:
“Part 3. Automobile and Specified Farm Machinery Accidents.
“(a) For loss of life, both hands or both feet, sight of both eyes or one hand and one foot, sight of one eye and one hand or sight of one eye and one foot resulting, exclusively of all other causes as a direct consequence of the wrecking or disablement of any vehicle, • operated by any private carrier or private person, in which the insured is riding, or resulting as a direct consequence of being thrown from such wrecked or disabled vehicle, the company will pay the sum of $2,000.00. * * *
“The word ‘vehicle,’ as used in this part, shall mean a wheeled conveyance, horse drawn or motor propelled, and no other. As to all persons engaged in farming, this part shall cover as vehicles all tractors, farm wagons, mowers, binders, sulky plows, sulky cultivators and other farm machinery which is designed to be ridden upon while in use.”
On September 4, 1930, while the policy was in force, Stute met with a fatal accident. Accompanied by Louis J. Gilbert, plaintiff’s husband, he drove a farm wagon equipped with a hayrack to a cornfield to collect a load of cornstalks and store them in Gilbert’s barn. There was a permanent standard firmly attached to the front end of the wagon. It was a part of the wagon and used as a binding pole or stanchion against which to pile the load. It consisted of two upright timbers, to which were at tached three crosspieces of the width of the wagon. After a light load, about four feet high, was piled on the wagon and against the standard, Stute drove the team with the wagon into Gilbert’s barn through the north doorway. The wagon came to a stop when it was brought to a position where the standard was flush with, and extended about two feet above, the floor of the loft or scaffold of the barn. This loft extended across the south end of .the barn. The wagon was thus brought as far as it could go, and the standard acted as a brake or block against the floor of the loft so as to prevent the wagon from being moved further forward. There was also a doorway on the south side of the barn, but only the north entrance could be used, because the loft at the south side would prevent a sufficient clearance for the standard. When the wagon came to a standstill, the reins of the horses were wound around the standard, and Gilbert went into the loft to pile up the cornstalks as they were thrown to him by Stute. The latter took a position on the wagon about four or five feet to the rear of the standard and faced the west. Immediately after pitching the first bundle of cornstalks to the loft, the team started forward, and in so doing broke the standard of the wagon to pieces, dashed out of the doorway a short distance and then halted. Stute was heard to exclaim “Whoa.” He was found doubled up and lying on his right side on the cement floor of the areaway. in the barn, about eight feet back from the scaffold. He had sustained injuries to the right side of his body and a fracture of the skull on the right side. He died five days later without regaining consciousness.
The testimony shows that the standard was part of the horsedrawn vehicle, and, therefore, there was a disablement of the vehicle within the terms of the policy. The recognized meaning of the word “disabled, ’ ’ as defined by the lexicographers, is to “ detract from the value of or impair.” He was riding in a farm vehicle when he was standing on the floor of the wagon, and it was being drawn by horses. He was thrown from a disabled vehicle, and the natural inference from the facts as presented is that the breaking of the standard permitted the wagon to go forward, and resulted in a sudden start that caused decedent’s fall. Defendant contends that plaintiff fell prior to the disablement of the wagon. Were it not for the fact that the standard of the wagon could not have been moved forward without breaking the standard, there would be force in its argument. In the case of Kimbrough v. National Protective Ins. Ass’n (Mo. App.), 35 S. W. (2d) 654, where plaintiff brought suit on an indemnity policy on account of injuries sustained as a result of an automobile collision, and the wording of the policy was somewhat similar to the hereinbefore quoted clause, the court said:
“Examining the words of this clause as they are written and giving them the meaning that would be attributed to them by one of ordinary understanding, we may reasonably say that the insured would be led to believe that he purchased indemnity against injury arising from an automobile collision while riding in a car, or during the time of an automobile collision, or when he was accidentally thrown from within the car at such time. * * * No one would anticipate being thrown from within an automobile after it is wrecked or disabled, ‘but would naturally anticipate that he might be so,thrown through the-means, or during the time, of any occurrence, such as a collision in which the car is wrecked or disabled. ’ ’
In Sant v. Continental Life Ins. Co., 49 Idaho, 691, 694 (291 Pac. 1072), insured had also a limited policy-issued to readers of newspapers. It contained an indemnity clause somewhat similar to part 3 of the policy in the instant case. He was riding on the rear of a platform of a horse-drawn grader, the blade of which struck a stone or rock and was bent thereby, and the side of the vehicle was also sprained. The court, in holding that the insured was “in” the grader as much as one could be, that it was disabled to some extent and was not wrecked, said:
“Though the evidence as to the accident was circumstantial, the conclusion that at the time of the accident the deceased was riding in a vehicle and was thrown therefrom is not a presumption on a presumption, but a legitimate deduction from such circumstantial evidence. Construing the provision of the policy under consideration most favorably to the insured, the evidence, there being no conflict therein whatever, clearly justified the court in instructing a verdict for the plaintiff on the basis that at the time of the accident, the grader was being used as a vehicle and the deceased was accidentally thrown from the same when it was disabled.”
In Inter-Southern Life Ins. Co. v. Bowyer, 90 Ind. App. 494 (169 N. E. 65), the insured was riding upon the tailgate of a parcel post delivery truck, when the chain of the tailgate broke and he was thrown to the ground and killed. Under a similarly worded policy, the court held that the truck was disabled, inasmuch as there was an impairment, notwithstanding the fact that the breaking down of the tailgate did not render the truck incapable of action or use. In Yoshie Maeda v. Sierra Nevada Life & Casualty Co., 109 Cal. App. 271 (292 Pac. 987), under a simi larly worded policy, defective brakes failed to prevent an automobile from sliding off a boat, with the result that the insured was drowned. The court stated:
“Adopting, as we are required to do, a liberal construction of the policy, our conclusion is that, at the time of the accident, there was a ‘disablement’ of the automobile due to the defective condition of the brakes, as this term is used in the policy before us.”
In Guaranty Trust Co. v. Continental Life Ins. Co., 159 Wash. 683 (294 Pac. 585), suit again was brought on a policy issued in conjunction with a magazine and containing a somewhat similar clause to part 3 of the policy in the instant case. The insured stood on the running board of an automobile and was thrown therefrom. The court, in holding the defendant liable under the policy, stated:
“Respondent also attaches some importance to the fact that, since Briscoe was riding on the running board and not inside of the truck, he was not within the terms of the policy. It could not be successfully contended that, had Briscoe been seated inside the truck, and when Campbell started to stop it to let him get out, had Briscoe then stepped out on the running board and immediately been thrown to the ground and killed, or so incapacitated that the truck instantly ran over him and killed him, he would not have been within the terms of the policy.
“We are not seriously impressed with so technical a contention. Again the principle should apply that, if two or more constructions can be placed upon a single word such as ‘in,’ that construction should be adopted most favorable to the insured. The word ‘in’ is ordinarily accepted and used as an equivalent to the word ‘on.’ 4 Words and Phrases (1st series), p. 3464.; Andrews v. State, 8 Ga. App. 700 (70 S. E. 111); Depue v. Travelers’ Ins. Co., 166 Fed. 183; Ætna Life Ins. Co. v. Davis, 112 C. C. A. 87 (191 Fed. 343); Wilmarth v. Pacific Mutual Life Ins. Co., 168 Cal. 536 (143 Pac. 780, Ann. Cas. 1915 B, 1120); Continental Life Ins. Co. v. Wilson, 36 Ga. App. 540 (137 S. E. 403).
“In the last-cited case, based upon a similar contract of insurance with the one at bar, the insured was thrown from a log cart on which he was riding, which struck a stump in the road, throwing him out and dislodging a log which fell upon him. The court held that the insured was ‘within’ the vehicle in the sense of the terms of the policy, reasonably construed.”
The policy was not worded so as to exclude liability under the facts and circumstances of the instant case. While some uncertainty may arise on account of its wording, its provisions are sufficiently broad so as to establish liability. It has been frequently held in this State that a contract of insurance prepared by an insurance company will be liberally construed in favor of insured. Lower v. Muskegon Heights Co-Op. Dairy Co., 251 Mich. 450; Patterson v. Miller, 249 Mich. 89; Birgbauer v. Ætna Casualty & Surety Co., 251 Mich. 614.
The judgment in favor of plaintiff should be affirmed, with costs.
Sharpe and Fead, JJ., concurred with Butzel, J.
Wiest, J. I do not think that the accident happened by reason of the wrecking or disablement of the wagon. Such a standard on a farm wagon serves a useful purpose in holding a load, but not in holding horses, even when the standard is against a scaffold above the driveway in a barn. The starting of the horses caused the deceased to fall from the wagon, and the breaking of the standard had nothing to do with the accident unless the standard, under the circumstances here disclosed, be considered a brake upon movement of the horses. There must exist causal connection between the wrecking or disablement of a wagon and the accident to come within the terms of the policy. Here was none, unless service be exacted of the standard never intended or even thought of by any farmer or user of such a device.
There is reversal of the judgment and no new trial.
Clark, C. J., and McDonald, Potter, and North, JJ., concurred with Wiest, J. | [
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Potter, J.
Plaintiff presented a claim for services against the estate of her sister, Margaret Storz, deceased, for $1,845. This claim was disallowed by commissioners on claims appointed by the probate court, an appeal taken to the circuit court, where the jury rendered a verdict for claimant for $1,042. Defendant made a motion for judgment non obstante veredicto, and judgment for defendant was rendered. A motion for a new trial was made and denied. Plaintiff appeals. The trial court, in rendering a judgment of no cause of action non obstante veredicto, rendered an opinion which so clearly states the facts and applicable rule of law that we adopt it as the opinion of the court.
“The facts in this case disclose that the claimant was the sister of the deceased against whose estate she has presented this claim. The claim is carefully itemized and embraces all Sundays, all the Mondays, and all the Tuesdays for a period of about two and a half years, beginning in October, 1922, and extending, with one break, until June, 1925.
“Thereafter there appears to be a charge for services in 1926.
“The deceased died September 26, 1930, and during the last three years of her life she seems to have been estranged from the claimant, and certain other sisters, and to have become increasingly fond of a niece. Practically the entire adult family of sisters gave some testimony in support of the plaintiff’s claim, including even the mother of the niece, who really is the adverse party in interest, because it was discovered after the death of Mrs. Storz that she had practically left all her property to the niece, to the exclusion of the adult sister.
“There was testimony indicating that Mrs. Storz was appreciative of what the plaintiff did for her. There was also testimony that various services in connection with the little store operated by Mrs. Storz were performed by the plaintiff. The strongest testimony with regard to the contract was given by Miss Smith, who herself was one of the sisters, and who had another claim of practically the same general nature as the claim in the suit at bar.
“Miss Smith testified as to what the deceased had said, ‘That is exactly what she said, “You girls won’t be sorry; I will see that you are taken care of.” ’
“There is other testimony given by Airs. Schrage, which was somewhat more explicit, but it does not appear that that statement of the deceased was made in the presence of the claimant, so it does not seem to the court to have a strictly contractual relation, though it might be of weight in deciding whether or not a contract existed.
“The court is of the opinion that the testimony of Miss Smith is not sufficient, under all the surrounding circumstances here, to give rise to a contractual right which a jury may pass upon. It seems to me that this is an expression of good will and family loyalty and gratitude, but that was not intended to be a promise to pay for services. Many things contribute to the court’s impression, notably, that no account was ever kept of the time spent or the services rendered by the plaintiff, two, that no mention of her claim was ever made by the claimant in the lifetime of the deceased, covering a period of some three years after the active services had ceased, three, that the size of the claim in and of itself would have constituted a great burden upon a store of such small magnitude as this. For all these reasons the court is constrained to grant the motion to the defendant and direct the entry of judgment non obstante veredicto.”
We are satisfied that the trial court arrived at a correct conclusion. The judgment of the trial court is affirmed, with costs.
Clark, C. J., and McDonald, Sharpe, North, Fead, Wiest, and Btttzel, JJ., concurred. | [
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Bixtzel, J.
Benjamin L. Spindle, plaintiff, was employed as a salesman on a commission basis by defendant, Michigan Investment Company, a corporation, engaged in the real estate business. He was allowed a drawing account of $200 per week, which was charged against him- on the books of the company. Against this debit, he was credited with commissions when, as, and if earned. He was appointed superintendent of sales of a subdivision situated in Grrosse lie, Michigan. Defendant was entitled to a commission of 25 ■ per cent, on sales in the subdivision. It in turn agreed to pay 2 per cent, of the sale price as an overwriting commission to its superintendent, 10 per cent, to the salesman, and 2 per cent, to the general sales manager. Plaintiff devoted his time exclusively to the subdivision, and on the sale of one lot by another salesman, early in 1925, he, as superintendent, received a commission of 2 per cent.
Later in the year, Richard Lambrecht, president of defendant corporation, met Bruce Wark, a real estate dealer. The latter was interested in the purchase of the entire subdivision. The negotiations moved slowly, and Lambrecht asked plaintiff to assist in closing the sale. Plaintiff does not claim that he had previously discussed the matter with Wark, but, on the contrary, admits that he was first directed to see Wark by Lambrecht. He claims he saw Wark seven or eight times, and that Lambrecht also worked on the deal, and closed it.
When the sale was consummated, Wark received a commission of 5 per cent., which he claimed as a real estate dealer. Plaintiff received 3 per cent, instead of 2 per cent., as superintendent, the extra 1 per cent, being allowed because the. entire subdivision was quickly sold as an entirety, and, as Lambrecht testified, plaintiff had been to some previous expense in an effort to sell the property to others. Plaintiff made no objection to the amount of the commission at the time, but later asserted a claim for an additional 4 per cent. He claims that, as the salesman’s commission was 10 per cent, and the superintendent’s commission 2 per cent., or an aggregate of 12 per cent., and only 5 per cent, was paid to Wark and 3 per cent, to plaintiff, there remained a balance of 4 per cent, which he seeks to recover in the present suit. A number of very important questions arise. Plaintiff claims that, inasmuch as he was a licensed real estate salesman and not a broker, the statute of frauds, 3 Comp. Laws 1929, § 13417, does not apply, and, therefore, no written agreement to pay him the commission as compensation was necessary; further, even if it were necessary, a rather indefinite resolution of defendant’s board of directors contained in its minutes, signed by the secretary, was sufficient to take the case out of the statute. Assuming that the court was correct in holding with the plaintiff on these questions, which we find unnecessary to pass upon for the purpose of this decision, we believe that the case should be reversed on the ground that the great weight of the testimony in the case, supported by plaintiff’s own admissions, shows that he was not the salesman who effected the sale, and that he was entitled to a commission solely as superintendent. Plaintiff admits that he did not find the customer, who had already been found by Lambrecht. He further admits that Lambrecht closed the deal. The respective duties of the superintendent and salesman are not set forth in any written agreement. We quote, however, from plaintiff’s cross-examination, as follows:
“ Q. You were acting as superintendent of the sales force of this particular subdivision at that time?
“A. Yes, not only superintendent, but salesman as well.
“Q. Primarily your contention is that you were superintendent of this sales force?
“A. Yes.
“Q. You may have made some sales?
“A. Yes.
“Q. That was your prime business?
“A. Yes.
“Q. As superintendent of that sales force, just tell us what your duties were?
“A. I was not superintendent of any sales force. There was no sales force under me. I would say he made the proposition to handle this property with the salesmen connected with the office but not working under me. They were working for Lambrecht and Kelly and on different subdivisions and had the right to sell on any subdivision.
“Q. In this particular subdivision there was a sale made before it was sold to Wark?
“A. Yes, by a man named Nelson that was with Lambrecht and Kelly long before I was there.
“Q. Did you get any commission?
“A.- Two per cent.
“Q. As what?
“A. Superintendent..
“Q. You were acting as superintendent of the sale of this particular subdivision irrespective of what the salesmen or where they came from?
“A. Yes. * * *
“Q. What were your duties as superintendent?
“A. To offer any assistance that I could to the salesmen.
“Q. Exactly so?
“A. Yes.
“Q. And that is what you did?
“A. Yes; I never had but one man ask me, and that was Nelson, and I gave him a lot of time.
“Q. And you only collected two per cent.?
“A. That’s all. That was the agreement that I undertook — the proposition that they submitted to me.
“Q. That was the method upon which you were working on this particular subdivision?
“A. Yes.”
On further cross-examination, he states as follows :
“Q. I understand you to have testified this morning that you would be entitled to a 12 per cent, commission on the sale of property under some conditions; is that right?
“A. Yes.
“Q. When would that be?
“A. In the event I made the sale myself.
“Q. Unassisted?
“A. Yes.”
Both Wark and Lambrecht testified that plaintiff; did not find the customer or close the deal, but that he merely assisted Lambrecht. The trial judge left the question of whether plaintiff was salesman and superintendent, or only superintendent, to the jury, who rendered a judgment in plaintiff’s favor.
In order to recover a commission, it is necessary for a broker to show that he was the procuring cause of the sale; he need not show that he concluded the sale in person. Douville v. Comstock, 110 Mich. 695, 701; MacMillan v. C. & C. Cooper Co., 249 Mich. 594, 598. A situation might even arise where the broker does not acquaint the customer with the property in the first instance, but nevertheless is the procuring cause through subsequent negotiation. Wood v. Smith, 162 Mich. 334, 342. However, in the instant case, plaintiff did not secure the customer, but only assisted defendant in making the sale. According to his own testimony, he would only be entitled to the salesman’s commission if he brought about the sale unassisted. This he did not do, but, on the contrary, he only aided Lambrecht, who was active in securing the customer, carrying on the negotiations, and closing the deal. Plaintiff, however, contends that, inasmuch as Lambrecht was receiving his pay as president of the defendant corporation, and, therefore, was not entitled to any commission, the 4 per cent, should be paid to plaintiff. The fact that defendant, through its president, was the procuring cause of the sale and thus saved the payment of an extra commission, does not justify the claim of plaintiff, who was paid as superintendent for precisely the services he rendered.
There was no testimony to support the verdict. The evidence showed that plaintiff was not the salesman but only the superintendent, and not entitled to a salesman’s commission.
The judgment is reversed, with costs, and the case remanded to the trial court, with instructions to enter a judgment in favor of defendant.
Clark, C. J., and McDonald, Potter, Sharpe, North, Fead, and Wiest, JJ., concurred. | [
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Sharpe, J.
In this uncontested divorce case, in which a decree was granted to plaintiff on July 10, 1930, it appeared that the parties had, before the hearing, entered into a property settlement which was approved by the court and embodied in the decree. It contained the following provision:
“As and for permanent alimony, release of dower of Mrs. Shafer in the lands of Mr. Shafer and property settlement between the parties, the defendant, Frank L. Shafer, shall pay or cause to be paid to the plaintiff, Margie A. Shafer, until her marriage or death, at such place as shall be designated by her or by her attorneys, or to the friend of the court, fifty dollars ($50.00) promptly on the first day of each week hereafter and no application shall be made by either party to change said requirement as to the amount of said payment, also one dollar in lieu of the doioer of the plaintiff in the property of the defendant and in full satisfaction of all claims that she shall have in amy property which defendant now owns or may hereafter own or in which he may have an interest.”
It further provided that defendant assign to plaintiff land contracts “approved by her counsel” of the face value of $20,000, and that he forthwith pay to her the sum of $5,000 in cash, and to her attorneys the sum of $1,000.
The trial court stated in the opinion filed by him that the words italicized were written in with pen and ink by the attorney for the defendant at the time the decree in typewriting was presented to him for signing, and that it was so inserted “to technically comply with Act No. 259, Pub. Acts 1909 (3 Comp. Laws 1929, §§ 12766-12769).” It follows almost verbatim the language of the statute.
The weekly payment of $50 was made until about June 12, 1931, when defendant petitioned for leave to apply for a reduction thereof. Over plaintiff’s objection, such leave was granted, and the petition therefor referred to the friend of the court, who reported recommending a reduction thereof to $35 per week. On the hearing thereof, the petition was dismissed on motion of plaintiff’s attorneys for the reason, as stated by the trial court in the order made (Judge Allan Campbell presiding), “that the weekly payments are not alimony but are an integral and component portion of a property settlement agreement which was incorporated in the decree entered herein.”
Thereafter, on October 1, 1931, the plaintiff fil§d a petition praying that defendant be punished for contempt for failing to make such weekly payments. On the return of an order to show cause, the trial court (Judge Vincent M. Brennan presiding) placed a similar construction upon the language of the decree, and, without passing upon the claim of the defendant that plaintiff’s right to the rhling sought was rendered res judicata by the order of Judge Campbell, dismissed the petition. From the order so entered the plaintiff has appealed.
Permanent alimony is an allowance which a husband, on the order of the court, must pay to his wife on the granting of a divorce between them. The power to make an award therefor is purely statutory (3 Comp. Laws .1929, § 12745), and, being subject to modification, an action at law may not be maintained upon it (Nixon v. Wright, 146 Mich. 231 [10 Ann. Cas. 547]) except in cases where the decree is obtained in another State (section 12770). Default in payment may be prosecuted by attachment (section 12773 et seq.). But, to entitle a divorced wife to resort to such means, it must clearly appear that under the decree she is entitled to the payment of a specific sum as alimony and that the provision therefor does not also include an allowance for dower or other moneys or property awarded her on a property settlement made between them.
The provision in the decree for the payment of the $50 weekly was “as and for permanent alimony, release of dower * * * and property settlement.” The words added by defendant’s attorney in no way affected the construction which should be given to this language. The after provision clearly indicated that the decree rendered was not to provide alimony for plaintiff, but that, taken as a whole, it simply embodied the provisions of the property settlement as made by the parties prior to its entry. In this decree it cannot be determined how much of the weekly payment provided for was for permanent alimony. (See Harner v. Harner, 255 Mich. 515.) Where a decree is entered in approval of and pursuant to a property settlement, its entire provision in that respect must be considered, and for the plaintiff to resort to coiitempt proceedings it must clearly appear that a stated allowance is made therein to her for alimony alone.
The conclusion reached renders it unnecessary to pass upon the other question presented.
The appeal is dismissed, with costs to appellee.
Clark, C. J., and McDonald, Potter, North, Fead, Wiest, and Btjtzel, JJ., concurred. | [
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North, J.
The .two questions of law presented in this case are clearly outlined in the following portion of the opinion filed by the trial judge:
“William Swantush and 63 other nonveteran sewer construction inspectors employed by the city of Detroit have filed this bill to restrain the defendants from giving preference in employment to- any ex-service man. They attack the constitutionality of the so-called veterans’ preference act, which is sections 1041 and 1042,1 Comp. Laws 1915, as amended by Act No. 224, Pub. Acts 1919 (1 Comp. Laws 1929, §§ 900, 901).
“The defendants urge that legislation should be sustained and under Act No. 36, Pub. Acts 1929 (3 Comp. Laws 1929, §§ 13903-13909), seek a decree determining the validity of the rule adopted by the civil service commission on January 30, 1931. The rule reads as follows:
“ ‘Whenever it becomes necessary in any department or bureau for lack of work or lack of the funds or other reasons than the delinquencies of the employee himself, or herself, to reduce the force in any employment in such department or bureau, the persons serving in such employment shall be laid off in the inverse order of their certification and appointment, that is, the last man certified and appointed will be the first man laid off, provided, however, in event the dates of certification and appointment of a veteran and non-veteran are the same, the veteran shall be preferred, and the non-veteran shall be first laid off. ’
“Henry H. Jadwin and five other veteran sewer inspectors have intervened, and, while urging the act as constitutional, insist the rule is not valid. * * *
“The questions for determination are these:
1. Is the veterans’ preference act constitutional? 2. Is the rule adopted January 30, 1931, valid?”
The trial judge sustained the validity of both the veterans’ preference act (1 Comp. Laws 1929, §§ 900, 901) and the quoted rule or regulation of the Detroit civil service commission. Plaintiffs have appealed from the decreed validity of the act and the intervening defendants have appealed from the decreed validity of the rule.
The second section of the veterans’ preference act was declared unconstitutional in Koeper v. Detroit Street Railway Commission, 222 Mich. 464. Section 1, with which we are here concerned, reads:
“In every public department and upon the public works of the State and of every county and municipal corporation thereof honorably discharged Union soldiers, sailors and marines of the civil war, and honorably discharged soldiers, sailors and marines of the Spanish-American war, of the present war in Europe and of every other war in which the United States of America has been a participant, shall be preferred for appointment and employment; age, loss of limb, or other physical impairment which does not, in fact, incapacitate, shall not be deemed to disqualify them: Provided, That whenever it shall become necessary to fill by appointment any vacancy occurring in any elective office, said appointment shall be deemed to be within the provisions of this act: Provided further, That the applicant shall be of good moral character and shall have been a resident of the State for at least two years and of the county in which the office or position is located for at least one year, and possesses other requisite qualifications, which shall be at least equal to those of other applicants.”
In assailing the constitutionality of the above section, plaintiffs as cross-appellants state in their brief that it is their contention the statute'does “not, require a competitive examination on the part of applicants” and it provides “the veteran shall receive preference regardless of his qualifications for the position applied for.” This contention is not tenable, because the act expressly provides that the applicant is given preference only when he possesses “other requisite qualifications, which shall be at least equal to those of Other applicants.” Clearly the act contemplates that either by examination or other-.appropriate methods the qualifications of a veteran applicant to properly' perform the duties of the position for' which hfe '^fiplies shall be determined. -Of this statutory provision cross-appellants also state in their brief: “We do not Contend it is a violation of a property :right, but claim that it is an impairment of a contract.” The point here urged is that when these civil service employees have remained in the service for 25 years they become pensioners: but in the event of such an employee not being in the service for a period of one year or more in the interim he is automatically stricken off the list of employees and forfeits his prospective pension rights. The work of these sewer inspectors varies with the seasons, and in consequence they are employed in greater numbers at certain times of the year than at others. They are employed on a per diem basis, not by the month or year. On account of lack of work or lack of funds they are frequently laid off by the department. If, as was decreed by the circuit judge and as we hereinafter hold, the rule of the civil service commission and not the statute controls as to lay-offs or suspensions from service, this phase of cross-appellants’ contention becomes of little or no importance; and the statute is not assailable on the ground that it impairs contractual rights. In so holding, we need not and do not pass upon the question as to these plaintiffs having a vested contractual right in a prospective pension. We have found nothing in this record or in cross-appellants ’ brief which would justify us in sustaining their contention that the quoted section is unconstitutional. Similar acts have been construed and sustained by highest authority. Keim v. United States, 177 U. S. 290 (20 Sup. Ct. 574). In Shaw v. City Council of Marshalltown, 131 Iowa, 128 (104 N. W. 1121, 10 L. R. A. [N. S.] 825, 9 Ann. Cas. 1039), it is said (quoting syllabus from L. R. A. [N. S.]):
“A statute giving preference to veteran soldiers in making appointments to minor offices is not invalid as depriving other citizens of equal privileges and immunities. ’ ’
See, also, State, ex rel. Boyd, v. Matson, 155 Minn. 137 (193 N. W. 30); Ellis v. Common Council of Grand Rapids, 123 Mich. 567.
In Koeper v. Street Railway Commission, supra, it was noted:
‘ ‘ Statutes relative to appointment and employment of veterans appeared in some States shortly after the Civil War and have always been accorded tender consideration by the courts.”
In the note appended to the Shaw Case, 10 L. R. A. (N. S.) 825, where numerous cases are reviewed, this pertinent observation is made:
“These decisions seem to recognize the power of the legislature, as a reward for past services performed in the army or navy, and as a means of promoting patriotism, to give to honorably discharged veterans a preference, where the qualifications are equal, to public offices filled by appointive power resting in some officer of the Federal, State or municipal government. ’ ’
The validity of the civil service rule set forth in the above quoted portion of the circuit judge’s opinion is attacked by the intervening defendants on the ground that the statute giving preference to honorably discharged soldiers and sailors applies not only to the initial “appointment and employment” but also to matters of laying off and re-employment; and that the statutory provision is superior to and controls as against any provision embodied in the rules adopted by the civil service commission of Detroit. The contention is that, because of the statutory preference, the civil service commission cannot adopt a rule based on seniority in service which conflicts with the statutory preference afforded service men. Stated in another way, the contention of intervening appellants is the statutory provision that service men “shall be preferred for appointment-and employment” means that a service man when once employed shall not be laid off until after all non-service appointees have first been laid off; and in re-employment service men shall be reinstated before any nonservice man is returned to work. We are satisfied that the statute should not be so construed. No one would seriously contend that the veterans’ preference act requires the discharge of nonveteran employees so that vacancies might be created to permit the initial appointment or employment of qualified veteran applicants. But that is exactly the result that would be accomplished in times of extensive lay-offs if the contention of the intervening appellants were to be sustained. The nonveteran would be supplanted by the veteran regardless of the fact that the nonveteran might have been in the service long before the appointment of the veteran. We are satisfied because of the obvious injustice that such a result was not contemplated by the legislature when the statute was enacted. The statute does not so provide in express terms or by reasonable implication. We think the statute covers priority in the original appointment and employment only as contradistinguished from the order in which employees shall be laid off or the order in which they shall be reinstated. When so construed, there is no conflict between the statute and the civil service rule which intervening appellants assail.
In arriving at our conclusion, we have not overlooked a fact stressed by counsel for intervening appellants, namely, that the origin of the preference act antedates the legislation which gave rise to civil service regulations in Detroit. But we are constrained to hold that if the statute was intended by the legislature to accomplish the broad and drastic purpose which these intervening appellants assert it would have been expressed in unequivocal terms rather than left as a matter of possible inference. By giving the veterans’ preference act a fair and reasonable meaning, it can be and should be construed in harmony with the legislation giving rise to civil service and its rules.
While our holding in this regard is not literally covered by the decisions hereinafter noted, it is in entire harmony with them. In similar New York statutory enactments the provisions are sometimes made to apply to “appointment and promotion” and in other instances to “appointment or employment.” In People, ex rel. Kaufman, v. Board of Education, 166 App. Div. 58 (151 N. Y. Supp. 585), it was held, quoting syllabus:
“The board of education of the city of New York may, when work is slack, decrease its force by discharging some of a specially designated class and transfer to others the duty of performing the work which was formerly done by the persons discharged. ’ ’
And in Reilly v. Smith, 92 Misc. Rep. 309 (156 N. Y. Supp. 686), the court said:
“Laying off or suspension for lack of work or lack of appropriation, no one else being appointed to fill the position, is in effect abolishing the position, and not a removal. * * * The difference between distributing the duties among existing employees and appointing a new man to the position is apparent.”
State, ex rel. Boyd, v. Matson, supra, holds:
“But it is well settled that statutes forbidding municipal officials from removing appointees except for cause are not intended to take away the power given such officials over the administrative and business affairs of the municipality, and do not prevent them from terminating’ the employment of an appointee by abolishing the office or position which he held, if the action abolishing it be taken in good faith for some legitimate purpose, and is not a mere subterfuge to oust him from his position.” Citing State, ex rel. Quintin, v. Edwards, 40 Mont. 287 (106 Pac. 695, 20 Ann. Cas. 239).
Many decisions of like purport will be found in other jurisdictions.
We think the rule is valid as against the objection raised, and that the “appointment and employment” provided in 1 Comp. Laws 1929, § 900, refers to the initial appointment and employment of one entitled to such preference, and, in the absence of bad faith or subterfuge intended to defeat the statutory preference, in no way interferes with the subsequent administrative measures adopted incident to the conduct of the business in which the appointee is engaged.
The decree of the circuit court is affirmed, with costs to appellees.
Clark, .C. J., and McDonald, Potter, Sharpe, Fear,. Wiest, and Butzel, JJ., concurred. | [
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Sharpe, J.
The question here presented, as it seems to me, is whether, under the provisions of Act No. 59, Pub. Acts 1915, as amended, and as now appearing in 1 Comp. Laws 1929', § 4314 et seq. (popularly known as the Covert act), a township, when assessed at large for a percentage of the cost of a highway improvement, must make payment to the county treasurer of the full amount of the tax so spread, or only of the amount thereof collected by its treasurer.
After determination by the county road commissioners to construct or improve a public highway under the provisions of the act, it is made the duty of such commissioners to determine the limits of the special assessment district to be assessed for benefits and to apportion the percentage of the total cost of construction which the county at large, the township at large, and any city at large (if benefited thereby) shall be liable to pay therefor. 1 Comp. Laws 1929, §§ 4331, 4332.
After review of the rolls thus made and ascertainment of the cost by estimates or the letting of contracts for construction, the county road commis-' sioners shall prepare a tax assessment roll for the collection of taxes for the first year thereafter, and shall certify the same to the township board, to the legislative body of the city, and to the board of supervisors, and it is the duty of the latter board to “order such taxes collected at the same time, and in the same manner as are county, State and township taxes,” and it is made the duty of the several assessing officers to spread such- taxes upon their respective rolls “in the same manner as other general taxes are spread. ’ ’ 1 Comp. Laws 1929, § 4337. The moneys collected by the treasurers “shall be paid over to the county treasurer, and placed to the credit of the special assessment “district.” 1 Comp. Laws 1929, § 4340.
Under section 4341 the county road commissioners may borrow the money to make the desired improvement and—
“pledge the faith and credit of the assessment district, the township. or townships concerned, and .of the county or counties at,large, and of any city or cities which may be assessed at large, in proportion as eách has been assessed for benefits, for the payment of such money so borrowed, which may be evidenced by bonds or notes issued on behalf of such counties, townships, cities or special assessment dis tricts, by the county road commissioners. * * * The county road commissioners * * * may pay for the improvement in such bonds at par and accrued interest.”
Then follows a provision which, it seems to me, is determinative of the question presented:
“In case any tax shall be returned delinquent, or shall not be paid when such bonds or notes become due, the same shall he paid hy the county, if such county is subject, under the provisions of this act, to an assessment at large, and otherwise by the township, reimbursement' therefor to be made in either case out of the money thereafter to be collected from such delinquent lands.”
(The italics are mine.) This is followed by a proviso:
“That such advancement by the county shall not cause the total debt of the county or the county tax rate for highway purposes to exceed the constitutional limitations placed thereon.”
It is stipulated in this case that an assessment to pay its percentage, of the cost of the improvement was spread upon the county at large. That being so, the statute is mandatory, in the language italicized, that the county shall pay the indebtedness secured by, not only its bonds, but the bonds of the assessment district, the township, and the city if it be assessed at large, and reimburse itself from the money thereafter collected from the taxes spread theréon and’ returned delinquent. With the wisdom or fairness of this provision we have no concern. I have intentionally omitted reference to the State highway commissioner, as it does-not appear that he 1 ook any part in the proceedings had.
It follows from what has been said that the county treasurer had no right to withhold moneys in his hands belonging to the township on the claim made by him that the township should account to him for the full amount of the tax spread therein in each year to pay its percentage of the cost of such improvement, and the order directing a writ of mandamus to issue to compel such payment is affirmed. No costs should be allowed.
Clark, C. J., and McDonald, Potter, North, Pead, Wiest, and Butzbl, JJ., concurred. | [
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McDonald, J.
This action was brought under the Federal' employers’ liability act (45 USCA, § § 51— 59) to recover damages sustained by the plaintiff, who, while employed in interstate commerce as a section laborer, fell from a handcar which he and other members of a section crew were operating on defendant’s road near Ironwood, Michigan.
At the time of the accident, plaintiff was 16 years of age, and had been employed by the defendant for three days. He was riding backwards on the front end of the handcar, with his hands on the handlebar assisting in pumping. The foreman of the crew stood in the middle of the car in control of the brake. The car was loaded with loose tools and dinner pails belonging to members of the crew. As it proceeded down a grade, operated, as the plaintiff claims, at an unusual and high rate of speed, he observed that a dinner pail was about to jar off the front end. In attempting to prevent it, he stooped, and, in shifting his position, stepped on a moveable iron bar, lost his balance, and fell over in front of the car. He claims his spine was broken, and that he suffered other injuries of a permanent character. The negligence charged as the proximate cause of the accident is that defendant unsafely loaded the car in placing tools and bars loose on the floor so that they rolled about under the feet of the men; that the dinner pails were not fastened so they would not be jarred off; that the car was driven at an unreasonable rate of speed considering the manner in which it was loaded, and that the plaintiff was not warned of the danger in riding on a car while loaded in that manner. At the close of the plaintiff’s case, and again when all the proofs were in, the defendant moved for a directed verdict on the ground that there was no evidence of actionable negligence ; that if there was negligence on its part, the evidence did not show such negligence to be the proximate cause of the injury; and that in any event plaintiff’s injuries were occasioned by risks which he assumed. Decision was reserved. After verdict, there was no motion for a new trial or for judgment non obstante veredicto. Judgment was entered on the verdict, and the defendant appealed.
1. The first question presented is whether there was any substantial evidence of actionable negligence.
The claim of failure to warn the plaintiff of the dangers incident to his employment was not submitted to the jury. It will not be considered. The only other acts of negligence relate to the loading of the handcar and the rate of speed at which it was being propelled at the time of the accident.
The handcar in question was the usual old-fashioned standard type with a platform six feet and one inch in length and four feet five inches in width. In the center the gears were protected by a wooden box built around them. On the sides were small wooden cleats, but in the front and rear of the platform there was nothing to prevent tools or dinner buckets from sliding off. At the time of the accident, this car was loaded with six men, six dinner buckets, and a .quantity of hand bars, lining bars, claw bars, and other tools used by members of the section crew in their work. These tools were thrown loosely on both sides of the car. The dinner pails were set in the front and back. Two of them were by the plaintiff’s feet. He stood with his back to the front of the car about a foot or a foot and a half from the edge of the platform. He had his hands on the handlebar and was assisting in pumping. In his testimony he describes the manner of the accident as follows:
“We was riding as far as this grade, and the handcar was picking up speed, and I happened to notice that a bucket on a long strap commenced to fall. When this bucket was falling, I couldn’t reach it sideways, and I moved my feet over to get secure footing and I tried to get this bucket, and at the same time my foot slipped on those bars and my hands slipped. * * * The dinner bucket or pail with the long strap, if it would fall off it might wreck the handcar and it might kill somebody. In other words, when I noticed that the bucket was falling off I couldn’t reach it sideways, so I tried to make a secure footing. "When I tried to make a secure footing the bars rolled under my foot, and at the same time my hands slipped and I went backwards.
“Q. Where was the bucket at the time you were reaching for it?
“A. It was almost on the end, pretty near to fall off.”
Another member of the crew, witness John Pahucki, testified that he saw the plaintiff fall as he stooped to catch the bucket; that the car was running 15 or 20 miles an hour, and that when it jumped the track it ran a distance of 40 or 50 feet into a bunch of rails. Prior to and at the time of the accident, the foreman in charge of the car stood at the center facing the front with his hand on the brake. He controlled its speed. He was experienced in its use. He knew how it was loaded. Assuming the truth of plaintiff’s testimony, he saw the loose bars roll about on the platform. He saw them moving back and forth toward the front and end of the car where there was nothing to prevent them from falling off. He must have appreciated the danger of their doing so. It was his duty to exercise due care for the protection of the members of his crew. Whether he did so in loading the car and operating it at a speed of 20 or 30 miles an hour, crowded as it was with men and loose tools, was a question for the jury. In Jambor v. Railway Co., 161 Minn. 195, reported in 201 N. W. 321, it was said (quoting from the syllabus):
“A tool slipped off a moving section car and derailed it, resulting in the death of a member of the crew. A little attention on the part of a fellow servant of deceased would have kept the tool in place and prevented the accident. These facts sustain the jury’s conclusion of negligence.”
So in the instant case, it may be said a little attention on the part of the foreman in loading the car and in operating it would have prevented the accident. In loading the car, or in operating it when loaded, it was his duty to take all reasonable precautions for the safety of 'his workmen. Whether he did so was a question for the jury. The plaintiff’s case shows substantial evidence of negligence.
See Hook v. Railway Co., 116 Kan. 556 (227 Pac. 531); New York, etc., R. Co. v. Biermacher, 28 Ohio App. 421 (162 N. E. 720).
2. The next question relates to the assumption of risk.
Assumption of risk is usually a question for the jury, and we think it was so in this case, diving, as we must, full credit to the plaintiff’s testimony, it is clear that the proximate cause of his injury was both the loading of the car and its operation at an improper speed considering the manner in which it was loaded. Both combined to produce the result. In the absence of either, the accident would probably not have happened. Though the plaintiff was but 16 years of age, and, as far as the evidence shows, had not assisted in loading the car and had never ridden on it before the day of the accident, the jury might have found that he knew and appreciated the dangers and assumed the risk of riding on a car so loaded when driven at the nsnal or proper rate of speed. But it was not driven at the nsnal rate of speed. The plaintiff’s testimony shows that they were in a hurry to get home and were operating the car faster than usual. The speed was in control of the foreman. The plaintiff could not know that the foreman was going to run the car too fast. He had a right to expect that it would not be operated at such a speed as to endanger the lives of the workmen. He did not assume the risk of its being operated negligently. If he appreciated the danger of so operating it, the knowledge came too late for him to assume the risk. In view of the evidence, the court was right in refusing to hold as a matter of law that the plaintiff assumed the risk of the dangers which resulted in his injury.
3. Did the trial court err in permitting the plaintiff to amend the declaration and to assert and maintain a cause of action under the Federal employers’ liability act three years and seven months after the day the cause of action accrued?
This question was brought before this court for review on certiorari and was decided in 249 Mich. 685. It is controlled by the decision in that case.
The judgment is affirmed, with costs to the plaintiff.
Clark, C. J., and Potter, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. | [
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North, J.
The defendants signed and delivered to the payee a note reading as follows:
“$312 Angnst 16, 1929.
“For value received, we or I, promise to pay to the Kei-Lac Company of Michigan or order three hundred twelve — no/100 dollars ($312) in 12 payments of twenty-six dollars ($26) each, and said payments to he made at intervals of 30 days each from date. All payments are due and payable on default of any, including interest and all collecting cost.
“Payable at Muskegon, Mich.
“Name, Wm. Champayne & Son (Signed) “By Clarence Champayne (Signed) “Address 98 W. Clay Ave.”
Under the stipulated facts it appears that the foregoing note was attached to a contract, the two being separated by a perforated line extending across the paper. Under the terms of the contract, the payee of the note over a period of 12 months was to render certain advertising services to the maker, payable in monthly instalments of $26 each. The payee without plaintiff’s knowledge detached the above-quoted note, and, before the first instalment was due, discounted it to plaintiff, which, under the stipulated facts, “took the same without knowledge of any defect and paid value for it and became a holder in due course.” Defendants paid plaintiff the first three instalments approximately on the respective due dates, the last one on December 10,1929. About this time the Kei-Lac company became insolvent and discontinued business. It rendered defendants no further service under the contract. In plaintiff’s suit brought upon the note, the defense urged is thus set forth in the record:
“The defendant claims that by reason of the note being only part of the contract and being thereafter-wards detached from said contract, without their consent, that said note became and was and is wholly void and without consideration and is not collectible even in the hands of a bona fide holder.”
The circuit judge who heard the case without a jury stated in his written opinion that the defendants would not have signed the note apart from the contract, and “it must be held that the note and contract were and are one and not two separate instruments. ’ ’ He rendered judgment for defendants, and plaintiff has appealed. .
Since decision in the circuit court an opinion has been handed down by this court in Kewanee Private Utilities Co. v. Runzel, 256 Mich. 345. We think the controlling facts in the two cases are identical, and that the judgment entered in the circuit court in the instant case must be reversed.
There is nothing in this record which would justify charging plaintiff with notice before purchase of any fact or circumstance tending to negative negotiability of the instrument purchased by it. Immediately upon purchasing the note it gave written notice to the makers, who thereafter without protest paid the first three instalments. The perforation between that portion of the paper on which the note was printed and the portion which contained the terms of the advertising contract, there being no reference in the one portion to the other, was ample notice to defendants that the note as such could be and probably would be detached and used in regular course as negotiable instruments are used, Persons who execute negotiable instruments under such circumstances cannot be allowed to disavow the-obligation when such instruments before maturity have come into the hands of innocent purchasers for value.
“The law has always been solicitous to exclude any rules calculated to hinder the free circulation of mercantile paper having legitimate inception.” Nichols v. Sober, 38 Mich. 678.
“It is not the duty of parties about to purchase negotiable paper to make inquiries as to possible defenses, unless either from something appearing upon the face of the paper, or from the facts communicated to them at the time, they could not honestly purchase without making further inquiry; in other words that they acted in bad faith.” Howry v. Eppinger, 34 Mich. 29.
Judgment is reversed, and the case remanded to the circuit court, with direction to enter judgment in favor of plaintiff. - Costs to appellant.
Clark, C. J., and McDonald, Potter, Sharpe, Bead, Wiest, and Butzel, JJ., concurred. | [
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Potter, J.
Plaintiff sued defendant in common pleas court in Detroit in assumpsit and had judgment. Appeal was taken to the circuit court of Wayne county, where plaintiff again had judgment. Defendant appeals. The sole question is whether there was evidence to sustain the judgment. The suit was brought to recover rent alleged to have been collected by defendant from tenants of plaintiff’s property. The caretaker of plaintiff’s property was sworn. He testified he collected the rent from tenants for a part of the time and turned it over to Mr. Barton. He produced a receipt purporting to be for rent paid by a tenant to defendant Weber. No one testified Weber received any money for rent of the premises in question. No one identified the receipts as having been signed by Weber, and no one otherwise authenticated such receipts.
‘ ‘ A plaintiff has always the burden of showing his cause of action. Every defendant is entitled to go clear unless made answerable by legal testimony. There are no presumptions against him. If there is no testimony to be found, it is not admissible to make out a case without it. When plaintiff’s case was closed, no cause of action had been made out.” Lendberg v. Brotherton Iron Mining Co., 75 Mich. 84, 89.
This language applies to this case. There is no sufficient evidence to sustain the judgment, which is reversed, with costs, and a new trial granted.
Clark, C. J., and McDonald, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. | [
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Potter, J.
Plaintiff, administratrix of the estate of Richard H. Harrison, deceased, sued defendant to recover damages claimed to have resulted from defendant’s negligent killing of plaintiff’s intestate. The amount of damages claimed was $34,915.50. Defendant denied liability, alleged its freedom from negligence and the contributory negligence of the driver of the vehicle in which plaintiff’s intestate was riding, which contributory negligence is imputable to plaintiff’s decedent. Upon a trial, there was judgment for defendant on a directed verdict. Plaintiff brings error. The automobile in which plaintiff’s decedent was riding was going east on U. S. trunk line highway No. 12, about one and one-half miles east of Grass Lake in Jackson county. Defendant’s bus was going west on the same highway. There was a truck and several automobiles ahead of the automobile in which plaintiff’s decedent was riding. The driver of that automobile saw the bus of defendant coming when it was a quarter of a mile away. He swung’ out of the line of traffic on the right side of the highway and started to go by the automobiles and truck ahead of him. He could not get into the line of traffic, other cars had come up behind where he had gotten out of this line. He increased the speed of his automobile from 25 to 45 miles an hour and turned into the rig’ht side of the road back of the truck, which was proceeding about 25 miles an hour. He did this rapidly, put on his brakes to slow down, and as he did so his automo bile hit the back end of the truck. Defendant’s bus, at that time, struck his automobile on the left side about the center of the body thereof, and, as a result, plaintiff’s decedent suffered severe injuries from which he subsequently died. Plaintiff claims decedent’s driver was not guilty of contributory negligence in seeking to pass this line of cars, that defendant was guilty of negligence, and the driver of the car in which plaintiff’s intestate was riding was in the exercise of his best efforts to extricate himself from a perilous position, and these questions were for the jury. The question for this court to determine is whether there was any substantial evidence to go to the jury. The facts are not seriously in dispute.
1 ‘ The driver of a vehicle shall not drive to the left side of the center line of a highway in overtaking and passing another vehicle proceeding in the same direction unless such left side is clearly visible and is free of oncoming traffic for a sufficient distance ahead to permit such overtaking and passing to be made in safety.” 1 Comp. Laws 1929, §4707, subd. (a).
“In any action, in any court in this State when it is shown, by competent evidence, that a vehicle traveling in a certain direction overtook and struck the rear end of another vehicle proceeding in the same direction, # * * the driver or operator of such first mentioned vehicle shall be deemed prima facie guilty of negligence.” 1 Comp. Laws 1929, § 4788.
One who drives on the wrong side of the highway assumes the risk of the experiment and is required to use greater care than as if he kept on the right side of the highway. Winckowski v. Dodge, 183 Mich. 303; Ross v. Michigan Mutual Auto Ins. Co., 224 Mich. 263; Lawrence v. Bartling & Dull Co., 255 Mich. 580.
Defendant’s bus was on the right side of the highway. The driver of the car in which plaintiff’s decedent was riding was guilty of negligence in getting into a place of danger in violation of the terms of the statute, and this negligence on his part was a contributing cause to the injury of decedent. The important question was whether there was sufficient proof to go to the jury of defendant’s subsequent negligence. It is not true as a matter of law that one who is in a place of danger by reason of his own antecedent carelessness is not entitled to complain if he is purposely and intentionally run over and injured by one who has full knowledge of his perilous position and ample opportunity to avoid injuring him. Nor is it true that 'one whose innocent negligence has placed himself in á position of peril is not entitled to complain if another carelessly and negligently and with knowledge he is in a place of danger, runs into and injures him; but it is true that one who by his own negligence gets into a perilous position by reason of which he is injured and his negligence continues to and contributes to his injury, cannot recover. There must be a causal connection between the negligence and the injury. It must contribute thereto. The negligence of the driver of the car in which plaintiff’s decedent was riding contributed to the accident. We find no error in the action of the trial court. Judgment is affirmed, with costs.
Clark, C. J., and McDonald, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. | [
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McDonald, J.
This bill was filed to set aside a deed and for an accounting between Charles B. Hackett and Howard Hackett, administrator of the estate of Hannah Hackett, deceased.
On March 18, 1896, the plaintiff was living with his first wife, Hannah Hackett, now deceased. They had two sons, Harry and Howard, then aged nine and five years respectively. Mr. Hackett owned a property knoAvn as 110 Page avenue in the city of Jackson. The records in the register’s office show a deed of this property dated March 18, 1896, from Charles B. Hackett and Hannah Hackett, his wife, to their two sons. This is the deed which the plaintiffs seek to set aside. The theory of the bill is-that Charles B. Hackett never signed the deed; that if he did sign it there was no consideration and no delivery; and that in any event he is entitled to have his title quieted because of adverse possession for the statutory period. On the hearing, the trial court found against the plaintiffs and entered a decree dismissing their bill. They have appealed.
By the great weight of the testimony it is established in this record that the plaintiff Charles 'B. Haekett signed the deed in question; that there was no fraud attending the transaction; that the deed was made in pursuance of an agreement with his wife, Hannah Haekett, for the protection of their infant sons; that it was placed on record, assessed for taxes to the boys, and that for 35 years thereafter Charles Haekett never questioned their title. In answer to questions by the court, he testified:
“Q. Why did you sit by all these years and never say anything about it?
“A. I don’t know that.
“Q. Never was a thing said when your first wife was living, was there?
“A. No.
“Q. Why?
“A. I don’t know. * * *
“Q. Didn’t you with your wife keep a life estate there? Wasn’t that the intent of putting this on record?
“A. No.
“Q. Isn’t that the fact of it?
“A. What?
“Q. That you and your wife were supposed to have a life lease of the place and it would go then to your children, this place ?
“A. Supposed to have a life lease of it?
“Q. Yes, and after you and your wife were dead, then it would go to the children. Wasn’t that the purpose of it?
“A. Well, I don’t know whether it was or not.
“Q. It might have been?
“A. Yes.
“Q. Isn’t that the fact of it, so the property would go to the children after you were dead. Was that the talk you and your wife had?
“A. Yes.”
There was also testimony by other witnesses showing that Charles B. Hackett and his wife, Hannah Hackett, had domestic trouble; that he left home ; that later a reconciliation was had at which time it was agreed that this deed should be made to their sons in order to secure the property to them. There is no doubt of its validity.
In a supplemental bill, Charles Hackett charges that in the administration of the estate of Hannah Hackett, deceased, through the fraud and deceit of defendant Howard Hackett while acting as administrator, he was cheated out of $3,000 which rightly belonged to him, and prays for an accounting and a redivision of the estate.
The trial court rightly disposed of this claim in the following finding:
“As to the alleged accounting between Charles B. Hackett and Howard Hackett, who acted, as administrator of Hannah Hackett’s estate, the court' finds as a fact that there was no fraud practiced by Howard Hackett in any way in regard- to that estate. The fact is that all the testimony in the case is to the contrary. The testimony shows that Howard Hackett acted as administrator of the estate and accounted for all the money and property that came into his possession.”
In view of the established facts, the doctrine of adverse possession and the questions of law argued in the plaintiffs’ brief are inapplicable and require no discussion. The decree is affirmed, with costs to the defendants.
Clark, C. J., and Potter, Sharpe, North, Pead, Wiest, and Butzel, JJ., concurred. | [
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North, J.
This is a suit under the survival act (3 Comp. Laws 1929, § 14040) brought to recover damages incident to the death of plaintiff’s daughter. He obtained a judgment for $3,000. Defendants have appealed and urge two grounds for reversal. First, that no negligence for which defendants are responsible was established, and, second, that the damages awarded were excessive.
The defendants are father and son; the former the owner, and the latter the operator, of the automobile which caused the death of plaintiff’s decedent. About eight o’clock in the evening of August 1, 1928, Thomas Simpson, Jr., hereinafter referred to as the defendant, was backing his father’s Nash sedan from the garage to the street on which their home fronted. The private driveway extended in a southerly direction, and was somewhat downgrade as it approached the sidewalk. At the westerly side of the driveway there was a hedge. The automobile was rolling or coasting, and the driver was looking out of the window to his left to see that he did not go too close to the hedge. Just as the automobile neared the sidewalk, plaintiff’s decedent, Helen Kinsler, a 17-month old girl, came along the walk in a westerly direction, passed behind the automobile just in time to be caught by the westerly rear wheel, was run over, and killed. Defendant, thinking the rear wheel of his car had struck a stone which was adjacent .to the driveway, moved the car forward a few feet; and he was then advised of the accident by an eyewitness. The child lived not more than 20 minutes, and apparently did not regain consciousness during that time.
As bearing upon appellants’ contention that this record does not contain testimony which sustains the finding of negligence, these further facts are pertinent : It is a fair inference that defendant gave no warning of the approach of the automobile to the sidewalk. His machine was moving backwards at a rate of from three to ten miles per hour. While another young man occupied the front seat with the driver, no attempt seems to have been made to have him also keep a lookout on his side of the auto for pedestrians on the sidewalk approaching the driveway. All parties concerned live in the same neighborhood, it is a residential community, and quite a number of small children reside in the locality. The defendant testified he had lived there a year or two, was thoroughly familiar with the surroundings, and “knew there were a great number of children upon the sidewalk in that locality.” These and other circumstances surrounding this accident were ample to justify the conclusion that the operator of this automobile was guilty of negligence in attempting to back across the sidewalk without giving warning of its approach or in any way ascertaining whether pedestrians passing along the sidewalk might be injured, especially children of tender years. For a case arising under somewhat similar circumstances, except the injured person was an adult, see Hight v. Casanas, 6 La. App. 30.
' “But the general rule is that- the failure to give warning prior to backing an automobile to persons who may be affected by the maneuver is at least evidence of negligence. ’ ’ 1 Blashfield, Cyc. of Automobile Law, p. 532, citing cases.
“Where one, in backing his car out of private premises, comes into collision with a car on the street, the question of his negligence is usually for the jury or for the trial judge as trier of the facts. ’ ’ 4 Blashfield, Cyc. of Automobile Law, p. 63.
“One backing a machine from a garage to the street should exercise reasonable diligence to give a warning of his approach or to ascertain the danger to which other travelers are exposed.” Huddy on Automobiles (6th Ed.), § 440.
See, also, Tuttle v. Briscoe Manfg. Co., 190 Mich. 22 (12 N. C. C. A. 909); Ottaway v. Gutman, 207 Mich. 393.
In considering appellants’ claim that the damages are excessive, we must be mindful of the fact that there is no fixed standard by which the amount of damages in this type of a case can be determined to a nicety. The testimony covers the usual field relative to the health of plaintiff’s decedent during her short life, the age and health of her parents, brothers and sisters, grandparents, etc. Also the station in life of the family is disclosed, including the occupation of the child’s father. See Black v. Railroad Co., 146 Mich. 568; Sadlowski v. Meeron, 240 Mich. 306, 243 Mich. 602. If reasonably within the range of the testimony, the determination of the trial judge as to the amount of damages to be awarded will not be disturbed, on appeal. We find nothing in this record which would justify us in holding that the damages awarded are excessive.
Judgment is affirmed, with costs to appellee.
Clark, C. J., and McDonald, Potter, Sharpe, Fead, Wiest, and Butzel, JJ., concurred. | [
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Butzel, J.
Jennie Peterson, plaintiff, brought suit against William Cleary, defendant, for causing the destruction of her farm house and part of its contents by fire through his negligence. She owned the farm on which the house was situated. It stood about 45 feet south of the center line of the Bundy Line road, Hagar township, Berrien county. On the morning of June 5, 1929, plaintiff went to work on a strawberry patch about 100 feet from the house. She left no fire burning in the house. The kitchen stove had not been in use for several days, the meals having been prepared on a kerosene stove. The house was not wired for electricity. No one had been in the house for several hours prior to the time when the fire started. There had not been any rain for many weeks. The house was built in 1900 on a stone foundation without a cellar. The dimensions of the ground floor were 20 x 30 feet. The second story, 7 feet high in the center, sloped towards the sides. With the exception of the roof, which had never been reshingled, the house had been kept in good condition. Towards 11 a. m. on the morning of the fire, a small space of the roof appeared to be on fire. The entire house was shortly thereafter in flames, and the furniture and household goods on the second floor and the house itself were totally destroyed. Plaintiff’s husband was dead, but during his lifetime he had taken out a policy of $600 on the house and $400 on the household goods. . In the application for insurance, he described the house as of the value of $900. Upon payment by the insurance company of $600 for the loss of the house and $347.17 for the contents destroyed, plaintiff assigned her claim against the defendant to the insurance company, who in turn reassigned it to plaintiff for one dollar prior to the commencement of the instant suit. The purpose of the reassignment was to vest the entire claim against defendant in plaintiff, so that she could bring suit in her own name and collect the amount due from defendant in one action. The insurance company asserted no claim against defendant.
Plaintiff claims that the fire was caused by sparks that escaped from the stack of a steam roller owned by defendant and being used in paving the road in front of plaintiff’s house. At the time the fire broke out, the roller was not far from the house. Coal, not wood, was used as fuel. One of the few facts on which the testimony is not in conflict is that there was no spark arrester on the smokestack of the roller. It was also claimed that, at the time of the fire, there was a wind blowing in the direction of the house and of sufficient strength so as to carry the sparks from the stack of the roller to the roof of the house and set it on fire. No one saw sparks leave the stack of the roller and alight on the roof of the house. There is, however, sufficient testimony to warrant the inference that sparks from the roller caused the fire. This, at least, was a question of fact for the jury to determine. The value of the property destroyed -is also in dispute. The questions were submitted to the jury under a proper charge. Defendant appeals from a verdict of $1,900 in plaintiff’s favor.
It is claimed that plaintiff had not the right to bring suit solely in her name, and that the insurance company was also a party in interest. This objection was not made during the trial of the case and we shall not now consider it. There was sufficient testimony to support the verdict of the jury both as to liability and amount. The judge’s charge was correct, except in one particular. A statement of the questions involved is not given in the briefs of either party. We shall, however, discuss the only question that seems to be important. The judge charged the jury as follows: cause of the injuries complained of; in other words, the plaintiff must show by a preponderance of evidence that because the defendant failed to have that spark arrester on the. engine that was the direct cause of the sparks being thrown from that engine and carried over onto this house.”
“Now, members of the jury, counsel have disagreed somewhat about what the law is in respect to operating a steam engine of this kind along a public highway. I don’t blame them very much because the court is somewhat confused himself about the law. We have a statute in this State passed, as I remember it, in 1913, which specifically provides that anyone' operating a threshing engine or any portable steam engine along a public highway burning wood must have a spark arrester upon the engine, but under the statute if the engine is burning coal it is not required that a spark arrester be upon the engine. Our legislature in the year 1923 passed another act, and for the purpose of this case the court is not sure whether or not this act applies. This section that I aih calling your attention to is section 11 of Act No. 143, Pub. Acts 1923 (2 Comp. Laws 1929, § 5786). This statute provides that it shall be the duty of any and every owner of a threshing or other portable steam engine to have an efficient spark arrester on their engine at all timés when in use. The court holds that that statute applies to this case, and that it was the duty of this defendant under that statute when operating his engine upon that highway upon that day to have the engine equipped with a spark arrester; it appearing to be conceded that engine was not so equipped, the court holds that such failure on the part of the defendant to have his engine so equipped was negligence- in and of itself. However, before the plaintiff can recover in this case she must not only show the defendant was guilty of a negligent act, namely operating this' engine that day without a spark arrester, but the plaintiff must also show by a preponderance of evidence that such negligent act on the part of the defendant was the proximate
There is some question whether section 11 of Act No. 143, Pub. Acts 1923, is applicable to the present case. This section (also known as 2 Comp. Laws 1929, § 5786) provides that each and every owner of threshing or other portable steam engines must have spark arresters affixed to his engines at all times, and all persons violating the provision shall be deemed guilty of misdemeanor and on conviction thereof shall be punished by a fine of not less than $10 or more than $50. This section appears in the act, which is entitled:
“An act to provide for the' preservation of the forests of this State and for the prevention and suppression of forest and prairie ■ fires, and to create the office of chief fire warden. ’ ’
The various other- provisions of the 15 sections of the act refer almost exclusively to forest fires in accordance with the title to the act. It is claimed that the provisions do. not apply to the case at bar, as the title in no way gives notice of the contents of the particular section in question, as far as it may be applicable to farm lands far remote from forest or prairie. We need not pas's upon this claim, for even if there is any merit to it, we believe that the error was cure'd by :the"further statement of the trial judge that it was necessary for plaintiff to show by a preponderance of evidence that the failure to have a spark arrester on the ■ engine.' was' the , proximate cause of the injuries complained of, and that the direct cause of the fire was through sparks being thrown from the engine and carried over onto the house. The negligence charged in the declaration as originally filed was the failure to have a spark arrester. It is not sought in the present case to impose a fiue under the statute. The failure to have an arrester (so as to prevent sparks from the engine causing, fire to neighboring property) is negligence under the common law. Cheboygan Lumber Co. v. Delta Transportation Co., 100 Mich. 16, 23; Mc-Farland v. Sayen, 156 Mich. 426. Even if the charge that the statute applies was error, we do not .believe that it was prejudicial, under the circumstances. The declaration was amended after the closing of the proofs so as to allege a breach of duty under the statute in question. The original declaration made no such reference to the statute, and the declaration may be considered as amended so as to eliminate such reference.
The judgment is affirmed, with costs to plaintiff.
Clark, C. J., and McDonald, Potter, Sharpe, North, Pead, and Wiest, JJ., concurred. | [
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Clark, C. J.
Defendant was convicted of murder in the second degree and has appealed. He, admitting the killing, adduced evidence tending to show that it was done in self-defense. On this issue the direct evidence is in sharp conflict, and there is conflict, too, in circumstantial evidence.
In submitting the issue to the jury, the trial judge instructed:
“Before a person can avail himself of the defense that he used a weapon in the defense of his life, he must satisfy the jury that defense was necessary to protect his own life, or to protect himself from such serious bodily harm as would give him reasonable apprehension that his life was in immediate danger. ’ ’
This is reversible error. This unfortunate instruction was given as requested by the assistant attorney general and the prosecuting attorney appearing in this' trial for the State. It was taken verbatim from People v. Piper, 112 Mich. 644, where the instruction was held more favorable to defendant than he was entitled to, for the reason, as stated in the syllabus, that thé law of self-defense was not applicable to the case.
Under settled law of this State, the burden was upon the people to show such facts and circumstances as convinced the jury beyond a reasonable doubt that the killing was not done in self-defense. People v. Coughlin, 65 Mich. 704. The burden was not upon defendant to satisfy the jury that he killed in self-defense. People v. Cathey, 220 Mich. 628; People v. Lintz, 251 Mich. 367. And the error cannot be excused by other language of the charge, as there was further unfortunate omission of usual instruction on burden of proof. People v. Statkiewicz, 247 Mich. 260.
Reversed. New trial ordered. Defendant remanded to custody of sheriff.
McDonald, Potter, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. | [
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North, J.
This is a bill for specific performance. The relief sought was denied by the circuit judge on the ground that there was no competent evidence to sustain the essential allegations of the bill of complaint. Plaintiffs have appealed.
In 1926 six men engaged in the cleaning and dyeing business in Detroit as the Perfect Cleaners & Dyers, Inc. Each party interested invested $4,000, and each was active as an employee in the corporation’s business. By the death of one of these men within a very few months the question was presented as to how the company could arrange financially to repossess itself of the stock of a deceased member. In adopting a plan, consideration was given to providing the family of a deceased member with substantial financial assistance in lieu of the surrendered stock. Plaintiffs allege it was finally agreed that a $10,000 policy should be taken out on the life of each of the five surviving members, the policy to be payable to a beneficiary or beneficiaries named by the insured, and that upon the death of the insured and the payment of the insurance all the stock of the deceased in the Perfect Cleaners & Dyers, Inc., should be transferred back to the corporation. Incident to this plan, an attorney prepared several copies of an agreement, one of which was to be signed by each of the five survivors. The first plan was to have the insurance payable to the corporation, and evidently the agreement prepared by the attorney was intended to conform to this plan. It recited that the company was to insure each of the surviving members for $10,000, but, upon the death of any one or more of them within one year from the date of the agreement, the company was to pay $12,500 “to the heirs, executors or administrators of said party for his shares of common stock of the corporation.” It also authorized and directed the executor or administrator .of the estate of the deceased member to transfer his stock to the corporation. The contracts so prepared were not signed by any of the parties; and the relief sought by the plaintiffs in this case is wholly based upon an alleged oral agreement as first above outlined. In accordance with the plan, $10,000 insurance was taken on the life of each of the members of the company and the premiums paid by it. Within a year one of the members, Abraham B. Kirschbaum, died. The insurance was paid, but the administrator of his estate refused to transfer to the corporation the 40 shares of stock standing in the name of his decedent. The corporation and the surviving members brought this bill for specific performance.
Before suit one of the original six members had sold out his interest in the corporation. The witnesses who testified in behalf of plaintiffs were the three remaining members of the corporation, and .the former stockholder, Louis E. Smith, the bookkeeper of the corporation, its attorney, and the agent through whom the insurance was obtained, Marc Goldberg. The testimony of each, in so far as it pertained to the alleged contract, was taken over defendant’s objection that it was equally within the knowledge of the deceased, and therefore inadmissible. 3 Comp. Laws 1929, § 14219. The circuit judge was of the opinion that this was true of each of the witnesses except the insurance. agent; and the judge held that the testimony of the insurance agent was not sufficient to establish the alleged oral agreement, and that there was no other competent testimony in the record which sustained plaintiffs ’ claim. As noted above, specific performance was denied.
It seems clear that, because of the statutory prohibition, neither the former member of the corporation nor any of the three remaining members were competent to testify on the controlling issue. However, it is urged in behalf of appellants that the statutory disqualification does not include the corporation’s bookkeeper or its attorney. ' The point is made that the testimony of an agent or employee is not excluded by .the statute unless the matter sought to be proven is something within the scope of the authority of such agent or employee. In support of this contention, appellants cite and rely upon Brennan v. Railroad Co., 93 Mich. 156, and other decisions of like purport. The difficulty with this con tention is that taking out this insurance had to do with the general welfare and management of the corporation’s business; and we think the knowledge of the" bookkeeper acquired by being present and acting in a clerical capacity at the meetings of the members of this company must be held to have been so acquired within the scope of his employment; and certainly it must be held that the attorney who represented the corporation relative to this very transaction is within the prohibition of the statute.
The only remaining witness who testified relative to the alleged insurance contract was the agent who represented the company which issued the policies. A careful review of his testimony convinces us that it is not sufficient to establish the contract upon which appellants rely. Whatever agreement the parties may have contemplated was not consummated in the presence of this witness; but instead, according to his testimony, the contract was to be prepared later by the corporation’s attorney. For reasons not disclosed by competent testimony the papers prepared by the attorney were never executed. If the minds of the parties concerned met upon the essential terms of the contemplated arrangement, that fact is not disclosed by the testimony of the insurance agent. The decree is affirmed, with costs to appellee.
Clark, O. J., and McDonald, Potter, ' Sharpe, Fead, and Wiest, JJ., concurred. Btjtzel, J., did not sit. | [
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Nelson Sharpe, C. J.
The plaintiff, Carrie Brant Becht, was appointed executrix of the last will and testament of Martha J. Brant in 1929, and duly qualified and entered upon the performance of her duties as such. On March 5, 1934, the defendant, probate judge of the county of Berrien, entered an order which, after reciting that her bond as executrix was insufficient, ordered her to file an additional bond in the sum of $50,000 on or before March 20, 1934. This order was duly served upon the executrix and also upon her attorneys on the day it was made. It was not complied with, and on March 22, 1934, the defendant entered an order removing her as executrix and appointing Francis J. Miller administrator de bonis non with the will annexed of said estate.
On March 27, 1934, the plaintiff filed a petition in the circuit court of that county, setting forth the proceedings had in the probate court and alleging that the defendant had no valid reason for requiring her to file such additional bond or for entering the order for her removal, and praying for an order to show cause why such orders should not be canceled, vacated and set aside. An order to show cause was issued and served upon the defendant. In his answer he denied many of the allegations in the petition, and alleged that at the time said orders were made the assets of the estate in plaintiff’s hands subject to distribution amounted to the sum of $73,400, and that her bond as executrix then in force was but the sum of $10,000, and asked for dismissal thereof.
At the hearing in the circuit court, the defendant, who assumed office on January 1, 1933, was called as a witness by plaintiff’s counsel. On being asked what he knew about the value of the assets of the estate when the order requiring an additional bond was made, he answered:
“I have not had an opportunity to go into the assets other than what I have learned by the amended inventory and the last supplemental final account and the other papers that are on file in the court. ’ ’
The files and records of the probate court were not put in evidence. He admitted that he had no personal knowledge of the value of the assets, and that his information relative thereto was obtained from the attorney representing some of the parties in interest. It appears, however, from the answer filed and from the'statement of the trial judge in his opinion, that at the time the order was made there were assets in the hands of the executrix of the face value of $73,400.
The only other witnesses were the plaintiff’s attorney and the defendant’s attorney, both of whom testified as to the then value of the assets, which consisted of bonds and stocks and certain crypts in the St. Joseph Mausoleum. They differed very much in the value placed by them thereon. It appears that when the executrix qualified she had furnished a bond in the sum of $65,000, and that on her petition representing that the assets undistributed then in her hands were of the value of but $6,000 the probate court ordered this bond reduced to $10,000. It also appears that she was afterwards required to inventory certain bonds of the value of $21,000, but no additional bond had been required or furnished.
After the submission of proofs the trial court found that “it was abuse of discretionary'powers to have required the furnishing of an additional bond of $50,000,” and that, giving the testimony the most favorable consideration, he could not determine the amount of the bond that should be given. He therefore ordered the writ of mandamus to issue, commanding the probate judge to set aside the order requiring the furnishing of the additional bond and also the order “purporting to remove the said Carrie Brant Becht from office as executrix of said estate.” By leave of this court the defendant has appealed therefrom.
The statute (3 Comp. Laws 1929, § 15567) requires an executor to give a bond to the judge of probate “in such reasonable sum as he may direct.” The approval of the judge must be indorsed thereon (§ 15933). A new and additional bond shall be given whenever the judge “shall deem it necessary and proper” (§15944). Written notice of the requirement of such bond shall be given to the executor, and on the neglect or refusal to do so “the judge of probate may forthwith and of his own motion” remove the executor (§ 15945).
Section 15959 reads as follows:
“No appeal shall lie from any order of the probate court removing any executor, administrator, guardian or trustee for failure to give such new bond or render such account as may be required by order of such probate court in pursuance of law, nor from the appointment of special administrators or special guardians nor from an order granting a rehearing.”
The statute containing the first part of this section was enacted in 1887. That italicized was later added thereto. Its purpose is apparent. It was intended thereby to prevent the delay and expense incident to appeals from such orders. The legislature assumed that the judge of the probate court, with the records before him disclosing the assets of the estate, would require a bond sufficient in amount to protect the creditors and beneficiaries from loss.
Counsel for the defendant insists that the circuit court had no jurisdiction to issue the order to show cause. The right of appeal being thus denied, counsel for the plaintiff contend that review of the orders complained of may be had by the circuit court under the provision in our State Constitution, art. 7, § 10, which reads as follows:
‘ ‘ Circuit courts shall have original jurisdiction in all matters civil and criminal not excepted in this Constitution and not prohibited by law, and appellate jurisdiction from all inferior courts and tribunals and a supervisory control of the same. They shall also have power to issue writs of habeas corpus, mandamus, injunction, quo warranto and certiorari and to hear and determine the same; and to issue such other writs as may be necessary to carry into effect their orders, judgments and decrees and give them general control over inferior courts and tribunals within their respective jurisdictions, and in all such other eases and matters as the Supreme Court shall by rule prescribe.”
By denying the right of appeal from such orders of the probate court, the legislature could not impair or limit the jurisdiction of the circuit court conferred upon it by the constitutional provision. In the exercise of such control it has the right to issue the writs provided for therein, among which is that of mandamus. It does not appear that any case involving this statutory provision has been presented to this court.
This section is quite similar in its provisions to article 7, § 4, under which the Supreme Court is given “a general superintending control over all inferior courts,” with “power to issue writs of error, habeas corpus, mandamus, quo warranto, procedendo and other original and remedial writs, and to hear and determine the same.”
The power thus conferred upon this court has been frequently exercised to relieve against an abuse of discretion on the part of the circuit court. To warrant the granting of such relief it must appear that “there is a clear legal right in the plaintiff to the discharge of a clear legal duty by the defendant.” Smith v. Wagner, 234 Mich. 428.
“It is true that the Constitution has given this court a general superintending control over all inferior courts, but in the exercise of this jurisdiction it has never been claimed that this court can substitute its discretion for that of the inferior tribunal, and compel it to exercise and enforce our discretion, and not theirs. * * *
“The exercise of an honest judgment, however erroneous it may be, is not an abuse of discretion. ’ ’ Detroit Tug & Wrecking Co. v. Wayne Circuit Judge, 75 Mich. 360, 371, 379.
‘ ‘ To warrant such interference, the abuse ought to he so plain that upon consideration of the facts upon which the trial judge acted, an unprejudiced person can say that there was no justification or excuse for the ruling made.” Cooper v. Carr, 161 Mich. 405, 412.
“While it is the duty of this court to independently consider the record and pass upon errors assigned, that urged here peculiarly involves an ex ercise of judgment upon facts by the trial court in a discretionary matter, to disturb which it should affirmatively appear to the appellate court from the record that there was a palpable abuse of discretion, beyond excuse or reasonable justification.” Nosa v. Railway Co., 196 Mich. 104, 113, 114.
The record clearly discloses that the bond of the executrix at the time these orders were made was insufficient. On the attention of the defendant being called to it, it was his duty to require an additional bond in such sum as would protect the estate against loss. In doing so, he but complied with the requirement of the statute, and there was no exercise of discretion on his part. And when he determined that an additional bond was necessary, it then became his duty to fix the amount thereof. In doing so, he took into consideration the assets of the estate which had been undisposed of as disclosed by the records in his office. He had no personal knowledge of their value. In accepting the estimate of values of the attorney, and fixing the bond therefrom, it may be said that he exercised a judicial discretion as that term is used in the decisions. It does not appear that he was in any way influenced by self-interest, caprice, partiality or prejudice. His testimony clearly shows that he was performing a duty imposed on him by the statute, and that he fixed the amount of the additional bond to be given at what he determined to be reasonable from the records and files in his court and the information given him as to values. On the record here presented, the trial court was no doubt justified in finding that it was in excess of that required to reasonably protect the estate, but that excess cannot, in our opinion, be said to be so great as to warrant a holding that he abused his discretion in the order made. Under the order of the circuit court he would be compelled to reduce it. But in what amount? A similar claim might he made as to any subsequent order, as counsel differ so greatly in the value of the securities held by the estate.
In view of the apparent purpose of the statute denying an appeal, we are impressed, on the facts presented, that the order of the trial court was not justified. It will be set aside and the cause remanded to the probate court for further proceedings under his order appointing an administrator de bonis non. Defendant will have costs of both courts.
Potter, North, Fead, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred with Nelson Sharpe, C. J. Wiest, J., concurred in the result. | [
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Edward M. Sharpe, J.
Elizabeth Hayes, plaintiff’s decedent, died February 12, 1932; she left a will appointing plaintiff executor. Prior to January 29, 1929, defendants, Anna E. Skeman, daughter of Elizabeth Playes, and her husband, Roy G. Skeman, borrowed from decedent $3,600 and gave their promissory note therefor; renewals of this note were given from time to time and upon the death of decedent the note could not be found, defendants claiming that on January 28, 1932, the decedent canceled the note, while plaintiff claims that the defendants by fraud and deceit caused the decedent to sign an order allowing them to have access to her safety deposit box and fraudulently destroyed the note.
When the cause was tried, the note not being in the possession of the executor, he called the defendant, under the statute (3 Comp. Laws 1929, § 14220), who testified that she did not know where the note was and could not produce it; thereupon plaintiff attempted to establish his case by the next best evidence through the defendants who were the only persons who knew the facts or could testify as to the amount of the note; but when asked as to the amount of the note the trial court sustained objections made by defendants’ attorney that the testimony sought were matters equally within the knowledge of the deceased and prohibited by provisions of 3 Comp. ■ Laws 1929, § 14219. Plaintiff also sought to elicit from the defendant witness the fact that the mother paid $40 a month for her room and board during the time the decedent lived with defendants. The trial court also sustained objections made by defendants ’ attorney for the same reasons as stated supra.
The only question to decide in this case is, may an executor plaintiff elect to waive the benefit of the provisions of 3 Comp. Laws 1929, § 14219, by cross-examining the opposite party when the action is for the benefit of the estate and the testimony of the opposite party is necessary to establish the claim against such opposite party and compel said opposite party to testify as to matters equally within the knowledge of the deceased?
The statute above referred to states that “the opposite party, if examined as a witness in his own behalf, shall not be admitted to testify” and is silent on the question as to whether the opposite party may be examined as a witness in behalf of the estate against which he has attempted to assert a claim.
The general rule is that an administrator cannot waive the statute of limitations, McGee v. McDonald’s Estate, 66 Mich. 628, nor can he waive the provisions of the statute Avhich prohibits a claimant against the estate from testifying to facts, tending to support the claim, Avhich were equally within the knowledge of the deceased, McHugh v. Dowd Estate, 86 Mich. 412, thus the purpose of the statute is for the protection of estates.
This court has held upon many occasions that where the representative of the deceased cross- examines the opposite party he has waived the benefit of the statute. See Fox v. Barrett’s Estate, 117 Mich. 162; Judd v. Judd, 187 Mich. 612; Rock v. Gannon Grocery Co., 246 Mich. 545; Shea v. Siller, 262 Mich. 279; McHugh v. Dowd Estate, supra; Harper v. Corcoran, 166 Mich. 474. There may be instances where, in order to protect the estate, it becomes necessary to call the opposite party to testify as to matters equally within the knowledge of the deceased. We think the language used in Fox v. Barrett’s Estate, supra, 163, wherein the court said:
“The statute in question was designed to protect estates, by excluding the testimony upon the subject known equally to the claimant and the deceased party. If, however, the representative of the deceased wishes, he may compel the living party to testify; but in that case he cannot prevent such party from giving a full explanation of the subject inquired about, ’ ’ correctly states the law.
See, also, Jonescu v. Orlich, 208 Mich. 89.
Defendants next contend that Anna E. Skeman is an heir within the meaning of the statute and as such is entitled to just as much protection as the estate. Perkins, Evidence by Survivor, § 22 (p. 18), defines an opposite party as “one whose personal and financial interests, either immediate or remote, are in antagonism to the like interests of a protected party to the controversy.” The fact that claimant against an estate for service rendered to deceased is also an heir does not change the relationship as an opposite party within the meaning of 3 Comp. Laws 1929, § 14219.
In the instant case the interests of the defendant, Anna E. Skeman, are opposed to the interests of the estate; were she to prevail, the result would be to deplete the assets of the estate and thus nullify the protection to the estate for whose benefit the act was passed.
For the error pointed out, the judgment must he reversed and a new trial granted, with costs to appellant.
Nelson Sharpe, C. J., and Potter, North, Fead, Wiest, Butzel, and Bushnell, JJ., concurred. | [
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Edward M. Sharpe, J.
Prior to February 18, 1928, Edward Snell had a policy of insurance with the defendant company, paragraphs B and H of which read as follows:
“Notice of Loss.
“B. Upon the occurrence of an accident or loss under this policy the assured shall give immediate written notice thereof with full information obtainable at the time, to the company at its home office. Failure to so notify the company shall relieve the company of all liability hereunder. If a claim is made against the assured on account of an accident, the assured shall give like notice thereof with full particulars. If thereafter any suit is brought against the assured to enforce such claim for damages, the assured shall immediately notify the company at its home office if served with summons or other process, and the company will defend such suit whether groundless or not; the expense incurred by the company in defending such suit, including court costs and interest accruing after the entry of judgment will be borne by the company within the limits of liability expressed in the policy.
“Exclusions.
“H. It is specially understood and agreed that the company shall not be liable for damage to freight carried upon the automobile insured in this policy or while the same is being operated by any person under the influence of, or engaged in the transportation of intoxicating liquors; or by any person other than the assured, assured’s servants, employees, agents, and members of assured’s immediate family of lawful age and duly licensed, according to law. ’ ’
And on that date one Joe Thomas, a chauffeur of Snell, struck a car occupied by May and Alice Ketcham resulting in personal injuries to the Ketch-am's. Shortly after this accident Snell was killed in an aeroplane accident and his mother, plaintiff herein, was appointed administratrix of his estate. Later the Ketchams filed claims against the administratrix of the Snell estate for damages for such injuries and testimony was taken July 10, 19'30, and October 4, 1930. Awards were entered for said claims which were appealed to the circuit court. At the hearing before the commissioners on claims there was some evidence given by Alice Ketcham to, the effect that Joe Thomas was intoxicated at the time of the collision. The insurance company undertook the defense of the claim.before the commissioners on claims and continued throughout until the first trial in the circuit court on April 13,1932, when the cause was declared a mistrial. In the meantime Pelton & McGee, attorneys-at-law of Pontiac, Michigan, in the county where the estate was being probated, acted for the administratrix of the estate whenever called upon to give advice or draw legal papers.
On May 7, 1932, the insurance company notified Mr. Pelton of the firm of Pelton & McGee, by telephone, to the effect that if intoxication was proven there would be no coverage. At no time did the insurance company notify the administratrix of the estate personally that they denied liability. The cause was tried again on May 12, 1932, with the insurance company representing the estate and resulted in a verdict for plaintiff.
The record also discloses that the administratrix of the estate consulted the insurance company before and after the hearing before the commissioners on claims and was given some assurance that the company would take care of the claim.
The defendant company, first, contends that there was no waiver of the provisions as stated in clause H of the policy and, second, that snch an action as was instituted by the plaintiff in the instant case may not he maintained directly by the estate of an insured against an insurer for the amount of the judgment recovered by a third party.
In the discussion of this case we may assume that provision H of the policy which limits coverage when the automobile is being operated by any person under the influence of intoxicating liquors is a valid provision. See Ross v. Michigan Mutual Auto Ins. Co., 224 Mich. 263; and the next question is, has the plaintiff established a waiver by the defendant of its defense under the policy of insurance? We think the true rule is stated in Fidelity & Casualty Co. of N. Y. v. Board of County Road Com’rs of Schoolcroft County, 267 Mich. 193, where this court said:
“It seems to be well settled also that when an insurer, although obligated to defend under the terms of its policy, with knowledge of or means of ascertaining facts which, if established, will relieve it from liability at the suit of the insured, undertakes and prosecutes the defense, without giving reasonable notice to the insured that it does not consider itself liable to it under the policy, it is estopped to deny its liability. But if notice be given that in the event of certain facts being established it will disclaim liability and the insured, after such notice, makes no objection to its further defense of the action or proceeding, no estoppel can be based thereon. ’ ’
The defendant claims that this case is governed by Kidd v.Minnesota Atlantic Transit Co., 261 Mich. 31, wherein the court said:
“An insurer which denies its liability under the provision of its policy under consideration, before judgmént, and while the insured has sufficient time to protect its interest at the trial of the cause by providing its own counsel, or otherwise, is not estopped, in an action against it on the policy, to plead this provision as a defense in an action upon the policy, although it may have assumed the defense of an action against the employer by an employee. ’ ’
But in the case at bar, the insurance company assumed the defense before the commissioners on claims with sufficient knowledge of the claim of intoxication as a possible defense. This was in July, 1930. They continued to assume the defense on appeal through a trial that was declared a mistrial. This was in April, 1932. The first noncoverage notice was May 7, 1932, just a few days before the second trial and no such notice was personally given to the insured. We think that after assuming liability under the insurance policy for more than four years, during which time the assured was not allowed to direct her defense, that the notice finally given to the assured through attorneys Pelton & McGee did not give them sufficient time to protect her interests, and the insurance company is now estopped from insisting upon the breach of the policy on the part of the insured.
The record does not disclose that the estate has paid the two Ketcham judgments or that the estate has assigned its claim to the Ketchams, and we may assume that neither has been done. This is a direct proceeding by the insured to determine the liability of the insurance company and to collect the loss or liability created as a result of the accident as of February 18, 1928. In Exo v. Detroit Automobile Inter-Insurance Exchange, 259 Mich. 578, the insured assigned their rights under the policy to the plaintiffs (the injured parties) in the original ease and this court permitted the plaintiffs to recover directly in an action against the insurer. The court also held, in that case, that on the death of the automobile owner the administrator of his estate stood in his place, and had a right to demand that the insurer meet its responsibilities to those having claims against the estate arising out of the accident.
Our statute (3 Comp. Laws 1929, § 13686) also provides that judgments in the circuit court may he paid and satisfied by payment of the same to the clerk of the court, whether or not the amount so paid is paid directly to the administratrix of the estate and plaintiff herein or paid to the injured parties is of no concern to the defendant. It is discharged thereby. Moreover, the provisions of bur probate law provide for the collection in the hands of the administrator or executor of all the assets of the decedent (3 Comp. Laws 1929, § 15589). Foreman Brothers Banking Co. v. Handy, 229 Mich. 635, 641. In fact it is one of his duties to so do.
Judgment affirmed, with costs to plaintiff.
Nelson Sharpe, C. J., and Potter, North, Peap, Wiest, Butzel, and Bushnell, JJ., concurred. | [
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Fead, J.
This is review of a retrial of the case reported in 263 Mich.' 484, in which the facts are stated. Only a brief resume is here required.
Defendant is a manufacturer of office furniture, located in Grand Rapids. Plaintiff had worked for it some years and was its sales representative, with defined territory, which included Detroit. His duties were to promote the interests of defendant generally in the district and to increase its sales, not only by personal solicitation of business but also by visiting the cities in his territory, appointing, instructing and assisting dealers. He worked on commission, computed on all of certain sales in his district, whether made by himself or a dealer or received directly by defendant from customers. Defendant issued a catalog of the furniture it manufactured, including also some goods made by Robert W. Irwin Company, a concern allied to it by common stock ownership and officers. It also took orders for specially designed goods which it had others make for it. Defendant took an order of furniture from the Union Trust Company of Detroit, which included both cataloged and special furniture, the latter afterward made by the Irwin Company from drawings. Plaintiff was paid commission on the former but claims right to commission on the whole order. The sole issue between the parties is one of fact, whether the commission contract covered (a) all office furniture, or (b) only cataloged furniture.
Plaintiff originally declared upon both express contract and the quantum meruit. Upon the latter, at the first trial, he gave testimony of the labor he had performed on the Union Trust Company order and its value. This court held that, as both parties claimed an express contract, quantum meruit would not lie, and the testimony was incompetent.
Upon the second trial, everyone recognized that quantum meruit was not involved. But plaintiff, on plea of proving the contract by showing how the parties had treated it and by way of implied admission, again, but in a different manner, introduced most of the evidence held incompetent on the former trial respecting the amount and character of the work done by him on the Union Trust Company order and developed the fact that he had originated negotiations for the order and was largely instrumental in defendant getting it. He did this by showing conversations between plaintiff and officers of defendant throughout the course of the negotiations wholly apart from any discussion about commissions. Plaintiff also emphasized that, in such conversations, defendant did not warn plaintiff he would receive no commission for the noncataloged goods.
Under the contract, as claimed by either party, the sole issue was as to the character of the furniture upon the sale of which commissions were to be paid. In either view of the agreement, it was plaintiff’s duty to do what he did in connection with the Union Trust Company order. The work he did, therefore, could have no force in proving the character of the contract. Nor can the failure of defendant to warn plaintiff he would not receive commissions on the noncataloged goods be considered an implied admission that he was entitled to commission thereon. Defendant had no duty to call plaintiff’s attention to the terms of a contract which had been in force and acted upon for a considerable time. Unless and until plaintiff demanded commission on the noncataloged goods, no inference of con cession could arise from defendant’s failure to mention the subject.
Plaintiff’s evident purpose in presenting the testimony was to convince the jury that he was responsible for the order and ought to be paid for it. In other words, the effect was to seek recovery indirectly on the quantum meruit although it had- been eliminated from the case. The testimony was reversible error.
Defendant complains of plaintiff’s argument to the jury that defendant’s version of the contract was unreasonable because defendant had-the sole determination of the goods it should catalog. The contract being oral and in dispute, the surrounding circumstances could be shown. Plaintiff’s argument was rather close to the line of contending what the contract ought to have been rather than what it was, but the court made the issue plain to the jury and we think the argument was not reversible error in itself. Its principal evil effect was in adding prejudice to the veiled claim of quantum meruit.
A pamphlet issued by defendant, called “ Macey’s Monthly,” was received in evidence. It is not set up in the record. Excerpts quoted have no bearing upon the issue. The other points are not likely to arise on new trial and need no discussion.
Reversed, with costs and new trial.
Nelson Sharpe, C. J., and Potter, North, Wiest, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred. | [
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Reid, C. J.
Plaintiff filed her declaration in this suit at law to- recover damages apparently for the value of her stock in defendant corporation, which stock she claims the defendant declared worthless, plaintiff further claiming that a bankruptcy proceeding in Federal court in which a reorganization of defendant company was effectuated under section 77 B of the bankruptcy act (now chapter X of said act) is void as to plaintiff for want of service of notice on her. From a summary judgment for defendant, plaintiff appeals.
Plaintiff claims that on May 15, 1930, she purchased 45 shares of the common stock of the defendant Peerless Cement Corporation, incorporated under the laws of the State of Michigan. Not hearing* from the corporation for a long period of time, she wrote a letter, on January 28, 1947, through her counsel, to the said corporation.
Plaintiff’s claim that the “defendant has now declared said stock worthless,” seems to rest on the fact that in reply to her said letter, a letter was written on February 4, 1947, by attorneys for the defendant (attached per copy to the declaration) in which defendant’s attorneys recite the reorganization in bankruptcy of the defendant corporation and give their opinion that the stock is worthless.
The stock was declared cancelled by the order of the Federal court hereinafter referred to, dated November 12, 1940.
On February 1, 1935, an involuntary petition in bankruptcy, under the provisions of section 77 B of the bankruptcy act was filed against said defendant corporation in the United States district court for the eastern district of Michigan, southern division, cause No 18,683, which said petition was filed by reason of the then insolvent condition of said defendant corporation.
Thereafter, on Jnly 23,1935, a plan for reorganization of said defendant corporation was filed with the Federal court and on November 8, 1935, said plan for reorganization was duly ratified and confirmed by said Federal court.
Plaintiff claims that she did not receive any of the notices required by law, of the bankruptcy proceedings or the reorganization.
Plaintiff nowhere denies that notice of the pend-ency of the reorganization proceeding was addressed and mailed to her in accordance with the orders of the bankruptcy court. She denied having personally received such notice.
On April 8, 1947, the suit at bar was started in the Wayne circuit court by declaration for $5,000. Defendant filed its answer on May 17, 1947. Plaintiff filed a reply to defendant’s answer on May 28, 1947; on May 28, 1947 plaintiff filed a demand for trial by jury.
On December 17, 1948, a pretrial hearing was had before the Honorable Joseph A. Moynihan, circuit judge; on February 7, 1949, defendant filed a motion for summary judgment. On March 8, 1949, plaintiff filed affidavit of merits in opposition to motion for summary judgment under Court Pule No 30, § 7 (1945).
On March 8,1949 a hearing was had on the motion for summary judgment before the Hon. Frank Fitzgerald, circuit judge, at the conclusion of which the court rendered its opinion. On March 11, 1949, the circuit court entered a judgment of no cause for action.
On March 30, 1949, plaintiff filed a motion for a new trial. On April 14, 1949, the circuit court entered an order denying the motion for a new trial. This is an appeal from the judgment entered March 11, 1949.
The order of the Federal court dated November 12, 1940, recited inter alia that,
“All securities of Peerless Cement Corporation which on this date have not been exchanged under the plan of reorganization be and the same hereby are cancelled excepting the securities held by the following people in the following amounts: * # * [the names of plaintiff and her deceased husband do not appear in the list of holders of stock].
“It is hereby further ordered, that the debtor be and it hereby is discharged from all its debts and liabilities and all the rights and interests of stockholders of the debtor are hereby cancelled except as provided in the plan of reorganization or in the order confirming said plan. * * *
“It is hereby further ordered that all persons having claims against or holding the securities of Peerless Cement Corporation be and they hereby are permanently enjoined from proceeding against Peerless Cement Corporation or attempting to collect any claims or make valid any securities except under the plan of reorganization confirmed by this court.”
The Federal court in bankruptcy lawfully acquired exclusive jurisdiction of the debtor (defendant) and its property under section 77 B of the bankruptcy act (now chapter X). Defendant corporation appeared in Federal court, filed its answer and consented to relief under section 77 B of the bankruptcy act, March 22, 1935.
Plaintiff does not plead nor assert that the defendant corporation was in fact possessed of assets at the time of the inception of the bankruptcy proceedings nor at any time during the pendency of those proceedings, sufficient to pay its debts. Plaintiff does not plead nor assert that her stock would have been of some value if the Federal court had not can-celled defendant’s debts.
The Federal court did not waive jurisdiction hut on the contrary expressly enjoined suits such as plaintiff herein brings.
Plaintiff violated the injunctive order of the Federal court made in the bankruptcy proceeding by bringing the instant suit, and plaintiff is here making’ a collateral attack on the judgment of that court, which Federal court has exclusive jurisdiction of the bankruptcy matter in question. The circuit court correctly refused to' pass upon the merits of the claim of plaintiff as stockholder. If plaintiff has any meritorious claim against defendant still not waived, lost or outlawed, she must urge it before the Federal court.
Summary judgment for the defendant was properly entered. Judgment for defendant affirmed, with costs to defendant.
Boyles, North, Dethmers, Btjtzel, Carr, Bushnell, and Sharpe, JJ., concurred. | [
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North, J.
In this divorce case, after hearing on the merits, plaintiff wife was decreed a divorce from the bonds of matrimony and an adjustment of prop erty rights. Defendant has appealed. In substance defendant’s contention is that the testimony was not “sufficient to form the basis for the equitable relief” granted plaintiff, either as to the divorce or the property adjustment decreed.
Plaintiff and defendant were married in Detroit, September 6, 1941, and have continued their residence in that city. At the time of the marriage plaintiff was approximately 23 years of age and defendant approximately 59. No children were born of the marriage. Final separation occurred on Easter Sunday, 1947, at which time plaintiff left the home of the parties. She filed her present bill of complaint in June, 1947. A former suit for divorce started by plaintiff in June, 1946, was discontinued in consequence of a reconciliation between the parties in August, 1946. Defendant is a dentist. For approximately 2-J years prior to the marriage plaintiff was employed as an assistant in defendant’s office. She continued in that capacity during substantially all of the period that the parties lived together. At the time of the marriage she was receiving $20 per week, but her compensation was subsequently increased so that at the time of the separation defendant was paying plaintiff $50 per week. Plaintiff testified: “I didn’t have to take care of the household at all because his mother managed the home. He paid his mother room and board for he and I. Dr. Stewart did not buy any of my clothes. I purchased my clothes out of my salary, that’s what I had to use my salary for.”
The ground upon which plaintiff sought and was granted divorce was extreme and repeated cruelty. According to her testimony these parties almost continually, at least very frequently, quarreled with .each other. These quarrels arose in consequence of the defendant’s remarks and general attitude by which he belittled plaintiff and her family, in effect saying that her parents were just “of riff-raff type.” Plaintiff also testified that quarrels arose between the parties in consequence of the defendant insisting that plaintiff work unusual and unreasonably long hours at the office. And plaintiff contends that as a result of her arduous tasks at defendant’s office her physical welfare was greatly impaired. She admits that at times there were physical encounters between these parties, but explains her conduct in that particular by saying that the unkind attitude and nagging of her husband irritated her beyond the point of self-control. Plaintiff does not seriously controvert defendant’s charge that about 2 months after the August, 1946, reconciliation, plaintiff, while at home “ill with the flu” with a 103-degree temperature, became intoxicated from the use of whiskey that was in the household, and that while so intoxicated she assaulted defendant and injured him by throwing and striking him in the face with a water 'glass. Plaintiff’s testimony was that she was in such a condition that she did not “have a true recollection” of what did happen on the occasion just above noted. It was at this time plaintiff left defendant and went to the home of her parents.
On the other hand, there is testimony in the record of earlier assaults of defendant on plaintiff, on one occasion striking her in the face which resulted in a broken nose. In the main plaintiff’s charges of acts of extreme and repeated cruelty on the part of defendant are denied by him.
Except as there are references herein to certain phases of the testimony, no profitable result would be obtained from a detailed review of the charges made by the respective parties. In the testimony there is such a marked degree of conflict that there was left a large margin for the trial judge to pass upon the credibility of the respective witnesses; and the trial judge had a much better opportunity to function in that capacity than this Court has. We think it is a fair inference that wherein there was material conflict the trial judge placed more credence in the testimony in behalf of plaintiff than that in behalf of defendant.
Our review of this record brings the conclusion that the fundamental cause of the wrecking of the marriage relation between these litigants was defendant’s insistence that plaintiff work as an employee in his office, and in that connection imposed upon her arduous duties, including working under disagreeable conditions and for unreasonably long hours, which led to the impairment of plaintiff’s health, who at certain times was under a doctor’s •care. On this phase of the record plaintiff’s testimony in part is as follows:
“Q. Now, at the time or shortly prior to the reconciliation, while talking to Dr. Stewart about the reconciliation, did you talk to him about your working in the office ?
“A. Yes, I was promised definitely by Dr. Stewart that I would not have to return to the office, that he wanted me to be in the home; that he had 2 girls that were working for him and he was satisfied with their work and he didn’t want me to come into the office unless there should be a very definite emergency.”
To the contrary defendant testified:
“Q. And as part of that reconciliation didn’t you tell her that she wouldn’t have to go back to the office?
“A. No, sir. I told Mrs. Stewart, on our way up north, that she would come back to the office after we came back from our vacation. We planned that on the way north and talked about it on the way back. * * * She never complained about the work in the office.”
Incident to the August, 1946, reconciliation between these parties they signed what purported to be an agreement adjusting their respective property rights. Concerning this agreement plaintiff testified:
“Dr. Stewart told me that he wanted to have a little agreement drawn np between the two of ns where we wouldn’t separate any more * * * so that we wouldn’t have any more of these separations and there wouldn’t be a divorce started again.”
The agreement was prepared by defendant’s attorney, and later signed in the attorney’s office. The following is from the prefatory recital in the instrument :
“Whereas the parties hereto, being husband and wife, have had differences and misunderstandings which have culminated in a divorce action being instituted by the wife against the husband * * # and Whereas the parties wish to become reconciled and desire to adjust their property rights and make an amicable settlement thereof and resume the marital relationship; * * * it is mutually agreed as follows.”
By the terms of the agreement, in consideration of the defendant giving to plaintiff a diamond ring represented in the agreement to be of the value of $3,000, but later by appraisal shown to be of much less value-—approximately $1,500 or $1,800, plaintiff released any and all her rights, including dower rights, in defendant’s property “whether the same be heretofore or hereafter acquired.” In addition to giving plaintiff the diamond ring, defendant also agreed to do that which he was already legally bound to do—i.e., “to support'his said wife properly * * * as long as she lives with him as his wife.” At the time of executing the property settlement defendant was possessed of properties of substantial value, the details of which will be more particularly noted later herein. The record concerning the property settlement is such that we think, as also did the trial judge, if it was not fraudulent as against plaintiff’s rights, it at least was decidedly overreaching as to her interests; and is quite indicative of defendant’s attitude toward his wife. Defendant testified:
“I did not tell her (prior to the execution of the property agreement) that she was to sign off all her rights in my property. I told her the agreement that was to be signed was to be that she was to relinquish her rights # * * just on the Dexter boulevard property. * * * I first discussed it with Lela at our home and we thought if we had an agreement to preserve our marriage, that kind of an agreement would help to preserve our marriage and keep us from having any more divorces or any kind of domestic trouble.”
While it was not mentioned in the agreement as drafted and executed, the testimony is to the effect that the defendant simultaneously with entering into the agreement promised that he would make a will leaving all of his property to plaintiff in event of his predeceasing her; and the record is to the effect that defendant did make such a will, which had not been revoked or destroyed at the time of the trial of the case.
On this appeal defendant has taken the position that because there was adequate consideration for the property agreement it was still binding upon plaintiff; that the trial court could not set it aside ; and therefore the disposition of property rights decreed by the trial judge could not be sustained.
A careful review of the record brings the same conclusion as that reached by the trial judge as to the divorce issue. Under all the circumstances disclosed by this record, notwithstanding plaintiff may at times have indulged in conduct which can hardly be approved, we think she established her right to a decree of divorce on the grounds of extreme and repeated cruelty.
As bearing upon the equity of the property settlement decreed by the trial judge, the record discloses the following. Many years prior to the marriage of these parties defendant had acquired a large tract of land. Including 40 acres purchased after the marriage of these parties, defendant owned approximately 320 acres of land in Mackinac county, Michigan, about 6i miles from St. Ignace. The testimony as to the value of this property varied widely. Plaintiff testified that defendant told her “he felt that the value of his property was $125,000 or $150,000 or $175,000.” It seems fairly certain the actual value is much less than the figures just noted. Defendant testified that at a time when he and plaintiff, after their reconciliation,' considered disposing of this northern Michigan property: “We thought maybe we could get $75,000, $85,000, but it wasn’t salable at that. I have no value on the property particularly because it isn’t salable and I have no offers and it is an abandoned farm at the present time.” There is other testimony from which it might well be inferred that the fair market value of the northern Michigan property was not in excess of $10,000. ' Besides some farm buildings of the ordinary type, there is a lodge on this property. Cecil Smith, who was the treasurer of the township in which the property is located, and who was employed by defendant as the caretaker of the property, testified that the value of “the lodge itself without the barn” would be $15,000. In 1946, this real estate was assessed at a valuation of $3,925.
Defendant is also the owner of a one-half interest in residential property on Dexter boulevard, in the city of Detroit. He made this purchase about the time these parties were married, the total purchase price being $9,500. At the time of the trial the prop erty was subject to a mortgage on which there was an unpaid balance of $5,557.27. It is stated in defendant’s brief that: “The Dexter avenue property * # * [is] worth $13,000.” In addition to the above defendant is the owner of an automobile, household effects and furnishings, and incident to his profession as a dentist has a substantial income. For each of the years 1946, 1947 and 1948, his average net income, as disclosed by his income tax returns, was substantially $5,000. In 1945 and 1946, defendant’s gross income was between $24,000 and $25,000.
As to property rights, the decree entered in the circuit court vested in defendant sole ownership of all of his property, including certain diamond rings in the possesion of plaintiff, with the exception that it decreed to plaintiff a one-half interest as tenant in common with defendant in the Mackinac county property. By the decree all of plaintiff’s dower rights, present or prospective, were terminated, and defendant was released from payment of all alimony. As against the rights of defendant, it cannot be said that the disposition of the property rights made by the trial judge was inequitable.
Incident to the decreed tenancy in common, the decree provided that in lieu thereof defendant might pay plaintiff $16,000 within a limited time after decree. Defendant now contends that the amount as decreed was too large and “has no support of any kind on this record.” Since this provision was no more than an option afforded defendant, he has no meritorious ground for complaint. He could exercise it or not as he chose. And further, partition proceedings are available to either party.
We are not in accord with defendant’s contention that since the property settlement incident to reconciliation was entered into by plaintiff for a valuable consideration, the trial court was without power to set the agreement aside or to include in the decree an adjustment of property rights which was not in accord with the property settlement. In the instant case there was not only misrepresentation, later discovered by plaintiff, as to the value of the diamond ring given to her and now asserted by defendant .as constituting in part consideration for the settlement agreement; but under plaintiff’s testimony, in direct conflict with the understanding had between the parties, she was required to resume the same strenuous office duties which in the first instance were at least a major cause of the domestic troubles between plaintiff and defendant. In that respect the instant case differs materially from Jobb v. Jobb, 199 Mich 555, relied upon in defendant’s brief. In that case it was noted:
“There is no charge in the present bill that the acts of personal violence have been repeated, nor is there any other act of cruelty alleged since that time which would revive her right to count and rely upon the charges in her first bill. In view of this the condonation would appear to be a complete defense. Eistedt v. Eistedt, 187 Mich 371.”
In the instant case it was rather strange that in the agreement as to property made incident to the reconciliation, no mention was made of defendant’s promise to make plaintiff his sole testamentary beneficiary. And as just above noted, there was misrepresentation as to the value of property given by defendant to plaintiff at the time. And more important, defendant subsequent to the reconciliation, in violation of their mutual understanding, insisted upon plaintiff resuming work at his office, which, according to plaintiff’s testimony, impaired her health and resulted in domestic turmoil. Under such circumstances defendant is in no position to insist upon a further reconciliation, instead of plaintiff being granted a divorce. The trial court in divorce cases is vested with authority by statute to make an equitable adjustment of the property rights of the parties in lieu of dower rights, as was done in the instant case, incident to granting a divorce. See CL 1948, § 552.101 (Stat Ann 1949 Cum Supp § 25.131). Also, Belting v. Wayne Circuit Judge, 245 Mich 111.
Further, in view of defendant’s subsequent disregard of the conditions of the reconciliation, it was not improper for the trial court to take testimony as to matters affecting the marital relations of the parties which occurred prior to the reconciliation.
“ ‘All condonation, especially the implied, is upon the condition both that the offense shall not be repeated, and likewise that continually afterward the party forgiven shall treat the other with conjugal kindness; whereupon a breach of the condition revives the original right of divorce.’ 2 Bishop, Marriage, Divorce & Separation, §§ 308, 309, and notes.” Creech v. Creech, 126 Mich 267.
“The grounds for divorce in a former suit by plaintiff, which was discontinued, where reconciliation and condonation followed a property settlement, were revived by a breach of the conditions of the condonation by defendant.” Power v. Power (syllabus), 217 Mich 597.
Other issues presented in defendant’s brief have been considered but found to be without sufficient merit to constitute grounds for reversing or modifying the decree entered in the circuit court. The decree as entered in the circuit court is affirmed, but with the right of the trial judge to modify the decree by granting further time within which each of the parties may comply with various provisions therein as to which the time limit has already expired. Appellee may have costs of this appeal.
Boyles, C. J., and Reid, Dethmers, Butzel, Carr, Bushnell, and Sharpe, JJ., concurred. | [
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Boylés, J.
Plaintiff sued the city of Detroit and' Jay Are Paper Company to recover damages resulting from injuries sustained by plaintiff due to defects in a sidewalk in Detroit along the front of the paper company’s premises. The city moved to dismiss the' suit on the ground that it had not been begun within the statutory limitation of time for starting such actions and the paper company moved to dismiss on the ground, inter alia, that there was no primary duty on its part to maintain or repair the sidewalk. The trial court granted both motions and' the plaintiff appeals.
The declaration alleges that plaintiff’s injury was sustained on October 14, 1947. The suit was started May 5, 1950. Insofar as it alleges liability of the citv, it is based on chapter 22 of PA 1909, No 283 (CL 1948, §§242.1-242.8 [Stat Ann §§9.591-9.598]). Section 1 of this chapter creates the liability of townships, villages and cities for neglect to maintain public highways, streets, sidewalks, et cetera, in reasonable repair. Any such liability of a city is based on said statute—the duty of a city to keep its sidewalks in repair did not exist at common law. Rivard v. City of Bay City, 279 Mich 317.
Section 8 was added to said chapter by PA 1915, No 301 (CL 1948, § 242.8 [Stat Ann § 9.598]).' It concludes as follow;s: '
“All actions in court under this act must be brought within 2 years from the time said injury was sustained.”
Emphasis is here given to the concluding words of said limitation because they distinguish it from decisions in which, courts have considered the question as to when the plaintiff’s cause of action arose. The language in this statute is plain and leaves no room for judicial construction. However, it is interesting to noté that in some of the earlier cases decided by this Court, indicating that plaintiff’s cause of action did not arise until after expiration of the time within which notice of the injury must be given the city, or until the lapse of a reasonable time within which the city must act after having received such notice, the Court held that suit might be barred by the statute. For example, see Holtham v. City of Detroit, 136 Mich 17, and cases cited therein. The Court there held (syllabus):
“An action against a city for a negligent injury, barred because of plaintiff’s failure to give notice to the law department within the 3 months required by the charter, cannot be revived by the action of the council in consenting to consider the claim.”
And in Miller v. Village of Birmingham, 145 Mich 470, the Court reaffirmed said doctrine, by quoting from the Holtham Case, supra, as follows:
“ ‘An action of tort, once barred by the statute of limitations, cannot, like an action arising out of contract, be revived by either an express or implied agreement,’ citing Renackowsky v. Board of Water Com’rs of Detroit, 122 Mich 613; Van Auken v. City of Adrian, 135 Mich 534.”
Plaintiff relies on Springer v. City of Detroit, 118 Mich 69. The facts and circumstances distinguish it from the case at bar. In that case the injury was sustained in 1891. After our earlier decision in Springer v. City of Detroit, 102 Mich 300 (1894), a second suit was begun June 18, 1896, following an amendment of the city charter, effective September 1, 1895, providing for a time limit within which the claimant must begin suit, and also the time within which the claimant must give notice of the injury to the city. It excepted from its provisions suits for injuries for which there then existed a lawful cause of action and allowed further time for commence ment of suit. Decision hinged upon the question when the cause of action had accrued, whether based upon the time when the claim had been presented to-the city council and a reasonable time allowed the-city for investigation and decision. Among other things, the Court said:
“We have already seen there was no lawful cause of action, within the meaning of the statute, until a verified claim had been presented to the council, and. a reasonable time given them to investigate, and decide what the city would do. Both parties treated the investigation as though made within a reasonable time, and, as the delay was caused by the investigation, the city cannot set it up as a defense in this, action.”
In Klass v. City of Detroit, 129 Mich 35 (95 Am St Rep 407), the plaintiff sued the city of Detroit for damages resulting from personal injury received December 31, 1895, on account of failure by the city to keep a street in repair. The then statute limited, the time for bringing suit to 1 year from the time the injury was received. Suit was begun March 23,1897,. more than a year from the time the injury was received. The trial court directed a verdict for the defendant on the ground that the suit was barred by the statute. On appeal, the Court found that the city had not, by its delay in denying the claim, deceived the plaintiff into believing that suit was not necessary or thereby induced him to forego suit; and' that there was no intentional deception exercised by the city. In that respect, the case is the same as the-case at bar. In affirming the trial court, the Court said:
“The statute is an unambiguous limitation on the-right to bring an action after the lapse of a year. It was presumably known to the plaintiff and his counsel. The common council was under no obligation to- take any action, and, had it pursued that policy, the plaintiff could not maintain an action not begun within the statutory period. * * *
“The legislature has found reason for requiring .actions against cities to be promptly brought, and .a strict construction of its enactment would defeat all actions brought after the expiration of the period fixed by law. It is a legal maxim that nothing can interrupt the running of the statute of limitation, and it is commonly stated without any qualification. But the courts have ingrafted upon statutes of limitation an exception based upon estoppel. This seems to be limited to cases involving an intentional •or negligent deception, and the remedy used to be a bill in equity to enjoin the pleading of the statute. * * * There is an absence of anything in the nature of a promise to pay as a consideration for forbearance, and of anything in the nature of a recognition of plaintiff’s right of action. Unless we are to say that the statute is a bar in no case when negotiations are continued beyond or renewed after the period of the statute, we cannot sustain plaintiff in his contention, and we find no case justifying so broad a rule.”
In the instant case plaintiff’s suit was not begun within 2 years from the time the injury was sustained. The trial court held that plaintiff’s right to recover damages from the city for his injury was barred by the limitation of time within which to sue, provided for in the statute which created the right. Plaintiff claims that the delay in starting-suit was caused by the inaction and delay of the city authorities in investigating, considering and passing ■on plaintiff’s claim. However, the city made no false promises of payment, no inducements were held out to plaintiff to delay starting suit, no statutory inhibition intervened, and plaintiff could have filed his declaration by which suit was begun within the 2-year limitation.
“A positive distinction seems to be made between cases in which the limitation of time for bringing-suit is contained in the statute which creates the liability and right of action and general statutes of limitations of the rights of action existing under-other statutes or under the common law. In the former the limitation of time is a limitation of the-right, and, as has been said, the suit cannot be maintained if not brought within the time limited. In the latter the limitation of time for bringing suit is a limitation of the remedy only, and it has been held that under such general statutes of limitation the defendant may be estopped from the benefit of the statute by an agreement waiving it, or by concealment or by fraud. The statute here in question creates a new liability, and takes away defenses formerly available, and the right of action therein created is conditioned upon its enforcement within a prescribed period. The action not having been brought within such period designated by the statute, it is lost, and the trial court ruled correctly in so holding.” Bement v. Grand Rapids & Indiana R. Co., 194 Mich 64 (LRA 1917E, 322).
The trial court properly granted the city’s motion to dismiss as to the city, on the ground that suit was-barred by the statute.
Plaintiff’s declaration in a separate count alleges-that the paper company was the owner of the premises abutting the sidewalk in question; that it was so> constructed as to contain a large number of holes,, each approximately 3 inches in diameter, provided for the purpose of emitting light to the space below said walk, used and occupied by said paper company; that at the time of the injury some of said openings were covered by glass and others were without glass; that said openings were of such nature and size as to-permit a cane or crutch used by a pedestrian to be caught in said opening; and that plaintiff was injured when his crutch went into such an opening, resulting in his fall and injury. The declaration further alleges that because the sidewalk was thus maintained for the private use and benefit of the paper company, it had the duty to properly maintain it in a safe condition; and that the paper company was negligent in failing to maintain said premises in a safe condition for travel. For purposes of the paper company’s motion to dismiss, well-pleaded material allegations of fact in the declaration, but not conclusions, must be taken as true. Do they set up a cause ■of action? The trial court held not, on the ground that the owner of abutting property could not be held primarily liable for a failure to repair and maintain a sidewalk in a condition reasonably safe for travel.
Obviously, the dismissal of the suit as against the city leaves the case standing solely against the paper company. Hence, there is no occasion to further consider whether the city is liable in this suit, either separately or as a joint tortfeasor, to respond to the plaintiff in damages, or for contribution.
The gist of plaintiff’s claim here is that the trial court erred in dismissing the suit as to the paper company inasmuch as the sidewalk was built with glass prisms and maintained for the use and benefit of the paper company, and that there was therefore a duty upon the paper company to see that it was kept in repair. Quoting from plaintiff’s brief:
“It is the contention of plaintiff * * * that the owner of the abutting property, having made a particular use of the sidewalk for its private purpose, is liable with the city or independently for injury resulting from the defective condition of that portion of the walk so maintained.”
It was not the primary duty of the owner to so maintain and repair. As hereinbefore indicated, in this- State that duty is imposed upon the city, by statute; •
In City of Detroit v. Chaffee, 70 Mich 80, where the city of Detroit sued the owner of property adjacent to a sidewálk for neglect to repair a sidewalk after notice' from' thfe city, the Court in denying plaintiff the right to recover said:
“The right of the plaintiff to a recovery in this case depends upon the question whether it was the primary dqty of the defendant, as between himself and the plaintiff, to keep the sidewalk in front of his premises in repair, so as not to cause accident or injury to persons traveling over the same.
“Exclusive control of the streets, including the sidewalks, is by the charter conferred upon the common council of the city. It is entirely discretionary with that body to say when and where sidewalks shall be constructed in front of adjacent property.
“There is no duty imposed upon an adjoining own-, er,. or, liability created for neglect, either to construct or keep in repair a sidewalk at the common law. The duty and liability are exclusively statutory. This duty is first imposed upon the, adjacent landowner when the common council takes action under and in accordance with the provisions of 'the charter above quoted. When such action is taken, the duty to construct or repair'is primarily laid upon the adjacent owner.”
It is conceded that in the instant case the city had not given plaintiff any notice to repair, under the charter. „
“Plaintiff claimed to have been injured by falling into a hole in a- sidéwalk upon one of the streets of the defendant city, and opposite a vacant lot owned by the defendant Hubbard. His ground of liability against the city is the statutory duty to keep its sidewalks in condition fit for travel; against the defendant company, that it broke the sidewalk by driving its teams'across it; and against th'e defendant Hubbard, that he was the owner of the lot, and neglected to construct a sidewalk after service of notice upon him by the city to do so. * * *
“The lot owner cannot be sued by the injured party, because neither the common law nor the statute gives him the right of action. The charter nowhere, either directly or impliedly, authorizes or contemplates that the injured party may bring suit against the lot owner.” Lynch v. Hubbard, 101 Mich 43.
It is conceivable that if that were not the law, and if it was the primary duty of the owner of adjacent property to maintain or repair a sidewalk in front of his premises, on the ground that he received private use and benefit from the sidewalk, coincidental with its use by the public for travel, the landowner would not only have the right, but the duty, to make repairs, which might be against the best judgment of the municipal authorities.
Plaintiff relies on language in Fisher v. Thirkell, 21 Mich 1 (4 Am Rep 422), brought by an injured individual against owners of property abutting a sidewalk in Detroit. The plaintiff had fallen through a hole in the sidewalk used by the owners of adjacent premises for putting wood or coal into their cellar. The owners had made the excavation and put in the coalhole. Plaintiff alleged that they were liable for maintaining a nuisance, based on the common law. However, for reasons stated in the opinion, the Court held the owners not liable.
Other cases are also cited by plaintiff referring to the liability of owners of adjacent property for neglect to repair sidewalks which were constructed or maintained in part for the use and benefit of the owners of such abutting property. Generally, such suits were based on claims that the owners of property adjacent to a sidewalk were guilty of maintaining a nuisance under the common law, by failing to properly install, properly maintain or repair sidewalks which were also for use and benefit of such owners. They are not applicable under the declaration filed here by the plaintiff, joining the paper company with the city as defendants. There is no ■ allegation that the paper company was guilty of maintaining either a private or a public nuisance under the common law. Nor is there any claim of affirmative acts or active negligence on the part of the paper company as a basis for claiming damages against it, as in the Fisher Case, supra. In this State, the duty to maintain and repair sidewalks and the liability for failure so to do rests primarily on the municipality. Under the statute and the ordinances of the city of Detroit, the liability, if any, of the owner of adjacent property is secondary. Having properly dismissed the suit against the city, the court did not err in also dismissing plaintiff’s suit as against the paper company.
Affirmed.
Dethmers, C. J., and Adams, Butzel, Carr, Bushnell, Sharpe, and Reid, JJ., concurred.
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Reid, J.
Plaintiff filed her petition, with supporting papers attached, for a writ of mandamus to require defendant board to issue to her a certificate as registered nurse. We ordered defendant to show cause why the writ should not issue. Defendant filed its answer to the petition and therewith a return to the order to show cause with exhibits attached. Plaintiff made reply to defendant’s answer and return to the order. The matter was submitted as a motion on the pleadings thus filed and briefs of the parties.
The authority, powers and duties of defendant board are set forth in PA 1909, No 319, as amended by PA 1939, No 30 (CL 1948, §§ 338.351-338.362 inch [Stat Ann and Stat Ann 1951 Cum Supp §§ 14.681-14.692 inch]).
Section 2 of said act (CL 1948, § 338.352 [Stat Ann 1951 Cum Supp § 14.682]), among other things, contains the following:
“The board [i.e. defendant] shall make rules for the purpose of properly carrying out the intent of this act, for the examination, regulation, licensing and registration of nurses and trained attendants, for defining the minimum curricula of schools of nursing; shall provide for the accrediting of schools of nursing, and shall promote the standards of nursing and nursing education throughout the State.”
Section 3 of said act (CL 1948, § 338.353 [Stat Ann 1951 Cum Supp § 14.683]), among other things, contains the following:
“Second, An applicant may be registered and given a certificate of registration as a registered nurse who shall present a certified copy of or a certificate of registration or a license as a registered nurse from another State of the Union where the requirements for registration shall be deemed by the Michigan board of registration of nurses and trained attendants to be equivalent to those of this act, and all amendments thereto, at the time of said registration or license, upon payment of the fee of $15”
On December 15, 1948, defendant board received from plaintiff a formal application for registration as a registered nurse in Michigan, among other things reciting that she resided in Benton Harbor, Michigan, was born April 13, 1906, in Indiana, attended high school 4 years and received a diploma in 1921; attended college in Colorado 6 weeks summer course, also Colorado State Teachers’ College, nursing supervision; enrolled in 1927 in Good Samaritan Hospital (St. Joseph Memorial Hospital School of Nursing) at Kokomo, Indiana, and completed a 3-year course in nursing, May 1, 1930; none of her training was secured by affiliation; she had taken certain postgraduate courses as laboratory technician and nursing supervisor between 1930 and 1934; since graduation she had had institutional experience at the Elwood, Indiana, Mercy Hospital, vis., as a laboratory technician 2 years, on general duty 8 years, night supervisor and obstetrics 5 years; she had had 3 years’ experience on private duty at Fort Wayne, Indiana, and further experience since May 1,1948, as evening supervisor at the Mercy Hospital, Benton Harbor, Michigan.
Defendant board objected to plaintiff’s showing as to obstetrics and pediatrics. Some correspondence was had between the parties, and discussion of the suggestion that she pursue further courses in obstetrics and pediatrics in the University of Minnesota Hospital. Plaintiff filed with defendant board a certificate of Indiana for 1951 and, also, a certificate of Illinois for 1951.
A hearing was had on July 19, 1951, before defendant board, on which hearing it appeared that defendant board claimed plaintiff’s deficiencies were in the 2 subjects mentioned; that defendant had written plaintiff that if she could submit satisfactory credit for 6 months’ supplemental work, 3 in pediatrics and 3 in obstetrics, she would be granted registration in this State. Plaintiff thereupon stressed before the defendant board, that while defendant required a showing of training 3 months each in pediatrics and obstetrics, that plaintiff’s showing was in fact that she had such training. Defendant board stressed their requirements of segregated service in the 2 subjects under discussion. On the part of plaintiff, it was shown that there was segregation, obstetrics on the first floor. On the part of the board, it was urged that the hospital in which plaintiff received her training was a small hospital, not having 100 beds, and that affiliation in such case was requisite, i.e., training in another hospital where the requisite amount of experience and training would be acquired.
“Mr. Robinson [examining plaintiff] : This particular work was not in a large hospital?
“Miss Miller [plaintiff]: Since that particular time, Mercy Hospital at Elwood has 150 beds. I had to supervise obstetrics on the first floor and medicine and surgery on the second—their daily average was 100 beds. As far as experience, my word, I had complete charge of obstetrics. It was up to me to determine when to call the doctor. I’ve had plenty of experience. I worked 3 months at South Bend— that’s a large hospital, about 200 beds.”
Plaintiff’s renewal certificates from the State of Indiana for all the years since 1930, and including certificate for 1951, were before the defendant board, also the certificate from the State of Illinois for 1951.
Plaintiff urged that the board grant a Michigan certificate in view of the provisions of the second part of section 3 of the'statute hereinbefore quoted, and in view of the certificates presented from Indiana and Illinois in 1951.
The letter of defendant to plaintiff denying her a certificate is as follows:
“July 23,1951
“Miss Corinne Miller 808 Monroe
Benton Harbor, Michigan “Dear Miss Miller:
“The Michigan board of registration of nurses and trained attendants obtained from the State of Indiana the requirements for registration at the time of your registration in 1930. The board compared them with the requirements of the Michigan board of registration of nurses and trained attendants in effect at that time and upon comparison, one with the other, have found the Indiana requirements to be lower and not equivalent to those of Michigan as provided by PA 1909, No 319, as amended. Therefore your application for a certificate as a registered nurse under #6806, section 3, subsection 2, of said act, is denied.
“In making this decision the board considered also that since your original application was made in 1948 you had obtained from the State of Illinois on or about April 18, 1951, a certificate of registration in that State without examination, purely as a matter of reciprocity by the State of Illinois, and that therefore the qualifications and requirements for registration in Indiana in 1930 still controls the decision made on your application in the State of Michigan. Therefore they are still not equivalent to the qualifications and requirements of the Michigan board of registration of nurses as required pursuant to PA 1909, No 319.
“Very truly yours,
“Sister Mary Xavier Kinney, E.N.
“Chairman—Mary M. Anderson, E.N.
“Exec. Secretary.”
' Defendant board explicitly ruled that plaintiff’s 21 years of experience and training since her graduation in 1930 could not be considered, nor even her experience in charge of departments in which departments there were included obstetrics, medicine and surgery, in a hospital of 150 beds and an average of over 100 patients daily; her experience in such hospital was not considered by defendant as equal to affiliation. We cannot overlook the great advance in therapy in the period 1930 to 1951.
Defendant was in error in disregarding the certificate of Indiana of 1951 issued to plaintiff. There is nothing in the record which requires that it be disregarded as showing plaintiff’s standing at the time defendant board was conducting the hearing. There was no showing that the then present requirements of Indiana were inferior to those of Michigan. The comparative requirements of Michigan and Indiana in 1951 are to be considered as the test instead of the comparative requirements of Michigan and Indiana in 1930. The words in the second part of section 3 of the statute as above quoted, “equivalent to those of this act, and all amendments thereto, at the time of said registration or license,” (Italics supplied.) are considered to indicate such later test.
A nurse, having a certificate of registration from a State having equivalent requirements at the time of hearing, may not be denied registration in Michigan arbitrarily nor for any reasons other than those set forth in the statute referred to or necessarily implied therefrom.
It was and is defendant’s duty to issue to plaintiff the certificate for which she applied. A writ will issue, if necessary,- requiring defendant to issue the certificate. Costs to plaintiff.
Dethmers, C. J., and Adams, Butzel, Carr, Bushnell, Sharpe, and Boyles, JJ., concurred.
CL 1929, § 6806, as amended by PA 1939, No 30, is CL 1948, § 338.353.—Repórter. | [
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Carr, J.
This is a suit for equitable relief. The plaintiffs are the parents of defendant Juanita B. Winfree. They alleged in their bill of complaint that in August, 1941, their son, Bert Borngesser, Jr., a resident of Massachusetts, proposed purchasing a home for them in order that they might have a permanent place in which to live. At that time the house that they had been renting was offered for sale, and it became necessary for them to rent a flat. Subsequently they discussed the matter with the defendants, and it was agreed that the latter would assist them rather than the son.
The parties found property that was satisfactory, and negotiations were instituted for its purchase. A down payment of $800 was required, and defendants wished to borrow the balance of $5,200 from a bank on a mortgage executed under the Federal Housing Administration plan. Apparently some doubt arose as to whether defendants could comply with the requirements of such plan, and it was agreed that plaintiffs should join them as purchasers and execute the necessary mortgage and note as co-own ers. This plan was carried out and a deed of the property was taken designating plaintiffs, as husband and wife, and defendants, in like manner, as the grantees. The required note and mortgage in the sum of $5,200 were executed by the parties. It is conceded that defendants made the down payment, and from month to month plaintiffs turned over to defendants-sums equal to the monthly payments on the note, which amounts the record indicates were paid by defendants to the mortgagee. Plaintiffs went into possession of the property, and made expenditures for its improvement, in addition to their own labor, in an amount exceeding $500.
i
Approximately a month after the conveyance of the property to plaintiffs and defendants, the latter sought and obtained from plaintiffs a quitclaim deed of all interest that the plaintiffs had in and to the property, which deed was recorded 3 months later. The testimony is conflicting as to the reasons for the execution- of the conveyance. In their bill of complaint plaintiffs alleged that they did not know at the time that they were signing a deed, that they did not read it, and that it was not read or explained to them., They further ’ alleged, and testified on the trial, that defendants procured them to sign a paper, the nature of which they did not know, by representing that it was necessary to obviate future probate proceedings with reference to the property. It is a fair inference from the testimony of plaintiffs that they were willing that defendants should be sole owners of the property after plaintiffs, or the survivor of them, occupied it as a home for the balance of their lives. Defendants asserted in their answer, and testified in substance, that it was agreed prior to the time that the property was deeded to the parties that plaintiffs should execute a conveyance of their interest, that the purchase was made in reliance on such understanding, and that the quitclaim deed was executed for the purpose of carrying out the agreement. On the trial of the case plaintiffs denied that any such agreement was made.
The relations between the parties continued on a friendly basis until 1946, plaintiffs occupying the property as their home and making, as they claimed, the monthly payments on the mortgage note. In October, 1946, defendants for the first time undertook to register with the Federal Office of Price. Administration, as rental property, the home occupied by the plaintiffs. Thereupon plaintiffs asserted that they were not tenants, but were the owners of an interest in the property. Because of the dispute between the parties the registration was not effected. Defendants then served notices on the plaintiffs to terminate tenancy and to vacate the property for nonpayment of rent, and thereafter instituted an ejectment proceeding in the circuit court of Wayne county. The instant suit in equity was then brought by plaintiffs, and apparently the prosecution of the law action has been held in abeyance. In their pleading plaintiffs asked that they be decreed to be the owners of a life estate in the property, and that defendants be required to execute a proper conveyance to evidence such interest. Plaintiffs also requested “such other and further relief in the premises as to this court shall seem just and equitable.” Defendants by their answer denied the material averments of the bill of complaint. They also filed a cross bill seeking a decree for damages on the ground that plaintiffs, by asserting an interest in the property, had prevented defendants from selling it at a substantial profit.
The trial court came to the conclusion, after listening to the proofs of the parties, that plaintiffs were not entitled to a decree in accordance with the specific prayer for relief, but that the quitclaim deed was procured by fraud and deceit and should be set aside, and that the cross bill should be dismissed. A decree was entered accordingly, and defendants have appealed. It is their claim, in substance, that the findings of fact by the trial judge ar.e not supported by the record, and that a decree should be entered in this Court dismissing the plaintiffs’ bill of complaint.
As before noted, the testimony of the parties, with reference to the execution of the quitclaim deed, was sharply in dispute. Plaintiff Bert Borngesser testified in part as follows:
“Mrs. Winfree said that she wanted us to go over to the real estate office some evening and sign papers at Mr. Klei’s office. I told her it was all right at any time. She said she would let us know when to go. She did not say at that time what the papers were for. At the office Mr. Klei got a paper out of file and showed me and my wife where to sign, and we signed it, and left it lying on the desk. We stood and talked a little about the place before we left. There at the house, first time Mrs. Winfree brought it up she said we want you to go ahead and sign these papers so that we won’t have to have trouble if anything happens to you and mother. She said she would have to have these papers signed in case anything happened to me and mother. She wouldn’t have to go and have this probated so other children couldn’t come in and put a [claim] against it. That was her reason for having us go' and sign papers. Nothing was said about signing a quitclaim deed. We said it was all right with us. * * * I didn’t read the paper. I don’t think Mrs. Borngesser read it. Nobody read it to us in the real estate office. Nobody explained it to us. I did not know it was a quitclaim deed. Nothing was said about recording it. ■I didn’t know it had to be recorded. I thought it iwould be kept in case anything would come up, if 'anything happened to us.”
The other plaintiff gave testimony of similar chariacter. Defendants denied misrepresentations on their part as to the purpose for which the quitclaim deed was sought, stating in effect that it was executed pursuant to an agreement made between the parties prior to the conveyance to them. It was their claim on the trial, and is on this appeal, that plaintiffs were not entitled to any interest in the property, and that they were merely rent-paying tenants from month to month. They have made no claim that they took any action to relieve plaintiffs from possible liability on the note and mortgage executed by the parties, nor do they offer any explanation of their failure to do so.
The trial court found that the facts with reference to the execution of the quitclaim deed were substantially as claimed by plaintiffs. While this Court hears the case de novo on the record, we give consideration to the fact that the trial judge had the opportunity to observe the parties during the course of the trial and particularly while they were testifying. He was, in consequence, in better position to pass on their credibility than is this Court. We may not properly reverse his decision unless convinced that, on the proofs submitted, an opposite conclusion should have been reached, and that in consequence the decree entered is not in accordance with the just rights of the parties. Wright v. Brown, 317 Mich 561; Pence v. Wessels, 320 Mich 195; Ruch v. First National Bank of Three Rivers, 326 Mich 52.
It is apparent from the record in the case that the plaintiffs had implicit confidence in defendants. They relied on them for assistance and advice. The property was acquired primarily in order that the plaintiffs might have a home. Defendants voluntarily assumed the obligation of helping to achieve the desired end, thereby recognizing that plaintiffs needed aid and counsel. Plaintiff Bert Borngesser testified that he had never owned any real estate other than a cemetery lot. For a period of 32 years pre ceding the trial he was a yard foreman in the employ of a railroad company. It is a fair conclusion from the record that the knowledge of both plaintiffs with reference to real property transactions, and business matters generally, was limited. Under the circumstances, and in view of the relationship between the parties, we think that a duty rested on defendants to see that plaintiffs’ rights were properly protected and that they were correctly informed as to the nature and purpose of the conveyance in question. Gill v. Dingfelder, 224 Mich 247; Timm v. Parker, 316 Mich 269.
. The failure to take steps to have plaintiffs released from possible liability on the note and mortgage is significant. It is also of interest that defendants, if their version of what occurred is correct, procured the joining of plaintiffs as grantees in the deed of the property to the parties solely to enable them to obtain the necessary loan under the Federal Housing Administration plan. If, as they claim, it was agreed in advance that plaintiffs should retain no-interest in the property, deception was practiced to-bring about the securing of a loan under more favorable terms than otherwise could have been obtained.
On the record in the case we cannot say that the findings of the trial court were not fully and adequately supported by the proofs, or that they were not in accord with the just rights of the parties. The decree is affirmed, with costs to plaintiffs.
Reid, 0. J., and Boyles, North, Dethmers, Butzel, Bushnell, and Sharpe, JJ., concurred. | [
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Carr, J.
The parties to this case were married in 1937. Thereafter they resided in Rochester, New York, in the home of defendant’s parents, until their separation in 1942. One child, now 12 years of age, was born of the marriage. In 1945 plaintiff brought suit for divorce in Wayne county, Michigan. The following year the parties became reconciled and plaintiff returned to Rochester where he lived with defendant in the home of her parents until the latter part of December, 1947, when, because of differences arising between the parties, he left and thereafter returned to Detroit.
The present suit was instituted in September, 1949. Plaintiff alleged in his bill of complaint that defendant had been guilty of extreme and repeated' cruelty toward him in that she had refused to live with him and-to accompany him to a home of their own, that she had abused him without reason, and had used profane and improper language in addressing him. Defendant by answer denied plaintiff’s charges. Following a hearing in circuit court the trial judge came to the conclusion that plaintiff’s proofs entitled him to the relief sought. A decree' was entered accordingly, granting plaintiff an absolute divorce and requiring him to pay $20 per week for the support of the minor child, custody of said child being granted to the mother. From such decree' defendant has appealed, claiming that under the proofs submitted the plaintiff was not entitled to the relief granted him, and that his bill of complaint should have been dismissed.
On the trial of the case plaintiff testified in substance that defendant was unwilling to leave the-home of her parents and live elsewhere with him and the child. There is no showing, however, that plaintiff at airy time actually procured for his family a suitable home, other than that of defendant’s parents. He further testified that defendant indicated, by her attitude toward him, a lack of affection, that she treated him unkindly, and that she objected to marital relations. As a witness in her own behalf defendant denied plaintiff’s claims, insisting that she had not been guilty of any conduct toward plaintiff tliat amounted to extreme and repeated cruelty, that plaintiff was responsible for their marital difficulties, and that she had not used improper language in addressing- him. Her testimony as to her attitude was materially impeached by a letter written by her in April, 1945, to plaintiff, who was then in Detroit, in which she used obscene and otherwise improper language. It will be noted that the parties were subsequently reconciled and lived together in Rochester for more than a year.
Without reference to other questions in the case it must be said that plaintiff’s conduct during the time that he was living separate and apart from defendant is subject to criticism. On the witness stand he admitted that he had sought the company of otlier women, that he had “gone around with girls,” and that he had not restrained himself in the matter of being discreet. He further admitted that at the time of the trial he went to shows and to dances with girls. In the attempt to justify his conduct he asserted that defendant sanctioned his keeping. conrpany with other women and had in fact told him to do so. It is a fair inference from the record that any statement of such character on the part of defendant was made in the course of an argument between the parties. In any event defendant’s attitude toward plaintiff’s conduct, assuming that she acquiesced therein, did not justify his acts. Berghage v. Berghage, 313 Mich 709, 714. This Court has repeatedly held that •a decree of divorce may not properly be granted to •one who has deliberately engaged in a course of conduct subversive of the marital relation and reprehensible from the public standpoint. Czyzewski v. Gzyzewski, 304 Mich 402; Lieberwitz v. Lieberwitz, 314 Mich 686; Kuhfal v. Kuhfal, 318 Mich 105; Kanka v. Kanka, 318 Mich 109; Kauk v. Kauk, 322 Mich 291. That a reconciliation is improbable furnishes no reason for granting a decree in the face of the uncontradicted testimony in the record. Bolthuis v. Bolthuis, 233 Mich 584. Under the evidence in the case plaintiff was not entitled to a divorce. ...
The' decree of the trial court is reversed and a decree will enter here dismissing the bill of complaint, with costs to appellant.
Dethmers, C. J., and Adams, Butzel, Bushnell, Sharpe, Boyles, and Beid, JJ., concurred. | [
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Sharpe, J.
(dissenting). This is a suit by the minority stockholders of the C. 0. Porter Machinery Company, Incorporated, against the company and Clare 0. Porter and Dale G. Porter, as officers and directors, to restrain a contemplated sale of all of the assets of the company. The facts necessary to a decision are as follows: The C. 0. Porter Machinery Company was incorporated in 1923, for a 30-year period. Its charter expired January 10,1953. Plaintiffs are the owners of 42% of the capital stock of the company, while defendants own or control 55% of the stock of the company. The company owns and operates 2 woodworking machinery plants in Grand Rapids located about 2 miles apart. On May 20, 1952, at the annual stockholders’ meeting, a resolution was offered to extend the corporate term. This resolution required a 2/3 vote and failed to pass. It is apparent that both groups of stockholders wished to acquire control of the company, and, if necessary, to purchase the entire stock of the company. The following letter was written by plaintiffs’ attorney to defendants’ attorney:
“June 30,1952
“Mr. George S. Norcross
“Michigan Trust Building
“Grand Rapids 2, Michigan
“In re: C. O. Porter Machinery Co.
“Dear Mr. Norcross:
“The offer of $215,000 for the 410 shares of stock owned by Mrs. T. Earl Porter, Mrs. Kathlyn Collins and Burke E. Porter is declined, and in that connection your attention is called to the fact that the book value alone of the 410 shares on May 31st was approximately $230,000.
' “The feeling of your clients that they wish to continue in the management and operation of the business is quite understandable, but it' is no stronger than is the feeling of Burke Porter that he would like to obtain control of a business in which he and his family have been interested for so many years and with which he was actively connected for such a longtime.
“Very truly yours,
(s) Oscar E. Waer”
On August 6, 1952, articles of incorporation of West Michigan Machinery Company were filed with the Michigan corporation and securities commission. The directors of this company were C. A. Bradshaw, J. W. Eardley and it. W. Shuster. These directors were connected with the firm of lawyers representing-the defendants. Following the organization of this corporation, the company made an offer to the C. O. Porter Machinery Company to purchase all of its assets. The offer reads as follows:
“August 27,1952.
“C. O. Porter Machinery Company
“666 Front Avenue, N.W.
“Grand Rapids, Michigan
“Gentlemen:
“The undersigned, West Michigan Machinery Company (hereinafter referred to as the ‘purchaser’),, proposes to purchase all of the property and assets of C. O. Porter Machinery Company (hereinafter referred to as the ‘seller’), of every kind and description.
“This is to confirm the arrangements with respect tó the purchase of the assets by this corporation:
. “ (1) The seller represents that:
“(a) It is a corporation duly organized and existing under the laws of Michigan, with an authorized capital consisting of 1,000 shares of common stock,, without par value, of which 960 shares have been duly issued and are now outstanding, fully paid and non-assessable, excluding shares held in the treasury of the corporation. * * *
“ (3) The purchaser represents that:
“(a) It is a corporation duly organized and existing under the laws of the State of Michigan, with an authorized capital consisting of 250,000 shares of common stock of the par value of $1 per share, none of which has been issued.
“(b) The purchaser has no outstanding options for the purchase of its authorized stock, or other agreements not made in the ordinary course of business, except the subscription by the incorporator for 1,000 shares of common stock, $1 par value, which will he absorbed in the consummation of this agreement.
“(c) There is no material litigation threatened or pending against the purchaser.
“(4) Subject to the correctness of the representations contained in paragraphs (1) and (3), and the performance of the matters described in paragraph (2), at or prior to the purchase of the property and assets of the seller, and subject to the performance by seller and purchaser of all obligations to he performed at or prior to such purchase, and subject to all other terms and conditions of this agreement, the purchaser hereby agrees to buy and the seller agrees to sell all of the property and assets, real, personal •or mixed, tangible or intangible, and wheresoever situated, including its good will and corporate franchises, subject to all liabilities of the seller and all ■other liabilities of the seller incurred in the ordinary •conduct of its business up to and including the date •of conveyance of said property and assets to the purchaser, and in full payment therefor, the purchaser agrees to deliver and the seller agrees to accept 240,000 fully paid and nonassessable shares of the common stock, $1 par value, of the purchaser, in ■.such denominations and registered in such names as the seller shall have requested in written notice to the purchaser at or before the time and date of conveyance of the seller’s property and assets.
“(5) The obligation of the purchaser to purchase-the property and assets of the seller, and the obligation of the seller to sell is subject to the following further conditions:
“(a) On or prior to conveyance of the property and assets, counsel for the purchaser shall have furnished to it their written opinion that (i) title to the-property and assets to the seller is in satisfactory condition; (ii) that the transaction herein contemplated is a tax-free reorganization under the Federal tax law; (iii) that the corporate proceedings required to be had by this agreement by both purchaser and seller are in accordance with the articles of incorporation and bylaws of both corporations, and according to law, and that such action, when taken, effectually consummates the action contemplated herein; (iv) that upon completion of the transaction the purchaser will have good and sufficient title to the property and assets of the seller, subject to the liabilities as contemplated by this agreement.
“(b) The transfer and conveyance of the property and assets in accordance herewith shall be completed on or before 60 days from the date hereof, unless otherwise agreed between the parties in writing.
“(6) The seller agrees that promptly upon receipt, of the shares of stock to be delivered by the purchaser in accordance herewith, that it will distribute; the same immediately to its shareholders, so that the holders of its common stock, no par value, shall receive 250 shares of the common stock of the purchaser for each share of the common stock, no par value, of the seller held.
“(7) The seller agrees that upon consummation of' this agreement, it will terminate its corporate existence as soon as possible, all in the manner approved by counsel.
“ (8) This agreement may be amended at any time, either before or after consummation thereof, by mutual agreement between the parties.
“Please confirm at the place indicated below that the foregoing sets forth the agreement between us.
“Very truly yours,
“West Michigan Machinery Company “ (s) By Bale Porter,
“Vice President.
“Accepted the above date
“C. 0. Porter Machinery Company
“By...........................
“C. 0. Porter—President”
At a later meeting of the officers and stockholders of the West Michigan Machinery Company, the officers resigned and the following officers were elected: president and treasurer, C. 0. Porter; secretary, Bertha McEachron; vice-president, Bale G. Porter. The board of directors elected were as follows: C. 0. Porter, Bale G. Porter and Frederic Stolp.
At this meeting the offer of the C. 0. Porter Machinery Company, heretofore noted, was accepted:
“That the proposal to acquire all of the assets of C. 0. Porter Machinery Company, subject to liabilities, in consideration of the issuance by this corporation of 240,000 fully paid and nonassessable shares of its capital stock be, and the same is hereby approved, and the proper offices [officers?] are hereby authorized and directed to execute and deliver the ■proposal to C. 0. Porter Machinery Company in the form presented and read to the meeting.”
Upon distribution of the stock of the West Michigan Machinery Company, C. 0. Porter Machinery Company agreed to terminate its corporate existence and later change the name of West Michigan Machinery Company back to C. 0. Porter Machinery Company. On September 5, 1952, plaintiffs filed a bill in chancery in the superior court of Grand Rapids, in which they sought the following relief:
“That * * * defendants * * * be permanently enjoined from taking corporate action involv ing a sale, or an attempt to sell, the properties and business of said corporate defendant to said West Michigan Machinery Company or any other corpora^ tion created by defendants solely for the purpose of effecting a sham and not a bona fide sale and for the purpose of, in effect, extending the corporate life of defendant corporation contrary to the rights of plaintiffs and in violation of the Michigan corporation law-requiring a 2/3 vote for such extension; and that the defendants be restrained by a temporary order issued by this court from talcing any such action pending an adjudication of the issues herein involved.”
Upon the filing of the above bill, a temporary injunction was issued. On September 24,1952, defendants filed a motion to dismiss the bill of complaint and for dissolution of the injunction. Testimony was taken and on November 19, 1952, an order was entered dismissing plaintiffs’ bill of complaint. In an opinion filed, the trial court stated:
“The directors of the defendant corporation will be the directors of the new corporation and of course the business of the C. 0. Porter Machinery Company will be continued, and it is proposed to change the name of the West Michigan Machinery Company as soon as the transaction is completed to the name of the present defendant.
“Therefore, it is proposed by these proceedings to continue the business of the C. 0. Porter Machinery Company and in effect to continue its corporate life through the medium of the proposed sale and which in effect will overcome the objections of the minority stockholders to the continuance of the corporate life.
“While the effect of the sale proposed will be to continue the corporation, there is nothing in the code which would prohibit or make illegal such a sale even if it was made after a negative vote of the stock on the question of continuing the corporate life. No consideration can be given by the court to the fact that all of the stockholders are related. That is a negative fact. Whoever the respective holders may he so far as their legal rights are concerned, each must he governed hy the rules of applicable law. In this a minority stockholder must accede to the authority of the corporation directors unless it is shown that there is mismanagement or fraud which is resulting or will result in a loss to the minority stockholders.”
Plaintiffs appeal and urge that a sale of the company’s assets, within the meaning of the Michigan corporation code, means a good-faith sale, and not a mere subterfuge and an attempt to do indirectly what cannot be done directly, and that a sale not made in good faith is void against any dissenting stockholder.
Defendants urge that a corporation has the power to sell all of its assets in exchange for the stock of another corporation and rely upon CL 1948, § 450.57, as amended by PA 1951, No 239 (Stat Ann 1951 Cum Supp § 21.57):
“Every corporation formed or existing under this act may sell, lease or exchange all or substantially all of its property and assets, including its good will and its corporate franchises, upon such terms and conditions and for such consideration, which may be in whole or in part shares of stock in, and/or other securities of, any other corporation or corporations, domestic or foreign, as its board of directors shall deem expedient and for the best interests of the corporation, when and as authorized by the affirmative vote of the holders of a majority of the shares of each class of stock issued and outstanding given at a shareholders’ meeting duly called for that purpose, or when authorized by the written consent of the holders of a majority of the shares of each class of stock issued and outstanding: Provided, That the articles may require the vote or written consent of the holders of a larger proportion of the shares of each class of stock issued and outstanding. When any action by a corporation permitted by this section is approved by the authorized written consent of shareholders, it shall be the duty of the board of directors of the corporation to mail notice of such consent to all shareholders of the corporation addressed to the addresses of the shareholders as they appear on the books of the corporation. The 20-day period of objection and demand referred to in section 44 of this act shall begin on the day following the date of mailing such notice.”
and that plaintiffs’ only remedy is under section 44 of the act. Section 44 (CL 1948, § 450.44 [Stat Ann § 21.44]) in part reads as follows:
“If a corporation has authorized the sale, lease or exchange of all or substantially all of its assets a shareholder who was a shareholder at the time such action was authorized and who voted against such action may, within 20 days after the date upon which such action was authorized but not thereafter, object thereto in writing and demand from the corporation the payment of the fair cash value of his shares as of the day preceding the day' such action was authorized by the shareholders.”
In coming to our conclusion in this case we have in mind that when the defendants (majority stockholders) failed to extend the corporate existence of the C. O. Porter Machinery Company, they organized a so-called dummy corporation called West Michigan Machinery Company, and then by a majority vote of the stockholders of the C. 0. Porter Machinery Company transferred the assets of the old company to the new. It also appears that it was the intention of defendants to then dissolve the old company and later amend the articles of incorporation of the new company, by giving it the name of the old company. The reason for this action is that:
Section 3 of article 12 of the Constitution of the State of Michigan provides that:
“No corporation shall be created for a longer period than 30 years * * * but the legislature may provide by general laws * # * for 1 or more extensions of the term of such corporations, while such term is running, not exceeding 30 years for each extension, on the consent of not less than 2/3 of the capital stock of the corporation.”
Section 60 of the Michigan corporation code (CL 1948, § 450.60, as amended by PA 1951, No 352 [Stat Ann 1951 Cum Supp § 21.60]), provides that:
“Any stock corporation whose term is about to expire by limitation may, at any time within 2 years next preceding the expiration of such term, by the consent of the holders of at least 2/3 of its outstanding shares at any annual meeting or at any special meeting of its shareholders called for that purpose direct the continuance of its corporate existence for such further term as permitted by law.”
■ In Ervin v. Oregon R. & Nav. Co. (CC), 27 F 625, 630, the court had occasion to discuss the rights of majority and minority stockholders. It was there said:
“It cannot be denied that minority stockholders are bound hand and foot to the majority in all matters of legitimate administration of the corporate affairs; and the courts are powerless to redress many forms of oppression practiced upon the minority under the guise of legal sanction, which fall short of actual fraud. This is a consequence of the implied contract of association, by which it is agreed, in advance, that a majority shall bind the whole body as to all transactions within the scope of the corporate powers. But it is also of the essence of the contract that the corporate powers shall only be exercised to accomplish the objects for which they were called into existence, and that the majority shall not control those powers to pervert or destroy the original purposes of the corporators. Livingston v. Lynch, 4 Johns Ch (NY) 573; Hutton v. Scarborough Cliff Hotel Co., 2 Drew & S 514 (62 Eng Rep 715); Brewer v. Boston Theater, 104 Mass 378; Keane v. Johnson, 9 NJ Eq 401; Rollins v. Clay, 33 Me 132; Clinch v. Financial Corp., 4 Ch App (Eng) 117 (38 LJ Ch 1, 19 LT 334, 17 WR 84); Clearwater v. Meredith, 1 Wall (68 US) 25 (17 L ed 604). It is for this reason that the majority cannot consolidate the corporation with another corporation, and impose responsibilities and hazards upon the minority not contemplated by the original enterprise, unless express statutory authority for this purpose is conferred upon the majority. It is no more repugnant to the purposes of the association to permit the majority to merge and consolidate the corporation with another corporation than it is to permit them to dissolve it, and ' abandon the enterprise for which it is created, when no reasons of expediency require this to be done. A dissolution under such circumstances is an abuse of the powers delegated to the majority. It is no less a wrong because accomplished by the agency of legal forms.”
In Kavanaugh v. Kavanaugh Knitting Co., 226 NY 185 (123 NE 148), the court had occasion to pass upon the good faith of majority stockholders. It was there said:
“When a number of stockholders constitute themselves, or are by the law constituted, the managers of corporate affairs or interests, they stand in much the same attitude towards the other or minority stockholders that the directors sustain generally towards all the stockholders, and the law requires of them the utmost good faith. Farmers’ Loan & Trust Co. v. New York & Northern Railway Co., 150 NY 410, 430 (44 NE 1043, 34 LRA 76, 55 Am St Rep 689); White v. Kincaid, 149 NC 415 (63 SE 109, 23 LRA NS 1177, 128 Am St Rep 663); Ervin v. Oregon R. & Nav. Co. (CC), 27 F 625. In taking corporate action under the statute, the stockholders are acting for the corporation and for each other, and they cannot use their corporate power in bad faith or for their individual advantage or purpose. J. H. Lane & Co. v. Maple Cotton Mills, 141 CCA 448 (226 F 692). * * *
“Judicial authority does not extend to enjoining the exercise of a right conferred by legislative authority. The courts cannot pass upon the question of the expediency of the dissolution, for that is the very question which the legislature has authorized the board of directors and the stockholders to decide. They can, however, and will, whenever the facts presented to them in the appropriate action demand, inflexibly uphold and enforce, in accordance with established equitable principles, the obligations of the fiduciary relation. The good faith of the individual defendants is a proper and fundamental subject to be adjudged. Bad faith, fraud, or other breach of trust constitutes a foundation for equitable relief.”
In Theis v. Spokane Falls Gas Light Co., 34 Wash 23 (74 P 1004), the right of a majority of stockholders to dissolve a company in order to get rid of a disagreeable stockholder was discussed. It was there said:
“It is apparent that, if the respondents could have purchased appellant’s stock, the disincorporation would not have been thought of. The práctice is one which is frequently indulged in for the purpose of what is described in vulgar phrase as ‘freezing out’ small stockholders—a compliance with the letter, instead of the spirit, of the statute—a pernicious practice which courts of equity cannot too promptly condemn. A dissolution of a corporation, within the contemplation of the law, is the death of the corporation. It means a disintegration, a separation, a going out of business. But in this case all of the elements of dissolution are wanting. The corporation, with a slightly different name, proceeded in the same town, with the same propei’ty, the same powers, and substantially the same owners. All the difference is about what was testified by the president of the corporation—that, after the new company was formed, the minority stockholders’ interest, would be represented by a deposit in the bank, instead of stock in the corporation. It might with as much reason be concluded that a man could escape responsibilities by changing his name, and that, by such change, his moral or financial relations with those with whom he was engaged in business under the old name would be affected. It is not enough to say that appellant received all his stock was worth. He embarked in this business, and had a right to stay in the business during the expressed life of the corporation, or until it was dissolved by a fair compliance with the law.”
Fairness and good faith are essential on the part of those acting under statutory authority in the sale of all, or substantially all, of the corporate assets over the protest of minority stockholders. In 13 Am Jur, p 818, § 803, it is said:
' “In some States statutes have been enacted authorizing corporations or the majority or a certain per cent of the stockholders thereof to sell all the corporate assets. Statutes of this kind have been sustained on the ground of the reserved power of the State to amend, or repeal corporate charters or the laws under which corporations are organized. If the statute is in force at the time the corporation is formed or the contract of subscription entered into, the dissenting shareholder, it would seem, is precluded from objecting, if the sale is in good faith. However, fairness and good faith are essential on the part of those acting under statutory authority in the sale of all of the corporate assets over the protest of minority stockholders. Thus, even where the majority of the stockholders of a corporation are authorized by statute to dissolve the corporation and sell its property and divide the proceeds, despite the opposition of the minority stockholders, the majority cannot exercise their powers in a way to buy the property for themselves and exclude the minority from a fair participation in the fruits of the sale.”
Good faith is also essential in the termination and dissolution of a corporation. See Kavanaugh v. Kavanaugh Knitting Co., supra.
In the case at bar, the conflict arises between section 57 of the Michigan corporation code (CL 1948, § 450.57, as amended by PA 1951, No 239 [Stat Ann 1951 Cum Supp § 21.57]) and section 3 of article 12 of the Constitution of the State of Michigan. We are of the opinion that the legislature in enacting section 57 of the Michigan corporation code never intended to provide a way of escaping- the prohibition against the extension of the corporate franchise without the necessary 2/3 majority vote required by the Michigan Constitution. To do so would permit a majority of stockholders to do by indirection what they could not accomplish directly. It follows that sales of corporate assets as authorized by section 57 of the Michigan corporation code must be good-faith sales. The sale made in the case at bar was not such a sale as is contemplated by the statute.
The decree of the superior court should be reversed and a decree should be entered setting aside the sale to the West Michigan Machinery Company, with costs to plaintiffs.
Dethmers, C. J., and Carr, J., concurred with Sharpe, J.
Butzel, J.
The facts are set forth in Mr. Justice Sharpe’s opinion for reversal. I believe that the trial court’s order dismissing plaintiffs’ bill of complaint should be affirmed. The sale of the assets and business of the old corporation to the new corporation was strictly in accordance with law. There was nothing malum in se or malum prohibitum in the action of the appellees. Appellants, however, claim that the constitutional provision limiting the term of corporation to 30 years was violated by defendants by indirection and circumvention. The term of the old corporation was about to expire. Its franchise has never been renewed. There is no claim that the new corporation was not organized strictly in accordance with law. The sale of the assets and business also was legally made, after approval by the directors and the majority of the stockholders. Notwithstanding the fact that the old corporation paid hut few dividends, its business had grown and a very large surplus accumulated and invested in the rapidly growing business. Liquidation proceedings frequently entail large expense, damage to the good will of the corporation and possibly other losses. The minority stockholders are entitled to their proportionate share of the net proceeds from the sale of the corporate assets, after due provision has been made for the payment of debts. This they are offered in an equivalent number of shares of stock in the new corporation, or, at their option, payment in cash for their shares of stock in the old corporation after a fair appraisal in manner provided by law. As the trial court held, this assessment would take into consideration all of the assets of the corporation, including good will, as well as the liabilities; that the proposed sale was legal and in the absence of fraud cannot be prevented by the minority stockholders, particularly when there is no showing of an irreparable injury to them in the event of such sale.
Appellants contend that they were entitled to insist upon the corporation continuing to exist until the end of its term, and then the assets be offered at a sale at which all parties can bid and the highest bidder acquire the business. There is no assurance of what the majority or minority stockholders would hid, if at all. There seems to have been a quarrel between the 2 branches of the family and the parties desired to purchase each other’s shares, but no agreement could be reached.
Appellees further contend that a sale of stock in the new corporation will result in an exchange of stock and that this would be a tax-free transaction, while a sale through liquidation, however, might result in a heavy capital gains tax under the Federal law. We shall not discuss this phase of the ease.
Minority stockholders, particularly in a closely-held corporation, have certain disadvantages. They have not the right to prevent a sale of the assets, if authorized by the directors and the majority of the stockholders, unless there is fraud. The statute, fully set forth in the opinion for reversal (CL 1948, § 450.57, as amended by PA 1951, No 239 [Stat Ann 1951 Cum Supp §21.57]), distinctly provides that the consideration for the sale may also be stock in another corporation. This has become common practice and has resulted in the growth and development of many of the larger corporations. It has met with judicial approval. In Voigt v. Remick, 260 Mich 198, the sale of assets to another corporation formed by members of the selling corporation was upheld. See, also, Hill v. Page & Hill Co., 198 Minn 30 (268 NW 705), in which the right to sell the assets of a corporation whose term Avas about to expire to a neAv corporation, formed by a group of stockholders of the old corporation, resulting in an exchange of stock, was upheld. To like effect, see Greene v. Stevenson, 295 Ky 832 (175 SW2d 519); Tenison v. Wilson (Tex Civ App), 151 SW2d 327; Topkis v. Delaware Hardware Co., 23 Del Ch 125 (2 A2d 114).
In Weckler v. Valley City Milling Co., 93 F Supp 444 (affirmed, CCA Sixth Cir, 188 F2d 367), so heavily relied upon by appellants herein, the court in holding that the reorganization there in question was in fraud of the rights of holders of preferred stock on which a very large amount of accrued dividends were unpaid, added the statement (p 456):
“This is not to say that a corporation may not under appropriate circumstances and in good faith sell its assets to another corporation which has been formed at the instigation of the former.”
Also, see Havender v. Federal United Corp., 23 Del Ch 104 (2 A2d 143), 24 Del Ch 96 (6 A2d 618), 24 Del Ch 318 (11 A2d 331); Hottenstein v. York Ice Machinery Corp. (CCA), 136 F2d 944; McNulty v. W & J Sloane, 184 Misc 835 (54 NYS2d 253) ; Porges v. Vadsco Sales Corp., 27 Del Ch 127 (32 A2d 148).
A dissenting shareholder has no vested right to object to a sale of total corporate assets when authorized by the directors and a majority of the stockholders, a right which the majority had many years prior to the incorporation of the old company, also a defendant herein. For a full discussion, see "Wilgus & Hamilton, Michigan Corporation Law (2d ed 1950), p 330. The rights of dissenting minority stockholders has been further protected in many States by laws similar to that of Michigan, which provides in CL 1948, §450.44 (Stat Ann §21.44), that a stockholder who objects to the sale of the corporate assets shall, by proper action, be entitled to receive the fair cash value of his shares, either as agreed upon, or, in the event of disagreement, by 3 disinterested parties appointed by the circuit judge of the county where the corporation has its registered office. The true value of assets includes the good will of the vendor corporation. Plaintiffs cannot claim that they have been defrauded or that there is any bad faith, when they are offered the equivalent number of shares in the same proportion in the new corporation as that they held in the old one, the same as the majority will receive, or at their option receive the full cash value of their shares in the old corporation. No bad faith or fraud whatsoever has been shown. The term of the old corporation is ended. The new corporation is not an extension of the term of the old corporation.
CL 1948, § 450.44 (Stat Ann § 21.44), further provides that the “objection by any stockholder to any action of the corporation provided in this section and his rights hereafter under this section shall be his exclusive remedy.” In New York, where the question of exclusive remedy has arisen, the courts have held that the appraisal remedy provided by the New York stock corporation law is the exclusive remedy. Anderson v. International Minerals & Chemical Corp., 295 NY 343 (67 NE2d 573); Beloff v. Consolidated Edison Co. of New York, 300 NY 11 (87 NE2d 561). Were there any fraud or lack of good faith shown, a different question would be presented, but there is no such showing here. In the opinion fo-r reversal, several cases of other jurisdictions and over 50 years old, and one 49 years old, are cited. The right to appraisal is comparatively new. The concept of the law of corporations and its limitations has changed very materially in the last half century. The Constitution is a living instrument and should be interpreted in such' manner that it will remain adaptable to the necessities of a changing law. John Hancock Mutual Life Insurance Co. v. Ford Motor Co., 322 Mich 209. We shall not further discuss these cases. The defendants acted fully within their rights.
The order of dismissal is affirmed, with costs to appellees; In order to avoid any possible question, the time for demanding the appraisal shall begin from the day this opinion is handed down.
Adams, Btjshnell, Boyles, and Reid, JJ., concurred with Btttzel, J. | [
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Sharpe, J.
This is an appeal from a judgment in favor of plaintiffs in an action to recover for collision loss to a tractor under an insurance policy issued by defendant to plaintiff James Curtis as owner, with loss clause in favor of plaintiff bank as holder of a chattel mortgage on the tractor. The amount of damage was stipulated at $700.
The policy was issued April 16,1947, and contains no reservations as to where the tractor might be used. On or about November 24, 1947, plaintiff’s tractor collided with an automobile at a point on M-112, approximately 48 miles from the city of Jackson and at a time when plaintiff was operating his tractor between Chicago and Detroit. At the time the policy was issued, plaintiff was employed by Consolidated Freight Company doing pickup and delivery required at Jackson and within 50 miles radius of Jackson. In September, 1947, plaintiff discontinued Ms employment with Consolidated Freight Company and made other arrangements with Long Transportation Company using his tractor for trucking operations between Detroit and Chicago.
The trial court entered judgment for plaintiffs from which defendant appeals and urges that the insurance coverage was limited to short-haul or 50-mile radius operations only for which premiums were charged and paid; and that if the policy covered liability for a long haul, then plaintiffs were liable for the additional premiums, the amount of which defendant was entitled to set off against plaintiffs’ claim. It is urged by plaintiffs that defendant insurance company is bound by the terms of the contract of insurance in an action at law upon the policy, and its failure to insert the 50-mile radius provision or deductible provisions is, in legal effect, a waiver and estops it from insisting that its omission constitutes a legal defense to an action on the policy.
We note that defendant insurance company did not seek reformation of the policy at any time. Such policy cannot be reformed in a law action. See Rossbach v. Continental Ins. Co. of New York, 276 Mich 122. The policy contained no restrictions that the tractor was to be used only within a 50-mile radius of Jackson. Whatever discussion there may have been about distance restrictions between plaintiff Curtis and the agent of the insurance company was merged in the policy of insurance. See Kleis v. Niagara Fire Ins. Co., 117 Mich 469. It follows that defendant insurance company may not rely on any oral understanding contrary to the insurance policy as a defense.
In Michigan Stamping Co. v. Michigan Employers' Casualty Co., 235 Mich 4, 14, we said:
“There is a clear distinction between the effect of an omission in a policy which the insurer relies on to defeat the action and one which the insured seeks to have incorporated therein as a basis for recovery. As to the former, this Court has held that the neglect of the insurer to insert a provision of which its agent was informed at the time the application for insurance was made is, in legal effect, a waiver and estops it from insisting that its omission constitutes a legal defense to an action on the policy. Gristock v. Royal Ins. Co., 87 Mich 428; Simpson v. Ohio Farmer’s Ins. Co., 184 Mich 547. As to the latter, we are of the opinion that the policy must be reformed in order for the insured to obtain the benefit of such an omission.”
In the case at bar, defendant seeks to rely on an omission in the policy relating to distance restrictions as a defense. Under the above authority he may not do so.
Defendant also urges that the insurance contract being subject to statutory regulations, the policy by its terms must be amended to conform to the Michigan statutes and in such case the rate paid would only relate to short-haul trucking operations or operations within a radius of 50 miles. In the case at bar the insurance company failed to insert the 50-mile radius clause and the proper amount of the premium to be paid for long-haul trucking. In our opinion defendant may not profit by its failure to comply with the statutory provisions. See Deland v. Fidelity Health & Accident Mutual Ins. Co., 325 Mich 9.
It appears that subsequent to the issuance of the above policy, plaintiff had issued to him a policy covering long-haul insurance coverage with the Fireman’s Fund Insurance Company and there is now pending in- tbe circuit court of Jackson county an action between plaintiff and tbe above company for indemnity for collision loss to plaintiffs’ tractor. Defendant urges that plaintiffs are not entitled to a judgment in advance of determination of the liability of the Fireman’s Fund Insurance Company for the same damage. It also appears that prior to trial in the case at bar, plaintiff James Curtis filed a motion to consolidate both actions to which defendant objected claiming that each defendant had different defenses in the matter. We are not in accord with defendant’s present claim. It had an opportunity to have its liability considered simultaneously with the Fireman’s Fund Insurance Company. It did not take advantage of the opportunity. It is now too late to complain.
The judgment is affirmed, with costs to plaintiffs.
Reid, C. J., and Boyles, North, Dethmers, Butzel, Carr, and Bushnell, JJ., concurred.
See CL 1929, § 12282; CL 1948, § 514.9 (Stat Ann §§ 24.60, 24.-173).—Reporter. | [
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Boyles, J.
Plaintiff Becker is the retail sales representative of the manufacturer of Wurlitzer pianos and organs, with territory in certain counties in the northern part of the lower peninsula of Michigan. Defendant Yahey sells Baldwin pianos and organs in the same territory. Defendant Warren is a salesman for Vahey.
Plaintiff filed a bill of complaint in the circuit court for Kent county in chancery, alleging that Warren had been making false statements about the Wurlitzer manufacturer and the Wurlitzer organ as a result of which St. Peter’s Lutheran Church in Big Rapids had refused to purchase an organ from the plaintiff; and that plaintiff had thereby been deprived of the commission which he would otherwise have received if the proposed sale had gone through. Plaintiff claimed damages by reason of the loss of the commission. After issue was joined, hearing held and testimony taken, a decree was entered permanently enjoining defendants Warren and Yahey from uttering, publishing or disseminating any false and untrue statements about plaintiff or his business or the business or products of the Rudolph Wurlitzer Company. The decree further provided that the plaintiff “recover judgment against defendants in the sum of $1,676.74, plus his costs to he taxed, and that execution issue therefor.” Defendants appeal. We hear the case de novo, on the record.
On the theory that a conspiracy had been “alleged” charging that defendants Warren and Ya-hey had conspired against plaintiff to injure and destroy plaintiff’s business, testimony was received over defendants’ objections, as follows:
1. A letter written by Warren to the organist of the First Methodist Church at Otsego, evidently a family friend of Warren. This church was not in plaintiff’s territory and the letter was sent some considerable time after the church had purchased an organ. It contained statements about the company which manufactured the Wurlitzer organ, claimed by plaintiff to be false. There is no testimony to show that Vahey had any knowledge of this letter before the instant suit was started.
2. Testimony was received of a conversation between Warren and the president of Ferris Institute at Big Rapids during which Warren made certain statements concerning the Wurlitzer organ and the manufacturer, claimed by plaintiff to be false. Ferris Institute had cancelled a contract to purchase a Baldwin organ from Yahey solely because Vahey could not make delivery of a Baldwin organ to Ferris Institute within the time limit provided for in the contract. Ferris Institute then purchased a Wurlitzer organ through the plaintiff and it was after the purchase that the conversation between Warren and the president took place to which plaintiff refers. No claim is made that Vahey was present or had any knowledge of the conversation. Plaintiff makes no claim for damages resulting from either of the above 2 transactions.
3. Testimony was received regarding a proposed sale of an organ to St. Peter’s Lutheran Church in Big Rapids. The church was about to purchase an organ. Warren contacted the chairman of the organ committee and learned that the church had an organ on trial, had not purchased it and was open to consider competition. Warren demonstrated his Baldwin organ to the committee, in a nearby church— they discussed the Wurlitzer, the Baldwin and other competitive organs. Plaintiff; claims that Warren made false statements about the Wurlitzer organ and its manufacturer. After some delay, comparison of prices and investigation of various organs, the church purchased a Connsonata organ from another competing salesman. Neither the plaintiff nor the defendants made this sale. Defendant Yahey took no part in Warren’s contacts with the purchasers and it is not claimed that he made any representations. There was testimony to show that Warren told a member of the purchasing committee that “there was a rumor” that the Wurlitzer factory was closed down. Warren did suggest that a complete investigation be made by the committee to determine the best organ. The committee did so and, after investigating 3 different organs, purchased the Conn-sonata. The final decision as to which organ to buy was made by the congregation of the church.. Plaintiff claims’ that he was deprived of a commission by the loss of this sale, for which he seeks damages.
4. A witness who described herself as a free-lance organist, who had at times demonstrated the Wurlitzer organ and worked for plaintiff, went to the Yahey Music Company in Grand Rapids and statéd that she was interested in an organ for a church. She met the defendant, was introduced to an em ployee, Mr. Yahey “went back to the back of the store,” and left her with “this other gentleman.” The testimony indicates that Yahey was not present, or heard any of the ensuing conversation. As to statements claimed by plaintiff to be false, she testified :
“Q. * * * Tell us what this employee said about the Wurlitzer organ or Wurlitzer company. “A. Well, as I recall, the Randolph [Rudolph?] Wurlitzer company plant was completely closed* and there was dissatisfaction on the part of customers and they further substantiated this by citing the fact the local dealer, Mr. Becker, had a warehouse full of organs and this was followed by the fact that the Wurlitzer company was in serious straits and were not selling,- that the Baldwin company had vast financial reserves and that they would never have to worry along this particular line.
“Q. Did he say anything more?
“A. There would be no models or other organs by Wurlitzer made in the future.
“This employee made that statement right there in the store of Mr. Yahey.
“Mr. Yahey came and called the gentleman with whom I was talking to the telephone, and he wanted to know if I was being taken care of, and I told him yes.
“He said the present model which Wurlitzer was making was the only one being made and there would be no future organ models made. Mr. Yahey made that statement right there in our talk. That is all that I can recall offhand that was said about the Wurlitzer organ or the Wurlitzer company, and that is the way the conversation ended.”
She further testified that she went there for the specific purpose of getting information and was not telling the truth when she told Yahey she was there to buy an organ.
The foregoing testimony is the only proof claimed to show a conspiracy between defendants Warren and Yahey to injure and destroy plaintiff’s business. No proof was ever adduced to establish that Yahey had taken any part in any representations made by Warren, or that he had any knowledge of them. It is not claimed that the relationship of principal and agent existed between Yahey and Warren. The only testimony connecting Yahey with the claim of conspiracy was that of the last witness. The conversation did not occur in the presence of Warren. It did not establish a conspiracy. See Kahn v. Friedman, ante, 164, and cases therein cited.
The burden was on the plaintiff to show that the statements alleged to have been made by Warren were false. In that regard the record is significantly barren of proofs. A review of the record convinces that plaintiff has not met the burden of proving that Warren made false and untrue statements regarding-the Wurlitzer organ or its manufacturer to injure and destroy plaintiff’s business, or to deprive plaintiff of the sale of an organ to St. Peter’s Church or of his commission if he should succeed in making' such sale. So far as shown by the testimony, Warren was acting alone and in his own interest in his contacts to make sales. We are not convinced that the record establishes a conspiracy entered into by Warren and Yahey to prevent Becker from making the sale of an organ to St. Peter’s Lutheran Church, which is the basis of plaintiff’s claim. Roberts v. Fox, 306 Mich 279; Gratiot Lumber & Coal Co. v. Lubinski, 309 Mich 662, 666.
Furthermore, the testimony as to the transaction between the plaintiff and the persons who had the authority to purchase an organ for St. Peter’s Lutheran Church is not convincing that plaintiff lost the sale only by reason of any statements made by Warren. The purchasers made a careful investigation of 3 different organs, listened to demonstrations and exercised their own independent judgment by the purchase of an organ from a concern not connected with either the plaintiff or the defendants. The burden of proof was on the plaintiff. The record does not support a finding that the defendants entered into a conspiracy or made false statements in an endeavor to injure or destroy plaintiff’s business in the sale of Wurlitzer organs. If the only issue was as to damages, plaintiff would have an adequate remedy at law (Kahn v. Friedman, supra).
Reversed, with costs to defendants.
Reid, C. J., and North, Dethmers, Butzel, Carr, Bushnell, and Sharpe, JJ., concurred.
See Greer v. Parks, 300 Mich 492.
It was actually closed down for a number of weeks.
There was uncontroverted testimony that these statements were true. | [
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Boyles, C. J.
In October, 1947, Evert Wagenmaker was adjudged a bankrupt, and plaintiff was appointed trustee in bankruptcy. In March, 1948, plaintiff filed this bill of complaint alleging that the bankrupt, being indebted to the defendant John Wagenmaker, had deeded certain real estate to said defendant within the 4 months prior to the date the bankrupt had filed the petition in bankruptcy and thereby created a preference which was fraudulent and void under the bankruptcy law. The bill asked for a decree setting aside the conveyance and restoring the property to the trustee. After issue joined and a hearing, the circuit judge entered a decree in accordance with the prayer of the bill in that respect as to part of the property, and required the defendants to account for the value of part of said property which had been converted by the defendants and sold to innocent purchasers. The defendants appeal.
Defendant John Wagenmaker is an uncle of the bankrupt. In September, 1946, the defendants by land contract sold to Evert Wagenmaker and wife a 10-acre parcel of land (a celery farm) for $12,000. The contract acknowledged receipt of a payment of $2,000, and provided that the remaining $10,000 should be payable in annual payments of $300 or more. The sale included certain machinery and equipment not specifically described. The purchasers actually made no cash payment upon the contract, the down payment being evidenced by a promissory note given by them to the defendants. At or about the same time, the bankrupt and his wife sold their interest in a grocery business for $4,950, and a lot which they owned as tenants by the entireties for $1,200.
Shortly after the execution of the land contract, the bankrupt commenced the construction of a house on the land contract property. He claims that he used the money .received from the sale of the grocery business and lot toward construction costs. Defendant John Wagenmaker assisted in the construction of the house by a second loan of $2,750 on a promissory note and by indorsing other promissory notes to the amount of $4,000.
Construction work on the house was abandoned. The bankrupt made no substantial payments on the land contract or the notes, and on September 27, 1947, the $2,000 note given as the down payment on the land contract was due, interest had accrued thereon, taxes were unpaid upon the premises, the bankrupt had used proceeds from the land, the second ($2,750) note held by defendants remained un paid, and the defendant John Wagenmaker was obligated upon the other notes which he had indorsed for the bankrupt. Defendants’ light to repossess the land-contract premises had become absolute, and demand was made by the defendants. Under the foregoing circumstances, on September 27, 1947, the bankrupt and his wife reconveyed the land-contract premises to defendants by quitclaim deed and surrendered thé land contract to them. The machinery and equipment were left on the premises. Subsequently, the defendant John Wagenmaker was required to pay, and did pay, the amounts due on the several notes upon which he was indorser.
When the bankrupt made the conveyance here involved, his other assets consisted of furniture, a 1936 Oldsmobile, cash value of a life insurance policy, an equity in a 2-acre plot, a cultivator, a freezer, and coke, which he claimed to be of the value of about $3,000. The schedules which the bankrupt filed in the bankruptcy proceedings listed his total assets at $250, the claims of unsecured creditors at $7,206.50, and his further liability on notes indorsed by the defendant John Wagenmaker or others at $3,714.75. Obviously, either he was insolvent at the time of the conveyance, or was thereby made insolvent. The bankrupt was indebted to the defendant John Wagenmaker, the transfers were without fair consideration and took place within 4 months prior to the filing of the petition in bankruptcy. About 3 weeks later Evert Wagenmaker filed a petition to be adjudged a bankrupt, and inside of 30 days from the date of the conveyance in question was so adjudged. The trial court properly concluded that the bankrupt transferred the property to his uncle with intent to hinder, delay or defraud creditors.
The bankrupt transferred the property in question to defendants September 27, 1947, which fixes the date to be within 4 months from the date of filing the petition in bankruptcy.
“A transfer shall be deemed to have been made at the time when it became so far perfected that no bona-fide purchaser from the debtor and no creditor could thereafter have acquired any rights in the property so transferred superior to the rights of the transferee therein.” National Bankruptcy Act (1938), § 60(a) (52 Stat 840, 869,11 USCA, § 96[a]).
The transfer by the bankrupt was without fair consideration and in fraud of creditors. Horvath v. Tacey, 251 Mich 262. The transfer constituted a preference, under the bankruptcy law.
“A preference is a transfer, as defined in this act, of any of the property of a debtor to or for the benefit of a creditor for or on account of an antecedent debt, made or suffered by such debtor while insolvent and within 4 months before the filing by or against him of the petition in bankruptcy, * * * the effect of which transfer will be to enable such creditor to obtain a greater percentage of his debt than some other creditor of the same class.” National Bankruptcy Act (1938), § 60(a) (52 Stat 840, 869, 11 USCA, § 96[a]).
If the bankrupt was thereby rendered insolvent, fraudulent intent may be inferred.
“When the questioned conveyance renders the grantor insolvent, fraudulent intent may be inferred.” Bentley v. Caille, 289 Mich 74.
The finding of the trial court setting aside the transfer as a preference and a fraud on creditors is affirmed.
In their brief, the defendants now claim for the first time that the trial court erred in decreeing that the conveyance be set aside, because the interest of Evert Wagenmaker in the land contract was that of a tenant by the entireties and because the conveyance was to John Wagenmaker and his wife as tenants by the entireties. We need not pass on the objection that this claim constitutes an affirmative defense to the bill of complaint which was not pleaded as such, or presented and decided as an issue in the circuit court at the hearing of the cause (Court Rule No 23, § 3 [1945]; Coates v. Coates, 327 Mich 444). There is otherwise no merit in the claim, under the facts in the case. The money that went into the investment was put in by the bankrupt. There is no proof that the wife of either the bankrupt or his uncle contributed to the investment, and on cross-examination the bankrupt admitted that the investment, and the entire transaction, was made by him.
“It will be noted that most of the consideration paid for the lot was paid after the note was given, and it does not appear that the wife contributed anything toward the consideration. In view of this, the fact that they were tenants by the entirety would avail them nothing. Newlove v. Callaghan, 86 Mich 297, 300 (24 Am St Rep 123), was a similar case, and the Court said:
“ Tt would be a gross injustice to permit debtors to apply moneys which should be applied to the payment of their debts to the creation of an estate which would be beyond the reach of their creditors. * * * In other words, estates in entirety cannot be created at the expense of creditors, and held in fraud of the latter’s right.’ ” Lemerise v. Robinson, 241 Mich 528.
“In behalf of Mrs. Schouten it is contended that since there is no claim of actual fraud upon her part, her entireties estate cannot be disturbed by forced sale under foreclosure of plaintiff’s lien. This contention is not tenable because, as above noted, so to hold would enable her to benefit by Mr. Schouten’s wrongful use of Ms individual funds.” McCaslin v. Schouten, 294 Mich. 180.
See, also, Dunn v. Minnema, 323 Mich 687 (7 ALR 2d 1099).
Other questions raised by appellants have been considered and found without merit. The trial court decreed that the conveyance in question, which included also the machinery and equipment, be set aside, except as to a parcel converted by the defendants by selling to innocent purchasers, as to which parcel the defendants in lieu of reconveyance to the trustee were decreed to account to the trustee for the net value thereof received by the defendants. National Bankruptcy Act (1938), § 60(b) (52 Stat 840, 870, 11 USO A, § 96[b]).
The decree is affirmed, with costs.
Reid, North, Dethmers, Btttzel, Carr, Bushnell, and Sharpe, JJ., concurred. | [
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Reid, C. J.
Defendants George H. Yigeant and Elizabeth E. Yigeant, his wife, appeal from a judgment for plaintiffs for $3,059.09 and costs. The case was dismissed as to defendant the Mulvee Corporation. Defendant J. Thomas Mullins suffered judgment by default and has taken no appeal. We herein refer to the defendants George H. Yigeant and Elizabeth E. Yigeant as though they were the only defendants.
Plaintiff sued as third-party beneficiaries on a contract made by and between the defendants and J. Thomas Mullins.
On January 28, 1947, J. Thomas Mullins contracted to build a house for plaintiffs Daniel and Beatrice Januska for $8,480 to be paid in designated instal ments. It was to be financed in part by an FHA loan made by the Michigan National Bank of Grand Rapids, and Mullins was obligated to complete the house within 90 days.
Mullins abandoned the building project after having collected all but $2,400 of the building fund. The house was erected on its foundation but the exterior work was yet to be done and the garage and breezeway were yet to be built. Such was the state of affairs on August 29, 1947 when the following agreement was entered into:
“Agreement
“This Agreement, made and entered into this 29th day of August, 1947, by and between J. Thomas Mullins and June R. Mullins of Whitehall, Michigan, hereinafter called the parties of the first part, and George H. Yigeant and Elizabeth E. Vigeant of Muskegon, Michigan, hereinafter called the parties of the second part,
“WITNESSETH :
“That whereas the parties of the first part are the original contractors for the building of houses on the following described properties:
“a—Lot 6, Block 5, Mona Heights Add., Muskegon Heights, Mich.
“b—Lot 13, Block 245, Muskegon Heights, Mich.
“c—Lot 101, Victory Addition, Muskegon Heights, Mioh.
“and
“Whereas the parties of the first part are desirous of cancelling their contracts with the owners of the above described properties, and
“Whereas the parties of the first part do owe past-due bills for labor and material furnished for the above described properties amounting to $2,434.50, as evidenced by separate sworn contractor’s statements, and
“Whereas the parties of the first part do own 1,500 /shares of stock, $1 par value, of the Mulvee Corpora tion and also have an equity in a house they are purchasing from William Woller on a land contract on which they do owe a balance of $2,040, said house being located at 319 E. Elliott St., Whitehall, Michigan, and
“Whereas the parties of the second part are willing to assume the responsibility of the past due bills as listed on the sworn statements and for the completion of houses, it is agreed as follows:
“1. In consideration of assuming the past due bills listed on separate sworn statements and of assuming the completion of said houses by the parties of the second part, the parties of the first part do hereby agree to pay the sum of $4,132.75.
“2. The parties of the second part will accept towards the sum of $4,132.75 the 1,500 shares of Mulvee Corporation stock at par value, tools and material at price of $297.32, account receivable from Dan Januska at $71.53, leaving a balance of $2,263.90.
“3. The parties of the first part do hereby assign, transfer and convey all their equity and right to the property located at 319 E. Elliott St., Whitehall, Mich, to the parties of the second part on condition that when sale of the property is made the proceeds of the sale will be applied to the present land contract and the sum of $2,263.90 and all sums over and above, minus selling costs will be turned over to the parties of the first part.
“4. It is also agreed that if the owner of the property of lot 13, block 245 (Dan Januska), does agree to increase his contract by an amount of $1,000, the parties of the second part will give parties of the first part credit of the extra $1,000.
“5. It is further agreed that if the account at Wood Tile Corp. and Nichols & Cox Lbr. Co. have been paid as indicated by an audit of their books, the parties of the second part will be given credit for $186.93.
“In Witness Whereof, the parties have executed this agreement on the day and year first above written.
“J. Thomas Mullins
“June R. Mullins
“Elizabeth E. Vigeant
“George H. Vigeant
“Oaiclan R. Senf”
One of the 3 houses specified in the above contract was the Januska house in question.
The cost of completion of plaintiffs’ house would have been $3,709.09, according to plaintiffs’ witnesses, or $3,400.00, according- to defendants’ testimony on examination by the court. Mullins turned over to defendants the contract plans and specifications of the Januska house together with the keys, evidently on or about August 27,1947, and afterward removed some material from the house apparently not needed in the construction. Plaintiffs made no showing that they ever requested or were refused the keys to the house or possession of the house. Defendants never put plaintiffs in possession of the house nor turned the keys over to plaintiffs.
Before the making- of the quoted contract, and also afterward, defendants informed plaintiffs that defendants required a thousand dollars more than the original contract price to complete the house. Plaintiffs definitely knew before October, 1947 that defendants would not complete the house unless additional moneys were paid. Plaintiffs refused to pay the additional sum of money unless the defendants would agree to certain conditions, which included a performance bond. The conditions named by plaintiffs were not acceptable to the defendants and all negotiations terminated in February, 1949.
The Januska house had it been completed at the specified time would have had a rental value in 1947 and 1948 of $65 per month.
After the agreement of August 29,1947 was made, Mullins turned over 1,500 shares of the Mulvee Corporation stock to defendants hut defendants claim that he did not pay the sum of $2,263.90 mentioned in paragraphs 2 and 3 of the agreement. In actual cash he paid only the sum of $750, leaving about $1,500, which defendants claim is still due them but plaintiffs claim that the $1,500 balance was extinguished by defendants’ receiving the assignment of the Whitehall property. Defendants claim that they are not bound by the contract of August 29, 1947 because of fraud on the part of Mullins and claim that Mullins sold his equity in the house in Whitehall, but in support of such claimed sale by Mullins defendants offered only hearsay testimony which-was stricken out by the court. Defendants never received any of the money paid by the Michigan National Bank for the construction of the Januska house.
Defendants completed the other 2 houses mentioned in the agreement of August 29, 1947. In April, 1947, the Mulvee Corporation had been formed by Mullins and the defendants in this case to engage in general construction work but the corporation never assumed any responsibility for the Januska contract and as we have heretofore noted, the corporation was dismissed as a defendant.
Defendants afterward became the sole owners of the Mulvee Corporation when Mullins turned over Ms stock to defendants pursuant to the agreement of August 29,1947.
In regard to the balance of $2,263.90 mentioned in the contract of August 29, 1947, the claim of plaintiffs is that the defendants accepted a transfer of the title of Mullins in the Whitehall property, and that the assignment thus made was an outright, unconditional assignment; it empowered the defendants to resell the interest conveyed to them without the con sent or intervention of the Mullinses; it obligated the defendants to turn over to the Mullinses any amount realized from a resale of the property in excess of $2,263.90, but did not restrict the selling price by fixing a minimum price for which the property should be resold; and it imposed no obligation upon the Mullinses to pay any deficiency which would result from a resale of the property for less than $2,263.90, but imposed on defendants the duty of acting in good faith and trying to realize surplus if they could.
Defendants made no sale up to the time of the trial of the Whitehall property. There is little testimony in the record concerning the item, $2,263.90. The contract itself is of peculiar nature in that particular. The trial court-held that defendants are not by reason of the claimed balance of $2,263.90 entitled to any release, in whole or in part, from their obligation under the contract of August 29, 1947 to complete the Januska house, in which particular we affirm the trial court’s finding.
Defendants claimed they should not be held to the fulfillment of any obligation under the contract of August 29, 1947 because of the fraud of Mullins and because the sum of $2,263.90 was not paid, which claim was rejected by the trial court and we affirm its ruling in that particular.
Among other things in the declaration plaintiffs alleged that by reason of the default of defendants, plaintiffs were deprived of the rental value of the house in question from and after June 1, 1947 to the date of the filing of the declaration and are still being deprived of the rental value. This averment was not denied or answered by defendants.
In Rich v. Daily Creamery Company, 296 Mich 270 (134 ALR 232), we say at page 282:
“There is no question but that it is a well-established rule that in case of a breach of contract the injured party must make every reasonable effort to minimize tbe damages suffered and that it would be tbe duty of the court upon request so to charge the jury. We hold, however, under the authorities that the burden is upon the defendant to show in mitigation of the damages claimed that the plaintiff has not used every reasonable effort within his power so to minimize his damages. Tradesman Co. v. Superior Manfg. Co., 147 Mich 702; Flickema v. Henry Kraker Co., 252 Mich 406 (72 ALR 1046); Milligan v. Haggerty, 296 Mich 62.”
See, also, Allen v. Whitlark, 99 Mich 492.
However, without an issue being raised in the pleadings over the matter of failure to make reasonable effort to minimize damages, plaintiffs saw fit to go into the subject and gave testimony as to plaintiffs not being put into possession and the key never having been turned over to plaintiffs. Defendants on cross-examination of plaintiff Januska by Mr. Kuck elicited Januska’s reason for not completing the building, that he did not have the money to get someone else to complete it, and didn’t want to make loans, though he had a contractor look at it and estimate what the completion would cost, and discussed with the Mulvee Corporation tbe matter of completing the house in company with his, Januska’s, attorney Bogoski.
The matter of the nonmitigation and the reasons for it were put in issue before the court. The finding of the court ignoring the effect of plaintiffs’ non-mitigation is in effect that plaintiffs were excused from mitigating, or had not failed to make reasonable efforts to mitigate. This conclusion we find against the clear weight of the evidence and in that particular, the finding of the trial court is reversed.
Defendant George H. Vigeant while under obligation to complete the contract because of his agreement with Mullins on August 29, 1947, after that date informed plaintiff J anuska that he would not complete it unless he obtained an additional thousand dollars or so more from Januska. The trial court found that 3 months was a reasonable time to complete the contract, which ruling seems to be fair and we affirm it. The delay of the completion of the structure from November 29, 1947 (3 months after the making of the agreement in question) was due to unjust and unreasonable efforts of Yigeant to get out from under an obligation to complete the house by concealment of his liability and by creating a false impression on the part of Januska that he, Yigeant, was not under obligation to complete.
The delay in the completion of the construction occasioned by negotiations was for that and other reasons shown in the testimony all the fault of defendant Vigeant. Negotiations ceased in the fore part of February, 1949, at which time plaintiff was certain that defendant Yigeant would under no circumstances fulfill his obligation to complete the house. Plaintiff was at that time obligated to procure another contractor to complete the construction of the house and a reasonable time so to do is 3 months from and after February 1, which would be May 1, 1949. By a clear preponderance of the evidence, plaintiffs are entitled to recover for rentals from November 29, 1947 to May 1, 1949, $1,105 and for no period subsequent to May 1, 1949.
The court’s finding was that a fair estimate of the reasonable cost to complete the house in accordance with the plans and specifications agreed upon would be $3,709.09, an excess of $1,304.09 over the original contract price. The court’s finding that defendants Yigeant and defendant Mullins are liable for the amount of $1,304.09 for such item is within the fair bounds of the testimony and the court’s finding in that particular is affirmed.
The finding of the court that the defendants were liable to'plaintiffs in the sum of $1,755 for loss of rentals is for the reasons before given, set aside. The case is remanded to the trial court for a re-determination of the amount of loss for rentals in keeping with this opinion, and entry of appropriate judgment. Neither party having prevailed in full, no costs are allowed.
Boyles, North, Dethmers, Butzel, Carr, Bushnell, and Sharpe, JJ., concurred. | [
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Carr, J.
While riding in an automobile, owned and driven by defendant, plaintiff sustained personal injuries in a traffic accident occurring March 1, 1952, on a public street in the city of Midland. Claiming that his injuries were the result of negligence on the part of the defendant, plaintiff brought suit to recover damages. In his declaration he alleged that at the time of the occurrence he was “assisting the defendant, as his agent, in delivering and selling peanuts at various business establishments throughout the county of Midland which constituted the defendant’s regular peanut route.”
On the trial of the case plaintiff testified that on the date in question he met defendant in the Eagles club room in Midland, and that defendant asked him to go with him on an automobile ride to be taken by ■defendant for the purpose of selling and distributing peanuts. Plaintiff accepted the invitation. In connection with his business defendant stopped at 4 different places. At 2 of such places it appears that plaintiff did not leave the car. At a third place he assisted defendant, at the latter’s request, by counting pennies from a peanut vending machine, and at the last business place visited, plaintiff, at defendant’s suggestion, assisted by carrying a carton of peanuts into the place. The parties then went to the UMWA Hall in Midland where a public meeting ivas being held. Defendant entered the hall, but it appears that plaintiff did not do so, remaining outside and visiting with friends who were present. From the hall defendant drove to the downtown section of the city where the accident happened in proximity to the intersection of Ashman and Ellsworth streets. It is not disputed that defendant intended to take plaintiff either to the downtown section of the city or to his home, as the parties might agree.
It was defendant’s claim on the trial that plaintiff was a guest passenger, that he was invited to take the ride for social purposes only, and that there was no understanding or agreement whatsoever with reference to the rendering of services by plaintiff by way of consideration for the transportation. At the conclusion of plaintiff’s proofs a motion for a directed verdict was made on behalf of defendant, and taken under advisement by the court. The motion was renewed after the introduction of defendant’s evidence, and was again taken under advisement. The trial court submitted to the jury the question as to the relationship existing between the parties at the time of the accident, charging specifically that if plaintiff was a guest passenger he could not recover. The issues as to negligence on the part of the defendant, proximate cause, and possible contributory negligence on plaintiff’s part, were also submitted, as well as the matter of damages in the event the jury returned a verdict in plaintiff’s favor. Such verdict was returned in the sum of $5,000. Motions for judgment notwithstanding the verdict and for a new trial were made and denied. Defendant has appealed, asserting that the trial court was in error in not directing a verdict and in denying the motions.
The principal question at issue relates to the status of the plaintiff at the time of the accident. No claim is made in his behalf that the evidence was sufficient to justify a finding of gross negligence or wilful and wanton misconduct on the part of the defendant constituting a proximate cause of the injuries sustained by plaintiff. If plaintiff was in fact, as claimed by defendant, a guest passenger, he is precluded from recovering damages by the provisions of PA 1949, No 300, § 401 (CL 1948, § 257.401 [Stat Ann 1952 Rev § 9.2101]). Said section reads in part as follows:
“Provided, however, That no person, transported by the owner or operator of a motor vehicle as his guest without payment for such transportation shall have a cause of action for damages against such owner or operator for injury, death or loss, in case of accident, unless such accident shall have been caused by the gross negligence or wilful and wanton misconduct of the owner or operator of such motor vehicle and unless such gross negligence or wilful and wanton misconduct contributed to the injury, death or loss for which the action is brought.”
That payment for transportation does not necessarily require a money consideration has been repeatedly recognized by this Court. The rendition of services or other giving of value, pursuant to an agreement therefor, is sufficient. Peronto v. Cootware, 281 Mich 664; Anderson v. Conterio, 303 Mich 75. In the instant case, however, there is no proof that defendant expressly invited plaintiff to go on the trip for the purpose of rendering assistance in the sale and delivery of peanuts, or that plaintiff promised and agreed to render any such services. It appears that the parties had previously ridden together in defendant’s automobile on trips undertaken by the latter for the purpose of servicing his customers. There is no testimony in the record as to whether or not such prior relationship was purely social in character or involved agreements to furnish services in return for the transportation.
In order to be entitled to recover damages it was incumbent on the plaintiff to establish, among other matters, the relationship between the parties and negligent conduct on the part of the defendant constituting a breach of the duties owing by the defendant, arising from such relationship, with reference to plaintiff’s safety. Hasbrook v. Wingate, 152 Ohio St 50 (87 NE2d 87, 10 ALR2d 1342). It is undisputed that plaintiff and defendant had been good friends for some time prior to the accident. The former’s claim as to the purpose of the trip is indicated by the following excerpt from his testimony:
“Q. Now, was the purpose of this trip, you going along because he (Mr. Keeley) wanted some company, is that what he was interested in?
“A. Well, company and it also makes it easier as far as, if you have 2 items to carry into a place it makes it much more easier, one can carry 1 and another 1, instead one might overload himself with both of them.
“Q. I mean there wasn’t any idea here you were to be paid for this ?
“A. No.
“Q. You were just going along as a friend, is that right?
“A. No pay whatsoever.
“Q. You were just going as a friend, is that right, sort of a social thing, is that right ?
“A. Well, it was, I will say social in the extent it is, well, I mean I can’t exactly put it in words, it is a type of help, you see a man stuck in the road or something you give him a hand, maybe it is your best friend, I mean, you assist him.”
This Court has heretofore passed on situations analogous to that in the case at bar, and has indicated the interpretation to be placed on the provision of the statute above quoted. In Re Harper’s Estate, 294 Mich 453, it was the claim of the plaintiff that his status was not that of a guest passenger because it was his purpose in undertaking the trip on which he was injured to assist in the driving of the car. In sustaining the action of the trial court in directing a verdict for defendant, based on the conclusion that plaintiff was a guest passenger and, hence, could not recover without showing gross negligence or wilful and wanton misconduct, it was said:
“The offer to help drive was not intended as a reward for the ride, and at the time the parties themselves would have resented any suggestion that their relation was other than social. The subsequent intervention of plaintiff’s self-interest should not be permitted to alter the result. The proffer of assistance in driving was only a friendly gesture, and the sociability element was the dominant, if not sole, thought. Mr. Harper was a ‘host’ and plaintiff was his ‘guest’ in the full and complete sense of the words. Morgan v. Tourangeau, 259 Mich 598; McGuire v. Armstrong, 268 Mich 152 (36 NCCA 252); Cardinal v. Reinecke, 280 Mich 15; Crook v. Eckhardt, 281 Mich 703. See, also, Chaplowe v. Powsner, 119 Conn 188 (175 A 470, 95 ALR 1177), and annotations in 82 ALR 1365 and 95 ALR 1180.”
In Bushouse v. Brom, 297 Mich 616, plaintiff accompanied defendant on an automobile trip, after indicating on receipt of the invitation to do so that she would pay one half of the expenses. It was there-held that such expression of a desire on plaintiff’s part, carried out in part at least, did not justify a conclusion that there was any legal obligation resting on plaintiff at the time she entered on the trip to pay a fixed portion of the expenses. The Court quoted with approval from McCann v. Hoffman, 9 Cal2d 279, 285 (70 P2d 909), as follows:
“ ‘The great weight of authority is to the effect that the sharing of the cost of gasoline and oil consumed on a trip, when that trip is taken for pleasure or social purposes, is nothing more than the exchange of social amenities and does not transform into a passenger one who without such exchange would he a guest, and consequently is not payment for the transportation.’ ”
In reversing a judgment in plaintiff’s favor, it was said in part:
“We do not hold herein that under a given state of facts an express agreement to pay a given proportion of the expenses of operating an automobile may not constitute the one transported a passenger for hire. But each case must be decided in the light of its own facts; and we think it is always important to ascertain, if possible, what it was that primarily motivated the undertaking. In the instant case it was clearly the friendship and social relation of these parties which resulted in plaintiff going on the trip with defendant. It was not a commercial arrangement or one in which the owner or driver of the automobile was induced to transport a passenger for an agreed consideration.”
The above decisions were cited and followed in Brody v. Harris, 308 Mich 234 (155 ALR 573). See, also, Herman v. Metal Office Furniture Co., 317 Mich 185. In Anderson v. Conterio, supra, cited by appellee, the jury found that, as claimed by plaintiff, the trip on which the accident occurred was undertaken primarily for business purposes. The testimony on the point was squarely in dispute. A like purpose existed in Peronto v. Cootware, supra, and in Bond v. Sharp, 325 Mich 460. In Hunter v. Baldwin, 268 Mich 106, the plaintiff rode in the car of one of the defendants to a neighboring village where the parties remained for a period between 2 and 3 hours. On their return to the ear the motor failed to start and the driver asked plaintiff to crank the engine, the driver being behind the wheel at the time. Plaintiff complied with the request and the car, which the driver permitted to remain in gear, started forward, resulting in serious personal injury to the plaintiff. It was not disputed that plaintiff was a guest passenger on the trip from his home to the village, nor did the proofs indicate gross negligence or wilful and wanton misconduct on the part of the driver of defendant’s automobile. Recovery was sustained on the theory of ordinary negligence, such holding being based on the conclusion indicated by the following excerpt from the opinion:
“While this is a case of first impression, we are constrained to hold that when plaintiff left the car upon arrival at the village of Kingston and remained away from it for a period of 2 or 3 hours, he ceased to be a guest passenger and that while in the act of cranking the car at the request of the operator of the car he had not resumed the position of that of a guest passenger.”
The case of Hasbrook v. Wingate, supra, reported in 10 ALR2d 1342, is followed by a somewhat extended annotation in which numerous decisions from different jurisdictions are cited and discussed.
An analysis of the testimony in the instant case,, with particular emphasis on the statements made by plaintiff as a witness in his own behalf, leads to the conclusion that there was no contractual relation of any kind or character between him and the defendant in connection with the trip in question. There is no-showing that any statements were made by either party at the time indicating that transportation, was to, be furnished to plaintiff in consideration; of any undertaking on his part to' render services to de fendant. His acts in assisting defendant, as above set forth, are wholly consistent with the claim of the defendant that plaintiff was asked to go on the trip primarily for social-reasons. Plaintiff’s statement in his testimony impliedly comparing what he did for defendant to assisting another, perhaps a friend who may need help because of street conditions, is significant. Under ordinary circumstances such assistance is not rendered with any thought or expectation of compensation. The record here before us does not justify a conclusion that the primary purpose of plaintiff’s accompanying defendant on the afternoon in question was to help him in his work. There is no showing that defendant anticipated any need for such help or, in fact, that any such necessity actually existed. Rather, what plaintiff did amounted to mere acts of courtesy extended to a friend and which he undoubtedly would have rendered without reference to his having ridden in defendant’s automobile.
In view of the conclusion reached as to the status of plaintiff at the time of the accident, it becomes unnecessary to discuss the other questions in the case. Defendant was entitled to a directed verdict on the ground that plaintiff was a guest passenger and that the proofs offered were insufficient to establish gross negligence or wilful and wanton misconduct.
The judgment is reversed without a new trial, and the case is remanded with directions to set aside the judgment entered in plaintiff’s favor on the verdict of the jury and to enter judgment for defendant. Defendant may have costs.
Dethmers, C. J., and Adams, Butzel, Bushnell, Sharpe, Boyles, and Reid, JJ., concurred. | [
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Butzel, J.
Arthur S. Storm, plaintiff, formerly of'. Detroit, had been admitted to the State Bar. of Michigan in 1933. Evidently he had a very small practice-as he did not have his name on the door where he had his office in the office of another attorney. He did not even have an attorney’s letterhead' and' at the-trial was unable to recall whether or not he had ‘been listed as a lawyer in the Detroit telephone directory-at the time of the complicated transaction herein set forth. He was also a duly-licensed and active real estate broker and had been engaged in the real estate business for a long period prior to his admission to the bar. He was in the army almost continuously from 1940 to 1945, and in January, 1946, he ceased to be a resident of Michigan. The latter factors may in part account for the long delay in bringing this action, which arises out of events that took place in 1939 and the early part of 1940. However, the ease did not reach trial until March of 1951; the record on appeal was not filed until August 20, 1952, and appellees’ brief was not received until January 9, 1953. The memories of witnesses may readily become dim as to details of transactions over 12 years old. A large part of the delay in the present case seems inexcusable.
Plaintiff claims that prior to 1939, as a real estate broker he had an unsatisfactory business experience with defendant James Swan Eldridge, who is also a member of the bar and one of several attorneys whom plaintiff had employed while actively engaged in the real estate business. In the earlier transaction plaintiff claims he had been employed as a real estate broker by defendant to purchase a parcel of property at a certain price, but no agreement was reached and plaintiff was not paid for his services. There was no written contract with him as a real estate broker.
Defendant was actively interested in the Forest Lawn Cemetery Company and Roseland Park Cemetery Association, codefendants herein. Plaintiff claims that because of his previous unprofitable experience with defendant, he insisted that the services now in controversy should be performed by him in the capacity of an attorney and not as a real estate broker, and this action is brought solely to recover for legal services.
Plaintiff testified that defendant asked'him to acquire for him, or for others only partially disclosed or decided upon, a 38.3-acre tract of land located in the northeastern part of Detroit, and immediately north of the cemetery of codefendant Forest Lawn Cemetery Company. The association between defendant and the 2 codefendants was a close one, they having adjoining offices in a Detroit office building. Defendant was a director of each of them, president of 1 and resident agent of the other. At-the time of the-first discussion between plaintiff and defendant in regard to the acquisition of the 38.8 acres, the latter was undecided in whose name he wanted to take title to- the property. He mentioned bobh co-defendants, his brother and himself. Plaintiff claims that defendant stated that plaintiff might obtain the option to purchase the land in -his own name; that he told plaintiff of earlier efforts to purchase the property but the price o'f: $2,000 per acre asked was-unsatisfactory; that he and his associates^ desired to acquire-the property for $1,000 an acre, or .less, and that because • of the previous unsuccessful negotiation that neither defendant’s name nor- thqt of tito dodefendants was to be disclosed to the - owner. Plaintiff claims that, it was agreed between defendant ;and himself that he was to be paid- 'an attorney fee, the amount to be contingent upon his success in acquiring the property for a price of less than $1,000 am ¡acre.
'- The taxes against the lots into which the: property had been subdivided had been unpaid for 11 years and aggregated a very large amount in excess- of the value of the property. However, the.-State-had.acquired title to the property at tax sale and it was to be offered for sale in accordance with the: scavenger act, CL 1948, § 211.351 et seg. (Stat Ann 1950 Rev § 7.951 et seg.), but as it stood in 1939 (PA 1937, No 155, as amended by PA 1939, No 244). Plaintiff claims that defendant Eldridge agreed to pay him a contingent fee, amounting to whatever savings, he-could effect between the price at which he could obtain the property for and $1,000 per acre. However,, if the price should be more than $1,000 an acre, then plaintiff claims that it was agreed that he should be-paid for his time on a per diem basis, according to-the schedule promulgated by the Detroit Bar Association.
The 38.3 acres were a part of a resubdivision of J. Calvert Sons’ Van Dyke subdivision, city of Detroit, Wayne county, Michigan. The title had stood in the name of Calvert Fuel & Supply Company, the last owners before it was acquired by the State at tax sale. Under the scavenger act, supra, the last, owner still had the right to bid and meet the bid at the scavenger sale.
Just what transpired at the first meeting between Storm and Eldridge is in dispute. Plaintiff did meet Mr. Curtis, an attorney in Eldridge’s office and employ. Curtis testified that at that time he told plaintiff the condition of the title, including- the tax situation, and that the title subject to the State’s superior rights was then held by the trustee in bankruptcy of the Calvert Fuel & Supply Company,, which, as last owner, still had certain preferential rights at the scavenger sale; that he explained the-provisions of the then new scavenger.sale act, supra,. to the plaintiff. The Calvert Fuel & Supply Company was bankrupt and its affairs were being administered by the United States district court, eastern district of Michigan. Notwithstanding Curtis’ testimony, plaintiff claims that he had to go to the office of the United States district court to ascertain that a Mr. Starr was the trustee in bankruptcy and that this is one of the many services rendered by him as-an attorney. ■ He sets forth with a great deal of particularity the various items that constituted his serv ices as an attorney and while they would not be at all impressive to an attorney of experience, it undoubtedly made an impression on the jury. Plaintiff had to obtain from the records the amount of past due taxes on approximately 248 lots in the 38.3 acres and the assessed valuation of each lot for the years 1938 and 1939 so as to determine what the minimum bid, 25% of the last assessed valuation, would amount to when it came to the sale under the scavenger act, supra. Plaintiff further claims that he was asked for legal advice of various kinds although defendant was an attorney and his employee, Mr. Curtis, was also an attorney. Since plaintiff claims remuneration for legal services and not as a real estate broker, and the jury held with the plaintiff, we need not discuss the claimed conflict in the decisions of this Court as to whether the statute of frauds applies to real estate brokers employed to purchase but not to sell real estate. See Smith v. Starke, 196 Mich 311; Stephenson v. Golden, 279 Mich 710, 753.
When the purchase of the property was first discussed by plaintiff and defendant, the former was handed a rough drawing of the 38.3 acres which he was to try and acquire. He contends that when he returned to his office he wrote on the bottom of this drawing “fee to be the difference between what property is acquired for and $1,000 per acre * * * if over $1,000 per acre on a minimum per hour per diem basis.” Plaintiff interviewed the trustee in bankruptcy and his attorney a number of times. The latter insisted that they wanted to get at least $15,-000 net from their property over and above what had to be paid for it at the approaching sale under the scavenger act, supra. Defendant was not told at the time that plaintiff learned from the trustee that the bankrupt also had an interest as the last owner before tax sale of 127 lots immediately oppo site and to the east of the 38.3 acres. A more detailed description is not necessary. These 127 lots were still compact and constituted several blocks with the exception of a very few that had been sold. The lots aggregated 14.5 acres. The trustee refused to sell his rights in the 38.3 acres for the price plaintiff offered, unless he could also sell the 14.5 acres at a proportionate price per acre. Agreements were drafted by the plaintiff and William Gf. Starr, trustee for Calvert Fuel & Supply Company, bankrupt, dated January 30, 1940. They provided for a price contingent on the amount bid at the scavenger sale. The contract for the 38.3 acres provided for a graduated scale with an outside total figure of $53,655. It provided that plaintiff should pay the amount of the bid plus 40% of the difference between such amount and $51,655, and if the property were bid in for a maximum amount of $51,655, then defendant would pay an additional $2,000. If the property were bid in for more than $51,655, the contract would be terminated and each party released therefrom. It further provided for a payment of 10% of $51,655 as a deposit to be made within 9 days after the date of the contract, and if such deposit were not made within such time, the contract became void. A contract along similar lines was made the same day for the 14i5 acres, providing for a sliding scale and a deposit of $2,517.75, this being 10% of the maximum bid at the scavenger sale, this amount also to be paid within 9 days from the date of the contract and returned if the bid price exceeded $25,177.50.
Although plaintiff claims that he spent 6 weeks in negotiating with the trustee in bankruptcy for the tentative purchase of the property and agreement herein referred to, dated January 30, 1940, plaintiff evidently was mistaken as Starr was not appointed trustee until January 4, 1940. He filed his bond the following day. The contract with plaintiff is dated January 30,1940. He also places undue importance on other acts. He could have obtained the information as to who was trustee of the bankrupt’s estate, possibly by telephone, or at most in a few moments from the clerk’s office in the United States district court. His statement of the “work done” undoubtedly impressed the jury. Plaintiff claims that the verbal contract with defendant provided also for a per diem remuneration in the event that the net price exceeded $1,000 per acre. Nevertheless, it is quite significant that plaintiff kept no track of the time necessary to secure the required information and the entering into the contract with the trustee in bankruptcy. Defendant left for Florida on or about the 20th day of January, 1940. The contracts with the trustee in bankruptcy were entered into on January 30, 1940, and plaintiff immediately sent a letter and a copy of the contract for the 38.3 acres to defendant. He also sent a draft of an agreement dated January 30,1940, between himself and a blank space for insertion of the name of defendant or his nominee, by which the latter was to become the assignee of plaintiff’s contract with the trustee in bankruptcy for the purchase of that property. The tendered draft of agreement provided for payment of $6,000 within 7 days and stated that if the agreement to pay such amount for the assignment were not in plaintiff’s hands within such time then “first party shall not be bound by this agreement and shall be at liberty to make such other disposition of his interest in the property as he may deem fit.” On the following day he wrote again that since his previous letter he had additional information which might be of interest to defendant; that he had secured a contract for the 14.5 acres almost adjacent to the 38.3 acres; that if defendant was interested in purchasing the 14.5 acres satisfactory arrangements could lie-made. In part, the letter reads: - A
“Should you come to a conclusion that you are not interested in the 38 acres or the adjoining 128 lots, I would appreciate your wiring me, at my expense, immediately as I have an opportunity to dispose of my contracts at a much more favorable basis to me than that upon which I have offered it to you, to a local building firm who proposes to use the land for the erection of the so-called low-priced housing projects.”
Plaintiff admits that under his alleged verbal contract with defendant he was entitled, at the most, to only $4,639.54 for the services in connection with the 38.3 acres. As an attorney for defendant, as plaintiff claim.s he was engaged, he was in a position of trust and was attempting to collect or extort a sum in excess of the maximum to which he was entitled by taking- advantage of his fiduciary relationship as an alleged attorney for defendant. The $6,000 demanded was only for services in regard to the 38.3 acres. He stated in his second letter that terms could be also, arrived at in. regard to the 14.5 acres, notwithstanding the fact that it was as an attorney acting for defendant that he learned of the additional acreage, almost contiguous to the 38.3 acres, :and which the trustee would- only sell in connection with the sale of the 38.3 acres. Defendant did not accept plaintiff’s unusual offer, nor did he put up the deposit that plaintiff was required to make under his contract- with the trustee in bankruptcy. Plaintiff never made any deposit for either the purchase of the 38.3 or the 14.5 acres. Defendant did, however, tell plaintiff to secure renewals of the contracts from time to time and plaintiff did secure such renewals. In July, however, plaintiff found out that defendant had hired another attorney who succeeded in, obtaining an agreement' with the trustee to purchase the right of the bankrupt to bid at the scavenger sale or to match any other bid, -for a sum, less than the amounts provided for in the previous contracts, which plaintiff made with the trustee, and which never became effective because plaintiff did not make the deposits required thereunder. The trustee, or his assignee, would have been obliged to return these deposits if either was not the successful bidder at the scavenger sale. The case was tried before a jury and the trial judge directed a verdict for codefendants. The jury rendered a verdict for $6,000 against defendant, who appeals.
Plaintiff cross-appeals, claiming that the case against the 2 codefendants should not have been dismissed and, also, that the court erred on the question of interest. The case was properly dismissed as to-the 2 codefendants as there was insufficient testimony to show any liability on their part. Inasmuch as plaintiff, as cross-appellant, does not raise the question in his brief, we need not further discuss it. In view of our decision, we need not discuss his claim of error in the court’s disallowance of interest.
We have hereinbefore disposed of defendant’s claim that plaintiff acted not as an attorney but as a real estate broker and, therefore, cannot recover on a verbal contract.
Defendant claims immunity from personal liability because he was acting in the capacity of an agent. He made no such claim during the trial and raises it for the first time on motion for a new trial. The question was thus not submitted to the jury. However, there is sufficient testimony to show that not only was he personally interested in the purchase of the property but that he was further personally liable as an agent for only partially disclosed principals. The question is fully discussed in Dodge v. Blood, 299 Mich 364 (138 ALR 322), in which the comment from 2 Restatement, Agency, § 321, is quoted. Inasmuch as defendant was acting in a manner so that the codefendants could not be bound. he was personally liable. See Newberry v. Slafter, 98 Mich 468.
The records show that plaintiff had no contract with defendant at any time for the purchase of the 14.5 acres. If he acted as attorney for defendant, as he claimed, it was his duty to immediately disclose the opportunity or necessity to purchase the 14.5 acres in connection with the 38.3 acres. As an attorney under a contract in which a possible per diem compensation might have become due, it was his duty to disclose all facts to his client and not take advantage of the fiduciary relationship that arose in connection with the 38.3 acres. As an attorney he was in a position of trust. The opportunity to purchase the 14.5 acres arose solely through the negotiations on behalf of defendant. The 14.5 acres could not be bought except in connection with the purchase of the 38.3 acres. In the last analysis, defendant never bound himself to purchase the 14.5 acres. He never consummated such purchase. Plaintiff claims that he was stopped because defendant ordered him to desist and threatened him with disbarment proceedings. Under no sound theory can there be any recovery for any services in connection with the 14.5 acres.
Plaintiff unquestionably acted fraudulently in demanding $6,000 for services solely in connection with the 38.3 acres when, according to his own admission, only $4,639.54 would be due him. Although plaintiff demanded the $6,000 as his fee and made no counteroffer, the judge in his charge to the jury stated that plaintiff’s position was that the demand for $6,000 was simply a “counteroffer.” There is no basis for this statement in the testimony. It constitutes error and in itself is sufficient to necessitate a new trial. Plaintiff further claims, however, that after he made the demand for $6,000 plus such other sums as might be agreed upon for services in regard to the 14.5 acres defendant did not discharge him but told him to keep on negotiating and seeming renewals of his agreement with the trustee and that he further gave legal advice in regard to restrictions on the property and the vacating of the plat, although in subsequent testimony he stated that the plat for the subdivision, so far as the 38.3 acres were concerned, had already been vacated when he examined the tract index to ascertain the owner of the property. When plaintiff learned that another attorney, acting for defendant, had succeeded'in obtaining an agreement from the trustee to sell at a much lower price, he asked defendant for payment of fees and defendant referred him to his brother, who offered to pay a 5% real estate brokerage fee and offered as much as $800, but plaintiff refused to accept such amount. Plaintiff performed some services after defendant learned of his conduct and demands. Defendant did not deny any part of plaintiff’s testimony except to state that he never hired him as an attorney but on the other hand he had.acted as plaintiff’s attorney when he was in a real estate company which bore his name.; further, that Mr. Curtis looked after his legal work if he needed any assistance. If this were an equity suit, heard cle novo, wé would have no difficulty in coming to conclusions but it is a law action in which plaintiff raises the question of waiver. .•
The judgment should be set aside and a new trial ordered solely on the question of whether defendant, after learning of plaintiff’s conduct, waived the defense of fraud and duplicity by “instructing” plaintiff to continue his efforts and telling him he would be paid for his services, as claimed by plaintiff, and if not waived, whether plaintiff is entitled to recover the reasonable value of his services for what he did at defendant’s request after the latter learned of plaintiff’s improper conduct. In no event can plain tiff recover more than $4,639.54, the amount claimed for his services in connection with the 38.3 acres. Defendant will recover costs in both courts.
Dethmees, C. J., and Adams, Carr, Bushnell, Sharpe, Boyles, and. Beid, JJ., concurred. | [
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Bushnell, C. J.
Plaintiff’s decedent, Donald W. Webster, died on the day following an injury suffered while in the employ of defendant Rotary Electric Steel Company. At the time of his death, February 12, 1945, he had two dependents, his wife, Mary M. Webster, and an infant daughter, Connie Mae Webster, then 18 months old. There being no dispute concerning the dependents’ right to compensation, payments of $21 per week were begun in accordance with section 5, part 2, of the workmen’s compensation act (2 Comp. Laws 1929, § 8421, as amended by Act No. 245, Pub. Acts 1943 [Comp. Laws Supp. 1945, § 8421, Stat. Ann 1947 Cum. Supp. § 17.155]).
Decedent’s widow remarried on November 26, 1945, and, under the provisions of subparagraph (c) of section 6 of part 2 of the workmen’s compensation act (2 Comp. Laws 1929, § 8422 [Stat. Ann. § 17.156]), her right to compensation ceased. A dispute having arisen as to whether the proper rate of compensation to the minor dependent should be $19 or $21 per week, the commission ordered a hearing and the deputy commissioner awarded her $21 per week.
On appeal the compensation commission held:
“There is no provision in the statute for a comparable reduction of compensation in the event of the remarriage of a dependent wife where there are other total dependents entitled to compensation as such. On the contrary, subsection (c) of section 6 of part 2 of the workmen’s compensation act provides that in the event of the remarriage of a dependent wife that her compensation shall be payable ‘to the person or persons either wholly or partially dependent upon deceased for support at his death as provided in clause (b) of this section.’ It, therefore, appears that the compensation payable to the dependent wife is now payable to the minor child, Connie Mae Webster. The award of the deputy commissioner providing for the payment of compensation to such minor child at the rate of $21 per week is, therefore, affirmed.”
Prior to 1943, section 5 of part 2 of the workmen’s compensation act provided for the payment of a fixed amount, regardless of the number of dependents, of not more than $18 per week nor less that $7 per week for a period of 300 weeks from the date of the injury. This section was amended by Act No. 245, Pub. Acts 1943, to provide compensation for dependents “for a period of 400 weeks from the date of the death, the weekly payment not to exceed, however, $19.00 for one dependent; $21.00 for two dependents; $23.00 for three dependents; $25.00 for four dependents; and $27.00 for five or more dependents, nor to be less than $8.00 for one dependent; $10.00 for two dependents; $12.00 for three dependents; $14.00 for four dependents; and $16.00 for five or more dependents.”
No change was made in section 6 of part 2 of the act, which continued to read in part as follows:
“(b) * * * In all cases mentioned in this section the total sum due the surviving wife or husband and her or his own child or children shall be paid directly to the surviving wife or husband for her or his own use, and for the use and benefit of her or his own child or children; * * *
“(c) Upon the remarriage of a dependent wife receiving compensation as such, compensation payments to such wife shall cease, and such compensation, if any, shall be payable to the person or persons either wholly or partially dependent upon deceased for support at his death as provided in clause (b) of this section.”
The question presented is purely one of statutory construction and is a matter of first impression since the 1943 amendment.
The commission construed the intent of the legislature to be that upon a decrease in the number of dependents the payment to those remaining shall in total be the same as the payments that were made before such decrease.
Although we may not usurp the law-making function of the legislature, the proper construction of a statute is a judicial function, Albert v. Gibson, 141 Mich. 698, and we are required to discover the legislative intent, People v. Marxhausen, 204 Mich. 559 (3 A.L.R. 1505); Miles, ex rel. Kamferbeek v. Fortney, 223 Mich. 552; Gwitt v. Foss, 230 Mich. 8; and People v. Gould, 237 Mich. 156.
Where, however, the language is of doubtful meaning, a reasonable construction must be given, looking to the purpose subserved thereby. Attorney General v. Bank of Michigan, Harr. Ch. (Mich.) 315; Bennett v. Michigan Pulpwood Co., 181 Mich. 33. Its occasion and necessity are matters of judicial concern, Sibley v. Smith, 2 Mich. 487, and Bennett v. Michigan Pulpwood Co., supra, and its purpose should be effected if possible, People v. Stickle, 156 Mich. 557. Its spirit and purpose should prevail over its strict letter, Stambaugh Township v. Iron County Treasurer, 153 Mich. 104. Injustice in its application should be prevented, Attorney General, ex rel. Common Council of the City of Detroit, v. Marx, 203 Mich. 331, and absurd consequences avoided, Attorney General v. Railway, 210 Mich. 227.
In this instance it is particularly important to construe the amended section with other applicable sections. See People v. Railway Co., 228 Mich 596. Every part of the amendatory act should be given effect, if possible. Attorney General, ex rel. McKay, v. Detroit & Erin Plank Road Co., 2 Mich. 139; People v. Burns, 5 Mich. 114; City of Grand Rapids v. Crocker, 219 Mich. 178. Resort may be had to other statutes relating to the same subject. Miles, ex rel. Kamferbeek, v. Fortney, supra; In re Kreiner, 156 Mich. 296. Statutes in pari materia should be construed together, Board of Control of the Michigan State Prison v. Auditor General, 197 Mich. 377, and the purpose of the legislature ascertained, C. N. Ray Corporation v. Secretary of State, 241 Mich. 457.
We do not agree with the interpretation placed upon the amendment by the commission. Its purpose was to more clearly reflect in payments to dependents the principle of compensation; and in order to have the act achieve this purpose and lighten the burdens of industrial misfortunes, the amount of payments to dependents was controlled by the number of dependents. There is no reason why a diminution at any time thereafter in a number of dependents should increase the total compensation to remaining dependents. Such application would turn the purpose of the act into the imposition of a penalty upon employers. So applied in this instance, after the remarriage of her mother the infant dependent would receive more than the mother could have received had she been the sole dependent.
The order of the commission is vacated and the cause is remanded, with instructions to enter an order awarding plaintiff Connie Mae Webster compensation at the rate of $19 per week after the date of the remarriage of her mother. It is further ordered, that any amount in excess of $19 per week,if paid to this minor dependent since the remarriage of her mother, shall be deducted from future payments. A matter of public import and statutory construction being involved, no costs will be taxed.
Sharpe, Boyles, Reid, North, Dethmers, Butzel, and Carr, JJ., concurred. | [
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Butzel, J.
Defendant was charged with taking-indecent liberties with a female child under the age of 16 years. Act No. 328, § 336, Pub. Acts 1931 (Comp. Laws Supp. 1940, § 17115-336, Stat. Ann. § 28.568). He was convicted by a jury and sentenced to a term of from 2 to 10 years. The prosecuting witness, whom we shall refer to as the little girl, was eight years of age. There Avas testimony that on a Saturday afternoon she and tA\-o other children of the ages of 9 and 10 years attended a motion picture sIioav situated on Plymouth road in the city of Detroit between seven and nine miles from defendant’s home at 2628 Bagley avenue, Detroit. The little girl with her two companions had seats in the middle of the theater, she sitting next to the man alleged to be defendant, with her two companions the other side of her. An aviation picture was being shown and the man began to explain it to her. She claims that he commenced to feel her all over, that he took her hand and put it on him “some place” and then put his hand under her dress, moved it about, et cetera. This continued for 10 minutes. He then gave her a dollar bill and told her to buy some candy. The woman at the candy counter, upon being- told by the child how she obtained the money, called the usher, a boy of 16 years of age, and directed the little girl to point out the man to the usher. The latter accompanied the girl to the place where the man was sitting and she pointed him out. Shortly thereafter the man told the little girl that he was going out to get a drink. He did not return. However, on his Avav out of the theater the usher pointed out the man to the woman in charge of the candy counter, and also to her husband, the manager of the theater, Avho was just coming in at the time. All three had a good look at him.
When the little girl arrived home she told her father, a member of the police force, what had happened. Police officers went to the home of the usher, showed him a number of photographs, and he identified one of them as the man whom the little girl had pointed out. Officers thereupon went to the home of defendant, and found him in bed with his wife, who at the time was suing him for a divorce. At the police show-up, when five men were lined up before her, the little girl failed to positively identify defendant. Later the same day she was in the same room with defendant at police headquarters and she said she was not sure defendant was the man. In fact, she was not able to identify him at first at the examination. At the trial she positively stated that he was the man. The usher, the manager of the theater and the woman who ran the candy counter were positive in their identification. No testimony whatsoever was elicited either by the prosecution or the defendant as to how the police came into possession of the photograph of the defendant prior to his arrest in the instant case. Defendant testified that he had never theretofore been arrested and convicted.
Defendant claimed an alibi and he, his wife, his son, and four other witnesses gave testimony to prove the alibi. He owns the premises where he lives. He has a hat-cleaning and shoe-shining shop in front and lives in the rear. His wife lives upstairs. He works the entire week in a meat-packing plant except on Saturdays, which day, together with evenings, he devotes to his hat-cleaning and shoe-shining business. He testified that that Saturday was a busy day and that many customers came to his place. He employs no help.
A plain question of fact was presented as to the matter of identification. The jury brought in a verdict of guilty. We cannot say that the verdict was not supported by sufficient evidence so as to show defendant was guilty beyond a reasonable doubt. The jury was the judge of the credibility of the witnesses.
Numerous errors are assigned. Defendant particularly stresses the fact that the prosecution failed to indorse on the information the names of the two companions who sat next to the little girl in the theater, but did not appear at the trial so far as the record shows. There was no showing of any kind as to what, if anything, the two companions of the little girl could have testified to as far as the identification of defendant is concerned. It is contended merely that theV are res gestae witnesses. No objection whatsoever was made as to the failure to make such indorsements until defendant made a delayed motion for a new trial months after the case had been appealed to this Court. The trial court denied the motion, but with the reservation and understanding that the question raised might be submitted by defendant together with other questions raised in the application for leave to appeal without the formality of amending his application for leave to appeal or of petitioning this Court to remand the case for the purpose of allowing defendant to make a motion for a new trial on this particular ground.
A trial judge may not consider a delayed motion for a new trial made over eight months after the case has been appealed to this Court without first leave being granted to remand the case to the trial court for that purpose. Hughes v. Wayne Circuit Judge, 239 Mich. 110; Morris v. Radley, 306 Mich. 689, 698. Also, see annotation in 139 A. L. R. 340. The failure to indorse the names of res gestae witnesses on the information cannot be raised for the first time on a motion for a new trial. People v. Prescott, 268 Mich. 606.
Defendant had previously made a timely motion for a new trial based largely on affidavits of four additional persons stating facts to prove the truth of the alibi. The judge refused to grant a new trial. This was largely within his discretion. The testi mony would have been merely cumulative and, in view of the evidence at the trial, we shall not interfere with the trial judge’s ruling as there was no abuse of discretion.
Another claim of error is based upon the examination of defendant’s wife who was securing a divorce from him. She volunteered the information that she had divorced her husband and therefore had no reason to tell anything but the truth. Defendant’s attorney asked her to tell about the divorce, whereupon the attorney for the prosecution objected and the court ruled that the divorce ease should not be gone into, that he did not want to hear about it. Thereupon defendant’s attorney stated: “I want to go into her credibility.” Upon cross-examination, the witness testified that she divorced her husband around Christmas, 1945. The judge then stated that he would admit testimony in regard to the divorce inasmuch as the parties were cohabiting’ after the bill was filed and before a decree was granted. The attorney for the prosecution stated that defendant had opened the door for this testimony and defendant’s attorney said, “Go ahead, that is all right.” Evidently defendant’s attorney changed his mind and asked the court to instruct the jury that this testimony had nothing to do with the case. The court so instructed the jury, saying that the testimony only went to the credibility of the witness. Under these circumstances, we cannot see how the defendant can possibly complain, though in his brief he complains about the judge’s failure to charge as to this testimony. Defendant’s attorney stated at the conclusion of the charge to the jury that he felt the judge had covered the case very comprehensively therein and was satisfied with it.
Further error is claimed because a question arose as to whether defendant had possession and control over an automobile on the day in question. It seems that the car had been loaned to a soldier. It was first claimed that it had been returned Saturday evening, the day on which the crime was alleged to have been committed. This tended to show that defendant did not have the use of his car so that he could not have driven to the theater and back. Defendant’s son testified that although he told the policewoman that the car was returned on Friday night, he later found out that he was mistaken and that the car had not been returned until Saturday night. The policewoman called in rebuttal testified as to what had been said. She was not called to impeach the witness. The testimony was properly received. The last question as well as others raised have absolutely no merit and do not deserve discussion.
Judgment of conviction is affirmed.
Bitshnell, C. J., and Sharpe, Boyles, Reid, North, Dethmers, and Carr, JJ., concurred. | [
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Boyles, J.
The board of education of the city of Detroit filed a petition in the recorder’s court for said city, seeking to condemn certain described real property for public use by Wayne university. In the course of the hearing on this petition before a jury, with Judge Paul E. Krause of the recorder’s court presiding, testimony was adduced showing that Judge Krause was a member of the faculty of Wayne university. Thereupon counsel for Rose Getz, the owner of a contract interest in one of the six parcels involved in the proceeding, moved the court to declare a mistrial on the ground that Judge Krause was disqualified by interest from presiding at the hearing before the jury.' The court denied the motion, later denied a motion for a new trial based on the same ground, and Rose Getz appeals.
Judge Krause admitted that he had been a member of the faculty of Wayne university for at least 15 years. There was no claim of any ground for his disqualification except the foregoing fact. Judge Krause was not shown to be a stockholder, officer or trustee of Wayne university, or in any way connected with its management or control; and there was no showing that he had any pecuniary interest in said condemnation proceeding or that the outcome of said proceeding had any bearing on his personal gain or loss.
The statutory grounds on which a judge is disqualified on the basis of being a party or because of interest or prejudice are as follows:
“No judge of any court shall sit as such in any cause or proceeding in which he is a party, or in which he is interested, or in which he would be excluded from being a juror by reason of consanguinity or affinity to either of the parties.” 3 Comp. Laws 1929, § 13888, as amended by Act No. 37, Pub. Acts 1941 (Comp. Laws Supp. 1945, § 13888, Stat. Ann. and Stat. Ann. 1947 Cum. Supp. § 27.466).
The interest which will thus disqualify a judge must be such an interest in the subject matter that he will be directly affected through pecuniary or property gain or loss. In re Petition of Farber, 260 Mich. 652. We have held that the fact that a judge was receiving a salary from a municipality as such judge does not necessarily disqualify him from sitting in an action against said city. Prawdzik v. City of Grand Rapids, 313 Mich. 376 (165 A. L. R. 1165).
“The fact that a judge receives a portion of his salary from a county which is a defendant and cross-complainant in an action before him does not create such a personal interest as would disqualify him from presiding at the trial or from ruling' on a motion for new trial, where no matter of public interest or public policy which would work such a disqualification is shown.” Priddel v. Shankie (syllabus), 69 Cal. App. (2d) 319 (159 Pac.[2d] 438).
The mere fact that Judge Krause was a member of the faculty of Wayne university, without other showing, is too remote and indirect to disqualify him from acting as the presiding judge in said condemnation proceeding.
Appellant claims that the court erred in hearing and deciding her motion in the presence of the jury, over counsel’s objection. There is no showing that the jury was prejudiced thereby. In a condemnation proceeding the jury is the sole judge of the law and the facts and the presiding judge acts only in an advisory capacity. In re Widening of Bagley Avenue, 248 Mich. 1; In re Huron-Clinton Metropolitan Authority’s Petition as to Belleville Lake Park Project, 306 Mich. 373.
In view of our conclusion that the motion was without merit we also conclude that it was. within the discretion of the judge to permit the jury to remain during the hearing and decision on the motion.
Judgment affirmed and the case remanded.
Bushnell, C. J., and Sharpe, Reid, North, Dethmers, Butzel, and Carr, JJ., concurred. | [
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] |
Edward M. Sharpe, J.
Ida S. Dedrick for many years was a resident of Benton Harbor, Michigan, and died November 12, 1932. She was a widow of the age of 73 years. Plaintiff, who had roomed and boarded with the decedent for 12 years prior to her death, presented a claim to the probate court for labor-and services amounting to $365 a year or a total of $4,380, “less board owing not more than $600.” Prom a $1,000 award of the commissioners of claims, the cause was appealed to the circuit court and a jury returned a verdict for plaintiff of $1,500. The residuary legatee, Nora Beeney, and the administrator, Harry Laity, now appeal to this court.
Plaintiff, though not a relative of deceased, had lived in her home since about 1920 and had been considered by some of the neighbors as a member of the family. During the greater part of this time he was employed at various factories and on farms as a laborer. Most of the services he claims to have performed for decedent were done before and after working hours. These services consisted of such tasks as mowing the lawn, working in the garden, pruning vines and shrubs, beating rugs, building fires, making coffee, waiting on decedent when she was sick, and many other odd jobs about the house. For any permanent repairs or improvements to the house, outside contractors were called in, and nurses and doctors had been engaged on various occasions and paid in cash.
Several neighbors and friends of decedent testified that she had told them that she intended to see that plaintiff was paid for his services after her death and that she could not do without him. There was no testimony as to any agreed rate of compensation.
The defendants contend that plaintiff should be considered as a member of the family, subject to the presumption that in the. absence of an express contract his services were rendered gratuitously; that inasmuch as plaintiff had made no claim for services during the lifetime of decedent, his claim for services should be limited to six years before her death and that other services prior to the six-year period are outlawed by the statute of limitations (3 Comp. Laws 1929, § 13976); that there was no proof to submit to the jury as to the value of the services claimed to have been rendered by plaintiff.
While there is a presumption that services rendered by children to their parents are gratuitous, yet in the instant case the plaintiff came to live at decedent’s home as a boarder and remained throughput in that relationship.
Counsel for the estate insist that there was no sufficient proof that a contract was made to justify the submission to the jury.
Mrs. Lillian Niephaus, a neighbor, testified that she had known decedent a long time and had talked to her about plaintiff several times and that:
“In my conversations with her, she told me that what he had done for her she appreciated and that ■when she was done, he was to have what was left. He was to have what was left for his pay and if she died first, he was to get paid out of her estate, and if he died first, she was to have his insurance. ’ ’
Lottie Pauls, a neighbor who had known decedent four years, testified as to a conversation with decedent regarding plaintiff:
“Well, she told me, said anything happened to her she wanted the place to go to him and she said she didn’t know what she would have done without him and said he helped her out a good bit and he was good to her. ’ ’
Charles Hose, a neighbor who had known decedent 10 years, testified:
“Since the year of 1926 all that I could tell you is what she told me. She said Archie (referring to plaintiff) done the major part of her work and she felt she certainly owed him something and she would-see that he would get it sometime. ’ ’
This and other like evidence made the question of whether the services were rendered with expecta-. tion of pay an issue of fact for the jury. Counsel for the estate complain that the court erred in the following instruction to the jury:
“If the jury should find that the contract was, or agreement was that the deceased was to pay the claimant after her death out of her estate the reasonable value of these services, then the claimant would be entitled to recover the reasonable value of those sendees covering the entire period. If, however, the jury should find that the agreement was that the deceased should pay the reasonable value of those services without having it agreed or was to be paid at the death of the deceased, then in that event what the law knows as the statute of limita tions intervenes and the plaintiff could only recover for a period of six years immediately preceding the time of the death of the deceased.”
We think the instructions were correct. There was some evidence from which the jury might find that the services were not to be paid for until the death of the depedent and in such case the statute of limitations would not begin to run until such decease. However, in awarding their verdict, the jury may have considered only the six years immediately preceding the death of decedent, as the award was considerably less than the amount claimed.
An examination of the testimony of the witnesses produced by the plaintiff satisfies us that they were qualified to testify as to the value of the services. The weight of their testimony was for the jury and we find no error in the ruling oí the court upon this subject.
Other objections have been made by the counsel for the estate and we have considered them but we do not regard them as of sufficient importance to change the result.
Judgment affirmed. Costs to plaintiff.
Nelson Sharpe, O. J., and Potter, North, Pead, Wiest, Butzel, and Bushnell, JJ., concurred. | [
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Fead, J.
The city of Detroit is engaged upon a project to refund $360,000,000 of bonds. Some are original obligations of the city. Some were issued by other municipalities and assumed by the city on annexation of territory of issuing districts. Some were approved by popular vote. Some were issued by the legislative bodies of municipalities without vote of the people. The records of some have been wholly lost. The city of Detroit had recognized its obligation for them, has levied taxes for many years and made payments of principal and interest and provided sinking funds without protest or objection of taxpayers. In the refunding operation, however, approval of the validity of the bonds by counsel has been demanded and, because of the loss of records, the city desires the aid of a validation act of the legislature. To provide a test case, the city controller has formally refused to issue the refunding bonds and the members of the common council have petitioned for a writ of mandamus to compel him to issue them. His defense is that the validation law, Act No. 31, Pub. Acts 1934 (Ex. Sess.), was adopted in violation of the Constitution, article 5, § 22:
“No bill shall be passed at a special session of the legislature on any other subjects than those expressly stated in the governor’s proclamation or submitted by special message. ’ ’
March 15, 1934, the common council of the city of Detroit adopted a resolution assuming liability for all bonds above mentioned and providing for their inclusion in the refunding plan. On the same day a bill was introduced in the legislature, convened in special session, which was afterwards enacted as Act No. 31, Pub. Acts 1934 (Ex. Sess.). The act reads:
“An act to provide for the ratification, validation and confirmation of certain bonds heretofore issued by any city, or by any school district or territory which has become annexed to any city, acknowledgment of which bonded indebtedness has heretofore been or shall hereafter be made by such city; and authorizing the refunding of such bonds.
“The People of the State of Michigan enact:
1‘ Section 1. Whenever the legislative body of any city shall have adopted prior to April fifteen, nineteen hundred thirty-four, a resolution by a majority vote of its members-elect, acknowledging as valid indebtedness of said city any outstanding bonds theretofore issued by said city, and any outstanding bonds of any township, city, village or school district, the payment of all or a portion of which has been assumed through the annexation of additional territory to said city, all such bonds are hereby ratified, validated and confirmed as binding obligations of said city. All said outstanding bonds of the city, and all said outstanding annexed district bonds, or the portion so assumed by such city, may be refunded from time to time under the provisions of the general laws by the issuance of refunding bonds of said city, and no irregularity or other infirmity in or absence of the proceedings authorizing such outstanding bonds shall ever be set up as a defense to the payment of said refunding bonds or the interest thereon. The legislative or governing body of said city and of the existing unannexed township, village, city or school district, may enter into any contract relative to the payment of the balance of said bonds and interest as shall not be prejudicial to the rights of the bondholders. Any bonds so assumed on any territory not so annexed shall not be construed to be included in the bond limitation of the city assuming same in cases where the school district, township, village or city primarily liable on said bonds shall agree to reimburse the obligating city. ’ ’
The gwernor called the session “for the consideration of such matters as may be submitted by special message.”
' Upon the legislature convening, the governor delivered a message beginning:
“You have been called in special session to reconsider several important matters which have been before you in your general session, or in your special session, or in both of these sessions. In addition, legislation has been requested on some matters which either have not been before you heretofore, or which are indicated as a result of the administration of laws previously passed by you.”
Petitioners contend this language submitted all subjects considered at the general session. But by its own words it was confined to “several important matters,” which needed further designation before they could have been deemed to be submitted to the legislature.
The message further stated:
“Upon the recommendation of legislative council, I am also submitting to you for consideration and action, the following bills: * * #
“4. A bill providing’ for the validation of bonds issued by a municipality under sufficient popular vote regardless of technical requirements.”
Apparently the bill so referred to by the governor was one introduced to validate certain bonds issued by cities to acquire light and power plants and which was enacted as Act No. 6, Pub. Acts 1934 (Ex. Sess.).
The primary problem is to determine the “subject” submitted by the special message. A multitude of cases illustrating the scope and limitation of subjects under similar constitutional provisions are cited in 59 C. J. p. 530, note, but none is in direct point. The principles involved are established with practical unanimity and are well stated in the following excerpts:
“This constitutional provision contemplates that there shall first exist in the executive mind a definite conception of the public emergency which demands an extraordinary session. His mental attitude or intention is expressed in his proclamation, the purpose of which is to inform the members of the legislature of subjects for legislation, and to advise the public generally that objections may be presented if desired. It is not only a guide or chart with respect to which the legislature may act, but also a check restricting its actions so that rights may not be affected without notice. The proclamation may contain many or few subjects according to the governor’s conception of the public néed. While the subjects may be stated broadly or in general terms, the special business, as related to the general subject on which legislation is desired, should be designated by imposing qualifying matter to reduce or restrict. Although the subjects should be sufficient to evoke intelligent and responsive action from the legislature, it is not necessary that they include all the methods of accomplishment. The guiding principle in sustaining legislation of a special session is that it be germane to, or within, the apparent scope of the subjects which have been designated as proper fields for legislation. In construing a call the words of any portion thereof must be interpreted not only as commonly and universally understood, but also as applicable to the subject intended to be affected by legislation.
“While the legislature must confine itself to the matters submitted, it need not follow the views of the governor or legislate in any particular way. Within the special business or designated subjects submitted, the legislature cannot be restricted or dictated to by the governor. It is á free agent, and the governor, under the guise of definition, cannot direct or control its action. Nor is it confined to any one subject but may chose (choose) from parts of different subjects, provided a new subject, unrelated to those stated, is not acted upon.” Commonwealth, ex rel. Schnader, v. Liveright, Secretary of Welfare, 308 Pa. 35 (161 Atl. 697).
“It is agreed, so far as any of the cases speak on the matter, and this view is undoubtedly sound, that the presumption is always in favor of the constitutionality of an act, and that any piece of legislation so under consideration should be held within the call if it can be done by any reasonable construction.” State, ex rel. National Conservation Exposition Co., v. Woolen, 128 Tenn. 456, 487 (161 S. W. 1006, Ann. Cas. 1915C, 465).
Whether a statute enacted at a special session of the legislature falls within the subjects submitted by the governor is a judicial question. Sims v. Weldon, 165 Ark. 13 (263 S. W. 42); Jones v. State, 154 Ark. 288 (242 S. W. 377).
It is immaterial that the governor, by formal signature, has approved the bill after its enactment by the legislature. Wells v. Railway Co., 110 Mo. 286 (19 S. W. 530, 15 L. R. A. 847); Manor Casino v. State (Tex. Civ. App.), 34 S. W. 769; Jones v. State, 151 Ga. 502 (107 S. E. 765).
We may disregard the reference in the governor’s message to the bill prepared by the legislative council because the governor cannot restrict the legislature to consideration of a particular bill. Within the subject submitted, the legislature has freedom of action.
The scope of the message is plain. Stretched to the breaking point in an attempt to sustain the law, it permitted the legislature to provide for the validation of all bonds issued upon existing basic legal authority, i. e., upon approval of the required number of voters when popular vote was required by statute and upon action of the legislative body of the municipality when popular vote was not necessary. Obviously an essential of validation under the message would be a showing of such basic authority.
Act No. 31 goes further. It permits validation of bonds where issued without legal power, i. e., without sufficient popular vote when such vote was required and without authority of law of the issuing body.
To sustain Act No. 31, the message would need to be construed as submitting the subject of validation of municipal bonds without limit or condition as to the character of their imperfections, whether mere irregularity in the issuance or total want of authority to issue. It would cover bonds issued without sufficient popular vote in direct conflict with the express words of the message.
The “subject” submitted in the message was not wholesale validation of bonds. It covered only kinds of bonds which form a logical and natural class for validation, separate and distinct from the other class also covered by Act No. 31. While the governor, within the range of a “subject” may not restrict the legislature, he has the authority to limit the subject according to his conception of the need for legislation. Thus, a proposal for action upon a certain tax would not throw open the whole matter of taxation for legislation or a recommendation as to a crime would not include the entire realm of criminal law.
We hold Act No. 31 unconstitutional.
The immediate effect of this ruling upon the city of Detroit may be temporarily disturbing but the record shows that a refunding plan has been under negotiation for nearly two years, one regular and three special sessions of the legislature have intervened, a contract for refunding was executed a year ago, and another session of the legislature will be held in about six months. The situation does not indicate such dire need nor diligence as would induce extension of the governor’s message beyond its plain terms and constitutional effect.
Writ denied, .no costs.
Nelson Sharpe, C. J., and Potter, North, Wiest, Butzel, Btjshnell, and Edward M. Sharpe, JJ., concurred. | [
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Fead, J.
Plaintiff had judgment for $7,000 in an action for negligent malpractice.
Defendant, a physician, gave plaintiff a diathermic treatment for pain in the back. The treatment was administered with an electrical machine, designed to produce deep heat through lead plates on the back and abdomen. Patients react differently to the treatment. Some are sensitive to heat and are easily burned. Others can stand more. Some complain of excessive heat when it is neither excessive nor dangerous. Others are stoical and may not complain when they should. The machine may be regulated at points ranging from absolute immunity from burning to probability or assurance of harm. Because of the difference in people a patient may be burned although the machine is properly operated. Defendant did not testify to the reading at which he set the machine, plaintiff could not show it, and the issue of negligence was upon the duty of the doctor when the patient complains.
Plaintiff had a burn on his back. Defendant and his office nurse testified that plaintiff did not complain of heat nor get burned in the treatment. Plaintiff said:
“One plate was put on the abdomen and one on my back. They were put on with some kind of gauze to hold them there around my body by Dr. Wright. After the plates were on, Dr. Wright put on the switch of some kind, then done something on the machine and said: ‘Mr. Sima has got a severe case of neuritis, or something, and we’ve got to give it to him pretty strong.’ He adjusted the machine some way, I don’t know what he done and he said to the nurse: ‘Now leave it on 15 minutes and we got to give it to him pretty strong. He has got a severe case of arthritis.’ The first thing I noticed in about a minute .or two I felt heat and it was uncomfortable and I said to the nurse, she was in there alone with me: ‘The thing is getting too hot.’ And she looked at the machine and she said: ‘Oh, no, that didn’t get too hot.’ And I waited a little longer and perspiration started to run out of my head and face and I said: ‘It’s getting too hot. Turn it off.’ And she said: ‘No, it isn’t.’ And I said: ‘Call the doctor.’ And she looked at the machine again and she said: ‘No, that’s just imagination.’ She opened the door and looked in bnt the doctor was busy and pretty soon the doctor came in and I said: ‘You are burning me. Take it off.’ And he said: ‘It’s all right.’ And I said: ‘You are burning me. I can smell it.’ And he looked at it and he took the plates off and I felt an awful pain as though flesh was coming off. It burned so bad I could smell it. ’ ’
Defendant was the first witness. He was called by plaintiff as an adverse witness and was immediately met with a prejudicial statement in the form of a question to the effect that, because he had not been present at the opening of trial nor until subpoenaed by plaintiff, the case did not amount to much to him. On the court’s sustaining the objection, counsel repeated the assertion. The incident inclines toward reversal.
Defendant complains of prejudicial argument to the jury but because it was not called to the attention of the court at the time it is not here for review. People v. Mulvaney, 171 Mich. 272, 277; People v. Allan, 263 Mich. 182, 206.
In spite of frequent warning by the court that the practice was hazardous, plaintiff’s counsel tried the case in reverse order. They presented their medical witnesses and asked hypothetical questions before plaintiff testified and were permitted to do so only on their assurance that the basic facts would be shown later. While the order of proof is largely in the discretion of the court, the practice employed in this case is not to be commended because it prevents opposing counsel from making specific objections to hypothetical questions and hinders the court in keeping the testimony to the issue.
Included in a hypothetical question was the element that “the flesh stuck to the plates.” Plaintiff did not so testify. The prejudicial nature of such a gruesome claim is obvious.
The controlling hypothetical question to ascertain the duty of the physician under the local practice was grounded on the element that the patient “repeatedly” complained of being “burned.” Plaintiff did not precisely so state. The question was technically objectionable, as an inquiry into the proper medical practice, and, if the case had been presented in an orderly manner, it would have been excluded. The answer was the doctor should shut off the current and investigate by removing the plates. However, the error does not justify reversal without new trial. Under the testimony, the case is not exclusively one of medical knowledge. Laymen generally are acquainted with the proclivity of an electrical apparatus to burn. Defendant did not disclose the point at which he set the machine nor other circumstances to indicate an impossibility or improbability of burning, so that the complaints were likely to be psychological rather than physical and the procedure a matter for doctors alone to determine. The conclusion of repeated complaints embraced in the question was not so violent a departure from plaintiff’s testimony as to be wholly unfounded. And, without circumstances indicating that the practice was exclusively a matter of medical knowledge, the jury could reasonably find that the answer merely stated the obvious duty of anyone operating such a device.
Testimony of a doctor of osteopathy was improperly received as expert testimony of local medical practice without a showing that he knew the local practice.
The court submitted to the jury as elements of damage pecuniary loss, loss of time and impairment or loss of earning capacity. While there was testi mony that for a time plaintiff was incapacitated from conducting his business as a tailor, there was no evidence of the worth of his services nor of pecuniary loss. Plaintiff contends the error may be corrected by remittitur of $1,000, the amount claimed in the bill of particulars for such loss. The record does not show that the amount so claimed was called to the attention of the jury, we have no means of knowing the sum the jury allowed on such damage and the amount of the verdict indicates that a considerable sum must have been allowed for such element of loss.
Reversed, with costs and new trial.
Nelson Sharpe, C. J., and Potter, North, Wiest, Bhtzel, Bhshnell, and Edward M. Sharpe, JJ., concurred. | [
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Boyles, J.
This is an automobile accident case tried by jury, resulting in a verdict of $10,000 damages for death of plaintiff's decedent. The principal contention upon which the defendant-appellant relies for reversal is that the verdict was against the great weight of the evidence in that the evidence failed to establish that it was the defendant’s automobile which was involved in the accident. The plaintiff relied on a multitude of facts and circumstances to identify the defendant’s automobile as the one involved, and the defendant relies on a claim that direct testimony proves the contrary. The locus of the case and the circumstances of the accident can best be indicated by the map included herewith.
Some of.the facts are undisputed. Plaintiff’s decedent, Dorothy Zolton, was 21 years of ago at the time of the accident, married, with a son 15 months old, both in good health. Her husband was in the armed forces overseas, and she had been employed at a forge plant, during part of the time since marriage. About 9:30 o’clock on the night of January 8, 1944, she started out from the Hilborn house on Paines road with two girl companions, Ruth and Phyllis Hilborn, Avalking north on the west side of Paines road, west of the center line and facing traffic, to go to the village of Shields a short distance north. There was no sidewalk. Dorothy Zolton was nearest the center line, Ruth walked beside her close enough to touch her, and Phyllis a few steps behind them. There was plenty of room for northbound traffic to pass them on the east side of the 18-foot pavement. Ruth noticed the reflection of automobile lights approaching them from the south, looked around and saw an automobile coming behind them. No horn was sounded and she did not see the automobile again until after it struck Dorothy Zolton, who was hit by the left front of the automobile, thrown into the air and instantly killed. The automobile swerved back into the east lane of the pavement and did not stop or slow down but went on north and turned east at the stop light, onto Gratiot road. The accident occurred near the Weidman home, about one-fifth mile south of the intersection of Paines road and Gratiot road at the stop light. Ruth Hilborn saw the car as it went on, and testified that it looked like a black or real dark car, with two tail lights at the back, a license plate in the middle and a light above it. Ruth Hilborn, at that time 17 years of age, did not drive an automobile, could not tell the makes of cars, testified it looked like an old 1935 Buick, like a flat (perpendicular) trunk at the back, and thought it had four doors. When the accident was re-enacted a short time later she said the defendant’s car was not the one, but she also said she was not sure and that at night they all looked the same.
One Richard Rouse runs a garage and gasoline, pumps on Gratiot road about a block north and one’ block east of the place where the accident occurred. He knew the defendant and the defendant’s car, and testified it was a 1940 Oldsmobile maroon coupe; that at 9:45 on the night in question a 1940 Oldsmobile maroon coupe stopped in front of his pumps.
He testified:
Mr. Rouse, do you know whose ear that was that stopped in front of your house that night? * * *
“A. In my own mind, I think it was Mr. Rotter’s. I am sure.”
He testified that the right headlight was burning but the left one was not. Mr. Rouse was in his house and did not go out. He saw the car “back up to clear the pumps and start away.” The car went east and turned south on Adams road, toward defendant’s home. The time would approximately .correspond to the length of time it would take to drive north from the scene of the accident, turn east on Gratiot road at the stop light and arrive at the Rouse garage. Three days later a county detective picked up a piece of broken radiator grill off the shoulder of Paines road about 41 feet north of the place where plaintiff’s decedent’s body was thrown. Defendant admits it came from his automobile. Two wool fibers were found, one caught underneath the setscrew at the top of the left front parking light and the other wedged underneath the chromium trim at the top of the left headlight of defendant’s automobile, which were of the same color and texture as the fibers of the coat plaintiff’s decedent was wearing when struck. Within a few minutes after the accident on Saturday night someone from the sheriff’s department picked up pieces of glass from seal beam headlights near the place where Dorothy Zo]ton was struck. The next Monday morning the defendant had both broken seal beam headlights replaced at the private garage of his employer. On Ihe same day, defendant had a large dent on the hood of his car knocked back into place, at another garage. On Tuesday, the defendant went to a garage and had his grill, fender and bumper pushed back into position with a hydraulic jack, and placed an order for a new grill and fender. On the same day, defendant also had his radiator repaired. On Wednesday, officers' found defendant’s automobile parked on the property of defendant’s employer in such a way that the front could not be seen from the street, with a broken grill and showing fresh damage on the left front. More length than necessary to decision would be required to detail other facts from which inferences might be drawn that the defendant for several days after the accident was attempting to conceal the fact that his car had been involved in an accident.
The defendant admits that his car was damaged on the left front sometime on the Saturday on which the accident occurred but claims this was due to a truck or trailer backing into it on that Saturday afternoon, at the parking lot of the freight company where he worked. On Saturday, January 8th, about 6:00 p.m., the defendant and his wife went to McCarthy’s tavern at the corner of Paines road and Gratiot' road, and remained there until about 9 o’clock. There was testimony that when he left he let them know there that he was going home “about the children,” but would be back. This, he denies. He and his wife returned to their home, which is south of the scene of the accident. He testified that he did not leave home again that evening, but admitted that at about 9:30 he went outside his home, alone for about 15 minutes, but testified this was to feed his chickens and gather the eggs. He admitted that no one else ever drove his car, except himself. The red fibers found on the parking light and underneath the trim of the headlight of defendant’s car could have come from a red snowsuit his daughter wore. There were discrepancies in the identifying of defendant’s car by plaintiff’s witness, Ruth Hilborn. The light at the license plate was below, not over, the plate. It was not a four-door automobile. Ruth did not identify the ear positively as the defendant’s car, although she testified correctly it was a dark, shiny car, had the two tail lights', and a license plate in the center, at the rear. There were pieces of glass' from headlights, and other pieces of broken grill from defendant’s car, picked up at other places along Paines road. The damage to defendant’s car might have been caused at his employer’s lot, as he testified. However, there, was no positive testimony to that effect. The defendant testified that his wife noticed the damage to his car, Saturday afternoon. She testified that she noticed nothing much wrong with it other, than-old small dents, until Monday.
The question: here is whether the verdict is'against' the great weight of the evidence. Defendant claims that positive testimony must prevail over' circumstantial evidence. Such is not necessarily the law.' Cases cited by the defendant from other: jurisdictions may readily be distinguished as to facts and circumstances of each case. ' The correct rule of law in this State is stated in Ricketts v. Froehlich, 218 Mich. 459, 461, as follows:
“Circumstantial evidence in support of or .against a proposition is equally competent with direct. As against each other their relative convincing power is for the jury. The trial court apparently assumed that defendant’s direct denial must be taken as true against all circumstantial evidence' introduced.
“ ‘To hold that in all cases, when a witness swears to a certain fact the court must instruct the jury to accept that statement as .proven, would be to establish a dangerous rule. Witnesses sometimes are mistaken and sometimes unfortunately are wilfully mendacious. The administration of justice does not require the establishment of a rule which compels the jury to accept as absolute verity every uncontradicted statement a witness may make.’ • Yonkus v. McKay, 186 Mich. 203, 210 (Ann. Cas. 1917E, 458); citing Woodin v. Durfee, 46 Mich. 424."
To the same effect, see Cuttle v. Concordia Mutual Fire Ins. Co., 295 Mich. 514; Buttermore v. Faleris, 304 Mich. 294; Wingett v. Moore, 308 Mich. 158; Anderson v. Kearly, 312 Mich. 566.
The trial court submitted to the jury as-.a. ques-i tion of fact, whether the defendant’s automobile wa,s, the one involved in the accident. The credibility .of • the witnesses was for the jury to determine. ..The; record indicates that there was a doubt whether the ¡ defendant’s automobile was the one involved in the.; accident. However, we cannot say that the .verdict, was against the great weight of the evidence. - ,
■ Appellant claims reversible error in admitting tes- > timony of the finding of a broken piece of the grill.i three days after the accident, 41 .feet north of the, scene of the accident. Defendant’s automobile had-, passed this point ■ immediately after plaintiff’s de-) cedent was struck..-. Appellant relies on Billingsley v. Gulick, 252 Mich. 235, in which the judgment was-s,et aside and a new trial granted for other reversible! eirrors. -..The facts plainly distinguish that case from;the case at bar. There the testimony was received* to:show the location of an accident. Here the broken piece of grill was admitted in evidence to show the identity ..of ;;the automobile which, was involved' in the accident. „ The probative value of such .testimony; wa.s for the jury. Pearce v. Rodell, 283 Mich. 19; Wallace v. Kramer, 296 Mich. 680.
Appellant claims the damages were excessive. The expectancy of life of plaintiff’s decedent was 41.53 years, and that of decedent’s husband 40.85 years. She had a minor son 15 months of age, was in good health and capable of earning. The testimony shows she was a good wife, housekeeper and cook, was pleasant and gave her son good care. The amount of damages was within the range of the proofs in the case. Appellant relies on Gembolis v. Rydeski, 258 Mich. 521, bnt in that case a verdict for $10,000 for death was held not excessive. Although, under the death act, Act No. 38, Pub. Acts 1848 (3 Comp. Laws 1929, § 14061 et seq. [Stat. Ann. § 27.711 et seq.]), as last amended by Act No. 297, Pub. Acts 1939 (Comp. Laws Supp. 1940, § 14061 et seq., Stat. Ann. 1947 Cum. Supp. § 27.771 et seq.), recovery is limited to those persons entitled to support from decedent, recovery is not limited to the amount of support actually received. The amended act is at least as broad in protecting recovery on behalf of minor children as the original act. Bricker v. Green, 313 Mich. 218, 226, 227 (163 A. L. R. 697). And in spite of the rule just stated, a husband is still entitled to recover for loss of his wife’s services, apart from any earning capacity which she may or may not have had. In re Olney’s Estate, 309 Mich. 65, 84; Grimes v. King, 311 Mich. 399, 414, 415. In the latter case $8,535.33 was awarded for death of a 42-year-old childless wife. Damages were given both for loss of services and for loss of earning capacity. The verdict in the instant case was not excessive.
The judgment is affirmed, with costs to appellee.
Bushnell, C. J., and Sharpe, Reid, North, Dethmers, Butzel, and Caer, JJ., concurred. | [
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Dethmers, J.
Intervenors appeal from an order denying their motion to dismiss, contending that the dissolution of building and loan associations is permissible only in the manner provided in section 26 of the building and loan association act (Act No. 50, § 26, Pub. Acts 1887, as added by Act No. 17, Pub. Acts 1901 [3 Comp. Laws 1929, § 12159], and amended by Act No. 334, Pub. Acts 1937 [Comp. Laws Supp. 1940, § 12159, Stat. Ann. 1943 Rev. § 23.568]), to the exclusion of proceedings brought, as here, under the provisions of chapter 40, § 1, of the judicature act of 1915 (3 Comp. Laws 1929, § 15310 [Stat. Ann. § 27.2354]), governing the dissolution of corporations generally, which reads as follows:
“Whenever the directors, trustees or other officers having the management of the concerns of any corporation, or the majority of them, shall discover that the stock, property and effects of such corporation have been so far reduced by losses or otherwise, that it will not be able to pay all just demands to which it may be liable, or to afford a reasonable security to those who may deal with such corporation, or whenever such directors, trustees or officers, or a majority of them, shall, for any reason, deem it beneficial to the stockholders that such corporation should be dissolved, they may apply by petition to the court of chancery for the county wherein said corporation is located for a decree dissolving such corporation, pursuant to the provisions of this chapter: Provided, That the provisions of this chapter shall not extend to any incorporated library or lyceum society; to any religious corporation; to any incorporated academy or select school not organized for pecuniary profit; nor to the proprietors of any burying ground incorporated under the laws of this State.”
Section 65 of the general corporation act (Act No. 327, Pub. Acts 1931 [Comp. Laws Supp. 1940, § 10135-65, Stat. Ann. § 21.65]) reads as follows:
“A corporation may be wound up or dissolved either voluntarily or involuntarily. If the proceedings are voluntary they may be conducted either out of court or subject to the supervision of the court. If the proceedings are involuntary they must be subject to the supervision of the court. If the corporation shall be wound up or dissolved subject to the supervision of the court the proceedings shall be under the judicature act of nineteen hundred fifteen; except that any corporation, whose assets had been wholly disposed of under court order in receivership or bankruptcy proceedings may be summarily dissolved by order of the court having jurisdiction of such proceedings: a copy of such order shall be filed by the clerk of such court with the secretary of State.”
Section 3 of the same act, as amended by Act No. 51, Pub. Acts 1937 (Comp. Laws Supp. 1940, § 10135-3, Stat. Ann. 1947 Cum. Supp. § 21.3), reads as follows:
“One or more persons, natural or corporate, may incorporate under this act for the purpose of carrying on any lawful business except those desiring to incorporate the following:
“Banking corporations, industrial banks, insurance corporations, fraternal benefit societies, trust, deposit and security companies, building and loan associations, summer resort associations, railroad, bridge and tunnel companies, union depot companies, train railway companies, street railway companies, brine pipe line companies, telegraph companies, telephone companies, safety and collateral deposit companies, canal, river and harbor improvement companies, cemetery, burial and cremation associations, agricultural and horticultural fair societies and water power and water supplying companies; the provisions of this act shall be applicable to such corporations, except insurance, railroad, bridge, tunnel companies and union depot companies, unless otherwise provided in, or inconsistent with, the act under which a particular corporation is or shall have been formed
Section 26 of the building and loan association act reads as follows:
“At the annual meeting, or at any meeting called for that purpose, any building and loan association of this State may, by the votes of shareholders owning two-thirds of the shares in force, resolve to liquidate and dissolve the corporation. In order to facilitate such dissolution, the board of directors may, if they deem it advisable, sell and transfer the mortgage securities and other property of such association to another corporation, person or persons, subject, however, to the vested and accrued rights of the mortgagors: Provided, That before said resolution shall have effect, a copy thereof, certified by the president and secretary of such association, together with an itemized statement of its assets and liabilities, sworn to by a majority of the board of directors, shall be filed with the secretary of State. After filing a copy of the resolution as aforesaid, it shall be unlawful for such association to issue stock or make any loans, but all of its income and receipts, in excess of the actual expenses of management, shall be applied to the discharge of its liabilities: Provided further, That any building and loan association operating under this section shall be subject to the same examinations, and shall be required to make the same reports to the secretary of State as is herein provided for solvent and going building and loan associations. The secretary of State may take possession of the business and property of any building and loan association which is in voluntary liquidation and proceed to liquidate its affairs as provided in this act, if, at any time, it shall appear to the secretary of State that the affairs of such building and loan association are not being administered or liquidated to the best interest of the creditors and shareholders.”
In contending for the exclusiveness of the dissolution procedure provided in the building and loan association act, intervenors rely on Paine v. Sauls bury, 200 Mich. 58; Stewart v. Algonac Savings Bank, 263 Mich. 272; Russell v. Peoples Wayne County Bank of Dearborn, 275 Mich. 415, and State, ex rel. Attorney General, v. Court of Common Pleas of Franklin County, 124 Ohio St. 269 (178 N. E. 258, 78 A. L. R. 1079).
The Paine Case did not involve a building and loan association. We there held that a petition for the dissolution of a corporation under the judicature act was not a good-faith application and ought to be denied when the facts disclosed not only that the corporation was solvent, but that the proceedings were brought solely to enable a majority of the stockholders to acquire the interests not otherwise available to them of the minority stockholders. The case does not support intervenors’ theory that the voluntary dissolution of a solvent corporation may be had only under section 67 of the general corporation act and not, as provided in section 65 of that act, under chapter 40, § 1, of the judicature act.
The Stewart Case involved a bank receivership. We held that an act permitting appointment of a bank receiver by a circuit court on the petition of any creditor was superseded and, in that respect, repealed by implication by a subsequent act providing for such appointment only upon the application of the attorney general in behalf of the State banking commissioner. The Russell Case, involving also a bank receivership, held to the same effect, giving as the sole reason therefor the holding in the Stewart Case. The situation before us is not comparable inasmuch as the dissolution provision of the building and loan association act was enacted in 1901, before, not after, section 65 of the general corporation act of 1931, permitting corporate dissolution under the judicature act, and before the clause of section 3 of said act was added by Act No. 194, Pub. Acts 1935, and re-enacted by Act. No. 51, Pub. Acts 1937, making the provisions of the general corporation-act applicable to building and loan associations unless inconsistent with the provisions of the act under which they were formed. The nominal re-enactment in Act No. 334, Pub. Acts 1937, of the provisions of the 1901 act cannot operate as a repeal by implication, to that extent, of the pertinent provisions of the general corporation act. Gordon v. People, 44 Mich. 485; Curbay v. Bellemer, 70 Mich. 106.
In the Stewart Case this Court said:
“The act of 1929 expressed the intention of the legislature to repeal ‘acts and parts of acts inconsistent with the provisions of this act,’ and established rules and regulations special to banks and banking, under supervision of the banking commissioner, inclusive of closing and administering the affairs of insolvent banks through court action invoked and participated in by public officers. Clearly the legislature, having singled out the subjects of banks and banking, and having legislated on the subject as a comprehensive whole, intended the revision and codification to supersede former laws on the subject. See People v. Marxhausen, 204 Mich. 559 (3 A. L. R. 1505).”
In the same vein the supreme court of Ohio, in the case of State, ex rel. Attorney General, v. Court of Common Pleas of Franklin County, supra, said:
“The statutes to which attention has been directed provide the specific and adequate remedy which serves to protect, conserve and secure an equitable distribution of the assets of such company to those entitled thereto. The adequacy of the remedy provided to protect and preserve the interests of all concerned argues convincingly for its exclusiveness.”
The dissolution procedure set forth in the building and loan association act provides only for a vote for dissolution by shareholders owning two-thirds of the shares in force, after which the directors are left to complete liquidation and dissolution without guideposts for their direction or safeguards for the protection of creditors or shareholders other than that the secretary of State, if it shall appear to him that the liquidation is not being conducted to their best interests, may proceed to liquidate the corporation’s affairs in a manner not specified by the statute. The procedure is not so comprehensive, specific, detailed or adequate as to suggest a legislative intent to make it exclusive, debarring receivership under court supervision as contemplated by the general corporation act and the judicature act.
It is to be noted that in both the Stewart Case and the Ohio case it was held that the financial institutions involved could not be thrown into receivership and dissolution at the mere instance of a single depositor, but that, under the governing statutes, such proceedings could be instituted only on petition of the proper State officer. The Michigan building and loan association act contains no such provision. In both cases the proceedings contemplated by the statutes, which the courts held exclusive in the field, were court receiverships and dissolutions. Neither case is authority for the proposition, contended for by intervenors, that the legislature, when it provided for the sketchy dissolution procedure, without assistance from the courts, set forth in the building and loan association act, intended thereby to exclude proceedings for the dissolution of building and loan associations from the protective supervision of the courts.
Although section 3 of the general corporation act prohibits the incorporation thereunder of certain types of corporations, including building and loan associations, it nonetheless specifically provides that the other provisions of that act are applicable to such corporations unless inconsistent with the act under which such corporations are formed. "We dis cern no inconsistency between the provision of the corporation act permitting dissolution under the judicature act and the provision for dissolution contained in the building and loan association act. Read together they afford alternative procedures in like fashion as has been provided for corporations generally by the provisions of section 65 and section 67 of the general corporation act. In re Dissolution of Toynton-Brown Co., 308 Mich. 727. It will be observed, further, that building and loan associations are not included in either the exceptions listed in chapter 40, § 1, of the judicature act, relating to dissolution of corporations, or the exceptions listed at the conclusion of section 3 of the general corporation act so as to remove them from the provisions of both acts appertaining to dissolutions.
■ The order of the trial court is affirmed, without costs, a matter of public interest being involved.
Btjshnell, C. J., and Sharpe, Boyles, Reid, North, Butzel, and Carr, JJ., concurred. | [
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Voelker, J.
Plaintiff filed his bill of complaint in the circuit court for St. Clair county seeking to attack the milk ordinance of the city of Port Huron on various constitutional and other grounds, alleging that the ordinance discriminated in favor of local milk distributors against those from the outside"; was-an unlawful exercise of police power; and in effect sought illegally to stifle outside competition. In his bill the plaintiff described himself as “a distributor of Twin Pines Farm Dairy, a Michigan corporation.”' He sought to have the ordinance declared invalid and its enforcement enjoined.
Defendants appeared and filed a motion to dismiss the bill of complaint on several grounds, the finally-amended version including the following:
“3. That the issues raised by the plaintiff’s bill of complaint have been adjudicated upon their merits, in the matter of Ray R. Kaul, Albert G-. Florin, John W. Pollard, Robert Biddulph, Pat Pollard and Twin Pines Farm Dairy, a Michigan corporation, plaintiffs, versus city of Port Huron, a Michigan municipal corporation, defendant, chancery liber 34, page 7,. the records of this court, and that the plaintiff is bound thereby under the doctrine of res judicata.
“4. That said matter, of Kaul, et al. versus city of Port Huron has established the law of the case.
“5. That the doctrine of stare decisis applies by reason of Kaul, et al. versus city of Port Huron.”
Plaintiff answered the motion to dismiss, taking issue with and generally denying that the prior litigation barred his pending action for any of the reasons advanced by defendants or for any other reasons. After hearing below, the chancellor granted the de fendants’ motion to dismiss on the general grounds above stated in the amended motion and plaintiff has appealed.
The scant record before us discloses that the present plaintiff and appellant is a stockholder in Twin Pines Farm Dairy. It also appears undisputed that one must be a stockholder in that corporation in order to be a milk distributor for the corporation. Despite the fact that the present appellant pleaded and argued below and again argues here that the pri- or litigation was not controlling of his action, he has not seen fit to include in his appendix filed here any of the pleadings or the final decree in the earlier case, but has instead left that chore up to the appellees in their appendix.
No question seems to have been raised either here or below as to the admissibility of the decree in the former case, plaintiff having joined issue on the subject, and in any event we think that a circuit judge may take judicial notice of the files and records of the court in which he sits.
The. omitted material finally included by appellees in their appendix discloses that in 1954 one Kaul and 4 other individual stockholders in and distributors for Twin Pines Farm Dairy joined with that corporation in filing a bill attacking the same ordinance on substantially the same grounds raised by the present plaintiff. The present plaintiff was not named as a party to those proceedings nor does it appear that he in any way actively participated therein or that the earlier action purported to be a class action. It also does not appear whether he was then a stockholder. The record before ns further discloses that on March 1,1955, a decree was entered by the then Circuit Judge Eugene F. Black in the Kaul case as follows:
“This cause having duly come on to he heard upon the pleadings and proofs taken therein, and the ordinance in question having been amended to remove objections as raised by the amended bill of complaint, and the court being fully advised in the premises;
“Now, therefore, on due consideration thereof, it is ordered, adjudged and decreed, and the court doth hereby order, adjudge and decree, that the amendment duly adopted February 7, 1955, to Milk Ordinance No 288, which ordinance was duly adopted March 24,1952, by the city commission of the defendant municipality, eliminates all constitutional and justiciable issues presented in the bill of complaint; that said ordinance as amended offends no constitutional provision as alleged in said bill; that said ordinance as amended constitutes due and reasonable exercise of the police power of the defendant municipality ; that said ordinance as amended is reasonably designed to protect public health, safety and welfare, and that said bill'of complaint in consequence thereof ■should be and the same is hereby dismissed with prejudice, but without costs.”
The amended ordinance referred to in the above •decree is precisely the same ordinance sought to be attacked in the bill filed by the present plaintiff on September 9, 1957. No appeal was taken from the ■decree entered in the Kaul case.
At the outset we should make it clear that we do not •consider that the validity or invalidity of either the Port Huron milk ordinance or the quoted decree are properly before us on this appeal. Our sole question is much narrower: whether the circuit judge erred in dismissing the present bill of complaint under tbe ■circumstances above outlined. Appellant insists that he erred; appellees equally insist he did not.
It is a general rule of law (although, surprisingly •enough, the precise question seems not to have pre-viously been before this Court) that the stockholders «of a corporation may rely on and are bound by the final judgments, orders and decrees for or against the corporation, and this is usually true regardless of whether or not the stockholder was a party to or active participant in the original litigation.
Thus in 50 CJS, Judgment, § 794, p 331, it is said:
“As a general rule, a stockholder is so in privity with, and represented by, the corporation that he is. bound by a judgment for or against the corporation insofar as it deals with corporate rights and liabih ities and affects the stockholders as a body, where it was not obtained by fraud or collusion; but he is not bound with respect to individual rights and liabilities or rights and liabilities which are not common to all the stockholders.”
See, also, 30A Am Jur, Judgment, § 434, p 485 and. 129 ALR 1041. That prior Michigan cases are not opposed to this general theory, see our holdings and reasoning in Collins v. Welch, 141 Mich 676, and Mutual Fire Ins. Co. v. Phoenix Furniture Co., 108 Mich 170 (34 LRA 694, 62 Am St Rep 693).
Michigan has also long held that a judgment or decree is conclusive as to all persons in privity with the parties to the former action. (14 MLP, Judgment, § 265, p 678 et seq., citing cases.) In the light of the foregoing we shall take a further look at the case before us.
As already noted, it appears that the ordinance which was before the trial court when the decree was entered in the Kaul case is identical with that existing in this case. The only apparent difference between the 2 cases is that a different distributor and stockholder has now filed the bill and this time his corporation was not joined as a party plaintiff.
The foregoing authorities indicate that a stockholder is normally so far deemed an integral part of the corporation in which he holds stock that in the eyes of the law he is regarded as privy to all judicial proceedings affecting the body of which he is a member, whether for good or ill. Pnt more bluntly, generally in this area it is held that a stockholder takes his stock much as the trusting bridegroom takes his bride, for better or for worse.
That there are some exceptions to this general proposition in some circumstances, as noted, is a subject we need not here extensively dwell upon for the ample reason that nothing appears in the record and briefs before us suggesting the possible application of any such exceptions to this case. On its face it would appear that a prior action brought by a “milk” corporation seeking to question a municipal milk ordinance it thought was illegally restrictive of its main activities, and thus invalid, is not out of line with the normal corporate interests and proper concerns of such a corporation and all of its shareholders. The fact of this case shows that the appellant shareholder and his corporation saw eye to eye on that score, at the very least. And we are not disposed gratuitously to read collusion or fraud into the prior proceedings to which the corporation was a party, especially where none is alleged in the present action by its stockholder. That this earlier decree may have been a consent decree does not, from that fact alone, change our view. We are aware that in the field of litigation, as in other areas of life, when defeat appears inevitable it is sometimes better to relax and consent to it. Consent alone does not imply fraud or collusion.
Having found privity (or rather, no lack of it), and finding no other reason within the exceptions for departing from the general rule, we next examine whether appellant should nevertheless he permitted to maintain his present action for still some other reason appealing to equity and good conscience. A solution to this question can perhaps best be sug gested by examining what could happen were we to rule in his favor.
If we accept appellant’s position here it -would seem inevitable that few unappealed judgments, orders or decrees against a corporation (or for it, for that matter) could ever really be said to be final until the last and latest stockholder therein had fought his way through the same issues originally litigated. Thus, if we were to remand this case for answer and ultimate hearing on the merits, and the decision should again go against the attack on the ordinance, as previously, then presumably by the same reasoning nothing would prevent still another sturdy stockholder from filing still another bill, and so on, ad infinitum, like the ant and the proverbial grain of sand in the old fable. Where would the story ever end?
This claimed right to “sue till something gives” cannot be sound law. There must be an end of litigation, and out of sheer self-defense and considerations of broad public policy our courts cannot gladly permit repeated litigation of the same old question under the circumstances appearing in this case. Indeed, in all candor, this is probably one of the large contributing factors in our decision. Among other things, such a holding would have the end effect of circumventing our settled procedures for the timely taking of appeals. And insofar as the Kaul decree was a consent decree (as appellant in his oral argument now insists) to hold with him would also, in ultimate effect, be to permit by indirection that which plainly could not be accomplished directly, that is, to allow (and belatedly) an appeal from (as well as a rehearing of) a consent decree. We have many times held that such an appeal cannot be had, belated or not. On this last point see Dora v. Lesinski, 351 Mich 579 at 582, citing earlier Michigan cases.
We think and hold that the plaintiff here, being a stockholder in and distributor for the Twin Pines Farm Dairy, is in the circumstances of this case estopped from pursuing the present litigation by the final and nnappealed decree in the Kaul case, in which the corporation in which he presently holds stock was a party plaintiff. Whether appellant here was a stockholder therein.at the time of the Kaul decree does not clearly appear, but we regard that as unimportant in this case unless we are generally prepared to hold that the effects of a final unappealed decree can be circumvented or suspended by the device of a suit being brought by a later purchaser of stock in the affected corporation, if such this plaintiff be. It follows that the action of the chancellor below in dismissing the bill of complaint was correct and we must affirm what he did (if not all of his reasons for doing so), with costs to the prevailing parties.
We remand this cause for one purpose and one purpose only: that the chancellor may determine (so that there may be taxed as additional costs) the expense appellees were put to in having to include in their own appendix material which the appellant plainly should have included in his own appendix under our court rules, namely, the proceedings in the Kaul case. This omitted material was obviously necessary for a determination of the only issue properly before us on this appeal. Much that he did include was not. We may patiently overlook the latter but, for all our vast erudition, we can scarcely divine the former. In all other respects the action-below is affirmed.
Smith, Edwards, and Kavanagh, JJ., concurred' with Voelker, J.
Dethmers, C. J., and Carr and Kelly, JJ., concurred in the result.
Black, J., did not sit.
See Court Rule No 70, § 5, as amended in 1956 (347 Mich xxx). — ' ¡Reporter. | [
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Per Curiam.
Plaintiffs’ bill attacks certain annexation proceedings, same having been pursued to elective conclusion under authority of sections 6 and 13 of the so-called home-rule act, PA 1909, No 279, as last amended, respectively, by PA 1957, No 210 and PA 1956, No 77 (CL 1948, § 117.6, as amended, CLS 1956, § 117.13 [Stat Ann 1957 Cum Supp §§ 5.2085, 5.2092]). The bill was dismissed below on motion of defendants. Plaintiffs appeal.
The annexation elections were held June 5, 1958. By the processes thereof an affirmative vote was recorded, in the township and city respectively, favoring annexation of some 3,120 acres of land, situated in Allegan county’s Fillmore township, to the defendant city of Holland. The proceedings proper are not attacked excepting as noted herein.
"We accept for reviewable purposes plaintiffs’ outline of the allegations of their bill. Such outline follows:
“Plaintiffs, 69 in number, residing in said described territory, representing the ownership of 39 parcels of land in said territory ranging in size from 1 residence situated on a farm to 1 farm of 98 acres, totalling 1,500 acres, brought suit in equity on the 1st day of August, 1958, alleging that all of the land owned by plaintiffs was unplatted farm land used exclusively for agricultural purposes, was not municipal in character and was incapable of being benefited by municipal improvements. Plaintiffs’ bill of complaint alleges that their property was included in the annexed area for the sole purpose of increasing the tax revenue of the city of Holland with no prospect of plaintiffs receiving corresponding benefits.
“Plaintiffs allege that the proceedings taken to annex their lands were unreasonable, dictatorial and arbitrary and unconstitutional in that such proceed-, bags deprived them of their property without due process of law in violation of section 16, article 2, Constitution of the State of Michigan (1908), and section 1, article 14, Constitution of the United States.
“Plaintiffs alleged that the proceedings to annex their land to the city of Holland were unconstitutional in that such proceedings constituted an unlawful delegation of legislative power and that the exercise of such legislative power by the defendants and others in determining and fixing the area to be annexed to the city of Holland was arbitrary, unreasonable and unconstitutional.
“Plaintiffs alleged that an election for the annexation of said territory and additional territory was held November 19, 1957. That at said election the proposition of annexation was defeated by the electors, that thereafter the defendants and others publicly announced that Holland high school would not accept students from Fillmore township unless there was a political annexation, and that the defendants and others, acting in concert, arbitrarily fixed and determined the area of said described area without regard as to whether or not said area was metropolitan in character, fixed said boundary to be annexed so as to secure a favorable majority within said area and fixed said boundary of said area to be annexed for the sole purpose of securing tax revenue from unplatted, agricultural farm lands without regard to the character of said lands.
“Plaintiffs alleged that the petitions circulated for annexation were defective in that the signatures on said petitions were not followed by a description of the land and area represented by said signature and further that said petitions were defective in that they did not contain or were not accompanied by a sworn statement giving the total area of the land, exclusive of streets lying within the area proposed to be annexed.”
The motion to dismiss assigned, as principal ground of dismissal, that plaintiffs had failed to proceed as authorized by sections 27 through 30 of chapter 38 of the judicature act of 1915, as amended (CL 1948, §§ 638.27-638.30 [Stat Ann §§27.2341-27-.2344]). The 4 sections read respectively as follows:
“Sec. 27. Informations under this chapter may be filed by the prosecuting attorney of the proper county, on his own relation, or that of any citizen of the county, without leave of the court, or, by any citizen of the county by special leave of the court or a judge thereof.
“See. 28. A petition may be filed in the circuit court of any county of this State whenever it shall be made to appear that material fraud or error has been committed at any election in such county at which there shall have been submitted any constitutional amendment, question, or proposition to the electors of the State or any county, township or municipality thereof.
“Sec. 29. Such petition shall be filed within 30-days after such election by the attorney general or the prosecuting attorney of the proper county on his own relation, or on the relation of any citizen of said county without leave of the court, or by any citizen of the county by special leave of the court or a judge thereof. Such petition shall be filed against the municipality wherein such fraud or error is alleged to have been committed.
“Sec. 30. After the filing of such petition the procedure shall conform as near as may be to that provided by law for informations in the nature of quowarranto.”
Noting that more than 30 days had elapsed between the date of said elections and the filing of plaintiffs’ bill, and considering the conceded fact that no petition or information in pursuit of the-quoted statutory provisions had been filed by anyone,, the circuit judge held that the statute provided an adequate remedy for judicial determination of the questions plaintiffs would litigate by tbeir bill. On such premise the judge found that the bill failed to confer equitable jurisdiction and, further, that the bill could not be regarded as a substitute for quo warranto as statutorily provided.
Reading plaintiffs’ bill in the light of such statutory procedure, we are obliged to agree. The bill discloses no ground for intervention of equity and fails to disclose inadequacy of the legal remedy. It presents no question other than such as might have been submitted and litigated, had the legal proceeding been instituted on time, according to the statute. The statute evidences fair intent that the concerned inhabitants as well as duty-charged public officials be timely informed whether, from a finally-settled legal standpoint, the affected territories do or do not unitedly constitute 1 municipal corporation. Holding to these views, we are not disposed on impetus of plaintiffs’ said bill to rule other than that plaintiffs were possessed of a due and fully adequate remedy at law, which remedy they without valid excuse did not seek in legal time.
Affirmed. No costs.
Dethmers, C. J., and Carr, Kelly, Smith, Black, Edwards, Voelker, and Kavanagh, JJ., concurred.
Reference is obviously to Fourteenth Amendment. — Reporter. | [
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Smith, J.
This suit is between an employer, Town & Country Motors, of Escanaba, Michigan, and a labor organization, Local Union No. 328, International Brotherhood of Teamsters, Chauffeurs, Ware-housemen and Helpers of America, its officers, and a labor organizer acting on its behalf. The relief sought is an order restraining the union and its agents from picketing the employer’s place of business, as well as from engaging in certain related activities.
The case follows a familiar pattern of industrial warfare. The union made an unsuccessful attempt to organize the employees of Town & Country Motors. Whether this was because the employees were satisfied with their lot or whether they were discouraged from organizing by their employer, as the union charged both before the national labor relations board and in the trial court, we need not decide. Picketing followed. The union asserted that wages, hours, and working conditions at Town & Country Motors were substandard and destructive of the union standards that had theretofore been established for its members in their employment rela tionships with competing concerns. The purpose of .the picketing is controverted. The defendants contend that the purpose was to inform the public and enlist its support, and that the picketing was a constitutionally protected exercise of the right of free speech. The plaintiff contends that the purpose was to compel it to urge and encourage its employees to join the union, in other words, to compel it to interfere with its employees’ right of self-organization. The trial court found that there were no overt acts of violence and we conclude that the picketing was peaceful.
A temporary restraining order was issued and contempt proceedings were initiated for alleged violation thereof. Upon a hearing on the merits, the trial court found that the purpose of the picketing was indeed to compel Town & Country Motors to interfere with its employees’ right of self-organization and issued a permanent injunction phrased in broad terms. The defendants contend principally that, since the business of Town & Country Motors, an authorized automobile dealership, is one that affects .interstate commerce, the circuit court had no jurisdiction to hear and decide the issues presented, in that the Congress through enactment of the national labor relations act, has pre-empted this area of the law of labor relations. The defendants have taken a general appeal to this Court, during the pendency of which decision in the contempt proceedings is held in abeyance.
Our first inquiry relates to the scope of jurisdiction of the NLRB. The national labor relations act grants to the NLRB power over labor relations matters “affecting commerce.” Herein, we might note, lies the distinction between snch cases as Atlantic Coast Line R. Co. v. Standard Oil Company of Kentucky, 275 US 257 (48 S Ct 107, 72 L ed 270), relied upon by appellees, in which the court was called upon to decide whether or not the movement of certain merchandise “constituted any part of interstate commerce” or “integral parts of their interstate business.” This is not our issue. We are dealing with a vastly different concept, defined in the act itself:
“The term ‘affecting commerce’ means in commerce, or burdening or obstructing commerce or the free flow of commerce, or having led or tending to lead to a labor dispute burdening or obstructing commerce or the free flow of commerce.” 29 USCA, § 152(7).
This term, “affecting commerce,” it has been held, was intended by the Congress to utilize the full extent of its powers under the commerce clause. Polish National Alliance v. National Labor Relations Board, 322 US 643 (64 S Ct 1196, 88 L ed 1509). Thus the jurisdiction of the NLRB is not to be tested by whether or not articles flow in the direct stream of interstate commerce, or, indeed, upon the size of the business involved or the volume of its trade. The act on its face, “evidences the intention of Congress to exercise whatever power is constitutionally given to it to regulate commerce by the adoption of measures for the prevention or control of certain specified acts — unfair labor practices — which provoke or tend to provoke strikes or labor disturbances affecting interstate commerce. Given the other needful conditions, commerce may be affected in the same manner and to the same extent in proportion to its volume, whether it be great or small.” National Labor Relations Board v. Fainblatt, 306 US 601, 607 (59 S Ct 668, 83 L ed 1014). See, also, National Labor Relations Board v. Jones & Laughlin Steel Corp., 301 US 1 (57 S Ct 615, 81 L ed 893, 108 ALR 1352).
Plaintiff Town & Country Motors holds what the union describes (without contradiction) as a “standard form” selling franchise from the General Motors Corporation. It is apparently captioned “Direct Dealer Selling Agreement for Cadillac Motor Car Division and Oldsmobile Division of General Motors Corporation.” The portions before us provide in part that the dealer shall have the “nonexclusive” privilege of selling Oldsmobile motor vehicles, “parts and accessories,” that he shall make detailed and periodic reports to the seller, that “each person named in paragraph third of this agreement shall devote his full time, attention and energy to the conduct of the dealership business;” that dealer’s place of business, including his “salesroom, service station, parts and accessories facilities” shall not only be satisfactory to the seller, but subject to its inspection. Written consent from the seller, moreover, must be obtained in order to move to a new location, “including any used-car lot or location;” a uniform accounting system “designated by the seller” (and open to seller’s examination) must be maintained by the dealer, and “in strict accordance with the accounting manual prescribed by seller;” an “advertising fund” is established from the proceeds of the sales of' cars, a portion of it to be expended “in paying the cost of local advertising,” another portion (the “factory” portion) to be used by the “seller for advertising of such type in such media and at such time and place as, in the opinion of seller, will most effectively serve the dealer needs or interests as determined by seller.” We need not further sum marize the lengthy provisions before us. The supervision agreed upon is both minute and comprehensive.
The NLRB has held repeatedly that its jurisdiction extends to and comprehends retail automobile dealers operating under such agreements (whether, in particular cases, it exercises such jurisdiction or not). Thus the case of Baxter Brothers, 91 NLRB 1480, involved, as does this case, an employer holding a General Motors Corporation sales agreement. With respect to its jurisdiction the board held as follows (p 1481):
“Having recently re-examined board policy concerning the exercise of jurisdiction, we are of the opinion that when an employee is an integral part of a multistate enterprise, the board should exercise its discretion in favor of taking jurisdiction. We consider franchised automobile dealers, such as the respondents, to be enterprises of this nature, even though, as here, the business may be locally owned and make all its sales within the State. In reaching this conclusion, the board has considered the franchise arrangements under which the respondents operate and the fact that they function as an essential element in a nation-wide system devoted to the manufacture and distribution of automobiles. Accordingly, we find that it will effectuate the policies of the act to assert jurisdiction over the respondents.”
The agreement before us, in fact, closely parallels that of Howell Chevrolet Co. v. National Labor Relations Board, 346 US 482 (74 S Ct 214, 98 L ed 215), wherein “Howell’s local retail establishment was closely supervised by General Motors,” with “sweeping control of the business * * * reserved by General Motors in a ‘Direct Dealer Selling Agreement.’ ” It was there held (p 484) that “Howell was ‘an integral part’ of General Motors’ national system •of distribution. Under these circumstances the board was justified in finding that Howell’s repeated unfair labor practices tended to lead to disputes burdening or obstructing commerce among the States. It follows that the board had jurisdiction to act upon the facts it found.” Such, also, was the holding in National Labor Relations Board v. Bill Daniels, Inc., 346 US 918 (74 S Ct 305, 98 L ed 413), reversing, 202 F2d 579, involving a Michigan automobile dealer, operating under sales agreement with the Ford Motor Company, who sold “entirely within the State of Michigan, or 99% within that State, parts, accessories and motor cars purchased from Ford within the State of Michigan.” In the case before us we finally note, also, with respect to the business done, that purchases by plaintiffs from outside the State amount to over $246,000, a figure hardly so insignificant as to come within the interstate de minimas doctrine. National Labor Relations Board v. Stoller (CCA), 207 F2d 305, 307, certiorari denied, 347 US 919 (74 S Ct 517, 98 L ed 1074), and rehearing denied, 347 US 958 (74 S Ct 675, 98 L ed 1102, 1103).
Here, as in Howell Chevrolet and Bill Daniels, supra, it is clear that the NLRB “had jurisdiction to act.” But despite its plenary power over labor relations affecting interstate commerce, the board from the start, has declined to exercise such jurisdiction in certain cases coming before it. Such screening has been accomplished through the application of certain standards. Whether such standards have been reached in the case before us is a question the parties approach in a gingerly manner, leading us to suspect that they are not quite sure. The appellee contents itself with the assertion that “plaintiff was engaged in intrastate commerce.” To the defendants “it seems that the NLRB would decline to exercise its jurisdiction” because of the 1954 jurisdictional yardsticks promulgated by the NLRB. It adds that “only this month, however, NLRB chairman, Mr. Boyd Leedom, testified before a house labor subcommittee that the NLRB may revise its standards. * * * Hence, whether NLRB would or would not exercise jurisdiction in the circumstances of this case is at present an open question.” Defendants further state that “the opinion of the trial court sets forth the 1954 jurisdictional standards insofar as those standards relate to establishments such as Town & Country Motors.” The “direct inflow standard” there referred to requires “an enterprise which receives goods or material, from out of the State, valued at $500,000 or more.” As to this standard the trial court held that, as a conceivable maximum, “the combined totals of the out of State inflow and the inflow over the Straits of Mackinac amounts to $423,859.39, which is far below the new standards promulgated.” As to the outflow standard the trial court found that “the total of these amounts is $26,443.86, being considerably less than the minimum standards promulgated.”
Not only, then, did the trial court‘find that there was a failure to reach the NLRB’s jurisdictional standards but such, also, was the'opinion of the field examiner of the regional office of the NLRB. The union, by its Mr. Arnold Alsten, secretary-treasurer of Local 328, had filed a charge with the NLRB that Town & Country was and had been engaged in unfair labor practices. With respect thereto the following letter appears in the record^ addressed to plaintiff’s counsel:
“Re: Town & Country Motors
Case No. 18-CA-742
“Dear Sir:
“This will confirm our conversation of today in which I advised you that our investigation has shown that the Town & Country Motors at Eseanaba, Michigan, would not be accepted by the National Labor Relations Board as being within its jurisdiction.
“As you know, this decision is based upon the ■signed information given us on April 24, 1956 to the •effect that approximately $20,000 of the copartnership sales were made to persons outside of the State •of Michigan and that its purchases were less than $500,000, of which none were made from points outside of Michigan. The current standards of the Board require that ‘a company operating a single retail store or service establishment only’ must make annual sales directly out of State of at least $100,000 in value and/or make annual purchases directly from out of State of at least $1,000,000 in value or make annual purchases indirectly from out of State of at least $2,000,000 in value.
“This information has been given to the union involved in this case with the statement that if not withdrawn, it will be necessary that I recommend that the charge be dismissed by the regional director. This action would be taken next week except for the fact that I shall be in Michigan and unable to take any action.
“The recommendation will therefore be made as ■soon after May 14, 1956 as time will permit.
“We are inclosing herewith a copy of the Nineteenth Annual Report of the National Labor Relations Board for the fiscal year ended June 30, 1954, •on page 4 of which, under paragraph 4, you will find the information cited above.
“Very truly yours,
“Ray C. Jenkins,
“Field Examiner.” “Enclosure
A portion of the 1954 jurisdictional standards of the NLEB we quote in the margin hereof.
We do not, however, pass upon the correctness of the application of the standards to the case at bar, either by the trial court or the regional office of the NLRB. Nor do we pass upon the question of whether or not the NLRB would or would not ultimately have assumed jurisdiction had the matter been pursued through the various administrative channels to a final ruling thereon. We do not pass upon these matters because they are not essential to decision. We have concluded heretofore that the business of Town & Country came within the jurisdiction of NLRB. Howell Chevrolet Co. v. National Labor Relations Board, supra; National Labor Relations Board v. Bill Daniels, Inc., supra. This being the case, the matter is squarely ruled by Guss v. Utah Labor Relations Board, 353 US 1 (77 S Ct 598, 1L ed 2d 601); and its companion cases, San Diego Building Trades Council v. Garmon, 353 US 26 (77 S Ct 607, 1 L ed2d 618); and Amalgamated Meat Cutters v. Fairlawn Meats, Inc., 353 US 20 (77 S Ct 604, 1 L ed2d 613). (The last case involved, as does the case before us, an action by an employer for an injunction against union picketing of its premises. Prior to picketing, the union had unsuccessfully attempted to organize the plaintiff’s employees. No petition had been filed with the NLRB.)
The issue settled in these cases, so far as it affects our present decision, had been before the courts, the NLRB, and the Congress for years, and had produced a torrent of discussion.* With respect to the assumption of jurisdiction by the State courts in the event the NLRB failed or refused to exercise jurisdiction, it was argued, on the one hand, that failure so to do would result in a no-man’s land situation where both employee and employer would be without remedy as to a great number of unfair labor practices. This is a situation that cannot be viewed with ■equanimity or detachment by any citizen of an industrial State. (Violence, of course, always remains ■controllable by the local authorities. See Ilill v. Florida, ex rel. Watson, 325 US 538, 544 [65 S Ct 1373, 89 L ed 1782].) Per contra, it was argued that the assumption by the State courts of jurisdiction would result in a hodge-podge of regulation in a field wherein uniformity of regulation was the congressional intent, opening the door to competition between States for business on the inducement of “favorable” labor laws, just as we have States with “favorable” divorce laws and “favorable” corporation laws. Conflicting authority would, moreover, "be commonplace within the States themselves, not only as to individual employers (who in lean years might fall short of the NLRB dollar standards, and thus be subject to State control, while in the harvest years might exceed such standards and be subject to Federal control), but also as between neighboring employers, one company being under the standards and subject to State jurisdiction, its neighbor being over the standards and subject to NLRB jurisdiction, with obvious effects upon their relative competitive positions. The jurisdiction of the State courts would first have to be established with reference to the NLRB’s jurisdictional standards, a task the magnitude of which we have hinted heretofore, involving the interpretation of complicated standards of uncertain application, the accuracy of such determination in each case presenting a Federal question. Our jurisdiction would, moreover, was and wane with the NLRB’s amendments and interpretations of its jurisdictional standards. These and similar considerations with respect to the interpretation and administration of an act national in its scope give point to the repeated holdings by the United States supreme court to the effect that “the board, and not the State court, is empowered to pass upon such issues in the first instance.” Weber v. Anheuser-Busch, Inc., 348 US 468, 478 (75 S Ct 480, 99 L ed 546). See, also, Teamsters Union v. New York N. H. & H. R. Co., 350 US 155, 161 (76 S Ct 227, 100 L ed 166), wherein it was held:
“Respondent contends, however, that even if rail-L'oads may seek the aid of the NLRB, it was not required to do so in this case because petitioners* conduct was neither protected by section 7 nor prohibited by section 8(b) (4) of the labor management relations act. As we noted earlier, respondent’s amended complaint alleged violations of the act. Whether the act was violated or whether, as respondent now claims, it was not, is, of course, a question for the board to determine.”
That a choice between such powerful and competing considerations would eventually have to be made has been obvious for years. Under the commerce' and supremacy clauses of the Constitution the choice is that of the Congress and the history of the governing legislation discloses that it was de liberately made by the Congress. This is made clear in Amalgamated Association of Street Railway Employees v. Wisconsin Employment Relations Board, 340 US 383, 397, 398 (71 S Ct 359, 95 L ed 364, 22 ALR2d 874), in which it was held (the footnotes are those of the United States court):
“When it amended the Federal act in 1947, Congress was not only cognizant of the policy questions that have been argued before ns in these cases, but it was also well aware of the problems in balancing State-Federal relationships which its 1935 legislation had raised. The legislative history of the 1947 act refers to the decision of this court in Bethlehem Steel Co. v. New York Labor Board (1947), 330 US 767 (67 S Ct 1026, 91 L ed 1234), and, in its handling of the problems presented by that case, Congress demonstrated that it knew how to cede jurisdiction to the States. Congress knew full well that its labor legislation ‘preempts the field that the act covers insofar as commerce within the meaning of the act is concerned’ and demonstrated its ability to spell out with particularity those areas in which it desired State regulation to be operative. This court, in the exercise of its judicial function, must take the comprehensive and valid Federal legislation as enacted and declare invalid State regulation which impinges on that legislation.”
In other words, the problems we have described were clearly visible to the Congress at the time of the Bethlehem Steel Case, supra. It met them by the enactment of section 10(a), above referred to, authorizing a cession of NLRB’s jurisdiction to the States upon certain conditions. It would seem clear beyond argument that no statutory provision for the ceding of jurisdiction would have been necessary had the national act not extended its coverage to the full limit of the constitutional power involved.
Against this legislative, economic, and judicial background the sweep and importance of the decisions in the Guss, Amalgamated Meat Cutters, and Garmon Cases, supra, and their control over our permissible areas of action, become clear. As was said in Guss, supra (pp 9-12) :
“We hold that the proviso to section 10(a) is the exclusive means whereby States may be enabled to act concerning the matters which Congress has entrusted to the national labor relations board. # * *
“We are told by appellee that to deny the State jurisdiction here will create a vast no-man’s-land, subject to regulation by no agency or court. We are told by appellant that to grant jurisdiction would produce confusion and conflicts with Federal policy. Unfortunately, both may be right. We believe, however, that Congress has expressed its judgment in favor of uniformity. Since Congress’ power in the area of commerce among the States is plenary, its judgment must be respected whatever policy objections there may be to creation of a no-man’s-land.
“Congress is free to change the situation at will. In 1954 the senate committee on labor and public welfare recognized the existence of a no-man’s-land and proposed an amendment which would have empowered State courts and agencies to act upon the national board’s declination of jurisdiction. The national labor relations board can greatly reduce tbe area of the no-man’s-land by reasserting its jurisdiction and, where States have brought their labor laws into conformity with Federal policy, by ceding jurisdiction under section 10(a). The testimony given by the chairman of the board before the appropriations committees shortly before the 1954 revisions of the jurisdictional standards indicates that its reasons for making that change were not basicly budgetary. They had more to do with the board’s concept of the class of cases to which it should devote its attention.” (Footnotes are the United States court’s.)
Any other conclusion would, of course, permit the NLRB to do indirectly what it could not accomplish directly, namely, to cede jurisdiction to a State the law of which was inconsistent with the Federal law. See 56 Mich L Rev 133 (1957).
The following should also be observed from the Amalgamated Meat Cutters Case, supra (pp 23, 24):
“Although the extent of respondent’s interstate .activity seems greater even than that in Building Trades Council v. Kinard Construction Co., 346 US 933 (74 S Ct 373, 98 L ed 423), we will assume that this is a case where it was obvious that the board, would decline jurisdiction.
“On this view of the case, our decision in Guss v. Utah Labor Relations Board, ante, p 1, controls. If the proviso to section 10(a) of the national labor-relations act operates to exclude State labor boards from disputes within the national board’s jurisdiction in the absence of a cession agreement, it must also exclude State courts. See Garner v. Teamsters Union, 346 US 485, 491 (74 S Ct 161, 98 L ed 228). The conduct here restrained — an effort by a union not representing a majority of his employees to compel an employer to agree to a union shop contract — -is conduct of which the national act has taken hold. Section 8(b)(2), 61 Stat 141, 29 USC, § 158 (b)(2). Garner v. Teamsters Union, supra, teaches that in such circumstances a State cannot afford a remedy parallel to that provided by the act.
“It is urged in this case and its companions, however, that State action should be permitted within the area of commerce which the national board has elected not to enter when such action is consistent with the policy of the national act. We stated our belief in Guss v. Utah Labor Relations Board, ante, at pp 10, 11, that ‘Congress has expressed its judgment in favor of uniformity.’ We add that Congress did not leave it to State labor agencies, to State courts or to this court to decide how consistent with Federal policy State law must be. The power to make that decision in the first instance was given to the national labor relations board, guided by the language of the proviso to section 10(a). This case is an excellent example of one of the reasons why, it may be, Congress was specific in its requirement of uniformity. Petitioners here contend that respondent was guilty of what would be unfair labor practices under the national act and that the outcome of proceedings before the national board would, for that reason, have been entirely different from the outcome of the proceedings in the State courts. Without expressing any opinion as to whether the record bear's out its factual contention, we note that the opinion of the Ohio court of appeals takes no-account of the alleged unfair labor practice activity of the employer. Thus, it cannot be said with certainty whether the State court’s decree is consistent with the national act.”
The last paragraph of the quotation is of peculiar applicability to the matter before us. It requires no-more than a superficial study of the legislative history of the Taft-Hartley act (61 Stat 136, 29 USCA, §§ 141-187) to observe the congressional rejection of the theory that employers should be permitted to do precisely what was here done, namely, to apply directly to the courts for injunctive relief against strikes and peaceful picketing for objectives which the act denominated unfair labor practices. As Senator Ives put it (93 Cong Rec 4839; 2 NLRB, Legislative History, Labor Management Relations Act,, p 1356), allowance of such course of action would only serve to reintroduce “the flagrant abuses which brought about the enactment of the Norris-LaGuardia act.”
Lacking State action pursuant to section 10(a) of the act, providing the manner whereby the States-may acquire jurisdiction, we are without power or jurisdiction to deal with unfair labor charges within the jurisdiction of the NLRB. Guss, Amalgamated Meat Cutters, and Garmon, supra.
Appellee discusses at some length the argument' that due process requires that it, a State court, take-jurisdiction of cases wherein jurisdiction is denied, or not asserted, by the NLRB, stating that “The-question of due process was not mentioned by the-United States supreme court in the Guss Case, supra, and its 2 companion cases.” The argument, however, has repeatedly been brought to the attention of' the supreme court. It was discussed extensively by, the employer in the Fairlawn (Meat Cutters) Case, supra, and the motion for rehearing, which was denied (353 US 948, 77 S Ct 822, 1 L ed2d 857), was based solely upon it. It was made and rejected in Ex parte Twedell, 158 Tex — (309 SW2d 834); and in Hehl v. Chippewa & Red Cedar Valley Carpenters’ District Council, 4 Wis2d 629 (91 NW2d 226). The answer is clear: We have no jurisdiction in the premises. We cannot be held to deprive a litigant of due process if we have no jurisdiction to render any process whatsoever. We cannot give a man a day in court if, for his purposes, we do not have the jurisdiction required by a court. Moreover, ■a proper observance of the respective limits of the Federal-State system impels us to decline the heady invitation that we declare to be unconstitutional decisions of the United States supreme court.
It remains to consider the disposition of the petition for contempt. This issue arose out of the following : Peaceful picketing had commenced on March 21, 1956, and continued until April 5, 1956. Upon this date a temporary restraining order was issued, it reciting that “on reading and filing the bill of complaint in this cause and on motion of McGinn and Fitzharris, counsel for plaintiff, it is ordered that the above-named defendants” show cause upon a day certain why injunction should not issue during the pendency of the suit, and that “in the meantime” ■said defendants were ordered to “desist and refrain from picketing the plant and place of business of plaintiffs” and from other named acts, some of which, as may be observed in the footnote, were defined in the broadest possible terms. What happened thereafter is in dispute. Appellee asserts-that—
“after the summons, bill of complain and restraining-order had been served on defendants, the defendants stopped picketing during the morning of April 6,. 1956, and then recommenced picketing on the afternoon of April 6th and continued picketing until an, order to show cause why defendants and respondents-Wallace Gasman and Eaymond Gangstad should not be held in contempt of court was served. Service-was had during the evening of April 7th.”
Appellants, on the other hand, state that—
“It is pertinent to note that the trial court made no finding that the union continued picketing in violation of the ex parte restraining order. The testimony adduced in the course of the trial demonstrates that the only conduct engaged in following service of the order was the distribution of pamphlets. Such conduct was not prohibited by the order.”
The primary inquiry presented by the contempt proceedings relates to the nature of the order allegedly violated. We take as axiomatic the statement of the law made by Mr. Justice "Wiest many years ago that “one may not be held in contempt for disobedience of an order or command which the court had no jurisdiction to make.” (In re Mead, 220 Mich 480, 483.)
WTiat, then, is the legal effect of the injunction before us? Is it in truth void? Or is it merely an erroneous order, to be obeyed until set aside? The questions, as is true in respect of all going to the jurisdiction of courts, are not without difficulty. The answer must be found, not in abstract reasoning, but in the intent of the framers of the legislation, viewed in the light of the problems pressing for solution. If this case involved no more than the exercise of the traditional discretion of the chancellor, in a case devoid of the asserted Federal pre-emption, he would be well advised to ponder the thoughtful conclusions of one of the leaders of the American Bar, the late John W. Davis, who a half century ago, placed the issuance of the ex parte labor injunction first in his list of the “glaring abuses which have crept into the administration of this remedy.” (48 Cong Rec 6436.) The might of the chancellor, armed ■as he is, with the incalculable strength of the force ¡and majesty of the law and the power of organized ¡society itself, will be exercised only upon the die tates of a conscience the most sensitive, a discretion the most exquisite, with a full awareness that his injunction, though temporary in name, will finally and conclusively dispose of the controversy before him. Mr. Justice Holmes went to the heart of the matter in his famous opinion in Vegelahn v. Guntner, 167 Mass 92, 107 (44 NE 1077, 35 LRA 722, 57 Am St Eep 443):
“I have seen the suggestion made that the conflict between employers and employed is not competition. But I venture to assume that none of my brethren would rely on that suggestion. If the policy on which our law is founded is too narrowly expressed in the term free competition, we may substitute free struggle for life. Certainly the policy is not limited to struggles between persons of the same class competing for the same end. It applies to all conflicts of temporal interests.”
But this is not, as we have noted, an exercise merely of the traditional discretion of the chancellor. None of the doctrines supporting interim obedience to an injunction issued, perhaps unwisely, by a court in the exercise of its primary jurisdiction, pending its challenge in a higher court (namely, the supremacy of law over man, the principle that a court having primary jurisdiction has, also, the jurisdiction to make a mistake, the “subjection of force to reason,” Pound, The Future of the Law, 47 Yale L J 1, 13), is here involved or applicable to the case before us. Here the vitiating defect lies at the very threshold of the court’s assumption of power. Why?
Even a court may utilize the blessings of hindsight. A glance at the past will reveal the considerations that led to the enactment of the legislation before us, which considerations, in our opinion,, preclude any interpretation of the act and its con-; sequences other than the one we here employ. It; will have been observed that np to the time of the issuance of the injunction the controversy followed what was for years the usual practice of dealing with a labor dispute, that is, simply to enjoin the strike and thus break it. Frankfurter and Greene, in their authoritative study, The Labor Injunction, describe the results of the proceedings in the following terms (pp 200, 201) :
“The history of the labor injunction in action puts some matters beyond question. In large part, dissatisfaction and resentment are caused, first, by the refusal of courts to recognize that breaches of the peace may be redressed through criminal prosecution and civil action for damages, and, second, by the expansion of a simple, judicial device to an enveloping code of prohibited conduct, absorbing, en masse, executive and police functions and affecting the livelihood, and even lives, of multitudes. Especially those zealous for the unimpaired prestige of our courts have observed how the administration of law by decrees which through vast and vague phases surmount law, undermines the esteem of courts upon which our reign of law depends. Not government, but ‘government by injunction,’ characterized by the consequences of a criminal prosecution without its safeguards, has been challenged.
“The restraining order and the preliminary injunction invoked in labor disputes reveal the most crucial points of legal maladjustment. Temporary injunctive relief without notice, or, if upon notice, relying upon dubious affidavits, serves the important function of staying defendant’s conduct regardless of the ultimate justification of such restraint. The preliminary proceedings, in other words, make the issue of final relief a practical nullity. * * * The [labor] injunction cannot preserve the so-called status quo; the situation does not remain in equilibrium awaiting judgment upon full knowledge. The suspension of activities affects only the strikers; the employer resumes his efforts to defeat the strike, and resumes them free from the interdicted interferences. Moreover, the suspension of strike activities, even temporarily, may defeat the strike for practical purposes and foredoom its resumption, even if the injunction is later lifted.”
Prominent among the abuses was the common inclusion of injunctive language construed to forbid labor’s publicizing what it regarded as the essential facts concerning the controversy by means of the placards of the picket line and the dissemination of leaflets therefrom.* Constitutional difficulties of the most serious nature (cf., Thornhill v. Alabama, 310 US 88 [60 S Ct 736, 84 L ed 1093]) cluster around the employment of a court’s injunctive process in derogation of our basic freedoms.. The denial to labor, in the pursuit of its legitimate objectives, of freedom to acquaint the public at large of its side of the controversy is no less a denial of free speech ■because the notification may, as well, exert an economic compulsion upon the listener. .To say that a “temporary” order restraining the exercise of a basic constitutional right is harmless to the existence and exercise of the right because the interference is only temporary is to substitute a shabby formula for a basic freedom. With obedience to the “temporary” injunction, under pain of contempt, the basic right is lost. It is the utterance of the protest of oppression that is intended to quicken the conscience of the community. If we still the tongue at the moment of need we may as well tear it out. The word that is heeded is the word wrung out of the very crisis itself, not the murmurings of reproach after the battle is lost. The essence of the freedom to speak is the freedom to speak while speech may yet be effective.
These abuses and the attendant uncertainty of the law to be applied led to comprehensive Federal legislation, of which the national labor relations act, now before us, is a part. The legislative history of the amendment of the act in 1947 makes it clear that the congress continued to reject the scheme of injunctive relief at the instance of employers though it imposed new limitations on the activities of unions. We find in Amazon Cotton Mill Co. v. Textile Workers Union of America, 167 F2d 183, 188, 189:
“The senate report (S Rep No 105 on Senate Bill No 1126, p 8) said that with respect to section 10(j) and 10 (l): * * * ‘Hence we have provided that the board, acting in the public interest and not in vindication of purely private rights, may seek injunctive relief in the case of all types of unfair labor practices and that it shall also seek such relief in the case of strikes and boycotts defined as unfair labor practices.’ (Italics supplied.) * * *
“Senator’s Ball’s amendment was rejected and Senator Taft, then introduced the amendment which became section 303 authorizing suits for damages on account of jurisdictional strikes and secondary boycotts. Fear was expressed by Senator Morse [Oregon] that this might give rise to the granting of injunctive relief in these cases (but not generally) to which Senator Taft replied (93 Cong K,ec 5074) : “ ‘Let me say in reply to the Senator or anyone else who makes the same argument, that that is not the intention of the author of the amendment. It is not his belief as to the effect of it. It is not the advice of counsel to the committee. Under those circumstances I do not believe that any court would construe the amendment along the lines suggested by the Senator from Oregon.’ * * *
“It is interesting to note that the same interpretation has been placed upon it by Mr. Van Arkel, former general counsel of the labor board, who analyzed the act for the Practising Law Institute. He says at pp 63-64 of his analysis:
“ ‘The legislative history, as has been indicated passim, seems entirely clear that injunctive relief on petition of private parties is not contemplated under the act. There is a possible exception, in that section 302(a) [29 USCA, § 186(a)], dealing with restrictions on payments to employee representatives, in section 302(e) grants power to the district courts “to restrain violations of this section” without regard to the 1\Torris-LaGuardia act or sections 6 and 20 of the Clayton act [15 USCA, § 17, 29 USCA, § 52]. This power is clearly limited to section 302 and hence could be exercised only in the case of violations of the health and welfare and checkoff provisions of the act.’ ”
It is thus clear that in providing for uniform administration of the national labor policy, although the framers of the amendment recognized that im mediate court action would often afford more prompt relief than administrative processes, they elected, nevertheless, to entrust the difficult and delicate problems involved, going to the very heart of our economic system, and the welfare of thousands of our citizens, to the NLRB.
Such, then, was the intent of the framers of the act with respect to the ex parte labor injunction, the alleged violation of which in the case before us, it is asserted, must now be investigated by the trial chancellor and presumably, if violated, punished, “irrespective of what action is taken [by the Supreme Court] on the question of jurisdiction over the subject matter of this cause.”
■ The procedure urged would, as a practical matter, mean the end of the Federal pre-emption of the field and the utter nullification of clear congressional intent that there be national uniformity of treatment of this complex social and economic problem. National policy would be effectively frustrated by a diversity of opinion as to how far Federal regulation extended. If, moreover, regardless of the State court’s jurisdiction, its orders are to be obeyed under pain of contempt, obedience there will be, even at the cost of the loss of the strike, as the long history of the labor injunction so eloquently attests. The restraining order temporary in name is decisive in reality. "We cannot interpret the legislation before us as permitting the restoration to full vig'or of the ancient evils described. The action prayed is not permissible under the controlling legislation. The board, and only the board, may obtain injunctive relief, should such be the public interest. We are led to conclude that the State courts are without jurisdiction in the most elementary sense. The order of the court being void for want of jurisdiction over the subject matter, we cannot remit to such court the fruitless task of ascertaining whether or not certain acts of the defendants constituted a “contempt” of the void order. The holding in Great Lakes Greyhound Lines v. International Union, UAW-CIO, 341 Mich 290, is not to the contrary. We did not, in that case, find the court’s order void for lack of jurisdiction. More to the point is Amalgamated Association of Street Railway Employees v. Wisconsin Employment Relations Board (1951), 340 US 383 (71 S Ct 359, 95 L ed 364, 22 ALR2d 874). There the State circuit court’s ex parte restraining order in a strike situation was found violated and the court entered “a judgment of contempt,” affirmed by the Wisconsin supreme court (Wisconsin Employment Relations Board v. Milwaukee Gas Light Co., 258 Wis 1 (44 NW2d 547). The United States supreme court reversed. “The national labor relations act of 1935 and the labor management relations act of 1947, passed by congress pursuant to its powers under the commerce clause,” held the court (p 399), “are the supreme law of the land under article 6 of the Constitution. Having found that the Wisconsin public utility anti-strike law conflicts with that Federal legislation, the judgments enforcing the Wisconsin act cannot stand.” Where, then, as here, the national labor relations act pre-empts the field and exclusive jurisdiction is vested in the NLRB, both authority to enjoin within the pre-empted area and to punish for contempt of the null injunction are denied the State by the Federal act.
Three bodies have the power to remedy the basic situation presented: The congress, the NLRB, and the States. None has acted. An agency of onr State, of course, might have been vested with authority to act had our State seen fit to accept the solution tendered by the Congress under section 10(a).* * Not having done so, not having accepted authority in the manner prescribed by the Congress, it would lie ill in our mouths to assert that our very lack of jurisdiction resulting therefrom somehow invests us with jurisdiction.
In summary, the trial court was without jurisdiction to issue the injunction since the NLRB has not completed with any agency of the State a cession of jurisdiction pursuant to section 10(a) of the labor-management relations act of 1947.
The decree of the lower court is vacated and the hill dismissed. Costs to defendants.
Black, Edwards, Voelker, and Kavanagh, JJ., concurred, with Smith, J.
Plaintiffs at the commencement of the suit were William R. Williams and Olaf W. Peterson, partnership doing business under -the name of Town & Country Motors. The suit was continued by the firm’s successor, Town & Country Motors, Inc.
Hereinafter the national labor relations board shall be referred to as NLRB.
49 Stat 449, as amended, 61 Stat 136 (29 TJSOA, §§141-187).
National labor relations aet, § 10(a), 49 Stat 453, as amended, 61 Stat 146 (29 TJSOA, § 160[a]).
The term “commerce” is defined (29 USCA, § 152[6]) as follows: “The term 'commerce’ means trade, traffic, commerce, transportation, or communication among the several States, or between the District of Columbia or any Territory of the United States and any State or other Territory, or between any foreign country and any State, Territory, or the District of Columbia, or within the District of Columbia or any Territory, or between points in the same State but through any other State or any Territory or the District of Columbia or any foreign country.”
For general 1950 standards see 15 NLRB Ann Rep 5-7; the NLRB’s Revised Jurisdictional Standards released to the press on July 15, 1954, are found in 19 NLRB Ann Rep 2-5.
“We have determined that in future eases the board will assert jurisdiction'—
“1. [General Standards for Other-Than-Retail Establishments:] over enterprises which annually meet one or more of the following .standards:
“(1) Direct inflow standard:
“An enterprise which receives goods or materials from out of .State, valued at $500,000 or more.
“ ( 2 ) Direct outflow standard:
“An enterprise which produces or handles goods and ships such goods out of State, or performs services outside the State in which the enterprise is located, valued at $50,000 or more.
“The enterprise itself must actually ship the goods to the out-of-.State destination.
“(3) Indirect inflow standard:
“An enterprise which receives goods or materials from other ■enterprises in the same State which those other enterprises received from out of State, valued at $1,000,000 or more.
“However, the goods must be received by the ultimate purchaser an the form in which they entered the State.
“(4) Indirect outflow standard:
“An enterprise which furnishes goods or services to other enterprises coming within subparagraph (2), above, or to public utilities or transit systems, or instrumentalities or channels of commerce and their essential links, which meet the jurisdictional standards established for sueh enterprises; and
“(a) Sueh goods or services are directly utilized in the products, services, or processes of sueh enterprises and are valued at $100,000 ■or more; or
“(b) Such goods or services, regardless of their use, are valued .at $200,000 or more.
“(5) Multistate standard:
“An establishment other than retail whieh is operated as an integral part of a multistate enterprise; and
“(a) The particular establishment involved meets any of the foregoing standards; or
“(b) The direet outflow of the entire enterprise amounts to $250,-000 or more; or
“(e) The indirect outflow of the entire enterprise amounts to $1,000,000 or more.
“We have further determined that unless an employer’s volume of operations meets one of the board’s new independent jurisdictional standards, we will not accumulate those standards in order to assert jui-isdiction.
“However, direet and indirect inflow may be added in applying the indirect inflow standard.
“2. [Intrastate Links of Interstate Commerce:] over transportation operations or other local activities which constitute a link in the chain of interstate commerce only where the annual income received by the particular company involved from services which constitute a part of interstate commerce totals no less than $100,000.
“It was further announced that jurisdiction will be asserted over (1) intrastate transit companies receiving at least $100,000 annually as a link in interstate transportation of passengers; and (2) over transit companies operating partly or wholly interstate and deriving at least $100,000 annually from (a) interstate operations or (b) from combined intrastate link transportation of passengers and interstate operations.”
In addition, standards were published for some 12 additional categories (e.g., concerns doing national defense business, retailing concerns, multistate retail chain's, franehised dealers, office buildings, et cetera).
29 USCA, §§ 157, 158(b) (4).—Reporter.
See Gibbons v. Ogden (1824), 22 US (9 Wheat) 1 .(6 L ed 23).
“23 Section 10(a) of the 1947 Aet, 29 USC (Supp III), § 160(a). A proviso of section 10(a) authorizes cession of jurisdiction to the States only where the State law is consistent with the Federal legislation. This insures that the national labor policy will not be thwarted even in the predominantly local enterprises to which the proviso applies. S Rep No 105, 80th Cong., 1st Sess 26 (1947). See, also, minority views to same report, id., pt 2, 38, agreeing as to this feature of the legislation.
“24 HR Rep No. 245, 80th Cong., 1st Sess. 44 (1947).
“26 See sections 8(d), 14(b), 202(e) and 203(b), 29 USC (Supp. Ill), §§ 158(d), 164(b), 172(e), and 173(b), in addition to section' 10(a) of the 1947 act for examples of congressional direction as to the role that States were to play in the area of labor regulation! covered by the Federal aet. And sections 2(2) and 2(3) of the; Federal act, 29 USC (Supp III), §§ 152(2), 152(3), specifically! exclude from its operation the employees of ‘any State or political | ■ subdivision thereof.’ ”
“16 'The effect * * * of the hoard’s policy of refusing to assert its jurisdiction has been to create a legal vacuum or no-man’s-land -with, respect to eases over which the board, in its discretion, has refused to assert jurisdiction. In these eases the situation seems to be that the board will not assert jurisdiction, the States are forbidden to do so, and the injured parties are deprived of any forum in which to seek relief.' S Rep No 1211, 83d Cong, 2d Sess 18. The minority agreed that ‘When the Federal board refuses to take a ease within its jurisdiction, the State agencies or courts are nevertheless without power to take jurisdiction, since the dispute is covered by the Federal act, even though the Federal board declines to apply the act. There is thus a hiatus — a no-man’s-land — in which the Federal board declines to exercise its jurisdiction and the State agencies and courts have no jurisdiction.' Id., Pt 2, p 14. The committee’s bill, S 2650, was recommitted. 100 Cong Ree 6203.”
“17 The national labor relations board has informed us in its brief amicus curiae in these eases that it has been unable, because of the conditions prescribed by the proviso to section 10(a), to consummate any cession agreements.
“18 Hearings before subeommitee of house committee on appropriations, department of labor and related independent agencies, 83d Cong, 2d Sess 309, 315, 323.”
The operative paragraph of the order of restraint read as follows:
“And it is further ordered that in the meantime and until the ■further order of the court, the said defendants Local Union No. 328, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, LeRoy Pettit, individually, ■and as an officer of said union, Arnold Alsten, individually, and as an officer and business representative of said union, Lial Clausohm, individually, and as an organizer of said union, together with all of ■the officers and members of said loeal union, and each of them, their agents, employees, servants, members, and counselors and attorneys and each and every one of them, do absolutely desist and. refrain from picketing the plant and place of business of plaintiffs; engaging in or inducing, encouraging the employees of any employer-to engage in a concerted refusal in the course of their employment to use, transport or otherwise handle or work on any goods, articles, materials or commodities or to perform any services for the purposes-of preventing the delivery of such goods, articles, materials or commodities, to and from the plaintiffs and their plaee of business; inducing or encouraging employers other than plaintiffs to engage in-a concerted refusal to deliver or to cause their employees not to-deliver supplies and goods, articles, materials and commodities to- and from the plaintiffs and their plaee of business; threatening or ordering boycotting against persons supplying goods, articles, materials and commodities to plaintiffs and their place of business or making deliveries of goods, articles, materials and commodities to, or from the plaintiffs and their plaee of business or purchasing goods,, articles, materials, commodities, automobiles or services from plaintiffs or selling goods, articles, materials, commodities, automobiles and services to plaintiffs; interfering with the servants, employees or agents of the plaintiffs or coercing them in any manner from carrying out the ordinary course of plaintiffs’ business, ineludinggoing to and fro-m plaintiffs’ plaee of business, the transportation of plaintiffs’ products, automobiles, articles, goods, materials and' commodities or the sale thereof or the delivery thereof to plaintiffs’ customers; from coercing and attempting to foree and coeree plaintiffs to require their employees to join Local Union No. 328 or to, force or coerce or attempt to foree or coerce said employees to join said union or to foree and coerce plaintiffs to enter into a contract with said union; recognizing said union as bargaining agent for said employees, contrary to their will; threatening or ordering boycotts-against persons doing business or wishing to do business with plaintiffs and their place of business and threatening to prevent or preventing employees of plaintiffs from obtaining employment at their-trades as a means of forcing employees of plaintiffs to join Loeal! Union No. 328 against their will, until the further order of this-court.”
Senate Miscellaneous Reports, 80th Congress, 1st Sess.—Reporter.
29 USCA, § 187.—Reporter.
Bound volume reference, 93 Cong Rec 4872.—Reporter.
Van Arkel, An Analysis of the Labor Management Relations Act, 1947, Practising Law Institute, New York.—Reporter.
Defendants inform the court by letter dated October 6, 1958, that: “On Thursday, October 2d, the national labor relations board announced that the new standards were effective immediately (42' Labor Relations Reporter 633). Accordingly, it is submitted that a forum before the national labor relations board is now available for plaintiff-appellee under the labor-management relations act of 1947.” Plaintifi’s letter with respeet thereto disputes this conclusion, stating that: “As we understand the new jurisdictional standards this would mean that national labor relations board would not provide a forum for Town & Country Motors, Inc.”
The cited section provides as follows (29 USCA, § 160[a]) :
“The board is empowered, as hereinafter provided, to prevent any person from engaging in any unfair labor practice (listed in section 158 of this title) affecting commerce. This power shall not be affected by any other means of adjustment or prevention that has been or may be established by agreement, law, or otherwise: Provided, That the board is empowered .by agreement with any ageney of any State or Territory to cede .to such ageney jurisdiction over any eases in any industry (other than mining, manufacturing, communications, and transportation except where predominantly loeal in character) even though such eases may involve labor disputes affecting commerce, unless the provision of the State or Territorial statute applicable to the determination of such eases by such ageney is inconsistent with the corresponding provision of this subchapter or has received a construction inconsistent therewith.”
Leading analyses are Tobriner and Grodin, Taft-Hartley Preemption in the Area of NLRB Inaction, 44 Cal L Rev 663; Smith, The Taft-Hartley Act and State Jurisdiction over Labor Relations, 46 Mich L Rev 593; Note, New Entrance into “No-Man’s-Land,” 65 Tale LJ 86.
We note that the petition for contempt in the matter before us asserts that a leaflet, reading as hereinbelow set forth, was circulated from the picket line subsequent to the service of the court’s restraining order:
“Please Do Not Patronize Town & Country Motors
“The sales and service agencies (garages) listed below located in Eseanaba and Gladstone operate under signed collective bargaining agreements with our union. These concerns grant employees whom we represent decent wages, hours and working conditions under freely negotiated collective bargaining agreements.
“We are anxious to advertise this fact to the public and to urge the people of this community to favor our members with their business.
“We do not claim that there is anything wrong with the workmanship at the Town & Country Motors. Its employees have the right not to belong to our union, and the employer has no duty to bargain with us unless a majority of its employees join our union.
“We are asking you to refrain from patronizing this company because we want to provide more jobs and earning opportunity for our members employed at other companies under contract with our union. This will not only help our members and our union, but will also assist the cause of the AEL-CIO.
“Please patronize concerns who are under collective bargaining agreements with the teamsters union. Thank you!
“Teamsters & Chauffeurs Union
Local No. 328” | [
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Kavanagh, J.
Plaintiffs are residents of tbe city of Traverse City, Michigan, and are the owners of a residence on Peninsula drive. At the time the alleged cause of action arose, Elizabeth C. Randall, now deceased, was the owner of a residence south of and adjacent to the plaintiffs’ residence. Mrs. Randall had a 3,000-gallon underground fuel-oil tank which supplied oil for heat and hot water in her residence.
Shortly prior to June 27,1950, having learned that her fuel-oil tank had run dry, Mrs. Randall changed from the Sinclair Refining Company to the defendant Standard Oil Company as a supplier of fuel oil. She instructed the agents of the Standard Oil Company to keep her fuel-oil tank full at all times.
Beginning on June 27, 1950, and continuing until May 2,1952, defendant Standard Oil Company made deliveries of fuel oil to the Randall residence. Said deliveries were made with a truck owned by the defendant William C. Mavety, who was admittedly an agent of the Standard Oil Company. Between June 27, 1950, and May 2, 1952, a total of 26,000 gallons of oil were put in that 3,000-gallon oil tank by the defendants, and paid for without objection by Mrs. Randall despite the fact that in the year 1949 the Randall residence used only 2,648 gallons and in 1950 only 2,890 gallons.
During the month of May, 1952, it was discovered there was a leak in the bottom of the 3,000-gallon fuel-oil tank on the Randall property, and that large quantities of the fuel oil delivered by the defendants had escaped from the tank into the ground where it followed a course to the lower levels of the Randall and Murchie properties.
Plaintiffs instituted this action to recover damages to their property, consisting of the destruction of a cedar hedge and other trees, plants and shrubs in the amount of $2,500.
Plaintiffs alleged that the defendants were guilty of negligence in carelessly, recklessly and negligently delivering excessive amounts of oil to the Randall residence when the defendants knew, or by the exercise of a reasonable degree of care and prudence should have known, that said oil was escaping from said tank, and as a result thereof a dangerous situation was being created and great damage would result therefrom; that as a result of the negligence of the defendants plaintiffs were damaged to the extent of $2,500 to replace the shrubs, plants, trees, and hedges destroyed by said oil; and that the said negligence of said defendants was the proximate cause of the damages.
Defendants deny they had any knowledge as to how much oil was required to heat the residence of Elizabeth Randall and affirmatively aver that they were merely complying with her demands to keep the tank full. Defendants deny that the escaping fuel oil resulted from any negligence on their part.
The case was tried to a jury. A verdict of no cause for action was returned. Plaintiffs made a motion for new trial alleging the following reasons: (1) that the verdict of the jury therein is contrary to law; (2) that the court erred in asking certain questions because they raised the natural implication that the defendants would not be liable unless Mrs. Randall complained of the amount of oil being delivered; (3) that the court erred in first excluding, although subsequently admitting, evidence as to the number of bathrooms and other hot water outlets and the number of persons in the Randall house, the court’s ruling in this respect being prejudicial; (4) that the court erred in excluding testimony as to the amount of fuel oil burned in the hot water heater after its removal from the Randall house and its reinstallation in another house unless similar conditions were shown; (5) that subsequent to the rendition of the verdict the plaintiffs discovered new evidence of a material and probably controlling nature consisting of the testimony of E. A. Baxter and Ross Laming who will testify, in substance, that the hot water heater in the Randall house had a maximum capacity for oil consumption, even with the oil adjustment wide open, of 1 gallon per hour, and with the adjustment as it is set today, and presumably was at that time, a capacity of only 3 pints per hour as compared with a maximum capacity testified to by defendant Mavety of 35 gallons per day; (6) that the verdict of the jury therein is contrary to the great weight of the evidence in that the sole question involved was whether the defendants were guilty of any negligence, and such negligence was clearly established by undisputed evidence showing the delivery of excessive gallons of fuel oil.
The trial court in a written opinion denied the motion for a new trial on all grounds. Plaintiffs appeal and allege that the court erred in refusing to grant the motion for new trial for substantially the same reasons outlined above.
It is admitted by plaintiffs that there was sufficient evidence to go to the jury, and that the instructions of the court as to questions of law were properly given.
This Court during the last few years has quoted Justice Cooley in Detroit & Milwaukee R. Co. v. Van Steinburg, 17 Mich 99, in which Justice Cooley,. quoting from another case, said (p 123):
“ £The fact of negligence is very seldom established. by such direct and positive evidence that it can. be taken from the consideration of the jury and pronounced upon as a matter of law. On the contrary, it is almost always to be deduced as an inference of fact, from several facts and circumstances-disclosed by the testimony, after their connection and relation to the matter in issue have been traced, and. their force and weight considered.’ ”
See, also, Clark v. Shefferly, 346 Mich 332; and Kaminski v. Grand Trunk Western R. Co., 347 Mich 417.
There can be no question that whether the defendants were guilty of negligence was a question for consideration of the jury. The jury found they were not negligent. Therefore, the question before-this Court is whether the trial court erred in not granting the motion for new trial.
The Court has set forth certain rules concerning the review of cases on the ground that the verdict is against the great weight of the evidence. In Van Lierop v. Chesapeake S Ohio R. Co., 335 Mich 702, 713, Justice Sharpe said:
“It is the general rule that the granting of a new trial rests on the sound discretion of the trial court.. It is only in cases where the verdict is manifestly against the clear weight of the evidence that a new-trial will be granted. See Foster v. Rinz, 202 Mich 601; and Wright v. Dwight, 209 Mich 678.”
Justice Chandler, in the case of Finch v. W. R. Roach Co., 299 Mich 703, 713, said:
“ ‘ “We do not substitute our judgment on questions of fact unless they clearly preponderate in the opposite direction.” ’ ”
In Molitor v. Burns, 318 Mich 261, 265, Justice Bushnell said:
“While we might have reached a different conclusion if we had been triers of the facts, we cannot say, .as a matter of law, that the verdict of the jury was contrary to the great weight of the evidence. Mc-Duffie v. Root, 300 Mich 286, 298.”
While it is true that under the allegation that the verdict rendered is against the weight of the evidence we examine the record in order to determine whether the verdict is so contrary to the great weight of the evidence as to disclose an unwarranted finding, or whether the verdict is so plainly a miscarriage of justice as to call for a new trial, see In re McIntyre’s Estate, 160 Mich 117; People v. Spencer, 199 Mich 395,* Patterson v. Thatcher, 273 Mich 597, we only grant a new trial when we conclude from a review of the evidence that the verdict is manifestly against the clear weight of the evidence.
We have examined at length the testimony introduced by both plaintiffs and defendants. The proof with respect to the negligence was not clear cut and ■overwhelming. There were certain inferences that ■could have been drawn from which the jury might have found such negligence on the part of the defendants that was the proximatd cause of plaintiffs’ damages. However, it is within the jury’s province to make the inferences. The jury was able to see the witnesses testify and observe their demeanor on the stand, and consequently was in a better position to determine the question of negligence than an appellate court which has before it only a printed brief and appendices. We do not disturb the trial court’s ¡denial of the motion without very clear reason for doing so. This Court is not the trier of the facts. Fabbro v. Soderstrom, 252 Mich 455; Kosnicki v. Pere Marquette R. Co., 217 Mich 245. The record would not justify substituting our judgment for that of the jury. We find that the verdict was not against the great weight of the evidence. The court did not err in denying the motion for new trial for this reason.
As to the second reason, we do not believe that the trial judge’s questions, which were actually few in number, went beyond his proper function or disturbed the atmosphere or impartiality of the courtroom which the trial judge is charged with maintaining. A trial court has a right to ask questions in his discretion in order to produce fuller and more exact testimony. Simpson v. Burton, 328 Mich 557; Howard v. Burton, 338 Mich 178; Shandor v. Lischer, 349 Mich 556. Certainly, in light of the charge, no prejudicial error was committed by the questions asked by the trial judge. In the event the trial judge may have approached an improper bound it was certainly cured by the following paragraphs of the charge:
“Now, I am anxious in this case, as in others, to avoid any interference with you in your determination of the facts. I personally have no opinion as to what they really are and, if I had, of course, I have no right to communicate that to you. Anything that I have said or have done during the trial of this case, and anything that I may say or do during this charge, from which you might gain any opinion or form any idea as to what you might think my opinion is, is going to be inadvertent and it has been inadvertent on my part, and it must be disregarded by you.
“The facts are your business, as I have said, and exclusively your business. During the trial I did ask some questions of the witnesses. It is important that you do not, from the tone of voice which I may have used in asking tbe questions or from the questions themselves which I asked, form any idea as to what I think about the witnesses. I don’t mean to leave any impression with you as to my opinion of any witness. If I did that, I again say it was inadvertent, and it is your duty to disregard it.”
As to the third error, plaintiffs claim that they had a right to show the number of guests who stayed at the Randall house and how many times the laundry may have been done there, and to sustain objections to questions that were directed on this point, even though the testimony was subsequently admitted, created prejudicial error in that it placed the plaintiffs in a bad light with the jury. It would appear that on this particular subject the court was quite liberal with plaintiffs, particularly in view of the fact that there was no showing that the defendants had any knowledge of the facts plaintiffs were attempting to show. It is a general rule that the conduct of a trial is, to a large extent, under the control of the presiding judge, who has considerable discretion as to the manner of procedure. It is a further general rule that error, to be reversible, must be prejudicial. We do not find any abuse of discretion in the sustaining of the objections, and certainly could not find any prejudicial error in such action which would justify reversal. Therefore, we conclude the trial judge was correct in denial for this reason.
As to the fourth error, plaintiffs admit that the conditions were not entirely similar in that the hot water heater removed from the Randall house was subsequently installed in the witness’ house, which was much smaller in size with a different number of people using the facilities, and since the heater was ¡not in the same mechanical condition that it was in ithe Randall house, in view of the fact at the time of ithe installation in the new place it was completely cleaned and readjusted. In view of the above, a sufficient showing was not made to satisfy the court of the similar conditions and permit the introduction of the testimony. No abuse of discretion can be attributed to the trial court in excluding the evidence since a proper foundation of similarity was not laid.
The remaining ground or reason for granting a new trial involved the question of newly-discovered evidence. A motion for a new trial, upon the ground of newly-discovered evidence, is not regarded with favor. The policy of the law is to require of parties care, diligence, and vigilance in securing and presenting evidence. Canfield v. City of Jackson, 112 Mich 120; Crossman v. Langer, 269 Mich 506.
There is no showing by plaintiffs that they were unable to procure the name of the oil burner. Actually, the oil burner was owned by one of plaintiffs’ own witnesses, Simon Harwood, for a long period prior to the trial. Mr. Harwood testified at length in the trial and the information could have been obtained from him. Mr. Mavety testified:
“Ed Baxter was their service man up there. He handled the Williams Oil-O-Matic, and that is what they had.”
There is no showing that Mr. Baxter was not available at the time of trial. The same thing can be said with respect to Boss Laming who was a service man with Mr. Baxter.
The rule as to newly-discovered evidence is stated in People v. Fedderson, 327 Mich 213, 221, as follows:
“ ‘To entitle one to a new trial upon this ground it should be shown: First, that the evidence, and not merely its materiality, be newly discovered; second, that the evidence be not cumulative merely; third, that it be such as to render a different result probable on the retrial of the cause; fourth, that the party could not with reasonable diligence have discovered and produced it at the trial.’ ”
The granting of a new trial rests largely in the discretion of the trial judge. In this trial plaintiff rested upon the testimony of a single expert witness although with due diligence more experts might have been produced. Counsel relied upon the one witness when several others were available — at least there is no showing that the witnesses plaintiffs now desire to use were not available to them at the time of trial. There was no such diligence shown as to warrant a new trial on account of newly-discovered evidence. Bubenstein v. Purcell, 276 Mich 433. There was no abuse of discretion on the part of the ' trial judge in denying the motion for new trial.
The judgment is affirmed, with costs to defendants.
Dethmers, C. J., and Carr, Kelly, Smith, Black, and Voelker, JJ., concurred.
Edwards, J., did not sit. | [
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Reid, J.
(dissenting). This is an action of trespass on the case to recover damages for personal injuries which plaintiff claims she sustained through the negligence of the driver of a Checker taxicab owned by defendant Maruski and driven with Marnski’s consent. At the conclusion of plaintiff’s case, on motion of the defendant, the trial judge directed a verdict in favor of the defendant of no cause for action on the ground that the plaintiff was guilty of contributory negligence as a matter of law. Plaintiff appeals.
We are required in reviewing the direction of a verdict in this ease to consider the facts in the light most favorable to plaintiff’s claim.
Plaintiff on January 17, 1943, at about 10 o’clock p. m. had been riding on a Detroit city bus on Wyoming street going north. As the bus approached the intersection of Puritan avenue and Wyoming street, the traffic light governing traffic at the intersection was red for traffic on Wyoming. Plaintiff got off the bus on the south side of Puritan at a point where there was no designated bus stop, the driver permitting her to alight from the bus at that point. An automobile had stopped for the red light ahead of the bus but had proceeded partly into the southerly part of the intersection. Plaintiff got out of the front of the bus, which was a short distance from the intersection, and she walked around the front of the bus, between the bus and the car that was stopped ahead of the bus, and proceeded to the southerly crosswalk of Puritan avenue. She testified the light was green in her favor when she got off the bus and that when she started to walk westerly across Wyoming she saw a standing taxicab on the northwest corner of the intersection. She testified that when she arrived half-way across the street as she was walking on the crosswalk, she looked at the traffic light and that the traffic light was green in her favor, and that she saw the cab still standing at the northwest corner at that time. Plaintiff testified:
“Q. All right. So that when you crossed the center line of the street the light was still green in your favor?
“A. It was still green in my favor.”
Plaintiff also testified on cross-examination:
“Q. When you got to the middle of the road did you * * * then go on across the road?
“A. I went right on, of course.
“Q. Then you told this court and this jury that at that point when you saw this car stop you didn’t see it again until you got hit by it after you left the middle of the road?
“A. I walked straight on until I got hit.
“Q. You didn’t see it again from the middle of the road until it hit you?
“A. ■ He was standing when I was in the middle of the road.
“Q. You didn’t see it come toward you after that?
“A. No.
“Q. You didn’t look to see if it was coming toward you, did you?
“A. I wasn’t looking at the taxi. I was looking at the light.”
Plaintiff further testified that she proceeded on westerly until she was struck by defendant’s taxicab when about 3 or 4 feet from the westerly curb of Wyoming street. The police report of the accident was received in evidence without objection. Officer Rickard reading therefrom read, “cab had broken front headlight,” and further, under the caption, “point of impact,” the report contained the words, “right front,” indicating that the impact was with the right front of the Checker cab.
Under the circumstances as above described, it was not contributory negligence as a matter of law for plaintiff to continue going westerly through the westerly half of Wyoming street, while continuing to observe the traffic light, but not looking at the taxicab. Her continuing to look at the traffic light is at least some evidence that she was proceeding with a continued due regard for her safety.
In Moore v. Noorthoek, 280 Mich. 431, 437, we made quotations with approval as follows:
“In Guina v. Harrod, 275 Mich. 393, this Court said:
“ ‘Pedestrians have the right to cross the street at street crossings even on a through street. They are not required to anticipate that drivers will violate ordinances, statutes or rules of safety.’
“In Petersen v. Lundin, 236 Mich. 590, we said:
“ ‘There is no rule of law requiring a pedestrian to rivet his eyes on an approaching automobile. He should look but if, having looked, it appears safe to cross, he may proceed, and his care is not to be determined solely by the fact he was struck and was not at that second looking at the automobile.’ ”
In the more recent case of Werker v. McGrain, 315 Mich. 287, there was testimony to show that before crossing Grand River avenue at the intersection of Oakman boulevard plaintiff observed traffic coming from the east and also the traffic lights. After the light changed to green she started across the street. When she had proceeded for about 15 feet the light turned to amber. Without stopping at the safety zone near the car tracks she hurried across. She did not recall at what point in the street she was struck, her last recollection being that she had reached the middle of the avenue. Judgment for plaintiff was affirmed.
In the case at bar there was testimony to sustain plaintiff’s claim that defendant was guilty of negligence and also testimony from which the jury could conclude that plaintiff was free from contributory negligence. The weight of the evidence on those two proposition's was for the jury. The court was in error in directing a verdict. The judgment appealed from should be set aside and a new trial ordered. Costs to plaintiff.
Bttshnell, C. J., concurred with Reid, J.
North, J.
Notwithstanding Justice Reid’s opinion for reversal, careful review of this record seems to disclose that the trial judge ruled correctly in directing a verdict in favor of defendant on the ground that plaintiff was guilty of contributory negligence as a matter of law.
For the purpose of decision herein defendant’s negligence will be assumed. Plaintiff’s own testimony, which must be construed in its most favorable light to plaintiff, is controlling of the instant case. Her testimony discloses the following: Before she left the bus on which she was a passenger, it and other northbound traffic on Wyoming avenue had been stopped by the red traffic light at Puritan avenue. While the light was still red, plaintiff, by passing between the bus and an automobile which had stopped just north of the bus, reached the middle of Wyoming avenue. At that time the red light was against the Wyoming avenue traffic; and defendant’s taxi, headed south, was standing at the northwest corner of the intersection. Plaintiff made an observation as to that being the situation. She then proceeded with the green light across Wyoming avenue, going west along the line of the crosswalk on the south side of Puritan avenue. She continued to observe the traffic light, but she did not testify that the light had not changed before she was struck by defendant’s vehicle. After making her observation when in the middle of Wyoming avenue, plaintiff did not look again at defendant’s taxi while she continued crossing Wyoming avenue. We quote from her testimony:
“Q. When you got to the middle of the road did you then go on across the road?
“A. I went right on, of course.
“Q. Then you told this court and this jury that at that point when you saw this car stop you didn’t see it again until vou got hit by it after you left the middle of the road?
“A. I walked straight on until I got hit.
“Q. Yon didn’t see it (the taxi) again from the middle of the road until it hit you?
“A. He was standing when I was in the middle of the road.
“Q. You didn’t see it come toward you after that?
“A. No.
“Q. You didn’t look to see if it was coming toward you, did you?
“A. I wasn't looking at the taxi. I was looking at the light.
“Q. Did you look to see if it was coming toward you when yon were crossing the road?
“A. No, I didn’t look to see.”
Since the traffic signal had turned red against the traffic on Wyoming avenue before plaintiff left the bus, in the exercise of ordinary care she was bound to anticipate that the light might change before she could complete crossing Wyoming avenue. But regardless of whether the light did change while plaintiff was in the act of crossing Wyoming avenue, nonetheless even with the traffic light in her favor, she was bound to use such care as an ordinarily careful and prudent person would use in looking for approaching traffic. Under her own testimony plaintiff failed to make such observation, and in that respect she was guilty of negligence which was a proximate cause of her accident. The law in this respect is not unlike the law pertaining to the duty of each of two drivers of automobiles who approach an intersection simultaneously. In Huber v. Paquette, 293 Mich. 370, a headnote reads:
“Provisions of general regulation of automobile traffic contained in city ordinance and State statute, stating that when two vehicles enter an intersection at approximately the same time, the driver of the vehicle on the left shall yield the right of way to the vehicle on the right, grant no fixed rights regardless of existing circumstances as persons are required to exercise reasonable care to save themselves from injury by reason of apparent negligence of another.”
There is testimony that Wyoming avenue was approximately 40 feet wide; and some testimony that plaintiff was struck by the left hand front fender of defendant’s taxi, and some that she was struck by the right front portion of the taxi. It was negligence as a matter of law for plaintiff to have continued crossing from the middle of Wyoming avenue to the point of the accident without making any further observation as to vehicular traffic approaching her from the north. Her failure to exercise such care resulted in her walking into the path of defendant’s approaching vehicle.
In its essential aspects the instant case is much like Long v. Garneau, 319 Mich. 291, 299, where Justice Boyles, speaking for the Court, said: “It is equally obvious that if plaintiff had looked to the right before taking her last few steps south of the center line of Kalamazoo street, she could have seen defendant’s automobile before walking into its side. It was plainly there to be seen.”
While in factual background they are not on all fours, the following cases are indicative of the law which controls decision in the instant case. DeJager v. Vandenberg, 288 Mich. 136; Sloan v. Ambrose, 300 Mich. 188; Malone v. Vining, 313 Mich. 315. In the Malone Case a paragraph of the headnote reads:
“Before crossing a street, a pedestrian must (1)’ make proper observation as to approaching traffic, (2) observe approaching traffic and form a judgment as to its distance away and its speed, (3) continue his observations while crossing the street, and (4) exercise that degree of care and caution which an ordinarily careful and prudent person would exercise under iike circumstances.”
Plaintiff in support of her contention that an issue of fact was presented by the testimony, relies upon Smarinsky v. Markowitz, 265 Mich. 412, wherein decision turned on the issue of subsequent negligence. That issue is not presented herein. The cited case is not in point. In support of her position plaintiff also urges our decisions in Moore v. Noorthoek, 280 Mich. 431; Neesley v. Lord, 297 Mich. 163; and Worker v. McGrain, 315 Mich. 287. But in each of these eases there was testimony tending to sustain the claim that the plaintiff was free from contributory negligence; whereas in the instant case the testimony of plaintiff herself discloses that she was guilty of negligence which contributed to the accident. In the Werker Case we said:
“Also, there was testimony tending to show that she (plaintiff) was free from contributory negligence. * * * The conflicting testimony, together with the physical facts and circumstances, clearly presented a question of fact for the jury’s determination.”
My Brother quotes briefly from Guina v. Harrod, 275 Mich. 393, and Petersen v. Lundin, 236 Mich. 590. In the former case the view of both the plaintiff and the defendant was obstructed1 as each approached the point of accident, and this was a justification for the holding that as to the issue of plaintiff’s contributory negligence an issue of fact was presented.
In the Petersen Case the issue of fact as to contributory negligence of plaintiff’s decedent turned upon this. There was no eye witness to that factual aspect of the case, and, hence, as a matter of law, plaintiff’s decedent was presumed not to have been guilty of contributory negligence. The irrelevancy of that decision to the case at bar is quite obvious.
The trial court ruled correctly in granting defendant’s motion for a directed verdict at the close of plaintiff’s proofs. The judgment entered in the circuit court will be affirmed, with costs to appellee.
Sharpe, Boyles, Dethmers, Butzel, and Carr, JJ., concurred with North, J. | [
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Reid, J.
Plaintiff brought suit for recovery of damages caused to his truck by reason of his truck being struck in the rear end by a truck owned by defendant Weiandt and driven by defendant Ruggles. Upon the conclusion of plaintiff’s proofs, defendants moved for a directed verdict, which motion was granted by the trial judge on the ground that the plaintiff was guilty of contributory negligence as a matter of law. Motion for new trial was denied. Prom the judgment of no cause of action the plaintiff appeals.
In reviewing the directed verdict and the judgment thereon, we must consider the testimony in the light most favorable to the plaintiff.
The following facts appear from the testimony of plaintiff and his witnesses: About 4:30 o’clock in the afternoon of August 26,1946, the plaintiff, operating a 1940 Chevrolet dump truck on an east-and-west road approached from the east an intersection of a north-and-south road. The east-and-west road came to an end at the easterly side of the north-and-south road. The roads were rural county roads of an equal importance. At the- easterly side line of the north-and-south road, the east-and-west road divided into a small Y. A triangular grass plot existed in the central part of the west end of the east- and-west road, thus providing a right turn or left turn for traffic from the east-and-west road going to the north-and-south road. The weather was clear and the roads were dry. Plaintiff had come that way with a load of gravel and on his return had forgotten which way he should turn when he came to the intersection in question. He drove onto the grassy triangle and stopped and looked both north and south along the road. He testified that from the point where he stopped he could see 30.0 feet northerly to the brow of a hill or end of an incline beyond which traffic approaching from the north would not be visible. Plaintiff testified he looked both north and south and saw no traffic, and determining to turn to the left, he proceeded to do so, put his car in second gear, and while he was in the intersection and turning to the left, he looked again to the north and still no traffic was visible. He then continued turning to the left and went along the westerly side of the north- and-south road, on his right hand side of the road, traveling about 8 to 10 miles an hour, and when he had proceeded to a point 150 feet southerly of the intersection his truck was struck in the rear end by the truck of defendant Weiandt driven by defendant Buggies. The impact caused plaintiff’s truck to suddenly swerve to the left, turn nearly around from the direction it had been traveling, and to tip over on its right side and pitch plaintiff out of the truck, throwing him approximately 20 feet away from the truck and causing him to roll along the road. Plaintiff arose, found himself under ’ bewilderment and considered that he had been unconscious. When he regained consciousness he was running back toward his truck, which had burst into flames from the gasoline and oil poured out by reason of the collision. The truck was practically destroyed hy the resulting fire.
Testimony was offered on behalf of plaintiff of a statement made by defendant Buggies, driver of the other truck, in which Buggies said that he did not see plaintiff’s truck until he was almost upon it, and that to avoid hitting plaintiff’s truck he, Buggies, turned to the right side of the highway but that the collision occurred and that afterwards the truck driven by Buggies swerved over to the east bank about 30 feet southerly from the point where plaintiff’s truck landed. The testimony further showed that the defendant’s truck imbedded itself upon a steep bank so deeply that it was necessary to pull it out of the earth in which it had been sunk. The severity of the collision would indicate that defendant Buggies was traveling at a high rate of speed.
The court in directing the verdict for defendants said:
“According to the undisputed facts shown here it would have been impossible if he had looked but what he would have seen this defendant coming up. How did the defendant get there? How did he get there and strike him if he was not coming up the hill there, it would be a mathematical impossibility for the defendant to ever reach him if your theory is true.” (Italics supplied.)
We cannot agree with the above reasoning hy the trial judge. At the time of the collision, plaintiff, traveling at 8 or 10 miles an hour, had proceeded on his right hand side of the road to a point 150 feet southerly from the intersection. It is a matter of common knowledge that ordinary trucks can and often do travel as fast as 32 to 40 or more miles per hour. If, for example, defendant Buggies drove defendant’s truck four times as- fast (i. e., 32 to 40 miles per hour) as plaintiff says he, plaintiff, drove his own truck (8 to 10 miles per hour), defendant’s truck would travel four times as far as plaintiff’s truck traveled in any given period of time. Therefore, under those conditions, while plaintiff’s truck traveled 150 feet south from the intersection, defendant’s truck would travel 600 feet to the point of impact. From the point of impact 600 feet northerly is a point 150 feet northerly of the brow of the hill and beyond the sight of plaintiff when he made the turn and made the second observation at the intersection.
There was testimony in this case from which the jury could have concluded that defendant’s truck was beyond the brow of the hill and out of sight of plaintiff, when plaintiff began to drive southerly from the intersection.
It was the duty of defendant driver to comply with the provisions of 1 Comp. Laws 1929, § 4697, subd. (a), as amended by Act No. 119, Pub. Acts 1933, and Act No. 318, Pub. Acts 1939 (Comp. Laws Supp. 1940, § 4697 [a], Stat. Ann. 1946 Cum. Supp. § 9.1565 [a]), which is as follows:
“(a) Any person driving a vehicle on a highway shall drive the same at a careful and prudent speed not greater than nor less than is reasonable and proper, having due regard to the traffic, surface and width of the highway and of any other condition then existing, and no person shall drive any vehicle upon a highway at a speed greater than will permit him to bring it to a stop within the assured clear distance ahead.”
The jury might have concluded from the testimony that defendant driver failed to comply with the statute. .
It cannot be said that as a matter of law plaintiff was guilty of contributory negligence in determining that he could safely continue on his course turn ing in the intersection and proceeding along the westerly side (and his right side) of the highway, with no traffic in sight.
The court was in error in adjudging that the plaintiff was guilty of contributory negligence as a matter of law and for that reason the judgment appealed from is reversed and a new trial granted.
The case is remanded to the circuit court for further proceedings. Costs to plaintiff.
Bushnell, C. J., and Sharpe, Boyles, North, Dethmers, Butzel, and Carr, JJ., concurred. | [
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Dethmers, J.
The question presented is whether the Emery Management Corporation is subject to a capital stock tax and to an income tax on the income from real estate to which it held legal title. The trial court held that such income was not the income of the corporation, that it had no beneficial interest therein and that, in holding title and acting in relation to the properties, it acted as a mere nominee or agent of the heirs of Willard P. Emery, deceased. From an order disallowing the tax claims, claimant appeals.
Willard P. Emery died leaving a large number of parcels of real estate in the city of Detroit to his heirs, all of whom resided outside of Michigan. Due to the existing depression the properties, returned to the estate in foreclosures and encumbered with mortgages and taxes, could not immediately be liquidated and, in consequence, required renting to produce income to carry them and resell them when market conditions warranted. Leases, contracts, mortgages for refinancing and deeds, when sales were made, required the signatures of all the heirs, about 10 in number, scattered all over the United States. This occasioned considerable inconvenience, to avoid which the corporation was formed and the heirs conveyed all the parcels of real estate to it, as a convenient title holder, to facilitate the execution of leases, mortgages and deeds during the process of liquidating the assets derived from the estate. Although the value of the properties thus held by the corporation was substantial, it had but a nominal capital stock of $1,000, none of which was ever paid in. All the stock (100 shares, $10 par value) was issued to Leslie T. Jones, who had been Emery’s attorney and who continued to act as such for the estate and the corporation, but who had no interest in the estate. Stock was never issued nor assigned to the heirs and no dividends were ever paid thereon. The corporation had no employees and no pay roll. It was run by Jones and one of the heirs. Its officers and directors were dummies, office employees of the attorney, Jones, and their only function in connection with the corporation was the execution of conveyances. Jones was paid only for legal services rendered as an attorney. The corporation employed a management company for the purpose of managing the properties. The heirs were consulted as to sales and leases and it was they rather than the directors of the corporation who determined what would happen to the property and who exercised control thereover. Liquidation was the sole aim and no new properties were acquired by the corporation. Eentals were temporary and properties were sold as rapidly as possible. The heirs received, from time to time, not only their respective shares of income but also of the proceeds from sales of properties. At no time was income or proceeds from sales reinvested or retained by the corporation as its own. The corporation served as a holder of title, to execute conveyances and to distribute the avails from the properties. The individual heirs reported and paid taxes on their respective shares of the income from the properties, regardless of whether distribution thereof had as yet been made to them by the corporation. Upon the death of one of the heirs, his share in the properties was listed as real estate in his estate and estate taxes paid thereon. The corporation accounts were kept as agency, trust or estate accounts, showing net income as estate income distributable to the heirs in their respective proportions. The properties were not carried as assets or liabilities on the corporate books which contain no corporate profit and loss statement or balance sheet. A franchise tax was paid on the nominal capital only and no intangible tax was paid on the land contracts by the corporation. It filed income tax returns each year showing no income and no properties in the balance sheets which are parts of such returns.
The government relies upon Moline Properties, Inc., v. Commissioner of Internal Revenue, 319 U. S. 436 (63 Sup. Ct. 1132, 87 L. Ed. 1499). In that case the supreme court of the United States held that gains from sales by the corporation of its property was income taxable to the corporation and not income taxable to the individual stockholder who was the sole owner of the corporation. The holding was predicated on a finding that, on the facts presented, the corporation was not the alter ego of its sole owner, that his exercise of control over the corporation was negligible inasmuch as he had transferred all but the qualifying shares of stock not held by him to a voting trustee appointed by his creditor, and that the usual incidents of an agency relationship were lacking. In the instant case, however, the heirs did exercise control and determined the leases or sales to be made. The officers and stockholders of the corporation exercised no control beyond that of an agent over the properties to which it held legal title. The corporation’s chief corporate function in relation thereto was to act as agent of the heirs in the execution of conveyances and the collection and distribution to them of the avails. Here the corporation was the alter ego of the heirs and the incidents of an agency relationship were present. The income and proceeds from sales of property belonged to and were treated as the property of the heirs. No one ever claimed or acted on the theory that Jones, the sole stockholder, was the owner of the properties or had any beneficial interest therein.
In point is the case of Worth Steamship Corp. v. Commissioner of Internal Revenue, 7 T. C. 654. In that case three men, as joint venturers, owned a steamship but permitted title thereto to be transferred, under a declaration of trust, to a corporation of which but two of the joint venturers were the sole stockholders. The corporation operated the vessel under an operating agreement by the terms of which the corporation received a fixed fee for its services and the net profits from the operation were distributed to the three joint venturers in proportion to their respective interests in the ship and not according to their respective holdings in the corporation. The court considered the decision in the Moline Case, supra, held it inapplicable, and said, “Where income is derived from property, the basic test for determining who is to bear the tax is that of ownership.” Applying that test the conrt was nnable to conclude that the corporation was the owner of the' income from the vessel. The court stressed the fact that the profits were distributed to the three joint venturers on the basis of their respective interests in the ship and not to the two joint venturers who were the sole stockholders of the corporation on the basis of their holdings therein. In the case at bar ownership of the corporate stock appears to have meant nothing in relation to ownership of the properties or to the right to share in the income therefrom. Such income was distributed to the heirs in proportion to their respective interests in the estate. They at all times treated the properties and avails therefrom as their own. Their actions and the manner in which the properties were handled and the corporation operated are as persuasive of the relationship between the heirs and the corporation as if there had been a written declaration of trust or agency agreement. Had such written instruments been executed, as relied upon in the Worth Case, it is difficult to conceive in what respect the corporation could have been made any less the owner of the beneficial interest in the properties or income therefrom or any more the trustee or agent of the heirs. It follows that the income in question is’not taxable to the corporation.
A capital stock tax is imposed by the revenue act of 1935, as amended, with respect to “doing business.” In determining the meaning of that term in the corporation tax act of 1909, 36 Stat. at L. 11, 112, the court in Flint v. Stone Tracy Co., 220 U. S. 107, 171 (31 Sup. Ct. 342, 55 L. Ed. 389, Ann. Cas. 1912B, 1312), defined “business” as “that which occupies the time, attention and labor of men for the purpose of a livelihood or profit.” In considering that same tax act, the court, in Von Baumbach, Collector of Internal Revenue, v. Sargent Land Co., 242 U. S. 503 (37 Sup. Ct. 201, 61 L. Ed. 460), emphasized the distinction-“between a corporation which has reduced its activities to the owning and holding of property and the distribution of its avails, and doing only the acts necessary to continue that status, and one which is still active and is maintaining its organization for the purpose of continued efforts in the pursuit of profit and gain, and such activities as are essential to those purposes.” The former type of corporation was held not subject to that tax in Zonne v. Minneapolis Syndicate, 220 U. S. 187 (31 Sup. Ct. 361, 55 L. Ed. 428); McCoach, Collector of Internal Revenue, v. Railroad Co., 228 U. S. 295 (33 Sup. Ct. 419, 57 L. Ed. 842); United States v. Emery, Bird, Thayer Realty Co., 237 U. S. 28 (35 Sup. Ct. 499, 59 L. Ed. 825). The same distinction Avas approved in United States v. Peabody Co. (C. C. A.), 104 Fed. (2d) 267, in passing on what constitutes “doing business” so as to incur liability under statute imposing excise tax on capital stock (Revenue Act 1934, § 701 [a], [c] [3], 48 Stat. at L. 769 [26 USCA, Int. Rev. Acts, pp. 787, 788]). Applying that distinction here, it must be held that the corporation was not “doing business” within the meaning of the act in question and is, therefore, not subject to a capital stock tax.
The order disallowing the claims of the United States for income and capital stock taxes is affirmed, without costs.
Bushnell, C. J., and Sharpe, Boyles, Reid, North, Butzel, and Carr, JJ., concurred. | [
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Kelly, J.
On June 23, 1955, plaintiff, a minor, 17 years of age, purchased from the Funston Chevrolet Company an automobile for $2,773.37, paying therefor $120 cash, trading a used automobile for the agreed value of $623.37, and executing, to secure the balance of the purchase price, a purchase money chattel mortgage and note for $2,284.80, payable in 30 monthly instalments of $76.16 each. Said purchase money mortgage and note were indorsed and ■assigned to the defendant, National Bank of Detroit, on June 23, 1955, for value and without knowledge of plaintiff’s minority.
Plaintiff made 5 payments upon said note and mortgage, paying defendant a total of $380.80. On January 8,1956, plaintiff failed to make the required mortgage payment and was thereafter in default. On February 24, 1956, defendant repossessed said automobile and proceeded to foreclosure sale on March 15, 1956, at which time it was bid in and sold for $1,200.
Plaintiff’s replevin action in the common pleas court for the city of Detroit, commenced on March 26, 1956, resulted in judgment for defendant. On appeal the circuit court reversed the judgment of the common pleas court and entered judgment for plaintiff for the value of the automobile in the sum of $1,250.
The trial court relied upon the early decision of this Court in Corey v. Burton (1875), 32 Mich 30, 32. In that decision Justice Cooley stated:
“In this case, the lender of the money sought to enforce his mortgage by seizing the property while the mortgagor was still under age. The mortgagor replevied it, and the court held in effect that the mortgagee in the replevin suit was entitled to judgment for the amount which the mortgage assumed to secure. Thus the contract which confessedly was at least voidable has been enforced against this infant, though she neither had affirmed it, nor as yet reached the age when affirmance by her was practicable. This was erroneous, and the judgment must be reversed with costs, and a new trial ordered.”
Preceding the Corey Case by only a few months was our decision in Dunton v. Brown, 31 Mich 182, stating that neither an infant nor his guardian has authority, while the infancy continues, to determine whether a minor’s voidable contract shall be affirmed or annulled, as this is a matter for his own decision when he arrives at maturity.
The 1875 Corey and Dunton decisions, supra, have not been reversed or repudiated in the following 80 years, as is evidenced by our 1956 decision in Boynton v. Wedgwood, 346 Mich 393, wherein we held that upon attaining majority a minor may affirm or dis-affirm his contract and even recover the amount he paid therefor, even though he profited, during minority, by renting out the property he obtained during minority.
We are not dealing in this appeal on a minor’s action to disaffirm, but on a minor’s right to resist, during minority, enforcement of the contract.
To grant appellant’s prayer of relief that “the judgment of the common pleas court for the city of Detroit dismissing plaintiff’s action be affirmed,' and that the judgment of the circuit court for the county of Wayne in favor of the plaintiff in the sum of $1,250, with costs, be reversed and set aside with costs” would be a decision by this Court that appellant had the same rights against a minor as it would have against an adult.
Appellant stresses that we must not change a shield into a sword, and in answer to that we quote from our 1956 decision (Boynton v. Wedgwood, supra) wherein we stated (p 395):
“Plaintiff relies on Reynolds v. Garber-Buick Co., 183 Mich 157 (LRA1915C, 362); and Lawrence v. Baxter, 275 Mich 587. In Reynolds, plaintiff, while a minor, purchased an automobile from defendant and used it for some time. Upon attaining majority he disaffirmed, returned the automobile, sued for and recovered the purchase price. This Court held that plaintiff was entitled to recovery of the amount paid without diminution for depreciation in value of the automobile when returned nor for the value of its use by the minor. In Lawrence, it was held that the benefit which a minor had enjoyed from the occupancy by him and his parents of real property he had purchased was not as to him a necessary, because the father and not the minor was legally obligated to furnish the latter with a home, and that, therefore, the mentioned benefit could not be set off by defendant seller against the plaintiff’s right to recover the full amount of the purchase price paid by him while a minor. The holdings in those 2 cases apply here.”
The legislature did not express disapproval to the 1875 Corey and Dunton decisions, supra. The legislature for the first time expressed itself on this question in enacting PA 1941, No 123 (CL 1948, § 691.531 [Stat Ann 1957 Cum Supp § 27.683(1)]), entitled:
“An act relating to the defenses of minors in certain suits brought against them and of the disaffirmance of their contracts.”
Section 1 of that act reads:
‘Whenever, in any suit at law brought for the recovery of goods, wares, merchandise or chattels, or for the value thereof, or for the balance remaining due thereon, or upon any note or promise for the recovery of a loan of money, against any person who shall plead as a defense to such suit that he was under age of 21 years at the time of purchase or loan thereof, such defense shall not be available if it shall appear upon the trial of the suit that the person against whom such action is brought willfully represented his age to be over 21 years to the seller or his assignee of such goods, wares, merchandise or chattels for the purpose of securing the same, or securing the loan of money, knowing the same to be false and that the seller had no knowledge of the actual age of such minor; nor shall such person upon attaining majority be permitted to disaffirm the contract of purchase or loan thereof, nor recover any money paid thereon: Provided, That such representation shall have been made in writing in a separate instrument containing only the statement of age, date of signing and the signature, or by admission in open court.”
In this appeal we are dealing with a contract entered into between a sales agency and a 17-year-old boy purchasing a $2,700 automobile. No justification for this type of sale is offered by appellant.
No implication is made that the youth deceived by misrepresenting his age. The bank which bought the papers is chargeable with the actions of those who negotiated the sale. The sales company made no effort to protect itself under the statute above referred to. Because of the 1941 enactment we can see no reason to overrule the decisions of Corey and Dunton, supra, and the several other decisions following.
Affirmed. Costs to appellee.
Dethmers, C. J., and Carr, Smith, Black, Edwards, Yoelker, and Kavanagh, JJ., concurred. | [
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Kelly, J.
The motion to quash of defendant B. A. Sehiff & Associates, Inc., a Florida corporation (hereinafter referred to as defendant Sehiff), was denied by the Wayne county circuit court and defendant Schiff’s appeal to the Court of Appeals was transferred to this Court.
Appellant claims: (1) that it was not subject to the jurisdiction of the Wayne county circuit court under the “long arm statute” of the State of Michigan; and (2) that plaintiffs did not obtain jurisdiction under GCR 1963, 105.4, by service of a copy of the summons and second amended complaint (June 5, 1963) by registered mail upon defendant Sehiff in Florida (return receipt dated June 10, 1963) and, also, on the Michigan Corporation & Securities Commission (return receipt dated June 7, 1963).
Plaintiffs’ second amended complaint (action No. 1) alleged that defendant Sehiff manufactured at its Florida place of business an amusement park ride known as the “Wild Mouse,” and installed said ride at Edgewater Amusement Park, Detroit, Michigan; that the defendant Edgewater Amusement Park is a Michigan profit corporation and operated, within the county of Wayne, Edgewater Park; that defendant Stahl Enterprises, Inc., a Michigan corporation, owned and operated Edgewater Amusement Park, and that Leo Pike, another defendant, owned and operated the ride that was called the “Wild Mouse”; that defendant Schiff owed a duty to the plaintiffs to manufacture, design, and construct the amusement device in a careful and workmanlike manner so that it would operate correctly, and that said defendant breached its duty in this regard; that all above named defendants jointly and severally owned and operated the “Wild Mouse,” which on June 18, 1960, was operated in a negligent manner, resulting in personal injuries to plaintiff Margaret Jo Delle Woods, who, for a consideration, rode the “Wild Mouse.”
Defendant-appellant Schiff appeared specially for the purpose of filing its motion to quash service and claimed in the motion that it was not amenable to service under the aforementioned court rule inasmuch as it had never at any time had any employees in the State of Michigan, did business in Michigan, or transacted any business in Michigan.
An affidavit attached to the motion set forth that defendant Schiff manufactured and sold the “Wild Mouse” to a Roger Haney in the State of New Jersey for installation at Haslett, Michigan; that said Roger Haney sold said amusement ride to Harry Stahl, individually, and in July 1959, and subsequently as an accommodation to Roger Haney who had purchased said ride on installment contract, B. A. Schiff & Associates, Inc., refinanced the ride at the Coral Gables First National Bank in Coral Gables, Florida, to assist Harry Stahl to acquire same. The affidavit further set forth that defendant Schiff never made a sale to Stahl Enterprises, Inc., one of the defendants herein, or Edgewater Amuse ment Park, or Leo Pike, the other two defendants, and had nothing to do with the installation and did not assist in the installation of the “Wild Mouse” at the place where the minor plaintiff contends she was injured.
After the above mentioned June 1963 service, plaintiffs served a new summons (in action No. 1) dated March 13, 1964, under the “long arm statute” and 1963 General Court Rules, by the sheriff of Dade county, Florida, upon defendant Schiff. This second summons was not a duplicate of the previous June 5, 1963, summons, and defendant Schiff again filed a motion to quash on the ground that it had no minimal contacts in Michigan and, therefore, was not subject to Michigan jurisdiction.
Before decision was made by the trial court (action No 1), the minor plaintiff, who had attained her majority, filed her individual action (action No 2) against defendant Schiff solely, and personal service was made on said defendant in Florida on August 29, 1964.
Question No. 1.
“Is the defendant, B. A. Schiff & Associates, Inc., a Florida corporation, subject to the jurisdiction of the Wayne county circuit court, in this action, under the ‘long arm statute’ of the State of Michigan?”
This “long arm statute” (CLS 1961, § 600.715 [Stat Ann 1962 Rev § 27A.715]) was given effect as of January 1, 1963, and reads in part:
“The existence of any of the following relationships between a corporation or its agent and the state shall constitute a sufficient basis of jurisdiction to enable the courts of record of this state to exercise limited personal jurisdiction over such corporation and to enable such courts to render personal judg ments against such corporation arising out of the act or acts which create any of the following relationships :
“(1) The transaction of any business within the state.
“(2) The doing or causing any act to be done, or consequences to occur, in the state resulting in an action for tort.”
We quote with approval from the appellant’s brief:
“The application of a State statute permitting service on a foreign corporation is limited by constitutional requirements of due process as interpreted by the United States Supreme Court. * * * The test of due process, in ultimate simplicity, is: how far can a State go in extending its jurisdiction over a foreign corporation?
“To reach this determination, courts have considered the evolution of in personam jurisdiction on nonresidents from Pennoyer v. Neff (1877), 95 US 714 (24 L Ed 565), through the leading cases of International Shoe Co. v. Washington (1945), 326 US 310 (66 S Ct 154, 90 L Ed 95, 161 ALR 1057); McGee v. International Life Ins. Co. (1957), 355 US 220 (78 S Ct 199, 2 L Ed 2d 223); and Hanson v. Denckla (1958), 357 US 235 (78 S Ct 1228, 2 L Ed 2d 1283).”
Pennoyer v. Neff (1877), supra, declared that a State did not have jurisdiction over a nonresident defendant unless service of process was personally served npon the defendant within the forum State.
Sixty-eight years later, the United States Supreme Court established a new jurisdictional test over a nonresident defendant in International Shoe Co. v. Washington (1945), supra, and in this decision abandoned the “consent” and “presence” theories of earlier decisions and adopted the new test — -Did the defendant have such “minimum contacts” with plain tiff’s State that maintenance of the action would not offend “traditional notions of fair play and substantial justice?”
In McGee v. International Life Ins. Co. (1957), supra, the Supreme Court approved the previous International Shoe Company jurisdictional test and explained the expansion of the permissible scope of State jurisdiction by calling attention to the fundamental transformation of our national economy over the years and the expansion of modern transportation and communication, thus making it much less burdensome for the nonresident defendant to resist a plaintiff’s claims.
The final approval of the International Shoe Company decision is found in Hanson v. Denckla (1958), supra, and appellant quotes therefrom as follows:
“It is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.” (p 253)
“But it is a mistake to assume that this trend heralds the eventual demise of all restrictions on the personal jurisdiction of State courts. * * * Those restrictions are more than a guarantee of immunity from inconvenient or distant litigation. They are a consequence of territorial limitations on the power of the respective States. However minimal the burden of defending in a foreign tribunal, a defendant may not be called upon to do so unless he has had the ‘minimal contacts’ with that State that are a prerequisite to its exercise of power over him.” (P 251)
Appellant, after stating that “International Shoe, supra, gives no specific pronouncement of what is meant by ‘minimum contacts,’ ” cited Federal district court and State court decisions to support its contention that minimum contacts mean something more than one contact and under the heading “Conclusion” (Question 1) states:
“In the principal cases, plaintiffs have offered no proofs to counter the affidavit offered by defendant B. A. Schiff to the effect that it has had no contact with Michigan other than the one isolated sale of the ‘Wild Mouse’ to a person other than the owner of the Wild Mouse’ on the date of the alleged injury; that the B. A. Schiff company had nothing to do with the installation of the device at Edgewater Park; and that the sale of the device would be the only connection of the company with Michigan, which sale occurred in 1958, approximately two years before the alleged incident for which damages are claimed. * * *
“The only evidence before this Court, or the trial court, indicates a lack of any but a bare, isolated contact between B. A. Schiff and Michigan some six years before the ‘long arm’ statute was given existence.”
Appellee calls attention to the United States Supreme Court case of McGee v. International Life Ins. Co., supra, and State supreme court cases holding that a single transaction is sufficient to meet the “minimum contacts” test, and contends that defendant Schiff’s refinancing of the ride when Haney sold to Harry Stahl shows defendant’s systematic and continuous contact with the State of Michigan from the time defendant first installed the ride in Michigan up to the time plaintiff Margaret Jo Delle Woods was injured.
In the McGee Case, the United States Supreme Court considered a judgment awarded by a California State court, service of process being made by registered mail on defendant, a Texas corporation, that did not have an office in California, and whose sole business activity in California was confined to the issuing by mail of an insurance policy to plain tiff’s son. The United States Supreme Court upheld the California court’s decision that the “minimum contact” test had been met, and stated (p 223):
“Turning to this case we think it apparent that the due process clause did not preclude the California court from entering a judgment binding on respondent. It is sufficient for purposes of due process that the suit was based on a contract which had substantial connection with that State. [Citing cases.] The contract was delivered in California, the premiums were mailed from there and the insured was a resident of that State when he died. It cannot be denied that California had a manifest interest in providing effective means of redress for its residents when their insurers refuse to pay claims. These residents would be at a severe disadvantage if they were forced to follow the insurance company to a distant State in order to hold it legally accountable. When claims were small or moderate individual claimants frequently could not afford the cost of bringing an action in a foreign forum — thus in effect making the company judgment proof. Often the crucial witnesses — as here on the company’s defense of suicide — will be found in the insured’s locality.”
A similar question was recently considered by the Illinois supreme court. In its decision, the court set forth the facts as follows (p 434):
“The suit was brought against the Titan Valve Manufacturing Company and others, on the ground that a certain water heater had exploded and injured the plaintiff. The complaint charges, inter alia, that the Titan company, a foreign corporation, had negligently constructed the safety valve; and that the injuries were suffered as a proximate result thereof. Summons issued and was duly served on Titan’s registered agent in Cleveland, Ohio. The corporation appeared specially, filing a motion to quash on the ground that it had not committed a tortious act in Illinois. Its affidavit stated that it does no business here; that it has no agent physically present in Illinois; and that it sells the completed valves to defendant, American Radiator & Standard Sanitary Corporation, outside Illinois.”
We quote with approval excerpts from the Illinois supreme court’s reversal of the trial court’s grant of Titan’s motion to quash (pp 440-443):
“The trend in defining due process of law is away from the emphasis on territorial limitations and toward emphasis on providing adequate notice and opportunity to be heard: from the court with immediate power over the defendant, toward the court in which both parties can most conveniently settle their dispute. * * *
“As a general proposition, if a corporation elects to sell its products for ultimate use in another State, it is not unjust to hold it answerable there for any damage caused by defects in those products. Advanced means of distribution and other commercial activity have made possible these modern methods of doing business, and have largely effaced the economic significance of State lines. By the same token, today’s facilities for transportation and communication have removed much of the difficulty and inconvenience formerly encountered in defending lawsuits brought in other States. * * *
“The principles of due process relevant to the issue in this case support jurisdiction in the court where both parties can most conveniently settle their dispute. The facts show that the plaintiff, an Illinois resident, was injured in Illinois. The law of Illinois will govern the substantive questions, and witnesses on the issues of injury, damages and other elements relating to the occurrence are most likely to be found here, Under such circumstances the courts of the place of injury usually provide the most convenient forum for trial. (See Watson v. Employers Liability Assurance Corp. [1954], 348 US 66, 72 [75 S Ct 166, 99 L Ed 74].)”
The question of “minimal contact” depends upon the particular facts in each case. The record presented in this appeal satisfies the Michigan statutory requirement that defendant Schiff has transacted business within the State, causing an act to be done or a consequence to occur resulting in the present actions for tort.
Our answer to Question No. 1: Defendant B. A. Schiff & Associates, Inc., a Florida corporation, is subject to the jurisdiction of the Wayne county circuit court in these actions under the “long arm statute” of the State of Michigan (CLS 1961, § 600.715 [Stat Ann 1962 Rev § 27A.715]).
Question No. 2.
“Was service in Florida upon defendant B. A. Schiff & Associates, Inc., a Florida corporation, by registered mail in suit numbered 1867 [action No 1] (Service No 1) proper to obtain jurisdiction under Michigan Court Rule (1963) 105.4?”
In regard to Question No. 2, appellee calls attention that in the original action service was made personally upon defendant Schiff in Florida, in addition to service by registered mail.
If we hold under Question No. 1 that the Wayne county circuit court had jurisdiction, appellant’s issue is not as to the service made personally upon defendant Schiff in either action No. 1 (against defendant Schiff and other named defendants) or action No. 2 (against defendant Schiff solely). Appellant emphasizes this point in its brief under the heading “Conclusion” (Question 2) as follows:
“The importance of this motion [to quash service] is great. Assuming that, for some reason, this defendant is kept in the principal action in this State, it would have the defense of the statute of limitations as against any adult plaintiffs, since a second service [personal service] was not properly made on B. A. Schiff until after three years from the date of the alleged injury.”
GCR 1963, 105.4 and CLS 1961, § 600.1920 (Stat Ann 1962 Rev § 27A.1920) are identical, and read in part as follows:
“Service of process upon a corporation, whether domestic or foreign, may be made by m * *
“(4) mailing a summons and a copy of the complaint by registered mail to the corporation or an appropriate corporation officer and to the Michigan corporation and securities commission if:
“(a) the corporation has failed to appoint and maintain a resident agent or to file a certificate of such appointment as by law required; or
“(b) the corporation has failed to keep up its organization by the appointment of officers or otherwise, or the term of whose existence has expired by limitation.”
In the title to the revised judicature act of 1961 (PA 1961, No 236), the legislature provided that it was:
“An act to revise and consolidate the statutes relating to the organization and jurisdiction of the courts of this state,”
and in the second section of that act, under the heading “Construction of act,” it is said:
“This act is remedial in character, and shall be liberally construed to effectuate the intents and purposes thereof.” CLS 1961, § 600.102 (Stat Ann 1962 Rev § 27A.102).
This Court, in repeating CLS 1961, § 600.1920 verbatim in G-CB, 1963, 105.4, gave no indication that there was any intention of disagreeing with the legislative mandate of liberal construction.
Neither the court rule nor the statute limits service of summons and complaint by registered mail to corporations that are required to appoint a resident agent, and we do not agree with appellant that, because in Dratz v. Occidental Hotel Company (1949), 325 Mich 699, we held that simple and discontinuous acts or contracts do not constitute carrying on a business within the meaning of the statute there involved, GCB 1963, 105.4 applies only to a corporation which is required to, but has failed to appoint a resident agent or obtain a certificate to do business.
Our answer to Question No. 2 is that the service in Florida upon defendant B. A. Schiff & Associates, Inc., a Florida corporation, by registered mail in action No. 1 (service No. 1) was proper to obtain jurisdiction under GCB 1963, 105.4.
Affirmed. Costs to appellees.
T. E. Brennan, C. J., and Dethmers, Black, T. M. Kavanagh, and Adams, JJ., concurred.
T. G. Kavanagh, J., took no part in the decision of this case.
CLS 1961, § 600.715 (Stat Ann 1962 Rev § 27A.715).
Gray v. American Radiator and Standard Sanitary Corporation (3961), 23 Ill 21 432 (176 NE24 761).
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O’Hara, J.
This appeal arises out of eminent domain proceedings instituted by the plaintiff board of trustees of Western Michigan university against defendants Leon Slavin and Euth Slavin. '
The defendants are owners of certain real property within the township of Kalamazoo, Michigan. It is adjacent to the campus of plaintiff university.
On November 20, 1964, plaintiff adopted a resolution reciting a need for additional dormitories and reciting that it did not own land which could be utilized for dormitory construction. The resolution concluded that it was necessary for plaintiff to take a portion of defendants’ land which consists of 38.09 acres.
On November 23, 1964, plaintiff filed a petition for condemnation in the circuit court for the county of Kalamazoo under authority of PA 1911, No 149. Trial in this cause commenced October 26, 1965 and continued for 14-1/2 days. A major issue involving considerable time in discovery proceedings and during the trial of this cause, was the question of necessity. In view of our decision upon the question of admissibility of certain evidence, we do not deem it appropriate to pass on this question judicially. We- do regard it appropriate to remark that under the sweeping provisions of the statute which accords' to ■ “any public corporation or state agency” the power of eminent domain the question of necessity is and should be much more than pro forma. The..simple declaration of necessity by the empowered agency does not establish that necessity.
It remains established law under the Constitution of 1963 as it did under its predecessor Constitution of 1908:
“The words ‘necessity for using such property’ in nur Constitution does not mean an indefinite, remote, or speculative future necessity, but means a necessity now existing or to exist in the near future.”
The legal principle which is deeisionally critical has thus been stated by our Court :
“It is a recognized rule of this Court in condemnation cases that strict rules as to the admissibility of testimony are not always enforced, that ordiparily .this Court will not set aside the award because of the introduction of improper evidence or improper rulings of a trial judge where one attends, hut that where prejudicial, inadmissible testimony was received and acted upon by the jury, or where competent testimony going to the merits was excluded which if admitted would have changed the result, * * * this Court upon appeal will reverse.”
Regrettably, we conclude that competent testimony going,to the merits was excluded in.this case, We say “regrettably” because the result of 14-1/2 days of trial should not be lightly disturbed. Whether the, testimony, if admitted, would have changed the result, we cannot say. The weight and credibility to be accorded that testimony and the excluded exhibit were for the jury. However, the excluded testimony and exhibit were the-basic support of the defendants’ whole theory of fair market value of the land under condemnation. We hold it should have been admitted.
The proposed exhibit designated at trial A-4 was alleged to be an agreement for the sale of the involved property for $620,000. Defendants contend vigorously it was a contract of sale, subject, only to the outcome of the condemnation proceedings and a number of “ordinary” conditions appearing in such contracts. The pendency of the condemnation proceedings is specifically noted in the agreement.' Plaintiff contrariwise contends with equal vigor that it was at best a conditional offer of sale, contingent upon the outcome of soil tests,'financing, and zoning approval.
The circuit judge required the examination relating to the document to be made on a separate record after excusing the jury. At the conclusion of the examination he excluded it. We quote from his ruling:
“Exhibit A-4 has just been examined by the court, and as I have indicated, I believe, may be considered as being before this court but not before this jury, the court not having ruled on the admissibility of the exhibit so far as the jury is concerned. * * *
“Before the court at this time for determination is the admissibility of exhibit A-4. Exhibit A-4 is a document entitled ‘Sales Agreement’.
“Apparently, it was entered into between the defendants in this action and a corporation known as Scholz Homes, Inc., on October 22, 1965.
“The trial of this case commenced on Octobér 26, 1965, and we have been engaged in the trial of this case every' day commencing with October 26, with the exception of a holiday, armistice day, and .Saturdays and Sundays, except that we did have a trial session on last Saturday .morning from 9:30 to about 12:15. ' -
“Counsel for the plaintiff stated in his argument that the proposed exhibit was not submitted to him until the day before the trial, which would be the 25th; and as a matter of practicality, considering it might have been impossible for counsel for the defendants to submit it to him at any earlier date, the agreement, if arrived at on its date,’ was entered into on a Friday, and according to Mr. Starr was submitted to him on the following Monday.
“Obviously, counsel for the plaintiff have not been in iany position to prepare any evidence to counteract the evidentiary weight of this exhibit if it is admitted.
“This has been a strenuous trial, a time-consuming-trial, and I am certain that the time of all counsel on both sides of the table has been completely taken up by their conduct of the trial in the courtroom and the work they necessarily had to do between court sessions.
“These remarks that I have just made go to the contention of Mr. Starr that the rules laid down by this court in a pretrial memorandum have not been followed, and that would appear to be the case. However, in denying the admissibility of this piece of' evidence, this court is relying upon the document itself.
“It is, on its face, an agreement 'between Mr. and Mrs. Slavin and the corporation which is conditional upon the happening of certain events. Now, it is all very well to say that one or more of these are just matters that appear in all contracts, that they are the usual and customary provisions. That may be true and it undoubtedly is true, but still it is a condition and provision of the contract that can be relied upon by either party.
“Here we have a purported sales agreement entered on almost the very eve of trial by the defendants and an Ohio corporation. All that we know about the Ohio corporation is what we heard from its vice-president in charge of acquisition of properties, who testified this morning. His testimony was in no way documented. He did not have any of the records — or let me say he did -not produce any of the records of the corporation. He referred in his testimony to a bank statement of the corporation of September of this year showing that at that time the bank had several million dollars in its account. This might mean something or nothing now, as of today.
“Actually, this court knows practically nothing about this corporation and knows nothing about this corporation except what we heard from the witness this morning. There has not been a showing which satisfies this court of the bona fideness of the alleged agreement.
“Furthermore, the agreement, on its face, is a conditional agreement. The obligation of the purchaser is conditioned upon financing and upon 1 or 2 other matters. It is not such an offer or such a contract of purchase as in this court’s opinion could properly be considered by the jury or should properly be considered by the jury in its determination of the fair cash value of the Slavin land. The objection to the exhibit is sustained. The exhibit will not reach the jury.”
By ease precedent we have recognized the right of the judge supervising condemnation proceedings to rule on the admissibility of an offer to purchase. As late as 1965, after the effective date of the Con stitution of 1963 we held:
“We cannot say that the court was in error in finding that, thus, the owners were left without such showing of bona fides of the offer as to make it admissible.” (Emphasis supplied.)
It is to be noted that in Ellis there was no question "that the instrument was a written offer. Our Court, in Ellis, quoted at length from City of Kalamazoo v. Balkema (1930), 252 Mich 308. Quoting Balkema, we said in Ellis (pp 411, 412):
“ ‘In order to establish market value by an offer, one must at least show that there has been a bona fide offer made for the property. If this were not the rule, offers might be secured in an amount far in excess of the real value of the property in question. Witnesses testifying to what they would give for property would be secure in the knowledge and belief that they would not be bound to carry out the offer. To admit such testimony might open the door to perjury.
“‘In the case of Perkins v. People (1873), 27 Mich 386, Mr. Justice Coolet, speaking for the Court, said (pp 388, 389):
“ ‘ “What land has sold for may sometimes, and under some circumstances, be very satisfactory evidence of value; but testimony as to what has been offered for it, is so much open to suspicion and so inviting to fraud, unless the offer was at a judicial or other public sale, or under other circumstances furnishing like security of good faith in making it, that it must generally be very untrustworthy and unreliable.”’” (Emphasis supplied.)
The law as to the admissibility of an offer to purchase is settled by Balkema and Ellis. We point out, however, that part of the ratio decidendi of Balhema and Ellis is to he found in the following sentence:
“ ‘Witnesses testifying to what they would give for property would he secure in the knowledge and belief that they would not be bound to carry out the offer.’” Ellis, supra, p 411 (quoting Balkema).
Such is not the situation with the case at bar. An offer is a unilateral declaration of intention. A sales agreement is by its nature bilateral, binding upon both parties, enforceable, if need be, by either. The instrument here under consideration recites:
“Seller agrees to sell to purchaser and purchaser agrees to purchase from seller, under the terms and conditions hereinafter contained the following described land * * * .”
•We do not find that the settled law as to an offer is controlling as to a bilateral purchase and sale agreement. We cannot escape the conclusion that the able circuit judge in his commendable zeal to exclude from jury consideration what he considered inadmissible testimony and an inadmissible exhibit, in legal effect passed upon the weight to be accorded to the exhibit and determined the credibility of the defendants’ witness. As previously noted in his ruling he said:
“Here we have a purported sales agreement entered into on almost the very eve of trial. * * * All that we know about the Ohio corporation is what we heard from its vice-president. * * * He referred * * * to a bank statement * * * showing that at that time the bank [corporation] had several million dollars in its account. This might mean something or nothing now, as of today.
“Actually, this court knows practically nothing about this corporation * * * except what we heard from the witness this morning.” (Emphasis supplied.)
The witness was the vice-president of the company. He executed the agreement. He testified that the company stood willing to purchase the property that day if permitted. He testified that financing was available, that the conditions of favorable soil reports was a mere formality and a standard clause in purchase agreements. When all of the foregoing testimony did not reach the jury, and the purchase and sale figure of $620,000 was excluded, we are constrained to conclude that the judge ruled not upon the bona fides of the transaction, but upon the bona fides of the parties to the transaction. This under our settled law he is not permitted to do.
“The trial judge very carefully charged the jury, we think, that the good faith of the parties to the transaction was not an issue, but that the value fixed by the transaction should be considered by the jury in making their award if the transaction was in all regards a bona fide transaction.” (Emphasis supplied.) City of Detroit v. Fidelity Realty Co., supra, pp 455, 456.
We are unable to find proof of lack of the bona fides of the transaction separate from the inescapable conclusion that the trial judge was not convinced that the parties did not act in good faith. If, as he previously observed, “counsel for the plaintiff have not been in any position * * * to counteract the evidentiary weight of this exhibit if it is admitted” we think it was his duty instanter to adjourn the proceedings to learn the nature of rebuttal evidence if plaintiff desired to prepare any, and, if necessary, to give plaintiff time to prepare it. Its relevancy can hardly be doubted, for it was offered in support of the testimony of the witness Bloom that his company stood ready to buy the property at the $620,000 price. It was material because it went to the very issue in dispute. The witness Bloom was not found incompetent to testify in relation to it.
For the reasons herein set forth, the award of the jury is vacated. Costs to the defendants.
Dethmers, C. J., and Kelly, Black, Souris, and T. E. Brennan, JJ., concurred with O’Hara, J.
CL 1948, § 213.21 et seq., as amended by PA 1958, No 71 (Stat Ann 1958 Rev § 8.11 et seq.).
Grand Rapids Board of Education v. Baczewski (1954), 340 Mich 265, 269.
City of Detroit v. Fidelity Realty Co. (1921), 213 Mich 448, 454.
In this observation the learned trial judge was not entirely correct; the option is the purchaser’s only. The proviso reads:
“It is further understood that purchaser shall he under no further obligation hereunder in the event that soil tests, to be made at purchaser’s expense, indicate unfavorable conditions in purchaser’s opinion for the construction of apartments.” (Emphasis supplied.)
Article 10, § 2: “Private property shall not be taken for public use without just compensation therefor being first made or secured in a manner prescribed by law. Compensation shall be determined in proceedings in a court of record.”
City of Grand Rapids v. Ellis (1965), 375 Mich 406, 412,
Cases from other jurisdictions recognize the difference between an offer of purchase and a contract therefor. See: Brush Hill Development, Inc., v. Commonwealth (1959), 338 Mass 359 (155 NE2d 170); Wolf v. Commonwealth (CA 1, 1965), 341 F2d 945; Virgin Islands Housing Authority v. 15.5521 Acres of Land in St. Croix, Virgin Islands (DC VI, 1964), 230 F Supp 845; State Road Commission of Maryland v. Wyvill (1966), 244 Md 163 (223 A2d 146); State v. Clevenger (1964, Tex), 384 SW2d 207; People v. Kawamoto (1964), 230 Cal App 2d 18 (40 Cal Rptr 685); City of East Orange v. Crawford (1963), 78 NJ Super 239 (188 A2d 219). | [
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Williams, J.
The docket entries in this case, extending to seven pages over a period of nearly seven years are mute testimony to the fact that the best rules of procedure without time for judicial superintendence of the docket, supporting court manpower and cooperation from the Bar can fail to assure a fair and speedy trial. This case is just one of many reasons why support for a strengthened and, if need be, reformed administration of justice is essential to good government and the preservation of liberty, security and our democratic way of life.
On October 17, 1963 plaintiff-appellant began an action for wrongful death against defendant hospital in the Wayne County Circuit Court. Between October 17, 1963 and February 24, 1964 plaintiff filed an amended complaint and defendant made a motion for summary judgment which was denied without prejudice.
On May 10,1965 the action was dismissed because no progress was made for a period of one year, without actual notice to, or knowledge by, any party although there was publication in the Detroit Legal News under Wayne circuit court rule 17.3.
However, during the one-year period following May 10, 1965, the case progressed as though such dismissal by publication had never occurred. A second amended complaint was filed by plaintiff; a renewed motion for summary judgment was made by defendant hospital; an order granting in part and denying in part defendant hospital’s motion for summary judgment was filed; a third amended complaint was filed by plaintiff; an answer to the third amended complaint was filed by defendant hospital; a motion for summary judgment was filed by defendant hospital; a motion for partial summary judgment was filed by defendant hospital and a revised and amended complaint was filed by plaintiff, followed by defendant hospital’s further answer and notice of motions for summary judgment and accelerated judgment.
On May 11,1966 Charles Pfizer and Company was added as a defendant in a fourth amended complaint. Between July 7, 1966 and May 19, 1968, defendant Charles Pfizer and Company filed an answer, interrogatories to defendant Henry Ford Hospital were filed, answers to interrogatories were filed, and all parties signed a ready for pretrial certificate.
At this point the Court Assignment Clerk refused the ready for pretrial certificate because of the 1965 dismissal.
Plaintiff then moved to set aside the order of dismissal stating that the case had been reinstated within one year after dismissal as required by Wayne circuit court rule 17.7 by the actions of the parties although not by express order of the court. The court entered an order of reinstatement nunc pro time as of September 1, 1965 on August 9, 1968 from which no appeal was taken.
Both defendants, on June 4, 1969, filed a motion for rehearing of the motion to reinstate the action and a motion to set aside the order reinstating the action, both of which were denied. Both defendants then filed an application for leave to appeal to the Court of Appeals. Leave was granted.
The Court of Appeals reversed and remanded the case to the trial court for an order granting defendants’ motion to set aside the trial court’s order of reinstatement.
The questions before this Court are whether Wayne circuit court rule 17.7 contemplates reinstatement within the required one-year period without a formal order of reinstatement being actually issued during that time, and, if so, whether an order of reinstatement nunc pro tuno is properly entered to remedy the defect in the record.
Wayne circuit court rule 17.7 (which has since been repealed by the Wayne Circuit Court) reads as follows:
“In no event shall an action be reinstated more than two times, nor after a year has elapsed from the date of dismissal.”
In construing Wayne circuit court rule 17.7 we must be guided by GrCR 1963, 13:
“Rule 13. Construction.
“These rules are to be construed to secure the just, speedy, and inexpensive determination of every action so as to avoid the consequence of any error or defect in the proceedings which does not affect the substantial rights of the parties.” (Emphasis added.)
The policy behind GCR 1963, 13 is clearly, set forth in the official committee comment to that rule:
“Rules of practice and procedure are exactly that. They should create no rights and should be thought of as indicating the way in which justice should be administered. They should give direction to the process of administering justice but their application should not become a fetish to the extent that justice in an individual case is not done. There is a need for guides and standards. They must be followed but they must always be thought of as guides and standards to the means of achieving justice, not the end of justice itself.” Reprinted as annotation to Stat Ann, Rules, Rule 13, p 4. (Emphasis added.)
During the one-year permissible period of reinstatement following dismissal for no progress three amended complaints were filed; a motion for summary judgment was made and acted upon by the court and an answer was filed by defendant hospital. There was no prejudice to any party and preparation for trial by both parties was proceeding. The first time that either party knew of dismissal was when both parties were ready for trial. By the action of the court in allowing the first amended complaint to be filed after dismissal, the court in fact and in law reinstated the case. The subsequent action of the trial court entering an order of reinstatement nunc pro tunc was therefore superfluous.
An order has previously been entered reversing the Court of Appeals and remanding the case for trial on or before 60 days from the date of that order.
T. M. Kavanagh, C. J., and Black, Adams, T. E. Brennan, T. G. Kavanagh, and Swainson, JJ., concurred with Williams, J. | [
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Williams, J.
On October 27, 1960, at approximately 8 a.m., plaintiff Eugene Wend reported for work at the IGA store of St. Charles. The store, which is owned and operated by Delmus DeShone, the father and employer of defendant Robert DeShone, runs east and west along Clinton Street. Between the Clinton Street side of the building and Clinton Street there is a space of approximately 21 feet. Five feet of this space is sidewalk, running beside the building, and 16 feet is parking space which is part of the public road right-of-way. The 16 feet of parking space was used and maintained by the store owner for customer and employee parking.
Shortly after plaintiff Wend’s arrival the defendant, Robert DeShone, arrived and parked his Volkswagen automobile in the above described parking space. His purpose in arriving at this time was to open the store for his employer as he normally did and for this purpose he had the keys to the store with him. The Volkswagen was owned by his employer and was used for delivering groceries.
Before opening the store, the defendant borrowed the key of another Volkswagen from John G-utry, a fellow employee who had also arrived on the scene, to find out whether it would fit the Volkswagen the defendant was driving. The plaintiff had at this time moved from the door of the building to a point on the sidewalk in front of the Volkswagen driven by defendant.
The defendant put Gutry’s key into the ignition of his employer’s Volkswagen and turned the key. The Volkswagen lurched ahead, pinning plaintiff Wend against the building and injuring him.
Plaintiff Wend applied for and received an award from the workmen’s compensation commission in the amount of $1,739.50 against the Fidelity & Casualty Company of New York, the employer’s compensation carrier.
Fidelity & Casualty Company commenced an action against the defendant to recover the amount it had paid Wend. Subsequently, the court permitted Wend to join as a party plaintiff.
There was testimony at the trial that the defendant generally opened the store in the morning for the employees; that he worked at the store five or six days a week and that on the morning of the occurrence in question plaintiff Wend and the defendant went to work approximately 15 to 30 minutes after the plaintiff was injured, the delay being caused solely by the plaintiff’s injury.
In the trial the jury returned a verdict for the plaintiffs. The trial judge granted the defendant’s motion for judgment notwithstanding the verdict. Plaintiffs appealed and the judgment was affirmed by the Court of Appeals. From the decision of the Court of Appeals, plaintiffs appealed to this Court.
MCLA §413.15 (Stat Ann 1968 Rev §17.189) (since repealed by PA 1969, No 317; now PA 1969, No 317, § 827 [MCLA § 418.827; Stat Ann 1971 Cum Supp § 17.237(827)]) provided as follows:
“Where the injury for which compensation is payable under this act was caused under circumstances creating a legal liability in some person other than a natural person in the same employ or the employer to pay damages in respect thereof, the acceptance of compensation benefits or the taking of proceedings to enforce compensation payments shall not act as an election of remedies, but such injured employee or his dependents or their personal representative may also proceed to enforce the liability of such third party for damages in accordance with the provisions of this section.” (Emphasis added.)
If plaintiff Wend was in the “same employ” as the defendant at the time the accident occurred there can be no recovery by either plaintiff Wend or the employer’s insurance carrier, Fidelity & Casualty Company of New York.
The plaintiff was found by the workmen’s compensation commission to be an employee of Delmus DeShone, defendant’s father, and injured during the course of his employment. In the absence of fraud, a finding of fact by the workmen’s compensation commission is binding on a party to that proceeding in a later action. Ayers v. Genter (1962), 367 Mich 675, 678, 679. Consequently, the determination of the workmen’s compensation commission in making the award to Wend that he was an employee of Delmus DeShone injured during the course of his employment is binding upon him in this action.
As a result of the workmen’s compensation commission’s determination of plaintiff Wend’s status the only question properly before the trial court was whether the defendant Robert DeShone’s act arose out of and in the course of his employment by his father, Delmus DeShone, making him, at the time of the accident, a “natural person in the same employ.”
The provision exempting all “natural persons in the same employ” (MCLA § 413.15 [Stat Ann 1968 Rev § 17.189], now PA 1969, No 317, § 827 [MCLA § 418.827; Stat Ann 1971 Cum Supp § 17.237(827)]) must be construed in light of its purpose. The legislative intent in enacting this 1952 amendment to the workmen’s compensation act was “to exempt from liability * * * all natural persons who are carrying on the activities of the employer, regardless of what those activities may be.” Pettaway v. McConaghy (1962), 367 Mich 651, 655.
MCLA §412.1 (Stat Ann 1968 Rev §17.151) (since repealed by PA 1969, No 317; now PA 1969, No 317, § 301 [MCLA § 418.301; Stat Ann 1971 Cum Supp §17.237(301)]) provided that:
“Every employee going to or from his work while on the premises where his work is to be performed, and within a reasonable time before and after his working hours, shall be presumed to be in the course of his employment.”
An injury occurring in a parking lot normally used by employees and maintained by the employer although not owned or leased by him is considered to take place on the premises. Lasiewicki v. Tusco Products Company (1963), 372 Mich 125. The public right-of-way was used and maintained by the parties’ employer for customer and employee parking. Therefore, the statutory presumption applies.
In addition, there was testimony that the defendant normally opened the store in the morning and that on the morning of the accident, defendant had been given the keys to the store by the owner at defendant’s residence for that purpose. The injury occurred while plaintiff Wend was standing beside the store waiting for the defendant to open it. At the time of the accident, the defendant was embarked on a mission for his employer. In this capacity, his act arose out of and in the course of his employment.
The fact that the defendant’s act of trying someone else’s keys in his automobile did not fulfill any purpose of his employer does not affect his status. To be in the course of employment, employees are not required to do only those acts that are part of their assigned work. Crilly v. Ballou (1958), 353 Mich 303, 326 states:
“For the purposes of the compensation act the concept of course of employment is more comprehensive than the assigned work * * * . Course of employment is not scope of employment. The former, as the gases so clearly reveal, is a way of life in a working environment. If the injury results from the work itself, or from the stresses, the tensions, the associations, or the working environ ments, human as well as material, it is compensable.”
We hold that the trial court correctly concluded there was insufficient evidence from which a jury could reasonably find that the act of the defendant which injured the plaintiff did not arise out of and in the course of his employment.
Affirmed.
T. M. Kavanagh, C. J., and Black, Adams, T. E. Brennan, T. G. Kavanagh, and Swainson, JJ., concurred with Williams, J. | [
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T. E. Brennan, J.
On November 18, 1968, Armand D. Kunz, then State Grievance Administrator of the State Bar of Michigan, filed a formal complaint with the State Bar against Martin P. B. Lavan, the respondent.
The complaint alleged that respondent is an attorney, duly licensed to practice law in this state on December 24, 1965, and that the respondent had held the office of justice of the peace for the City of Brighton in Livingston County from April 12, 1965, until on or about January 5, 1967.
The complaint further alleged that, during the time that respondent was both ah attorney at law and a justice of the peace, he committed acts of misconduct warranting professional discipline.
It also claimed that from January of 1967, and continuing until the date of the formal complaint, the respondent had violated certain statutes of the state respecting his duty to turn over to his successor in office all files, records and money which he had in his possession as justice of the peace.
The issue thus having been joined between the Bar and the respondent, the matter was referred, under the applicable court rules, to a grievance committee, designated “Special Grievance Committee No. 10.”
Extensive hearings were held before the grievance committee, which consisted of seven members of the Bar. On June 20, 1969, the committee filed its report. The committee concluded that the respondent had been guilty of violation of several statutes, both as an attorney and as a justice of the peace. The committee concluded that these acts constituted misconduct and were actions committed by a member of the Bar contrary to and prejudicial of the proper administration of justice, and that the actions of the respondent had been contrary to justice, ethics and honesty and exposed the legal profession and the courts to obloquy, contempt, censure and reproach.
The certified report of Special Grievance Committee No. 10 concluded with these recommendations :
“1. The license to practice law in this state of Respondent, Martin P. B. Lavan, be suspended for a period of one year and that he not be reinstated until such time as he has fully and completely demonstrated to the Court that he is eligible for reinstatement under the provisions of Bule 14, Section 3 of the Supreme Court Rules Concerning the State Bar of Michigan.
“2. Respondent, Martin P. B. Lavan, be required by order of the Court to pay to the State Bar of Michigan the sum of $4,177.87 being the expenses of the State Bar of Michigan in connection with the hearing of this matter.”
Upon certification by the State Bar Commissioner for the second congressional district, the report of the committee was filed in the circuit court for Livingston County. Pursuant to court rule, the circuit judge issued an order to show cause, directing the respondent to appear on the 15th day of July, 1969, and show cause why the certified report should not be approved, confirmed and adopted, and why an order for discipline should not be entered as recommended therein.
In accordance with the former practice, a panel of three circuit judges was assigned to hear the matter upon the return of the order to show cause. Briefs were filed, and oral arguments heard.
On August 28, 1969, the three-judge panel filed its opinion and order, containing an exhaustive review of the record made before the grievance committee, and concluding as follows:
“Decision
“In the foregoing development, we have set forth our opinion that certain findings of the Committee were supported by the record and that in some instances the matters so found established misconduct.
“It is further our opinion that the misconduct was of such nature that it requires disciplining of the Respondent. As to the failure to maintain a sep arate account which resulted in commingling of public monies with his own, this is a serious matter. The record clearly establishes that this resulted in his use of the account in such a manner that he may have been using public monies for private purposes. This is not charged or established, but his conduct was such that very serious defalcation could easily have occurred. On his behalf it is argued that neither private individuals nor the public suffered any loss. We do not know whether this is true. If true, however, it was not because Respondent complied with a statutory provision that would have assured that there be no such loss if its requirements had been met. Moreover, the fact of there having been no loss would not disestablish misconduct, but rather should be considered in determining the extent of discipline.
“It was further established that he failed to turn over properly the records of his office. As a result speculation occurred as to whether there were serious improprieties. Again, none were charged or found, but, had proper procedures been followed, the occasion for such speculation would not have been present.
“There has been established a failure to account properly for public monies. Again, the Committee made no charge or findings that this resulted in loss to the public or to private persons. But the failure to properly follow procedures again raised the specter of such improprieties.
“Having determined that discipline is required, the rule restricts our alternatives to two: suspension or disbarment. The former is recommended by the Grievance Committee. The latter was recommended by the Attorney for the State Bar. In this consideration, we have more latitude in examining the record, but again as to misconduct, we are limited to consideration of that charged and found by the Committee.
“The Rule gives us the following criteria: (Rule 15, Sec. 16)
“ ‘In fixing the degree of discipline the court shall consider the seriousness of the reported misconduct, and shall administer the discipline as a measure necessary for the protection of the public, the courts and the legal profession, and not as punishment for wrongdoing.’
“We are satisfied that those findings of the Committee which were supported by the record do not justify Respondent’s disbarment, but rather that the rule-stated purpose of discipline will be served by suspension of his license.
“Disciplinary Order
“Respondent’s license to practice law in this state is hereby suspended for a minimum period of one year and until the further order of the Court, with reinstatement thereafter to be permitted only after compliance with the provisions of the rule.
“Expenses
“We are also mandated to make provision for reimbursement to the State Bar for its expenses incurred in these proceedings. (Rule 15, Subsection 32) Respondent objects that not all of the expenses resulted in charges being established and that considerable of the expense of the proceedings went to matters not established as misconduct. The line cannot be drawn that fine. The brush used was broad, broader than perhaps ordinary circumstances would have dictated. We find, however, no abuse of these proceedings. The submitted list of expenses is determined to be just.
“The rule requires more. It requires us to make provisions for this reimbursement. Unfortunately, we are limited in our knowledge required for the performance of this duty. For example, our knowledge of the Respondent’s present resources are limited, and we can only speculate as to his future financial condition. Certainly the inability to prac tice Ms profession would seriously affect Ms ability to pay.
“Order For Expenses
“It is ordered that Respondent make reimbursement of the sum of $4,177.87 to the State Bar of Michigan at the rate of $500.00 each year, beginning as of the date of this order, provided, that either the State Bar or the Respondent may petition the 44th Judicial Circuit Court, as it is regularly constituted, for additional relief, either to increase or to decrease payments as the facts then warrant, but not to cancel the obligation. In the event Respondent petitions for reinstatement, additional supplemental or substitute provisions may be made by the Court making disposition of such petition.
(s) John X. Theiler Circuit Judge
(s) James P. Churchill Circuit Judge
(s) James J. Kelley, Jr. Circuit Judge”
By-pass appeal was permitted to this Court by order granting leave on November 20, 1969.
Respondent raises the following issues:
“I
“Did (1) the Agreement made by Respondent with his successor, as he turned over to him certain Justice of the Peace books, records, files and other papers, and (2) the Agreement asserted by Respondent to have been made with his successor concerning transmittal of fines, bond monies and costs, and (3) the use made by Respondent of his Justice of the Peace bank account in taking therein and disbursing thereout both private and public funds, constitute misconduct and, further, misconduct war ranting discipline of twelve months suspension and imposition of $4,177.87 costs?
“II
“Did the Circuit Judges err in ruling that, some misconduct having been found, they had no alternative other than to suspend or disbar?
“Ill
“Did the Circuit Judges err in ruling that all costs incurred before the State Bar Committee ($4,177.87) should be repaid by Respondent-Appellant, despite the fact that these costs were in large part incurred in reference to charges which the State Bar either failed to prove or which the Circuit Judges dismissed?”
These three issues are essentially addressed to the fact-finding process at the grievance committee level, and the review de novo upon the record made by the panel of three circuit judges upon the order to show cause.
It is a scrupulous concern for fairness to an accused brother at the Bar which has lead this Court to embark upon a second de novo review of the evidentiary record in these proceedings.
Having done so, there is no occasion for us to detail the evidence in our reports.
The misconduct found by the circuit court panel sitting en banc was fully substantiated by the record. No serious challenge to those findings was made in the briefs or arguments submitted here. In fact, no serious dispute with the essentials of those findings can be found in the testimony of the respondent himself.
More importantly, we have been asked to substitute our judgment of appropriate discipline for that of the recommending committee and the hearing panel.
We find no canse to do so. The judgment of the specially constituted circuit court for Livingston County is affirmed. No costs shall be awarded to this Court, the Court being of the view that the order below for reimbursement of expenses is sufficient, and that review of discipline of a member of the Bar is a matter of public concern.
T. M. Kavanagh, C. J., and Adams, J., concurred with T. E. Brennan, J. | [
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T. G-. Kavanagh, J.
Defendant was convicted by a jury of armed robbery of a Detroit bar. On appeal from tbe Court of Appeals’ affirmance of his conviction, he claims first, that his pretrial identification by the bar owner and barmaid were inadmissible and, second, that the trial court’s comments on the evidence were prejudicial and deprived him of a fair trial.
Regarding the first claim — the tainted identification — we find no error.
The record discloses that the bar owner had gone through a “bunch of pictures” and positively identified defendant as the holdup man. It was only after he had picked defendant from the lineup that it was intimated that defendant was the one suspected of holding him up.
The record also establishes that the barmaid witness was shown many photographs without any indication as to whether defendant’s photograph was included and that she conclusively identified defendant, both from the photographs and the lineup.
Review of the testimony supports the conclusion that, although there was a discrepancy between the initial description given by witnesses to the investigating officer and defendant’s actual height 5' 6" and 5' 10" respectively), there was no impermissibly suggestive method employed in the instant case.
The procedure here employed meets the standard prescribed by the holding in Simmons v. United States (1968), 390 US 377, 384 (88 S Ct 967, 971, 19 L Ed 2d 1247, 1253):
“Instead, we hold that each case must be considered on its own facts, and that convictions based on eyewitness identification at trial following a pretrial identification by photograph will be set aside on that ground only if the photographic identification procedure was so impermissibly suggestive as to give rise to a very substantial likelihood of irreparable misidentification. This standard accords with our resolution of a similar issue in Stovall v. Denno [1967], 388 US 293, 301, 302, [87 S Ct 1967, 1972, 1973, 18 L Ed 1199, 1206], and with decisions of other courts on the question of identification by photograph.”
We are not yet persuaded that Michigan should set a higher standard.
Regarding the claim that the trial court’s comments on the evidence prejudicially deprived defendant of a fair trial, we are compelled to agree.
The judge’s comment was contained in his instruction to the jury.
“Defendant, on the other hand, has taken the stand. He has known he was under no compulsion to do so but he did do so and in effect, says, on the day and date charged around a certain hour — I’m not even going to quote that, you’ve heard it, ‘I was in that bar. I was with two confederates before we went in. Two of us went in. We had determined to hold up a bar but not that one.’ So you have it already from his own lips that they intended to hold up a bar, not that one, he said it.
“In determining and weighing the intent you have a right to consider that but he says further that when I learned what was afoot from my companion who went in with me I abandoned the enterprise. Abandonment of an unlawful enterprise is a good defense if you get out completely and not wait until part of it’s finished and try to get out. He says ‘I abandoned it, I left.’ And further, that he met the confederates later and that there was some money; that he was aware; he knew where it came from but he got none of it. Now, you’ve got to weigh that, see whether you believe it or not.” (Emphasis added.)
This does not fairly state the defendant’s position.
What defendant actually said was:
“Q. All right, did you know at the time that you left the car, you and the other man, and went into this Your Bar that it was this man’s intention to rob the bar?
“A. No, not any further until we got in the bar.
“Q. All right, so you did know that he intended to rob the bar after you had gotten the beer, is that right?
“A. Yes, sir.
“Q. All right, I wonder — well, strike that.
Had there, been any discussion in the car between you, the man, the person, the young man known as Dennis and — Junior?
“A. Not about this bar, but he was talking about robbing some—
“Q. Oh, I see. All right, now, when the man told you he was going to go out and get Junior to help him on the robbery, what did you do, Mr. King?
“A. Me and him got up out of the bar together. I stood in front of the bar and he went to Forest about in the store just after the bar, he went to Forest, went — and went down Forest and by this time when he got to the corner I turned and went down Mt. Elliott to G-arfield to the playground turned, went across the playground to Canfield about a block from my house, be on Ellery between Morang on [sic] Canfield to Moran house.” (Emphasis added.)
This defendant never admitted that he intended to hold up that bar or any other. He did not say he intended to rob a bar and then abandoned the scheme. To so characterize his testimony is wholly to misrepresent it.
While the weight of a trial judge’s word may not equal the ton ascribed to the word of the President of the United States, he should remember how heavily it weighs with the jury. See People v. Padgett (1943), 306 Mich 545, 554, 555; People v. Oates (1963), 369 Mich 214; People v. Barmore (1962), 368 Mich 26.
If he elects to comment on the evidence, testimony, or character of a witness, as suggested by the legislature in MOLA § 768.29 (Stat Ann 1954 Rev § 28.1052) and acquiesced in by this Court in GCR 1963, 516.1, he must take great pains to make sure his comment is at least an accurate representation of the subject. Indeed, he may fairly be advised that since some of us have grave misgivings about the propriety of any such comment by a trial judge that all comment will be closely scrutinized so long as it is still permitted by court rule.
Reversed and remanded.
T. E. Brennan, C. J., and T. M. Kavanagh, J., concurred with T. G. Kavanagh, J.
Black and Adams, JJ., concurred in result.
Dethmers and Kelly, JJ., did not sit in this case.
We take this opportunity to advise both the bench and bar that this is one of the court rales which will be under reconsideration by the Committee on Revision of Rules after January 1, 1971. | [
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Wiest, J.
This is a suit to recover damages for personal injuries. The morning of August 7, 1921, plaintiff was driving his motorcycle along a gravel road in the country, with a young woman seated back of him, and, while turning slightly toward the center of the road to avoid some loose gravel the front wheel of the motorcycle took a rut and the rear wheel not tracking, he and his companion were thrown to the ground and run over by an automobile driven by defendant. Plaintiff claims he was driving on the" proper side of the road, was trying to avoid loose gravel ahead, when the motorcycle skidded, and defendant was following him at a sufficient distance away to have turned and passed him as he lay in the road or have stopped his automobile, but instead of doing so carelessly ran over him. Defendant claims he was close behind plaintiff, had signaled his intention to pass and had turned slightly to go by, when plaintiff turned in the same direction and was thrown to the ground right in front of his automobile, within six to ten feet, too close for him to stop or turn out, and to have applied the brakes would have caused the sliding wheels to drag plaintiff, so he accelerated his speed somewhat and unavoidably ran over him.
The issues were tried to a jury and plaintiff had verdict and judgment and defendant reviews by writ of error. At the close of the proofs defendant moved for a verdict in his favor, by motion for a new trial claimed the proofs failed to establish negligence, raised the point that the verdict was against the great weight of evidence and presents the same questions here. It is claimed there was no evidence from which the jury could find the defendant’s automobile was a sufficient distance from plaintiff when he fell to the ground to afford an opportunity to avoid the accident.
The testimony of the young woman'who was riding with plaintiff, as to the distance defendant was back of the motorcycle at the time of the spill, while not definite in rods or feet, was sufficiently descriptive of the distance to send the issue of defendant’s negligence to the jury.
Plaintiff testified to a conversation with defendant at a hospital and stated an insurance adjuster was present. The testimony about an insurance adjuster was struck out. This cured the error. The time has come when probably a majority of persons on every jury own automobiles and the policy of carrying insurance is so common that it is not surprising if jurors sense the fact. The rule of exclusion, perhaps, ought to continue, even though every-day affairs have moved beyond its original reason, but it ought not to be employed to set aside judgments except in cases of flagrant violation.
A witness who had driven several makes of automobiles about 50,000 miles, had worked in garages, and who drove defendant’s car immediately after the accident and found the brakes in order, was permitted to testify within what distance, under road conditions there existing, with the automobile going at the rate of 15 to 18 miles per hour, it would be possible to stop or turn to pass where plaintiff lay in the road. This witness arrived at the place of the accident while plaintiff, the woman and motorcycle lay in the road, gave their positions and testified there was room to pass on the proper side. Counsel for defendant contend the witness was not qualified to give expert testimony, that what he said invaded the province of the jury, and that defendant is not to be held to what an expert driver could have done. The witness was qualified to express an opinion upon the subject and there was no error in giving'the jury the benefit of his opinion. Within what distance defendant’s car could have been stopped or turned to pass plaintiff, of course, was for the jury to say, but we apprehend that some jurors, without experience, would be enlightened by testimony on the subject. We do not think defendant’s duty was put to the test of the ability of the witness, but only to the test of whether he exercised the care of an ordinary prudent driver under the particular circumstances.
Over objection the young woman who was riding with plaintiff was permitted to detail the nature and extent of the injuries she received. The fact she was injured was admissible but it was. not permissible to go into the particulars of her injuries and the period she was in a hospital and prevented from working. Later the court struck out the objectionable portion of her testimony and we think this sufficiently cured the error.
The learned circuit judge very carefully laid the claims of thq parties before the jury, and the issues involved.
Defendant requested the following instruction:
“I instruct you that this case comes within what has been called the last clear chance doctrine/ i. e., who had the last clear chance to avoid the accident. Did the defendant, Montgomery, have a clear chance after the skidding and the throwing of the parties into the road, to avoid hitting them? Unless you find by a preponderance of the evidence that he did have such last clear chance, your verdict must be for the defendant.”
This was refused and the jury instructed that plaintiff could not recover if he was guilty of contributory negligence. Plaintiff claimed he was free from negligence. Suppose the instruction had been given and the jurj?- had found plaintiff was negligent, but his negligence was discovered by defendant in time to have avoided the accident, it would only have expanded plaintiff’s right to recover and not at all helped defendant. The last clear chance doctrine is sometimes a help to a plaintiff, but it is hard to conceive of its being of any advantage to a defendant. Plaintiff had to establish the fact that defendant had a reasonable time and a way open to avoid hitting him, and that his being in the road was not due to want of care. This is not the last clear chance doctrine at all, but the ordinary rule relative to negligence on the part of a defendant and due care on the part of a plaintiff. If we hold the request should have been given and send the case back for a new trial, we apprehend plaintiff could not ask that the request be given, because it would permit a recovery contrary to his claim, and we suspicion that defendant would not again ask it be given, because it would enlarge plaintiff’s claim by permitting recovery if he was negligent and defendant discovered such negligence in time to have saved him from injury. The circuit judge was clearly right in refusing, even at defendant’s request, to permit plaintiff to go to the jury under the last clear chance doctrine. We have examined the instructions given the jury and find no error of which defendant can complain. The instruction also sufficiently covered the points with merit in defendant’s requests to charge. An examination of the evidence leads to the opinion there was sufficent evidence to carry the case to the jury and we ought not to hold the verdict against the great weight of the evidence.
Points presented have been duly considered and no reversible error appearing the judgment is affirmed, with costs to plaintiff.
Clark, C. J., and McDonald, Bird, Sharpe, Moore, Steere, and Fellows, JJ., concurred. | [
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Fellows, J.
Delia Alston died testate September 1, 1918, in Isabella county, and her will was in due course admitted to probate. Blanche Belcher was named as a legatee. Commissioners on claims were appointed and Kate Jamison presented a claim which was allowed in the following language:
“Entire estate after payment of debts and expenses.”
An unsuccessful attempt to appeal from this allowance was made by the executor. Jamison v. Isabella Circuit Judge, 217 Mich. 581. The estate not having been closed, Blanche Belcher filed a petition for a delayed appeal under the provisions of section 14158, 3 Comp. Laws 1915, which reads as follows:
“If the petitioner shall be without the United States at the time of passing the decree or order, or making the determination, he may file his petition within three months after his return, provided it be done within two years after the act complained of; but no such petition shall be allowed after the payment of the debts of the estate and the distribution thereof to parties entitled thereto by due course of law.”
The attorney for Kate Jamison moved for various reasons to dismiss the petition and such motion and the application for the delayed appeal were heard together. Upon such hearing petitioner relied upon the petition alone and offered' no other or further proof. In opposition the probate files and the.files in the case of the attempted appeal by the executor were received in evidence. The petition was dismissed on the ground that petitioner was a resident of Winnipeg, Manitoba, Canada, an alien, and for that reason, not entitled to the benefit of the statute. There is sufficient in the record to sustain the finding of fact that Blanche Belcher is an alien but the court was in error in holding as matter of law that this fact deprived her .of the benefit of the statute. Mascitelli v. Union Carbide Co., 151 Mich. 693. This case is not cited in any of the briefs and doubtless was not called to the attention of the trial judge. In it cases from other jurisdictions which are here relied on to sustain the holding in the trial court are considered and held to be contrary to the weight of authority. As the opinion contains a citation and consideration of numerous authorities it will not be necessary to pursue the subject further.
This court has uniformly held that a judgment which is right will not be reversed because a wrong reason is given by the trial judge. This necessitates an examination of other grounds which were urged by the appellee in the court below and which are here repeated as grounds for sustaining the order. It is insisted that justice does not require a revision of the case. When we consider the facts set up in the petition together with the questionable form of the allowance, we are constrained to overrule this objection.
We have noted that in the court below appellant offered no testimony and rested her case entirely on the petition. This was sworn to before a notary public of Pembina county, North Dakota. The certificate of the clerk of the district court of that county did not authenticate the signature of the notary public and did not show that such notary public was authorized to administer oaths under the laws of that State. It is insisted that under our statute and the former decisions of this court such affidavit could not be considered. The judicature act, re-enacting former statutes, makes provision for using affidavits sworn to outside the State in judicial proceedings and fixes the requisites which must be found in the certificate of the clerk to entitle them to be read. Section 12502, 3 Comp. Laws 1915, provides:
“In cases where by law the affidavit of any person residing in another State of the United States, or in any foreign country, is required, or may be received in judicial proceedings in this State, to entitle the same to be read, it must be authenticated as follows: * * *
“4. If such affidavit be taken in any other of the United States or any territory thereof, it may be taken before a commissioner duly appointed and commissioned by the governor of this State to take affidavits therein, or before any notary public or justice of the peace authorized by the laws of such State to administer oaths therein. The signature of such notary public or justice of the peace, and the fact that at the time of the taking of such affidavit the person before whom the same was taken was such notary public or justice of the peace, shall be certified by the clerk of any court of record in the county where such affidavit shall be taken under the seal of said court”
We have already pointed out that the certificate of the clerk did not comply with this statute. In Berkery v. Wayne Circuit Judge, 82 Mich. 160, this provision (then 2 How. Stat. § 7448, subd. 3) was before the court. It was there said:
“The authority of notaries to administer oaths is usually conferred by statute, and does not pertain to their office by usage or custom. Keefer v. Mason, 36 Ill. 406; Proff. Not. § 21. The affidavit ,of Bortz of the amount due was to be used in a judicial proceeding in this State. To entitle it to be used it was necessary that it should have been certified under 2 How. Stat. § 7448, subd. S. * * * The affidavit without such authentication was a nullity, and gave no jurisdiction to the clerk to file the transcript, or enter and docket the judgment.”
The legislature has by mandatory provision fixed the requirements necessary to entitle an affidavit sworn to outside the State to consideration. This court in the case cited has held that unless the requirements are met the affidavit is a nullity. Unless we overrule this case and by judicial legislation amend this statute, we must hold that the trial judge could not consider this affidavit. 'Without it he would not, of course, be authorized to grant the delayed appeal.
The order must be affirmed.
Clark, C. J., and McDonald, Moore, Steere, and Wiest, JJ., concurred. Bird and Sharpe, JJ., concurred in the result. | [
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Sharpe, J.
On March 22,1918, plaintiffs executed a chattel mortgage on certain personal property owned by them to the defendant Adolph Kann to secure two notes, one due on November 1, 1918, and the other due November 1,1919, each for the sum of $200. On March 22, 1919, another mortgage was executed to secure a note for $403, due November 1, 1919, being the balance due on the notes theretofore given and covering a part of the same and some additional personalty. The first notes and mortgages were retained by Mr. Kann. Plaintiffs paid $28 on the note last given about a week after it was executed. Both mortgages contained the usual provision for the mortgagee’s taking possession, etc,, in case he deemed himself insecure.
On the 25th day of April, 1919, 34 days after the second mortgage was given, the defendant Jack Kann, claiming to be acting for Adolph, went to plaintiffs’ premises, accompanied by Mr. Siegel, the cashier of the People’s State Bank at Scottville, which bank also held a chattel mortgage on certain of plaintiffs’ personalty, which had been extended on April 9th to October 14, 1919, and in which additional property had also been included, and caused all of the property described in the mortgage which could be found to be taken away.
It appears that the State Savings Bank of Scottville also held a mortgage on some of plaintiffs’ prope'rty, and that Mr. Alway, a representative of this bank, was present when the property was taken later in the day by men sent by Siegel and Kann.
The Kann mortgages were foreclosed and the property sold for $229. Plaintiffs bring this suit, claiming unlawful conversion of their property by defendants. There was proof that it was worth upwards of $800. They also claimed that two cows were taken that were not included in the mortgages. The defendants by way of counterclaim asked verdict and judgment for the difference between the amount due on the note and what the property sold for. Plaintiffs had verdict and judgment for $175. Defendants bring error.
Defendants moved for a directed verdict, and here insist that there was no disputed question of fact to submit to the jury. The court submitted two, first, Was possession of the property taken by defendants in good faith for the reason that Adolph Kann deemed “himself insecure,” as provided for in the mortgages? He was not sworn as a witness, but the other defendant, who was acting for him, testified to facts which counsel claim would have justified a finding in his favor. On the record as made, the question was for the jury. When the first note became due, Mr. Kann might, in default of payment, have foreclosed. Instead of doing so, he extended the time for payment. The new' mortgage covered stock and implements not in the old one, and also IT acres of growing crops. His claim that he deemed himself insecure was based largely on the statement, said to have been made by Anton, that he had lost some stock and that it had been poisoned by his neighbors. This he denied. There was no proof that plaintiffs were disposing of their property or removing the same. The exercise, of the power conferred by the mortgage so soon after the second mortgage was given, in which additional property had been included, and the testimony of the plaintiff Anton that the defendant took possession without ascribing any real reason therefor, raised an issue for the jury on the exercise of good faith. As was said in Woods v. Gaar, Scott & Co., 93 Mich. 143, 147:
_ “These clauses are inserted with reference to possible changes in conditions or circumstances, or new developments affecting the mortgagee’s security. The right to take possession and at once proceed to sell plaintiff’s property was not a mere option, to be arbitrarily exercised, without reference to changed conditions or the conduct of the mortgagor. A vendor of personal property will not be allowed to * * * capriciously deem himself insecure and take possession of the property.”
It is also there said that “the real question * * * is the good faith of the mortgagee,” and that—
“A reason may not strike the jury as a good reason, yet the mortgagee may act in entire good faith, and in such case there can be no liability.”
The jury were instructed to apply these rules to the facts as they found them to be, with the result stated.
The other question submitted related to the two cows not included in the Kann mortgages, which plaintiffs claim were taken. There was proof to justify the instruction given.
Defendants insist that before beginning suit plaintiffs should have tendered the amount due on the mortgage. Had the suit been brought after the mortgage debt became due, and while the defendants were still in possession of the property, there would be force in this contention. But the debt owing by plaintiffs was not yet due, and the property taken had been sold by defendants under the power of sale in the mortgage. This being so, no tender was necessary. The debt was due at the time of the trial, and the jury were instructed to deduct the amount thereof from the value of the property taken. Defendants’ rights were thus fully protected.
It is urged that the verdict “is against the overwhelming weight of the testimony,” and that it “was unreasonable and excessive.” The trial court was unwilling to set aside the verdict for .these reasons. His opportunity, and that of the jury, for determining the weight to be given to the testimony of the several witnesses is so much better than ours that we must decline to order a new trial.
The judgment is affirmed.
The record in this case was filed in this court on September 15, 1922. Appellants’ brief was filed on October 28,1922. The case was submitted on October 7, 1924. The brief on the part of the appellees was not filed until November 26,1924. The delay of plaintiffs’ counsel in filing his brief and bringing the case on for hearing is in no way accounted for. Clients, unless otherwise advised, place the blame for delays upon the courts. The interest of his client demands prompt action on the part of an attorney. This opinion was prepared before the brief for appellees was filed. Their attorney is not entitled to an attorney fee or the expense of printing his brief. No costs will be allowed him in this court.
Clark, C. J., and McDonald, Bird, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Steere, J.
In December, 1923, Ruth C. Willis, of Wayne county, and Charles Goucher, of Livingston county, commenced a suit in the circuit court for the county of Livingston, in chancery, against J. D. Brennen and his wife, Belle E. Brennen, of Washtenaw cbunty, the above named plaintiffs in this proceeding, based upon the following written agreement:
“I hereby place in the hands of Chas. Goucher the described property: 156 acres, Green Oah township, Livingston county, section 20, for the purpose of effecting a sale at the following price and terms: $19,000 net, cash, balance to suit, or any other price or terms acceptable to the owner. In the event of sale by agent or owner, I agree to pay a commission of all over the selling price._, _
“This agency shall be exclusive to Chas. Goucher, azzd I hereby authorize Chas. Goucher to close a sale ozz the price and terms above mentioned. I agree to furnish abstract and tax history.
“This agency may be terminated by giving 30 days’ zzotice in writing by registered mail.
“Signed this 18th day of April, 1922.
(Signed) “J. D. Bkennen, Owner.
(Signed) “Belle S. Beennen.
(Signed) “Chas. Gouchee.
By Chas. Goucher.”
Chancery summons was duly issued by the circuit court of Livingston county, in chancery, directed against said Brenzien and wife as defendants. Service was made upon them in the county of Washtenaw where they resided. Notice of appearance and demand for copy of bill was served and filed by their counsel on December 15, 1923.
On December 24, 1923, their answer was filed, first claiming full right of a motion to dismiss plaintiffs’ bill for the following reasons:
“(a) Because there is no equity upon the face of the bill of complaint filed in said cause.
“(b) Because from the lazzguage of the bill of complaint affirmatively appears that the said plaintiffs have, if anything, a full, adequate and complete remedy at law, all of which defendants will urge prior to a hearing upon the alleged merits of the above entitled cause, and as a further reason why the action must fail, these defendants respectfully call the attention of the court to the fact that under the alleged underwriting upon the chancery summons issued in said cause, no specific form of relief is requested which would warrant a personal decree agaiizst either of said defendants as prayed for in said bill.”
Said motion to dismiss, in the nature of a demurrer, was duly brought on to be heard before the circuit court, in chancery, of Livingston county, and after argument thereon the court held that the contract between the parties was clearly an agency contract, its terms entitling Goucher while it was in force to all the property might be sold for over and above the sum of $19,000, for which he had an Adequate remedy at law, and transferred the case to the law side of the court, giving plaintiffs’ counsel permission to file a declaration therein. After service of declaration on the law side of the court counsel for plaintiff herein appeared specially in said action for the purpose of moving to dismiss the same on the ground that neither of the defendants named therein had been served with any process in said cause within the county of Livingston, the service made upon them in Washtenaw county' by process, in chancery, being powerless to confer jurisdiction over defendants in an action on the law side of the court. The motion being denied, plaintiffs sought review of such ruling by mandamus and obtained from this court an order requiring the circuit court of Livingston county to show cause why said motion should not be granted.
The order of transfer in question was made under 3 Comp. Laws 1915, § 12351, authorizing transfer of suits in equity and actions at law to the proper side of the court when found commenced on the wrong side. That innovation is a part of our judicature act of 1915. While various features of the section have been before this court in cases here for review, the question of loss of jurisdiction over a person not served within the county by transfer of an equity suit to the law side of the court has not been passed upon or involved in those cases so far as shown, process apparently having been served within the county where the litigation was had. We find nothing in the act suggesting a purpose to disturb the old and well seasoned provisions relative to service found in 3 Comp. Laws 1915, § 12430, which, though authorizing process to be served anywhere within the State when issued out of a court of chancery, make it mandatory that transitory actions at law be commenced either in the county where at least one of the defendants resides and is served with process or, if brought within the county where plaintiff resides, service of process must be had upon at least one of the defendants within that county.
“The circuit court for each county sits within anc] for the same, and is restricted to its local limits. Though their jurisdiction is general over the subject-matter of suits, yet, in respect to persons and property, it cannot be exercised beyond the limits of the county. * * * Judge Washington, in Ex parte Graham, 3 Wash. C. Ct. R. 459, in speaking of the jurisdiction of these courts, says:
“ 'This division and appointment of particular courts for each district necessarily confines the jurisdiction of the local tribunal within the bounds of the respective districts within which they are directed to be held; were it otherwise, and the court of one district could send compulsory process into any other, so as to draw to it a jurisdiction over persons or things without the limits of the district, there would result a clashing of jurisdictions between the courts, which could not easily be adjusted.’ ” Turrill v. Walker, 4 Mich. 177.
“The right of a person to be sued at his own domicile is not a technical one, but one of importance, and should not be taken away except in strict compliance with law. And non-residents, as a rule, must sue their respondents at home.” Jacobson v. Wayne Circuit Judge, 76 Mich. 234.
There is no language in the transfer statute suggesting a construction by which jurisdiction over the person in an action at law may be served through commencing, as a suit in equity, a case which should have been brought as an action on the law side of the court and serving chancery process on a nonresident defendant outside of the county in which the case is begun. Conceding this to be true, counsel for defendant (in this proceeding) contend that “defendants (plaintiffs here) waived their right, if any, to object to the jurisdiction of the court over the parties,” by appearing in the chancery, suit and answering, and by what their counsel said during argument of the motion to dismiss the bill.
Service of process in the chancery suit was valid. It gave the court jurisdiction over the persons of the defendants in that proceeding. If they failed to appear and defend the bill would be taken as confessed and decree entered against them. Their answer was begun by a motion to dismiss plaintiffs’ bill for want of jurisdiction in equity over the subject-matter of litigation stated in the bill, not over defendants personally, and concluded with the averment that all matters mentioned and complained of in the bill were matters for trial and determination in an action at law. Their appearance and pleading in the chancery suit waived no rights in a law action not yet begun, nor standing against them by transfer, on the law side of the court.
The record shows that defendants’ motion to dismiss plaintiffs’ bill in the chancery suit was argued at length by counsel for the respective sides, with inquiries and comments by the court. During his argument Mr. B— (one of defendants’ counsel) said amongst many other things:
“Without going into the question of the authorities on the question, the contract itself is so plain and so certain as to its terms, I can’t conceive counsel for defendant could do anything on this motion to dismiss the bill of complaint other than to ask the court to transfer the matter to the law side of the court.”
After conclusion of argument upon the motion to dismiss the court rendered an oral opinion concluding : “Therefore the case will be transferred to the law side of the court for further proceedings.”
The following then took place between the court and counsel:
“Mr. J— (Counsel for plaintiffs): Will there be any limit of time as to when we will put in our declaration?
“The Court: You better file your declaration under the rule, as though summons had been issued within the same time as provided by rule for the filing of a declaration.
“Mr. H— (One of defendants’ counsel): I think we can stipulate on the record.
“The Court: Very well, you can stipulate as to the time of filing.
“Mr. H— Suppose within fifteen days, the plaintiff in this case will file their declaration. Suppose it shall be made that within fifteen days thereafter, the defendants shall plead to the declaration?
“Mr. B— I think as far as the defendants are concerned, I think if the plaintiffs elect to file a declaration on the law side of the court, to simply comply with the rule.
“Mr. J— Within fifteen days from the date of service of declaration upon the defendants, they shall plead.”
Plaintiffs’ declaration was thereafter filed and served on defendants’ counsel who promptly appeared specially and interposed the motion to dismiss involved in this controversy.
The excerpt quoted from argument of defendants’ counsel in the chancery suit when pressing their motion for dismissal of the bill — urged here as evidencing admission of jurisdiction should the case be referred to the law side of the court — seems somewhat out of tune with the avowed purpose of his motion and rest of his argument in support of it, but we do not discover that counsel ever resorted to the suggested expedient of asking “the court to transfer the matter to the law side of the court,” or intimated what course defendants would adopt if the court did so. The most it amounted to was random intimation that the court might make the transfer rather than grant the motion for dismissal.
When the question of time to plead came up after order of transfer was made the stipulation on that subject contained no assurance of what issues defendants might raise after plaintiffs’ declaration was filed. By reference to the rule defendants’ counsel intimated, if anything, that they would stand upon their rights, whatever they were. Until plaintiffs’ declaration was filed on the law side of the court there was nothing defendants could plead or object to. We find nothing in what transpired at the hearing of defendants’ motion to dismiss the bill which waived any rights they might have after the case was transferred.
“By making the order of transfer the trial judge does not circumscribe the issue on the law side or determine in advance the questions which may be there raised.” Banks v. Wayne Circuit Judge, 221 Mich. 147.
Defendants’ motion to dismiss for want of personal jurisdiction over them was well founded. The writ asked for is therefore granted.
Clark, C. J., and McDonald, Bird, Sharpe, Moore, Fellows, and Wiest, JJ., concurred. | [
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Sharpe, J.
In February, 1924, Samuel and Annie Feldman, being the owners in fee of the Roe Hotel located in the city of Detroit negotiated a mortgage loan from the American Loan & Trust Company for $75,000. A series of first mortgage bonds were signed by Samuel Feldman and a mortgage upon the hotel property was executed by Samuel Feldman and his wife to secure the loan.. The bonds were sold to the public generally. By virtue of several recorded assignments the record title to the mortgage became vested in the Equitable Trust Company, one of the defendants herein. Said mortgage contained the usual power of sale on default and provided, among other things, for acceleration.
On September 15, 1930, Feldman and wife conveyed their title to the property to their son, Benjamin Feldman, plaintiff herein, who did not assume the mortgage debt.
On May 12, 1932, the trust company obtained a loan from the Reconstruction Finance Corporation in the amount of $150,000 and for security pledged some of its assets, including $42,000 worth of the bonds of this issue owned by it. These bonds were delivered to the Reconstruction Finance Corporation together with an assignment of the interest of the trust company in the mortgage. Said assignment was given as security only and was not recorded. The remainder of the bonds issued were deposited by the bondholders with the trust company, as trastee. At a later date, the $42,000 worth of bonds were released from the pledge by the Reconstruction Finance Corporation and returned to the trust company. On August 1, 1932, proceedings were instituted by the trust company to foreclose the mortgage by advertisement in accordance with the power of sale contained in the mortgage. At this time plaintiff was in default in the payment of taxes in excess of $11,000 and there were $71,000 worth of bonds outstanding.
Pursuant to the notice, the sale was held October 27, 1932, and the trust company bid in the property for $30,000. On October 19, 1933, plaintiff filed a bill in chancery in which it is claimed that the mortgage foreclosure sale was void because the amount bid at the sale had not been paid to the sheriff; and that, if the court holds the mortgage valid, plain tiff then seeks relief provided nnder the moratorium laws (Act No. 98, Pub. Acts 1933). The trial court held the foreclosure of the mortgage valid and dismissed plaintiff’s bill of complaint. Plaintiff appeals.
We are not in accord with plaintiff’s theory that at a sheriff’s sale or upon a foreclosure by advertisement, the amount of the bid by the holder of the mortgagee interest must be paid to the sheriff. On the contrary this rule holds good only where the amount bid is in excess of the unpaid balance on the mortgage.
In Griffin v. Union Guardian Trust Co., 261 Mich. 67, we said:
“On the sale the premises were purchased by the defendant mortgagee for the actual amount due. There was no other bidder. The amount of the bid was -not paid to the sheriff who conducted the sale. For that reason the plaintiffs contend the sale was invalid.
“The amount bid did not exceed the mortgage indebtedness and expenses of sale. There was no surplus. Actual payment to the sheriff would have been an idle gesture.”
The principal question involved in this cause relates to the legality of the foreclosure proceedings; namely where a mortgagee and trustee under a $75,000 mortgage is the owner of $42,000 worth of bonds and pledges them as collateral security to a loan with the Reconstruction Finance Corporation and executes an assignment of its interest in the mortgage, which assignment is not recorded, and the mortgage is foreclosed under the name of the mortgagee, are such proceedings void?
Section 14426, 3 Comp. Laws 1929, provides in part as follows:
“To entitle any party to give a notice as hereinafter prescribed, and to malee such foreclosure, it shall be requisite, * * *
“3. That the mortgage containing such power of sale has been duly recorded; and if it shall have been assigned that all the assignments thereof shall have been recorded.”
And 3 Comp. Laws 1929, § 14428, provides:
“Every such notice shall specify, 1. The names of the mortgagor and of the mortgagee, and the assignee of the mortgage, if any.”
In Dohm v. Haskin, 88 Mich. 144, we had occasion to construe 3 Comp. Laws 1929, § 14426 , and held that the provisions of the statute relating to foreclosure by advertisement must be strictly complied with, while in Oades v. Standard Savings & Loan Ass’n, 257 Mich. 469, we held that the requirements of 3 Comp. Laws 1929, § 14428, which provides that the notice of foreclosure by advertisement shall specify the names of mortgagor and mortgagee and assignee of the mortgage, are mandatory.
Plaintiff contends that the power of sale and the right to foreclose the mortgage are vested in the assignee whether such assignment be absolute or for security, while the defendant contends that the holder of an unrecorded assignment has no right to foreclose by advertisement and that the holder of the record title is the only proper party to institute such proceedings.
The statutes of the State of Minnesota relating to foreclosure of mortgages by advertisement are identical to the Michigan statutes and in that State this question has been decided.
In Dunning v. McDonald, 54 Minn. 1 (55 N. W. 864), the court said:
“The statute contemplates that it shall he exercised by the person or persons in whom it resides,— that is, by the holder or holders of the legal title to the mortgage, Bottineau, v. Ætna Life Ins. Co., 31 Minn. 125 (16 N. W. 849), — provided he or they be qualified to exercise it, by his or their title having been made matter of record; and if there be an assignment of a part interest to one whose assignment is not of record, as he cannot exercise it, and the joining of his name to the foreclosure proceeding can add nothing to it, his name need not be joined, but the power must be exercised by the owner of the remaining interest, who is qualified by his title appearing of record. That is, in the case of an assignment, the power is not to be deemed as fully vested in the assignee, so that he may foreclose, or so that he must join with the others in foreclosing, until his assignment is recorded.”
In Soufal v. Griffith, 159 Minn. 252, 255 (198 N. W. 807), the court said:
“In that view we concur. The statute concerning foreclosure by advertisement (G. S. 1913, § 8108), requires as a condition precedent to that procedure a recording of the mortgage, and all assignments. It is the plain intent, of that statute that it is a condition precedent to the right to foreclosure by advertisement that the title of an assignee of a mortgage appear of record, and of record in such manner that evidence extraneous to the record will not be needed to put it beyond reasonable question. This is not a requirement of supertechnical niceties and details of description. It means only that, the ordinary rules of evidence and interpretation considered, if the record, without the aid of extraneous evidence, does not put the title of the assignee of a mortgage beyond doubt, he cannot foreclose by advertisement. If he cannot remedy the defects in the record, he must resort to foreclosure by action.”
In the case of Bottineau v. Ætna Life Ins. Co., 31 Minn. 125 (16 N. W. 849), one Frederick F. Day was the record owner of a mortgage. There were several outstanding unrecorded equitable interests. Day foreclosed by advertisement and the mortgagor, Bottineau, attacked the regularity on the ground that Day was not the sole owner of the mortgage and not entitled to foreclose. The court clearly held that Bottineau, the mortgagor, had no right to raise the claim. The court said:
“The mortgagor whose interests were not affected by the fact that others had equitable rights in the mortgage with the one in whom the legal title was vested could not on that fact alone object to his using such legal title. So far as concerns that objection, the foreclosure was valid.”
See, also, Solberg v. Wright, 33 Minn. 224 (22 N. W. 381).
In 3 Jones On Mortgages (8th Ed.), p. 825, § 2314, it is said:
“The.power of sale in a mortgage is indivisible, and a partial assignment thereof does not pass to the assignee the right to execute the power, but the mortgagee must exercise the power for the benefit of both parties.”
Having determined that the defendant company is the only party having the right to foreclose the mortgage by advertisement and such foreclosure being regular and in accordance with the statute, the con elusion is inevitable that plaintiff’s bill of complaint must be dismissed.
The decree of the lower court is affirmed. Defendants may recover costs.
. Fead, C. J., and North, Wiest, Btjtzel and Bushnell, JJ., concurred. Tot, J., took no part in this decision. Potter, J., did not sit.
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North, C. J.
Plaintiff’s decedent was killed in an auto accident August 25, 1931. It is charged in plaintiff’s declaration that defendant’s negligence caused the accident and damages are sought. This suit was started by summons issued June 29, 1934, returnable August 3, 1934. Service of the original summons was not obtained. The three-year period of limitation within which to bring suit (3 Comp. Laws 1929, § 13976, subd. 2) expired August 25, 1934. Return of the original summons was not filed until November 14, 1934, at which time an alias was requested. The alias was issued November 20,1934, but it was not placed in the sheriff’s hands for service until February 7, 1935. Service was obtained four days later. Thereafter defendant entered a special appearance and moved to dismiss, asserting that he had not been served with “lawful process;” that no declaration had been filed though more than 15 days had elapsed since the suit was commenced (Court Rule No. 27, § 1 [1933]); and that plaintiff’s suit was barred by the statute of limitations. On the same day plaintiff filed his answer to defendant’s motion to dismiss (March 2,1935), the declaration was filed. On July 9, 1935, the circuit judge denied defendant’s motion to dismiss. Leave having been granted, defendant has appealed.
The meritorious question is whether plaintiff’s cause of action is barred by the three-year limitation provided in 3 Comp. Laws 1929, § 13976, subd. 2. The answer hinges on whether there was such a continuity in the prosecution of plaintiff’s suit after the return day of the original summons as tolled the running of the statute. Defendant resided in the county where suit was instituted and was an instructor in a high school. No justification appears in the record for the delay in obtaining service of process. The return day of the original summons was 22 days before the expiration of the statutory limitation period. During this time there was no issued summons of which valid service could have been made. The life of the original summons placed for service in the hands of a constable in an adjoining county had expired. For over five months after the date on which the statutory limitation ran no suit was pending against defendant. No live process was in the hands of any person for service from August 25, 1934, to February 7, 1935. The return of non-service of the original summons was not made until November 8, 1934, and filed six days later. The return consists merely of the constable’s sworn statement “that he was unable to serve the attached summons upon DeForest Boss, the defendant named therein.” The alias summons, issued November 20, 1934, was not given to the sheriff for service until the following February 7th. The record contains no showing of justification for such delay. Service was obtained February 11, 1935, but this was five and a half months after the statute of limitations had run. The original summons was not returned with anything like reasonable promptness after the return day stated in the process. Such delay is not excusable merely because a court rule provides for the issuance of an alias summons within ten days after the return of previous process unserved. Court Rule No. 13, § 2 (1933). Surely the orderly prosecution of a suit necessitates reasonable diligence in attempting to obtain service of process and in making the return regardless of whether service of process is obtained or is not obtained before the return day. In this connection see 3 Comp. Laws 1929, § 14101.
In addition to the foregoing the alias summons in the instant case was not placed in the hands of anyone for service until two and a half months after its belated issuance. The period of limitation fixed by the statute cannot be extended by such inexcusable and dilatory tactics. Parker Bros. Co. v. Railroad Co., 242 Mich. 214.
Defendant’s motion to dismiss was proper under our practice. See Court Rule No. 18 (1933). The circuit judge was in error in denying defendant’s motion, and his order must be reversed. Plaintiff’s suit is dismissed without a new trial. Costs of both courts to the defendant.
Fead, "Wiest, Butzel, Bushnell, Sharpe and Toy, JJ., concurred. Potter, J., did not sit. | [
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Fead, J.
Benjamin Abramovitz died April 3, 1934, survived by his widow, Katie, a daughter Ethel, and three sons, Leo, Lewis and Morris. His estate consisted of four parcels of real estate, two of which he owned in common with Leo. At the time of hearing in probate court it appeared that some sort of a lien on the property owned solely by deceased had been foreclosed and the only property left to be administered was that held in common with Leo.
November 6, 1935, Leo was appointed special administrator. He filed a petition for appointment of himself or some other suitable person as general administrator. At the hearing in probate court the attorney for the widow orally objected to Leo’s appointment and nominated I. Ernest Sachs. There was no testimony taken upon Mr. Sachs’ qualifications. After hearing the evidence, the court entered an order that the widow was an unsuitable person to administer the estate and appointed John W. Babcock, a disinterested attorney, whose suitability is not questioned by the parties.
The widow appealed to circuit court where further testimony was taken without objection and the court entered an order confirming the appointment of Mr. Babcock. The widow appeals, claiming the statutory right of appointment of herself or her nominee.
At the hearings it developed that there was a family controversy, with the mother and daughter on one side and the sons on the other. After the death of Benjamin, Ethel, under direction of her mother, collected the rents of the property, aggregating $5,407, put the money into her own private bank account, intermingled it with her own funds and, after the appointment of Leo as special administrator, refused to account to him or to cease collecting rents. She has made no offer to account to Mr. Babcock. The mother has supported the daughter in her conduct. The family feeling has become so bitter that Leo and one of the other sons testified that they considered their mother dishonest ; and Ethel said Leo tried to collect the whole rent for the property held in common on the unfounded claim that his mother had so authorized him. Although counsel worked diligently to that end, the parties refused to agree upon a disinterested administrator, each insisting upon his own choice.
Appellant’s contention is that, under the statute, she has absolute right of appointment or nomina tion in tlie absence of showing of her own incompetency, and no such showing’ was made.
3 Comp. Laws 1929, § 15586, provides:
"Administration of the estate of a person dying intestate shall be granted to some one or more of the persons hereinafter mentioned, and they shall be respectively entitled to the same in the following order:
"1. The widow, husband or next of kin, or a grantee of the interest of one or more of them, or such of them as the judge of probate may think proper, or such person or persons as the widow, husband, next of kin or grantee may request to have appointed, if suitable and competent to discharge the trust. ’ ’
This statute confers upon the widow a right of preference which, however, is not absolute. Its incidents are set out in Re Morgan’s Estate, 209 Mich. 65:
‘ ‘ This statute gives to the widow not only priority amongst relatives who may be appointed but also priority amongst those who may request the appointment .of some other person. Whenever the question has arisen this court has emphasized that right. * * *
"All presumptions are in favor of the person to whom the statute gives preference. Ex parte Small, 69 S. C. 43 (48 S. E. 40). The widow is presumed under her statutory right to be competent and suitable, and is presumptively entitled to her choice as to who should administer her husband’s estate. Grece v. Helm, 91 Mich. 450. It follows that the burden of proof rests on those contending to the contrary. That some discretion rests in the probate court there can be no doubt. If a fair issue of fact was raised by the evidence of those denying the widow’s competency because of unsound mind, lack of normal understanding or average intelligence, intemperance, dishonesty or want of integrity, dissolute habits or other disqualifying moral delinquencies, the discretion of the probate court can readily be conceded. No such questions are raised here. ’ ’
The reason for the preference was stated in Re Berner’s Estate, 217 Mich. 612, 615:
“The object of the statute is the interest of the estate, hence, the placing of administration in the hands of a distributee, a person most likely to convert the property to the best advantage of those beneficially interested. ’ ’
In addition to these, there are certain other fundamental considerations which may move the probate court in the appointment of an administrator. An administrator occupies the position of a trustee for the persons interested in the estate. 11 R. C. L. p. 23. It is also true, as was said in Ex parte Small, 69 S. C. 43 (48 S. E. 40):
‘ ‘ The law provides administration as a means for the collection and distribution of assets. The right of those interested to have collection and distribution according to law is the dominant right; the right of any particular person to take charge of the assets is a secondary right. If the allowance of the claim to exercise this secondary right would result in defeating* the main purpose to be attained, it must be refused.”
When the heirs are in dispute over the property, profess lack of confidence in the honesty of each other, engage in mutual recriminations and accusations of obtaining* or attempting material advantage from the estate and are unwilling to agree that an impartial person shall administer the property, the court is justified in holding the nominee of any of them “unsuitable” because his appointment could hardly fail to provoke suspicion, cause dissension and incite probable litigation to the injury of the estate. The disadvantages of such appointment are here increased because the estate now consists substantially only of the property in which Leo, one of the contenders, has a personal interest. The appointment of a disinterested administrator harms no one and is to the advantage of all. Under the circumstances, the court had jurisdiction to appoint a disinterested administrator. In the Matter of Estate of Thomas, 167 Wash. 127 (8 Pac. [2d] 963, 80 A. L. R. 819) and note; Carpenter v. Wood, 131 Mich. 314.
Order affirmed, with costs.
North, C. J., and Wiest, Butzel, Bushnell, Sharpe and Tot, JJ., concurred. Potter, J., did not sit. | [
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Sharpe, J.
Plaintiffs filed petitions for writs of mandamus in the superior court of Grand Rapids asking that they be reinstated in active service as patrolmen in the police department of the city of Grand Rapids as of May 20, 1935, and that an order be entered requiring the defendants to pay them their full salary from and after May 20, 1935.
The city of Grand Rapids operates under a char-’ ter which contains the following provision:
Title 7, § 1. “The civil service board of the city shall be composed of seven members, three of whom shall be members of the city commission to be appointed on the first Monday in May each year, by the mayor, one from each ward. The remaining four members shall be resident taxpayers of the city of Grand Rapids, distributed among the several wards of the city as nearly as is practicable. They shall be appointed by the city commission on the first Monday in May and shall hold office for four years. All members shall serve without compensation.”
The following civil service rule and regulation was in force prior to May 15,1935:
Rule 11. § 1. “Whenever any permanent position in the competitive class is abolished or made unnecessary, or whenever the number of positions of a certain character are reduced, the person or persons legally holding such positions shall be deemed to be suspended without pay, and the names of such persons shall, on due notification from the appointing officer, be placed by the board on a special list, under such classified title and corresponding to such competitive eligible list, as in the judgment of the board, most clearly cover the class of duties performed by such persons in the positions from which suspension is made, but no person who has received a permanent appointment shall be suspended from any position for lack of work or appropriation while probationers serving under the same title are employed in the same department, office or institution. For a period of one year from the date of suspension such persons shall be entitled to reinstatement in any position, or any grade of such positions, for which, certification from snch corresponding eligible list might be made, and the chief examiner shall certify their names to the proper appointing officer as entitled to snch reinstatement, in the order of the dates of their original appointment to the classified service, before certification is made from such corresponding eligible list for any such vacancy; provided that such persons shall be selected for certification, first, for a position the same as that from which suspension was made, if the vacancy exists in such a position, and, second, for corresponding or similar positions.”
On May 15, 1935, the civil service board adopted the following resolution:
“Whereas, because of the financial emergency now confronting the government of the city of Grand Rapids, which makes necessary a substantial, unprecedented and immediate reduction in the number of municipal employees, and
“Whereas, in the reduction of the number of employees, the utmost care and good judgment should be employed to the end that both the best interest of the city and the welfare of the employees shall be fully safeguarded and all parties in interest shall be treated with the utmost fairness possible under the circumstances;
“Now, therefore, be it resolved, That the selection of those employees, who, because of such emergency, must be suspended without pay, as provided by rule 11 of the civil service rules and regulations, shall be made by the majority action of the city manag'er, the head of the department involved, and a member of the civil service board, to be selected by said board:
“The foregoing resolution to stand as an amendment to said rule 11 for a period of one year from and after the date of its adoption. ’ ’
On May 18, 1935, 16 of these appellants were suspended as patrolmen from the police department of Grand Rapids, each man being handed a letter which read as follows :
“By reason of the curtailment of the city’s budget for the current financial year, which commenced the 1st of April, it is necessary to drastically reduce the city’s expenditures, and in this connection the city commission has ordered that the police department be reduced to a total of not to exceed 200 men.
“For this reason it is necessary that I give you notice of suspension as of May 20, 1935. Owing to this short notice, I am recommending two weeks’ pay be given you, dating from May 20th, which you will receive in the regular course. This will cover your two weeks’ vacation.
“This action places you on the eligible list in accordance with the civil service regulation, and should the department be expanded, you would be eligible for reappointment without examination, during the period provided by rule.
“I regret the necessity of this action.”
On June 1, 1935, rule 11 was amended as follows:
“In cases of reductions in the number of employees on account of insufficient funds or otherwise, necessary demotions and dismissals shall be made in order, beginning with employees having the lowest ratings in each class, but honorably discharged soldiers and sailors shall be given preference over those of equal rating in selecting employees for retention. Said classes shall be based upon the number of and nature of suspensions, number of years in' the service of the city, violations of departmental rules and regulations, and the rating as to efficiency given by his superior officers.”
On July 1, 1935, the board was presented with a report outlining’ the system employed in rating the patrolmen of the police department. The report contained a list of 29 men to be dismissed as of July 2, 1935; and on the latter date seven more of the plaintiffs received notice of their suspension. On July 15, 1935, plaintiffs filed a petition for reinstatement, but the board refused to act upon the petitions, claiming they had no jurisdiction inasmuch as the dismissals were made for reasons of economy and no charge having been filed against any of plaintiffs.
Individual petitions for writs of mandamus were filed in the superior court of Grand Rapids seeking reinstatement and for salary during the time of the claimed unlawful suspension. The causes were consolidated, and the cause tried in October, 1935. In February, 1936, the trial judge filed an opinion denying plaintiffs the relief sought, holding that the procedure adopted by the board was unnecessary;' that the city manager had made a good faith determination to reduce the personnel of the police department; and that the method employed of selecting the men for suspension was proper because the ground for removal was not personal to any plaintiff.
Plaintiffs appeal and contend that the testimony does not support the finding of the lower court that there was no bad faith on the part of the city officers responsible for the suspension of plaintiffs; that the method of selecting plaintiffs for dismissal was improper; and that the city officials were without authority in dismissing four of plaintiffs who are veterans and, as such, are entitled to the benefits of the veterans’ preference act (1 Comp. Laws 1929, § 900 et seq. as amended by Acts Nos. 66, 67, Pub. Acts 1931).
Authorities universally sustain the proposition that a city can dismiss a civil service employee by abolishing the position which the employee holds. Smith v. Flint City Commission, 258 Mich. 698, and eases cited therein; and that a city may abolish a position for bona fide reasons of economy, Slavin v. City of Detroit, 262 Mich. 173. It is conceded by plaintiffs that if an office or position in the city government is abolished for bona fide reasons of economy, the holder of that position is not entitled to a hearing before the civil service board under the civil service provisions of the city charter; and that the city manager is the person to decide how many patrolmen should be at any given time in the police department.
Considering- these general principles of law in connection with the charter provisions above mentioned, we come to the conclusion that the principal issue involved in this cause is the matter of good faith on the part of the city officials in making the dismissals complained of. We think the trial court came to the correct conclusion in finding an absence of bad faith on the part of the city officials in reducing the police force. It is significant that after the dismissal of plaintiffs, no officers were appointed or hired to take their place.
In State, ex rel. Voris, v. City of Seattle, 74 Wash. 199, 204 (133 Pac. 11, 4 A. L. R. 198), it is stated:
‘ ‘ The council having the right to abolish the position occupied by relator, it would be an unwarranted. usurpation for the courts to go beyond the question of good faith of that body. We find nothing in the record to overcome that presumption of regularity and integrity which attends every act of a co-ordinate branch of the government. If there was anything proven that would challenge the good faith of- the council, the fact that five positions were abolished in the ordinance which abolished the relator’s position is a sufficient answer, and enough to sustain our holding that the motive of the council was pure and prompted by a disposition to work economy. ’ ’
One of the grounds upon which plaintiffs rely in showing bad faith is that in the preceding year the city had a surplus of approximately $388,000 and the salary of the patrolmen remaining in the force was increased $100 per year. The fact that salaries have been raised is not evidence of bad faith. It is common knowledge that since May, 1935, living expenses have increased. The fact that the city had a surplus in its treasury at the time of the dismissal of plaintiffs is no reason why the police force may not be reduced or the personnel of other departments reduced to conform to a general policy of economy in the operations of the city government.
As is stated in Smith v. Flint City Commission, supra:
“When the municipal officers of a city, vested by the Constitution and laws of the State with the right, power, and authority to administer local self-government, in good faith, reduce the police force of the city, abolish offices, consolidate departments, cut expenses, and seek to balance their budget, neither the legislature nor the court may control their action.”
See, also, People v. Gardner, 143 Mich. 104; People, ex rel. Ellis, v. Calder, 153 Mich. 724 (126 Am. St. Rep. 550); and Calder v. State of Michigan, 218 U. S. 591 (31 Sup. Ct. 122).
It is next claimed that it was necessary for the city to follow the so-called rule of seniority in abolishing positions, namely, that the city should abolish the positions of patrolmen last hired. An examination of the city charter does not bring to light any rule that requires the city to follow the seniority rule.
See, Powers v. City of Asheville, 203 N. C. 2 (164 S. E. 324); and Leary v. Philadelphia, 314 Pa. 458 (172 Atl. 459).
Plaintiffs contend that the discharge of four veterans from the department was in violation of the veterans ’ preference act, 1 Comp. Laws 1929, § 901, as amended. In Smith v. Flint City Commission, supra, we quoted with approval the following:
“ ‘Notwithstanding these statutory restrictions and qualifications of the power to remove, a veteran, holding a position or employment under a city, may be discharged without notice when it is done in good faith and because of lack of work for him to do, or for reasons of economy, or because the office or position has been abolished.’ 1 Dillon, Municipal Corporations (5th Ed.), §408.”
In Owen v. City of Detroit, 259. Mich. 176, we said: .
“The statute does not circumscribe the right of proper municipal officers to abolish positions or employments and thereby remove veterans ‘in the absence of bad faith or subterfuge intended to defeat the statutory preference. ’ Swantush v. City of Detroit, 257 Mich. 389; Smith v. Flint City Commission, 258 Mich. 698.”
Our conclusion is that the veterans’ act has no application to the facts involved in this cause. The order of the lower court denying plaintiffs’ petition for writs of mandamus is affirmed, without costs.
North, C. J., and Fead, Wiest, Buteel, Btjshnell and Toy, JJ., concurred. Potter, J., did not sit. | [
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McAllister, J.
Plaintiff, employed by defendant as a laborer in wrecking work, fell from- a four-story building on February 28,1929, and sustained serious injuries, for which he was paid $18 per week compensation for total disability by agreement approved by the department of labor and industry on March 30, 1929. On March 8, 1930, plaintiff entered into an agreement for payment of partial disability compensation at the rate of $3.34 per week for 448 weeks. Three days later he petitioned for a lump sum settlement which the department of labor and industry approved, and plaintiff accepted a lump sum of $1,500 in lieu of the weekly payments. On October 31,1938, plaintiff filed a claim for compensation for total disability for the period subsequent to the approval of the agreement for the lump sum payment. The department found that plaintiff was totally disabled at the time of the hearing, but that there had been no change in his physical condition, because he had been totally disabled at the time the award was made on the lump sum agreement.
The above finding is contrary to the award approving the agreement which was based upon partial disability. But the contention of counsel for plaintiff that the department is bound by the approved agreement—which has the same legal effect as an award— and that the subsequent finding of total disability, in itself, shows a change of condition, cannot be determined in this case; nor can the question of whether the agreement was predicated upon the possibility of rehabilitation be passed upon. The plaintiff did not file his petition for further payments until after the expiration of 500 weeks from the date of the accident. Under the authority of Kiviniemi v. Quincy Mining Co., 286 Mich. 680, the power to review payments ceases when plaintiff has recovered the maximum number of weekly payments mentioned in the statute, whether it be for partial or total disability. "While plaintiff did not receive the payments weekly, he received a lump sum for weekly payments covering the maximum period mentioned in the statute, and did not file his petition until after the expiration of the actual period of 500 weeks from the date of the accident. The department recited in its findings that plaintiff had filed his petition shortly prior to the expiration of the period of 500 weeks from the date of the accident. But there is no dispute as to the dates and such finding is obviously a mistake.
Plaintiff’s petition was not filed within the provided time.
The order is remanded for correction of the above-mentioned date in the finding of the department, and, in all other matters, affirmed, with costs to defendant.
Bushnell, C. J., and Sharpe, Potter, Chandler, North, Wiest, and Butzel, JJ., concurred.
See 2 Comp. Laws 1929, §§8425, 8426 (Stat. Ann. §§17.159, 17.160).—Reporter. | [
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Chandler, J.
Plaintiff sustained an accidental injury on October 17, 1934, and was paid compensation therefor to January 16, 1935, at which time an agreement was executed suspending further payments.
On March 16, 1936, he filed a petition for further compensation, which was denied by the department of labor and industry on the ground that he had failed to show a change in his physical condition that had lessened his wage-earning capacity since the approval of the agreement suspending payments. Application for leave to appeal in the nature of certiorari was denied by this court on September 9, 1936.
On July 26,1938, plaintiff filed the bill of complaint herein, praying that the agreement suspending compensation be set aside on the ground that a mutual mistake of fact existed at the time of the execution thereof, and for an accounting relative to the amount of compensation due. This appeal is from the decree of the trial court dismissing the bill.
The bill alleges that plaintiff has been totally disabled since the date of the accident, and that the agreement suspending compensation was entered into under a mistaken belief that he would eventually recover from the effects of the accident, although a recovery had not occurred at the time the agreement was signed. The bill further alleges that the agreement was executed under the mistaken belief that if he did not recover, he would be entitled to further compensation.
We find, as did the trial court, that it is unnecessary to pass upon plaintiff’s claims as alleged in the bill of complaint or the proof in support thereof. He has a remedy at law, if disabled, to procure further compensation without the necessity of setting aside the agreement suspending payments.
Review by certiorari of the award denying further compensation was refused by this court prior to the decision of DeTroyer v. Ernst Kern Co., 282 Mich. 689, wherein an agreement containing identical provisions as that in the instant case was involved, and wherein we held that upon execution of such an agreement at a time when disability still existed, it was not thereafter necessary for the employee to show a change in physical condition to entitle him to further payments.
Plaintiff claims he was induced to sign the agreement because of the representations of his physician. Defendants claim that he signed to avoid hospitalization. This dispute is of no importance. If he is disabled, he can petition the department of labor and industry for further compensation. The agreement in question would be no bar to his recovery.
The decree is affirmed, with costs to defendants.
Bushnell, C. J., and Sharpe, Potter, North, Mc-Allister, and Butzel, JJ., concurred with Chandler, J. Wiest, J., concurred in the result. | [
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Bushnell, C. J.
Plaintiff Agnes Kerwin is tbe widow of Captain Richard Kerwin, who became a member of the Port Huron police department in 1895 and was promoted to the rank of captain in 1907. According to the testimony of Lieutenant Dingwell, who served with Captain Kerwin, the Captain “was slowing up” along in 1925, and Lieutenant Mills was. appointed Captain in his place. Kerwin thereafter acted as officer in the court room of the city court. While on active duty as a police captain, he received a salary of $180 per month, and as court officer was paid $150 per month. He was carried on the pay rolls as court officer until April 16, 1937, when he was either retired or placed on leave at a salary of $82.50 per month, which he drew until his death on October 18,1937. His widow received the sum of $82.50 per month until March 15, 1938, when her pension was reduced to $45.48 per month, and on December 28th to $41.25 per month.
Claiming that the present rate of pay for a captain of police is $177 per month, plaintiff filed a petition in the circuit court for a writ of mandamus requiring the mayor- and commissioners of the city to pay her a pension of $88.50 per month. Proofs were taken which disclosed that the amounts paid plaintiff had been determined by various resolutions of the city commission, under its interpretation of the city charter. Testimony was presented as to the duties performed by the late Captain Kerwin, his rank and pay, including a commission issued to him on January 1, 1935, by C. L. Boynton, then commissioner of public safety, appointing Kerwin to the position of captain in the Port Huron police department, to date from December 15, 1895. The circuit court issued a writ of mandamus requiring the defendants to pay petitioner the sum of $88.50 per month and, in addition, the difference between that amount and previous payments, in accordance with the provisions of chapter 14 of the charter of the city of Port Huron, payment of arrearages and future payments subject, however, to a deduction of one per cent, as provided in the charter.
A motion to reopen the proofs and consider the question of jurisdiction was denied, the court filing a written decision to the effect that the motion raised a new issue.
On appeal, defendants contend that the circuit court was without jurisdiction to issue the writ and that the same should be set aside. Appellee contends that the writ should be sustained, having been supported by sufficient testimony, and that the challenge to the jurisdiction, not having been raised prior to judgment, cannot be considered on appeal.
The question of jurisdiction can be raised at any stage of the proceedings. Warner v. Noble, 286 Mich. 654, and authorities collected at page 659. In Township of Warren v. Raymond, 291 Mich. 426, the court said:
“The question of lack of jurisdiction is open on appeal notwithstanding it was not raised in the trial court.”
Decision is controlled by McCarthy v. Couzens, 214 Mich. 501. In that case the widow of a deceased fireman sought a pension to which she claimed she was entitled because her husband had died from in juries received in the discharge of his. duties and within one year thereafter. After a hearing, the fire commission denied her petition and a subsequent petition for rehearing was denied by the pension committee of the fire commission. A writ of mandamus was issued by the circuit court of Wayne county, requiring the committee to grant the pension. This court held that the question presented to the commission was one of fact and the commission and its successor, the pension committee, were performing a quasi-judicial rather than a ministerial function; that their action could be reviewed by the circuit court only on the basis that it was arbitrary, capricious, unreasonable, and contrary to the established facts; and that, in the absence of such showing, the action of the commission must be deemed final and not reviewable because there was no provision in the charter of the city of Detroit for such review on appeal. See, also, authorities collected in 117 A. L. R. p. 1408.
In the present case it is contended that the Port Huron commission acted in a ministerial capacity only, and did not grant plaintiff a formal hearing. In any event, defendants were required to determine such questions of fact as how long plaintiff’s decedent had served in the police department, his rank, and that in which he was serving at the time of his retirement, et cetera. Under this view of the situation, in the absence of any provision for appeal or review from the commission’s findings and of allegations or proof of any arbitrary, capricious, or unreasonable action on the part of the commission, the circuit court was without jurisdiction to issue its writ of mandamus.
The order is vacated, but without costs.
Sharpe, Chandler, North, and Btjtzel, JJ., concurred with Bushnell, C. J. | [
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North, J.
Plaintiff, as administratrix of the estate of George Perch, seeks to recover damages arising from a railroad crossing accident which caused the death of her husband, Mr. Perch. Shortly before 1 o’clock on the morning of May 13,1937, plaintiff’s decedent was driving a Dodge automobile north on Lonyo road in the city of Detroit. This road runs north and south and is intersected at right angles by six sets of tracks of the defendant railroad company. As plaintiff’s decedent, proceeding in a northerly direction, approached defendant’s tracks, the railroad crossing gates were down and one of defendant’s westbound passenger trains was approaching. Mr. Perch stopped his car. As his car stood about 25 feet south of the crossing gates, another automobile driven in a negligent manner by one Roy Walton struck the Perch car in the rear with such force that it was knocked through the gates, across four sets of intervening tracks and came to rest on the fifth set of tracks upon whieh the train was coming. It was approximately 92 feet from the point where the car of plaintiff’s decedent was standing south of the gates to the point where it stopped on defendant’s westbound main track. Upon trial by jury plaintiff had verdict and judgment was entered thereon. Defendant contends that the proximate cause of this accident was the negligent act of Roy Walton, in consequence of which he was tried and convicted of the crime of negligent homicide. On this appeal appellant claims its motion for a directed verdict and its later motion for judgment non obstante veredicto should have been granted on the ground that as a matter of law Walton’s negligence was the proximate cause of the accident. The sole question is whether this contention on the part of appellant is correct.
These additional facts are pertinent. As the automobile which plaintiff’s decedent was driving was standing south of the railroad gates, defendant’s train was approaching approximately 800 feet from the crossing and at a rate of speed in excess of 45 miles per hour. For a distance of 315' feet east of the center line of Lonyo road defendant’s track is straight, but beyond that point it veers to the northeast on a three-degree curve. Because of this curve the headlight of the locomotive approaching* Lonyo road was shining south of the crossing and did not light the place where the automobile came to a stop on the track until the locomotive had passed around the curve and had reached a point directly east of the crossing. But the record discloses there were numerous other lights in the locality which rendered objects on the crossing visible at least to some ex-' tent. The engineer did not see the automobile prior to the impact. The fireman’s view was obstructed by the boiler of the locomotive as it rounded the curve and lie did not see the automobile until practically the instant it was struck. It was at this time that the engineer made a heavy service application of the .brakes; but the train continued to travel a distance of approximately 1,500 feet. The engineer testified that even with the aid of the headlight on the locomotive he could not see more than 500 feet ahead; and further when 700 or 800 feet east of the crossing he could not see the south side of the crossing where the Perch automobile was presumably then standing. The train weighed substantially 1,500 tons, and there is testimony that at a speed of 30 miles an hour it would go from 700 to 1,000 feet after an emergency application of the brakes before coming to a stop, and at 60 miles per hour it would go 2,500 to 3,000 feet before stopping.
As above noted, appellant asserts that under this record the court should have held as a matter of law the proximate cause of this unfortunate accident was the wrong-doing of Roy Walton; but on the other hand plaintiff contends that the proximate cause of the accident was the negligence of defendant’s employees in failing to discover plaintiff’s decedent in his place of danger in time to avoid the accident and also negligence in operating the train at a rate of speed in excess of that provided by the city ordinance, i. e., 30 miles an hour. In this connection plaintiff asserts the collision occurred so soon after the Perch automobile stopped on the track on which the train was approaching- that her decedent did not have time or opportunity to get out of the automobile.
Appellant’s contention that Walton’s negligence was the sole proximate cause cannot be sustained. The trial court, after advising the jurors as to the legal significance of “proximate cause,” instructed them as follows:
“You will observe in order to entitle her to recover plaintiff must establish by a preponderance of evidence: (1) That the defendant was negligent. (2) That such negligence was a proximate cause of the collision between the car which George L. Perch was occupying and the train.”
Clearly there is abundant evidence of negligence both on the part of Walton and of defendant. On this record it cannot be said as a matter of law that the negligence of either was the sole proximate cause. Instead the jury may well have found that the negligence of each of these was. a proximate cause.
“There may be more than one proximate cause for the same injury, and the mere fact that some other cause co-operates with the negligence ■ of the defendant to produce the injury for which suit is brought does not relieve him from liability. 2 Blashfield, Cyclopedia of Automobile Law, p. 1204.” Camp v. Wilson, 258 Mich. 38.
See, also, Fitzcharles v. Mayer, 284 Mich. 122, 128 (3 N. C. C. A. [N. S.] 565).
“It is elementary that where injury results from the concurrent negligence of two or more, each proximately contributing to the result, recovery may be had against one or more.” Banzhof v. Roche, 228 Mich. 36.
“The two contributing causes must be held to be concurring where, as in this ease, * * * the concurrence of both was essential to produce the injury.” Welch v. Jackson & Battle Creek Traction Co., 154 Mich. 399, 408.
Defendant’s alleged negligence, as the jury must have found, continued to the very instant of the impact and injury to plaintiff’s decedent. There was no other intervening independent cause. On this record it cannot be said as a matter of law that defendant was not guilty of the alleged negligence or that such negligence was not a proximate cause of the accident and injury to plaintiff’s decedent.
Defendant in support of its position relies upon Lineberry v. Railway Co., 187 N. C. 786 (123 S. E. 1); Thompson v. Railroad Co., 195 N. C. 663 (143 S. E. 186); and Johnson v. City of Omaha, 108 Neb. 481 (188 N. W. 122). We think each of these cases is readily distinguishable from the instant case. In each of the cited cases a defendant was held hot liable as a matter of law. This conclusion was reached because it conclusively appeared that the sole proximate cause of the injury was the wrongful act or negligence of a third party. In other words, in each case the injury would have been suffered wholly regardless of the negligence charged against the defendant which the court held, as a matter of law, was not liable. There is testimony in this record from which the jury might well have found that both the negligence of Walton and the negligence of defendant were proximate causes of the accident. Further, under the circumstances here presented, it quite conclusively appears this accident would not have happened except as the result of concurrent negligence on the part of both Walton and defendant.
The judgment entered in the circuit court is affirmed, with costs to appellee.
Butzel, C. J., and Wiest, Bushnell, Sharpe, Potter, Chandler, and McAllister, JJ., concurred. | [
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McAllister, J.
This is an action for damages for the alleged breach of a license agreement to pay-royalties on inventions and improvements relating to demountable rim wheel construction. Four patents were originally involved. In Rubsam Corp. v. General Motors Corp., 281 Mich. 691, it was decided that there had been no use by defendant of patent 1. The case was thereafter remanded to circuit court for determination of whether patents 2, 3, and 4 had been used by defendant. On trial, the lower court entered judgment for no cause of action on the finding that there had been no use by defendant of the patents under the license agreement. Plaintiff appeals.
At the outset we are confronted by the question of the meaning and extent of the order of this court remanding the case. It is contended by plaintiff that the only question before the trial court was whether defendant had made use of patents 2, 3, and 4. Defendant maintains that the issue before the court was whether there had been a use of these patents under the license agreement. "When the case was previously before this court, there was a subsequent modification made in the opinion and decision. Plaintiff, by motion, had called the attention of the court to the fact that, although the trial court had determined the question of use of patent 1, there had been no determination of the use of the other patents, and asked for a rehearing. In its application for rehearing, plaintiff pointed out that the circuit court had not ruled upon whether “defendant had adopted the patents 2, 3 and 4 under license ’ ’ and had not decided the question of “use under license of patents 2, 3 and 4;” that “the following questions as to patents 2, 3 and 4 (which, were not passed upon by the trial court), are then presented and must necessarily be decided: (1) Did defendant adopt and acknowledge patents 2, 3 and 4, as improvements described in further patent or patents issued rights (sic — patents or patent rights issued) to plaintiff, and (2) did defendant use the same under license.” In its opinion on motion for rehearing, this court remanded the cause to the circuit court “for determination of the claimed use of the second, third and fourth patents.” Rubsam Corp. v. General Motors Corp., 281 Mich. 716. The “claimed use,” referred to in the above opinion, was the use set forth as one of the questions properly to be decided in plaintiff’s application for rehearing, and was use wider the license agreement. This was the only question with regard to use of the patents that was properly before the circuit court in the instant case.
The granting clause of the license agreement entered into between the plaintiff and defendant is as follows:
“Licensors hereby grant to licensee a license to manufacture or to have manufactured for it, wheels incorporating the invention or inventions as set forth in Patent No. 1,395,362 above referred to, and/or any and all improvements thereon, as described in any further patents or patent rights which may be issued to or acquired by licensors, always excepting any and/or all rights under Patent No. 1,403,439 to Mott, and which licensee may elect to acknowledge as such and use within the United States, and to sell or export the same as equipment on vehicles or replacements or service equipment therefor, subject to the conditions as hereinafter specified.”
The proposition before us on review is whether defendant made use of patents 2, 3, and 4 under the license agreement. In this regard, the trial court held that defendant’s constructions were based upon a prior art and that, therefore, plaintiff could not sustain its claim of use by defendant of its patents.
Plaintiff’s contentions may be briefly summarized in the following statement: that patents 2 and 3 consisted of a vehicle wheel, provided with a demountable tire-carrying rim, and a metallic channel-shaped felly. The felly was adapted to engage or carry the demountable rim. This demountable rim was provided with arcuate indentations arranged circumferentially around it and adapted to engage the periphery of the outer flange of the channel-shaped fixed rim in order to support and center the demountable rim on the felly or fixed rim of the wheel.
Defendant admits the use of a similar construction, but only for the purpose of employing such indentations to center, but not support, the demountable rim on the fixed rim.
A detailed description of the inventions and their purposes has been made in previous cases. Rubsam Corp. v. General Motors Corp., 57 Fed. (2d) 581; General Motors Corp. v. Rubsam Corp. (C. C. A.), 65 Fed. (2d) 217; and it is unnecessary in this case to repeat at length what has already been recited.
Devices for the centering of demountable rims had been previously employed in other inventions. The Baker patent, No. 1,095,953, as early as 1914, employed studs on the rim for the purpose of centering it on the fixed wheel. According to that patent, it was provided that the rim or felly band be provided with fixed metallic studs or projections to properly center the demountable rim upon the wheel when it was placed thereon and to support the several arcs of the rim. It was stated as follows:
“To properly center the rim upon the wheel when it is first placed thereon and to support the several arcs of the rim between the widely separated clamp ing devices I employ a structure or structures by which the rim and the wheel periphery are placed substantially in metallic contact at points intermediate of the several clamping devices, yet not so tightly as to prevent the easy mounting and demounting of the rim. I prefer to accomplish this effect by providing the rim or the felly band with fixed metallic studs or projections.”
The Harbridge patent, No. 1,165,096, of 1915 made use of a tire rim pressed inward at spaced intervals to contact the outer periphery of the felly for the purpose of centering the tire rim upon the wheel body. The patent states:
“Heretofore, it has been the practice to secure plates or studs either on the band or on the rim, or both, to provide bearings for the rim against flexure of the rim between the wedge lugs when the rim is on the wheel. The present invention dispenses with the necessity of these plates by indenting the band * * * to provide bearings for the inner face of the rim and by indenting the rim. * * * These indented portions, besides avoiding the necessity of securing studs or plates to the band or rim, avoid the necessity of drilling the band or rim for attachment of the studs or pivots for the plates. * * *
“Claim 4. The combination with a wheel body having a metallic band thereon, of a tire rim of greater diameter than the periphery of the band to leave a space therebetween, the rim having inwardly extending indented bearing portions for the band spaced from one another and disposed adjacent one’ side of the band, and devices independently of said bearing portions for securing the rim on the band.”
The Manternach patent, No. 1,336,531, of 1920 also had lugs attached to the rim for properly seating it upon the felly.
With these centering devices already patented years before plaintiff’s patents were even applied for, we are of the opinion that the evidence sustained the finding of the trial court that defendant’s use of the devices was a use of-prior art, rather than a use of plaintiff’s patents. Westinghouse Electric & Manfg. Co. v. Formica Insulation Co., 266 U. S. 342 (45 Sup. Ct. 117).
Gonser v. Leland Detroit Manfg. Co., 293 Mich. 196, was a suit for royalties and specific performance of a contract to assign improvements on a meat tenderizer. The plaintiff had invented a device for tenderizing meat, and had licensed it to defendant, together with any and all improvements which either party might make thereon. Defendant constructed a machine, similar in some respects to plaintiff’s, which accomplished the same purpose. Plaintiff, claiming defendant ’s machine was an improvement upon his own, sought specific performance of the contract for assignment. The Court said:
“The main question concerns the construction to be given the contractual expression ‘improvements and modifications of said invention. ’ Did the contract grant to plaintiff every device that defendant might conceive in the art in general, or is this language to be given a more limited scope? Defendant claims that its new machine is for the most part'copied from the prior art, with possibly some new feature on which it is seeking letters patent, and that the contract does not deprive it of the right which it would otherwise have with the rest of the world to partake of the public domain; plaintiff contends, as the trial court found, that ‘defendant undertook to develop a market for a rather special device, and had built up somewhat of a trade through the use of the Gonser patent, and the fruits of such business development was contemplated by the parties to be a valuable right which Gonser had a right to preserve and which the defendant agreed to regard as his own property.’ We think this conelu'sion is erroneous. The tender izing of meat by rollers was not a new art. There were other devices on the market. There was no agreement by defendant not to go into the same line of business before the termination of the contract or not to use old processes open to the public or new ones constituting new inventions; it agreed to regard as plaintiff’s property only improvements ‘of said invention.’ The trial court’s holdings are not in accord with the language of the contract and the decided cases interpreting similar contracts. * * *
“We hold, then, that the trial court was in error in construing the contract before us now as contemplating any machine that defendant might produce which would compete with the very limited market built through the use of the Gonser patent. The terms of the contract do not preclude defendant from entering the somewhat competitive field of manufacture of meat tenderizing machines, nor do we think the contract bars defendant from making use of methods in the public domain of the prior art, or gives plaintiff the right to a new invention which is different from and in no way infringes on the old invention. ’ ’
The question of use or nonuse of a patent under a contract or in an action for infringement is a question of fact and not of law. United States v. Esnault-Pelterie, 299 U. 8. 201 (57 Sup. Ct. 159). We are of the opinion that the determination by the trial court that defendant did not make use of patents 2 and 3 but relied in their construction upon prior art is sustained by the evidence.
With regard to so-called patent 4, the trial court held that defendant’s use thereof was under prior art. This patent was heretofore held to lack invention and to be invalid, in an action for infringement brought by plaintiff in the United States district court for the eastern district of Michigan; and no appeal was taken from such determination. In this regard, plaintiff sought, among other claims of invention, to patent a device for a nonreversible rim by the use of a stud projecting inwardly on the base of the demountable rim and a notch on the felly adapted to accommodate the stud. This device lacked novelty and, in the language of the district court, “this device, once necessity for nonreversibility presents itself, is perfectly obvious and does not involve invention.” According to the agreement between the parties, plaintiff granted defendant a license to manufacture wheels incorporating his first invention and for any and all improvements thereon, as described in any further patents and patent rights which might be issued to or acquired by the plaintiff, and which the defendant might elect to acknowledge as such and use. Defendant denies that it ever elected to acknowledge or use the device as set forth in patent 4. Plaintiff claims that under the opinion of this court it is not obliged to show that defendant elected to use the non-reversibility device because of the fact that in the opinion remanding the previous case, it w;as held necessary only to show use by the defendant and not use under the license agreement. We have already passed upon this contention. Use under the license agreement must be shown. The evidence does not persuade us that there ever was use, express or implied, under the agreement. In its bill of complaint in the infringement suit, plaintiff alleged that pursuant to the license agreement it requested defendant to elect whether it desired to operate under patents 2, 3, and 4 as improvements, or patent 1; and that the defendant refused to elect to do so. Plaintiff further alleged that defendant, without license, infringed the patents, including patent 4. In its answer, defendant denied the validity of the patent and in no manner relied upon the right to use under the license. Although the Federal suit did not amount to an election of remedies between an infringement suit and an action under tbe license agreement, nevertheless tbe sworn bill of complaint and the answer of defendant are of some evidential value in regard to the attitude and understanding of tbe parties in reference to tbe issue before us. It would appear that, if plaintiff claimed any right to bold defendant under a license agreement, it would not have sued defendant as an infringer; and that, if defendant intended to avail itself of tbe license agreement, a defense relying upon tbe agreement would have negatived any recovery by plaintiff for infringement. "When patents 2 and 3 were tendered by plaintiff to defendant for the election to use tbe same under tbe license agreement, defendant refused them on tbe ground that they were not inventions. "When patent 4 was likewise tendered, plaintiff, in writing, also refused use of such patent.
It was determined in Rubsam Corp. v. General Motors Corp., 281 Mich. 691, that defendant bad never made use of patent 1. We have agreed with tbe trial court that defendant did not make use of patents 2 and 3, and that its constructions were based upon prior art. Tbe nonreversibility device in patent 4 lacked invention; and defendant could not be said to be bound to pay royalties for use of such device under tbe terms of license. The pertinent provisions of tbe license agreement in this regard are:
“Licensors hereby grant to licensee a license to manufacture * * * wheels incorporating tbe invention or inventions * * * above referred to, and/or any and all improvements thereon as described in any further patents or patent rights which may be issued to * * * licensors.”
Tbe license agreement may be viewed as an option to defendant to make use of plaintiff’s inventions. If tbe defendant availed itself of tbe option, it would elect to acknowledge the patents and use them, agreeing to pay therefor certain stipulated amounts. If defendant did not elect to use the patents under the license agreement, hut, nevertheless, did actually use them, it would be subject to a suit for infringement of the patent. In effect, then, the license agreement gave the defendant the opportunity to elect to use the patents, on the payment of royalties. But if it did not so elect, it was subject to the same liabilities as an outsider for any unauthorized use. Both plaintiff and defendant relied upon this stipulation, that before the license agreement could become effective with regard to patents 2, 3, and 4, defendant was obliged so to elect, and that any other use by defendant would be that of an infringer. It would appear. that the previous infringement suit was brought against defendant on the theory that it did not so elect, that the license agreement was, therefore, not in effect, and the defendant was liable as an infringer. While, under the license agreement, defendant would he estopped from attacking the patents as invalid, nevertheless, it would not he estopped to show that, although it followed plaintiff’s patents in its constructions, such constructions were, in fact, based upon prior art; and, in any event, the defense could be made that it declined the use of the patents and preferred to take its chances upon liability as an infringer, if plaintiff could establish the validity of the patents and use thereof by defendant.
Defendant never used any of the patents in the license agreement. The nonreversibility device in patent 4 was not an invention. Defendant never elected to use such a device under the license,, and, on the contrary, refused to elect to use it when plaintiff tendered it. Because defendant did not avail itself of the use of any patents under the license agreement, it cannot be held to pay royalties for the use of an obvious and unpatentable device which it used without any relation to any of the patents included in the license, and without any election on its part so to do. The question of defendant’s use of the patents or improvements under the license agreement is one of fact. Motor Wheel Corp. v. Rubsam Corp. (C. C. A.), 92 Fed. (2d) 129. The finding of the trial court that there- was no use of the patents under the license agreement is not against the preponderance of the evidence.
Judgment affirmed, with costs to defendant.
Bttshnell, C. J., and Sharpe, Potter, Chandler, North, and Wiest, JJ., concurred. Butzel, J., did not sit. | [
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Bushnell, J.
These two railroad and highway-intersection cases were consolidated and tried as one. The jury rendered a verdict for Roy Hart, the driver of the automobile involved, in the sum of $175 and for William Strew, his passenger, in the sum of $1,000. Seasonable motions were made by-defendant for directed verdicts; subsequently the court granted defendant’s motions for judgment non obstante veredicto from which plaintiffs appeal.
The accident out of which the lawsuits arose occurred where a spur track of defendant’s railroad crosses Marquette avenue in Bay City. On November 10, 1934, sometime after 10 o’clock in the evening, plaintiff Hart, who was unacquainted with the city, was driving his Ford coupe northerly on Mar: quette avenue. Riding with him was his uncle, William Strew. Defendant’s train was approaching this crossing from the northeast, at an angle with the road of about 20 degrees. Several oil tank cars were ahead of the engine which was moving them towards the intersection at a speed of about 9 or 10 miles an hour, but before reaching Marquette avenue, the train slowed down to about two or three miles per hour. Brakeman Greanya, who was riding the forward car with Brakeman Green, both of whom were carrying lighted lanterns, got off the train and ran ahead to the middle of the crossing where he remained, swinging his lantern across the highway. He testified that he saw plaintiff’s automobile about 400 or 500 feet away and said that when he discovered it was not going to stop, he jumped back and behind the tank car in order to avoid being struck by the automobile. Both he and Green gave an emergency stop signal to the engineer and the testimony of the railroad crew shows that the train did stop within a distance of four or five inches.
Plaintiffs say they knew nothing of the proximity of the train, saw no signals and heard neither bell nor whistle, and that Hart’s anto was struck by the tank car. However, the members of the train crew and disinterested witnesses testified that the bell was ringing, that the lanterns were visible, and that Hart drove his automobile into the end of the tank car. Strew was injured and for sometime suffered- from numbness near the left eyebrow and from double vision. His doctor believed at the time of the trial that he might eventually recover' his normal sight. The automobile was demolished.
An ordinance of Bay City requires the continuous ringing of a locomotive bell as trains approach a crossing, but forbids the sounding of whistles within the city, “excepting necessary brake signals and for such other signals required by law as shall be absolutely necessary to prevent injuries to person and property. ’ ’
The trial judge held that judgments should be entered for defendant because of plaintiff Hart’s contributory negligence and because of the imputation of this negligence to his passenger, Strew.
Three questions are raised on appeal, two of which are not argued in the briefs and therefore must be considered as having been waived.
However, for the benefit of the profession, we will say that the question pertaining* to the claim that the court lost jurisdiction to enter a judgment non obstante veredicto by its failure to make a decision on defendant’s motion for more than 60 days after its submission, must be answered adversely to appellant because of our holding in Stepanian v. Moskovitz, 232 Mich. 630; a discussion of this question is given on pages 638 and 639 of that opinion.
The remaining and controlling question, according to appellants’ brief, is that of plaintiffs’ con- tributary negligence. But there must be proof of negligence on the part of defendant before there can be any question of contributory negligence on the part of plaintiffs.
The negligence asserted in appellants’ brief “consisted of defendant pushing its tank cars across Marquette avenue on a dark night without the use of'lights, bell or whistle.” Plaintiffs’ proof on this subject is entirely negative. Neither of the plaintiffs was aware of the existence of the crossing until the collision occurred, and while they testified that they were listening, their answers indicate that they were not listening for anything in particular. Each member of the train crew and disinterested witnesses affirmatively stated that the headlight of the engine was lighted and while the tank cars were higher from the ground than the headlight, the light still could be seen; they also testified that the engine bell was ringing and that the brakeman on the first car and the one who guarded the crossing were signaling with their lanterns.
As indicated in the annotations found in 66 A. L. R. 1538, et seq., we have repeatedly held:
“That where the testimony of witnesses on the part of the plaintiff does not show that they were listening or otherwise giving heed or attention to an oncoming train, testimony that they did not hear the signals does not take the case to the jury, where there is positive testimony by other witnesses, some of them disinterested, that signals were given. Stewart v. Railroad Co., 119 Mich. 91; Britton v. Railroad Co., 122 Mich. 359; Tuttle v. Briscoe Manfg. Co., 190 Mich. 22 (12 N. C. C. A. 909); Lambert v. Railway Co., 209 Mich. 107.”
Defendant says, and we agree, that the Lambert Case, supra, is a leading one on the subject. We repeat a quotation, from page 113 of that opinion, which is also found in Moreau v. Grandmaison, 220 Mich. 238:
“This analysis of the cases shows that in those relied upon by the plaintiff it was held that where the witnesses testified that they were listening’, their attention was upon the train, its coming was upon their minds and they were paying heed to it, that then their testimony makes a case for the jury. This upon the theory that if they were listening, giving the train heed and attention, the probabilities are they would have heard the signals if they had been given. On the other hand the cases relied upon by the defendant’s counsel hold that where the testimony does not show either that the witness was listening or otherwise giving heed and attention to the train, then testimony that he did not hear the signals does not take the case to the jury against positive testimony that the signals were given. This is upon the theory that it cannot be said that there is a probability that one not listening or giving any heed or attention to the train would have heard the signals if given. ’ ’
The evidence does not show any negligence on the part of defendant. Therefore we affirm the judgment for defendant without determining the question of plaintiffs’ contributory negligence. We content ourselves with reference to the following applicable authorities on contributory negligence which were also cited by the trial judge: Haney v. Troost, 242 Mich. 693; Stone v. Railway Co., 248 Mich. 538; Rickman v. Railway Co., 254 Mich. 607; Angstman v. Wilson, 258 Mich. 195 (31 N. C. C. A. 1); Depotty v. City of Detroit, 258 Mich. 657; Gardinear v. Railway Co., 265 Mich. 286.
The judgment for defendant is affirmed in each case, with costs.
Wiest and Sharpe, JJ., concurred with. Bush-NELL, J. | [
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Fead, C. J.
Defendants bad verdict and judgment in an action for personal injuries sustained by plaintiff in a collision of automobiles.
Plaintiff’s claim is that, as be was passing defendant Brown on tbe highway, Brown turned his car to tbe left, across tbe center line, it struck plaintiff’s car and caused it to run off tbe road and against a tree.
Brown claims he remained at all times on his own right side of tbe road, that plaintiff’s car crossed tbe center line and struck defendants’ car.
Tbe testimony presented such direct conflict of facts and they were presented to tbe jury with such clear and correct instructions covering all tbe issues that tbe record affords no ground for tbe claim that tbe verdict was against the great weight of tbe evidence or that the failure of tbe court to give plaintiff’s requests to charge in bis language, instead of in tbe equally plain words of tbe court, was prejudicial.
Plaintiff was chauffeur for Charles Heddon, whose car be was driving when injured. Plaintiff complains that defendants stressed prejudicially Heddon’s connection with plaintiff and the automobile, particularly in that tbe jury probably was led to imagine that Heddon was a party to tbe suit. Plaintiff introduced Heddon into the ease and when he and his witnesses bad finished, it was apparent that Hed don was taking a natural and decent interest in the case. The character of his interest was evident and nothing occurred thereafter which presented incompetent testimony or charged Heddon with impropriety, nor could the jury have been misled as to the issues or parties.
Plaintiff testified that for some miles before the accident he had not exceeded a speed of 42 miles per hour, had reduced to 28 miles, and from a curve some 450 feet from the scene of the collision had driven at 35 miles, accelerating to 38 as he came close to defendants’ car.
Testimony offered by defendants as to plaintiff’s speed at remote points was rejected by the court but witnesses were permitted to state his speed just before and as he came to the last curve and rounded it.
The competency of such testimony is not determined by specific distance or time but by causal connection or contact with the accident. With modem motors and brakes the speed may be materially increased or decreased almost instantly. Aside from the fact that plaintiff had stated his speed within the distances to which the witnesses testified, and had said he had not reduced but had slightly increased his speed thereafter, there was a claim that plaintiff had lost control of his car at or about the curve some 450 feet away. The witnesses were following plaintiff on the road and they carried forward their statements of his speed from the places he had passed them to the curve and therefore connected it directly with a claimed element of negligence. The court, in instructing the jury that such testimony only bore upon the speed at the time of passing, was more favorable to plaintiff than was due him.
We cannot read the charge, as does plaintiff, as instructing the jury that a certain rate of speed on passing another car is negligence as a matter of law. We read it as properly submitting the matter of speed as a fact bearing upon the claim of plaintiff’s .contributory negligence.
We find no error in the record and judgment is affirmed, with costs.
North, Wiest, Butzel, Bushnell, Sharpe, Potter and Chandler, JJ., concurred. | [
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Fead, C. J.
Plaintiff liad award of compensation for total disability until further order of the department.
He entered the employment of defendant September 20, 1935. He testified that on October 14th he slipped on wet and very slippery wooden slats and struck on the end of his spine; that he developed pain in the back, headaches, and, a few days later, dizziness, unsteadiness and irregularity in walking; that he had had no such difficulties prior to his fall; that about 10 days later he slipped against a filter, sustained an abrasion over his left eye and got lime into his eyes, mailing them sore.
Defendant contends plaintiff’s claimed accidents did not arise out of his employment but were due to the use of drugs; that he is not disabled from work; and, if he is disabled, the disability is not due to accident but to the use of narcotics.
Defendant developed a convincing* record that, for several years and until March, 1935, plaintiff had been addicted to the use of drugs and intoxicants, such as veronal, luminal, alcohol, sodium amytol and barbital. It introduced evidence of his appearing* to be under the influence of drugs during the period of his employment. It claims that he acted as though he were intoxicated while around its plant and, on or about November 10, 1935, it discharged him for such reason although there was no odor of liquor on his breath.
Plaintiff testified that during* his employment with defendant he used no drugs except that a few times he took phenol barbital, a sedative, at night, in small doses, to induce sleep, and at no time while he was at work did he take or was he .under the influence of any drugs or intoxicants. There was no direct testimony that at the time of the-accidents lie was under the in fluence of drugs or that they were a contributing cause to his fall. At most, defendant’s indirect and circumstantial testimony raised an issue of fact upon the cause of the accidents.
Plaintiff further stated that at no time before the fall of October 14th had he had the pains, headaches, dizziness and unsteadiness of gait which manifested themselves after the fall.
After leaving defendant’s employ he went to Detroit and was taken to a public receiving hospital, where he remained until January 3d, and at the time of hearing was receiving treatment in the United States Marine Hospital. There was evidence that he was unable to work.
The medical testimony as to the fact and character of his disabilities was in conflict. It was testified they could have arisen from trauma, use of drugs or nervous disorders. A doctor who examined him in December stated that he found physical evidences of trauma and attributed his disabled condition thereto. Defendant complains because this doctor, in forming his opinion, did not have plaintiff’s history prior to the accident. Defendant did not cross-examine him thereon. The testimony of the doctor was competent for what it purported to cover and the medical opinion, in connection .with plaintiff’s own positive testimony as to the time and circumstances of his accidents and disability, raised an issue of fact upon the cause thereof.
The record presents testimony supporting all elements of the claim and the finding of the department thereon is final.
Affirmed.
North, Wiest, Butzel, Bushnell, Sharpe, Potter and Ghandler, JJ., concurred, | [
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Chandler, C. J.
Appellant seeks to recover com-' pensation for an advertising idea which he allegedly invented and which was used by defendant, for the creation of which he claims never to have been paid. He further seeks to recover on an alleged oral contract of employment for a year as he was discharged by defendant in midyear with but 30 days’ notice.
Defendant is a manufacturer of overalls and sells its products to dealers in Michigan and other states. Since 1902 it has used-the trade slogan, “They wear like a pig’s nose.” Pictures and other devices featuring a model pig have been its best-known trade mark.
Plaintiff was employed by defendant as a salesman on a commission basis from 1932 until August, 1938. It is undisputed that in 1937 after various conversations with officials of the defendant company, he supervised and helped build a sound car, equipped with a loudspeaker device, at the back of which was a model pig, defendant paying all expense in connection therewith, the purpose being to advertise defendant’s products by the loudspeakers and by reminding the public of defendant’s trade mark, and the slogan, “They wear like a pig’s nose.” Plaintiff claims he was the sole originator of the idea, but admits that defendant’s officials made some helpful suggestions in order to bring the cost down. Thereafter, plaintiff covered his territory with the advertising car, selling as before, and in addition using the amplifiers to announce in various factory districts the superiority of his employer’s products.
Plaintiff’s sales fell off, it being claimed by him that he had to devote so much time to advertising that he could not give sufficient time to selling. This was brought to the attention of defendant and it gave him extra compensation when his commissions decreased. The additional compensation was 'at the rate of $175 per month, and defendant claims it was on a month-to-month basis, permitting it to terminate plaintiff’s employment on 30-days’ notice. This extra compensation is the basis of plaintiff’s claim of a yearly contract at such a sum. The jury specifically found in answer to a special question submitted by defendant that plaintiff’s employment was on a month-to-month basis.
The remaining claim, compensation for the advertising idea, is not based on a contract for a specific sum, but on conversations in which, according to plaintiff’s testimony, the officials never mentioned a specific amount but always said in answer to his alleged continual demands, “We will see that you are well taken care of.” The jury in answer to another special question found that plaintiff was paid additional compensation for his services in connection with the advertising ear, and returned a verdict for defendant. Plaintiff then moved for a new trial which was denied by the trial court.
Prom the verdict and judgment entered thereon and the order denying the motion for a new trial, plaintiff appeals, alleging prejudicial instructions in the charge of the court to the jury and errors in the admission and exclusion of certain testimony to his prejudice.
Plaintiff proffered no requests to charge.
A most careful perusal of the charge of the court convinces us that it was eminently fair and in clear and explicit language submitted to the jury the issues between the litigants based upon their pleadings and the testimony produced in support thereof. In fact, the only error claimed by plaintiff relative to the charge in his statement of questions involved is that the court permitted the jury to consider issues not involved and unsupported by any testimony. A review of the record discloses no basis for this claimed error. No issue not involved in the pleadings and testimony was injected into the case by the trial court by his charge.
The record is exceptionally lengthy and we think the issues of fact presented for the consideration of the jury are so clearly set forth in the special questions submitted at the request of defendant that we quote .them in full. Also, to show how the jury viewed the conflicting testimony on the only questions of fact involved in this controversy, we quote their answers:
“1. Did W. M. Finck & Company purchase the advertising car and equipment in the summer of 1937 for the purpose of endeavoring to increase its volume of business in the territory which plaintiff was covering and any other territory where the advertising car might be used?
“Answer by Jury — Yes.
“2. Did the volume of business of W. M. Finck & Company in plaintiff’s territory decrease while plaintiff was using the advertising car?
“Answer by Jury — Fes.
“3. During the period plaintiff was using the advertising car, did W. M. Finck & Company pay him more for his services than the company had paid him during any similar period?
“Answer by Jury — Yes.
“4. During the period plaintiff used the advertising car, was he paid additional compensation of $175 each month for his services in connection with said advertising car?
“Answer by Jury — Yes.
“5. Did W. M. Finck & Company agree on March 29,1938, to employ plaintiff on a basis of an advance traveling check of $40 per week to apply against a commission of nine per cent., together with an additional sum of $175 per month for driving the advertising car, such agreement to be subject to cancellation on 30-days’ notice of (if) W. M. Finch & Company felt it was not working out satisfactorily?
“Answer by Jury — Yes.”
It appears from the foregoing that the jury determined that the advertising value of the car was nothing, and that plaintiff had been paid in full for all services rendered by him to defendant, and that defendant did not breach any contract of hire when it discharged plaintiff on 30-days’ notice.
Such finding by the jury, based upon the record before us, should not be disturbed unless the errors complained of are prejudicial.
Appellant claims error in the exclusion from evidence of the contents of certain letters which were received by defendant from various customers and dealers in the territory relative to the use of the sound car by plaintiff in their cities. He concedes that he requested the various dealers for whom he gave an exhibition with the advertising car to send their comments to defendant describing how they were impressed with this form of advertising and how it affected their business. The court permitted testimony to establish the fact that a number of letters were received by appellee from various customers for whom appellant had staged exhibitions, and the president of defendant testified that most of the comments were favorable. The court, however, refused to admit the contents of such letters in evidence as proof of the facts stated therein. There was no error in excluding this evidence. The content of these letters was clearly hearsay. To hold otherwise would result in an impossible situation. As applied to this case, it would leave its determination to be controlled by which side could obtain the most letters from persons approving or disapproving of the use of sound cars as a method of advertising. See Kolodig v. Highland Park State Bank, 226 Mich. 197.
Appellant contends that the court erred in refusing to admit in evidence a newspaper clipping which purported to quote statements made by appellant as to how he had assisted in the construction of the advertising car and the reception it had been accorded in various parts of the country. What we said with reference to the exclusion of the letters is equally applicable here. The rule of law which excludes this type of hearsay evidence is well expressed in 22 C. J. p. 929. .
The next claim of error relates to the admission in evidence of unanswered letters from appellee to appellant.
Appellant first introduced in evidence certain letters received by him from appellee tending to support his claim. We think it therefore became competent for appellee to introduce the remaining correspondence between the parties which tended to disprove such claims. True, as claimed by plaintiff, many of these letters were unanswered. However, some appear to have been answered verbally, and some by mere notation at the bottom of defendant’s letters, but all were written during the period of plaintiff’s employment and before the institution of this action and apparently before any trouble was contemplated by either party. All seem to be related to the matters and the period under consideration and although some seem to contain immaterial matter, we find nothing prejudicial to plaintiff. We hold that the admission of this evidence did not constitute error. See Proctor v. Hobart M. Cable Co., 145 Mich. 503, as bearing upon the admissibility of this series of letters.
We have searched the record in vain to ascertain what, if any, foundation there is for appellant’s next assignment of error based on the claim that the court permitted the introduction of hearsay evidence on the part of defendant.
Two of defendant’s officials testified that the idea of using’ the company’s trade-mark on a sound car had been discussed at the factory many years before appellant had been employed there, and that they were familiar with this type of advertising years before plaintiff claimed to have evolved the idea. The witnesses did not testify as to any conversations they had or heard upon this occasion. In fact they were not questioned in regard thereto.
This testimony falls far short of being hearsay and was both material and competent as combatting appellant’s claim that the idea of this type of advertising was his and that it was novel. See Behr v. Baker, 255 Mich. 607.
No prejudicial error was committed by the trial court, and the denial of plaintiff’s motion for a new trial was justified.
Judgment affirmed, with costs to appellee.
Boyles, North, Starr, Butzel, Bushnell, and Sharpe, JJ., concurred. Wiest, J., took no part in this decision. | [
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McAllister, J.
Plaintiff is engaged in conducting a commercial school, and filed a bill to enjoin defendants, the Michigan State Board of Control for Vocational Education, and Eugene B. Elliott, Alexander G. Ruthven, Robert S. Shaw, and Edna Wilson, as members of the board, from interfering with her school or instituting proceedings against it on the ground that such attempted action was predicated upon a void statute. The. trial court sustained her claim and issued the injunction prayed for. Defendants appeal.
The principal question presented is whether plaintiff is required to obtain a license from the board before conducting and operating a commercial school and is obliged to comply with the rulings of the board and the provisions of Act No. 319, Pub. Acts 1927, as amended (see 2 Comp. Laws 1929, § 7094 et seq. [Stat. Ann. § 15.1 et seq.\), under penalty of fine and imprisonment.
The title of the act and its provisions and classification are as follows:
“An act to provide a system of public instruction and primary schools; to provide for the classification, organization, regulation and maintenance of schools and school districts; to prescribe their rights, powers, duties and privileges; to prescribe penalties for viola tions of the provisions of this act; and to repeal all acts inconsistent herewith.
“The People of the State of Michigan enact:
“Part I
“Classification, Formation and Organization of School Districts
“Chapter 1
‘1 Classification
“Section 1. Hereafter, except as otherwise provided in this act, each and every school district shall be organized and conducted as:”
The section then provides for a classification of seven different kinds of school districts.
This act, known as the school code, is 164 pages in length; 132 pages precede part 2, chap. 24, § 1, which provides for the licensing, supervision, and regulation of private trade schools, and provides penalties for noncompliance.
Const. 1908, art. 5-, § 21, provides, in part:
“No law shall embrace more than one object, which shall be expressed in its title.”
The constitutional provision was designed mainly to prevent the legislature from passing laws not fully understood, Thomas v. Collins, 58 Mich. 64; it was intended that the legislature, in passing an act, should be fairly notified of its design, Attorney General, ex rel. Longyear, v. Weiner, 59 Mich. 580; and that legislatures and parties interested might understand from the title that only provisions germane to the object therein expressed would be enacted, Blades v. Board of Water Commissioners of Detroit, 122 Mich. 366; and to avoid bringing into one bill subjects diverse in their nature and having no necessary connection, but with a view to combining in their favor the advocates of all — or what is commonly spoken of as log-rolling in legislation. State Mutual Rodded Fire Ins. Co. v. Foster, 267 Mich. 118.
It was said by Mr. Justice Wiest in the case of In re Lewis’ Estate, 287 Mich. 179, 183:
“The title to an enactment is required to be expressive of the purpose and scope of the enactment. If the enactment comes fairly within and is reasonably a component part of the purpose expressed in the title it is not an interloper but a part thereof and so proper as to be expected therein.”
Was the object of licensing and regulating private business schools fairly indicated in the title of the act? We think not. It would be impossible to read the title of the act and reach any reasonable conclusion of intention by the legislature to regulate private commercial schools. Such an object certainly could not be included within the purpose that is expressed: “to provide a system of public instruction and primary schools.” The application of the statute to private business schools could only be justified if the provision in question comes within that portion of the title, “to provide for the classification, organization, regulation and maintenance of schools and school districts. ’ ’ But this object is clearly concerned with public education. The entire classification in chapter 1 of the statute is concerned with school districts — obviously of public concern — and the purpose expressed in “organization, regulation and maintenance of schools.and school districts” can, likewise, only be reasonably understood to refer to the system of public schools. The title of the act does not indicate the inclusion of such private commercial schools to be within the general scope, intent, and purpose of the law, and the provision of part 2, chap. 24, § 1, is, therefore, invalid.
It is contended, however, by appellants that, if the pertinent provisions of Act No. 319, Pub. Acts 1927, as amended by Act No. 109, Pub. Acts 1929 (2 Comp. Laws 1929, § 7582 et seq. [Stat. Ann. § 15.625 et seq.]), are invalid, the repeal in said act of a former statute, Act No. 192, Pub. Acts 1925, entitled: “An act to provide for the licensing of private trade schools in Michigan,” is ineffective, and that the act therein sought to be repealed was not repealed and is still in effect. • It is, therefore, contended that plaintiff’s bill should be dismissed, as under the prior statute defendants are authorized to license and regulate plaintiff’s school. This question is not properly before us, as it was not raised in the trial court, and according to the pleadings, it was not sought to enforce such statute. It further appears that the act in question was repealed, and in answer to the tenth paragraph of plaintiff’s bill of complaint, alleging that Act No. 192, Public Acts 1925, was specifically repealed by Act No. 319, Public Acts 1927, defendants admitted such allegation without qualification or reservation. Defendants ’ contention in this regard, therefore, cannot be sustained.
Other interesting questions are argued with reference to the 'unconstitutionality of licensing and regulation of private schools by the State; but under the familiar rule that questions of constitutionality are not decided where a case may be disposed of without such a determination, Smith v. Curran, 267 Mich. 413 (94 A. L. R. 766), we-do not consider these contentions.
Decree affirmed, no costs being allowed, as a public question is involved.
Bushnell, C. J., and Sharpe, Potter, Chandler, North, Wiest, and Butzbl, JJ., concurred. | [
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Per Curiam.
Plaintiff has filed a petition in this Court for mandamus to compel defendants to deliver to it for inspection the 1942 assessment roll of the defendant city of Bessemer. Defendants have answered and deny plaintiff’s right to the writ. Upon hearing and due consideration of the cause, it appears to the court that by statutory provision it is the plain duty of the defendants or such of them as have in their possession the assessment roll to deliver the same to plaintiff for its inspection. See 1 Comp. Laws 1929, § 3547 (Stat. Ann. § 7.210). The right of the State tax commission to inspect and review an assessment roll cannot be defeated by summary action on the part of the assessing officers in completing the roll and delivering it with warrant attached to the tax collecting officer following its approval by the local board of review. A reasonable time must intervene within which the State tax commission may have opportunity to act. Our decision in Detroit Edison Co. v. City of Detroit, 297 Mich. 583, must be construed in the light of the above holding.
Mandamus and injunctive relief are granted in accordance with the prayer of the petition.
Chandler, C. J., and North, Starr, Butzel, and Bushnell, JJ., concurred. Boyles, Wiest, and Sharpe, JJ., did not sit. | [
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McAllister, J.
The city of Farmington brought its suit in equity against the county of Oakland, its county treasurer, the township of Farmington, and the auditor general to cancel taxes, assessed for the construction of certain highways, and to recover moneys paid on such assessments. Certain taxpayers of the city of Farmington were permitted to intervene as plaintiffs, and the board of county road commissioners of Oakland county and the State highway commissioner were, by order of the court, added as parties defendant. On hearing, the circuit court granted the relief prayed in the bill of complaint, except for a period excluded by the statute of limitations, ordered reassessment of the taxes against the township of Farmington, and decreed repayment to the city of the taxes collected by virtue of the- assessments for the said highway purposes. From such decree, the township of Farmington appeals.
The controversy in this case had its inception in 1926, when the village of Farmington, then a part of the township of Farmington, became incorporated as a city of the same name. Prior to its incorporation, the property within the village had been assessed for taxes as a part of the township. Up to that time, numerous township highways had been improved by the board of county road commissioners, and the cost of such improvements had been assessed against the township at large, in accordance with the provisions of the Covert road law (Act No. 59, Pub. Acts 1915, as amended [1 Comp. Laws 1929, §4314 et seq. (see Stat. Ann. §9.711 et seq.)]). When the city became incorporated in 1926, all property within its borders became exempt from further township taxes, and the debts of the township were required to be apportioned between the township and the newly organized city. • 1 Comp. Laws 1929, § 2337 (Stat. Ann. § 5.2224). An agreement was accordingly entered into on March 21, 1926, by the terms of which the city of Farmington assumed 27 per cent, of the existing township indebtedness, including the unpaid portion of the cost of the township roads which had been assessed against the township at large; and the township assumed the remaining 73 per cent, of such indebtedness.
After the incorporation of the city, additional improvements in township roads were undertaken. None of such improved roads, however, traversed the city, and, therefore, the city was not legally assessable for the costs thereof. Nevertheless, because of the common mistake of the township, the county and the city, assessments for these im provements were spread by tbe city on tbe property therein located, on a basis apportioning 27 per cent, of tbe costs of such improvements to tbe city, and tbe balance to tbe township. It can readily be seen that tbe mistake arose out of confusion of tbe terms of tbe agreement apportioning tbe debts between tbe township and tbe city at tbe time of tbe latter’s incorporation, for tbe agreement apportioning tbe debts related only to tbe indebtedness existing at tbe time of tbe execution of tbe agreement between tbe township and. tbe city; and these assessments thereafter made by tbe city were based upon tbe mistaken assumption that the city was obligated in a like proportion of 27 per cent, for tbe cost of improvements in township roads undertaken subsequent to tbe agreement apportioning tbe indebtedness.
This was purely a mistake. Commencing in 1926, tbe officials of tbe city prepared tbe rolls upon which tbe Covert road assessments were spread. Tbe assessment rolls were certified by tbe city assessor and equalized by tbe board of review of tbe city. Tbe assessment rolls were then placed in tbe bands of tbe city treasurer for collection. Each year tbe city treasurer made settlements with tbe county treasurer for all taxes spread. Tbe city charged itself for these road assessments which were not paid during tbe period from 1926 to 1930; paid tbe county treasurer tbe amount of taxes collected by its treasurer; and paid from its own funds tbe amount of such taxes as were delinquent, and which tbe treasurer bad been unable to collect. From 1926 on, tbe city bad a representative on tbe board of supervisors; and each year there was presented to tbe board tbe certificate of tbe clerk, representing tbe amount of taxes to be raised for city purposes, as well as statements representing tbe amounts appor tioned for highway construction under the Covert act. "With the exception of only one year during this period, the report of the board of supervisors was voted for by the supervisor representing the city of Farmington. It was only after several years that the representative of the city on the board discovered that the city had been assessed for Covert roads built in the township; and when this fact was called to the attention of the board of supervisors, no further assessments for such roads were levied against the city.
It is contended that there was fraud in the making up of the statements of the city clerk in which the Covert road cost was included as part of the amount to be raised by taxation; and to sustain such claim, it is argued that the written figures contained in the statements show that they were inserted by someone other than the city clerk; and that such erroneous figures were suggested by the supervisor of Farmington township and fraudulently inserted in the clerk’s statement by a county employee. The circuit court found that there was no actual fraud proved; and that the city taxpayers were innocent victims of their own actions and those of the city officials and the board of supervisors. On a review of the record, we are in accord with the conclusion of the trial court that there is no proof remotely suggesting fraud on the part of any persons concerned.
However, the trial court found that there was constructive fraud growing out of the assessments and collections of the taxes in question. On this issue, we are constrained to differ from the conclusion of the trial judge. We are unable to find any facts or circumstances in this case which would give rise to constructive fraud. From the evidence, we can conclude no more than that there was an honest, un intentional mistake on the part of all persons concerned. After the lapse of many years, it would subserve no equitable considerations to require all of the taxpayers of the township to submit to new assessments in order to repay to the taxpayers of the city the sums which they paid without question and because of ignorance of the law. Conceivably, parties have purchased lands within the township in the meantime, relying- on titles free from tax incumbrances ; other owners, doubtlessly, have in these past years of economic stress entered into commitments in order to pay their taxes, on the basis of what the assessments revealed as their tax obligation. The township did not collect the tax, nor was it responsible for having it spread on the tax rolls of the city. Plaintiffs have no equities superior to those of the taxpayers within the township, as far as is revealed by the evidence in this litigation; and in such case, equitable relief is not granted.
The decree in the circuit court restrained the treasurer of Oakland county and the auditor general from selling at tax sale property located in the city in consequence of nonpayment of the alleged illegal assessments for highways. On the argument appellant admitted that this part of the decree should be affirmed; and it is our opinion that such portion thereof should be sustained.
The decree entered in the circuit court is, therefore, modified in accordance with the foregoing, without costs, as a public matter is concerned.
Btishnell, C. J., and Sharpe, Chandler, North, and Butzel, JJ., concurred with McAllister, J. Wiest, J., concurred in the result. The late Justice Potter took no part in this decision. | [
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McAllister, J.
Plaintiff, while in tbe employ of defendant, suffered a hernia on November 30, 1937, as a result of a strain arising out of and in tbe course of bis employment. Notice of tbe injury was given to defendant, and a report of noncompensable accident was filed with tbe department of labor and industry on January 7,1938. On April 25,1938, plaintiff filed with tbe department a notice and application for adjustment of claim for tbe injury, together with a duplicate copy. On September 26, 1938, plaintiff filed with tbe department a similar notice and application on a new form provided for occupational hernia. On bearing before the deputy commissioner, compensation was denied; and on review such action was affirmed by tbe department.
If plaintiff’s notice of April 25, 1938, had been served upon the defendant, he would be entitled to compensation upon proof of loss and disability. It was apparently believed that the department would cause the duplicate copy of the claim which was filed to be served upon defendant, but the statute does not so provide. The claim must be made upon the employer, either written or orally, within 120 days from the time of disablement. Act No. 10, pt. 7, § 10, Pub. Acts 1912 (1st Ex. Sess.), as added by Act No. 61, Pub; Acts 1937 (Comp. Laws Supp. 1940, § 8485-10 [Stat. Ann. 1939 Cum. Supp. § 17.229]). Because of failure to file claim for compensation within the time provided by statute, plaintiff’s claim cannot be sustained.
It is contended that plaintiff was advised to buy a truss by the physician employed by defendant, and that this fact constituted evidence that the accident was compensable. It is, therefore, argued that since defendant was bound to file a report of the compensable accident, plaintiff is not precluded because of his failure to file the claim for compensation within the 120-day period. See Pritchard v. Ford Motor Co., 276 Mich. 246.
It appears that the physician told plaintiff that, if he had an operation, he could receive “Packard aid insurance” — apparently a private benefit arrangement ; and that the physician also told plaintiff where he could buy a truss. But there is no proof that plaintiff lost any wages while he was with defendant company as a result of the hernia, or that defendant had any knowledge of plaintiff’s disability, or claim of disability. It was served with the claim for compensation filed in September, 1938. Under the foregoing circumstances, it could not be said that defendant was obliged to file a report of a compensable accident.
It is also urged that plaintiff was transferred from one department to another in an effort at rehabilitation and because of his disability, but the record does not sustain such a claim.
The fact that defendant, after filing a report on noncompensable accident in January, 1938, stating the date of that report to be January 4, 1937, thereafter filed in April, 1938, a corrected report showing the date of such report to be January 4,1938, gives no advantage to plaintiff. The accident, as reported, occurred November 30, 1937. Obviously the report could not have been made in January of that year. It was merely a minor, unimportant typographical error.
To the contention that plaintiff’s claim was valid if the injury did not develop or make itself apparent within six months of the injury (2 Comp. Laws 1929, § 8431 [Stat. Ann. § 17.165]), it appears from evidence adduced on his behalf that the disability began March 9, 1938, which was within the six-month period. On review, we find no error.
The order of the department of labor and industry is affirmed, with costs to defendant.
Bushnell, C. J., and Sharpe, Potter, Chandler, North, Wiest, and Butzel, JJ., concurred. | [
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McAllister, J.
In a divorce decree Bertha L. Westgate was awarded a one-half interest in the property of her husband, which consisted, among other assets, of the business of the Direct Refinery Stations, an enterprise for the sale of gasoline products. Because of the fact that, after the filing of her bill of complaint, her husband, as she alleged, had proceeded to convey his property to others engaged with him in this business enterprise, with the object of defrauding her out of her interests therein, Bertha L. Westgate petitioned for the appointment of a receiver of the properties of the Direct Refinery Stations, for the conservation of such property, and the carrying on and maintenance of the business, pending allocation to her of the interests awarded by the decree of divorce. On her petition a receiver was appointed. Various parties have filed answers to her petition for receivership, denying her allegations and claiming interest in the property used in the conduct of the business now in the hands of the receiver. These issues are as yet undecided and are pending in the receivership proceedings before the circuit court. One of the parties who filed an answer in such receivership action is Nellie Drake, appellant in the instant proceedings. She claims that a certain tractor used in the oil business belongs to her. Nellie Drake was the bookkeeper of Elmore L. Westgate, to whom, it is alleged, certain transfers of property were made after the filing of the bill of complaint in the divorce action by Bertha L. Westgate. The receiver petitioned the circuit court for authority to trade the tractor in question, together with a payment of cash, for a new tractor of the same model, in carrying out the business of the receivership. In answer to such petition, defendant Drake filed objections; and a hearing was had in which she was represented. Testimony was taken concerning the issues raised by the petition and defendant’s objections, and thereafter on August 16, 1939, the circuit court granted the petition and authorized the receiver to trade the tractor in question. Defendant sought leave to appeal from the order of the circuit court which was denied by this court, without prejudice. The receiver traded the tractor and secured a new tractor in its place. However, when it became necessary to deliver a certificate of title to the party to whom the receiver had traded the tractor, it was discovered that, although the receiver had possession of the certificate of title, standing in the name of defendant Drake, defendant had previously procured a duplicate certificate of title from, the secretary of State. Because of the fact that there is a duplicate certificate of title in the hands of defendant Drake, which she refused to surrender, the receiver petitioned the circuit court to cancel such duplicate and to authorize the secretary of State to issue a new certificate to the purchaser of the tractor. Defendant Drake filed an answer to this petition, and, after the taking of the testimony, the court, on November 29,1939, granted the petition, ordering the duplicate certificate cancelled and authorizing the secretary of State to issue a new certificate upon presentation of the original certificate by the receiver. From such' order defendant was granted leave to appeal.
Defendant raises numerous questions regarding the validity of the appointment of the receiver; questions the right of the court to cancel the duplicate certificate; claims that she- has been denied due process; and contends that the receiver is not the real party in interest in the proceeding. We are of the opinion that all of these claims are without merit. The order authorizing the trading of the tractor was made August 16,1939, and, so far as this proceeding is concerned, is res judicata. The subsequent order of November 29; 1939, was only for the purpose of enabling the purchaser from the receiver to secure a valid certificate of title in consummating the transfer which had already been authorized. Defendant’s counsel, in the course of the proceedings, suggested to the court that the tractor be held by the receiver pending the determination of defendant’s claims in the receivership proceeding. The court, in authorizing the transfer of the tractor, concluded that it would be for the best interests of the business in receivership to dispose of the old tractor and secure a new one in its place. Any claimed interests of defendant in any property used in the business 'of the Direct Refinery Stations, as now carried on by the receiver, can be adjudicated in the pending receivership action to which defendant Drake is a party and in which she has filed her answer.
As to the action of the circuit court cancelling the duplicate certificate and authorizing the secretary of State to issue- a new certificate, there was no error. According to statute, Act No. 46, Pub. Acts 1921 (1 Comp. Laws 1929, § 4658 et seq.), as amended by Act No. 160, Pub. Acts 1935, it is provided that the secretary of State may revoke registration of any outstanding certificate of title whenever he may de termine that an applicant is not entitled to the same, and that, when ownership of a motor vehicle shall pass by operation of law, such officer may issue a new certificate of title. Upon presentation of the order' of the circuit court, such officer would doubtless revoke the duplicate and cause a new certificate to be issued in accordance with the court’s direction. The order of the court only seeks to effectuate the object of the statute in such a case.
The order of the circuit court is affirmed, with costs to the receiver.
Bushnell, C. J., and Sharpe, Potter, Chandler, North, Wiest, and Butzel, JJ., concurred. | [
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Butzel, J.
This is an original petition for mandamus by a taxpayer of the city of Pontiac to direct the .city of Pontiac to place on its tax rolls immediately all parcels of land sold under the “scavenger” act (Act No. 155, Pub. Acts 1937, as amended by Act No. 244, Pub. Acts 1939 [Comp. Laws Supp. 1940, § 3723-1 et seq., Stat. Ann. § 7.951 et seq.]), irrespective of whether the State land office board has executed deeds or contracts. The attorney general has intervened to oppose the petition.
According to the allegations of the petition, a “scavenger” sale was started in Oakland county on February 13, 1940, and certain lands were bid in in accordance with section 7 of the act (set forth in the margin). Some of the lands were bid in-by strangers to the title who deposited cash, but no deeds have yet been issued by the State land office board; other lands were bid in by “owners” as defined in section 5 (set forth in the margin), and arrangements were made to purchase on contract as permitted by section 7, but no contracts have yet been issued. In obedience to tbe duty imposed by section 7, repeated in section 9, tbe State land office board notified tbe treasurer of Oakland county, wbo in turn notified defendants of tbe sales of tbe properties offered at tbe scavenger sale. Plaintiff claims that tbe properties thus sold became taxable “from tbe moment tbe gavel fell elos rng the sale, ’ ’ and that it was the duty of the assessing officer of the city of Pontiac or the hoard of review immediately to place these properties on the assessment rolls, even if the owner not be known at the time (1 Comp. Laws 1929, §3412 [Stat. Ann. §7.24]). Plaintiff claims that the refusal of defendants to place these properties on the assessment rolls creates an inequality in the distribution of the tax burden and increases the amount of taxes plaintiff will be obliged to pay for the year 1940. In defendants ’ return to the order to show cause, the sale of the properties and notification thereof are admitted, but it is claimed that the properties should not he placed on the tax roll because no deeds or contracts have been issued, and that until such issuance the properties still belong to the State of Michigan and are exempt from the general tax laws as State lands (general property-tax law, 1 Comp. Laws 1929, § 3395 [Stat. Ann. § 7.7]), and that if these properties are illegally placed on the tax rolls and later ordered removed, the city of Pontiac will be charged back with the county and school taxes uncollected because of the unauthorized assessment.
The sole question before us in the instant case is whether the lands are subject to taxation when a bid is accepted, or whether the power to tax is deferred until a deed or contract is executed to the successful purchaser. Section 7 provides:
“No bid shall be accepted.unless payment in cash is made within 24 hours of the bid, and such bid shall remain open, for 24 hours. ’ ’
The second paragraph of section 7 declares:
“All such lands disposed of under contract or deed, except lands purchased and held by taxing units for public purposes, shall be immediately subject to taxation by the several taxing units having jurisdiction.”
The question is, when are the lands ‘ ‘ disposed of Í ” In interpreting the act our duty is to ascertain the meaning of the statute, to give it full force and effect, coloring our construction by the purpose of its enactment. The statute is remedial and is entitled to a liberal construction. Oakland County Treasurer v. Auditor General, 292 Mich. 58. It is said to be the duty of the court to draw inferences from the evident intent of the legislature, as gathered from a view of the law in its entirety; we must render effectual the specific things which are included in the broad and comprehensive terms and purposes of the law. At torney General v. Railway Co., 210 Mich. 227; Oakland County Treasurer v. Auditor General, supra. The part of section 7 quoted above states that the lands sold shall be “immediately” subject to taxation. Section 8 referring to other lands subject to the jurisdiction and control of the board states that they shall be classified “with the end in view of rehabilitating such lands as rapidly and speedily as possible and returning said lands to the tax rolls.” The general tenor of the act is to rehabilitate for tax purposes, with certain exceptions, lands acquired by the State “by virtue of any tax sale.” In keeping with the policy of the act, we think the word “immediately” in section 7 refers to the time when a bid may be accepted as provided in the first paragraph of section 7, and not the time when the transaction may be culminated by the execution of a deed or land contract. The rights of one who ultimately acquires the land spring from the acceptance of a bid though defeasible, for that is the occasion which determines the purchase price and starts running the time limitations for the favored purchasers. The expression “disposed of under contract or deed” following the phrase “all such lands” in the second paragraph of section 7 is only descriptive of the lands for which bids have been accepted in accordance with the preceding paragraph of this section.
The charge is made by plaintiff and admitted by the defendants that, within the time prescribed, the State land office board by its agent in charge of its sale, in pursuance of section 7 of said act, as amended, reported to the county treasurer who, in turn, notified the defendants of the sales of the properties sold at the scavenger sale. Upon such notice, it became the duty of the defendants to place such properties on the assessment roll of the city of Pontiac for 1940 and subject them to taxation.
A writ of mandamus shall issue in accordance with this opinion. No costs.
Bushnell, C. J., and Sharpe, Potter, Chandler, North, McAllister, and Wiest, JJ., concurred.
Sec. 5. Any municipality may at any time prior to the sale provided for in section 7 of this act make application to the State land office board for the withholding of the lands in said application from the said sale, for a period of 1 year from the date the title vests in the State, and the said State land office board shall with hold sueh lauds from said sale, which lauds shall be held subject to the lien of the city for delinquent taxes and special assessments. In the event the taxes on said lands included in said application are not redeemed or paid by said municipality, sueh lands shall be offered for sale at the next succeeding sale held the following year as provided in section 7 of this act the same as though said application had not been made and the proceeds of sueh sale paid pro rata to sueh municipality as provided in section 10 of this aet.
The term “owner” as used in this act shall mean the owner in fee, mortgagee, land contract vendee, or one having a substantial interest by way of actual investment in the property, priority to be given the one having the largest financial investment in the property.
The term “municipality” as used in this aet shall mean any county, city, village, township or school district. The term “taxing unit” as used in this act shall include any municipality as herein defined and any other taxing unit in this State. (As amended by Aet No. 244, Pub. Acts 1939.)
Sec. 7. In sufficient time prior to each second Tuesday of February after the vesting of title in the State of Michigan, the State land office board shall prepare lists of the descriptions of said parcels of land in each county of this State under its jurisdiction and control: Provided, That parcels of land conveyed or deeded under section 5 of this act shall be omitted from such lists. Under rules and regulations of the board, the several parcels of land appearing upon sueh lists shall be offered for sale separately at the office of the respective county treasurers to the highest bidder at said sale beginning on the second Tuesday of February of each year. Such sale may be continued from day to day until all parcels have been offered for sale: Provided, That no bid shall be accepted for a smaller sum than 25 per cent, of the assessed valuation of the parcel of land as fixed and determined at the last assessment for the year preceding the vesting of title in the State of Michigan as shown by the records of the county treasurer. The board may designate the several county treasurers to aet as agents of the board in the preparation of such lists and in the conducting of such sale, the expense of which shall be paid by said board, or may provide for the conducting of said sale by a representative of the board. Any county, township, city, village, school district or other taxing unit having any taxes or special assessments cancelled by the vesting of title in the State of Michigan may, either severally or in combination, bid at said sale for such lands as may be needed for public purposes, but not for resale, and shall have authority to make sueh bid and appropriate any money necessary therefor. Sueh taxing units may purchase, hold and dedicate said lands for any public purpose: but such taxing units shall not have authority to purchase and hold said lands for resale. No bid shall be accepted, unless payment in cash is made within 24 hours of the bid, and such bid shall remain open for 24 hours: Provided, That if any person having any interest in said lands as hereinafter in this section provided, shall within 24 hours following such bid, make application to the board or its representative, payment in cash shall not be required but said board may enter into an agreement with said owner for the payment of the sum bid as hereinafter provided. If payment in cash to take up such bid is not made within said 24 hour period, the land may be reoifered for sale. The term “highest bidder” as used in this section shall be construed to mean the person who makes the highest bid accompanied by payment within 24 hours following such bid. The amount which any taxing unit or units bidding at such sale shall pay in cash shall be only that part of such bid as may be necessary to pay the expenses of the sale plus the proportionate part of the taxes and assessments which were due to the taxing unit or units not bidding and cancelled at the time of vesting of title in the State of Michigan. The proportionate part of the taxes cancelled as to the taxing unit or units bidding shall be construed as cash for the balance of the bid. All payments shall be held in trust for and shall be turned over to the board. The successful bidder shall receive a certificate of purchase from the county treasurer or other agent designated by the board, in such form as shall be furnished by the board. Any person who, at the time of the tax sale, had any interest in any parcel of land so sold, shall have the right for a period of 30 days after such public sale as in this section provided, to meet the highest bid, by paying the amount thereof to the county treasurer, or he may on application to the said land office board enter into an agreement with such board for the payment of the sum required to meet such highest bid, in instalments to be paid over a period of not to exceed 10 years, with interest on unpaid instalments computed at the rate of 6 per cent, per annum from the date of said agreement, which agreement shall provide that said vendee shall forfeit his right thereunder by failure to meet such payment or failure to meet all current taxes and assessments during the life of such agreement before such taxes and assessments become delinquent, and receive, when instalments are fully paid, a quitclaim deed, executed as hereinafter provided.
All such lands disposed of under contract or deed, except lands purchased and held by taxing units for publie purposes, shall be immediately subject to taxation by the several taxing units having jurisdiction, and the State land office board shall promptly report any disposition of such lands to the county treasurer of the county wherein the same are located, who in turn shall immediately report same to the proper assessing officers. If such bid is not met by the above-named parties in interest any city, village, township, county or school district having any taxes or special assessments cancelled by the' vesting of title in the State of Michigan shall have the right either severally or in combination for a period of 15 days after the expiration of the 30-day period above provided, to meet the highest bid, provided said lands are purchased for public use and not for resale. Such taxing units shall have priority in the exercise of such right according to the amounts of their respective tax interests at the time of vesting title in the State of Michigan. The amount which any taxing unit meeting such bid as above provided shall pay in cash shall be only that part of such bid as may be necessary to pay the expenses of the sale plus the proportionate part of the taxes and assessments which were due to the taxing unit or units not bidding and cancelled at the time of vesting title in the State of Michigan. The proportionate part of the taxes cancelled as to the municipality meeting the bid shall be considered as cash for the balance of the bid. If such bid is so mot as in this section provided, the certificate of purchase issued to such highest bidder shall be void except that the highest bidder shall bo entitled to a return of his money upon surrender of such certificate of purchase, and persons or taxing units so meeting said bid shall forthwith be entitled to receive a quitclaim deed, or in ease of instalment purchases, a land contract, covering the parcel of land so purchased, executed on behalf of the State of Michigan by the board, with the seal of the board attached. In the event that no such bid is met as heroin provided, the said highest bidder shall be entitled to receive a quitclaim deed or in case of instalment purchases, a land contract, covering the parcel of land so purchased, executed on behalf of the State of Michigan by the board, with the seal of the board attached.
Any conveyance executed by the board under any of the provisions of this act shall not affect in any way the rights of parties whose interest or interests in said property so conveyed shall have been assessed separately from the real estate, as provided in subsection 16 of section 8 of act number 206 of the public acts of 1893, as amended by act number 94 of the public acts of 1931.
Notice of such sale shall be published by the State land office board in such newspaper or newspapers having general circulation in the respective counties as the board shall designate, said notice to state the time and place of sale, and shall be published once each week for two successive weeks in the same newspaper or newspapers, the second insertion-to be not later than one week prior to the date of said sale.
If any taxing unit having purchased any land under the provisions of this section for public purposes shall at any time decide not to use said land for a publie purpose, said land shall be deeded back to the State and shall be sold by the State land office board at the next regular sale. All quitclaim deeds to a taxing unit purchasing land under the provisions of this section for a public purpose shall contain a provision for the reverting of said land to the State when the same is no longer used for a publie purpose: Provided, however, That in any case where such property deeded under the provisions of this act shall have been used for a bona fide public purpose for a period of not less than 10 years, the reversionary clause of this section shall not apply. (As amended by Act No. 244, Pub. Acts 1939.)
Sec. 8. All other lands under the jurisdiction and control of the board shall be classified with the end in view of rehabilitating such lands as rapidly and speedily as possible and returning said lands to the tax rolls. The State land office board shall make or cause to be made an appraisal of such lands. Said board shall keep on file in its offico and under its control all records of appraisals and all deeds or other records used in making such appraisals. The board, through its rules and regulations, shall provide for the filing of objections to the appraisals made, and for the conducting of hearings thereon. The determination of the board shall be final.
The board is authorized to sell any of such lands to the best advantage, but for not less than the appraised valuation to be fixed by the board from time to time, to reliable purchasers, either at cash or on time payment plans, such time payments not to run for longer than 10 years from the date of such sale and the board shall, upon request by resolution of the governing body of the county, city, village, township or school district in which said lands are located, transfer such lands as such county, city, village, township or school district shall request, upon proof satisfactory to said board that such lands are needed for public purposes but not for resale, to such county, city, village, township or school district and give a quitclaim deed therefor covering such parcel or parcels of land, executed on behalf of the State of Michigan by the board, with the seal of the board attached. In ease of such request by any two or more such taxing units in which such lands are located, the taxing units shall have priority according to the amounts of their respective tax interests at the time of vesting title in the State of Michigan. Such county, city, village or township may hold such lands for any publie purpose but not for resale. If any taxing unit having acquired any land under the provisions of this section for public purposes shall at any time decide not to use said land for a public purpose, said land shall be deeded back to the State and shall be sold by the State land office board at the next regular sale. All quitclaim deeds to a taxing unit purchasing land under the provisions of this section for a public purpose shall contain a provision for the reverting of said land to the State when the same is no longer used for a public purpose: Pro vided, however, That in any ease where sueh property deeded under the provisions of this act shall have been used for a bona fide publie purpose for a period of not less than 10 years, the reversionary clause of this section shall not apply.
The board is also authorized to provide for such use by the State of Michigan, or any political subdivision thereof, of any of sueh lands, and to make sueh other disposition thereof, as the interests of the State or local subdivisions may require. Within 30 days of the expiration of this act sueh board shall convey and turn over to the department of conservation all lands not sold by such board; and such board shall also assign and set over to the department of conservation all instruments and documents evidencing sales by the board under time payment plans and thereafter the department of conservation shall carry out and perform all undertakings and agreements in such instruments and documents stated to be performed by such board or by the State of Michigan. Upon the expiration of this act the said board shall deliver to the department of conservation all other papers, records and effects of every kind remaining in its possession. Whenever any lands or any interest in any lands are conveyed or turned over to the department of conservation by the said board, such department of conservation shall, in addition to any other powers which sueh department of conservation might have, be vested with all the powers, rights and duties vested in said State land office board by this aet.
Sec. 9. The board shall be a body corporate, may sue and be sued, and shall adopt a seal of which all the courts of this State shall take judicial notice.
The board is authorized, for and on behalf of the State of Michigan, to execute, with the seal of the board attached, sueh quitclaim deed or deeds, land contract or land contracts, leases for publie uses or other documents or papers as may be necessary to carry out the provisions of this°aet. No power, either specific or implied, is hereby given to said board to enter into any lease or leases with any person, firm, copartnership, association or corporation to be used for any private purposes. Any quitclaim deed or deeds executed by the board shall convey title in fee to land vested in the board under the provisions of this act, free from any encumbrances, except as herein otherwise provided. It shall be the duty of the board to notify the assessing officer of the township or city where any land is located of any deeds, contracts, leases- or other disposition of any such land which would enable such land to be returned to the tax rolls for assessment of the interest conveyed thereby.
The provisions of act number 91 of the publie acts of 1911, as amended, shall not apply to any land contract executed by the board or purchase money mortgage given to the board.
The board may file any sueh land contract or mortgage with the register of deeds of the proper county without the payment of any fee or tax. All restrictions as to improvement and use of property contained in the dedication of any recorded plat shall pass with the deed made by the State to the purchaser unless on petition of a majority of the owners of the property within such plat. The land office board or director of conservation shall determine that such restrictions shall be set aside. | [
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Sharpe, J.
This is an action in ejectment to try title to certain property conveyed by Mary Whit-ford, a common grantor, to both plaintiffs and defendants.
Prior to 1933, one Edmund E. Whitford was the sole owner of about 20 acres of land in Orleans township, Ionia county, Michigan, lying adjacent to Long lake. About 1933, defendants, Bruce O. Klingler and wife, entered into an agreement to purchase some of this land. 'No land contract was ever executed by 'the parties, but the purchase price was paid in full by the defendants who went into possession of the land and in 1935 built a summer cottage. Edmund E. Whitford died in March, 1937, never having executed any deed to defendants.
Edmund E. Whitford during his lifetime had contemplated platting this entire 20 acres and in June, 1935, engaged a civil engineer who made a survey and a proposed plat of the property. This plat was never recorded, but the parties have stipulated that it should be submitted to us; and we are including a diagram of a portion thereof and for convenience in identifying the property in dispute we will refer to the parcels by the lot numbers on the proposed plat.
Defendants’ cottage is located about five feet from the rear of lot 29 and for some time prior to October, 1937, defendants occupied and used the entire lot to the water’s edge, filling in a low spot in front of the cottage and planting shrubbery. They had also occupied lots 50 and 51, marking the corners by stones and taking dirt therefrom for the fill in front of the cottage.
It is undisputed that record title to the entire 20 or more acres became vested in Mary Whitford,
widow of Edmund E. Whitford. On October 25, 1937, she entered into an agreement with plaintiffs for the sale of the entire 20 or more acres with the following provision:
“excepting * * * and also reserving certain lands in the within description belonging to Bruce Klingler.”
Following this agreement, some attempt was made to get a description of defendants’ property, but this failed and on January 27, 1938, Mary Whitford executed a deed to defendants conveying to them only a piece of property 100 feet by 40 feet upon which their cottage was located. The deed contained the following provision:
“Above description includes full access to the lake frontage for personal use, and is restricted as to concessions or business enterprises.”
This deed was sent to defendants who were then residing in Syracuse, New York. It was held by them until they could return to Michigan and was recorded by Mrs. Klingler on August 12,1938.
Shortly thereafter, defendants discovered that the deed did not cover all of the property which they had purchased. On November 19, 1938, Mrs. Whitford executed a “correction” deed to defendants covering all of what appears on the diagram as lots 29, 50 and 51, the 20-foot strip of land between lots 29 and 51, the 20-foot strip of land along the easterly side of lots 50 and 51, and the right of ingress and egress over and across certain described property. This deed was recorded November 21, 1938.
Prior to the November, 1938, conveyance to defendants and on March 8, 1938, a land contract was executed between Mary Whitford and plaintiffs Elizabeth Barker and Donald Gr. Barker which was never recorded. It included all of the 20 acres except a lot 100 feet by 40 feet which Mrs. Whitford had conveyed to defendants on January 27, 1938, and lots 50 and 51. Pursuant to this contract and on July 18,1939, a deed was executed to plaintiffs covering all of the land described in their land contract.
.In October, 1939, plaintiffs filed an action in ejectment for possession of (1) the strip of land in lot 29, seven feet at one end, 22 feet at the other end and 40 feet long, along the lake shore, (2) the parcel of land 20 feet wide at the rear of the cottage and between lots 29* and 51, (3) a strip of land 20 feet wide along the east boundaries of lots 50 and 51, (4) the land covered by the easement granted in defendants’ deed of November, 1938. They claim title to this property under the land contract of March 8, 1938, and the deed of July 18, 1939.
Defendants answered and claim title to the disputed property by virtue of their prior deed, of November 19, 1938, and claim that this deed was made pursuant to contracts and agreements originally made with Edmund E, "Whitford; that for several years prior to March 8,1938, they were in continuous possession of the property covered by their deed of November, 1938; and that plaintiff had notice of this possession.
The trial court held 'that defendants have title to the land in dispute by virtue of their prior deed of November 19, 1938, and dismissed the plaintiffs’ cause of action.
Plaintiffs appeal and contend that the so-called correction deed of November, 1938, was as to all except lots 50 and 51 hot a correction deed, but a con/eyance enlarging the estate of the defendants; that ander the land contract with plaintiffs, Mrs. Whit-ford held the title to the disputed property for security and as trustee for plaintiff; and that on November 19, 1938, she had no title which she could convey to defendants.
This is an ejectment action. In the recent case of Briggs v. Prevost, 293 Mich. 677, the rule applicable here was stated:
“It is elementary that to prevail in an ejectment proceeding the plaintiff must rely upon the strength of his own title, not on the weakness of defendant’s title. Ridgley. v. Roma, 282 Mich. 682. Clearly in such case a plaintiff could not prevail ,if defendant had a prior valid title. ’ ’
Following the death of Edmund E. Whitford, legal title to the property became vested in Mary Whit-ford. This record contains no evidence of a valid contract between Edmund E. Whitford and defendants which would pass legal title. In this action we cannot take cognizance of whatever equitable rights defendants may have had. Michigan Land & Iron Co. v. Thoney, 89 Mich. 226, and cases cited therein.
Because, in ejectment, plaintiffs’ recovery, if any, must rest upon the strength of their own title (Bruun v. Cook, 280 Mich. 484; Ridgley v. Roma, supra), we, therefore, first examine plaintiffs’ title. Plaintiffs’ claim to prior legal title to the property in dispute is based upon their land contract of March 8, 1938, and the subsequent deed. They contend that the deed related back to the time of the land contract; and that defendants’ intermediate conflicting deed from the same grantor had no priority and rely upon Seager v. Cooley, 44 Mich. 14.
In that case one Cooley instituted an action of ejectment for a strip of land in Seager’s possession. Seager brought a bill for a decree declaratory of his rights and perpetually enjoining their infringement. Both Seager and Cooley derived title under Loeher. Seager claimed title under a land contract of February 5, 1859, and deed of March 6, 1861. Cooley traced title by mesne conveyances from Loeher to Disbrow by warranty deed executed February 23, 1860; a deed from Disbrow to Knapp executed January 1, 1861; and a deed from Knapp to himself executed subsequent to the deed from Loeher to Seager. The court said:
“The point is made that the bill is wanting in equity on the ground that complainant’s case might have been used as defense in the ejectment.
“The position is not tenable. The decision there must have been in favor of tbe superior legal title, and that seems to have been in Cooley. His claim is under Loeher, the common source of title, and through a deed from Mm prior to that held by complainant, and such priority implies a legal preference in the competition between the parties for quantity. That being the case, the only chance left to complainant was to establish that this apparent legal advantage was actually subject to a controlling equity in his favor, and this is the ground he takes. He shows that the making use of the earlier date of the grant to Disbrow from Loeher, tbe source of all titles, in order to divest him of a part of what Loeher sold him and a part of his actual holding, is inequitable and ought not to be allowed. His (complainant’s) contract entitled him to a full acre next to the excepted parcel. It was the first sale made by Loeher, and preceded by a considerable time the sale to Dis-brow. In virtue of it complainant became equitable owner.”
The above case, being in equity, does not support plaintiffs’ claim.
It is well settled in this State that the vendee in a land contract is vested with the equitable title in the land, and that the legal title remains in the vendor and is held as security for the payment of the purchase price of the land, upon the payment of which the vendee is entitled to a conveyance of the legal title. Hooper v. Van Husan, 105 Mich. 592; Stevens v. DeBar, 229 Mich. 251; In re Estate of Jeffers, 272 Mich. 127; Lutz v. Dutmer, 286 Mich. 467. Plaintiffs’ rights, if any, under the land contract were equitable.
“Nothing is better settled in this State than that in an action of ejectment an equitable title cannot be set up as defense against a legal title. Buell v. Irwin, 24 Mich. 145; Ryder v. Flanders, 30 Mich. 336; Harrett v. Kinney, 44 Mich. 457; Geiges v. Greiner, 68 Mich. 153.” Michigan Land & Iron Co. v. Thoney, 89 Mich. 226, 231.
See, also, Thompson v. Doore, 269 Mich. 466.
Plaintiffs’ equitable title under the land contract cannot be enforced in this action against defendants who have shown a prior legal title.
The judgment is affirmed, with costs to defendants.
Chandler, C. J., and Boyles, North, Starr, Butzel, and Bushnell, JJ., concurred. Wiest, J., took no part in this decision. | [
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Bushnell, J.
Plaintiff Sylvester Craft filed a bill of complaint seeking a decree of divorce. A summons was issued and served and defendant Beatrice Craft entered her appearance. Upon her failure to file an answer, a default.was entered and an order pro confesso filed. About six months later, defendant filed an answer and her default was set aside. An order was subsequently entered for temporary alimony.
Almost a year and a half after the answer was filed the cause came on for trial. Plaintiff put in his proofs and counsel for defendant informed the court that his client refused to appear. Defendant’s counsel cross-examined plaintiff’s witnesses and at the conclusion of the testimony the court informed plaintiff’s counsel that he might submit a decree the next morning. Some time later, upon a date not disclosed by the record, the defendant ap peared and testified in her own behalf. After hearing her testimony the court said:
“The Court: I am impressed that there is no very good reason for granting a divorce in this case.
“(Then followed discussion off the record)
“The Court: The plaintiff’s testimony was not very strong. It is about what is usually put in on pro confesso cases, which is, in most instances, just an excuse. At that time I indicated that a decree would be granted, because I understood at the time that there probably was no defense, and that the wife hadn’t any objections, but she has since come-in and made her objections and has talked voluminously. I think I will dismiss the bill of complaint. You may prepare an order dismissing the bill of complaint in this case without costs.”
■ Plaintiff appeals from the decree dismissing his bill of complaint. He claims that the court erred in permitting defendant to reopen the case without proper notice after the proofs had been taken and a decree ordered, and that the decree is against the great weight of the evidence. He argues that the court erred in law and in fact in not granting the decree as originally ordered.
There is no merit to the first claim of error because plaintiff’s counsel was present when the defendant testified and did not ask for a continuance.
Plaintiff’s proofs consisted of his own testimony which was corroborated by two other witnesses. Although plaintiff made out a prima facie case for divorce and defendant’s testimony is so irrational and incoherent that it cannot be said to possess much value as evidence, nevertheless on this record we are reluctant to reverse the decision of the trial judge who has had the advantage of seeing and hearing the witnesses.
The decree is affirmed. Defendant not having filed a brief, no costs will be allowed.
Chandler, C. J., and Boyles, North, Starr, Butzel, and Sharpe, JJ., concurred. Wiest, J., did not sit. | [
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