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PER CURIAM. The Due Process Clause of the Fourteenth Amendment affords an accused a constitutional right to present witnesses in his own defense. Substantial government interference with a defense witness’s choice to testify violates this right. Here, the interference involved a prosecution witness, Dennis Hoskins. Minutes after Hoskins agreed to testify at defendant Devaun Lopez’s trial, the prosecutor threatened Hoskins that deviation from his preliminary-examination testimony would result in prosecution for perjury and life imprisonment on conviction. Hoskins subsequently invoked his Fifth Amendment privilege, and his preliminary-examination testimony was presented to the jury. The trial court acknowledged that Hoskins refused to testify because he felt “threatened” by the prosecutor. Lopez contends that because the prosecutor’s conduct procured Hoskins’s unavailability, the prosecutor was precluded from relying on an exception to the hearsay rule, MRE 804(b)(1), to support the introduction of Hoskins’s former testimony. Our Supreme Court has forcefully condemned pros-ecutorial intimidation of witnesses, People v Pena, 383 Mich 402; 175 NW2d 767 (1970), and so has this Court, People v McIntosh, 142 Mich App 314; 370 NW2d 337 (1985). No principled basis exists for distinguishing between the intimidation of defense witnesses and the silencing of prosecution witnesses. Because the prosecutor’s threat procured Hoskins’s unavailability, the trial court erred by admitting Hoskins’s recorded testimony. We vacate and remand for a new trial. i Lopez and his codefendant, Jarriel Reed, stood trial for the shooting death of Terry Johnson. Johnson was gunned down as he stood on a Saginaw sidewalk. He had just finished a trip to a nearby market. He was accompanied on the walk by his mother, Diane Austin, and a friend. Austin immediately deduced that Johnson’s ex-girlfriend, Dominique Williams, had fired the fatal shots, as Johnson and Williams had engaged in “[a] real raging argument” earlier that day. Following the argument, Williams had threatened to kill Johnson and brandished a knife to validate her intentions. The police cleared Williams after interviewing her and conducting a comprehensive investigation. The inves tigation unearthed several pieces of evidence tying Lopez and Reed to the shooting. The investigating officers found fresh, spent .380-caliber shell casings approximately one block from the scene. One officer recognized the casings as identical in caliber, color, and brand to those found near a drive-by shooting committed eight days earlier. The police suspected that Hoskins had been the shooter in that case, accompanied by Reed and Lopez. Information obtained from a resident in the neighborhood of Johnson’s shooting sharpened the focus on Lopez. The witness reported seeing a man run down the sidewalk after the gunfire. During a photo show-up, she picked out Lopez as appearing “most like the runner,” but she could not make a definitive identification. Adding to the data pointing to Reed’s involvement, a friend of his told the police that Reed had admitted to killing Johnson, confessing, “I did it, I did it, I got the wrong one.” Dennis Hoskins supplied the core evidence tying Lopez to Johnson’s murder. During his preliminary examination, Hoskins conceded that he faced a charge of assault with intent to commit murder arising from the drive-by shooting, and that Lopez had testified against him during the preliminary examination in that case. Several months after Johnson’s shooting, Hoskins agreed to provide information to the police and prosecutor incriminating Reed and Lopez. He testified that both had admitted to participating in Johnson’s murder, with Lopez acting as the trigger-man. According to Hoskins, Reed initially believed that Johnson was a man called “Zeke” who had shot and wounded Reed’s brother some years earlier. Hoskins claimed that Reed and Lopez had openly discussed various details of Johnson’s killing, including that the gun involved was a .380 caliber. One week before the joint trial of Reed and Lopez was scheduled to begin, the prosecutor filed a motion to declare Hoskins “unavailable” as a witness and to admit his preliminary-examination testimony pursuant to MRE 804(b)(1). The motion was based on a voicemail the prosecutor received from Hoskins’s attorney, Robert Dunn, advising that Hoskins was no longer willing to testify. The Court considered the prosecutor’s motion on the day before trial. Hoskins asserted at this hearing, “I wish to testify at trial.” A court officer then guided Hoskins from the courtroom. The following morning, before jury selection, the prosecutor referenced an issue that had been discussed in chambers and off the record. He advised the court, “[I]t was brought to my attention, that as Mr. Hoskins was leaving the courtroom and after we had the hearing on the motion to declare him unavailable, that he made comments to Mr. Lopez and Mr. Reed to the effect that, T’ve got you covered, bro.’ ” The prosecutor explained that he had interpreted this statement to mean that Hoskins “may intend to perjure himself during this trial, or give testimony that’s inconsistent with his testimony at the preliminary examination.” Citing an unpublished opinion issued by this Court in 1997, the prosecutor requested that the court summon Hoskins and advise him, outside the presence of the jury, “of his Fifth Amendment right if he does intend to give perjured testimony, to make sure he is aware of his rights, and then determine what if anything he decides to do at that point.” The prosecutor then brought to the trial court’s attention that Reed’s counsel, Edwin Johnson III, had accused the prosecutor of “threatening or intimidating Mr. Hoskins during our colloquy with him yesterday morning.” According to the prosecutor, attorney Johnson had been the first to advise Hoskins that he could face perjury charges. The prosecutor continued, “I did follow that up with I’m not going to threaten you, but we will — we could possibly charge you with perjury if you do say something that’s inconsistent with what you testified to at the preliminary examination.” The prosecutor urged that this Court’s unpublished 1997 case supported that “if I did in fact, I suppose, quote-unquote, threaten him, . . . the court says that’s not a threat. That’s just the reality. If you do provide perjured testimony, you could in fact be charged with perjury.” Attorney Johnson took issue with the prosecutor’s reprise of the interaction. “It’s not just that the prosecutor, in my view, threatened the witness,” Johnson urged, “but he also stated to the witness that if he were convicted, he would be facing life in prison, which is a misstatement of the law.” Lopez’s attorney interjected that he witnessed the interaction with Hoskins. He described that the prosecutor did in fact tell the witness that he would be looking at life. And the manner in which [the prosecutor] spoke was not as he spoke here; it was more of a threatening, kind of an aggressive statement to this young man. It wasn’t just, well, these are your rights, young man. You know, just the tone of his voice, it sounded like a threat to me. One of the investigating officers was also in the room during the discussion with Hoskins. She reported, “I didn’t hear any threats or anything. [The attorneys] spoke to Mr. Hoskins just as they spoke to you .... I didn’t hear any threatening from either one of them.” The court noted that Hoskins consulted with his own attorney before agreeing to testify. As neither Hoskins nor his counsel was present, the court indicated it would revisit the issue outside the presence of the jury when Hoskins took the stand. Hoskins and his counsel, Dunn, were present on the third day of the trial. Attorney Dunn indicated that he and Hoskins had discussed the issue further. The following colloquy ensued: Mr. Dunn: I believe at this point, after considering the matter again, he wishes to exercise his Constitutional right under the Fifth Amendment of the United States Constitution and refuse to answer questions which could subject him, possibly, to a charge of perjury if he were to answer them. The Court. Mr. Hoskins, did you hear and understand what [your attorney] has stated to the Court? [Hoskins]: Yes. The prosecutor’s told me — they threatened me with life in prison. The Court. Okay. With regard to your right to testify or not testify, do you wish to exercise your Fifth Amendment privilege and not testify at this time? [Hoskins]: Yes, sir. After Hoskins was escorted from the courtroom, the prosecutor renewed his motion to declare Hoskins unavailable and to admit his preliminary-examination testimony pursuant to MRE 804(b)(1). Reed’s counsel asked that “the record.. . reflect” that Hoskins had elected against testifying because he had been threatened with life imprisonment if his testimony differed from that given at the preliminary exam. Counsel requested that the jury be instructed that it was the prosecutor’s duty to produce this witness who was rendered unavailable by the prosecution itself, and that the jury could “infer that his testimony would have been damaging to their case had he appeared.” Reed’s counsel also objected to the admission of the preliminary-examination testimony “because I can’t cross-examine a transcript” and “there was evidence produced after the preliminary exam that would impeach his testimony during the preliminary exam.” But counsel “reluctantly underst[oo]d that” the exam could be placed into evidence under the circumstances. Lopez’s attorney further requested that the jury be advised of Hoskins’s recent conviction, and the court agreed. The court proceeded to play the recording of Hosk-ins’s preliminary-examination testimony into the record. No explanation was given to the jury at that time regarding this procedure. The following day, the prosecutor called attorney Dunn to the stand. Reed’s counsel elicited the following information: Q. And isn’t it true that [Hoskins] came in and put a statement on the record as it relates to whether he was going to testify in this trial or not? A. Just before the start of this trial, that’s correct. Q. And isn’t it true that, in his statement, he said that he was taking the Fifth Amendment? A. That’s right. He was exercising his constitutional right not to testify. Q. And isn’t it true that he unsolicited — in an unsolicited manner added to that that the reason that he was taking the Fifth Amendment is because he felt he had been threatened by the prosecution with life imprisonment? A. Yes. I believe the prosecutor had told him that the penalty for perjury in a murder trial is up to life in prison, which is correct. Q. Mm-hmm. But the penalty for perjury in a preliminary exam of a murder trial is not life imprisonment; is it? A. No, it’s 15 years. I don’t know of anybody that would want to do 15 years in a Michigan prison. Q. That wasn’t the question I asked you. I asked you, isn’t it true that wasn’t - that the penalty for telling an untruth in a preliminary exam is not life imprisonment? A. I believe that’s correct. Q. And isn’t it true that his statement was that he wasn’t testifying because he felt as though the prosecution threatened him with life imprisonment? A. No, that was an add-on, as you say, unsolicited statement, was not in response to the question. He did not want to take the chance that possibly he could be charged with peijury and face up to life in prison, so he exercised his Fifth Amendment right. Q. Sir, is it not the truth that he sat on that stand, and in an unsolicited statement, under oath, stated that the reason he was taking the Fifth was because he felt threatened by the prosecutor, who had threatened him with life imprisonment? Isn’t that what he said? A. That’s not exactly what he said. Lopez’s counsel then secured testimony that Hoskins had been charged with three counts of assault with intent to murder, which came with a possible life sentence. Hoskins ultimately pleaded to lesser counts of felonious assault, a four-year felony, Dunn testified. On redirect, the prosecutor presented Hoskins’s plea agreement in which he agreed to testify against Lopez and Reed. The document gave Hoskins advance warning of the consequences of perjury. The prosecutor also elicited that Hoskins did not tell Dunn that the prosecutor had threatened him before taking the stand and invoking his Fifth Amendment privilege. On the final day of trial, Reed’s counsel moved to strike Hoskins’s testimony under MRE 804(a), which defines when a witness may be deemed unavailable. Counsel asserted that the prosecutor caused Hoskins’s absence through his threats, vitiating the applicability of the MRE 804(b) hearsay exceptions. The prosecutor denied making any threats and reiterated that Reed’s counsel actually broached the subject with Hoskins. The prosecutor emphasized attorney Dunn’s testimony regarding Hoskins’s motivations. Moreover, the prosecutor argued that defense counsel had ample opportunity to cross-examine Hosk-ins at the preliminary examination. The court ultimately ruled: Well, this is all very interesting and we’ve made a clear record of your positions. I’m going to deny the motion itself. The witness himself indicated he felt threatened; that’s why he wasn’t testifying. Mr. Dunn could say what he wanted to say, but I’m not going to take his testimony over the witness’s testimony himself. The jury subsequently convicted Lopez of first-degree premeditated murder, conspiracy, and several weapons-related charges. Lopez now appeals, challenging only the admission of Hoskins’s preliminary-examination testimony. II. ANALYSIS MRE 804(b)(1) excepts from the rule against hearsay a witness’s prior testimony given under oath and subject to cross-examination by the opposing party if, as contemplated in MRE 804(a)(1), the witness is unavailable to testify because he or she has invoked a privilege. People v Meredith, 459 Mich 62, 65-67; 586 NW2d 538 (1998). The admission of former testimony tested by cross-examination generally comports with the requirements of the Confrontation Clause. See People v Garland, 286 Mich App 1, 7; 777 NW2d 732 (2009). However, MRE 804(a) posits that “[a] declarant is not unavailable as a witness if’ his or her refusal to testify “is due to the procurement or wrongdoing of the proponent of a statement for the purpose of preventing the witness from attending or testifying.” Lopez contends that Hoskins could not be deemed unavailable because the prosecutor procured his absence by threatening him with a charge of perjury and lifetime imprisonment. Lopez presents two closely interrelated arguments: that the prosecutor behaved wrongly in “threatening” Hoskins with a perjury prosecution, and that the prosecutor “procured” Hoskins’s unavailability by virtue of the threats. We examine each in turn. In Webb v Texas, 409 US 95, 95-96; 93 S Ct 351; 34 L Ed 2d 330 (1972), the United States Supreme Court reversed a defendant’s conviction based on the conduct of the trial judge, who “on his own initiative, undertook to admonish” the sole defense witness that he would be prosecuted for perjury if he took “the witness stand and lie[d] under oath.” (Quotation marks omitted.) The witness was serving a prison sentence at the time. Id. at 95. “It will also be held against you in the penitentiary when you’re up for parole,” the judge declared, “and the Court wants you to thoroughly understand the chances you’re taking by getting on that witness stand under oath.” Id. at 96 (quotation marks omitted). The Supreme Court observed that the judge had not only “gratuitously singled out this one witness for a lengthy admonition on the dangers of perjury,” but had also implied that he expected [the witness] to lie, and went on to assure him that if he lied, he would be prosecuted and probably convicted for perjury, that the sentence for that conviction would be added on to his present sentence, and that the result would be to impair his chances for parole. [Id. at 97.] This conduct “effectively drove that witness off the stand,” the Court held, “and thus deprived the petitioner of due process of law under the Fourteenth Amendment.” Id. at 98. Our Supreme Court had confronted a somewhat analogous factual scenario two years before Webb was decided, and reached essentially the same conclusion. In Pena, 383 Mich 402, the threat of perjury was made by a prosecutor rather than a judge. The prosecutor sent a letter to three defense witnesses, on official stationery, that simply quoted verbatim the statute punishing perjury. Defense counsel moved to dismiss the charges “on the ground that the prosecutor’s ‘letter’ violated the Fourteenth Amendment of the United States Constitution by intentionally intimidating the defense witnesses.” Id. at 405 (opinion by T. G. KAVANAGH, J.). The trial court denied the motion. Two of the witnesses subsequently testified for the defense, while one called as a prosecution witness claimed to have forgotten her whereabouts at the relevant time. Id. at 407 (DETHMERS, J., dissenting). Three justices of the Supreme Court determined that a new trial was required, pithily observing: The Constitutional right of a defendant to call witnesses in his defense mandates that they must be called without intimidation. The manner of testifying is often more persuasive than the testimony itself. A prosecutor may impeach a witness in court but he may not intimidate him—in or out of court. [Id. at 406 (opinion by T. G. KAVANAGH, J.).] The case referred to was People v Daniels, unpublished opinion per curiam of the Court of Appeals, issued July 11, 1997 (Docket No. 184692). The letters read: Dear Madam: In the interests of justice I am quoting Michigan Statutes Annotated 28.644, which provides as follows: “Any person who, being lawfully required to depose truth in any proceeding in a court of justice, shall commit perjury shall be guilty of a felony, punishable, if such perjury was committed on the trial of an indictment for a capital crime, by imprisonment in the state prison for life, or any term of years, and if committed in any other case, by imprisonment in the state prison for not more than fifteen (15) years.” Very truly yours, G. E. Thick Assistant Prosecuting Attorney [Id. at 405 (opinion by T. G. Kavanagh, J.).]
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PER CURIAM. These consolidated appeals present the same legal issue: the validity of liens for unpaid utility charges assessed by the city of Holland’s Board of Public Works (BPW) under the city’s charter and ordinances as authorized by MCL 141.121(3) and en forced in the same manner as delinquent property taxes. The liens secured payment for electric and water services to property that appellant, Sau-Tuk Industries, Inc., leased to Michigan Wood Pellet, LLC (MWP) and were enforced by appellee Allegan County Treasurer at its annual sale of properties to satisfy delinquent taxes. In Docket No. 324405, Sau-Tuk appeals by right the trial court’s October 10, 2014 order that granted appellee Allegan County’s motion for summary disposition because appellant failed to comply with the plain language of MCL 141.121(3) and the city’s ordinances to exempt the property from the utility liens. Sau-Tuk also appeals by right the portion of the trial court’s February 2, 2015 judgment of foreclosure of properties for unpaid taxes that included the property at issue (Docket No. 325926). We conclude that the trial court correctly ruled that because Sau-Tuk failed to follow the plain mandate of MCL 141.121(3) and the city’s ordinances to forestall the liens, Allegan County was entitled to summary disposition in Docket No. 324405 and a judgment of foreclosure in Docket No. 325926. We affirm. I. STATE STATUTE AND LOCAL ORDINANCES AT ISSUE Section 21 of the Revenue Bond Act (RBA), MCL 141.101 et seq., MCL 141.121, is at issue in these cases. Under the RBA, a public corporation—such as a city or county, see MCL 141.103(a)—is “authorized to purchase, acquire, construct, improve, enlarge, extend or repair 1 or more public improvements and to own, operate and maintain the same, within or without its corporate limits, and to furnish the services, facilities, and commodities of any such public improvement to users within or without its corporate limits.” MCL 141.104. A “public improvement” is defined to include sewage disposal and water supply systems and “utility systems for supplying light, heat, or power . . . MCL 141.103(b). Pertinent to collecting charges for such utility services, Section 21 of the RBA provides: Charges for services furnished to a premises may be a lien on the premises, and those charges delinquent for 6 months or more may be certified annually to the proper tax assessing officer or agency who shall enter the lien on the next tax roll against the premises to which the services shall have been rendered, and the charges shall be collected and the lien shall be enforced in the same manner as provided for the collection of taxes assessed upon the roll and the enforcement of the lien for the taxes. The time and manner of certification and other details in respect to the collection of the charges and the enforcement of the lien shall be prescribed by the ordinance adopted by the governing body of the public corporation. However, in a case when a tenant is responsible for the payment of the charges and the governing body is so notified in writing, the notice to include a copy of the lease of the affected premises, if there is one, then the charges shall not become a lien against the premises after the date of the notice. In the event of filing of the notice, the public corporation shall render no further service to the premises until a cash deposit in a sum fixed in the ordinance authorizing the issuance of bonds under this act is made as security for the payment of the charges. [MCL 141.121(3) (emphasis added).] Pursuant to the authorization in MCL 141.121(3), the city of Holland, in Chapter 12 of its charter, provides for municipal ownership of utilities and for the creation of liens to secure payment for utility services, which “become effective immediately upon the distribution or supplying of such utility service or services to such premises.” Holland Charter, § 12.18. Furthermore, the city of Holland, in its code of ordinances, provides for the creation and enforcement of liens by which it may recover charges for utility ser vices, subject to the landlord exception of MCL 141.121(3). As authorized by the RBA, § 9-3 of Holland’s code of ordinances provides that the city, subject to state law, “shall have as security for the collection of all charges for electric services ... a lien upon the premises to which such electric services were supplied. Such liens shall become effective immediately upon the distribution or supplying of such electric service or services to such premises.” Section 9-6 of Holland’s code of ordinances also adopts the landlord exception of MCL 141.121(3), which provided at all times pertinent to this case: If the owner of a premises which receives electric services provided by the City shall lease such premises to a tenant who is responsible under the lease for the payment of the charges for electric services, and such property owner notifies the Board of public works [BPW], in writing, of such fact, the notice to include a true copy of the lease of the affected premises, if there is one, then the charges for electric services provided to such premises shall not become a lien against the premises after the date such notice is received by the [BPW]. Immediately after the filing of such notice, the [BPW] shall render no further service to the premises until it receives from the tenant, or an individual or entity acting on behalf of the tenant, a cash deposit or surety bond, as established by resolution adopted by City Council, or it receives record of a previously established good credit history of not less than 12 consecutive months, as security for the payment of the electric charges. . .. [Holland City Code, § 9-6.][ ] The city of Holland also provides for the creation of a lien on premises to which water services are pro vided. See Holland City Code, § 37-30. Although a nominal part of this case, the exception to imposition of a lien for water charges provides: If the owner of a premises which receives water services provided by the City shall lease such premises to a tenant who is responsible under the lease for the payment of the charges for water services accruing subsequent to the filing of an affidavit by the property owner with the Board of Public Works, said affidavit to affirm the execution of such a lease containing a provision regarding the tenant’s responsibility for payment of the charges for water services and to contain a notation of the expiration date of the lease, then the charges for water services provided to such premises shall not become a lien against the premises after the date such affidavit is received by the Board of Public Works.. . . [Holland City Code, § 37-33; see also MCL 123.165.] IX. FACTS AND PROCEEDINGS Sau-Tuk owns the property at issue in these appeals and leased it to MWP for an initial lease term that extended from November 1, 2006, to October 31, 2011. Sau-Tuk then renewed the lease for an additional five years from October 31, 2011. Under the terms of the lease, as stated in the trial court’s opinion, MWP “assumed responsibility for the payment of all utility charges, taxes, and fees,” as well as the “operation, repair, maintenance and management of the Property.” Sau-Tuk acknowledges that it did not initially inform the BPW of this fact in a written notice and with a copy of the lease as is required by MCL 141.121(3) and city ordinance to exempt the property from the imposition of a lien for any unpaid utility charges. Sometime in October 2006, MWP contacted the BPW about providing utility services to the property. Because MWP was a new business without an estab lished good credit history, and because MWP was renting the property, the BPW required MWP to provide either a surety bond or a cash deposit as a condition of obtaining utility services. According to Julie Thompson, the BPW’s corporate designee, the BPW does not require security by owners of property who request utility services. MWP complied with the request and obtained a surety bond in the amount of $54,000 in May 2007. The amount of the surety bond was determined by the BPW and approved by an assistant city attorney in an April 2, 2007 letter to the insurance company. Sau-Tuk argues that this letter and Thompson’s testimony show that the BPW had actual knowledge of MWP’s tenancy and obligation to pay for utility services provided to the property. After MWP obtained the surety bond, the BPW began providing utility services to the subject property and billing MWP directly for those services. MWP timely paid all charges for water and electric service between 2007 and 2010. During this time frame, MWP renewed its surety bond several times before the BPW released it from its surety-bond requirement in a March 17, 2010 letter because MWP had established “a good payment history of twelve consecutive months . . . .” Thereafter, MWP continued timely paying its utility bills. In May 2011, MWP began to fall behind on its utility payments. By the January 2012 BPW statement for utility services, MWP owed $74,324.77, of which $35,390.52 was delinquent. On March 8, 2012, Sau-Tuk, for the first time, sent the BPW a written notice, with a copy of the lease, of MWP’s agreement to pay for utility charges incurred at the leased property. On January 14, 2014, the Allegan County Treasurer served Sau-Tuk with a notice of forfeiture based on the unpaid utility charges that MWP had incurred. The notice of forfeiture referred to the delinquent utility charges as delinquent property “taxes,” setting forth a schedule of dates by which payment must be made and, if not paid, advising that the trial court would enter a judgment of foreclosure sometime between February 1, 2015, and March 31, 2015. The Allegan County Treasurer ultimately filed its petition for foreclosure in the trial court on May 14, 2014. The petition resulted in the judgment of foreclosure appealed in Docket No. 325926. Sau-Tuk responded to the foreclosure notice by filing a complaint in the trial court on March 10, 2014, seeking a declaration that the liens were improper and invalid. In support of its claim for declaratory relief, Sau-Tuk relied on § 9-6 of the Holland City Code, which, as set forth earlier, prevents a lien from arising against the premises for unpaid electric charges if the owner of the premises provides a written notice, with a copy of the lease, showing that a tenant is responsible under the lease for the payment of those charges. Although Sau-Tuk did not send a written notice to the BPW that MWP was responsible for paying utility charges under a lease along with a copy of the lease until the utility charges in this case were incurred, Sau-Tuk alleged that the requirements of the notice provision of § 9-6 (and of § 37-33) were satisfied be cause the BPW had actual notice that MWP was renting the property and responsible for paying utility charges. Sau-Tuk asserted that because “the goal and intended purpose” of the city ordinance had been satisfied, the city and county were barred from placing a lien on the property for unpaid utility charges that MWP incurred during its tenancy. On August 4, 2014, the county moved the trial court for summary disposition in its favor pursuant to MCR 2.116(C)(10). In pertinent part, the county argued that it was entitled to judgment as a matter of law because both § 9-6 of the city ordinances and MCL 141.121(3), from which the city ordinance derived, required a property owner to file a written notice advising that a tenant of the property is responsible for utility charges. The county argued that under the terms of the city ordinance and state statute, a written notice must be given before any utility charges are incurred to avoid a lien from arising against the property. Therefore, because it was undisputed that Sau-Tuk did not file its written notice until after MWP incurred the utility charges, the county argued that the notice was “too late ... to prevent a lien from attaching to the property for the unpaid utilities.” On August 5, 2014, Sau-Tuk filed its own motion for summary disposition pursuant to MCR 2.116(C)(9) (opposing party has failed to state a valid defense) and (0(10). Sau-Tuk’s (C)(9) motion was premised on its argument that the county’s sole defense—that Sau-Tuk failed to comply with MCL 141.121(3) by providing written notice with a copy of the lease to the BPW that a tenant was responsible for payment of the charges— was “untenable” because the notice provision was satisfied in that the BPW had actual notice of MWP’s tenancy and responsibility for paying the utility charges. The trial court ultimately denied Sau-Tuk relief under MCR 2.116(C)(9) because such a motion could be decided on the pleadings only, and the county had unambiguously asserted in its answer “that actual notice does not constitute compliance with the notice provision of MCL 141.121(3).” While Sau-Tuk states in its brief on appeal the legal standard for motions under MCR 2.116(C)(9), Sau-Tuk does not specifically challenge the trial court’s ruling. Consequently, this part of Sau-Tuk’s appeal is abandoned. Prince v MacDonald, 237 Mich App 186, 197; 602 NW2d 834 (1999). Moreover, the essence of the parties’ claims was decided adversely to Sau-Tuk by the trial court’s ruling under MCR 2.116(0(10). The trial court held a hearing on the parties’ motions on October 6, 2014. At the outset, Sau-Tuk acknowledged that it did not initially provide the BPW with an affidavit and a copy of the lease. Nonetheless, Sau-Tuk argued that it had substantially complied with the notice requirement and also that the triál court should “apply the doctrine of estoppel or otherwise declare that the purpose and the intent of the statute has been satisfied” because strict compliance with the notice requirement would not have led to a different result. Sau-Tuk argued that the BPW required MWP to obtain a surety bond, thus demonstrating that it was on actual notice that MWP was a tenant responsible for paying the utility charges. The county responded that the purpose of the ordinance is “only fulfilled if the owner actually seeks to . . . protect their rights” by filing written notice of the tenant’s obligation to pay utility charges. Because Sau-Tuk “never acted to protect itself,” the county argued that Sau-Tuk failed to comply with the notice requirement. On October 10, 2014, the trial court issued its written opinion and order denying Sau-Tuk’s motion for summary disposition and granting the county’s motion. With respect to Sau-Tuk’s motion under MCR 2.116(0(10), the trial court first concluded that Sau-Tuk had not substantially complied with the notice requirements of MCL 141.121(3) and Holland’s ordinances. The trial court reasoned that to avoid a lien encumbering property furnished utility services, a property owner must, with respect to electric services, provide the BPW a written notice under § 9-6 and, with respect to water services, provide the BPW an affidavit under § 37-33, and both must be accompanied by a copy of the lease. The court further ruled that the clear and unambiguous terms of § 9-6 and § 37-33 required that the property owner, not the tenant or other entity, give written notice of the lease and the tenant’s responsibilities. Thus, the court concluded that Sau-Tuk “did nothing to comply with the statute, and left the protection of its property rights to its tenant. . . .” The court also reasoned that Sau-Tuk, in essence, acknowledged that it knew that it had not previously complied with the statutory notice requirement by filing an affidavit “after the utility charges in question had been incurred.” The trial court next concluded that Sau-Tuk’s estop-pel argument was unavailing. Sau-Tuk argued that by requiring MWP to post a surety bond and billing MWP for the utility services provided, the BPW induced Sau-Tuk to believe that compliance with MCL 141.121(3) and § 9-6 was not necessary. The trial court acknowledged that in certain circumstances equitable estoppel may apply to a municipality. The court reasoned, however, that although the BPW required MWP to obtain a surety bond, that act was not sufficient to estop the BPW from requiring written notice of Sau-Tuk because it would not be possible to conclude that Sau-Tuk justifiably relied and acted on the belief that it need not comply with the plain terms of the statute and city ordinance to protect itself from a lien against the property. The court ruled that Sau-Tuk was presumed to know the requirements of a law and could not attribute fault to the BPW for its own failure to act. The trial court also noted that Sau-Tuk failed to contact the BPW directly regarding whether MWP’s actions satisfied the written notice requirement of MCL 141.121(3) and § 9-6. Therefore, the court ruled that equitable estoppel did not apply. The trial court next ruled in favor of the county on its motion for summary disposition. Applying the principles of statutory construction, the trial court reasoned that because MCL 141.121(3) was clear and unambiguous, it must be enforced as written. That is, MCL 141.121(3) requires a property owner-landlord to provide written notice of a tenant’s obligation to pay utility charges, along with a copy of the lease agreement. The provisions of § 9-6 of Holland’s ordinances are substantially similar. The trial court opined that “if the notice provisions of MCL § 141.121 and the Holland ordinances could be satisfied by nothing more than a tenant giving written notice to the BPW, without a copy of his or her lease, those notice provisions would be rendered nugatory.” Because Sau-Tuk failed to comply with the plain language of MCL 141.121(3) and the Holland ordinances that required a landlord to submit written notice and a copy of the lease to the BPW before the utility services were provided to the property, the trial court concluded that a valid lien to secure payment of charges for those services attached to the property. The trial court therefore granted the county summary disposition. Notwithstanding the trial court’s order establishing the validity of the utility liens, Sau-Tuk filed an objection to the pending foreclosure petition. In support of its objections, Sau-Tuk relied on the same arguments previously presented in the declaratory action. At a hearing on the objections, the trial court determined that the foreclosure petition would proceed because Sau-Tuk was barred by the doctrine of res judicata from raising arguments already decided in the previous action. Consequently, the trial court entered its judgment of foreclosure that included Sau-Tuk’s property. Sau-Tuk subsequently appealed the judgment of foreclosure in Docket No. 325926, and this Court consolidated the appeal with the appeal in Docket No. 324405. III. ANALYSIS A. STANDARD OF REVIEW This Court reviews de novo a trial court’s decision on a motion for summary disposition. Maiden v Rozwood, 461 Mich 109, 118; 597 NW2d 817 (1999). In this case, the parties filed competing motions for summary disposition pursuant to MCR 2.116(0(10), which may be granted if, “[e]xcept as to the amount of damages, there is no genuine issue as to any material fact, and the moving party is entitled to judgment or partial judg ment as a matter of law.” In deciding a motion under MCR 2.116(0(10), the trial court must consider affidavits, pleadings, depositions, admissions, and any other evidence submitted by the parties in the light most favorable to the nonmoving party. Maiden, 461 Mich at 120. The trial court properly grants the motion when the proffered evidence fails to establish any genuine issue of material fact and the moving party is entitled to judgment as a matter of law. West v Gen Motors Corp, 469 Mich 177, 183; 665 NW2d 468 (2003); MCR 2.116(C(10). The issue presented in these appeals concerns the interpretation of both a state statute and municipal ordinance provisions. Statutory interpretation presents a question of law, which this Court reviews de novo. Mayor of Cadillac v Blackburn, 306 Mich App 512, 516; 857 NW2d 529 (2014). Municipal ordinances are interpreted and reviewed in the same manner as statutes. Bonner v Brighton, 495 Mich 209, 221-222; 848 NW2d 380 (2014). Therefore, our review is de novo, and “the rules governing statutory interpretation apply with equal force to a municipal ordinance[.]” Id. at 222. As we stated in Mayor of Cadillac, 306 Mich App at 516: When interpreting a statute, our primary goal is to give effect to the intent of the Legislature. If the language of a statute is unambiguous, we presume the Legislature intended the meaning expressed in the statute. A statutory provision is ambiguous only if it conflicts irreconcilably with another provision or it is equally susceptible to more than one meaning. .. . When construing a statute, we must assign every word or phrase its plain and ordinary meaning unless the Legislature has provided specific definitions or has used technical terms that have acquired a peculiar and appropriate meaning in the law. [Quotation marks and citations omitted.] Similarly, “the goal of construction and interpretation of an ordinance is to discern and give effect to the intent of the legislative body.” Bonner, 495 Mich at 222. The most reliable evidence of that intent is the language of the ordinance itself, which must be given its plain and ordinary meaning. Id. When the words used in a statute or an ordinance are clear and unambiguous, they express the intent of the legislative body and must be enforced as written. Gilliam v Hi-Temp Prod Inc, 260 Mich App 98, 109; 677 NW2d 856 (2003); Brandon Charter Twp v Tippett, 241 Mich App 417, 422; 616 NW2d 243 (2000). B. DISCUSSION We conclude that even if Sau-Tuk could prove that Holland’s BPW had actual knowledge of MWP’s tenancy and responsibility under its lease to pay for utility charges, because Sau-Tuk failed to follow the clear and unambiguous direction of MCL 141.121(3) and the city’s ordinances to prevent the utility liens at issue from arising, the trial court properly enforced the statute and ordinances as written by granting Allegan County summary disposition in Docket No. 324405 and granting a judgment of foreclosure in Docket No. 325926. The legal issue presented in these appeals is not exactly one of first impression. The trial court, in addition to enforcing the plain language of the statute and Holland’s ordinances, also relied on Saginaw Landlords Ass’n v Saginaw, unpublished opinion per curiam of the Court of Appeals, issued November 2, 2001 (Docket No. 222256). Although unpublished opinions of this Court are not binding precedent, they may be considered instructive or persuasive. Paris Meadows, LLC v Kentwood, 287 Mich App 136, 145 n 3; 783 NW2d 133 (2010). In Saginaw Landlords Ass’n, unpub op at 1-2, this Court addressed whether Saginaw’s liens for unpaid water charges were valid and enforceable against the plaintiffs’ properties under the terms of MCL 141.121(3) and Saginaw Administrative Code, § 4-108, comparable to Holland’s § 9-3 and § 9-6. Section 4-108 provided that “charges for water and services” are “made a lien on all premises served thereby, unless notice is given that a tenant is responsible” as provided by MCL 141.121(3). The plaintiffs argued that “their tenants’ completed water applications provided defendant with sufficient notice of the tenants’ responsibility for payment to preclude defendant from enforcing liens under [MCL 141.121(3)] and the city ordinance.” Saginaw Landlords Ass’n, unpub op at 3-4. This Court rejected the plaintiffs’ argument, holding that the tenants’ applications did not satisfy the notice requirements of the statute because Saginaw “was not provided any additional written notice specifically indicating that the tenant agreed to be responsible for payment of the water bills under leases executed with plaintiffs, a requirement even if the leases themselves were oral.” Id. at 4. Thus, the Court implicitly concluded that a municipal corporation’s actual knowledge of a tenant’s obligation to pay utility charges was insufficient to save the property owner from a lien to secure payment if the tenant fails to pay arising by operation of law against the property served. In so doing, this Court concluded that the notice provision of MCL 141.121(3), as well as that of the city’s ordinance, was clear and unambiguous, and that the water applications submitted by the tenants “did not satisfy” the statute’s plain terms. Saginaw Landlords Ass’n, un-pub op at 2, 4. This Court concluded that “[i]f the notice required by [Saginaw’s] ordinance was satisfied simply by a tenant’s completion of the water application, it would render meaningless the statutory language requiring written documentation of the lease agreement fixing responsibility for water payment on a tenant.” Id. at 4. We find Saginaw Landlords Ass’n persuasive because it applied the plain text of the statute and pertinent ordinances. As the trial court correctly observed, and as this Court determined in Saginaw Landlords Ass’n, MCL 141.121(3) is plain and unambiguous. The statute plainly provides that when a public corporation, such as Holland, provides utility services, the “[c]harges for [the] services furnished to a premises may be a lien on the premises . . . Holland, in its charter and in its code of ordinances, has acted on this statutory authority by creating liens on premises that arise and attach to the premises furnished utility services at the time the services are provided. At oral argument, we requested that the parties further brief the issue of when the utility liens at issue “attached” to Sau-Tuk’s property. The question relates to whether the utility liens “attached” before or after Sau-Tuk’s March 8, 2012 written notice with a copy of the lease to the BPW—as required by MCL 141.121(3) and § 9.6—of MWP’s agreement to pay for utility charges incurred at the leased property. Sau-Tuk argues that the utility charges do not become a lien and attach until they have been certified and entered on the tax roll against the premises. Sau-Tuk relies on the provision in MCL 141.121(3) that states that the utility “charges delinquent for 6 months or more may be certified annually to the proper tax assessing officer or agency who shall enter the lien on the next tax roll against the premises to which the services shall have been rendered . . . .” We disagree with this analysis, which, although not totally without merit, conflates delinquent charges with the lien intended to secure payment of the charges. First, nowhere in the statute or Holland’s ordinances is the word “attach” used. Rather, MCL 141.121(3) authorizes a municipal corporation to create utility liens, see Saginaw Landlords Ass’n, unpub op at 2, and the statute also directs that the municipality prescribe by ordinance “[t]he time and manner of certification and other details in respect to the collection of the charges and the enforcement of the lien. . . .” So, the statute addresses: (1) the creation and enforcement of a lien and (2) the certification and collection of delinquent utility charges. Likewise, the language Sau-Tuk cites provides for the certification of delinquent charges and entry of the lien on the tax rolls. This language can only mean that the utility lien already exists when “the proper tax assessing officer or agency” certifies the delinquent utility charges and then enters the existing lien on the tax rolls. This reading is consistent with the very nature of a lien that only exists to secure payment of a debt—in this case, the utility charges. See Black’s Law Dictionary (10th ed), defining “lien” as “[a] legal right or interest that a creditor has in another’s property, lasting usu. until a debt or duty that it secures is satisfied.” See also Barrows v Baughman, 9 Mich 213, 217-218 (1861) (“The lien ... is intended as a security for ’Cae payment of the debt, and can only be enforced as a means of compelling payment”). Also, Black’s Law Dictionary (10th ed) defines “attach” as “[t]o annex, bind, or fasten,” and “[t]o take or seize under legal authority <attach the debtor’s assets>.” In this case, there is no question regarding to what property the utility lien attaches. The statute plainly specifies that the lien attaches to the premises furnished the utility services. MCL 141.121(3) (“Charges for services furnished to a premises may be a lien on the premises . . . .”); see Norcross Co v Turner-Fisher Assoc, 165 Mich App 170, 179-180; 418 NW2d 418 (1987) (discussing to which interests a construction lien “attached”). In this case, MCL 141.121(3) plainly authorizes the city of Holland to create a lien that attaches to premises furnished utility services to secure payment of the charges (the debt) for the utility services that are furnished to the premises and directs the city by ordinance to prescribe “[t]he time and manner of certification and other details in respect to the collection of the charges and the enforcement of the lien . . . .” In exercising this authority, Holland has created liens on premises that arise and attach to the premises furnished utility services at the time those services are provided. “Such liens shall become effective immediately upon the distribution or supplying of such electric [water] service or services to such prem ises. . . Holland City Code, §§ 9-3 and 37-30. We must enforce the clear and unambiguous provisions of the state statute and Holland’s ordinances as written. Gilliam, 260 Mich App at 109; Brandon Charter Twp, 241 Mich App at 422. As just discussed, the utility liens at issue arise by operation of law upon the furnishing of utility services to the premises. See Brown Bark I, LP v Traverse City Light & Power Dep’t, 736 F Supp 2d 1099, 1118, 1121 (WD Mich, 2010) (holding that utility liens authorized by MCL 141.121(3) and implemented by local ordinance arise “by operation of law, as provided by statute, without any need to rely on any private contract or other written undertaking, and without the need to file a lien”); see also Cheff v Haan, 269 Mich 593, 598; 257 NW 894 (1934) (noting that “liens upon real estate may be created only in writing [by contract] or by operation of law”). In this case, pursuant to MCL 141.121(3) and Holland’s ordinance provisions, liens on Sau-Tuk’s property to pay for the utility services—here, water and electricity—arose by operation of law at the time the services were furnished unless before the services were furnished Sau-Tuk invoked the landlord exception by giving the BPW written notice of MWP’s tenancy and obligation to pay for utilities (or an affidavit in the case of water service) and a copy of the written lease, if one exists. It is undisputed that Sau-Tuk failed to provide the BPW a written notice of MWP’s tenancy and obligation under the lease terms to pay for utility charges, as required by MCL 141.121(3) and Holland City Code, § 9-6, until after the utility services had been provided, the lien came into existence, and the charges had become delinquent. The issue then becomes whether Sau-Tuk may invoke the landlord exception, not by complying with the plain terms of the statute and city ordinance, but by present ing evidence that the BPW had actual knowledge of MWP’s tenancy and obligation to pay for utilities. Principles of statutory construction require that we reject Sau-Tuk’s argument. See Wyandotte Electric Supply Co v Electrical Technology Sys, Inc, 499 Mich 127, 140; 881 NW2d 95 (2016) (holding that the Court must give effect to every word, phrase, and clause of a statute requiring written notice under the public works bond act, MCL 129.201 et seq., to avoid rendering any part of the statute surplusage or nugatory). We agree with the reasoning of this Court in Saginaw Landlords Ass’n, unpub op at 4, that to accept Sau-Tuk’s argument would render nugatory the clear and unambiguous language of MCL 141.121(3) and Holland City Code, § 9-6. The statute and ordinance required Sau-Tuk to give written notice to the BPW of its lease with MWP and of its tenant’s obligation under the lease to pay the charges for utility services furnished the property to preclude the utility liens from arising. A clear and unambiguous statute needs no further construction, and its plain terms must be enforced as written. Gilliam, 260 Mich App at 109. “Stated otherwise, when a statute plainly and unambiguously expresses the legislative intent, the role of the court is limited to applying the terms of the statute to the circumstances in a particular case.” GMAC LLC v Dep’t of Treasury, 286 Mich App 365, 372; 781 NW2d 310 (2009). Furthermore, we may not pick and choose what parts of a statute to enforce; we must give effect to every word of a statute if at all possible so as not to render any part of the statute surplusage or nugatory. Id. at 373; Wyandotte Electric Supply Co, 499 Mich at 140. Similarly, we must also enforce as written the clear and unambiguous terms of Holland’s ordinances. Brandon Charter Twp, 241 Mich App at 422. Because Sau-Tuk failed to comply with the plain language of MCL 141.121(3) and the city’s ordinances to prevent the utility liens from arising, the trial court properly rejected Sau-Tuk’s argument that the BPW’s knowledge from other sources could prevent enforcement of liens in due course “in the same manner as provided for the collection of taxes assessed upon the roll and the enforcement of the lien for the taxes.” MCL 141.121(3). Like the trial court, we also reject Sau-Tuk’s argument that the county and the city should be estopped from asserting noncompliance with MCL 141.121(3) and § 9-6 of Holland’s ordinances because the BPW induced Sau-Tuk to believe strict compliance was not necessary when the BPW required MWP to post a surety bond and billed MWP directly for the utility services provided. Specifically, Sau-Tuk contends that the filing of the written notice required by these provisions is a prerequisite to the BPW’s right to insist upon a surety bond before providing utility services. The part of the statute on which Sau-Tuk relies provides: In the event of filing of the notice, the public corporation shall render no further service to the premises until a cash deposit in a sum fixed in the ordinance authorizing the issuance of bonds under this act is made as security for the payment of the charges. [MCL 141.121(3).] And the ordinance on which it relies provides: Immediately after the filing of such notice, the [BPW] shall render no further service to the premises until it receives from the tenant, or an individual or entity acting on behalf of the tenant, a cash deposit or surety bond, as established by resolution adopted by City Council, or it receives record of a previously established good credit history of not less than 12 consecutive months, as security for the payment of the electric charges. . .. [Holland City Code, § 9-6.] Clearly, both provisions require that once a municipality has been provided a written notice of a tenant’s obligation to pay utility charges, the municipality must refrain from providing further utility services to the property until it obtains adequate security to ensure payment. Nevertheless, the premise of Sau-Tuk’s argument— that the written notice required by MCL 141.121(3) and § 9-6 is a prerequisite to the BPW’s right to require a surety bond—is false. While the statute and ordinance specify a course of action that the city and its BPW must follow if a written notice is filed, neither the statute nor the ordinance specifies that the city or its BPW cannot require of a new nonresidential utility customer—one without a credit history—a cash deposit or surety bond to secure payment of utility charges. While principles of statutory construction require that we give effect to every word of a statute if at all possible so as not to render any part of the statute surplusage or nugatory, GMAC LLC, 286 Mich App at 373, the pertinent principle regarding Sau-Tuk’s argument is that “nothing may be read into a statute that is not within the manifest intent of the Legislature as derived from the act itself,” Omne Fin, Inc v Shacks, Inc, 460 Mich 305, 311; 596 NW2d 591 (1999) (opinion by KELLY, J.). In other words, we “may not speculate regarding legislative intent beyond the words expressed in a statute.” Id. There is simply no provision in either MCL 141.121(3) or § 9-6 of Holland’s code of ordinances that prohibits the BPW from requiring security of a nonresidential utility customer who does not have an established credit history, and we may not speculate and infer one from the language Sau-Tuk cites. Moreover, the trial court correctly ruled that Sau-Tuk cannot establish the elements of equitable estop- pel. “Equitable estoppel arises where a party, by representations, admissions, or silence intentionally or negligently induces another party to believe facts, the other party justifiably relies and acts on that belief, and the other party will be prejudiced if the first party is allowed to deny the existence of those facts.” Van v Zahorik, 460 Mich 320, 335; 597 NW2d 15 (1999) (quotation marks and citation omitted). In Parker v West Bloomfield Twp, 60 Mich App 583, 592; 231 NW2d 424 (1975), this Court ruled that “[a] municipality may be subject to the doctrine of estoppel in certain situations.” A plaintiff seeking to apply the doctrine of estoppel to a municipality “must show a good faith reliance upon the municipality’s conduct, lack of actual knowledge or lack of the means of obtaining actual knowledge of the facts in question, and ... a change in position to the extent that plaintiff would incur a substantial loss were the local government allowed to disaffirm its previous position.” Id. (quotation marks and citation omitted). In this case, Sau-Tuk’s claim of estoppel fails because Sau-Tuk did not produce evidence that it was unaware of the requirements in MCL 141.121(3) and § 9-6 of Holland’s code of ordinances. “[Ejveryone dealing with a municipality and its agents is charged with knowledge of the . .. provisions of lawfully adopted ordinances.” Hughes v Almena Twp, 284 Mich App 50, 78; 771 NW2d 453 (2009). Sau-Tuk suggests that the BPW, by its conduct of requiring MWP to obtain a surety bond, induced Sau-Tuk into believing that the notice provision had been met. As the trial court observed, by filing the notice, Sau-Tuk implicitly acknowledged that it was previously not in compliance with the notice requirement. At best, it is unclear from the record whether its initial failure to file the notice was a product of its own negligence or lack of knowledge or whether it stemmed from any representations or conduct by the BPW. In either scenario, because Sau-Tuk failed to produce evidence demonstrating its ignorance of the requirements or of its reliance on the BPW’s actions, we find that Sau-Tuk has not proven the elements required to invoke equitable estoppel. We affirm. As the prevailing parties, appellees may tax costs pursuant to MCR 7.219. O’Connell, P.J., and Makkey and Murray, JJ., concurred. This section was amended on May 14, 2014, by Ordinance No. 1627. The current version of § 9-6 is substantially similar to that in effect at the time of the events in this case but provides that written notice must “include a true copy of the lease of the affected premises executed by the owner or his/her designated agent and the tenant. .. .” Holland’s ordinances and MCL 141.121(3) state that charges for utility services become a lien on the property provided the services, which “shall be enforced in the same manner as provided for the collection of taxes assessed upon the roll and the enforcement of the lien for the taxes.” Nevertheless, the charges and liens are not “taxes” but are, instead, a means for collecting a contractual liability for services provided to the property. See Brown Bark I, LP v Traverse City Light & Power Dep’t, 736 F Supp 2d 1099, 1106-1114 (WD Mich, 2010) (holding that such liens are not taxes that implicate the Tax Injunction Act of 1937, 28 USC 1341). A property owner is only required to file an affidavit to avoid a lien for water service charges. See MCL 123.165; Holland City Code, § 37-33. To avoid a lien for electric service charges, a property owner must provide “in writing” a notice of a tenant’s responsibility for payment and “a true copy of the lease of the affected premises, if there is one . ...” Holland City Code, § 9-6. As mentioned earlier, the current version of § 9-6 provides that the written notice must “include a true copy of the lease of the affected premises executed by the owner or his/her designated agent and the tenant. . . .” See note 1 of this opinion. “Except as otherwise provided, or limited by state law, the city shall have as security for the collection of all charges, a lien upon the premises to which such utility services were supplied. Such lien shall become effective immediately upon the distribution or supplying of such utility service or services to such premises. .. .” Holland Charter, § 12.18. “Except as otherwise provided or limited by state law, the City shall have as security for the collection of all charges for electric services as authorized by the Revenue Bond Act of 1933, as amended, a lien upon the premises to which such electric services were supplied. Such liens shall become effective immediately upon the distribution or supplying of such electric service or services to such premises.. . .” Holland City Code, § 9-3. “Except as otherwise provided or limited by state law, the City shall have as security for the collection of all charges for water services as authorized by the Collection of Water Charges Act, a lien upon the premises to which such water services were supplied. Such lien shall become effective immediately upon the distribution or supplying of such water service or services to such premises . .. .” Holland City Code, § 37-30.
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Btjtzel, J. In his lifetime Edward Louis Roy became engaged to Marie Clark, plaintiff. She claims that on July 26,1932, she promised to marry Roy on July 8, 1933, in consideration of his giving her his note for $12,000 payable on July 26, 1933, 18 days after the contemplated marriage. Roy died on February 22, 1933. Notwithstanding the fact that plaintiff did not see Roy during his last illness nor attend his funeral, we must accept the record’s showing that she remained true to her promise and the marriage would have taken place had not Roy’s death intervened. The note was for a good consideration as it was given in return for a contemporaneous promise of marriage. The sole question arises whether, while a contract is still executory, a change of circumstances, brought about without fault of either party and not contemplated by either party, making performance of the contract impossible, discharges the parties from further performance. The promissory note, while complete in itself, was nevertheless executory. The doctrine of impossibility of performance has been frequently applied in the law of contracts. In Shear v. Wright, 60 Mich. 159, plaintiff sued for the balance alleged to be due on the price of a bull calf sold to the defendant. Four dollars was to be paid by services for breeding purposes of a certain bull owned by defendant or of a bull calf when grown. Without any fault of defendant, this performance was made impossible by death of the calf and injury to the bull. The sole question was whether the contract was released by the impossibility of performance. The court held: “While a contract may be so framed as to make the contracting party absolutely bound at all events, yet such is not the universal rule. In the present case the services agreed upon could not be rendered under the contract unless one or the other of the two animals could be had for the purpose. Their continued existence entered into the consideration of both parties as an indispensable element of performance. This being so, and there being nothing in the contract to indicate a substituted performance as within the design, the case seems to fall within the rule that under such circumstances the existence of the means of performance is a condition without which, in the absence of fault, there can be no liability. * * * The doctrine is reasonable, and assumes that both parties become interested in the continued existence of the subject of the condition.” In Nicol v. Fitch, 115 Mich. 15, the court in a dictum said that the death of a party under a contract of marriage discharges the contract. Wilson’s Administrator v. Nolen, 200 Ky. 609 (255 S. W. 267, 34 A. L. R. 80) is very similar to the instant case. While the court did state that the note was given in consideration of an agreement to marry then and theretofore made, nevertheless it based its decision upon the discharge of the contract by subsequent impossibility. On the question of consideration and subsequent impossibility, the court said: “As we interpret the (lower) court’s conclusions of law, its judgment was primarily based upon the view that the promise of the plaintiff to marry Wilson was at the time, and yet is, a sufficiently valuable consideration to support the note and uphold the judgment. That a promise of a woman to marry a man is at the time a valuable consideration is not to be denied; but the question raised here goes far deeper than that. Although the promise at the time is a valuable consideration, yet, where the contract between the parties is from its very nature an executory one, and contemplates future performance as the consideration, and before the time comes for that consideration to pass, and before it has passed, unforeseen things happen which are not brought about by either of the parties involved, and it thereby becomes impossible for the contract to be performed by either party, then there has come about a state of things not contemplated by either, and which, relating back to the original transaction, destroys the original consideration, or, as it is sometimes said, brings about a total failure of consideration. “It was not the bare promise of appellee to marry decedent that induced the execution of the note; it was the benefits he expected to realize in the future when that-promise was carried out. The contract on its face was executory in its nature; the benefits to be derived by the obligor in the note as its consideration were all to be performed by appellee in the future, and before the time came for their performance, and by the intervening death of Wilson, not superinduced by any act of his, the carrying out of her promise — the real consideration — was made impossible of performance.” The judgment for defendant rendered by the trial judge is affirmed, with costs to defendant. North, C. J., and Fead, Wiest, Bushnell, St-tarpe and Toy, JJ., concurred. Potter, J., did not sit.
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Toy, J. The appellant, executor of the estate of John Wesley Metcalf, deceased, seeks our writ of mandamus to set aside an order made by the circuit court, denying his petition for delayed appeal from the order of the probate court of Tuscola county, allowing claims of Stanley Turner and Bertha E. Turner against the estate. Bertha E. Turner is the wife of Stanley Turner, and filed her claim against the estate for damages arising from personal injuries sustained by her while a guest passenger in the automobile of the deceased, at a time when a collision occurred between such car and another. It was her contention, as stated in her claim filed in probate court, that the deceased was guilty of gross negligence, and wilful and wanton misconduct in the operation of his automobile, at the time of the accident. She claimed damages in the sum of $15,000. Her claim was allowed by the probate judge on July 5, 1935, in the amount of $12,000. Likewise, the claim of her husband, Stanley N. Turner, for loss of services of his wife was allowed in the amount of $7,000. The executor on July 5th, filed his notice and reasons for appeal to the circuit court for such allowance of claims and on the same date an order was made allowing such appeal. The reasons set forth in the application for appeal were as follows: “1. The administrator charges the fact to be that the allowance of said purported claims was grossly in excess of any liability, if there were any liabilities. “2; That the claimant did not prove that the deceased was operating his car in a wilful, malicious and wanton manner. “3. That the probate judge stated that on account of the fact that there was an insurance company involved that he felt that the insurance company should pay damages on account of the fact that they had accepted insurance premiums from the deceased.” On September 23, 1935, the claimants filed a motion to dismiss the appeal for the following stated reasons: “1. That no appeal bond was filed with said judge of probate as required by 3 Comp. Laws 1929, §§ 15958,15965. “2. That if such appeal bond was not required by virtue of Senate enrolled act No. 25 (Act No. 45, Pub. Acts 1935), enacted by the 5'8th legislature of the State of Michigan at the regular session of 1935, the requirements of said act have not been complied with in the following particulars: “ (a) A copy of the insurance policy has not been deposited with said court. “(b) Tbe insurance carrier has not admitted its liability under an insurance policy, nor bas an instrument been filed with said court by tbe insurance carrier admitting- its liability under an insurance policy, for tbe amounts allowed tbe claimants by said order of said judge of probate, or any part thereof. “(c) Tbe insurance company bas not by any instrument in writing filed with said court, or otherwise, agreed to pay such judgment or allowance against said estate, if any, as shall be affirmed by the appellate court, not exceeding tbe amount of its liability under the insurance policy.” On September 27, 1935, tbe executor filed bis petition in tbe circuit court for a special or delayed appeal, setting forth that be had taken tbe appeal in good faith; that be bad substantially complied with the provisions of Act No. 45, Pub. Acts 1935; that there was no default upon bis part in filing bis appeal; that justice required a revision of tbe allowance of such claims; that be was ready, willing and able to comply with any order of tbe circuit court requiring tbe furnishing of a good and sufficient surety bond on appeal, tbe depositing of a cash bond, or a full compliance with tbe terms of Act No. 45, Pub. Acts 1935; and that there was no evidence whatever offered in tbe probate court to sustain tbe allowance of tbe claims. Several affidavits were filed supporting this motion. Tbe claimants filed their answer denying tbe right of tbe executor to a belated appeal, supporting such answer by affidavits and by a certificate of tbe judge of probate. Both tbe motion to dismiss and tbe petition for delayed appeal were beard at tbe same time, when tbe circuit court took testimony relative to tbe issues raised. On October 4, 1935, the circuit court granted claimants’ motion and dismissed the executor’s appeal. On October 14th following, it denied the executor’s petition for belated appeal. The circuit judge in his opinion denying such appeal, stated: “The granting of a dilatory appeal under the general statute is not a matter of discretion.” The opinion of the court further stated: “Neither as to the facts or as to the law is a showing made that the demands of justice require a revision of the action of the probate court.” We cannot agree with the circuit judge in his determination. The petition for belated appeal was filed in pursuance to 3 Comp. Laws 1929, § 15969, which reads 'as follows: “Sec. 12. If any person aggrieved by any act of the judge of probate, or by the determination of commissioners on claims, shall from any cause, without default on his part, have omitted to claim or prosecute his appeal according to law, the circuit court, if it shall appear that justice requires a revision of the case, may, on the petition of the party aggrieved, and upon such terms as it shall deem reasonable, allow an appeal to be taken and prosecuted with the same effect as if it had been done seasonably.” The act is not mandatory, but by its very terms provides that the circuit court “may,” and “upon such terms as it shall deem reasonable,” allow an appeal. In other words, the granting or disallowing of such an appeal is, by the foregoing quoted statute, left to the sound discretion of the circuit judge. In re McLaughlin’s Estate, 264 Mich. 161 and Taylor v. Bay Circuit Judge, 234 Mich. 363. The circuit judge, however, failed to invoke his discretion, holding that he had no right to do so. We, therefore, are required to look to the record before us to determine whether the petitioner, “without default on his part” omitted to claim or prosecute his appeal according to law and whether it appears “that justice requires a revision of the case.” In re McLaughlin’s Estate, supra. We must first determine, then, whether petitioner is without default in the prosecution of his appeal. The issue raised by the pleadings and the testimony involving this point is, whether there was filed, at the time of taking the appeal from the probate court, in pursuance to Act No. 45, Pub. Acts 1935, a copy of the automobile insurance policy issued to deceased by the Michigan Mutual Liability Company. The proof offered by appellant shows that the insurance company, who has its office in Detroit, engaged Mr. M. D. Orr, an attorney-at-law, with offices at Caro, to represent appellant and to take such appeal, and through its attorneys in Detroit, instructed Mr. Orr to file a copy of such insurance policy in lieu of bond and in pursuance to Act No. 45, Pub. Acts 1935. Petitioner makes a further showing that Mr. Orr filed such copy with the probate court at the time of taking such appeal, having attached it to the other papers filed for that purpose. The affidavits and testimony offered by claimants, however, are to the effect that no such policy was filed, and that even if it had been, it did not comply with the provisions of Act No. 45, Pub. Acts 1935, for the reasons which are hereinbefore set forth in the quoted portion of claimants’ motion to dismiss appeal. No copy of the policy appears in the papers on appeal as certified to the circuit court from the probate court. It is not necessary for determination of this issue to decide whether such policy was filed or not. If it was so filed, then obviously, appellant was without default. If Mr. Orr did not file it, as he was instructed to do so by the insurance company, who by virtue of its policy are defending the estate against the claims of appellees, and who relied upon him as their attorney to have it done, then under our decisions, appellant is “without default on his part,” Jerome v. Wayne Circuit Judge, 117 Mich. 19, and “ought not to lose his right to appeal through the neglect or oversight of his attorney,” where justice requires a revision of the case. Merriman v. Jackson Circuit Judge, 96 Mich. 603. See Frank v. Union Trust Co., 239 Mich. 646. Does justice require a revision of the case? We are convinced that it does. Both claimants based their claims under the “guest passenger” provisions of 1 Comp. Laws 1929, § 4648. Without proof of gross negligence or wilful and wanton misconduct upon the part of the deceased driver of the automobile, their claims, as filed, must fall. The probate judge who heard and allowed the claims, and who is- not an attorney, was called as a witness upon the hearing of appellant’s petition in the circuit court, and on cross-examination, testified: “Q. Was your attention called to the so-called ‘guest passenger act’ in this suit? “A. I think there was something said about that but what was said I can’t say. I haven’t any idea what was said. “ Q. Did you know the provisions of that act? “A. I can’t now positively answer that question. I have read the act but I can’t tell what was in the act. Mr. Atwood drew up the certificate that he filed in this case. There are some corrections in ink in my certificate and I wouldn’t say positively whether that correction was made before or after; I think it was just as it is now. * * “Q. All right. Now just a minute, judge, the correction reads like this ‘gross negligence and the,’ were you passing on the question of gross negligence in this matter? “A. Was I? “Q. Yes. “A. Certainly not. * * * “Q. Do you know the distinction, judge, between the rule with reference to a guest passenger and ordinary negligence? “A. No, I don’t. I can’t honestly say I do.” On re-direct examination, he further testified: “After hearing on claims, Mr. Orr submitted cases on this question and Mr. Atwood did too. I read these cases and discussed the matter with Mr. Orr and Mr. Atwood, and the question of gross negligence and wilful and wanton misconduct was discussed at the hearing, and the law was argued by both attorneys. “Q. You stated a while ago you read this so-called guest passenger statute? “A. I have. “Q. And in reaching your decision whether or not you considered that, what a guest passenger had to prove in order to recover? A. No, I didn’t. I reached my decision — I decided — my decision was made on account of the condition of this woman, the condition she was in, and also the expenses and so forth incurred by her husband. ’ ’ Certainly it is apparent from the foregoing testimony, that appellant did not have a trial and de cisión based upon factual and legal merits of the respective claims. To this, he is entitled. While there are presented other facts, which might also indicate that justice requires a revision of the case, we need not pass thereon, as we think the foregoing is of itself sufficient to require such revision. The petition for delayed appeal should have been allowed. The question of the propriety of calling the probate judge as a witness is not raised and therefore is not passed upon. The writ will be granted. Appellees will, however, recover costs. North, C. J., and Fead, Wiest, Butzel and Bushnell, JJ., concurred. Sharpe and Potter, JJ., did not sit.
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Toy, J. Plaintiff brought suit to recover back wages claimed to be due him from defendant for services performed for it as a brew master. Plaintiff declared upon a contract of hire and upon the common counts. After trial without jury the trial court found for defendant. Plaintiff appeals. The record before us shows that the defendant corporation was incorporated January 5, 1933, and that among its officers for that year were Charles Leiter, president, and Sam Siegel, secretary and treasurer; that plaintiff was hired by said Leiter and one Shore in February of 1933, to work for defendant at a salary of $75 per week; that during that same month plaintiff commenced work at defendant’s brewery at Saginaw; that he worked for defendant approximately one and one-half years thereafter; that he received portions of his pay during that time from defendant, sometimes through Mr. Bolin, a director, sometimes it was paid by Mr. Siegel, the treasurer, sometimes by the auditor of defendant. Balance sheets of the defendant prepared by its auditor and accountant showed, under the accrued pay roll account, the item of plaintiff’s employment, and the amount of wages due him. A comparative statement of the company as of July 25 and July 31, 1934, prepared by its auditor, disclosed that there was due plaintiff the sum of $2,760. Since then he was paid $50 on account, leaving a balance due him of $2,710. Both plaintiff and the witness Heuser (defendant’s auditor during 1933-1934), testified that such amount was due plaintiff. None of the foregoing testimony was denied. It stands undisputed. Furthermore at the trial, although notice to produce its books and papers had been given defendant by plaintiff, none were produced, but instead, the present president of the corporation, a Mr. Hart, testified that he did not have them, nor know where they were. The auditor testified that he had turned the books over to Mr. Siegel, the treasurer. Mr. Siegel was in court at the beginning of the trial, but when the question of the absence of the books of the corporation came up, he was not there. No showing or reason was given for his absence. No showing as to the whereabouts of the books of the corporation was made by defendant. This failure to produce the books or explain their absence, cannot but give rise to an inference that had such books been produced, they would have disclosed facts inimical to defendant’s case. We think the foregoing testimony, undisputed as it is, makes a case for plaintiff. Whitaker v. Kilroy, 70 Mich. 635; Fuchs v. Standard Thermometer Co., 178 Mich. 37. The judgment entered below will be reversed and the cause remanded to the circuit court for entry of judgment for plaintiff in the amount of $2,710 plus interest at 5 per cent, from July 31, 1934. Costs to plaintiff. North, C. J., and Fead, Wiest, Btjtzel, Bushnell and Sharpe, JJ., concurred. Potter, J., did not sit.
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Bittzel, J. On the afternoon of August 23, 1934, a trailer attached to a truck, driven by defendant Soules and belonging to defendant Star Transfer Line, crashed into a car owned and driven by plaintiff. The collision occurred approximately a mile and a quarter northwest from the village of Central Lake, Michigan, at the sharp curve on highway M-88 half-way down a hill about a mile long. Plaintiff had driven his car slowly about half-way up the hill and when he came to the curve and saw the approaching. truck, he drove to the extreme right of the road and evidently brought his car to a stop. The testimony is conflicting as to the rate of speed at which defendant driver was driving, whether he remained on his right side or not and whether it was more slippery at this curve than at other points along the road. It had been raining intermittently during the day, and the road was muddy and slippery owing to a blue clay deposit on the gravel. At the curve the road was dished and banked, the outer or southwesterly edge being about three feet higher than the inner or northeasterly edge, the dish starting about eight feet from the outer or southwesterly edge. Defendants claimed that the road was more slippery and greasy at the curve or dish because of a deposit of blue clay that had been washed down from the hill to this particular point by the rain. One witness stated that the road was so slippery at the curve that he had difficulty in standing on it. Defendant driver testified that he drove the truck down the hill at a reasonable rate of speed, slowed down as he came to the curve, and remained on the proper side, when suddenly the trailer skidded and “jack-knifed,” owing to the unusual and unforeseen slipperiness of the road. Plaintiff’s car was practically destroyed by the impact and plaintiff sustained very severe injuries. Defendant driver had been over the road before, but he claims that he did not know or have reason to anticipate the unusually slippery condition at the curve and that he thus met with an emergency which caused the accident. Defendants presented numerous requests to charge in reference to the law of the case. "While some of them were properly refused, defendants were entitled to have the jury instructed that if a driver is confronted by an emergency or a condition in the highway that was neither known, nor could have been known through the exercise of ordinary care, and that if the trailer thus started to skid across the slippery highway, defendants would not be guilty of negligence merely because the driver failed to adopt what subsequently or upon reflection might appear to have been a better method, provided, however, that the emergency did not arise through the driver’s negligence. Defendants were entitled to an instruction, as requested, that when an automobile unexpectedly skids upon a slippery or greasy road through no fault of the driver, who does not know or- has no reason to anticipate the dangerous condition at the particular place in the road, the latter may be ex cused from failure to comply with, the statutes requiring a driver to keep to the right side of the road. Leonard v. Hey, 269 Mich. 491 (37 N. C. C. A. 111); Paton v. Steady, 272 Mich. 57. A static physical condition may constitute the basis for. application of the emergency doctrine when it arises as it did in this case. Walker v. Rebeuhr, 255 Mich. 204; Clise v. Prunty, 108 W. Va. 635 (152 S. E. 201); Mellor v. Heggaton, 205 Wis. 42 (236 N. W. 558). The court in its charge did present the claims of the defendants that the truck, without fault on the driver’s part, skidded or slewed across the center line of the highway against the automobile of plaintiff and stated that it was for the jury to determine whether defendant driver was driving his truck on the wrong side of the highway and also how and why the accident happened. He further stated that accidents frequently happened on the highways for which no one could be held responsible either legally or morally and that it was the claim of’defendants that the proximate cause of the injury was the condition of the highway, the manner of its construction and the blue clay which had rendered it slippery following the rain. The court thus set forth the claims of defendants, but it was reversible error to fail or refuse to instruct the jury as to the law applicable to the claims made by defendants as brought out by the evidence. Under the circumstances, we must reverse the judgment, with costs to defendants, and remand the case for a new trial. North, C. J., and Fead, Wiest, Bushnell, Sharpe and Toy, JJ., concurred. Potter, J., did not sit. See 1 Comp. Laws 1929, § 4703.—Reporter.
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North, J. In this suit plaintiff seeks damages from defendant because of an alleged- “unlawful and unauthorized sale” of plaintiff’s interest in certain bonds. Trial by jury resulted in a disagreement, but thereafter the trial judge considered defendant’s motion theretofore made for a judgment in its favor. The motion was granted and from the judgment entered plaintiff has appealed. Prior to the bank holiday of February, 1933, two State banks were in business in Paw Paw, Michigan. One was the Paw Paw Savings Bank, the other the John W. Free State Bank. We will designate them as the savings bank and the state bank, respectively. Both banks closed, went into conservatorships, were reorganized and reopened. Plaintiff corporation was organized to take over and liquidate the slow assets of the savings bank, it being contemplated that this work would be carried on by the officers and employees of the reorganized savings bank. But soon after the savings bank reopened it was taken over by the state bank, which assumed the liabilities of the savings bank and succeeded to its assets. In the assets so taken over there was the savings bank’s interest in 17 bonds totaling in par value $16,500. In the reorganization of the savings bank each of these bonds had been included in its assets at a fixed amount, which was first to be realized by the banl!:, but any additional amount derived from the sale of the respective bonds belonged to the plaintiff corporation as a liquidating agency. Three men constituted the stockholders and officers of plaintiff organization. Dr. YanYleck was the president, Mr. Maguire vice-president and Mr. Hood secretary. Mr. Free was the president and active manager of the state bank. ' These four men held a meeting on November 24, 1934, at which there was discussion of tlio ways and means of carrying on the business of plaintiff liquidating corporation, which had engaged a Mr. and Mrs. Bolinger to take charge actively on or about December 1,1934. At this meeting the following action was taken by plaintiff’s officers : “Special meeting of Paw Paw Depositors Corporation was held on Nov. 24, 1934, at 7 :30 p. m. in the John W. Free State Bank. “Motion was made by Delbert Maguire that the John W. Free State Bank be authorized to liquidate at such time and at such price as would be to the best interests of the Depositors Corporation. Seconded. Carried unanimously. “Max Hood, Sec’y.” The foregoing action seems to have been taken because the contract under which the plaintiff took over some of the assets of the savings bank provided that the saving's bank could not dispose of bonds or other securities so taken over except with the consent of the plaintiff liquidating corporation. The state bank as successor to the savings bank had no greater rights. About a month following the meeting of November 24th, Mr. Free arranged with a Chicago trust company for the sale of certain bonds. By January 10, 1935, all of the 17 bonds involved in this litigation were sold. Detailed reports of the respective sales as consummated were made by defendant to plaintiff on the following dates: December 30th, January 4th, 10th and 12th. Remittances to plaintiff accompanying such reports totaled $2,577.04. In reviewing the court’s entry of judgment for defendant, the testimony in this record must be considered in the aspect most favorable to plaintiff. The question for review is this: Does the record present an issue of fact for a jury? It is plaintiff’s claim “there exists in the case a question of fact as to what authority was given by the directors * * * on November 24,1934.” We quote from appellant’s brief: “The question of authorization must depend solely on the proceedings of the meeting of November 24th, at which time the resolution, Exhibit D, was adopted by the corporation. It is admitted and claimed by both sides, that this resolution is ambiguous, and that oral testimony is permitted and required to inform the court and jury as to what was really done and was really meant thereby. ’ ’ The record also discloses the following stipulation between counsel: “It is agreed by counsel in connection with the settlement of this record that plaintiff does not claim fraud in connection with defendant’s decision to sell the bonds in question or in defendant’s action in making sales at the times they were made, not intending, however, to waive plaintiff’s claim that such sales were made without authority therefor.” Just preceding the taking of testimony plaintiff’s counsel defined his position by making the following statement: “I take two positions on that: One is, that the resolution (of November 24, 1934) of itself does not give authority to sell bonds, and if that is not the ruling of the court it gives no authority to make any such sale as was made here, and the sale, if made, must be made for the benefit of the corporation, and the burden of proof is on the defendant to show it' was. ’ ’ It is plaintiff ’s contention that Mr. Free at the meeting of November 24th misrepresented to plain tiff’s directors that he had the power to dispose of the bonds regardless of their wishes, and that he called their attention to two or three bonds which were in default and stated “some of these bonds need attention.” Plaintiff takes the position that because of such statements by Mr. Free, plaintiff’s directors in passing the resolution of November 24th. did so believing that he already had the authority to dispose of the bonds without their consent and that the resolution pertained only to bonds needing attention, meaning thereby bonds in default. For sometime prior to November, 1934, the defendant bank had possession of the bonds covered by the liquidation contract. Three of these bonds of the total par value of $2,500 were in default and one other bond of the par value of $1,000 was not of a market value equal to defendant’s interest in this particular security. The 17 bonds, as to the sale of which plaintiff complains, were not in default. Plaintiff asserts there is some evidence in the record of lack of authority in defendant to sell these bonds because plaintiff’s directors understood from Mr. Free that he proposed to dispose of tie poor securities, not those which were not in default. In pther words, plaintiff claims there was some testimony from which a jury might find that defendant did not have authority to sell the 17 bonds,, and that such sale resulted in a financial loss to plaintiff and, therefore, the trial court was in error in entering judgment for defendant. Appellant also asserts that there is a question of fact as to whether or not the sale was at such a price and time as would be to the best interest of the Depositors Corporation. We have reviewed the record carefully and fail to find testimony tending to sustain plaintiff’s position. While, as counsel seems to concede, there may be some ambiguity, tlie action taken November 24,1934,. by plaintiff’s three directors, is recorded in terms that are reasonably definite and understandable. The motion was drafted by the secretary of plaintiff corporation “after considerable discussion.” It was carried unanimously. The record of this action of plaintiff’s directors was read and approved at the annual meeting of its directors held January 7,1935. On this date the directors were already aware that 12 of the 17 bonds had been sold and that plaintiff corporation had in its possession its shares of the moneys received for such sales. Plaintiff corporation did not attempt to rescind its action of November 24th until January 12, 1935. Before this date bonds had not only been sold, as above noted, but plaintiff corporation had from time to time been given detailed reports of such sales from which it received a total of $2,375.59. Plaintiff retained this money, although sometime later it offered to repay the amount received if defendant would return the bonds to the plaintiff. No complaint is made that any of these bonds were sold for less than the market value but instead that the market price was improving and that within a reasonable time the increase in market value of at least 12 of the 17 bonds sold was such that plaintiff has sustained a substantial loss because of the earlier sales. Plaintiff, through its directors, was bound to' knoAV that neither Mr. Free nor the state bank had power to sell the bonds in question without plaintiff’s consent or, in lieu thereof, the approval of the State banking commissioner. The contract governing this phase of the case is too plain to be misunderstood. It provides: “No bond or other similar securities shall be sold or otherwise disposed of by the bank without the consent of the corporation, provided that in the event that the corporation does not consent to the proposed sale or other disposition of any of such securities, the bank may call upon the commissioner of the banking department of the State of Michigan to finally decide the matter, and his decision shall be final and binding upon the parties hereto. ’ ’ The knowledge or lack of knowledge possessed by plaintiff’s directors at the time of the meeting of November 24th is fairly well indicated by the following testimony of Mr. Maguire: “Q. Now you knew at that time (November 24th) that if you objected to the sale of any bonds or (as) just stated here that in event that you didn’t consent, that the matter might be referred to the banking department at Lansing? * * * “A. Well, we knew it, but we didn’t any of us think about it.” While Mr. Free denied having stated to plaintiff’s directors that he had the authority to sell the bonds without plaintiff’s consent, for decision herein we must accept the contrary testimony offered in behalf of plaintiff. But even then the record would not present a question of fact for a jury because of a lack of testimony that in the absence of such misstatement plaintiff’s directors would not have taken the action they did at the meeting of November 24th. Both touching this phase of appellant’s contention, as well as the further contention that the resolution of November 24th at most only gave defendant bank authority to dispose of bonds needing attention, i. e., the bonds in default, the record entirely refutes plaintiff’s claim. We quote from testimony given by plaintiff’s witness on cross-examination which reveals the circumstances in consequence of which plaintiff’s directors took their action of November 24th. We quote in part from the testimony of Dr. VanVleck, president of plaintiff corporation: “Then the bonds came up (at the meeting of November 24th), and Mr. Free said that we had a class of bonds that needed looking after, and that some of them — I think 2 out of 21 or 22 bonds — were in default. And he said that inasmuch as we were not in a position where from day to day we could keep checked up on those bonds, he would like to keep checked up on them, and help us any way he could on them. * * * Mr. Free suggested he thought that the list of bonds ought to have some attention, and by passing the resolution I agreed with him that they ought to have some attention. Mr. Free also said that he kept rather close tally and contact with the market on bonds of that nature, and of these particular bonds; and we suggested to him that we were not any of us in position to do that; he suggested the question whether we were willing to rely upon his guidance and judgment, and I concurred in that suggestion. He said: ‘All you will have to do is to rely on my guidance and honesty in connection with it.’ And I said: ‘That is all right, we haven’t any question about that.’ * * At this meeting of November 24th I believe Mr. Free discussed the activities of congress then apparent with reference to utility holding companies,- and the apparent effect of that activity-upon utility bonds. I know that about this time congress was active against utility holding companies.” The only fair and reasonable conclusion that can possibly be drawn from this record is that by their action of November 24th plaintiff’s directors authorized Mr. Free, acting for the defendant bank, to liquidate the bonds in question. As to the bonds now in suit, this had been accomplished with the knowledge of plaintiff’s directors weeks before the directors took action canceling the authority previously given the defendant bank to liquidate the bonds. The authority granted was not confined in any way to bonds in default or those not producing an income. One of the grounds assigned in support of defendant’s motion for a directed verdict is: “That under the undisputed testimony the sale of the bonds was authorized by proper action of the corporation, and the corporation cannot now deny that authorization and claim any damages by reason of activity which was resultant to that authorization. ’ ’ We think this reason was a sufficient ground for the action of the trial judge in granting defendant’s motion. Careful consideration of this record, especially in view of the stipulation of counsel hereinbefore quoted, forces the conclusion that appellant’s contention that there is here presented a question of fact as to whether the bonds were disposed of at such time and at such price as would be to the best interests of the Depositors Corporation, cannot he sustained. Entirely apart from the stipulation of lack of fraud in connection with the sale of the bonds, there is no testimony which in any way tends to indicate b lack of good faith on the part of Mr. Free in disposing of these securities. Judgment entered in the circuit court is affirmed. Costs to appellee. Eead, C. J., and Wiest, Butzel, Bushnell and Sharpe, JJ., concurred. Toy, J., took no part in this decision. Potter, J., did not sit.
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Wiest, J. In December, 1934, defendant Sears, Boebuck & Company maintained an automobile battery service station, with entrance on an alley in the city of Jackson, with defendant Melvin Warner the service employee. Defendant Stephen B. Phillips, who was one partner of the defendant Jackson Window Cleaning Company, drove the partnership truck to and into the station to have the battery tested and serviced. The station employee removed the battery, found it could not be recharged and replaced it in the car. Thereupon Mr. Phillips went to the driver’s side of the cab, reached in, turned on the ignition switch, took out the crank and, without looking at the transmission lever to see that it was in neutral, went to the front of the car, cranked the motor, and the car ran backward, out, into and across the alley and injured plaintiff, a pedestrian in the alley. Plaintiff brought suit against all the defendants to recover damages and the jury found Mr. Phillips not guilty of negligence and awarded damages against Sears, Boebuck & Company and Mr. Warner. Under the above statement there could be no such recovery. Mr. Phillips, however, testified that after Mr. Warner had replaced the battery he asked him “Is it O. KJ” and Mr. Warner replied “Yes, it is O. K. Go ahead.” This was denied by Mr. Warner, but the jury found it to be a fact. On the theory that the service station employee, in taking out and replacing the battery must have shifted the gears from neutral, and that the mentioned statement excused Mr. Phillips from his otherwise duty to make inspection as to the state of the gears, the jury found the proximate cause of the accident was so attributable to Sears, Boebuck &f Company and Mr. Warner, their employee. In the instructions to the jury the liability of Mr. Phillips and the copartnership was made to turn upon the mentioned testimony. The court saying: “I instruct you members of the jury if you find that what Mr. Phillips did under the circumstances was in reliance upon Warner’s assurance that it was all right and that he could go ahead, and if you find that in so acting he was acting as a reasonably prudent person would act under the same or similar circumstances, then I charge you that Phillips and the Jackson Window Cleaning Company have been guilty of no negligence in assuming that it was in the same condition as Phillips had left it, that is, in neutral gear with the emergency brake set, and you should not return a verdict against them, but should confine the issue solely as between Sears, Roebuck & Company and Warner and the plaintiff.” There was no defect of any character occasioned by Mr. Warner and no inherent danger beyond that of carelessness on the part of Mr. Phillips in not taking ordinary precautions in cranking the motor. The statement, claimed to have been made by Mr. Warner, was not an assurance relieving Mr. Phillips from exercising ordinary care. The assurance did not go beyond that of proper re-installation of the battery, and cannot be enlarged' to excuse the palpable want of care on the part of Mr. Phillips. ' Mr. Phillips, in starting the car by use of the crank, must have been fully aware that he was in a position where he would have no control over the movement of the automobile. Phillips admits that he did nothing to determine whether the taking out and re-installation of the battery had interfered with the car being in neutral gear. The accident was occasioned by the negligence of Phillips. There was no negligence on the part of Sears, Roebuck & Company or Mr. Warner, and the court should have so instructed the jury. The judgment against Sears, Roebuck & Company and Mr. Warner is reversed without a new trial, and with costs. North, C. J., and Fead, Butzel, Bushnell and Toy, JJ., concurred. Sharpe and Potter, JJ., did not sit.
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North, C. J. In this mortgage foreclosure case, after default of defendant for nonappearance and after decree and foreclosure sale, the trial judge heard and denied a motion to set aside the decree and the default of the defendant mortgagor. After the denial of this motion a delayed appeal brings the case to this court for review. At the time service of process was made on the defendant mortgagor she had been adjudicated an incompetent and was an inmate of a State institution. The motion to vacate the decree and order of default was made by defendant’s guardian. On a former appeal involving the same subject matter of litigation it was held in the majority opinion that the decree entered following such service and without the appointment of a guardian ad litem was not void, but only voidable. See Cohen v. Home Life Ins. Co., 273 Mich. 469. The controlling question on this appeal is embodied in one of appellant’s reasons assigned in support of the appeal, which reason in substance states that the trial court erred in denying defendant’s motion to set aside the default, the decree and the sale based thereon, and in denying appointment of a guardian ad litem for the defendant, and also in denying a rehearing. If the irregularity, as here, arises from failure to comply with rules of procedure, a court has the power to vacate its voidable decree. Curtis v. Curtis, 250 Mich. 105. Whether it will vacate such a decree depends upon the equities of the particular case; and in a case wherein a guardian ad litem should have been appointed, the refusal by tbe trial court to vacate a decree entered without such appointment will not be reversed in the absence of an abuse of discretion. “It was the duty of plaintiff to have informed the court of the fact (infancy of defendant) and to not proceed without the appointment of a guardian ad litem. Failure to do so, however, did not oust the court of jurisdiction, for the statute mentioned (3 Comp. Laws 1929, § 14038) is procedural only, but did render the decree voidable if questioned in a direct proceeding such as this (a petition to vacate the decree). When a decree is voidable for error in procedure, it is a matter of judicial discretion whether it shall be vacated.’’ Curtis v. Curtis, supra. “This court will not review the action of circuit courts in determining applications to set aside defaults and orders pro confesso, unless there has been a clear abuse of discretion.” Mills v. McLeod, 94 Mich. 627. See, also, Voorhies v. Frisbie, 25 Mich. 476 (12 Am. Rep. 291). The decisive question on this appeal is this: In view of the equities disclosed by the record did the circuit judge abuse his discretion in denying defendant’s motion to vacate the foreclosure sale and in refusing to set aside the decree and defendant’s default for nonappearance? As noted above this is a foreclosure suit. It was instituted July 5, 1933. The original file before us discloses that during the following months repeated efforts to secure service of process on Mrs. Cohen were unavailing. Finally a pluries summons was personally served February 27, 1934. Hearing, decree, sale and confirmation of sale followed. Confirmation was on July 16, 1934. The motion to va cate the sale and to set aside the decree and defendant’s default, made August 28, 1934, was denied October 9, 1934. Thereafter defendant sought to avoid the foreclosure decree by collateral attack. In this she failed. Cohen v. Home Life Ins. Co., supra. Evidently the mortgagor or those representing her continued in possession of the mortgaged property because plaintiff applied for a writ of assistance January 9, 1935. Notwithstanding this effort to obtain possession, it appears from appellee’s brief, and without denial, that the purchaser at the mortgage sale is still deprived of the possession and income of the property. The undenied allegation of the bill is that the taxes for the years 1931 and 1932 'were not paid; and at the time of taking the testimony the mortgagee had paid taxes in the amount of $896.66. On August 3, 1931, the unpaid principal of the mortgage debt was $8,125; but at the time the case was heard (May 4, 1934) the amount due for principal, interest and taxes totaled $10,090.20. Notwithstanding defendant has been before both the trial court and this court in her subsequent efforts to have the foreclosure decree set aside, at no time has a showing been made that anything has been paid or tendered on principal, interest or taxes since the decree was entered in May of 1934. Nor has there at any time been a showing in behalf of the defendant that she possesses or claims to possess any meritorious defense, or that there is any prospect of redeeming the mortgaged property. In other words the equities disclosed by the record are all in favor of plaintiff. In seeking relief defendant relies wholly on the procedural irregularity arising from her default having been entered without the appointment of a guardian ad litem. On such a record it must be held that there is no showing of an abuse of discretion on the part of the trial jndge in denying defendant’s motion to vacate the foreclosure sale and to set aside the decree and defendant’s default. It follows that the ruling of the trial court should he affirmed and defendant’s appeal dismissed, with costs to appellee. Fead, Wiest, Butzel, Bushnell, Sharpe and Toy, JJ., concurred. Potter, J., did not sit.
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Bushnell, J. Plaintiff Carl Strandt, the son of defendants William and Mary Strandt, joined with his wife Mildred in a bill for specific performance of a written agreement entered into by the parties hereto on November 9, 1933, and for an accounting. The parents had lived for some years on an 80-acre farm in "Watson township, Allegan connty, which, at the date of the agreement,' was incumbered by a mortgage of $1,500, then in default as to principal, interest and taxes. The son and daughter-in-law, with their five children, at the time were living in Kalamazoo where Carl was barely making ends meet. The parents quitclaimed their interest in the 80 acres to the younger couple who secured a new mortgage from the Federal Land Bank in the sum of $2,000, the proceeds of which, with the exception of about $200, were used to satisfy the defaulted mortgage, pay accrued taxes and provide new insurance, etc. The younger family moved to the farm and shared the same dwelling house with the parents. Unfortunately the home was not large enough to house the two families in peace and happiness. The details of the ensuing domestic difficulties are immaterial. Defendants do not dispute the fact that Carl put up some fences, did some badly needed roofing, bought two cows and a manure spreader and generally helped put the farm back into running condition. Some of the new mortgage money was used for these necessary repairs and to purchase seed. Disputes also'arose between the father and son over the operation of the farm and the use of personal property. The written agreement which accompanied the quitclaim deed provided, in part: “The sole consideration for this deed is that, first parties having agreed to remove from said premises, second parties, will, when first parties become unable, in their own judgment, to care for themselves and to support themselves properly, care for first parties in the home on the premises above conveyed, so long as first parties,, or either of them, shall survive, in a proper and suitable manner, furnishing them with good food, with sufficient and necessary clothing, with a reasonable amount of spending money, with care and medical treatment in sickness and provide a proper burial. * * * “In the event that the parties hereto, or any of them, contend that this agreement is not being complied with, then the differences between the parties may be adjusted by the circuit court for the county of Allegan, in chancery, such court to make such reasonable and equitable decree as may, at the time, be just. * * * “It shall be considered that the agreement has been complied with, if no proceedings have been take-n by first parties (William and Mary Strandt) to set the same aside or to obtain the adjustment of any controversy which may have existed between the parties hereto prior to the death of the survivor.” The averments of plaintiffs ’ bill of complaint were denied generally and specifically; defendants sought affirmative relief by cross-bill in which they stated: “That these defendants desiring to advance'the interests of their son and his family and believing the representations of said plaintiffs were over-persuaded by their fluent arguments and agreed to give a quitclaim deed as they desired. * * * “That due to the fiduciary relationship existing between the parties these defendants were induced to enter into an arrangement prejudicial to their interests and from which they never will receive any benefit. “That plaintiffs have had the income from said farm and use of the personal property belonging to these defendants for a period of two years and upwards and have derived great benefit therefrom. ’ ’ Defendants’ cross-bill asked for cancellation of the quitclaim deed and for an accounting. This appeal is from a decree in favor of defendants. The agreement, by its language, purports to confer jurisdiction upon the “circuit court for the county of Allegan, in chancery.” “Jurisdiction of the subject-matter is governed by law and cannot be conferred by consent.” Halkes v. Douglas & Lomason Co., 267 Mich. 600. How have defendants breached their written ag*reement? Was it by their refusal to leave the farm? The agreement was dated November 3, 1933 and recites defendants’ promise to leave the premises as its sole consideration. Performance was waived by the acts of the parties for nt least two years and until plaintiffs filed their bill on October 25, 1935. Carl testified in April, 1936: “My parents have continued to live on the premises since 1933. We each occupy separate parts of the house. That has been the arrangement since I took possession the 1st of February, 1934. * * * I told them last fall that I wouldn’t stay there under these circumstances and asked them why they didn’t move as they agreed to.” Had defendants moved, there is nothing in the contract to prevent their return if “in their own judgment” they became unable “to care for themselves and to support themselves properly.” Testimony was given by defendants tending* to show their inability “to care for themselves and to support themselves properly.” Defendants’ claim of Carl’s breach of his obligation to “care for first parties in the home * * in a proper and suitable manner,” etc., is not supported by tbe testimony. Defendants’ cross-bill does not specifically allege fraud in the inception of tbe agreement and tbe trial court did not make a finding of fraud. Tbe opinion says: “It is apparent from tbe claims and tbe testimony tbat tbe situation created by tbe agreement is impossible for both families. It would be unjust to subject tbe defendants to tbe situation; it would be unjust to plaintiffs to subject Carl’s wife and children to tbe unbearable conditions now existing, and in pursuance of tbe agreement of tbe parties that if they couldn’t get along tbe ‘Court is to make such reasonable and equitable decree, as may, at tbe time, be just.’ ” We quote from tbe cross-examination of Carl Strandt: ‘ ‘ Q. Tour parents have always treated you pretty nice, haven’t they? “A. I never bad much complaint up until we moved down there. “Q. Tbe trouble is now tbat two families can’t get along in tbat bouse? “A. That is tbe foundation of it. ” Plaintiffs seek specific performance; defendants desire cancellation of their deed and both parties ask for an accounting. Specific performance is a matter of grace and not of right (Denby v. Dorman, 261 Mich. 500), and cancellation is not strictly a matter of right, but rather a remedy, tbe granting of which rests in tbe sound discretion of tbe court. Capital Savings & Loan Co. v. Standard Savings & Loan Ass’n, 264 Mich. 550. A bill for an accounting does not present a case for equitable relief unless the proofs show an agreement sufficiently clear and distinct to support it. Eccard v. Brush, 48 Mich. 3. Each of these remedies requires satisfactory proofs in support of the averments of the parties and of the decision of the trial court. Our duty is to examine the evidence de novo and ascertain if either of the parties has maintained its claims. The only positive conclusions that can be reached are that the parties are unable to carry out harmoniously their respective obligations and the relief sought by each is but a matter of expediency made desirable by the unhappiness of the situation. Mrs. Mary Strandt’s unsupported testimony does not justify cancellation of a deed that was voluntarily executed; plaintiffs’ proofs do not permit a decree for specific performance of defendants’ promise to move from the farm and without either, an accounting is unnecessary. The record before us does not contain testimony in behalf of either party sufficient to support a decree giving equitable relief. Liesemer v. Burg, 102 Mich. 20, and McClellan v. Moore, 272 Mich. 630. The decree of the trial court is vacated and one may be entered here dismissing both the bill and cross-bill. Neither party having prevailed and neither having cited any authorities in support of their arguments, no costs will be allowed. North, C. J., and Fead, ‘W'iest, Butzel, Sharpe and Toy, JJ., concurred. Potter, J., did not sit.
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Wiest, J. The department of labor and industry found that Peter Pucilowski, an employee of defendant, met with a fall, arising out of and in the course of his employment, resulting in a fractured skull and consequent death, and awarded compensation to his dependents, reversing a contrary holding by a deputy commissioner. Defendant denied liability and claimed that the fall was by reason of an epileptic seizure. It was the lunch hour of the employee and he was walking on the premises of defendant on the way to get his lunch, which was brought by his wife and handed by her to another employee to take to him. Just as he was about to receive the lunch he threw his head upward and fell backward, striking his head upon the cement floor and received a fractured skull. He did not slip, nor did anything strike him. Another employee, who saw him fall and immediately went to'him, testified that his eyes rolled, his face got kind of white, froth and blood came ont of his mouth, his lips seemed to get blue, his limbs twitched and then straightened out, his fists doubled up and his legs had to be bent before he could be seated in a chair and later, when being taken to the hospital, he grabbed hold of the door of the car, apparently to keep from getting in. He was taken to the hospital and died about 12 hours later, and a post mortem resulted in a finding that death resulted from traumatic cerebral hemorrhage, following a fractured skull. Of course, this would be the case, but if the fall was not occasioned by an accident or fortuitous event the result thereof was not compensable. The appearance and actions of the injured man immediately after the fall did not indicate the cause of the fall, for they might indicate either an epileptic seizure or a fractured skull according to the medical witnesses. The chief surgeon of defendant company had the injured man under his personal observation for an hour or an hour and a half immediately following his fall and then diagnosed the case as epilepsy.. In answer to a hypothetical question, a medical expert, who was also the coroner, testified: “The cause of death in this particular case was the fracture of the skull. The symptoms which this man presented could be interpreted as a shock, as an irritation due to the fracture. Irritation due to the filling of blood over the meninges of the brain will frequently give convulsions, frothing* at the mouth, blue lips, and so forth, cyanosis.” The cause of death was undoubtedly a fractured skull, but was the proximate cause of the fall an ac oident or an epileptic seizure? The employee fell and fractured his skull. What caused him to fall? He did not slip. He threw his head upward and fell backward. His subsequent unconscious manifestations were such as accompany an epileptic seizure and also a skull fracture, thus leaving the symptomatic effect wholly conjectural as to cause. In such case there can be no weighing of probabilities or a drawing of reasonable inferences as to the proximate cause. As said in Ginsberg v. Burroughs Adding Machine Co., 204 Mich. 130, 137: “The burden of establishing a claim for compensation rests on those seeking the award. * * * If an inference favorable to the applicant can only be arrived at by conjecture or speculation the applicant may not recover." So if there are two or more inferences equally consistent with the facts, arising out of the established facts, the applicant must fail.” See, also, Swedberg v. Standard Oil Co., 271 Mich. 184. We find no evidence of causal connection between the employment and the cause of death. Plaintiff produced no testimony as to what caused the fall. The department found that the fall was from some unknown cause. There was no evidence warranting an affirmative and essential finding that an accident or fortuitous event occurred. The award was without supporting evidence and is vacated, with costs to defendant. North, C. J., and Fead, Butzel, Bushnell, Sharpe and Toy, JJ., concurred. Potter, J., did not sit.
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Boyles, J. The petition of William G. Jeffries prays that a writ of mandamus be issued to compel the county clerk of Wayne county to receive and file certain nominating petitions or accept filing fees in lieu thereof and to compel the election commission of Wayne county to place plaintiff’s name on the primary election ballet for the office of State representative. Previous to 1934 plaintiff used his original name, William Giuffre; he started to use the name of William G. Jeffries during 1930; on August 22, 1934, he obtained an order from the probate court of Wayne county legally changing his name to William G. Jeffries. July 20, 1940, plaintiff tendered the sum of $100 to the county clerk of Wayne county, together with an affidavit as to change of name and identity. The county clerk refused to accept the tender and affidavit for the reason that the plaintiff failed to disclose his former name for the purpose of putting both the present name and the former name on the primary election ballot. Act No. 351, part 3, chap. 3, § 21, Pub. Acts 1925, as added by Act No. 176, Pub. Acts 1935 (Comp. Laws Supp. 1940, § 2883-2, Stat. Ann. § 6.140), requires that no nominating petition shall be received for filing unless the candidate also files an affidavit relative to any change made in the name of such candidate. This act further provides: “In the event that such affidavit or any birth certificate or record of such person discloses that the name of such candidate as used in such nomination petition is other than the one with which he was named at birth, such nomination petitions shall not be received for filing unless such petitions state, in such form as the secretary of State shall prescribe, both names of such candidate.” In the above act, there is a proviso as follows: “Provided, however, That this section shall not apply to persons who have changed their names prior to January one, nineteen hundred thirty-three.” Plaintiff claims this act is unconstitutional, null and void as being in violation of the Constitution of the United States, Ams. 5 and 14, in that, as plaintiff claims, it deprives him of life, liberty and property without due process of law; that he is denied the equal protection of the laws; and that said act is clearly discriminatory and constitutes class legislation. As to the first claim, obviously this legislation does not deprive the plaintiff of life or liberty; therefore, this claim simmers down to the question whether the act deprives plaintiff of any property rights without due process of law. The question of property right in public office has been definitely settled in this State. “A public office cannot be called ‘property,’ within the meaning of these constitutional provisions. If it could be, it would follow that every public officer, no matter how insignificant the office, would have a vested right to hold his office until the expiration of the term. Public offices are created for the purposes of government. They are delegations of portions of the sovereign power for the welfare of the public. They are not the subjects of contract, but they are agencies for the State, revocable at pleasure by the authority creating them, unless such authority be limited by the power which conferred it.” Attorney General, ex rel. Rich, v. Jochim, 99 Mich. 358, 367 (23 L. R. A. 699, 41 Am. St. Rep. 606). The only remaining question is whether Act No. 176, Pnb. Acts 1935, constitutes class legislation to the extent that it must he declared unconstitutional. Most of the decisions which attempt to draw the line on this question are readily distinguishable from the instant case by reason of the fact that this case involves an election law statute. “Laws shall be passed to preserve the purity of elections and guard against abuses of the elective franchise.” Constitution of 1908, art. 3, §8. Presumably, the legislature intended by Act No. 176, Pub. Acts 1935, that the electorate should be fairly apprized of the identity of those whose names appeared upon the ballot. We may assume that an individual who has lived in a community over a considerable period of time becomes well known to the electorate under the name which he uses. If and when he changes his name, unless his newly adopted name is in some way connected in the public mind with his former name, some period of time must elapse before the electorate connects the individual with his new name. In Act No. 176, Pub. Acts 1935, the legislature provided it should not apply to persons who had changed their names prior to January 1, 1933. Accordingly, on the effective date of the act, if an individual had changed his name within a period of approximately two years and ten months prior to becoming a candidate, he was required to submit to having his former name, also appear on the ballot. “Class legislation is unconstitutional only when shown to be unreasonable, arbitrary and capricious. * * m “Unless upon its face convincingly arbitrary, capricious, and unreasonable, it is not for the courts to debate the policy and wisdom of such legislative treatment. ’ ’ Lundstrom v. Township of Ellsworth, 196 Mich. 502, 508, 509. This act is not unreasonable, arbitrary and capricious. It operates to preserve the purity of elections and guard against abuses of the elective franchise. We have given due consideration to the cases relied upon by the plaintiff (Dapper v. Smith, 138 Mich. 104; Harrington v. Secretary of State, 211 Mich. 395), but, in our opinion, they are not applicable to the statute here involved. Writ denied. Bushnell, C. J., and Sharpe, Chandler, North, McAllister, Wiest, and Butzel, JJ., concurred.
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Bushnell, C. J. Defendants were arrested by police officers of the city of Detroit at about 4:30 a.m. on October 22, 1939. At that time, defendant Ruggerello was in a parked car and defendant Moceri was just getting into the car. The attention of the officers was attracted by the fact that the rear license plate of the automobile was covered with a rag and defendants appeared to be intoxicated. They were both arrested. The automobile was searched and a hammer and tire tool were found on the floor of the car in front of the front seat. Defendants were taken to a police station, where further search revealed a pistol on the floor of the car. Moceri told the officers that the gun was his, but when he took the stand in his own behalf he denied that he had ever seen the gun until it was found in the police station. Ruggerello testified that he had found the gun during the course of the evening, but did not remember just where or when, that he laid the gun on the floor of the car, and that Moceri knew nothing about it. Defendants were tried together by the court, sitting without a jury, on an information which charged that they — “did carry a revolver pistol in a motor vehicle operated and occupied by them, neither of them then and there having a license to so carry said pistol and neither of them being then and there in their dwelling house, place of business or other land possessed by them, contrary to the form of the statute. ’ ’ Both were found guilty and each received a sentence of from five months to five years. Defendant Moceri alone appeals. The statute under which the charge was laid is the penal code, Act No. 328, § 227, Pub. Acts 1931 (Comp. Laws Supp. 1940, § 17115-227, Stat. Ann. § 28.424), which reads as follows: “Any person who shall, carry a dagger, dirk, stiletto or other dangerous weapon except hunting knives adapted and carried as such, concealed on or about his person, or whether concealed or otherwise in any vehicle operated or occupied by him, except in his dwelling- house or place of business or on other land possessed by him; and any person who shall carry a pistol concealed on or about his person, or, whether concealed or otherwise, in any vehicle operated or occupied by him, except in his dwelling house or place of business or on other land possessed by- him, without a license to so carry said pistol as provided by law, shall be guilty of a felony, punishable by imprisonment in the State prison for not more than five years, or by fine of not more than two thousand five hundred dollars. ’ ’ Appellant claims that his conviction is against the great weight of the evidence. The testimony has been examined and the conviction is not against the great weight of the evidence. Appellant also contends that there is a variance between the charge, the information, and the language of the statute, and that he was convicted of a crime with which he was not charged. The statute makes it a crime to carry a pistol without a license in a vehicle operated or occupied by the person charged. The information was laid in accordance with the language of the statute, and the finding of the court was : “I find both defendants guilty of the offense charged;' refer them to the clinic and probation department, sentence a week from today. ’ ’ It was stipulated that the pistol introduced in evidence upon the trial need not be produced on appeal. It was described in the record as follows : “An eight shot auto loading pistol, 32 cal. No. 4894, with side ejection. Manufacture discontinued 25 to 30 years ago by manufacturers, Davis Wormer Arms Corporation, Assónet, Massachusetts. Obsolete model with magazine missing. Magazine replacement commercially unreplaceable. Part of exhibit 1 is a bullet of type used for revolvers, not automatic, described as a Winchester 32 S. F. & W. 88 grain smokeless powder with lead pellet. Rim scarred or scratched by extraction of pistol (not filed).” Appellant’s brief suggests that the pistol could not be called a weapon. Because of this argument, we have ordered the pistol produced. It has been examined and found capable of being fired and, according to the testimony, the pistol contained a bullet at the time of the arrest. The conviction is affirmed. Sharpe, Chandler, North, McAllister, Wiest, and Butzel, JJ., concurred. The late Justice Potter took no part in this decision.
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Bushnell, J. Plaintiff, EL El. Walton, of Louisa county, Virginia, sold lumber to defendant, Herman E. Elymans, of Detroit, doing business as Commercial Lumber Products, resulting in an indebtedness to plaintiff in the sum of $24,195.48, largely evidenced by promissory notes. On December 26, 1937, Hymans filed a petition in bankruptcy and the Equitable Trust Company of Detroit was appointed receiver. Plaintiff filed his claim in the amount stated and it was allowed in the bankruptcy proceedings. On May 3, 1938, after the allowance of the claim, Walton and Hymans entered into a contract whereby Walton waived his claim in bankruptcy and accepted Hymans’ promise to pay 40 per cent, of the claim as part of Hymans’ composition settlement with his creditors. This agreement to pay was secured by a mortgage on a stock of approximately 1,000,000 feet of lumber located at Athens, Tennessee. After executing the mortgage, Hymans continued to sell out of this mortgaged stock of lumber. This led Walton to seek rescission of the settlement agreement and reinstatement of his original claim in the bankruptcy court. His efforts in this regard were unsuccessful. The entire stock of lumber was eventually sold, and none of the proceeds thereof were paid to Walton. En January of 1939 the bankruptcy proceedings were closed and the assets of Hymans’ business were returned to him. En November of 1939 Walton began the present action against Hymans individually, doing business as Commercial Lumber Products, and against Commercial Lumber Products Company, a Michigan corporation. The case did not come to trial until October of 1941, prior to which an amended declaration was filed by Walton. While this case was pending, Walton instituted a trespass action against Equitable Trust Company in the circuit court, based on the claimed conversion by it of the proceeds of the mortgaged lumber. The trust company filed, a motion to dismiss, which was granted, and in Walton v. Equitable Trust Co., 296 Mich. 630, we held that the debtor’s property, wherever located, was subject to the exclusive jurisdiction of the bankruptcy court, that the receiver was not bound by the mortgage agreement, and affirmed the order of dismissal. Walton’s petition to have the composition agreement cancelled and his original claim reinstated was denied by the referee in bankruptcy and a review of that holding was denied by the district court. Walton then took an appeal to the circuit court of appeals, which he discontinued prior to commencement of the instant action. While the matter now under consideration was pending, Walton filed a second petition in the Federal court in which he set up the decision of this court in Walton v. Equitable Trust Co., supra, and sought an accounting by the receiver and by Hymans for the proceeds of the mortgaged lumber. This petition remained pending until dismissed by the district judge shortly after the present case was tried. The present action is one of trespass on the case and alleges a conspiracy between Hymans and the Commercial Lumber Products Company, a Michigan corporation, to convert the mortgaged property. When the matter was heard in the circuit court almost all the facts were stipulated, the record of the proceedings before the referee in bankruptcy was received in evidence, and some testi mony was taken. The trial judge stated the grounds on which he arrived at his conclusion as follows: “I think a definite proprietary right is created by the mortgage which cannot be modified by one party without the consent of the other. Certain definite interests are created by contract, and I don’t think they can be sloughed off, modified, or shuffled about for the convenience of one of the parties alone, and without the consent of the other. “And viewed realistically and with sort of a bird’s-eye perspective, I see this picture: The plaintiff here had a claim against the defendant in the sum of about $25,000 which he could have proved in the bankruptcy proceedings under section 74, and as was the case with other creditors, he could have received about 40 per cent, of the claim. He chose another method which was mutually adopted by the defendant, and the plaintiff, of relinquishing any claim in the bankruptcy proceedings, and instead, of accepting certain well-defined contract rights which arose by agreement between Walton and Hymans. They were specifically created by a written instrument; they were definite, they were concrete, not ambiguous, and the two parties agreed that those rights should stand in lieu of the rights which Walton had as a claimant. “It now appears that by some sort of obfuscation those rights have disappeared — I mean the security which Walton plainly was given in the agreement has disappeared, and there is a constant diminution of the bundle of rights which the plaintiff started out with until he finds himself left with the naked right to sue in assumpsit with the chance of collection which may or may not be good, upon a claim which started out to be a secured obligation, with ample security for its fulfillment. That is the factual residual picture. I don’t see that there is anything wrong about that. That sort of thing could happen, and it could happen without anyone’s being guilty of a wrong, and I realize that I am not a court of abstract justice, I am not even a chancellor at the moment. If that situation arose through the operation of law and the conduct of the parties, no matter how shocking it might be, it might be recognized and must be dealt with — an actual situation lawfully arrived at. I don’t think it comes in that category, however. I think it becomes a situation which results from a wrong and that wrong is the diversion and the appropriation of a security solemnly pledged to Walton’s debt, to other purposes.” The court entered a judgment of no cause of action as to defendant Commercial Lumber Products Company, a Michigan corporation, and a judgment against defendant Hymans in the sum of $11,358.41, that being the amount due on the mortgage. The parties agree that the questions involved on appeal are as follows: “1. Is the plaintiff estopped to claim that the mortgage lien is valid? “2. Had the plaintiff’s right to sue in this court already been adjudicated against him? “3. Had the plaintiff’s mortgage lien been lost by tender and refusal? “4. Is the present action barred by another suit pending in) the United States district court for the eastern district of Michigan, between the same parties and involving the same subject matter? “5. Does a conspiracy require the concert of at least two persons?” Much of Hymans’ argument on estoppel is in reality an attempt to invoke the doctrine of election between inconsistent remedies. The weakness of this argument is that, although Walton attempted to rescind the composition agreement, his efforts in that regard were unsuccessful, and therefore he is not now precluded from asserting that the composition agreement and the mortgage are valid. See Kruk v. Railway Co., 249 Mich. 685, for discussion of the rule of estoppel by election. In that case the court said: “In order to work an estoppel, the position assumed in the former trial must have been successfully maintained. ’ ’ See, also, Bowerman v. Detroit Free Press, 287 Mich. 443 (120 A. L. R. 1230), where this same principle was applied. Walton is not estopped from claiming that his mortgage lien is valid because Hymans does not show that he has changed his position to his detriment in reliance upon Walton’s previous claim that the composition agreement and mortgage were void. On the contrary, Hymans contended at all times that the agreement and mortgage were valid. £ £ There oaIL he no estoppel unless a party is misled to his prejudice by the one against whom it is set up. Shean v. U. S. Fidelity & Guaranty Co., 263 Mich. 535.” Dobranski v. Lincoln Mutual Casualty Co., 275 Mich. 1, 9. As was said in the Cudahy Brothers Co. v. West Michigan Dock & Market Corp., 285 Mich. 18, in discussing the distinction between ratification and estoppel: “One who is cognizant of all the material facts can claim nothing by estoppel. £ £ ‘There can be no estoppel unless a party is misled to his prejudice by the conduct of the person against whom it is set up, and acts are done rely ing upon conduct calculated to mislead.’ Thirlby v. Rainbow, 93 Mich. 164, 170. “To the same effect, see Plumb v. City of Grand Rapids, 81 Mich. 381; Ladd v. Brown, 94 Mich. 136; Murray v. Rugg, 116 Mich. 519; and Tower v. Township of Somerset, 143 Mich. 195.” Walton’s right to sue Hymans was not adjudicated against him in Walton v. Equitable Trust Co., supra, because in that case we did not pass upon any of plaintiff’s rights against Hymans individually but only those which he asserted against Equitable Trust Company. Nor were they passed upon by the referee in bankruptcy. The record there shows that the referee said: “I am not passing on the Walton claim. The only question is the amount of deposit and the waiver. ’ ’ In the bankruptcy proceedings the composition agreement and the mortgage were held to be valid. Walton’s rights under the mortgage have not been lost by tender and refusal. The referee in. bankruptcy stated in his findings of fact: “I find that the debtor has been and is ready, willing and able to perform the contract of May 3, 1938, that he has tendered performance of that contract, and that such tender was refused by Walton. ’ ’ This is not a finding of an actual tender of the amount of the debt, such as is necessary to discharge a lien. Tender is a rigorous defense and, as pointed out in Proctor v. Robinson, 35 Mich. 284, “Before yielding to a defense of such a nature and causing such a result the court is bound to insist on clear proof.” Speaking of the defendant in that case the court said: “If he meant to make a fair offer of the money by way of tender in payment and with the purpose of insisting that the lien was discharged in case of refusal, he was bound to act in a straightforward way and distinctly and fairly make known his true purpose, without mystery or ambiguity, and allow reasonable opportunity for intelligent action by the holder of the mortgage.” See, also, many authorities annotated in 93 A. L. R., beginning at page 12; also Schmittdiel v. Moore, 120 Mich. 199. Furthermore, in the absence of a showing that the tender was refused in bad faith, the lien was not discharged. Hayward v. Chase, 181 Mich. 614. The record in the bankruptcy proceedings which was received in evidence by the circuit judge does not show facts justifying the conclusion that Hymans made such tender as is required by the rule in Proctor v. Robinson, supra. On the contrary, it shows that the money due Walton was tied up in accounts receivable and Hymans merely promised to forward this money as it was received. The term “tender” is often used loosely as being synonymous with the term “offer.” This appears to be the sense in which the term was used by the referee. Walton’s suit against the Equitable Trust Company, as receiver, and Hymans for an accounting, which was pending in the Federal court and not dismissed until after the present case was tried, did not bar Walton’s action in the circuit court. Walton was not pursuing an inconsistent remedy but rather seeking alternative relief, and these two actions were not inconsistent. In the present action Walton seeks damages by reason of Hymans’ con version of the lumber, and, in the then-pending action, sought an accounting and recovery of benefits received through the sale of the lumber. The mere commencing of an action, or resorting to one remedy, is no bar to the commencing of a different form of action, provided only that the remedial rights, asserted in each instance are consistent.” Humiston, Keeling & Co. v. Bridgman, 195 Mich. 82, 87. Although Walton alleged a conspiracy between Hymans, doing business as Commercial Lumber Products, and Commercial Lumber Products Company, a Michigan corporation, he nevertheless can take a judgment against Hymans. In Auto Workers’ Temple Ass’n v. Janson, 227 Mich. 430, the court adopted the rule stated in 12 C. J. p. 646, as follows: “ ‘At the common law on the writ of conspiracy which has since become obsolete, it was necessary that at least two should be joined and found guilty. One could not be found guilty and the other acquitted. However, in an action on the case in the nature of conspiracy, which has superseded the ancient writ of conspiracy, although several are sued, the general rule is that judgment .may go against one, although the others are acquitted, as the foundation of .the action is the damage and not the conspiracy.’ ” 12 C. J. p. 646. The judgment is affirmed, with costs to appellee. Chandler, C. J., and Boyles, North, Starr, Butzel, and Sharpe, JJ., concurred. Wiest, J., took no part in this decision.
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McAllister, J. On September 15,1937, at a meeting of the board of directors of the Schlimme Dairy Company, a Michigan corporation, the following resolution was passed: “Resolved, that a dividend be declared of $5 per share on outstanding stock on record as of September 15, 1937 — said dividend to be made payable in common stock, or cash, or optional for the shareholder.” There were only three stockholders in the corporation: William F. Schlimme, Harold R. Coon, and Ernest J. Schwanbeck, who with Bernard W. Cruse and Roy I. Brown constituted the board of directors. On December 18, 1937, William F. Schlimme, the president of the corporation, procured some blank promissory notes and delivered them to Mr. Coon, the secretary, who prepared three promissory notes payable to the stockholders in varying amounts. These notes were then signed by Mr. Schlimme, as president. One of the notes in the amount of $1,350, representing a dividend of $5 per share on 270 shares of stock of the company, was given to Mr. Coon; another note for $750, representing the same dividend on 150 shares of stock, was delivered to Mr. Schwanbeck; and the third note, in the amount of $1,400, representing the dividend on 280 shares of stock, was taken by Mr. Schlimme. The notes all bore 3 per cent, interest. On August 23,1938, Mr. Schwanbeck’s note, with interest, was paid by the company; and Mr. Coon’s note, with interest, was paid in two payments on September 17 and 19,1938. Subsequently, at a meeting of the directors on October 28,1938, Mr. Schlimme demanded 143 shares of stock in the company for his dividend, claiming a right thereto under the resolution of the meeting on September 15,1937. He was opposed in this demand by Mr. Coon and Mr. Schwanbeck, but Mr. Cruse, as a director, offered the following resolution: “Besolved, that 143 shares of stock of the corporation be issued to William F. Schlimme in payment of his note made by the corporation and dated December 10, 1937.” The resolution was passed by a vote of three to two; Schlimme, Cruse, and Brown in favor of it, and Coon and Schwanbeck voting against it. Mr. Coon, as secretary, refused to sign the certificate of stock for the issue which had been voted at the meeting; and upon notice to him that a special meeting of the directors was to be called on November 12,1938, for the purpose of removing him from the office of secretary, he filed a bill of complaint to enjoin the meeting and his removal from office; and a restraining order was issued on an order to show cause. The corporation and the other directors were joined as defendants in plaintiff’s action, and on answers filed, and cross bills, tbe trial court heard tbe case, and by decree granted plaintiff tbe injunctive relief prayed. A substantial part of tbe case on appeal and of tbe ■trial court’s opinion and decree is concerned with issues arising out of a petition for dissolution of tbe corporation, filed by Scblimme, Brown, and Cruse, subsequent to tbe filing of tbe bill of complaint. Tbis petition was consolidated with tbe plaintiff’s action on trial. All matters with regard to tbe dissolution proceeding, however, were expressly abandoned by defendants on tbe argument in this court and, therefore, need not be considered. Tbe single question, therefore, to be determined is whether defendant Schlimme is entitled to tbe issuance of stock pursuant to the resolution declaring a dividend, or whether bis right is limited to cash in lieu thereof. Tbe determination of tbis question affects tbe control of tbe corporation. Coon and Schwanbeck are tbe owners of 420 shares of stock. Scblimme is tbe owner of 280 shares. If Scblimme is entitled to tbe stock be claims for tbe dividend, be would receive 143 shares, and would be tbe owner of 423 shares as compared to 420 shares owned by Coon and Schwanbeck. To secure 143 shares, Scblimme must receive not only tbe amount of stock equivalent to tbe face of bis note, but tbe equivalent of tbe note with interest. If be received stock equivalent only to tbe principal amount of tbe note, be would receive 140 shares, and control of tbe corporation would be equally divided between Coon and Schwanbeck, on tbe one side, and Scblimme, on tbe other. If Scblimme is entitled only to cash, representing tbe face of bis note and interest, be will receive tbe same proportion of money as did tbe other stockholders as a result of tbe dividend and tbe payment of their notes, and tbe status of tbe corporation with reference to control will not have been changed since the resolution declaring the dividend. On this issue the trial court found that Schlimme had agreed to accept cash instead of stock, in the payment of the dividend, at the time he accepted the note of the corporation. Apparently the plan envisaged in the resolution declaring the dividend had for its purpose the avoidance of a Federal tax on the surplus of the corporation. Schlimme testified that defendant Brown, the accountant for the company, had advised the directors that notes would have to be issued for a dividend, or the corporation would be obliged to pay a tax on surplus; and that if stock were issued for the dividend, payment of the surplus tax could not be avoided. The notes were, therefore, issued and accepted by Schlimme instead of stock. He stated that he took the note to avoid payment of the tax which he understood would be payable if stock had been issued rather than the notes. When Schlimme was asked whether these corporation notes represented cash, his answer was: “A note usually represents cash. ” Between the time that Coon and Schwanbeck had received cash in payment of the notes given for the dividends, and the time of the meeting authorizing the issuance of stock to Schlimme for his dividend, the value of the corporation stock had increased $6,600, or approximately from $21 per share to $27 per share; and this increase was due to the return of $6,600 worth of bonus stock by the directors to the corporation. On the trial Schlimme testified that the real reason he wanted stock instead of cash for his dividend was for the purpose of securing control of the corporation. Plaintiff Coon testified that Schlimme never mentioned the claim that he wanted stock instead of cash for the dividend until the meeting of October, 1938; and Schlimme admitted that he had never told Schwanbeck that he desired stock instead of cash. When asked why he never had caused the board to direct the issuance of stock to him for the dividend during this entire period until October, 1938, Schlimme’s only explanation was that Coon was too busy to meet with the directors and sign the certificates. Schlimme’s claim was that the notes were issued only as evidence of the amount of stock or amount of cash the stockholders would be entitled to when they would thereafter make their election as to the form of dividend they wanted. He claimed that he held the note as evidence of the stock which he subsequently elected to take. But he is making a claim for stock not only equivalent to the amount of the note, but also for accrued interest. This is inconsistent with his claim. Interest is paid for the use of money. Stock does not pay interest, but only gives a right to dividends. Schlimme’s claim that he is entitled to interest on the note is inconsistent with the claim that the note was only evidence of the amount of stock to be issued; and such claim of interest is consistent only with a claim of indebtedness of the corporation, represented by the note. It is not necessary to review any further part of the evidence. From an examination of the record, we are of the opinion that defendant Schlimme accepted the note of the corporation in payment of his dividend as representing cash. He deliberately elected not to take stock at the time the note was issued, for the express purpose of avoiding Federal tax on the surplus of the corporation. His claim that he did not elect to take the note as representing cash, but merely as evidence of how much stock he would receive, is untenable. To sustain him in such a contention would be to give him the benefit of an advantage resulting from a deceit practised upon the Federal government in misrepresenting the corporation to be indebted and thereby evading taxation; and, as defendant Brown, the accountant of the company, testified, this would be defrauding the Federal government. We do not believe that to have been his intention at the time he accepted the note. It would seem that various personal contentions and difficulties with other directors have changed his attitude since the time of the declaration of the dividend, and that his present claim is a result of such internal troubles in the corporation. But his present contention could not otherwise be supported. Defendant Schlimme is not entitled to a stock dividend, but is limited to his right of payment of the promissory note. We have considered other questions on the appeal and find them to be without merit. The decree of the trial court enjoining issuance of the stock in question and removal of the plaintiff as secretary is affirmed, with costs to plaintiff. Bushnell, C. J., and Sharpe, Potter, Chandler, North, Wiest, and Butzel, JJ., concurred.
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Sharpe, J. This is an appeal from a judgment of the circuit court of Wayne county on certiorari affirming an order of the appeal board of the Michigan unemployment compensation commission sustaining the decision of a referee who awarded unemployment benefits to an employee of Arnold H. Godsol, doing business as Nu-Enamel Michigan Company. The record- shows that John T. Willcox was employed by Nu-Enamel Michigan Company from December, 1938, to October, 1939, at which time he voluntarily terminated his employment and thereafter filed a claim with the Michigan unemployment compensation commission for benefits under the unemployment compensation act (Act No. 1, Pub. Acts 1936 [Ex. Sess.], as amended by Act No. 347, Pub. Acts 1937, and Act No. 324, Pub. Acts 1939 [Comp. Laws Supp. 1940, § 8485-41 et seq., Stat. Ann. 1940 Cum. Supp. § 17.501 ei) seq.~\). Neither the business conducted by plaintiff Arnold H. Godsol under the name of Nu-Enamel Michigan Company nor the business conducted by plaintiff Helen Godsol, his wife, under the name Nu-Enamel Detroit Company in the year 1939 employed eight or more persons, the number requisite to constitute either an “employer” under the act, for at least 20 weeks in such year, although the two businesses combined had a total of more than eight employees for more than 20 weeks within such period. In 1934, Arnold H. Godsol, having obtained an exclusive distributorship from the Nu-Enamel corporation of Ohio, opened a retail store in the city of Detroit for the sale of its products. He did business as the Nu-Enamel Michigan Company. By 1939, he had disposed of his retail stores and his business became largely wholesale except for a retail department operated at his place of business. In 1935, Mrs. Helen Godsol, wife of Arnold H. God-sol, was in his employ. She received a salary and worked the regular hours of an employee. In 1937, during an illness of her husband, she was authorized to sign checks drawn on the firm account. In 1939, she was present at his place of business four or five days per week. She checked orders, prices, and records. Employees acted on her instructions and looked upon her as the person in charge of the business during the absence of her husband. She has had no financial interest in the Nu-Enamel Michigan Company and received no profits therefrom. In February, 1937, Mrs. Godsol obtained a sub-distributorship from her husband, leased premises in Hamtramck and opened a retail store. The capital for this venture was not derived from her husband. It constituted her sole and separate estate. Sometime later, she opened a second store using her own, money as capital. All merchandise sold from both stores was purchased from her husband in the same manner and at the same prices that merchandise was sold to other subdistributors. All cash receipts from her stores were deposited in bank accounts in her name. The books pertaining to these stores were kept at Mr. Godsol’s place of business by a bookkeeper in the employ of Mr. Godsol, but Mrs. Godsol was charged $10 per month for this service. In the operation of the stores Mrs. Godsol relied to a large extent on the advice and assistance of her husband, who frequently visited her stores, issued instructions and directions to the employees in the stores, called the store managers almost daily for a report on business, interviewed, hired and discharged employees and was more active in the management of the stores than Mrs. Godsol. Section 41 (3) of the unemployment compensation act as amended in 1937 (Comp. Laws Supp. 1940, § 8485-81, Stat. Ann. 1940 Cum. Supp. § 17.543) provides : “Any employing unit which, together with one or more other employing units, is owned or controlled (by legally enforceable means or otherwise) directly or indirectly by .the same interests, or which owns or controls one or more other employing units (by legally enforceable means or otherwise) and which, if treated as a single unit with such other employing units or interests, or both, would be an employer under paragraph (one) of this section.” John T. Willcox’s claim was heard before a referee who held that “the employing unit owned by A. H. Godsol and the employing unit owned by Helen Godsol are affiliated within the meaning of section 41 (3) of the act and, as such, constitute an ‘employer.’ Therefore, the services rendered by the claimant during the calendar year of 1939 were in ‘employment’ and the remuneration he received therefrom was ‘wages’ as defined in this act.” In Ms “reasons for decision,” the referee said: “It is my opinion that the record conclusively establishes that A. H. Godsol manages and controls the business of Helen Godsol as well as that owned in his own right. It can reasonably be argued that he has no right to control the business of Helen Godsol. This is admitted and it is further admitted that A. H. Godsol’s control over Helen Godsol’s business could be terminated by the latter at any tim,e she so desires; that her business belongs to her sole and separate estate. However, the fact remains that to the date of the hearing, A. H. God-sol owned its [Ms?] own individual business and managed and/or controlled the business of Helen Godsol.” A. H. Godsol, doing business as Nu-Enamel Michigan Company, appealed to the Michigan unemployment compensation commission appeal board wMch affirmed the decision of the referee, and said: “It is the opinion of this appeal board that the great weight of the evidence clearly shows that Arnold H. Godsol in fact actively controlled the employing unit owned by his wife, Helen Godsol, within the meaning of section 41 (3) of the MicMgan unemployment compensation act. The record shows that Arnold H. Godsol frequently visited his wife’s stores, called store managers for daily reports, and interviewed, hired and fired employees for his wife’s stores. Helen Godsol visited her two stores only two or three times a month and relied almost exclusively on the business judgment of her husband in the conduct, control, and management of her stores. Her husband was far more active than she herself was in the actual operations of her retail stores. There is also some evidence of an inter-exchange of merchandise and personnel between the two employing units. * * * “The control exercised by Arnold H. Godsol did not amount to mere assistance but consisted of direct control and management of the detailed business transactions of the stores which were registered in the name of his wife.” Upon petition of the Godsols, a writ of certiorari was issued by the circuit court of Wayne county to the commission, the appeal board, and John T. Willcox. The circuit court affirmed the decision of the appeal board and in his written opinion said: “The commission also found that the husband in truth and fact exercised not only a position of supervisor, but with the authority to hire and discharge employees and make such changes in the management as he, Arnold H. Godsol, deemed expedient. “Appellants contend that this is not so and that there is no such supervision by the husband as to bring the business of the wife under the affiliation clause with the business of the wife, that it is her own separate estate and is managed entirely by her, and while this presents a very nice question, I do not think that, in view of the decision of the board, it is the controlling issue in this case. Both the referee and the appeal board made a finding that ‘Arnold H. Godsol, as a matter of fact, exercised control over the employing unit owned by his wife. ’ “There is nothing before us wherein criticism is made of this finding or that it is not supported by the record as made. This was of course a greatly disputed question of fact, and the referee’s finding on this question which was sustained by the appeal board, was adverse to the appellants. This being so, and no claim being made that either the referee or the appeal board abused their discretion or that the finding is against the weight of the evidence or tinged with fraud, I am of the opinion that this court has no jurisdiction to review, the finding of the appeal board. * * * “The board has made a finding on the weight of the evidence and that finding is not here questioned. Being of the mind that there is nothing to review in this record which would entitle the appellants to the relief prayed for, it follows that the action of the appeal board be and the same is hereby sustained. ’ ’ Plaintiffs appeal and contend: That the word “control,” as used in Act No. 1, § 41 [3], Pub. Acts 1936 (Ex. Sess.), as amended by Act No. 347, Pub. Acts 1937, is not synonymous with and equivalent to the word “manage,” and that managerial power and authority exercised by a husband over the separate business of his wife, at sufferance, and solely by virtue of marital influence and acquiescence, unaccompanied by legal or beneficial ownership, powers or rights, is not the “control” intended by the legislature in said provision; That in the absence of the showing of evasive intent, section 41 (3) of the above act does not contemplate or authorize the treatment of separately owned businesses of a husband and "wife as a unit for the purpose of determining their subjectivity and liability for tax under the act; That section 41 (3) of the above act interpreted and applied by the referee, appeal board, and court below is void and unconstitutional and denies plaintiffs rights guaranteed and protected under section 1 of the 14th Amendment to the Federal Constitution and deprives plaintiffs of due process of law and equal protection of the laws contrary thereto, in that: a. It determines the subjectivity to said act of each plaintiff and imposes upon each a tax, not by reason of the number of his or her employees, but in part, by reason of the number of employees of another: b. It arbitrarily and capriciously includes plaintiffs in a classification of employers of eight or more persons when plaintiffs are not either in fact or in law such employers; c. It arbitrarily and unreasonably imposes on plaintiffs a tax not imposed on competitors and others similarly situated employing less than eight persons. It is to be noted that review of decisions of the appeal board by the circuit court and appeal to this court is provided in section 38 of the act as amended in 1939 which reads as follows: “Review of questions of fact and law by court. The findings of fact made by the appeal board acting within its powers, if supported by the great weight of the evidence, shall, in the absence of fraud, be conclusive, but the circuit court of the county in which the claimant resides or the circuit court for the county of Ingham shall have power to review questions of fact and law on the record made before the appeal board involved in any such final decision or determination but said court may reverse such decision of said appeal board upon a question of fact only if it finds that said decision of the appeal board is contrary to the great weight of the evidence: Provided, That application is made within 15 days after such determination by certiorari or by any other method permissible under the rules and practices of the circuit courts of this State, and to make such further orders in respect thereto as justice may require. The commission shall be deemed to be a party to any judicial action involving any such decision. _ An appeal may be had from the decision of said circuit court in the same manner as provided by the_ laws of this State with respect to appeals from circuit courts.” In this case we are limited to a review of the judgment of the circuit court. There is no proce dure by which we may review directly any decision of the administrative tribunal. The principal question involved here is whether plaintiffs are “employers” within the terms of the statute. Plaintiffs contend that the statute does not refer to “control resting on acquiescence, dominance of personality, marital or family relationship or other considerations having no binding force, without title, legal or beneficial interest or ownership or legal means or methods of enforcement,” but that section 41 (3) applies only to employing units whose control as a matter of legal right is held by the same interests, or an employing unit, which as a matter of legal right controls another employing unit. In our opinion the language of the statute is clear. It does not require legally enforceable control. It states that an employer under the act would be any employing unit “which owns or controls one or more other employing units (by legally enforceable means or otherwise).” In Maine Unemployment Compensation Commission v. Androscoggin Junior, Inc., 137 Me. 154 (16 Atl. [2d] 252), a suit was brought to collect unemployment contributions. It appears that a Mr. Healy owned and operated a boys’ camp for several years and in 1936 he and two of his camp counsellors organized a corporation to create and operate a separate camp for younger boys. Mr. Healy was to continue the operation of the other camp as before and the corporation was to operate the camp for junior boys. The corporation had three directors. Mr. Healy owned 67-% per cent, of the stock of the corporation and the other two directors owned the remainder. The commission contended that Mr. Healy had common control of both camps and they constituted an employing unit which, considered as a single unit, employed eight or more persons. The Maine statute contained a provision precisely the same as section 41 (3) involved in the case at bar. The court said: “The plaintiff does not claim that Healy owned the company but that he controlled it within the meaning of said section 19 (f) (4). The control required is not necessarily that legally enforceable. It may be otherwise. It is a matter of actual control. * * * Taking all the facts into consideration, particularly Mr. Healy’s relations with the two counsellors before the organization of the company and the fact that they had received their training under him who had carried on a boys’ camp business for more than 20 years, it is but natural to conclude that they regarded him as the one whose voice in the conduct of the company’s affairs should govern. We find that he controlled this corporation within the meaning of the statute.” In the case at bar, the control exercised by A. H. G-odsol did not amount to mere assistance but consisted of direct control and management of the detailed business transactions of the stores which were registered in the name of his wife. It is the kind of control that comes within the purview of the statute. It is next urged by plaintiffs that the legislature cannot without violating the 14th Amendment of the Federal Constitution provide “that the separately owned businesses of a husband and wife * * * be combined and treated as a unit for the purpose of determining subjectivity to such act and tax.” The 14th Amendment is not violated by legislation which applies only to those persons falling within a specified class if it applies alike to all persons within such class and reasonable grounds exist for making a distinction between those who fall within such class and those who do not. That the legislature saw fit to include within the terms of the act instances where two or more units were actually controlled by the same interests or where one unit actually controlled another employing unit is not arbitrary nor unreasonable. On the contrary, such provision is necessary in order that the benefits of the act be not denied and the purposes of the act as a whole be not frustrated to many employees by reason of disintegrated ownership and control. A reasonable relationship between the statute and the evil sought to be controlled brings the statute within the limits of constitutionality. Similar provisions are found in the unemployment compensation act of Connecticut. In New Haven Metal & Heating Supply Co. v. Danaher, 128 Conn. 213 (21 Atl. [2d] 383), that court said: “The plaintiff’s principal contention is that the provision is unconstitutional because it violates the equal protection clause of the State and Federal Constitutions. More concretely it argues that this clause is violated because under the statute other persons engaged in the same, similar, or different businesses, employing like the plaintiff but four employees, are not subject to the tax, compelling it to carry a burden these others are not obliged to bear either in the payment of this or of other taxes of equivalent burden. This presents for determination the question whether the classification made by the statute is arbitrary, unreasonable and unjustified. The applicable legal principles are well settled. ‘ The equal protection of the laws is accorded when all persons similarly situated are accorded “equal protection under the law in the enjoyment of rights belonging to all.” ’ * * * Neither of these constitutional provisions require taxation to be equal and uniform, or prevents classification for the purposes of legislation. The classification must, how ever, ‘be reasonable, not arbitrary, and must rest upon some ground of difference having a fair and substantial relation to the object of the legislation, so that all persons similarly circumstanced shall be treated alike. The latitude of discretion is notably wide in the classification of property for purposes of taxation and the granting of partial or total exemptions upon grounds of policy.’ * * * “Applying these principles, since the formula established by the statutory provision in question applies to all employers similarly situated, that is, to all employers whose businesses are under common ownership or control, the question is resolved to whether the classification has a fair and substantial relation to the object of the legislation. If it has, it is valid. If it has not, it is arbitrary, unreasonable and capricious, and therefore void. It is apparent from the plan embodied in the act as already stated that its primary object is to relieve against the distress of unemployment, and that the imposition of the tax upon employers is incidental. * * * Pursuant to the act’s basic scheme of paying benefits to the employees of every employer of five or more persons, the duty to pay contributions is imposed upon every such employer as defined in it. The payment so required is a proper tax on the exercise of the right to employ, and a numerical classification of this nature is valid. Carmichael v. Southern Coal & Coke Co., 301 U. S. 495, 510 (57 Sup. Ct. 868, 81 L. Ed. 1245, 109 A. L. R. 1327). # * * Under the act as originally adopted * * * it was possible for some employers of five Pr more persons by resort to such a course as that revealed by the facts in this case, to defeat the remedial objects of this legislation. At its next session in 1939, the legislature adopted as an amendment the provision in question. The amendment was adopted in pursuance of a suggestion made by the administrator of the unemployment compensation division with the approval of the advisory council for the division, and the written statement of the purpose filed with the legislature in connection with the proposal, after referring to the fact that .certain employers were taking advantage of this loophole in the 1937 law, continued: ‘It seems only fair that the employees of such enterprises should be covered and it seems desirable to keep enterprises from subdividing into separate corporations, partnerships, and individual proprietors, * # * and thus avoiding coverage under the unemployment compensation law.’ The content of this provision, effectively worded as 'the amendment, is to apply to such a situation as the, one before us, which the original enactment failed to cover, and to deal with it in a manner in harmony with the general design of the act, considered in connection with the avowed purpose of its enactment, leaves no doubt that the classification prescribed by it has a fair and substantial relation to the object of the legislation. That it is calculated to close an avenue of tax avoidance, of itself lends support to its validity.” The purpose of the unemployment compensation act is to relieve the distress of economic insecurity due to unemployment. It was enacted in the interest of public welfare to provide for assistance to the unemployed and as such is entitled to a liberal interpretation. In our opinion section 41 (3) is not unconstitutional. The judgment of the circuit court is affirmed. In view of the fact that a public question is involved, no costs will be awarded. Chandler, C. J., and Boyles, North, Starr, Butzel, and Bushnell, JJ., concurred. Wiest, J., did not sit. Maine, Pub. Laws 1935, chap; 192, as amended by Pub. Laws 1937, chap. 228.—Reporter.
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Chandler, C. J. By virtue of the terms of a certain lease, dated October 2, 1940, between defendant and one Joseph Babiec, defendant became the lessee of certain premises located in the city of Hamtramck, which were used for theater purposes and which have been referred to in this proceeding as the Campau theater. Defendant also was the lessee of another theater located in Hamtramck, said lease being dated August 25,1938, and’ executed by Anna Slepski, individually and as guardian of Delphine Slepski, a minor, Leonard Slepski, Angelice Kowalewski and Arthur Slepski. This property is known as the White Star Theater and the lease as the Slepski lease. On March 13, 1941, plaintiffs entered into a written agreement with defendant which provided for the subleasing of the Campau theater to plaintiffs on certain stated terms and conditions. The agreement also granted an option to plaintiffs whereby they could become sublessees of the White Star theater upon proper notice to defendant of the intention to exercise such option. Relative thereto, the agreement provided: “15. The parties of the second part shall have the right and option to become the subtenants of the party of the first part of the premises known as 9227 Joseph Campau avenue, Hamtramck, Michigan, including the White Star theater, and hereinbefore described or designated as White Star premises, by notifying the party of the first part in writing, by delivering to him personally, or by registered mail, any time prior to February 1, 1942, of their intention to exercise said option to sublet the White Star premises, provided, however, that in the event said option is exercised by the parties of the second part, the same shall not become effective and operative until February 1, 1942, and parties of the second part shall not obtain possession until February 1, 1942, it being further agreed that subletting by the party of the first part to the parties of the second part is to be on the following term's and conditions: “(a) That after the exercise of the option described in the preceding paragraph and upon delivering of the possession of the premises the parties of the second part are to pay to the party of the first part the snm of $9,000, upon the receipt of which the party of the first part will execute to the parties of the second part a sublease of the "White Star premises. “(b) That said sublease of the White Star premises will be for a term of three years, commencing February 1, 1942, at a monthly rental of $400, payable in advance, subject to all of the terms and conditions of the Slepsld underlying lease, which terms and conditions the parties of the second part agree to faithfully perform and carry out for that period. “ (c) That said sublease of the White Star premises will contain a clause giving the parties of the second part the right and privilege to renew said sublease for the remainder of the party of the first’s term in his underlying Slepsld lease, at the same monthly rental as provided for in said original lease, and obtain any and all other rights the party of the first part has under the original lease, and subject to the same terms and conditions, provided, however, that no less than 60 days prior to the expiration of the three-year term provided for in the sublease, the parties of the second part, in writing, delivered in person or by registered mail, shall notify the party of the first part of their intention to renew the sublease for the unexpired portion of the party of the first part’s underlying Slepsld lease. “(d) That parties of the second part, for themselves, their heirs, executors, and administrators, covenant and agree with party of the first part, his heirs, executors, administrators, to perform and faithfully carry out all of the terms, conditions, and agreements as contained in the Slepski underlying lease during the three-year term herein created; and in the event the said second parties shall exercise their option of renewal, pertaining to the White Star premises, for the remainder of the first party’s underlying Slepski lease, said second parties further covenant and agree to carry out and perform the provisions of said underlying Slepski lease appertaining to the residue of the term therein created, required to he performed by the party of the first part, and do hereby assume and agree to faithfully fulfill all of the terms and conditions imposed upon the said Edward S. Pasco in said underlying Slepski lease and agree to fully pay, discharge and fulfill each and every obligation in said underlying Slepski lease to be performed by or on the part of Edward S. Pasco. * * * “26. That the party of the first part will at any time upon request of the parties of the second part execute an assignment of the entire and/or a portion of the term of the Babiec lease of the parties of the second part. Provided, however, that Babiec consents thereto; and at any time after February 1, 1942, party of the first part will upon request of the parties of the second part execute an assignment of the entire and/or a portion of the term of the Slepski lease to the parties of the second part, subject to the provisions in the following paragraph. “That the party of the first part will within a reasonable time, make a reasonable effort to obtain consent of the lessors of the Slepski lease to an assignment and/or sublease of the premises to the parties of the second part. That such consent shall include Wayne probate court’s approval to the lease as so modified by Leonard Slepski, administrator of the estate of Anna Slepski, deceased, and by Leonard Slepski, guardian of estate of Delphine Slepski, a minor. That in the, event consent to the assignment and/or sublease for tbe- entire and/or portion of tbe term cannot be obtained, the party of tbe first part will give to tbe parties of tbe second part a management contract of said Slepski premises on tbe same terms and conditions herein mentioned and provided at $1 a year. “27. That tbe party of tbe first part agrees to comply with tbe terms and conditio'ns of tbe original underlying Babiec and Slepski leases including tbe payment of tbe rental promptly when due to tbe lessors.” Tbe bill of complaint herein, filed on January 31, 1942, alleges tbe execution and material provisions of the aforementioned leases and agreements. Tbe bill further alleges that on January 8,1942, pursuant to tbe method provided in tbe agreement above quoted, plaintiffs gave notice of their intention to exercise tbe option granted and become sublessees of tbe White Star theater; and that pursuant to paragraph 15(a) of the agreement a tender of $9,000 was made and under paragraph 15(b) tbe sum of $400 was tendered in payment of the rent for tbe first month. Defendant and plaintiffs each refused to execute tbe lease tendered by the other because of a dispute as to tbe amount of tbe monthly rental for tbe White Star premises to be paid by plaintiffs, defendant’s proposed lease calling for a monthly rental of $800 and plaintiffs’ proposed lease providing for tbe payment of $400 monthly. Tbe bill prayed for specific performance, an accounting, and for tbe appointment of a receiver pending determination of the cause. The question of the appointment of a receiver came on to be beard upon tbe bill of complaint and defendant’s sworn answer thereto, and, as a result, tbe trial court appointed Louis Goldberg, one of tbe plain tiffs, as receiver, such appointment being conditioned on the deposit by him of the sum of $9,000 with the clerk of the court, the execution of a bond in the amount of $10,000, conditioned upon payment by plaintiffs to defendant of any sum found to be due on any sublease or assignment of lease that might be found to exist between the parties, and the execution of a receiver’s bond in the amount of $1,000. The order also provided that the receiver should take possession of the premises forthwith. This appeal attacks the order appointing the receiver, it being the claim of appellant that the court had no authority to make such appointment in view of the answer under oath and for other assigned reasons. The sworn answer admits the execution of the various instruments involved in the controversy and it appears from the pleadings that the only point of dispute concerns the amount of monthly rental that plaintiffs were to pay as sublessees of the "White Star theater. They claim that it should be $400 per month. Defendant takes the position that the agreement of March 13, 1941, contemplated that the sublease should be on a rental basis of $800 per month in view of the various recitals in the agreement that plaintiffs would “fully pay, discharge and fulfill each and every obligation in said underlying lease to be performed by or on the part of Edward S. Pasco.” On this appeal we are not concerned with the merits of the controversy. The sole question for consideration is whether the court properly appointed the receiver. In Sanford v. Newell, 204 Mich. 91, defendant had filed a sworn answer traversing in detail the allegations of the bill. The trial court appointed a receiver to take possession of the property involved upon giving proper bond. Upon appeal, this court, while recognizing the power to appoint a receiver of property in possession of a defendant under claim of right in rare instances where the corpus of the litigation was in imminent danger of loss or irreparable injury, reversed and held for naught the order of the trial court, saying: “When this order was made appointing a receiver and dispossessing defendant he had filed his answer fully meeting and denying under oath the equities of plaintiffs ’ bill and the case was ripe for hearing, no replication being now required. The general rule as to the effect of a verified answer on an application for appointment of a receiver prior to trial of the suit on its merits is stated as follows in 34 Cyc. p. 133: “ ‘It is a well-established rule that plaintiff, the equities of whose bill have been fully met and denied, is not entitled to the appointment of a receiver, unless he overcomes the denials in such answer by further proof in support of his bill. In other words, where the equities of plaintiff’s bill have been fully met and denied by a sworn answer on behalf of defendant, the court has no discretion and its appointment of a receiver in such case is unauthorized.’ ” The Sanford Case controls the case at bar. There was no showing that irreparable injury was going to result unless the receiver was appointed. Admittedly defendant was in rightful possession of the premises, and it was a clear infringement of his rights to dispossess him. Plaintiffs rely on Payne v. Atterbury, Harr. Ch. (Mich.) 414. Aside from other distinguishing features, it appeared in that case that irreparable injury to plaintiff might ensue if a receiver was not appointed. Plaintiffs argue that their right to possession is admitted by the answer; that the only issue is the amount of monthly rental the sublease should provide ; and that it therefore appears that the equities of the bill have not been met by a sworn answer so as to bring the case within the rule of Sanford v. Newell, supra. The bill prays for specific performance and that defendant be required to execute a lease providing for a monthly rental of $400. The bill and answer, therefore, put in issue the construction of the terms of the option agreement. If defendant’s construction of that agreement should prevail, plaintiffs cannot maintain their bill and it follows that the equities and plaintiffs’ right to the relief sought have been met by the sworn answer. This is not the time to construe the contract or decide the case on its merits. The order appointing the receiver is reversed and held for naught and the case remanded for further proceedings. Appellant shall recover costs. Boyles, North, Starr, Butzel, Bushnell, and Sharpe, JJ., concurred. Wiest, J., did not sit.
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Bushnell, J. This is an appeal by Marion W. Page Ross (Greenwood) from a construction of the will of Humphrey R. Wagar, deceased. Wagar’s will was executed in 1908 and he died in 1916. This will has been before the court on two occasions, In re Wagar’s Estate, 292 Mich. 452, and In re Wagar’s Estate, 295 Mich. 463. Wagar left surviving him his widow, three children, and three grandchildren. The provisions for his wife, his children and grandchildren are found in the cases just cited. In 292 Mich. 452, the surviving trustees of the estate sought a construction of the will and instructions relative to distribution of a share of the estate which would have passed to Wellington Cass Page had he survived. Wellington,. who was one of Wagar’s grandchildren, died 13 months before the testator, under the age of 21, unmarried and without issue. The court held in that case: “That the devise to Wellington Cass Page goes to, and is ‘to be divided among the legal heirs of said grandchild, share and share alike,’ and that the legal heirs of Wellington Cass Page are to be determined as of the date of the death of the last surviving child of the testator and the estate is ready to be distributed in accordance with the provisions of the will. ” In 295 Mich. 463, the court was called upon to determine whether the widow of one of Wagar’s children should receive the amounts which were payable monthly to her husband. In that case the court held that, when Wagar used the phrase “legal heirs” in paragraph 6 of the will, he intended to include the widow of the particular son in question. Wagar’s last surviving child is now deceased and Gertrude P. Page, guardian of Rufus Lee Page, Jr., a then mentally incompetent person, petitioned the court for an order requiring the distribution to Rufus Lee Page, Jr., of an equal share of a one-quarter share of the residue of the estate of Humphrey R. Wagar. Her contention is that Rufus Lee Page, Jr., a half brother of Wellington Cass Page but not of the blood of the testator, was a legal heir of "Wellington Cass Page as of October 6,1939, which was the date of the death of the last surviving child of the testator. Wellington Cass Page has a sister, Marion Greenwood, and their mother, now deceased, was a daughter of Humphrey R. Wagar. Approximately five years before Humphrey R. Wagar executed his will, Wellington Cass Page’s mother and father, Rufus Lee Page, were divorced. About three years before the will was executed, Rufus Lee Page married Gertrude Page, petitioner herein, and of that marriage Rufus Lee Page, Jr., was born. Another child was born of this marriage but is not now living. Rufus Lee Page, the father of Wellington, is now deceased, and the question presented is whether Marion Greenwood, a full sister, shall take the full share that was originally designated for Wellington Cass Page, or whether it shall be divided, share and share alike, between her and her half-brother, Rufus Lee Page, Jr. This question was submitted to the late Judge Royal A. Hawley, of Ionia, who died before he reached a decision. The parties thereafter stipulated that the cause should be considered by another circuit judge. Judge Leland W. Carr was • so designated by the State presiding judge, and he determined in a written opinion that Rufus Lee Page, Jr., was entitled to share under the will, and entered a decree accordingly. Appellant, the full sister of Wellington Cass Page, contends that, because of the statute, Rufus Lee Page, Jr., cannot take. The statute, 3 Comp. Laws 1929, § 13444 (Stat. Ann. § 26.985) reads as follows: “The degrees of kindred shall be computed according to,the rules of the civil law; and kindred of the half blood shall inherit equally with those of the whole blood in the same degree, unless the inherit anee come to the intestate by descent, devise, or gift of some one of his ancestors, in which case, all those who are not of the blood of snch ancestor shall be excluded from such inheritance.” Was Rufus Lee Page, Jr., a legal heir of Wellington Cass Page as of October 6, 1939? If so, he is entitled to take under the Wagar will. The term “legal heir” is defined in Black’s Law Dictionary (3d Ed. [1933]), p. 886, as follows: “Heir, legal. In the civil law. A legal heir is one who takes the succession by relationship to the decedent and by force of law. * * * The term is also used in Anglo-American law in substantially the same sense, that is, the person to whom the law would give the decedent’s property, real and personal, if he died intestate.” See Brooks v. Parks, 189 Mich. 490. Had Wellington Cass Page died intestate on October 6, 1939, Rufus Lee Page, Jr., would certainly have been entitled to share in his estate generally, and he is therefore a legal heir of Wellington within this definition. Is he precluded from taking as a legal heir because he could not have inherited this property through Wellington Cass Page if it had come to Wellington during his lifetime? The mere fact that Rufus Lee Page, Jr., could not have shared in any ancestral property which Wellington might have inherited during his lifetime' from the testator does not prevent him from being a legal heir of Wellington within the meaning of that term. He was, in the language of the definition quoted, “the person to whom the law would give the decedent’s property, real and personal, if he died intestate.” He was, therefore, a legal heir of Wellington Cass Page. But, say appellants, he is not a legal heir because he is only a half-brother, excluded by statute from inheriting, through Wellington, property devised by Humphrey R. Wagar. Rufus does not seek to take through Wellington, but directly under the will, and, because of its language, as a member of a class designated by the testator to whom property should go upon the happening of a contingency. The will reads: “7th. Subject to the life estate of my beloved wife, and the children above named, I give, devise and bequeath to my grandchildren, Portia W. Wagar, H. R. Wagar, Jr., Marion W. Page and Wellington Cass Page, sons and daughters of my said children, all the remainder of my real estate and personal property, and all that may remain thereof and be accumulated by my trustees, whether said property is in the name of Humphrey R. Wagar or H. R. Wagar Estate, or in whatever name it may be held, or wherever situated, to have and to hold the same to themselves, their heirs and assigns forever, and to be divided between them, share and share alike. This devise, however, always subject to this condition: that in case of the death of any of said grandchildren, prior to the time of the ■decease of the survivor of my children, then and in such case, the share or shares of the said deceased grandchild shall be divided among the legal heirs of said grandchild share and share alike. ’ ’ The contingency anticipated by the testator became an actuality. Wellington, his grandchild, died prior to the death of the survivor of the children of the testator. When this happened, the gift originally intended for Wellington passed over to those who might be his “legal heirs” at the date of the death of Wagar’s last surviving child. Appellants further contend that, had Wellington survived the testator by even one day, Rufus would not have been an heir of Wellington’s so far as this property is concerned, and hence cannot become his heir by the predecease of Wellington. It is false to assume that, if Wellington had survived the testator by even one day, Rufus could not share in this property because the event that entitled Rufus to take was Wellington’s predecease of the last surviving child of the testator. This share of the residue of the Wagar estate does not pass as ancestral property through Wellington but as a direct gift to those designated in the will, i.e., the legal heirs of Wellington to be determined as of the date of the death of Wagar’s last surviving child. Rufus was a legal heir of Wellington as of that date. We have also considered the testimony returned in the separate record under authority of 3 Comp. Laws 1929, § 14159 (Stat. Ann. § 27.853). Like the trial judge, we consider this testimony immaterial because the language of the will is unambiguous. Wheeler v. Wood, 104 Mich. 414. Further, Wagar must have known that Wellington’s father was Wellington’s legal heir, and yet the ill feeling between Wagar and Wellington’s father, which appellant attempted to show by this testimony, did not prompt Wagar to change his will. See Turner v. Burr, 141 Mich. 106. The decree entered by the circuit judge was proper in the light of the provisions of the will, and it is, therefore, affirmed, with costs to appellee. Chandler, C. J., and North, Starr, Butzel, and Sharpe, JJ., concurred with Bushnell, J.
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Sharpe, J. The facts in this case are not in dispute. It appears that in February, 1934, plaintiff Lyle C. Smith signed a promissory note payable to the Pontiac Citizens Loan & Investment Company, a Michigan corporation; that on November 14, 1936, he was adjudicated a bankrupt; that the indebted ness to the loan company was listed as one of the liabilities; that in November, 1937, plaintiff received Ms discharge in bankruptcy; that on March 7, 1938, defendant corporation began suit in the municipal court for the city of Pontiac against plaintiff herein; that on the return day of the summons, plaintiff entered his appearance through an attorney and set up as his defense to the action begun against him that he had been adjudicated a bankrupt; that on May 20, 1938, the justice of the municipal court of Pontiac entered a judgment against plaintiff herein in the amount of $345.87; that the defendant corporation instituted said suit by one B. F. Plumley, agent; that said B. P. Plumley appeared for the defendant corporation upon the return day of the summons and conducted all the proceedings resulting in the judgment; that in September, 1938, plaintiff’s wages were garnisheed. On October 27, 1938, plaintiff filed the present bill of complaint to have the above judgment set aside and declared of no force and effect by reason of the fact that B. F.' Plumley, the agent of defendant company, was not an attorney at law during any of the above proceedings. Defendant filed an answer and a petition to dismiss plaintiff’s bill of complaint upon the grounds that plaintiff had an adequate remedy at law and that the bill of complaint failed to state a cause of action cognizable by a court of chancery. The trial judge denied the motion and after a hearing entered a decree voiding the municipal court judgment. Defendant company appeals and contends that the judgment rendered in the municipal court was not void by reason of the fact that the defendant company had appeared and prosecuted the cause therein by B. P. Plumley, its assistant secretary, director and manager. The sole question involved in this case is whether or not the court of chancery has the power to annul the judgment taken in the justice court. In deciding this issue we have in mind that the corporation in the justice court was prosecuting its own claim. It is a general principle of law that: “A judgment in a court of law will not be set aside by a court of equity unless it is so manifestly wrong that it is against good conscience. Cleveland Iron Mining Co. v. Husby, 72 Mich. 61. ,In order to set aside a judgment of law in equity, there must be ignorance of the defense when the judgment was rendered, diligence on the part of complainant, and the fact that adequate relief cannot be had at law. Taylor v. Sutton, 15 Ga. 103 (60 Am. Dec. 682). “A court will not set aside a judgment because it was founded on a fraudulent instrument, perjured evidence, or for any matter if these questions were actually presented or considered in the case which resulted in the judgment assailed.” Bassett v. Trinity Building Co., 254 Mich. 207. In the case at bar, Mr. Smith was represented in the justice court by an attorney whose duty it was to raise such objections to the action as were lawful. Among the objections that could have been raised was the fact that the corporation was not represented by a duly licensed attorney. It is also to be noted that Mr. Smith had a remedy by appealing to the circuit court. He chose to accept neither of these courses. In Graure v. Detroit Lumber Co., 260 Mich. 47, we said: “It is settled law in this jurisdiction that a court of equity may not entertain a bill to vacate a judgment at law on the ground that false testimony was given in the trial. * * * “The court of equity will not retry a suit at law in which a judgment has been rendered and time for review by appeal has elapsed.” In Blehm v. Hanzek, 272 Mich. 541, we said: “But it is an established rule, with few exceptions, that equity will not take jurisdiction where a party has an adequate remedy at law. Although there are decisions to the contrary, it is the weight of authority that equity will not set aside a void judgment where the party has an adequate remedy at law or has failed to exhaust his legal remedy.” In the case at bar,'Mr. Smith had a legal remedy but failed to use it. The nonuse of this remedy precludes relief in a court of equity. The decree of the circuit court is reversed, with costs to defendant. Bushnell, C. J., and Chandler, North, McAllister, Wiest, and Butzel, JJ., concurred. The late Justice Potter took no part in this decision.
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Butzel, J. Plaintiff is the widow and sole dependent of Fred Simpson, deceased, who died as the result of an accidental injury sustained from a fall on February 28, 1939. At the time of the injury he was 77 years of age and was employed as a clerk in defendant Lee & Cady’s wholesale house in Bay City, Michigan. He left his home at about 7 o’clock in the morning on the day of the accident and traveled by bns to tbe place of bis employment. His bus stopped on the side of tbe street opposite an entrance to defendant’s store and be was helped across tbe street by a fellow employee, wbo was also a passenger on tbe same bus, and a porter of defendant wbo bad seen Mr. Simpson get off. Apparently tbe fellow employees proffered their belp because tbe streets and sidewalks were very slippery. Defendant’s building was constructed flush with tbe public sidewalk, and there was a single step about 10 inches high leading from tbe public sidewalk up to tbe door in tbe entranceway. Tbe crossing of tbe street was made safely with the belp of tbe two kindly employees; we are told that when they reached tbe entrance, Mr. Simpson insisted on proceeding alone. He was within a few inches of tbe entrance when he extended bis right arm to take bold of tbe door handle. Tbe reach did not result in a grasp, for at that moment bis right foot, yet on tbe sidewalk, slipped, and be fell to the sidewalk. Tbe department found that in reaching for tbe door bis band extended across tbe property line of defendant’s premises. An award was granted on tbe ground that tbe injury took place while tbe deceased was “in tbe immediate vicinity of, and in tbe immediate act of entering upon bis employment by tbe defendant, ’ ’ and that, therefore, tbe hazard was borne by tbe employment. It is conceded that deceased’s travel to and from tbe place where his duties were to be performed was not a part of tbe employment (Dent v. Ford Motor Co., 275 Mich. 39; Voehl v. Indemnity Insurance Company of North America, 288 U. S. 162 [53 Sup. Ct. 380, 87 A. L. R. 245]; Furino v. City of Lansing, 293 Mich. 211), and that the instant case is not within tbe exception where tbe hazards of travel are incident to, or causally connected with, the activities encompassed hy the employment (Morse v. Railroad Co., 251 Mich. 309; Bisdom v. Kerbrat, 251 Mich. 316; Konopka v. Jackson County Road Commission, 270 Mich. 174 [97 A. L. R. 552]; Shane v. Alexander, 277 Mich. 85). Plaintiff seeks to support the award on the ground that, the accident had its origin in a risk connected with the employment. It is claimed that the employee fell because of “the combination of a slippery condition and the effort to enter the doorway which facts are inseparable and as one, whereby the act of entering not only was a causative danger different than that of a pedestrian but as well necessarily relates the accident to the employment.” The argument is too frail a reed to support the award. The compensation law is to be construed liberally to provide indemnity for accidents peculiarly incidental to employment, but it was not intended to be health, accident and old age insurance and spread general protection over risks common to all and not arising out of and in the course of employment. The deceased was not by reason of his employment subjected to a peril of the street different in kind from that of any other pedestrian; his work had not yet begun within the meaning of the compensation act. Hopkins v. Michigan Sugar Co., 184 Mich. 87 (L. R. A. 1916A, 310); Hills v. Blair, 182 Mich. 20 (7 N. C. C. A. 409); Stocker v. Southfield Co., 244 Mich. 13; Reed v. Bliss & Van Auken Lumber Co., 225 Mich. 164; Geibig v. Ann Arbor Asphalt Construction Co., 238 Mich. 560; Ryan v. City of Port Huron, 234 Mich. 648. Nor does the fact that an arm was stretched over the property line of the employer’s premises suffice to establish the causal delation. In Hills v. Blair, supra, it was .said that one of the tests sometimes applied to determine the relation between the accident and the employment is whether the workman is still on the premises of his employer. It was said there that “This, while often a helpful consideration, is by no means conclusive.” Cf. Babl v. Railway Co., 272 Mich. 184. In this situation a precise or comprehensive definition will not serve us well; we shall leave the problem to be worked out by the process of exclusion and inclusion in particular cases rather than by applying “a fixed standard of measurement” (Grieb v. Hammerle, 222 N. Y. 382 [118 N. E. 805, 7 A. L. R. 1065]; John Stewart & Son v. Longhurst, 1917 A. C. 249 [86 L. J. K. B. N. S. 729, 116 L. T. N. S. 763, 10 B. W. C. C. 266, Ann. Cas. 1917 D, 196]). In the case before us, the cause or source of the mishap had no proper connection with the employment so as to come within the aegis of the compensation law. Hopkins v. Michigan Sugar Co., supra. The award is vacated. Costs to defendant. Bushnell, C. J., and Sharpe, Chandler, North, McAllister, and Wiest, JJ., concurred. The late Justice Potter took no part in this decision.
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North, J. General Motors Corporation, a Delaware corporation, duly authorized to do business in Michigan, is engaged in the business of manufacturing and selling automobiles and parts in Lansing, Michigan. In its business the plaintiff corporation employs both men and women in various branches of its work, maintaining a wage scale, varying and graduated for both women and men, and said to be based upon the skill, experience, capacity, and ability of its employees. In 1931, the legislature of Michigan enacted Act No. 328, § 556, Pub. Acts 1931 (Comp. Laws Supp. 1940, § 17115-556, Stat. Ann. § 28.824), which was a reenactment of Act No. 239, Pub. Acts 1919 (2 Comp. Laws 1929, §§ 8497, 8498). This act creates a misdemeanor punishable by fine or imprisonment or both; and the pertinent portion reads: “Sec. 556. Any employer of labor in this State, employing”both males and females in the manufacture or production of any article, who shall discriminate in any way in the payment of wages as between sexes or who shall pay any female engaged in the manufacture or production of any article of like value, workmanship and production a less wage, by time or piece work, than is being paid to males similarly employed in such manufacture, production or in any employment formerly performed by males, shall be guilty of a misdemeanor: Provided, however, That no female shall be given any task, disproportionate to her strength, nor shall she be employed in any place detrimental to her morals, her health or her potential capacity for motherhood.” In June or July, 1937, a factory inspector employed by the department of labor and industry called upon the superintendent of the paint shop of the Oldsmobile Motor Works Division of General Motors Corporation in Lansing and demanded that' the superintendent pay women employees the difference between what had been paid to men employed in the paint shop and that paid women, giving him until noon to make the payments and threatening that failure to pay would mean action, presumably under the above section 556 of Act No. 328. This was reported by the superintendent to his superior. On March 8, 1938, the attorney general of Michigan in an opinion had upheld the act as constitutional. April 7, 1938, a suit was started against plaintiff in the instant case by a woman employee, Florence St. John, who sued for the unpaid portion of back wages both in her own right and as assignee of other women employees. This suit was removed by defendant to the Federal court and is still pending. September 27, 1939, the plaintiff corporation filed its bill herein for an injunction against enforce ment of the quoted act, asserting it is unconstitutional as being in violation of article 2, § 16, of the Michigan Constitution, and section 1 of the fourteenth amendment of the United States Constitution, arbitrary, uncertain, confiscatory, and discriminatory. A declaratory decree is also sought. The attorney general, the prosecuting attorney, and the commissioners of the department of labor and industry for the State of Michigan are made defendants. These defendants appeared and made a motion to dismiss the bill of complaint. Among the grounds urged for dismissal are the following: That the bill of complaint states no cause of action against defendants; that it seeks to restrain prosecution of criminal suits; that it seeks to restrain defendant public officials from performing their official duties; that complainant has a complete and adequate remedy at law; and that the court of equity is without jurisdiction. Upon hearing in the circuit court the motion to dismiss was granted and plaintiff has appealed. In this record there is no affirmative counter-showing as against the allegations contained in plaintiff’s bill of complaint. It is elementary that on a motion to dismiss all facts well pleaded must be accepted as true. In the bill it is alleged that plaintiff fears and believes and has good reason to fear and believe that the defendants will attempt to compel plaintiff to comply with the pertinent provisions of Act No. 328, Pub. Acts 1931, and that defendants will attempt to recover from plaintiff fines, penalties and forfeitures unless defendants are enjoined from so doing; and further: “That any effort to enforce said section 556 or to collect fines, penalties, and forfeitures in accordance with the provisions of said section * * * would result in a multiplicity of suits and actions against the plaintiff, and would cause great and irreparable damage to the plaintiff in an amount of more than $1,000.” A fair consideration of the bill of complaint discloses that plaintiff is confronted with numerous threatened suits, some civil and some criminal. As to threatened civil suits it is obvious that with the exception of plaintiff herein the parties who might be interested in such suits are not before the court in the instant case; and since it is not essential to decision herein, we disregard plaintiff’s claim of threatened multiplicity of civil suits. But plaintiff has alleged in its bill, and it must be accepted, as true on this motion to dismiss, that it is threatened by defendants with criminal prosecutions which will result in great and irreparable damage; and the question at once arises whether this gives the court in equity jurisdiction. We think it does, and we have so held in former cases. Michigan Salt Works v. Baird, 173 Mich. 655; Lewis v. Michigan State Board of Dentistry, 277 Mich. 334. See, also, Ex parte Young, 209 U. S. 123 (28 Sup. Ct. 441, 13 L. R. A. [N. S.] 932, 14 Ann. Cas. 764). Since the trial court had jurisdiction on the ground of granting injunctive relief against threatened criminal prosecutions of such scope and in such numbers as would constitute great and irreparable injury, it also had jurisdiction to pass upon the major question, i. e., the constitutionality of the quoted statute. If it is constitutional the circuit judge’s dismissal of plaintiff’s bill of complaint should be affirmed, but if it is unconstitutional his ruling should be reversed. As above noted, the plaintiff and appellant contends that the quoted statute is unconstitutional for the following reasons: 1. It is uncertain. 2. It is arbitrary. 3. It is confiscatory. 4. It is discriminatory. 5. It denies equal protection of the laws. The chief contention on which the claim that the statute is unconstitutional is based is that it is so uncertain and ambiguous that its attempted enforcement would be a denial of due process of law. Objection is made specifically to the use of the words “similarly” and “formerly” in the statute which we requote in part: “Any employer # # * who shall pay any female engaged in the manufacture or production of any article of like value, workmanship and production a less wage, by time or piece work, than is being paid to males similarly employed in such manufacture, production, or in any employment formerly performed by males, shall be guilty of a misdemeanor.” A reading of the statute is convincing that it sets out only one offense and that the words “or who shall pay any female engaged in the manufacture or production of any article,” et cetera, are only definitive of what constitutes discrimination in the payment of wages. The first objection is that the phrase “males similarly employed” is indefinite. We do not think so. The word “similarly” has a definite meaning and as used in this statute means substantially alike. This phrase simply means that the employer shall not, because of her sex only, pay a woman employee less than it pays a man employee for doing work of substantially the same character, quality and quantity. The standard so set is clear and unambiguous. The second objection in support of appellant’s claim of uncertainty relates to the words “or in any employment formerly performed by males.” There is no allegation in the bill of complaint that plaintiff or any other employer is at present employing only women in work formerly performed by men. On the contrary in its bill of complaint plaintiff alleges that at present and for more than 10 years last past it has employed both men and women in its factory. As to plaintiff and others like situated, use of the quoted phrase does not inject any uncertainty into the statute. It is a well-established rule of constitutional law that one who would strike down a statute as unconstitutional “must bring himself, by proper averments and showing, within the class as to whom the act thus attacked is unconstitutional. ’ ’ Southern Railway Co. v. King, 217 U. S. 524, 534 (30 Sup. Ct. 594). See, also, 11 Am. Jur. p. 748, § 111; Premier-Pabst Co. v. Grosscup, 298 U. S. 226 (56 Sup. Ct. 754); James Stewart & Co. v. Rivara, 274 U. S. 614 (47 Sup. Ct. 718); Gorieb v. Fox, 274 U. S. 603 (47 Sup. Ct. 675, 53 A. L. R. 1210). The claim that the statute is arbitrary and confiscatory is unsupported either by a consideration of the effect of the statute or of the allegations in the bill of complaint. There is nothing arbitrary about the statute on its face and there is no allegation of a state of facts which would make it arbitrary. The statute seeks to prevent the exploitation of women workers and adopts a reasonable means to do so. Nor is the statute confiscatory. There is no allegation in the bill of complaint that paying women workers the same wages that men receive for the same service will work confiscation of plaintiff’s property; nor are any facts alleged which might lead to that conclusion. Plaintiff further claims that the statute is discriminatory and denies the equal protection of the laws, first, as to female employees, and, second, as to employers. As to any discrimination between or against female employees, plaintiff not being a member of tbe class allegedly injured cannot be heard to complain. Southern Railway Co. v. King, supra; Heald v. District of Columbia, 259 U. S. 114 (42 Sup. Ct. 434); Erie R. Co. v. Williams, 233 U. S. 685 (34 Sup. Ct. 761, 51 L. R. A. [N. S.] 1097). Plaintiff, however, further contends that there is a denial of equal protection of the laws and discrimination in making the law applicable only to employers engaged “in the manufacture or production of any article,” and not to mercantile employment, et cetera. The evil soug’ht to be eradicated is discrimination against women, and plaintiff cannot complain merely because the legislature attempted to remedy only a part of the problem rather than the entire situation. Plaintiff’s complaint on this' score is, in reality, that the statute is void because it is not broad enough. Rosenthal v. New York, 226 U. S. 260 (33 Sup. Ct. 27, Ann. Cas. 1914 B, 71). The legislature has the right to remedy the evil to the extent it deems necessary and advisable and it is not restricted to -a complete remedy or none. West Coast Hotel Co. v. Parrish, 300 U. S. 379 (57 Sup. Ct. 578, 108 A. L. R. 1330). The legislature need not cover the whole field but may within reason select one particular portion in which to remedy evils. It is a matter of common knowledge that there are great numbers of women employed in manufacturing and that many employers pay their women employees less than they pay their men employees for identical work. The classification made both as to employees and employers in seeking to remedy this situation is not so unreasonable as to be discriminatory or such as effects a denial of equal protection of the laws. Carmichael v. Southern Coal & Coke Co., 301 U. S. 495, 515 (57 Sup. Ct. 868, 109 A. L. R. 1327). Plaintiff alleges that employers in the same locality may be required to pay different wages to women employees for the same work while new competitors who have never employed males may not be subject to the law at all. As to this hypothetical objection it may be noted the differences, if any, will not be created by a discrimination or inequality in the law, but by the fact that the law operating in different circumstances in a uniform manner will necessarily give different results. The law applies a uniform standard to all employers subject to its provisions. The law does not endeavor to set the same wages for all women employees, but rather it seeks to provide the same wage conditions for women as for men, and necessarily the differences in pay of men will be reflected in the wage scale for women. As to new competitors who may employ only women, whether there will or can ever be such employers is purely conjectural. There is no 'allegation that there are such employers. The court will not go out of its way to test the operation of a law under every conceivable set of circumstances. The court can only determine the validity of an act in the light of the facts before it. Constitutional questions are not to be dealt with in "the abstract. Bandini Petroleum Co. v. Superior Court, 284 U. S. 8 (52 Sup. Ct. 103, 78 A. L. R. 826); 11 Am. Jur. p. 753, § 111, and cases cited in note 18. On the factual background presented by this record the quoted statute must be held constitutional as against any objection urged by appellant. Since the statutory provision is valid the bill of complaint does not state a cause of action entitling appellant to any equitable relief; and, therefore, the decretal order of tbe circuit judge dismissing the bill of complaint is affirmed. Tbe controversy presented a question of public moment and no costs are awarded. Btjshnell, C. J., and Sharpe, Chandler, McAllister, Wiest, and Butzel, JJ., concurred. Tbe late Justice Potter took no part in tbis decision.
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Btjshnell, O. J. Plaintiff obtained a default judgment against the principal defendants in the sum of $988.25. This judgment was for moneys expended by him because of injuries to his wife after she was struck by an automobile claimed to be owned by one of the principal defendants and driven by the other. Plaintiff then secured a writ of garnishment against defendant insurance company, who filed a disclosure denying liability. Plaintiff appeals from a judgment entered upon the jury’s verdict of no cause of action. Appellant claims that the examination of witnesses by defendants ’ counsel and his argument were of such a prejudicial nature as to be reflected in a verdict which is contrary to the evidence. He also contends that the action of the court in requiring the jury to give further consideration to the case after the foreman had announced that agreement was impossible resulted in a verdict which is contrary to the evidence. The testimony produced at the trial was directed to the single issue of whether Mrs. Gordon was struck by a Willys-Knight automobile, which was insured by the garnishee defendant, or an Oldsmobile, which was not covered by the policy. The case was submitted to the jury at 4:55 p.m. After supper the foreman informed the court at 7:15 p.m. that the members of the jury were unable to agree. The court explained the importance of arriving at a just verdict and the need for further deliberation and said that, because of the warm weather, he would not keep the jury in but would ask them to return in the morning to see if a verdict could be reached. At 11:30' a.m. the next day the jury again reported their inability to agree and the court inquired into the possibility of agreement. The foreman informed the court that the jury then stood four and eight, having stood five and seven the opposite way the night before. After some discussion the court said: “Well, don’t you think you would be willing to do this.: Gro in and argue this over for a few minutes more, and at dinner time the officer will take you to dinner, come back after dinner and vote once more; if you can’t get together then I will discharge you. Don’t you think there might be something to that? If you knew how hard it is for me to discharge the jury without a decision, I think you would understand why I suggest that. Now it may be it won’t do any good, but you are here anyway, you are here for the half day, and I won’t keep you after dinner; if you will go back then and discuss it 15 minutes and vote on it then, knowing the importance of getting together. It is only 25 minutes to 12, and gentlemen, listen to each other’s arguments with an open mind, and willing to be convinced, if you can do it conscientiously, and I wish you would do that, I will appreciate it, and then I will dispose of it. All right,! the jury may retire. ’ ’ The jury retired, went to lunch, and at 1:20 p.m. returned a .verdict of no cause of action. Appellant places emphasis upon the following statement of the court: “Now I never like to discharge a jury in important matters like this, that is important to the county and important to the parties in the case.” There is nothing prejudicial about this statement in the setting in which it is found. Appellant does not cite any authority in support of the argument that the jury should have been discharged when it first announced its inability to agree. This question was recently raised in Zeitz v. Mara, 290 Mich. 161. It is there said: “Examination of the authorities shows that, when it is claimed that a jury has been coerced into returning a verdict, all of the facts and circumstances must be considered as well as the particular language used by the trial judge.” The verdict of the jury was not coerced by either the court’s statements or its actions. The claimed prejudicial examination of witnesses and argument by defendants ’ counsel is given in detail. Little will be gained by a repetition of those portions of the record, it being sufficient to say that they have been carefully examined. In passing on plaintiff’s motion for new trial, the court said: “The issue in this case was simple and clear: Was defendant Samson driving his Willys-Knight car at • the time of the accident as claimed by him; or was he driving an Oldsmobile, as claimed by garnishee defendant? There was testimony both ways; and the sole question submitted to the jury was as to which car Mr. Samson was driving. ‘ ‘ 1. The verdict is not contrary to the great weight of the evidence. “2. Counsel on both sides were very vigorous and enthusiastic in their arguments; the court is unable to say which argument was the more vigorous. However, no error results from the argument.” Our observation in Re Dellow’s Estate, 290 Mich. 167, at page 170, need not be repeated, having been so recently published. It is especially applicable to the instant case. See, also, Cook v. Vineyard, 291 Mich. 375, 383; Ehlers v. Barbeau, 291 Mich. 528, at page 533. The so-called “preliminary observations” on government in the brief of the attorney for plaintiff are foreign to any issue in the case and are of such a derogatory nature that this court cannot permit them to remain as a part of its records. They are hereby expunged. The judgment is affirmed, with costs to appellee. Sharpe, Chandler, North, McAllister, Wiest, and Btttzel, JJ., concurred. The late Justice Potter took no part in this decision.
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Starr, J. In July, 1938, the United Automobile Insurance Company began the present chancery action to cancel an automobile insurance policy issued to defendants on April 2, 1938, on the ground that defendants had obtained such policy by fraud and misrepresentation. In February, 1939, the United company, with the approval of the State- commissioner of insurance, sold its property and assets to the Hawkeye Casualty Company, and an order was subsequently entered substituting the Hawkeye company as plaintiff in the present case. For sake of brevity we will refer to both the United company and the Hawkeye company as plaintiff. The case was tried in October, 1941, and on February 25, 1942, the 'trial court entered decree denying plaintiff the relief sought and dismissing its bill of complaint. Plaintiff appeals from such decree. This being a chancery case, we consider the same de novo. There is no serious conflict in the testimony. For a proper consideration of the questions of law presented on this appeal, the facts and circumstances relating to the issuance of the insurance policy in question must be narrated in some detail. Defendant Holcomb and his wife were residents of Detroit. Plaintiff (United company) had its principal office in Grand Rapids. For several years prior to April 2, 1938, the Citizens Mutual Automobile Insurance Company of Howell, Michigan, had issued and carried automobile insurance policies for defendants. One Morton Hambly, an insurance solicitor for the Dorr W. Frisbee Agency of Detroit, had from year to year handled the renewal of defendants’ policies in the Citizens Mutual company, the last renewal policy being issued February 11, 1938. During the preceding two years defendants had been involved in several automobile accidents resulting in claims for loss under their insurance policies. In the latter part of February or in March, 1938, Dr. Holcomb had another accident, and Solicitor Hambly was instructed to, and did, “pick up” the defendants’ policy for cancellation. Hambly testified: “Q. And then what happened after that? “A. In the latter part of February, or the first part of March, he (Dr. Holcomb) had another accident out near Drayton Plains. * * * “And Mr. Woodham (vice-president of the Citizens Mutual company) considered that it would be advisable that we pick up the policy and cancel same, which I did. “Q. Was the policy cancelled? “A. I picked it up and cancelled it the latter part of March (1938). * * * “Q. When you picked up Dr. Holcomb’s policy with the Citizens Mutual, did you tell him why they were cancelling the policy? “A. Well, we talked about it, and I said they didn’t want to stay in the risk any more, and the only thing we could do was to pick up the policy. “Q. Well, did you tell him why they didn’t want to stay on the risk? * * * “A. I told him that the company did not want to stay in the risk any longer, after the accident out in Drayton Plains, and the only thing I could do was to pick up the policy, or else they would mail him a registered cancellation notice. * * * “Q. And the policy with the Citizens Mutual Automobile Insurance Company was actually can-celled? “A. Yes, it was actually cancelled. “Q. Because of .the frequency of accidents? “A. Yes, sir.” In March, 1938, plaintiff appointed the Frisbee insurance agency as its agent with authority to countersign and issue its automobile policies, and it furnished such agency with policy forms. The formal agency contract between plaintiff and -the Frisbee agency was not signed until April 9, 1938, but plaintiff admits that the Frisbee agency was authorized to act as its agent and to countersign and issue its policies, including its policy to defendants, prior to that date. On April 2, 1938, the Frisbee agency countersigned and issued to defendants the insurance policy of plaintiff company involved in this suit. Between the 10th and 15th of April, 1938, Solicitor Hambly of the Frisbee agency delivered such policy to defendants who accepted the same and paid the premium therefor to the agency. Defendants did not make written application for such policy and were not required to sign either an application or the policy. Solicitor Hambly testified: “Q. Well, after Dr. Holcomb’s policy in the Citizens Mutual was cancelled, what if anything did you do about placing his insurance ? “A. I talked to Mr. Frisbee, Dorr Frisbee, regarding same, and we kind of felt that probably he just had a streak of bad luck, and that we would place same with the Builders & Manufacturers of Chicago. # * * “Q. Well, was the policy on Dr. Holcomb’s automobile written with the Builders & Manufacturers Insurance Company? “A. No. At that time there was a question of the insolvency of the Builders & Manufacturers Insurance Company that came up, and the policy was never written in the Builders & Manufacturers. ft ft ft “Q. Well, was a policy on Dr. Holcomb’s LaSalle automobile written with another automobile company? “A. Yes, in the early part of April, 1938, with the United Automobile Insurance Company (plaintiff) of Grand Rapids. * * * “Q. Very'well. Was a policy of automobile insurance, covering Dr. Holcomb’s LaSalle automobile, actually written? “A. I received the policy and delivered it (to defendants) in April, to the best of my knowledge. “I imagine it would be around between the 10th and 15th of the month of April, 1938. * * * “ Q. * * * Did you look at the policy and read it over before you delivered it? “A. No, I did not. * * * “Q. Did you ever ask Dr. Holcomb to sign an application to the United (plaintiff) ? “A. No. “Q. Did you read him the policy? “A. No. * * “Q. And did you inform Mr. Frisbee, — or, did you discuss the cancellation of the policy Dr. Holcomb had in the Citizens Mutual ? “A. I did. “Q. What conversation did you have with him, other than that, relative to Dr. Holcomb’s new policy? “A. We discussed. the cancellation of it, and kind of felt that Dr. Holcomb has a good practice, and he seems to be a very responsible doctor, and it may have been just a question of a little hard luck or the bad breaks of about two or three in a row that_ happened, and we considered he was still a good risk; nothing more than that.” Mr. Frisbee of the Frisbee agency testified, in part: “Q. And did your agency write a policy with the United (plaintiff), for Dr. Holcomb and his wife? “A. We did. * * • “ Q. Well, at the time that this policy in question was written, were you familiar with the fact that on the face of the policy there was a schedule of warranties ? “A. Well, that was so long ago that I can’t be sure, but I assume that I at least looked at the United policy before we issued them. There was a great state of confusion here at the time, due to the failure of one of the companies which we had previously represented. * * * “Q. The reason you took on the United, as agent for it, was because the Builders & Manufacturers (Casualty Co.) were going out of business, is that right? “A. That is right. * * * “Q. Did you know that Dr. Holcomb had been cancelled out of the Citizens Mutual because of the frequency of accidents? “A. I knew that he had been or was to be can-celled because of an unsatisfactory experience.” On May 14, 1938, the Frisbee agency wrote plaintiff reporting the issuance of five policies, including the policy issued on April 2, 1938, to defendants. Frisbee testified that the delay in reporting the issuance of such policies was due to confusion in the Frisbee agency as a result of the failure of the Builders & Manufacturers Casualty Company, which it represented. Plaintiff’s vice-president testified that the Frisbee agency’s letter was received on May 17th and that within a few days thereafter plaintiff verified information previously furnished by an underwriters service association that the Citizens Mutual company had cancelled defendants’ policy because of their record of accidents and losses. On June 4, 1938, plaintiff’s attorneys wrote defendants stating, in effect, that defendants had obtained the policy in question by fraud and in violation of a warranty provision thereof by failing to disclose that the Citizens Mutual company had can-celled its policy. Plaintiff’s attorneys inclosed with their letter of June 4th check payable to defendants for $26, that being the full amount of the premium paid for the policy. On June 23, 1938, Dr. Holcomb wrote plaintiff as follows: “I am returning the check for $26 dated June 4th, which you sent to me, together with a letter from your attorneys, claiming policy No. 8205-M, issued by your company, is void. “The policy is not void. If you wish to cancel it, it is your privilege to do so, but until you do cancel it, the policy is in full force and effect. “Morton D. Hambly, who delivered the policy to me, and Dorr W. Frisbee, your agents, were acquainted with all of the facts in connection with the issuance of this policy and all that is necessary for you to do to get these facts is to ask them. They knew my policy with the Citizens Mutual Insurance Company was about to be cancelled and it was at their suggestion that I took out this policy in your company. “I never have made any representations to your company, or its agents, either verbally or in writing, to the effect that any company had cancelled or declined to issue any insurance for me, nor have I made any other representations to you, or your agents, either verbally or in writing, about any fact or circumstance concerning this insurance.” On about June 9, 1938, defendants sent plaintiff written report of an automobile accident by Dr. Holcomb on May 13, 1938. On July 9, 1938, plaintiff began the present suit to cancel defendants’ policy as of the date of its issuance. The questions of law presented on this appeal arise under the following provisions of plaintiff’s policy, issued to defendants on April 2, 1938: ‘ “WABBANTIES * * * “9. No company has cancelled or declined to issue any automobile insurance for the named assured during the past three years except as follows (left blank) * * * “CONDITIONS, LIMITATIONS, AND AGREEMENTS * * * “Q — Misrepresentation and Fraud “This entire policy shall be void if the assured has concealed or misrepresented any material fact or 'circumstance concerning this insurance or the subject thereof; or in case of any fraud, attempted fraud, or false swearing by the assured touching any matters relating to this insurance or the subject thereof, whether before or after a loss or accident. * * * “Y — Statutory Provisions * * * “This policy is issued and accepted subject to the conditions, limitations, agreements and warranties set forth herein or indorsed hereon, and upon acceptance of this policy the assured agrees that its terms embody all agreements then existing between himself and the company or any of its agents relating to the insurance described herein, and no officer, agent or other representative of the company shall have power to waive any of the terms of this policy unless such waiver be written upon or attached hereto, and signed by a duly authorized agent of this company; nor shall the knowledge possessed by any agent or by any other person, be held to effect a waiver or change in any part of this contract. This policy shall be void in event of violation by the assured of any agreement, condition or breach of any warranty contained herein or in any rider now or hereafter attached hereto.” The policy also contained the following provision which appeared immediately preceding the warranties : ‘ ‘ (Portions of form not filled in have been omitted) ’ ’ The blank space appearing in the ninth warranty above quoted was not filled in. Certain of the blank spaces appearing in the fifth and eighth warranties were not filled in. Plaintiff contends that the policy in question was void from its inception because of defendants’ fraud in obtaining its issuance. Plaintiff also contends that defendants read, or are presumed to have read, the policy, including the ninth warranty above quoted; that their acceptance and retention of the policy without disclosure of the previous cancellation by the Citizens Mutual company constituted a negative answer in such warranty; and that such negative answer amounted to a false warranty which voided the policy under provisions Q and Y above quoted. Plaintiff bases its contentions on the erroneous premise that the Frisbee agency’s knowledge of defendants ’ accident record and of the Citizens Mutual company’s cancellation of its policy was not plaintiff’s knowledge and, therefore, it was not estopped from later claiming that its policy was void from the time of issue. In its brief, but not in its bill of complaint, plaintiff charges the Frisbee agency and Solicitor Hambly with aiding and abetting defendants in the perpetration of the alleged fraud. Such charge against the Frisbee agency and Solicitor Hambly cannot, in view of the testimony presented, be given serious consideration. Defendants did not make or sign written application for such policy. The policy itself contained no space nor provision requiring their signature. Plaintiff admits that the Frisbee agency had authority to countersign and issue the policy. It may reasonably be presumed that, when Solicitor Hambly picked up (in March, 1938) defendants’ Citizens Mutual policy for cancellation, he and Dr. Holcomb discussed the matter of obtaining other insurance. This is rather affirmatively shown by the fact that in April, 1938, Prisbee, after talking with Hambly and without interviewing Dr. Holcomb, issued the policy in question to defendants. There is no testimony indicating that defendants made any misrepresentations for the purpose of inducing plaintiff or the Prisbee agency to issue such policy. There could have been no misrepresentations by defendants to the Prisbee agency as to the cancellation of the Citizens Mutual policy, because both the Frisbee agency and its solicitor, Hambly, had full information regarding such cancellation and the reason therefor. We agree with the trial judge who stated in his opinion: “While the plaintiff has alleged fraud, they have failed to sustain the burden. There nowhere appears any evidence upon which to hang any fraudulent conduct on the part of the defendants. So far as they are concerned, it only appears that they relied upon the Prisbee agency to issue another policy in place of the one which has been cancelled, and when this policy was delivered to them, they paid the premium thereon. They dealt with plaintiff’s agent, who knew all that defendants knew. “The Prisbee agency was a general or recording agent of the plaintiff, with full authority to .issue and countersign its policies. So far as this plaintiff here is concerned, nothing that defendant said or knowledge that he had induced the plaintiff to issue the policy. The most they can claim is that failure to answer (the blank space in the ninth warranty) was an answer in the negative; * * * but this did not influence the plaintiff.” Having made no. written application nor any misrepresentations to induce the Prisbee agency to issue the policy, defendants were justified in accepting it as countersigned and delivered to them and in assuming that the policy was in form satisfactory to plaintiff. It was certainly not incumbent upon defendants to go to or communicate with plaintiff company’s home office to ascertain if the Frisbee agency had authority to countersign and issue the policy in the form in which it was delivered to them. Furthermore, under the above-quoted provision of the policy that “portions of form not filled in have been omitted,” defendants were entitled to assume that the blank spaces in warranties 5, 8, and 9 were omitted. The burden was upon plaintiff, who claimed fraud on the part of defendants in obtaining the issuance of such policy, to prove such fraud by a preponderance of the evidence. Jacobs v. Queen Insurance Company of America, 195 Mich. 18; Alma State Savings Bank v. Springfield Fire & Marine Ins. Co., 268 Mich. 631; Barrett v. Connecticut Fire Ins. Co., 195 Mich. 209. We find no evidence indicating misrepresentation or fraud by defendants in obtaining the policy. The Frisbee agency’s knowledge of defendants’ accident record and of the previous cancellation by the Citizens Mutual company must be considered as the knowledge of plaintiff company. In 29 Am.. Jur. p. 612, § 808, it is stated: “The general rule of agency that the principal is chargeable with, and is bound by, the knowledge of or notice to his agent received while the agent is acting within the scope of his authority, and which is in reference to a matter over which his authority extends, is fully applicable to agents of insurance companies. The general rule of insurance law is that the knowledge of, or notice to, an insurance agent as to a matter within the scope of his authority, and which is acquired while the agent is acting within the scope of his authority, is chargeable to the insurer. Where such knowledge of an insurance agent relates to a material misrepresentation or breach of warranty or condition which would otherwise render the policy unenforceable at its inception, the insurer issuing the policy will not be permitted to taire advantage of such breach, or cause of forfeiture.” As plaintiff did not allege or prove fraud on the part of the Frisbee agency, the knowledge of the agency was imputable to plaintiff. Rorick v. State Mutual Rodded Fire Insurance Co., 263 Mich. 169; Blake v. Farmers’ Mutual Lightning Protected Fire Insurance Company of Michigan, 194 Mich. 589; Jacobs v. Queen Insurance Co., 183 Mich. 512; Improved-Match Company v. Michigan Mutual Fire Insurance Co., 122 Mich. 256; Michigan Shingle Company v. State Investment & Insurance Company of San Francisco, 94 Mich. 389 (22 L. R. A. 319) ; Russell v. Detroit Mutual Fire Insurance Co., 80 Mich. 407; 26 C. J. p. 296, § 368. Plaintiff, having imputed knowledge of the facts and circumstances relating to the cancellation of defendants ’ policy by the Citizens Mutual company, is estopped from later claiming that its policy was void in its inception because of the failure to disclose such cancellation in the blank space in the ninth warranty. Coverdill v. Northern Insurance Company of New York, 243 Mich. 395; Wilds v. Fidelity & Deposit Co., 239 Mich. 396; Crossman v. American Insurance Company of Newark, N. J., 198 Mich. 304 (L. R. A. 1918 A, 390); Blake v. Farmers’ Mutual Lightning Protected Fire Insurance Company of Michigan, supra; Improved-Match Company v. Michigan Mutual Fire Insurance Co., supra; Beebe v. Ohio Farmers’ Insurance Company, 93 Mich. 514 (18 L. R. A. 481, 32 Am. St. Rep. 519). In 3 Joyce on the Law of Insurance (2d Ed.), p. 3243, § 1973, it is stated: “Assurer may also he estopped or there may be a waiver by reason of its agent’s knowledge or acts, notwithstanding provisions in the policy as to the only manner in which conditions may be waived by the agent.” “The power of general agents of insurance companies to waive policy conditions and causes of forfeiture is to be determined by the power they are held out by the companies to the public as possessing, and not by written instruments of appointment of which the public can have no knowledge. General insurance agents having apparent authority to issue contracts of insurance without reference to the home office are empowered, where the insured does not have or cannot be deemed to have notice of any limitations of the power of the agent in such respect, to waive conditions of forfeiture in such policies; and their knowledge is the knowledge of the insurer, notwithstanding any excess of actual authority. An insurance agent who is furnished with blank applications and with policies, duly signed by the company’s officers, and has been authorized to issue policies by simply signing his name as an agent, to collect premiums, and to cancel policies without consulting the home office, is within such rule. ’ ’ 29 Am. Jur. p. 628, § 825. In Richards v. Washington Fire & Marine Ins. Co., 60 Mich. 420, 427, this court said: ‘ ‘Where a local agent has authority to issue policies himself, the applicant for insurance, in the absence of fraud, may generally deal with him as he would with the officers of the insurance company, and rely on his conduct as he could on theirs.” In Suschnick v. Underwriters Casualty Co., 211 Wis. 474, 481 (248 N. W. 477), a situation somewhat similar to that in the instant case was considered. The court there said: “As both Young and Harding are, in law, held to be the agents of the Underwriters Casualty Company, the knowledge which they had as to the cancellation of former policies issued to Suschnick, and the payment of losses thereunder, is, in law, considered to be the knowledge of the Underwriters Casualty Company, and any fact, which breached a condition of the policy issued by the insurer to Suschnick, and which was known to Young or Harding when the policy was issued or the application was made, does not void that policy or defeat a recovery thereon in the event of loss. §209.08 (1), Stats.; Newburg v. United States F. & G. Co., 207 Wis. 344 (241 N. W. 372); Day v. Hustisford Farmers Mutual Ins. Co., 192 Wis. 160 (212 N. W. 301); Olson v. Herman Farmers Mutual Ins. Co., 187 Wis. 15 (203 N. W. 743).” In Coverdill v. Northern Insurance Company of New York, supra, we said, p. 398: “An insurance company which has received the premium of the insured under circumstances leading the insured to believe he is receiving, in consideration of the payment of such premium, a valid contract of insurance, is estopped from afterward repudiating the contract.” Plaintiff cites Taylor v. American Liability Co. (C. C. A.), 48 Fed. (2d) 592, and other cases as authorities for its contention that defendants’ acceptance and retention of the policy, without the blank space in the ninth warranty having been filled in, constituted fraud and a breach of such warranty, and voided the policy. In such cases the applications for insurance contained false statements or misrepresentations which induced the issuance of the policies in question. Such decisions are readily distinguishable from the present case in which defendants made no written application nor misrepresentations inducing the issuance of their policy, and in which plaintiff’s agent had full knowledge of all the facts and circumstances and had authority to countersign and issue the policy. In the case before us there is no proof of fraud by defendants in obtaining the issuance of the policy in question. As the knowledge of the Frisbee agency regarding defendants’ accident record and of the cancellation of the Citizens Mutual company’s policy was imputable to plaintiff, it is therefore estopped from claiming fraud or breach of warranty by defendants. • „ The decree of the trial court is affirmed, with costs to defendants. Chandler, C. J., and Boyles, North, Butzel, Bushnell, and Sharpe, JJ., concurred. Wiest, J., did not sit.
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Butzel, J. Edmund P., Vincent M. and Frank D. Burns, plaintiffs, together with their sisters Estella M. Ambler, Irene Herter, and brother Albert J. Burns, defendants, are the heirs of Edmund Burns, deceased, and as such became the owners of a rectangular parcel of real estate in the city of Detroit, Michigan, consisting of the north 3 feet of lot 42, and all of lots 43 and 44 of block 13 of the subdivision of part of the Meldrum and Beaufait farms. The property is located at the southwest corner of Meldrum and east Lafayette avenues, fronting 136.70 feet on Meldrum avenue and 140 feet on east Lafayette avenue. The lots, as laid out in the subdivision plat, front on Meldrum avenue. There is a two-story brick building at the corner of Meldrum and Lafayette avenues. West of this building and also fronting on Lafayette avenue are two frame houses each one story in height and also one frame house two stories in height. At the southeast corner of the property is another frame house, to the north of which there is a 12-foot private driveway running in from Meldrum, and some distance west of which there is an incinerator and cement garbage container. At the extreme southwest corner of the property, there is a barn and 20 feet or more north of it there is a two-story barn that will house two cars. Bast of the latter barn is still another one-car barn. There is also some unoccupied space in the middle of the property. The property adjoins an alley on its west side. The various buildings on the property are mainly on the north side of the property, the larger portion of them being on lot 44. The appraisers appointed by the probate court appraised the two-story brick building at $4,500, the first house west thereof at $1,600, the next house at $1,500, the one west of the latter $2,000, and the one facing Meldrum avenue at $1,500. This would make the total appraised value $11,100. The record does not show what value, if any, was placed on a small amount of vacant property, most of which was appurtenant to the .buildings, but out of which possibly one very small building lot might be carved. Considering a lot with a cottage to be worth only $1,500, not much value could be ascribed to such vacant lot. The attorney for the defendants concedes that his clients attempted to divide the property, that it could not properly be done because of the difficulty in dividing the property among six parties. A circuit court commissioner, after taking testimony on reference, found that the buildings were so situated and of such varying values that it was impossible to divide the property into equal parcels among the six heirs. He recommended that the real estate be sold and the proceeds divided. The circuit judge confirmed the report. The sale was held and the property bid in by the plaintiffs at $15,100. The sale has not yet been confirmed because of the appeal by defendants. Appellants propose that the three plaintiffs should each take one of the following three houses: the $1,500 and the $1,600 houses facing east Lafayette, and the $1,500 house facing Meldrum; that the defendants together be given the $4,500 building at the corner and that any small inequality in value could be taken care of by the sale of the $2,000 house fronting on east Lafayette avenue. As another possibility, they suggest that four of the parties each be awarded one of the four houses and that the other two each take a half interest in the brick store building at the corner, any inequality to be made up by proper allocation of vacant land. They ask further that, in the event of a sale of the real estate, original lot lines be disregarded and the land be sold as separate parcels to conform to the buildings. A sketch of the premises attached to the record showing the hodgepodge location of the various buildings, barns, outbuildings, vacant land possibly necessary for back yards, and the driveway, reveals many practical difficulties in attempting a division or sale of the property by parts or parcels. Property of this type, improved with many very old buildings, would probably bring a higher price if sold as a unit, since a single, larger lot might in time be used for other more profitable purposes than separate small portions of lots could be. We have examined the sketch of the property with care and believe that the trial judge came to the proper conclusion in ordering the property sold as an entirety. Defendants further suggested that the court decree owelty so that the person to whom one piece of property is decreed pay any excess in value to others to whom a less valuable piece of property is decreed. While this is permissible under the law (3 Comp. Laws 1929, § 15073 [Stat.' Ann. §27.2090]), courts of equity, as a rule, should not force parties in a partition suit to accept buildings with a small and undivided portion of a lot on which they stand and impose a lien on some of the property for owelty so as to make up for inequalities in a case where each of the parties would realize more from the proceeds if the entire property were sold as a whole, when half of them have expressed their unwillingness to accept separate portions of the property. A court of equity is not bound to divide property in kind. See Gilman v. Boden, 136 Mich. 125 (112 Am. St. Rep. 356). The principle of owelty should be employed as little as possible. See Thompson Estate Co. v. Kamm, 107 Ore. 61 (213 Pac. 417, 28 A. L. R. 722). Defendants rely on Security Trust Co. v. Sloman, 252 Mich. 266, 270, 271, where we held that intervening factors may cause property not to conform to lot lines and that several platted lots may in effect be one parcel. We stated that the question is a practical one and that the premises constituted one parcel by location, use and interdependence, lot, street and alley lines having been obliterated by buildings, so that in effect the two parcels constituted a single tract. We believe that that is true in the present case. While there are five principal buildings on the two whole and single fractional lots and the buildings are independent, nevertheless the improvements are so grouped together with adjoining barns, yards, court and private driveway that it becomes apparent that the property would be best sold as a whole and the proceeds divided. The very fact that $15,100 was realized from the sale instead of $11,100 according to the value placed thereon in the report of the appraisers adds weight to the judgment of the lower court. The question herein discussed is the only one raised on appeal. The decree of the lower court is affirmed, with costs to plaintiffs. Chandler, C. J., and Boyles, North, Starr, Bushnell, and Sharpe, JJ., concurred. Wiest, J., did not sit.
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Potter, J. This is an information in the nature of quo warranto filed by Theodore Zachary and William N. Phillips to test the right of Ernest C. Wunseh and Charles Milin to hold, use, exercise and enjoy the office of directors of the Great Lakes Champagne Wineries, Inc., a Michigan corporation. The result depends upon the validity of the directors’ meeting at the company’s laboratory December 8, 1937. If Zachary was legally removed as president of the company, then the trial 'court should be affirmed. But, if that meeting be considered as an informal one, not in the nature of a directors’ meeting, then the case should be reversed. In the absence of statutory authority no decision or act done by any number of the board of directors while not duly assembled as a board is a valid corporate act. Smith v. Dorn, 96 Cal. 73 (30 Pac. 1024). To hold that certain directors could form a quorum by coming upon another in a room, or in the street, and, despite the protests of that other, could, by merely declaring the body of persons so gathered together to be a meeting, actually give it that complexion, would be illegal. Harris v. English Canadian Co., 3 West. L. R. (Brit. Col.) 5. A director of a corporation is not to be trapped into attendance of a meeting against his will. The directors of a corporation have no authority to act as a board of directors except at a regularly constituted meeting, in the absence of a consent in writing (Act No. 327, § 13, subd. 4[d], Pub. Acts 1931 [Comp. Laws Supp. 1940, §10135-13, Stat. Ann. §21.13] ). But if all of the members of the board of directors are present and participate in the meeting or proceedings, then the meeting may be said to be duly and legally held. Zachary claims he was not given notice of the meeting of December 8, 1937, and, therefore, its action was void. On the other hand, the defendants claim that notice was waived by Zachary’s appearance at the meeting. Section 39 of the general corporation law, Act No. 327, Pub. Acts 1931, as amended by Act No. 194, Pub. Acts 1935 (Comp. Laws Supp. 1940, § 10135-39, Stat. Ann. § 21.39), provides that “shareholders’ and directors’ meetings shall be called in the manner provided in the bylaws.” Section 4 of the bylaws provides: “Special meetings of the board of directors may be held by giving one day’s notice thereof to each director, but no notice shall be necessary as a prerequisite to any meeting of the board at which all directors are present.” All three of the directors were present at the meeting of December 8, 1937. The validity of the meeting may not be affected by failure to give notice as required by the bylaws, providing the parties were personally present. If all of the directors were present at the meeting of December 8, 1937, and understood that the meeting was to be a directors’ meeting, then the action taken is final and may not be avoided by an informality in connection with its being called. “Of course if directors are willing to hold a meeting they may do so under any circumstances, but one of them cannot be made to attend the board or to convert a casual meeting into a board meeting.” Barron v. Potter, (1914) L. R. 1 Ch. Div. 895 (83 L. J. Oh. 646; 110 L. T. 929; 21 Manson, 260). In Stobo v. Davis Provision Co., 54 Ill. App. 440, two directors in New York came to Chicago and walked into the office of the third director who was secretary of the company. They moved to oust the third director as secretary of the corporation. It was contended that, no notice having been given, it required not only the third person’s physical presence in the room but his assent to the holding of the meeting. The court found there was no fraud, and stated: “At the meeting in question, every director was present and participated until such action was proposed as was distasteful to one, who then withdrew, but the rest, constituting a majority, remained. “Under such circumstances, to set aside the action of the board, so lawfully convened and acting within its powers, would be subversive of all lawful control by directors over the affairs of a private corporation. ’ ’ The record is sharply conflicting as to whether plaintiff Zachary agreed that the meeting of December 8, 1937, in the company’s laboratory, was a directors’ meeting or whether the defendants then voted to remove him from office. The testimony consists of the statements of the three directors themselves. The trial judge found that Zachary attempted to have Milin ousted as an officer of the company and that Milin then moved, and Wunsch seconded the motion, to have Zachary ousted as president. Where there is a conflict in the testimony, this court does not substitute its judgment for the judgment of the trial court on questions of fact unless they clearly preponderate in the opposite direction. Coming now to the stockholders’ meeting in question (January 17,1938): Defendants claim they cast one ballot. There is no question, from the record, but that the defendant Milin voted twice. The minutes of the stenographer employed by defendants show that after casting his first vote, but before Wunsch had announced the result of the election, Milin changed his vote to vote cumulatively. A stockholder or member may change his vote at any time before the vote is finally announced; and before that time it is proper to permit him to correct his ballot so that it will express his true intention. 5 Fletcher, Cyclopedia Corporations (Perm. Ed.), p. 82; 3 Cook on Corporations (8th Ed.), p. 2111, § 605; 2 Thompson on Corporations (3d Ed.), pp. 402, 405, §§ 1011,1013. The minutes of the meeting show that the result was announced by Zachary before the second ballot was cast, but that the result was not announced by Wunsch until after the second ballot was cast. The issue, therefore, is whether Wunsch or Zachary was the chairman of the meeting. If Zachary was chairman, then it was too late for Milin to withdraw the ballot which he had cast and to vote cumulatively. There was no legal duty imposed upon Zachary to inform Milin that he was voting cumulatively; and it was no fraud for him when" he stated that cumulative voting was not provided for “in the articles.” The trial court said: “Fildew inquired of Zachary whether there was anything in the bylaws or articles relating to cumulative voting. Prior to the effective date of the session laws of Í937, the corporation code of Michigan had provided that unless there was such a provision cumulative voting should not be in effect. The amendment of 1937 changed the law and reverted to the rule as it had stood prior to 1931, namely that the right of cumulative voting existed, whether expressly referred to in the articles or bylaws of a corporation or not. This fact seems to have been known to Zachary, but to have been overlooked by Fildew. Zachary’s reply that no such provision existed was made with the evident intention of deceiving Milin, and without any announcement as to whether cumulative voting would be permitted, the two equal stockholders proceeded to vote. Zachary’s vote was cumulated for two directors, himself, and a friend of his by the name of Phillips. Therefore, Zachary’s ballot read: Theodore Zachary................3,750 votes. William N. Phillips ..............3,750 votes. Milin’s vote was written out: Charles Milin....................2,500 votes. Ernest C. Wunsch................2,500 votes. While the ballots were on the table, but before the announcement of the result, Zachary claimed cumulative voting was in effect, whereupon Milin, acting on the advice of Fildew, retrieved his ballot, and tendered to Wunsch a new ballot showing his vote as: Charles Milin....................3,750 votes. Ernest C. Wunsch................3,750 votes. Upon the effect of this transaction hangs the result of this proceeding. “It is the opinion of this court, first, that Wunsch was the presiding officer of the meeting. “Second, that Wunsch never announced the vote until after Milin had cast his second ballot. ‘ ‘ Third, that it was the right of all the' stockholders to have announced at the beginning of the meeting, whether or not cumulative voting was in effect. “Fourth, that the attempt of Zachary to obtain an advantage over Milin to which he had no legal right is a course of conduct to which this court will not lend its approval. “Fifth, that no election could be declared closed until the presiding officer had so announced. “Sixth, that the presiding officer’s announcement of a tie vote, recognizing the ballot which Milin cast, in accordance with his right to cumulate, was a valid announcement, and one which should he legally sustained. “It follows that the petition for a writ of quo warranto should be denied, and judgment herein entered in favor of the defendants.” Judgment affirmed, with costs. Bushnell, C. J., and Sharpe, Chandler, North, McAllister, Wiest, and Butzel, JJ., concurred. Act No. 350, Pub. Acts 1937 (Comp. Laws Supp. 1940, § 10135-32, Stat. Ann. 1940 Cum. Supp. §21.32.). — Reporter.
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Sharpe, J. Prior to February 7, 1922, the Kent State Bank had purchased what was known as the old Morton Hotel property in Grand Rapids, and had obtained an option on certain real estate adjoining it on the rear, along Ionia avenue. Its purpose was to erect a new bank building thereon. ■ A number of the prominent business men of that city, of whom Miner S. Keeler was perhaps the most active, desired to see a new first-class hotel erected on that site. The bank yielded its assent thereto, and on February 7, 1922, an agreement was entered into between it and Mr. Keeler and a group of others interested, designated therein as “Hotel Associates,” wherein Keeler agreed to acquire from the bank the land owned by it and on which it had an option to purchase, except 5,200 square feet on the corner of Ionia and Monroe avenues, on which it proposed to erect a building for .its banking purposes. The price to be paid by Keeler was the sum of $260,247.62, the value of the parcel retained by the bank being fixed at $181,752.38. Mr. Keeler and his associates, who signed their names thereto although not named therein, agreed to organize a corporation with a paid-in capital of $350,000, to be used in the construction of the hotel building, and Keeler agreed to execute to it a 99-year lease of the premises to be purchased by him. It was stipulated therein that the company, when organized, and the bank were to unite in the construction of a combined hotel and banking house thereon, to cost approximately .$1,000,000; each party to pay the cost of that part of the building on its own land. The bank reserved the right to occupy the basement, first floor and mezzanine floor of its building, and agreed to lease the remainder of its building for a like period of 99 years. It was further agreed therein that the hotel company should “procure a loan upon its building” in the sum of $350,000, and that the proceeds thereof should also be used in the erection of the building. Pursuant thereto, the Morton Building Company was incorporated on May 4, 1922, and on July 1, 1922 (although dated May 1, 1922), Mr. Keeler executed to it ,a 99-year lease of the land which he had theretofore purchased from the bank. In it the lessee agreed to commence the construction of a building thereon within one year, and to complete the same within three years, the cost thereof, together with the building to be erected by the bank on the adjoining premises, to be reasonably worth the sum of $900,000, exclusive of the cost of finishing the part to be used by the bank. The lessee further agreed that in addition to its capital stock of $350,000, which should be fully subscribed.and paid for, it would procure an additional sum of $350,000 by the sale of stock, “or by mortgage upon the interest of the lessee in said leasehold and building,” and that the entire sum would be expended in the erection of a building upon the premises leased to it. The lease contained a further provision: “Any and all buildings that may be erected on said demised premises, and all improvements made, shall, at all times during the pendency of this lease, be and remain the property of the lessee, and said lessee shall have full right and authority to mortgage its right, title and interest in said premises, subject to the rights of the lessor; provided said lessee shall not be delinquent or in default in any of the obligations of said lease, on its part to be kept and performed and the lessee shall have the right, during the pendency of this lease, to make, at its own cost and expense, any alterations, additions, repairs or improvements upon the present structure, or upon said buildings to be hereafter built, it being further covenanted and agreed, by and between the parties hereto, that upon the termination of said lease at the end of the term hereinbefore provided, or in the event of the termination of said lease, at any time before such expiration of the demised term, as provided in section seventh hereof, by the breach of any of the covenants herein contained, then and in such case, any and all buildings, fixtures and improvements then situated on said demised premises shall remain thereon and become the property of the lessor, his heirs or assigns, free from claim of any person or persons, and no compensation therefor shall be allowed or paid the said lessee, or any other person or persons.” It also contained the nsnal provision for forfeiture in case of default, in which event “the lessor shall have the right to reenter said premises or the buildings or improvements situated thereon, or any part thereof, either with or without process of law, and upon such reentering, take possession of the demised premises, and any and all buildings and improvements then situated thereon.” The eleventh paragraph thereof reads as follows: “It is further covenanted and agreed and understood between the parties hereto, that time is of the essence of this agreement, and that upon the expiration of this lease, or sooner determination thereof, any and all buildings, structures, fixtures and improvements of every nature and kind, situated on said demised premises, shall be and become the property of the said lessor, and no compensation therefor shall be due or allowed or paid to the said lessee thereof, or to any other person or persons.” Pursuant to its undertaking in the lease, the Morton Building Company, on August 1, 1922, executed to The Michigan Trust Company, of Grand Rapids, as trustee, a mortgage upon “its leasehold estates and all and singular its right, title and interest in and to the lands” leased by it from Keeler and to be thereafter leased by it from the Kent State Bank, “together with all the buildings and improvements, fixtures and appliances now in process of erection, or that may be hereafter erected on the said premises,” including all machinery and equipment that may be installed therein, to secure an issue of $600,000 of six per cent, first-mortgage gold bonds. Each of the bonds contained a recital that it was “secured without preference, priority or distinction, as to lien or otherwise, of one bond over another, by a mortgage duly executed and delivered by Morton Building Company to The Michigan Trust Company, as trustee, and bearing even date herewith, the same being a first mortgage on the leasehold estates therein described, and the building situate thereon, as particularly set forth in said indenture of mortgage. ’ ’ In the circulars advertising these bonds for sale, of which plaintiff claims Mr. Keeler is chargeable with notice, it was stated that the bonds were secured, in opinion of counsel, by a closed first mortgage on the leasehold interests of the company and “upon the new 13-story and basement * * * Morton Hotel building now under construction.” In June, 1923, the Morton Hotel Company was incorporated for the purpose of leasing, furnishing and operating the hotel, and after the Kent State Bank had executed its lease to the Morton Building Company, pursuant to its agreement in the preliminary contract, the Morton Building Company executed to the hotel company a sublease of the entire hotel structure. These two corporations were consolidated on May 19, 1925, under the name Morton Hotel Company, and on May 20, 1925, it executed and delivered to the defendant Grand Bapids Trust Company a second mortgage upon the property described in the first mortgage to secure an issue of $200,000 seven per cent, mortgage bonds. Under date of June 21, 1927, the Morton Hotel Company assigned all its property, assets and effects to the Grand Bapids Hotel Company, and it thereafter executed a similar mortgage to the Grand Rapids Trust Company, as trustee, securing bonds in the sum of $500,000, a part of which were issued to the holders of the outstanding second-mortgage bonds, thereby retiring them. On January 10,1927, Miner S. Keeler and his wife executed and delivered to The Michigan Trust Company, George E. Keeler and Isaac S. Keeler, as trustees, a conveyance of all their right, title and interest in the premises leased by him to the Morton Building Company. George E. Keeler is dead, and the trust company and Isaac S. Keeler are the surviving trustees, and are referred to hereafter as the trustees. On August 1, 1931, first-mortgage bonds to the amount of $25,000 became due and payable. No provision had been made for payment; $500,000 of this issue were then outstanding. The trustee recognized the seriousness of the situation. Five of the bondholders organized themselves into a committee, and retained plaintiff’s present attorneys. A letter, prepared by one of the attorneys but signed by the committee, was sent to the bondholders, in which, after calling attention to the default of the hotel company, not only in the payment of principal and interest on the bonds but to the fact that taxes and ground rent were then due and unpaid, it was said: “In default of these payments the owners of the land are given the express right by the leases to forfeit the same and to take over the buildings and improvements unless defaults are cured within 90 days after notice by the lessors. It is obvious, therefore, that the security for the first-mortgage bonds consists only of the hotel building and the fixed equipment installed in it, and that if the long-term leases are allowed to be forfeited the security for the bonds will be wholly lost.” The holders of the bonds were urged to place them within the control of the committee and empower it to deal with the lessor and the holders of the second-mortgage bonds in an endeavor to protect their interests. It appears that at the time of the trial bonds to the amount of $342,000 had been so deposited by more than 170 bondholders. There was default in the payment of ground rent on July 1, 1931. The trustees did not act hastily. On September 26th following, their attorneys wrote the attorneys for the protective committee, reminding them of the default in rental, and also in the payment of taxes, and stated that they had awaited action on the part of the committee “to remedy the existing defaults,” and advising them'that, unless definite action was taken to do so on or before October 15th next, they would feel obliged “to give notice of termination of the lease or take such other steps as may be deemed necessary to protect the interests of the lessors.” No response having been received thereto, the trustees, on October 23,1931, served a notice of such defaults on the Grand Rapids Hotel Company, The Michigan Trust Company, trustee, and Grand Rapids Trust Company, trustee, and notified them that, if the default continued for a period of 90 days, they would reenter the premises and the buildings and improvements thereon and take possession thereof as provided for in the lease. In support of the claim that they were at all times willing to treat the bondholders fairly and to arrive at a satisfactory settlement of the matters in controversy, the trustees, on October 28, 1931, wrote the secretary of the committee, offering to sell the leased property to the committee, or its nominee, for the sum of $260,200. Action thereon was requested within one week and, if taken by the committee, 30 days would be allowed to make payment and complete the transaction. This offer was, however, subject to the approval of the board of trustees of the trust company, trustee. On November 3, 1931, the attorneys for the committee wrote the trustees that it apparently was impossible to finance the purchase and that the offer could not be accepted. The 90-day notice given by the trustees expired on January 21, 1932, and on that day the plaintiff, as trustee for the bondholders, filed the bill of complaint herein for the foreclosure of its mortgage. In its prayer for relief it asked for a sale of the mortgaged property. An’swers were filed and a hearing had, after which the trial court entered a decree dismissing the bill of complaint, from which the plaintiff has taken this appeal. The issue presented is whether, under the facts as stated, the title to the hotel building and the fixtures installed therein passed to the lessor, now represented by the trustees, on the termination of the lease. The rule is well established that the owner of land may by agreement permit another to erect a building thereon and have title thereto as personalty. 1 Tiffany on Real Property (2d Ed.), p. 945; Kinkead v. United States, 150 U. S. 483 (14 Sup. Ct. 172). This hotel building was erected pursuant to the terms of the lease of the land on which it was built. There is no ambiguity in the language used therein. A consideration for its execution was the erection of the building thereon. Provision was made therein for procuring a part of the cost thereof by a mortgage upon the leasehold interest and the building to be erected thereon. The interest of the lessee therein was pledged to the bondholders under the trust mortgage to secure the payment thereof. But this interest was subject to the provision in the lease that, in default of the payment of the ground rent, it might be forfeited by notice as therein provided, and on such termination “any and all buildings, structures, fixtures and improvements of every nature and kind, situated on said demised premises, shall be and become the property of the said lessor.” This language is so plain that it could not be misunderstood, and that it was not is apparent from the communication above referred to, prepared by one of the plaintiff’s attorneys and sent to the bondholders by the protective committee. The lessee had become the owner of the leasehold interest. It also became the owner of the building it erected thereon, subject to - the terms of the lease. It had a right to mortgage the same. The mortgage recited that the interest of the mortgagor was created by the indenture of lease executed by Miner S. Keeler and his wife, duly recorded in the office of the register of deeds of Kent county. In each of the bonds appeared the statement that it was secured by a trust mortgage “on the leasehold estates therein described, and the building situate thereon, as particularly set forth in said indenture of mortgage. ’ ’ The provision in the mortgage, thus referred to in the bonds, will be treated as embodied therein, and it became binding on the purchasers of the bonds. Morley v. University of Detroit, 263 Mich. 126 (90 A. L. R. 464). They thus became chargeable with notice of the provision in the lease for forfeiture and the passing of the title to the building and fixtures on the termination thereof. The lessee was under obligation to pay the rent provided for in the lease and the taxes assessed against the property and, had such payments been made, the lessor must have been satisfied. When the lessee failed to do so, the trustee under the mortgage securing the issue of bonds might have done, so, and the amounts so paid by it to preserve the rights of the bondholders would have been a charge against the lessee as mortgagor. Taan v. American Loan & Trust Co., 247 Mich. 683. Opportunity to do so was accorded, but met with no response. Counsel for the plaintiff urge “that the object of the various rules of construction is to ascertain and give effect to the intention of the parties, ’ ’ and that such intention “must be found from the contents of the written instrument to be construed, the subject-matter of the contract, the attendant circumstances and the object to be accomplished.” We find no fault with this statement of the law, nor with the further claim that doubtful or contradictory provisions should be construed,, most favorably to the lessee. But when there is no ambiguity in the language used and the intent of the parties is plainly expressed, there is nothing to interpret, and it is the duty of the courts to enforce the contract according to its terms. It seems clear that any intelligent person reading this lease would at once notice that, on default in the payment of the ground rent and taxes, the lessor might serve a notice of forfeiture, and that, on the expiration of the time limited therefor, all of the rights of the lessee would be terminated and the title to the building which it had erected on the land would pass to the lessor. That a different construction should now be placed upon it is based largely upon the claim of the intent of the lessor as indicated by his becoming a stockholder and president of the lessee and his acting in a somewhat dual capacity as lessor and pres ident of the lessee when the lease was executed. It is also urged that he, or his counsel, gave assent to the advertising matter issued at the time the bonds were sold, in which the public was informed that the leasehold interest and the building to be erected thereon were included in the trust mortgage. While Mr. Keeler took perhaps the leading part in the negotiations with the bank and other business men of the city for the erection of the hotel, and while he personally purchased the land on which it was to be built at a price, the fairness of which is not questioned, there is no indication in the record that he was not at all times acting fairly and in what he believed to be the best interest of the enterprise. But neither the trustee to which the mortgage was made payable nor the purchasers of the bonds had any right to expect that he, or his assigns, would not insist on the ground rent being paid with reasonable promptness, and, if not, that he, or they, would exercise the right given in the lease to forfeit the same and on the conditions therein provided. Counsel for the plaintiff concede “that, as against the tenant corporation, the landlord had a right of forfeiture.” As before stated, the bonds referred to the lease by apt reference to its record. The purchasers thereof were chargeable with notice of its provisions, and have no greater rights than the lessee. As before stated, the trustees, within a few days after the service of the notice of forfeiture, made an offer to the protective committee to convey the property to it, or to any person it might name, for the sum of $260,200. They renewed this offer at the hearing in this court, and stated that they would accept this amount with interest, and costs to be added thereto. A decree will be here entered affirming that of the trial court, with costs to the defendants. It may, however, at the option of the plaintiff, contain a provision fixing the amount at which the trustees are now willing to convey, and permitting acceptance of the same within 30 days thereafter. McDonald, C. J., and Weadock, Potter, North, Fead, Wiest and Butzel, JJ., concurred.
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Weadock, J. (dissenting). The plaintiff and appellee began a suit by summons against defendant and appellant, Cleveland Tractor Company, of Cleveland, Ohio, a corporation which was selling tractors for road work in Michigan, having a “distributor” in Michigan. It employed Charles II. Wilt as a “traveling service supervisor calling on distributors to instruct the distributors’ organization in the service and maintaining of tractors” and he carried cards, as the defendant knew, showing he was “a service representative of the Cleveland Tractor Company.” Plaintiff’s suit was for personal injury to himself and also injury to his automobile caused by Wilt who was driving his own car for the use of which defendant paid him in the service of the company, in discharge of his duties. Wilt was operating a car of defendant as aforesaid and in its service in Alger county, on a public highway. The summons was served on defendant pursuant to 1 Comp. Laws 1929, § 4790, by service on the secretary of State and was also served on Marcus S. McNabb, who defendant calls its “distributor,” and provides in its written contract with him that: “Nothing herein shall be construed as constituting the distributor the agent or the legal representative of the company.” The defendant appeared specially by attorneys and moved to dismiss the suit because there was no legal service of process. After due hearing the circuit court denied the motion and .defendant appealed. This court in Huckle v. Mt. Forest Rabbitries, 253 Mich. 441, 443, cited the statute that “any person representing such (foreign) corporation in any capacity shall be deemed an agent within the meaning of this section.” 3 Comp. Laws 1929, § 14094. The decision of the circuit court should be affirmed, with costs.
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Weadock, J. In this cause the probate court of Kent county on August 22, 1932, made an order assigning the residue of the estate and on the same day another order discharging the executors because all their duties had been performed according to law. Cora W. Robinson filed a lengthy verified petition on September 8, 1932, showing that Salathiel R. Fletcher, deceased, with W. Millard Palmer and Charles J. Kindell, long prior to the death of Fletcher and on January 27, 1916, had become obligated to her as lessor in a lease which required the deceased and others to pay the taxes against the leased premises, etc. This lease was assigned to the General Realty Company, a corporation, but the assignment was expressly made subject, to the continuance of the liability of the lessees to the lessor under the lease. After healing on claims had been closed default occurred in the payment of taxes as covenanted in the lease with respect to payment of taxes. The taxes assessed against the leased premises for the years 1930 and 1931 were not paid when due and these taxes remained unpaid in major portion until the latter part of May, 1932. On May 26 and May 31, 1932, petitioner, in the exercise of her option paid, respectively, $13,405.82, and $950, a total of $14,355.82, in satisfaction of the unpaid taxes and assessments. The next rent day was June 1, 1932, and in accordance with the provisions of the lease petitioner was on that day entitled to be reimbursed for her payments. The defendants moved the probate court to dismiss Mrs. Robinson’s petition on September 23, 1932, because the estate had been closed and the executors discharged and the court had no jurisdiction and the petition was dismissed December 3, 1932. The petitioner appealed to the circuit court for Kent county and the order of the probate court denying Cora Robinson’s petition to allow her to prove her claim was reversed, on May 10, 1933, and the cause remanded to the probate court, the respondents to have 15 days to answer the petition, etc., in accordance to law. The judgment of the circuit court is affirmed, with costs. Potter and Sharpe, JJ., concurred with Weadock, J. McDonald, C. J., and North and Fead, J J., concurred in the result.
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Wiest, J. This is an action on a Michigan standard fire insurance policy. . The policy covered— “household and personal effects of every description belonging to insured and all members of. the insured’s family, usual or incidental to the occupancy of the premises by the insured, * *■ *■ all while contained in or attached to the * * * building occupied for dwelling purposes situated and known as No. 1A, situated on the corner of Phoenix road and Bradley avenue, city of South Haven, State of Michigan. This insurance shall also cover under the above item household and personal effects as described above, if the property of the insured and not otherwise insured, while stored in outbuildings on the above-described premises, but the liability of this company for loss or damage to household and personal effects in outbuildings shall not exceed 10 per cent, of the amount of insurance under item No. 1 above.” After the policy was issued plaintiff constructed a summer cottage, about 50 yards from the dwelling house, for rental purposes to resorters, furnished the same, and it was occupied by renters during the season of 1931, but closed about September 1, 1931, and was unoccupied but furnished when, on September 9, 1931, it was destroyed, together with its contents, by fire of unknown origin. Defendant contends that the cottage did not fall within the coverage upon household and personal effects while stored in outbuildings. Plaintiff contends that the cottage was an outbuilding and the resort season had closed at the time of the fire, and it was an outbuilding in which household goods and effects were stored within the meaning of the coverage. Was the summer cottage, constructed and furnished for use apart from plaintiff’s dwelling house and occupied by renters during the summer, an outbuilding of plaintiff’s dwelling? Upon trial by jury there was verdict that the cottage was an outbuilding within the coverage of the policy. Upon review of judgment on the verdict counsel for plaintiff insists that the question of whether the cottage was an outbuilding within the terms of the policy was one of fact for the jury. The facts being undisputed, the question was and is one of law. The household effects burned were not being stored in the cottage, to relief of the dwelling house, or as an aid to the use of the dwelling house, but were placed therein for the purpose of rental of the cottage and were there merely awaiting another resort season and rental to others, for use apart from the dwelling house. The term “outbuilding” refers to a structure, with identity, characteristics, and use in connection with a principal building to which it is subservient. In Smith v. Byrne, 208 Mich. 104, a covenant in a deed restricted use of premises to a single private residence and the necessary outbuildings, and, in holding that the erection of a garage for rental purposes on the premises was in violation of the restriction, Mr. Justice Sharpe, speaking for the court, said: “It was intended to preserve the territory for a residential district, for a place for dwelling houses and the outbuildings necessary for the enjoyment of their occupants. In other words, only such buildings additional to the residence can be constructed as are ordinarily used and occupied as aids to the use of the dwelling house. Clearly, a garage for rental purposes is not so needed.” The cottage was not intended nor was it used as an accessory to the dwelling house. The policy covered designated personal property in the dwelling house and portions while stored in an outbuilding. The cottage was constructed and the furniture and effects therein installed were not a part or parcel of household effects or connected in any way with the dwelling house proper. Judgment should have been entered for defendant. Judgment reversed, with costs, and without a new trial. McDonald, C. J., and Weadock, Potter, Sharpe, North, Dead, and Butzel, JJ., concurred.
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Potter, J. Plaintiff seeks mandamus against the auditor general commanding him, upon delivery of three tax deeds issued by him as auditor general to George E. Luther, February 1, 1929, covering lands and premises in Iosco county, Michigan, hereafter more particularly described, for unpaid taxes for the year 1918, and quitclaim deeds from Luther and wife to petitioner „of the lands, to cause to be refunded to petitioner the sum of $1,273.38 with interest at six per cent, per annum from February 1, 1929, and upon the delivery of other tax deeds issued by him as auditor general to George E. Luther, July 17, 1926, covering lands and premises in Iosco county and quitclaim deeds of said lands from Luther and wife to petitioner, to cause to be refunded to petitioner the sum of $315.62 with interest thereon at six per cent, per annum from July 17, 1926, to date of such refund. The facts involved are not seriously in dispute. June 20, 1867, Francis B. Smith and others, then owners of land situated in Iosco county, Michigan, described as “that fractional part of government lot 1, section 10, township 23 north, range 9 east, lying along the westerly or right bank of the Au Sable river and extending from the north line of section 10, south 80 rods and bounded on the west by the north and south quarter line of said section 10, ’ ’ platted the same as the original plat of the village of Au Sable, which plat was recorded in the office of the register of deeds of that county, July 9, 1867; the plat containing one block 2 only, lying between River street and the Au Sable river, the southern portion of which block was divided by the plat into eight lots, numbered 1 to 8, inclusive, the northern portion of the block was left vacant and unplatted, so far as division into lots was concerned. September 2, 1884, Mary Buckley, the owner of the northerly and unplatted portion of said block 2, platted the same into lots numbered 9 to 28, inclusive, under the designation of “The north part of block No. 2 of Au Sable, Johnson’s survey, plat of 1867, on the right bank of Au Sable river in fractional section No. 10, town 23 north, range 9 east.” By Act No. 456, Local Acts 1889, the village of Au Sable was incorporated as a fourth-class city. By Act No. 435, Local Acts 1895, certain territory was detached from the city of Au Sable and attached to the township of Au Sable. The incorporation of the city of Au Sable was vacated as a result of a special election held October 5, 1931, pursuant to Act No. 223, Pub. Acts 1931. From the platting of the lots above described they were assessed for taxation, and January 1,1907, and subsequently were delinquent for taxes for five years or more, as appeared by the records in the auditor general’s office, and such lands had been sold and bid off to the State one or more times by reason of delinquent taxes* The time of redemption from such tax sales had expired. No application had been made to pay the delinquent taxes, redeem from the tax sales made, or to purchase the premises. No action was pending in the circuit court of Iosco county to set aside the taxes or to remove the cloud on the title occasioned thereby. The title to such lands had become absolute in the State, and the auditor general and commissioner of the State land office determined the lands came within the provisions of section 127 of the general tax law then in force (1 Comp. Laws 1915, §4126), and the auditor general transferred the lands by deed to the commissioner of the State land office as coming* within the provisions of section 127 of the general tax law, which several deeds of these lots were subsequently recorded. Such lands continued to be owned by the State until 1919 and 1925, when the State, by two deeds, conveyed lands as follows by deed to Herman F. Sterling, November 19, 1919, “lots 10, 11, 18, 19, and 20” and by deed to Charles P. Lowe and Irvin S. Canfield, August 20, 1925, lots “12, 13, 14, 15, 16, 17, 21, 22, 23, 24, 25, 26, and 27 of block 2 of the city of Au Sable.” During the period from 1907 to 1919 and 1925, when the State sold its title to these lands as above described and set forth, and while the same were exempt from* taxation, the State of Michigan continued to levy and assess taxes against the same and the lands and premises were sold for such delinquent taxes, aggregating the amounts which plaintiff asks to have refunded, and the lands were sold at tax sale based upon the taxes levied and assessed against the same while they were the property of the State of Michigan and not taxable, for the aggregate sum of $1,589, to Greorge E. Luther. Plaintiff is a successor in interest — an assign — of George E. Luther. Defendant claims plaintiff is not entitled to relief because he is an assignee of the claim and is barred from relief by the statute of limitations. Upon a valid tax sale the assignee of the certificate of sale is entitled to a conveyance of title (1 Comp. Laws 1929, §§ 3464, 3475); and plaintiff as an assignee of the original purchaser is recognized by statute. The five-year statute of limitations (1 Comp. Laws 1929, § 3490) exempts lands not subject to taxation at the date of assessment of the taxes for which it was sold. Plank v. Auditor General, 192 Mich. 313. Tt is claimed the statute of limitations runs from the date of the payment of the money by plaintiff’s grantor, not from the date of the tax deeds issued by the auditor general. All the tax deeds issued contained a recital that “in consideration of the premises and the payment of the purchase money above mentioned the receipt whereof is hereby confessed and acknowledged.” Such acknowledgment of the receipt of the purchase money was in writing, signed by the auditor general and sufficient under 3 Comp. Laws 1929, § 13984, to constitute an acknowledgment of the receipt of the money, suspend the running' of the statute of limitations, and imply a new promise of payment. The statute of limitations runs from the date of the acknowledgment in writing by the auditor general of the receipt of the purchase money, not from the date the money was paid. George E'. Luther and wife as grantors conveyed by quitclaim deed their interest to plaintiff, and by reason of such taxes made the basis of the tax deeds to George E. Luther having been illegally assessed and the lands having been sold and deeded to Luther, and Luther and wife having quitclaimed to plaintiff, plaintiff has the right to have such taxes canceled and the money paid for the tax deeds from the State to George E. Luther refunded to him, except as barred by the statute of limitations; $315.62 of plaintiff’s claim with interest thereon is so barred. Plaintiff is entitled to have refunded to him by the auditor general the sum of $1,273.38 with interest at 6 per cent, from February 1, 1929. The writ will issue as prayed for payment of that amount, but without costs. McDonald, C. J., and Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. Clark, J., took no part in this decision.
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Fead, J. The suit is for an accounting. Defendant had decree for $9,753.48. In 1919, with one car, plaintiff engaged in the taxicab business in Grand Rapids under the name of ‘ ‘ Harry’s Taxi. ’ ’ Near the Union Depot, defendant conducted a small restaurant, which became a sort of headquarters for taxi drivers. The acquaintance between these parties began about 1921 and developed into a fine friendship, characterized by personal affection and implicit trust. Melconian boarded at the restaurant. Fraam acted as his banker, keeping his taxicab collections in his safe and paying bills for him. Also, he became surety on Melconian’s $10,000 public liability bond, indorsed his notes for purchase price of cars, and the like. In the succeeding years Fraam provided an apartment in one of his houses, which he declared was Melconian’s home for life, without rent, and made provision for him in his will. Melconian relied on Fraam’s advice and executed without question any instrument Fraam directed. In 1924, one Shay purchased an interest in Harry’s Taxi, but he withdrew in July, 1925. In the course of the next year defendant paid Shay $1,415 to cover wages and repurchase price and claimed he thereby bought Shay’s interest. Plaintiff claims Shay merely withdrew and defendant paid him out of Melconian’s money. About that time plaintiff had some personal injury claims pending against him on account of accidents with his cabs. Fraam claims that in December, 1925, he purchased Melconian’s remaining interest in the business for $1,500. He said he bought the business because he was liable on the personal injury claims and had advanced and was obligated for considerable sums, but that the business was continued in the name of Melconian, principally to enable Fraam to continue as surety on the public liability bond. Until it was sold in 1929, the business was conducted in Melconian’s name. October 28, 1925, Melconian executed to Fraam a note and chattel mortgage for $6,000, in the consideration for which were included $1,415 for the Shay repurchase and various advances. On March 19, 1926, Melconian executed to Fraam another note and chattel mortgage for $10,000, which included advances to buy cars and sums paid to settle the damage suits. Plaintiff was listed as proprietor of the business in the city directory, telephone books, etc. All public licenses, permits and certificates of title to cars ran to him and most or all contracts of sale were taken in his name. On April 26, 1929, an assumed-name certificate, drafted by Fraam’s attorney, was filed declaring that the business was owned and operated by Melconian. Fraam was in full charge of the financial affairs of the business. Melconian managed the operation of'the cabs. The issue of ownership did not arise between them. Neither seems to have claimed nor exercised superior control and their conduct of the business resembled that of a partnership, each in full charge of a department. However, neither claims there -was a partnership. In the summer of 1929, Fraam conducted negotiations for sale of the business to the Grand Rapids Railway Company for $30,000, of which about $15,000 represented good will. Included in the sale, at an additional $5,000, was the Bird Taxi Company, which Fraam purchased September 3, 1929, for $4,950. Fraam had the bill of sale of Bird Taxi Company run to plaintiff and plaintiff executed to Fraam an option to purchase. On the same day Melconian executed to Fraam a bill of sale of Harry’s Taxi for the nominal consideration of $1. ' The sale to the railway company was consummated October 15, 1929. On that date Melconian executed to Fraam a bill of sale of the Bird Taxi Company for the expressed consideration of $2,000, which defendant afterwards paid plaintiff and which Fraam says was a gratuity. The instrument contained the following: “I do hereby acknowledge settlement in full for all claims of whatsoever nature I have or might have against George Fraam, arising out of our business dealings prior to the date hereof and up to and including this 15th day of October, 1929.” After the sale of Harry’s Taxi, plaintiff purchased a half interest in the Oakwood Livery Company. September 25, 1930, he purchased the other half. In connection with the transaction a statement was prepared showing Melconian’s total investment as $5,750.66. Plaintiff claimed the statement was prepared for its effect in inducing the owner of the outstanding half interest to reduce his price. It appears certain that some of the items were padded and others were false. Fraam claims the statement showed the amount Fraam had advanced to Melconian in that business. To further prove the amount, Fraam produced a note for $6,000, executed by Melconian, but it developed at the hearing that it was the $6,000 note given in 1925, with the year changed, evidently by Fraam. After selling Harry’s Taxi,’Praam purchased a Rent-A-Car business in plaintiff’s name, and so conducted it until December 2, 1930, when he sold it to plaintiff for $6,000,. payable $2,000 per year, evidenced by a note. No payments having been made on the note, negotiations for adjustment were had in the spring of 1932, in which each party was represented by counsel of his own choice. Mr. Bowman represented plaintiff. The business was turned back to defendant, the $6,000 note was returned to plaintiff and, on April 27, 1932,- as a result of the negotiations, he executed to defendant a $3,000 note, upon which he afterwards paid $200. During the negotiations Mr. Bowman raised the question that plaintiff was entitled to an accounting from Harry’s Taxi business. The instruments of 1929 were shown Mm, he discussed the matter with Melconian, Melconian made no claim of right to an accounting, and the matter was not discussed further in the negotiations for settlement of the Rent-A-Car business. Praam commenced suit at law on the $6,000 note in July, 1932. This bill was filed August 15, 1932. The court gave defendant a decree in the amount of $3,000 and $6,000 notes. The case presents difficulties. The ownership of Harry’s Taxi from 1925 to 1929 is not free from doubt. Ostensibly, Melconian was the owner but Praam was in complete control of the finances. Their mode of operation pointed out neither as having nor claiming superior rights. The uncertainty sends us to subsequent events for light on the issue. Special force attaches to the settlement of the Rent-A-Car business in April, 1932. The parties then were dealing at arm’s length. Each was represented by counsel. Shortly before, the break in their friendship had occurred. In March, Praam had written a letter to Melconian stating, in substance, that Ms love for liim had turned to hate and that their subsequent relations would be on a business basis— each to pay for what he got from the other. Fraam demanded a settlement of the Rent-A-Car transaction and told Melconian to get a lawyer. "When Melconian executed the bill of sale and receipt in 1929, he was fully conscious of their effect. It is claimed he said at the time that Fraam owned the business, he, Melconian, had no interest in it and he appreciated the gratuity of $2,000. However that may be (see In re Lewandowski’s Estate, 236 Mich. 136), he made no claim that Fraam owed him anytMng until the suit on the $6,000 note was commenced in July, 1932. Melconian said he never would have claimed an accounting had Fraam not brought that action. His failure to make a claim during the negotiations in April, 1932, when their friendship had ceased and even though suggested by his counsel, and his executing a note of indebtedness to Fraam and subsequently paying two installments thereon without asserting right, to an accounting, constitute strong evidence that Melconian knew that he had no just claim, and that his signature to the receipt represented his free and voluntary act. It may also be said that the record affords no basis upon which an accounting for a definite amount could be ordered even by means of fair estimate. Melconian kept no books. Fraam’s records were incomplete and he neglected to produce many which he claimed to have. No estimates by competent persons were offered for the period. " '. We think Melconian has failed to sustain the burden of proof either as to right of accounting for Harry’s Taxi or the amount. Nor can we find'Fraam’s claim of $6,000 established. In his other definite dealings with Melconian lie had some sort of documentary proof of the transactions. The advances, if made, were prior to September, 1930. It is hardly credible that he would engage in the sale of the Rent-A-Car business in December of that year, taking Melconian’s note for $6,000, and a year and a half later demand and negotiate a settlement with a $3,000 note from Melconian and not inject into either the matter of written acknowledgment of the $6,000 he claimed. The fact that, instead of making his claim at the natural time and occasion, he presents documentary evidence consisting of an untrue statement and a note altered by himself cast such doubt upon the claim that we think he has not sustained it by a preponderance of the evidence. The decree will be modified by changing the award to defendant to the balance due on the $3,000 note, with interest, and otherwise affirmed. Plaintiff will have costs of this court. McDonald, C. J., and Weadock, Potter, Sharpe, North, Wiest, and Butzel, JJ., concurred.
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Weadock, J. (dissenting). The plaintiff, Josephine Layton, 58 years of age at the time of- the injury, November 24, 1930, was seated by her husband on the front seat of the husband’s Erskine sport sedan. He had owned and driven cars since 1917. They were driving in a southerly direction on US-131, a trunk line highway, paved with concrete, a little north of Plainwell and had the right of way. The statute, .1 Comp. Laws 1929, § 4693, defines right of way: “The privilege of the immediate use of the highway.” “Right of way means the right of a vehicle to proceed uninterruptedly in a lawful manner in the direction in which it is moving in preference to another vehicle approaching from a different direction into its path.” Kling v. George Ast Candy Co., 33 Ohio App. 177 (168 N. E. 761). In Harris v. Bernstein, 204 Mich. 685, 690: Plaintiff’s car was struck at a place “where it had a right to be and the defendant’s car did not have a right to be.” In that case the court in. a unanimous opinion said: • “We think the inferences fairly to be drawn from this situation. and this testimony made a question for the jury, both as to the contributory negligence of the plaintiff and the negligence of the defendant. See Amanta v. Railroad Co., 177 Mich. 280; Congdon v. Railway Co., 179 Mich. 175; Bouma v. Dubois, 169 Mich. 422; Brown v. Mitts, 187 Mich. 469; Weber v. Beeson, 197 Mich. 607.” In the case of Henry v. Sanderson, 260 Mich. 563, 567, this court said: “Plaintiff was not bound to anticipate that defendant would operate his automobile in a negligent manner. Instead, plaintiff was entitled to assume that any other person on the highway would be proceeding in a lawful manner until plaintiff had knowledge to the contrary or by the exercise of reasonable care would have had knowledge or notice to the contrary. At most, under the circumstances of this record, plaintiff’s contributory negligence was a question of fact for the jury, and it was So submitted. This case is within and controlled by the principles of law announced in Pline v. Parsons, 231 Mich. 466; Kiefer v. Fink, 236 Mich. 274; Lefevre v. Roberts, 250 Mich. 675, and Swainston v. Kennedy, 253 Mich. 513.” The defendant’s agent and employee, Baum, with its knowledge and consent and in its business, was driving toward US-131, negligently, at an excessive and illegal rate of speed, saw the stop sign, which was 100 feet from the trunk line, and did not stop. Defendant failed to yield the right of way, ran into Mr. Layton’s car which was struck with defendant’s front right wheel and drove Layton’s car around to the west against the fence. The steering apparatus was pulled loose and the axle and frame were sprung, the bumper was bent and Layton was badly hurt. ' The plaintiff was thrown down head first in the comer of the car. When the second bump came the seat was turned and she was thrown back across the seat with her head over between the front and back seat. She was lying on her back and left side. She was helped out of the car and taken home. She was first placed in a chair and complained of pain in her back and neck. During the month following she was in bed, complained of the same pain, couldn’t sleep. She made these complaints to her husband every day during the ensuing two years. She said her back and head pained her terribly. She was in bed three months. Plaintiff’s deposition was taken at her home December 21, 1932. She testified that she was not conscious when the auto came to a stop in the collision; when she came to she was lying between the two seats; she thought her neck was broken; felt as though a piece was taken out of her back and had those feelings ever since. More details were given, among them, that the day before she was hurt she weighed 214 pounds and about two months previous to December, 1932, she weighed 166; before the injury she did a great deal of work on the farm, since then, she could only wash dishes; cannot see to read the newspapers; when she uses her arms her spine fails; she is not able to lean back against a chair or lie on her back in bed; this has been so for two years; had X-rays and the doctor tried electrical treatments but she could not stand it; had no trouble with her nerves before the accident nor with her eyes and now they pain her awfully; walks with a cane, never needed one before; Dr. Vaughan treated her and he called doctors Adams and Westcott in consultation. There was medical testimony that the injuries were permanent, and likely to grow worse. At the conclusion of the evidence each party moved for a directed verdict and the case was submitted to the jury under a very complete and fair charge, the contentions of each side being especially fully and fairly stated. The jury rendered a verdict of $7,710.63. Defendants moved for judgment non obstante, which was denied and judgment rendered for plaintiff on the verdict, and defendant appealed. Attorneys for appellant present six questions which may be simplified as follows: 1. The right of way. 2. Want of care of Joseph Layton in approaching crossing. 3. Hearsay statements as to physical condition of plaintiff. 4. Opinion of physician on statements. 5. Excessive verdict. 6. Motion for new trial. The Layton car had the right of way on a trunk line. It was in open daylight, the car was in sight; the defendant disregarded the right of way, disregarded the stop sign, — did not have his car under control. If he had stopped as required by law and common sense as well, the collision would not have occurred. This point is considered, above. There was no negligence on the part of Mr. Layton. He had a right to rely on the right of way, the law of the road, the sign to stop on approaching the trunk line, the speed and control of the defendant’s car. In the case of Hazzard v. Heneveld, 263 Mich. 253, 255, this court unanimously held: ‘ ‘ The cases are uniform in holding that a driver on a public highway had the right to assume that the law will be obeyed.” The statements called hearsay were the history of plaintiff’s injury, and an account of her condition at the time, after a personal examination by Dr. Westcott, an expert, and consulting physician, and were proper. He had made an examination of plaintiff in July, 1931, and the Sunday preceding trial. He said: “Taking into consideration the fact that I saw her in 1931 and taking into consideration the fact that this condition has become constantly more aggravated — taking those matters into consideration — I think the condition will be permanent.” This was followed by a hypothetical question embracing the whole case which was objected to and allowed and the answer was: “It is my opinion that the accident was sufficient — that the occurrence was sufficient — to be responsible for her present condition.” Her general good health prior to the accident was claimed and this was a question of fact for the jury. The verdict was not excessive. The plaintiff, a strong, healthy woman, suffered a terrible shock and was made a nervous wreck. She had lost 48 pounds, was not able to go into court to testify in her case two years after her injury, and had suffered greatly in the meantime from a general or multiple neuritis, radiculitis, traumatic neurosis and arthritis of the atrophic type. This condition is a competent procuring cause of severe pain usually of the continuous character, and the condition of the plaintiff will be permanent. The denial of the motion for a new trial was a matter of discretion properly exercised. The judgment should be affirmed, with costs. Potter and Sharpe, JJ., concurred with Weadock, J. Wiest, J. Defendant’s driver was guilty of negligence. Whether plaintiff’s husband was guilty of contributory negligence was, considering the disclosed circumstances, a question of fact for the jury and was so left by the circuit judge. Testimony of statements of pain and suffering made by plaintiff, under circumstances negativing spontaneity, and therefore, open to the charge of being a mere relation of past suffering, or furnishing hearsay evidence thereof at the trial, should have been excluded. It was seriously contended that plaintiff was suffering from a breakdown occasioned by overwork upon the farm. Whether such was the fact, or she was suffering from shock occasioned by the accident was an ultimate question of fact for the jury. The court permitted a medical witness to answer the following question: “Is the condition you found during all this time, in your opinion, caused by the injury she sustained in the accident, or by working on the farm?” This testimony invaded the province of the jury and its admission, over objection, constituted error. DeGroot v. Winter, 261 Mich. 660. The judgment is reversed and a new trial granted, with costs to defendant. McDonald, C. J., and North, Fead, and Butzel, JJ., concurred with Wiest, J.
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Sharpe, J. In a written complaint, made by Frank Dendel on the 21st day of November, 1932, to a justice of the peace, it was alleged that the defendants on the 31st day of March, 1932, “did, with intent to cheat and defraud one Frank Dendel, designedly, by color of a false receipt, and by means of false pretenses, to-wit: that certain lots in Grand Oakland Memorial Park purchased by said Frank Dendel would be resold by them for him in August, 1932, for the sum of $1,200; that they were representatives of Grand Oakland Memorial Park and were fully informed of the values of said property and the operations upon said property; that the Lutheran Cemetery was to be moved upon said Memorial Park in block T, raising the value of said lot to $1,200 which they would obtain for him in August, 1932, and many other false pretenses, and said A. F. Wid-' mayer and E. T. Going did obtain from said Frank Dendel money to the value of more than $50, to-wit: of the value of $290.” The defendants were apprehended and brought before the justice, and an examination had on December 23, 1932, after which they were bound over to the circuit court of Allegan county for trial. When arraigned on an information in- which the charge was stated as in the complaint, they moved to quasli it and for their discharge, upon the .ground that the proofs submitted on the examination disclosed no criminal offense. The motion was denied, and by leave of this court the question is before us for adjudication. Dendel was the only witness who was sworn on the examination. He testified' that the defendants came to see him about March 1, 1932, and urged him to purchase some lots in the Grand Oakland cemetery; that he at that time owned 11 lots therein, for some of which he had paid $420; that defendants said the cemetery “had opened up the resale department;” that he did not want to sell his lots; that they stated to him “the advantages of purchasing more lots at that time. They said that the. cemetery was. to be moved on block T. They said the resale department would get for this lot later $1,200. They said they would get the $1,200 the 1st of August this year, 1932. * * * On March 1, 1932, I purchased another lot of them. I would not have bought the- lot except for what they told me then. I would not have bought. I didn’t want to buy it. That lot is not worth anything to me now. -I can’t sell it.” He further testified that he was 68 years of age, and had done some business during that time selling farm products; that he had made -a similar complaint against one Armstrong for swindling him in the sale of cemetery lots, but settled it and withdrew the complaint; that if the defendants paid him $1,20.0 “it would be all right with- me. That .is why I -started this prosecution. T was beat.” The only statements in any way tending to support the charge of obtaining the money of the complaining witness by false pretenses are: 1. That the cemetery would be moved upon block T. 2. That the lot purchased by him would be resold by August 1,1932, and he would be paid $1,200 for it. The first of these was clearly a representation as to a future event, and the second a promise or undertaking to do something in the future. The rule of law is well established that, to sustain a conviction, “The false pretenses must refer to some existing fact, and statements concerning what would occur in the future are not a sufficient basis for the charge.” People v. Segal (syllabus), 180 Mich. 316. See, also, Biddle v. United States, 84 C. C. A. 415 (156 Fed. 759); 25 C. J. p. 589, and 11 R. C. L. p. 831. It is apparent that the purpose of the complaining witness was not to secure a conviction under the criminal law, but to compel the defendants to pay to him the money to which he claimed to be entitled. “It is right that men should pay their debts, and not culpable for creditors to collect by legitimate means and methods; but making' merchandise of the criminal law is not a lawful method.” Koons v. Vauconsant, 129 Mich. 260, 263 (95 Am. St. Rep. 438). The testimony taken on the examination disclosed no violation of the statute, and the motion to quash the information and discharge the defendants should have been granted. An order will be here entered remanding the case, with instructions to do so. McDonald, C. J., and Weadook, Potter, North, Fead, Wiest, and Butzel, JJ., concurred.
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Dethmers, J. This is a products liability case. Defendant manufactured and sold a hose and coupling to plaintiff’s employer for use in the transmission of gaseous oxygen. While plaintiff was delivering a truck-load of gaseous oxygen to one of his employer’s customers, the hose and coupling, through which the gas was being transmitted from the truck into the customer’s receiving tank, exploded, causing plaintiff great physical injury. In this action, brought to recover his resultant damages, plaintiff alleged in Count 1 of his complaint filed herein that defendant was liable on the ground of breach of an implied warranty in that the hose and coupling had been defective and not suitable for what defendant knew was the intended use, and, as alleged in Count 2, that defendant had been guilty of negligence which was a proximate cause of the explosion and injuries to plaintiff. On trial a jury returned a verdict of no cause for action. Plaintiff appealed to the Court of Appeals, which affirmed. The case is now here on leave to appeal granted. Plaintiff’s brief states the question involved here to be, “Did the lower court err in failing to charge on the theory of implied warranty?” Plaintiff concedes that at the conclusion of the proofs and trial he had failed to prove or make out a case of defendant’s negligence. He wishes to have his case rest entirely on the theory of breach of an implied warranty. In plaintiff’s first count, relying on breach of implied warranty, he alleged “that the hose and coupling were not proper or suitable for the use intended nor reasonably safe for such purpose and were not constructed in proper design, of proper material or of proper workmanship but were on the contrary of improper design, improper material and of improper workmanship, were not suitable for the transmission of gaseous oxygen under circumstances to be expected or foreseen and were in fact dangerous and unsafe for such use and were subject to explosion, the igniting of the contents of said hose and coupling;”. This amounts to an allegation of defect in the product as it left defendant’s place of manufacture. To this plaintiff has continued to adhere. If proved, it would establish a case of breach of implied warranty. The court instructed the jury as follows: “To recover, the plaintiff, Mr. Heckel, must show * * * the following things. Number one, # # * that there was a defect in the hose assembly when it left the manufacturing plant of the defendant. “And he must also show that the defect was a proximate cause of the injury in this case. * * * ” The substance of that charge was repeated a number of times in the judge’s instructions. It constitutes a correct and proper statement of the law with respect to liability for breach of implied warranty and what plaintiff must prove to be entitled to recover under that theory. Piercefield v. Remington Arms Company, Inc. (1965), 375 Mich 85; Manzoni v. Detroit Coca-Cola Bottling Company (1961), 363 Mich 235; Rex Paper Company v. Reichhold Chemicals, Inc. (W D Mich, 1966), 252 F Supp 314; Barefield v. La Salle Coca-Cola Bottling Company (1963), 370 Mich 1. As defendant says in his brief, all of these cases stand for the proposition that there must be a defect attributable to the manufacturer and a causal relationship between that defect and the injury complained of in order for there to be recovery on implied warranty. Our answer, then, to plaintiffs’ statement of questions involved is that the court did not err in failing to charge on the theory of implied warranty because it did not fail to do so, but, on the contrary, instructed as to the very substance and essence of that theory even if not expressly mentioning it by that term or attaching that name or label to it. Finally, plaintiff complains that the trial judge did not charge the jury that in order for plaintiff to recover on the theory of implied warranty it was not necessary to prove negligence of the defendant. Plaintiff intimates that the judge’s charge really gave the jury the impression that it was required of plaintiff to prove such negligence to recover for breach of implied warranty. To that, we say, in the first place, that a careful study of the entire set of instructions by the court to the jury reveals that neither directly nor by implication did the judge tell the jury anything of the sort as to need of proof of negligence. It just simply is not in the charge. Second, it is not necessary for the court to catalogue or enumerate all the things which a plaintiff need not prove, so long as the instruction correctly states what are the necessary elements of the theory which must he proved. That the court did here, in line with the authorities above cited. Affirmed. Costs to defendant. T. E. Brennan, C. J., and Kelly, Black, Adams, and T. G. Kavanagh, JJ., concurred with Dethmers, J. T. M. Kavanagh, J., concurred in the result.
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T. G. Kavanagh, J. Viewed most favorably to tbe plaintiffs, tbe facts are as follows: On tbe evening of April 4,1965 defendant Williams was driving the car of his employer, defendant Thornton, while on his employer’s business. He parked the car near the intersection of Miami and Beatrice Streets on Detroit’s lower southwest side, left the keys in the ignition, failed to lock the doors and may have left the motor running. While so left a group of minors took the car for a “joyride”, and, while joyriding, they crossed the centerline of a highway and collided with plaintiff’s car, killing one and severely injuring five of the other occupants of plaintiff’s car. The plaintiffs then sued the defendants. They claimed that the defendant’s negligence (“leaving of the keys in the ignition and/or neglecting to shut off the motor of the vehicle and lock and secure the vehicle * * * ”) was the proximate cause of their various injuries. On August 3,1966 defendant moved to dismiss the plaintiffs’ suit on two grounds: first, that the matter was settled in an action brought by plaintiffs under the uninsured motorist provision of their own insurance policy; and second, that the pleading failed to state a cause of action upon which relief could be granted. The court withheld ruling on the first ground and granted summary judgment on the second. Application for delayed appeal was denied by the Oonrt of Appeals but granted by this Court. In granting summary judgment the trial judge relied on Corinti v. Wittkopp (1959), 355 Mich 170. We there held that violation of an ordinance prohibiting leaving keys in an unattended car parked on a public street or alley was not negligence per se and such ordinance violation could not, as a matter of law, be the proximate cause of an accident when that car is stolen and “hours, days or weeks after the theft” is involved in such accident. The trial judge felt constrained by that decision to grant the defendants’ motion for summary judgment. Quoting from Corinti, he reluctantly held that “ ‘A motor vehicle driver has no duty to protect others from the actions of thieves who steal his car with the use of the driver’s own keys * # * ’ ”. We hold that such constraint is not warranted. A judgment for the defendant, in an action such as this, can properly be made only upon a determination a) that the defendant did act as a reasonably prudent man would have acted under the same or similar circumstances or b) that the plaintiff suffered no injury, or c) the defendant’s negligence did not cause the plaintiff’s injury, or d) that the injury caused plaintiff was too insignificantly connected to or too remotely effected by the defendant’s negligence. For a proper grant of summary judgment for the defendant, a trial judge must rule that all reasonable men would agree on the conclusion of a), b), e), or d) above. The trial judge in this case determined the defendant owed the plaintiff no duty. We believe this conclusion could properly be made only by a jury. The law of negligence is that an actor is held to the standard of a reasonable man. The determina tion of the facts upon which the judgment of reasonableness is based is admittedly for the jury. The confusion springs only the labelling — for negligence is a ruling of law implicitly made by the finder of fact. This ruling may not be prescinded from the fact finder except on a determination that all reasonable men would agree. (Normand v. Thomas Theatre Corporation [1957], 349 Mich 50, p 54 et seq.) The ultimate determination of reasonableness is a determination of law — the law of the case. Injuries are not the issue here, and properly speaking, neither should the question of defendant’s negligence be regarded as the issue here. The City of Detroit has adopted the following ordinance : “No operator, except those of commercial vehicles, shall leave a motor vehicle unattended at the curb or other place to which the public has access unless the operator shall first shut off the motor and lock the motor vehicle or some part thereof as to prevent the starting and operation of the motor vehicle.” (City of Detroit Code § 38-8-5.) and violation of it is itself evidence of negligence. Reason and the common law support this position. Such an ordinance exists by virtue of the police power of the city government to promote the health, safety, and welfare of its citizens. The ordinance contemplates that a key left in the ignition is dangerous, not because it is then harmful, but because it creates a condition likely to cause harm. The instrument or actuating cause of the harm would necessarily be a person who would start the engine. Such a person could be an inexperienced child, a joyriding youth or a thief. The harm that could be caused presupposes a meddler who will necessarily harm the owner of the vehicle but far more importantly, the theft threatens society. “On March 1, 1968, the Attorney General of the United States and nineteen responsible organizations, including national associations of mayors, police chiefs, district attorneys, municipal law officers, launched the National Auto Theft Prevention Campaign in a nation-wide effort to reduce automobile theft. * # * The data distributed by the Campaign included the estimates that in 1966 more than a million cars were stolen nationally and that about 24% of the stolen vehicles were involved in accidents. * * * The accident rate for stolen cars is estimated to be approximately 200 times the normal accident rate. * * * A study has disclosed that of the total cars stolen, the key had been left in either the ignition or in the car in 42.3% of the cases. In an additional 16.7% of the cases the motorist invited theft by leaving the ignition unlocked. * * * Moreover, the authorities point out that auto theft is to a large extent a crime of opportunity, unusually inviting to young people, and is often the first major episode in a criminal career [U.S. Dept. of Justice, Criminal Division, Survey 7, p 8].” Cited in Gaither v. Myers (1968), 131 App DC 216, 222, 223 (404 F2d 216, 222, 223). Tile circumstances reflected in suck statistics (entirely apart from any ordinance) make it obvious that a jury might conclude that a reasonable man would not have left his key in the ignition of his car under the circumstances confronted by defendant Williams. In Detroit & M. R. Co. v. Van Steinberg (1868), 17 Mich 99, 120, Justice Cooley best expressed this Court’s attitude towards summary determination of negligence: “The case, however, must be a very clear one which would justify the court in taking upon itself this responsibility. For, when the judge decides that a want of due care is not shown, he necessarily fixes in his own mind the standard of ordinary prudence, and, measuring the plaintiff’s conduct by that, turns him out of court upon his opinion of what a reasonably prudent man ought to have done under the circumstances. He thus makes his own opinion of what would be generally regarded as prudence a definite rule of law. It is quite possible that, if the same question of prudence were submitted to a jury collected from the different occupations of society, and perhaps better competent to judge of the common opinion, he might find them differing with him as to the ordinary standard of proper care.” But determination of negligence alone does not end the inquiry. Once a jury or judge has found that the defendant was negligent and that the plaintiff suffered injuries, it must be determined, whether the plaintiff’s injuries were caused by the defendant’s wrongful conduct and, then, if the defendant did cause the injuries, judge whether the plaintiff’s injuries were too insignificantly related to or too remotely effected by the defendant’s negligence. Of all the elements necessary to support recovery in a tort action, causation is the most susceptible to summary determination for it usually amounts to a logical connection of cause to effect. However, any doubts about the connections between the causes and the effects, should be resolved by the jury. But in question here is first, whether leaving the keys in the ignition was too remote a cause of the resulting collision, and second, if leaving the keys in the ignition was not too remote a cause of the collision, whether the theft was an independent cause which severed the causal relationship. It must he kept in mind, however to he decided by us is not whether leaving the keys in the ignition caused the accident — nor whether the accident was too remote an effect of such act. Bather it must be decided if reasonable men could differ on this point. We hold they could. To establish proper perspective it is helpful to recall the proper role of foreseeability. It has a bearing on the question of negligence and it also has a bearing on the question of the independence of intervening causes. I. Foreseeability and Negligence Foreseeability of any harm is one of the factors a jury may consider in determining if the defendant acted reasonably under all the circumstances. Such determination can best be made by considering only those facts existing up to the time of the injury— should the defendant have reasonably foreseen that what he was doing or had done up to then might cause harm — if so, he was negligent. The jury must then bridge the gap between the plaintiff’s injuries and the defendant’s negligence. This is the determination of cause and the remoteness of the effect. Once negligence is determined, foreseeability of harm should no longer be considered. Causation is a process of logical determination, while the significance of the connections — remoteness — is a policy determination. “It appears that the modern trend of judicial opinion is in favor of eliminating foreseeable consequences as a test of proximate cause, except where an independent, responsible, intervening cause is involved. The view is that once it is determined that a defendant was negligent, he is to be held responsible for injurious consequences of his negligent act or omission which occur naturally and directly, without reference to whether he anticipated, or reasonably might have foreseen such consequences. Apparent inconsistencies between this view and the language of former decisions has been explained on the ground that while in many instances the decisions have spoken of foreseen or foreseeable consequences as a test of proximate cause, what the court really had in mind was liability for negligence without differentiating between the original question of whether there was a breach of duty to use due care and the question of proximate cause. Logically, the question of liability is always anterior to the question of the measure of the consequences that go with liability, and where there is no tort there is no question of remote or proximate cause. On the question of what is negligence, it is material to consider the consequences that a prudent man might reasonably have anticipated; but when negligence is once established, that consideration is wholly immaterial on the question of how far it imposes liability. There is no need for discussing proximate cause in a case where the negligence of the defendant is not established, but when his negligence has been established, the proximate result and amount of recovery depend upon the evidence of direct sequences, and not upon defendant’s foresight.” 38 Am Jur, Negligence, §§ 58, 709, 710. (Emphasis added.) The determination of remoteness, however, should seldom, if ever, be summarily determined. Selleck v. Lake Shore & M. S. R. Co. (1892), 93 Mich 375; Harding v. Blankenship (1936), 274 Mich 118; Com- stock v. General Motors Corporation (1959), 358 Mich 163. Both the determination of remoteness and of negligence should almost always he left to the jury. “ ‘As to both, they present, from their very nature, a question, not of law, but of fact, depending on the peculiar circumstances of each case, which circumstances are only evidential of the principal fact— that of negligence or its effects — and are to be compared and weighed by the jury, the tribunal whose province it is to find facts, not by any artificial rules, but by the ordinary principles of reasoning; and such principal fact must be found by them, before the court can take cognizance of it, and pronounce upon its legal effect.’ ” Detroit & M. R. Co. v. Van Steinberg, supra, at 122. In analyzing the causation issue in this case we have to consider the problem of the intervening joyriders and the remoteness of the injuries from the keys left in the car. II. Foreseeability and Intervening Causes The general rule — that an intervening, independent and efficient cause severs whatever connection there may be between the plaintiff’s injuries and the defendant’s negligence (Fowles v. Briggs [1898], 116 Mich 425; 38 Am Jur, Negligence, § 68, p 724 et seq.) — is not controlling if the intervening act was reasonably foreseeable. 38 Am Jur, Negligence, § 70, p 726 et seq., Skinn v. Reutter (1903), 135 Mich 57 and also Comstock v. General Motors Corporation (1959), 358 Mich 163 where we quoted with approval 2 Restatement Torts, § 447, p 1196: “The fact that an intervening act of a third person is negligent in itself or is done in a negligent manner does not make it a superseding cause of harm to another which the actor’s negligent conduct is a substantial factor in bringing about, if (a) the actor at the time of his negligent conduct should have realized that a third person might so act, or (b) a reasonable man knowing the situation existing when the act of the third person was done would not regard it as highly extraordinary that the third person had so acted.” "We have already discussed, above, the conditions prompting the passage of the city ordinance, — it was intended to prevent, first, the meddlers and, second, the consequences of their meddling — one of which consequences is the threat to life and property posed by a fleeing thief or joyriding youth. We therefore hold that reasonable men might have concluded that leaving the keys in the ignition under these circumstances was not too remote a cause of the plaintiff’s injuries and that the joyrider’s intervention did not sever that causal connection. Under the totality of these circumstances we hold it was improper for the trial judge to have granted summary judgment. Reversed and remanded for trial. T. E. Brennan, C. J., and Black, T. M. Kavanagh, and Adams, JJ., concurred with T. Gr. Kavanagh, J. Nor a reaffirmanee of this Court’s attitude toward summary determination of negligence see Kevreson v. Michigan Consolidated Gas Company (1965), 374 Mich 465, especially the footnote on p 475. See Khoyan v. Turner (1969), 255 Md 144 (257 A2d 219) where it was held that violation of ordinance and statute prohibiting leaving keys in the ignition was evidence of negligence as to the resulting accident and should go to the jury. Ney v. Yellow Cab Company (1954), 2 Ill 2d 74 (117 NE2d 74, 51 ALK2d 624) where it was said that the statute contemplates a foreseen meddler. See Justus v. Wood (1961), 209 Tenn 55 (348 SW2d 332, 349 SW2d 793) and Ney v. Yellow Cab Co., supra, at 79. See Berry v. Visser (1958), 354 Mich 38, p 45 et seq. and also Barnebee v. Spence Brothers (1962), 367 Mich 46, p 52. See our comments in the case of Hawkins v. Ermatinger (1920), 211 Mich 578, 584: “An automobile is not dangerous in the same sense as a ferocious beast loose on the streets. Until human agency intervenes, it is usually harmless. The hazard results from the conduct of the driver rather than the nature of the vehicle. It possesses, however, when recklessly driven, such power to do injury as to justify stringent regulations, not only of the vehicle itself but of the operator, for the safety of persons and property on the public ways.” See also Colborne v. Detroit United R. Co. (1913), 177 Mich 139, 149, 150: “In the light of common knowledge courts can well take judicial notice of the automobile, not only as a most useful and pleasing means of swiftly transporting persons and property for pleasure or business, when properly controlled and cautiously driven, but as a vehicle in its possibilities so destructive when in the hands of careless and reckless drivers as to spread over the land the maimed and dead until it has belittled the cruelties of the car of Juggernaut.” See the leading ease on keys in the ignition and foreseeability in Ross v. Hartman (1943), 78 App DC 217 (139 D2d 14) and footnote 2 above. See Hergenrether v. East (1964), 61 Cal 2d 440 (393 P2d 164, 39 Cal Rptr 4) where the totality of the circumstances test was employed in a “key in the ignition” case and where there was not a prohibiting ordinance in effeet. In our view, the ordinance in this case is an affirmation of the common law-
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Per Curiam. Defendant was charged with being an inmate in possession of a weapon which might be used to injure a convict or to assist a convict to escape. MCLA 800.283; MSA 28.1623; 1909 PA 17 as amended by 1972 PA 105. The determinative issue is whether the 1972 amendment to § 3 of 1909 PA 17 violates the title-object limitation in Const 1963, art 4, § 24. The circuit court quashed the information on the grounds that the statutory language did violate the title-object limitation, but the Court of Appeals reversed over the dissent of Judge Maher. 69 Mich App 495; 245 NW2d 106 (1976). Pursuant to GCR 1963, 853.2(4), in lieu of leave to appeal, we reverse the Court of Appeals and reinstate the judgment of the circuit court. 1909 PA 17 was designed to keep weapons, liquor and narcotics out of the state prison system. The act was entitled as follows: "AN ACT to prohibit the bringing into prisons of all weapons, or other implements which may be used to injure any convict or person or in assisting any convict to escape from punishment, or the selling or furnishing of same to convicts; to prohibit the bringing into prisons of all spirituous or fermented liquors, drugs, medicines, poisons, opium, morphine or any kind or character of narcotics, or the giving, selling or furnishing of spirituous or fermented liquors, drugs, medicines, poisons, opium, morphine or any other kind or character of narcotics to convicts or paroled prisoners and providing a penalty for the violation hereof.” 1909 PA 17 (Emphasis supplied). Before its amendment in 1972, § 3 of 1909 PA 17 prohibited the following conduct: "No weapon or other implement which may be used to injure any convict or person, or in assisting any convict to escape from imprisonment, shall be sold, given away or furnished to any convict in any prison, or any building appurtenant thereto, or on the land granted to or owned or leased by the state for the use and benefit of the prisoners; nor shall any weapon or other implement which may be used to injure any convict or person, or in assisting any convict to escape from imprisonment, be brought into any prison or any building appurtenant thereto, or onto the land granted to or owned or leased by the state for the use and benefit of the prisoners; nor shall any weapon or other implement, which may be used to injure any convict or person, or in assisting any convict to escape from imprisonment, be sold, given away, or furnished, either directly or indirectly, to any convict either in or anywhere outside of the prison, or be disposed of in such a manner, or in such a place that it may be secured by any convict in the prison.” (Emphasis supplied.) In 1972, the Legislature added one sentence to §3: "A convict without authorization, shall not have on his person or under his control or in his possession any weapon or other implement which may be used to injure any convict or other person, or to assist any convict to escape from imprisonment.” (Emphasis supplied.) The 1972 amendment did not alter the act’s title. For this reason, defendant contends that the statute as it now reads violates Const 1963, art 4, §24: "No law shall embrace more than one object, which shall be expressed in its title.” We agree that the 1972 amendment, proscribing possession by a convict of a weapon, exceeds the scope of the title which proscribes as to weapons their being brought into prisons or sold or furnished to convicts. The instant violation of the title-object limitation is of the same species as that referred to in Maki v East Tawas, 385 Mich 151; 188 NW2d 593 (1971). The Court held there that § 7 of the governmental tort liability act, MCLA 691.1401 et seq.; MSA 3.996(101) et seq., providing that governmental agencies were immune from "tort liability”, was invalid because it exceeded the scope of the title of the act. The act’s title created immunity for the narrower class of governmental acts "caused by negligence”. As in Maki, the body of the present statute (as amended), speaks more broadly than its restrictively-speaking title. The original legislation appears to be aimed at the acts of persons other than the convict who "sold”, "gave”, "furnished”, or "brought” the designated contraband to a convict in prison. The title of 1909 PA 17 accurately reflects this focus. Indeed, it appears that the acts charged in the information could not have been punished under the statute as it read prior to the 1972 amendment. The prosecutor states in his brief that the defendant "was charged with being a convict who, without authorization, had possession of a sharpened spike, a weapon or other instrument being of the type which may be used to injure a convict or other person or to assist a convict to escape”, a violation of MCLA 800.283; MSA 28.1623. It was the 1972 amendment that enlarged the scope of the persons subject to prosecution under the act to include the convicts themselves should they "control” or have "possession” of a proscribed weapon. Yet, the act’s title does not reveal the existence of this new criminal class. The Legislature did not in the first instance choose a broad and comprehensive title. This omission in the title is fatal and renders the 1972 amendment unconstitutional. Reversed. Kavanagh, C. J., and Williams, Levin, Ryan, and Blair Moody, Jr., J., concurred.
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Black, J. Leave was granted (382 Mich 791) to review and decide the question left undetermined by a majority of the Court in In re Critchell Estate (1960), 361 Mich 432. That question is whether, under MCLA § 704.56 (Stat Ann 1962 Rev § 27.3178 [307]) a decedent’s policy of liability insurance constitutes an “after discovered” asset of his estate, in the context of Critchell and now in this case of Hiñe. Our answer is negative. Other questions raised in the present plaintiff’s brief are not properly before us, it appearing that all are justiciable in a separate' and pending action which was commenced by plaintiff against the decedent’s liability insurer, State Farm Insurance Company. As to this separate action, see Judge Fitzgerald’s reference thereto with observation that it is “still subject to the wisdom of the circuit court of Wayne County.” (17 Mich App at 450.) So far as concerns the respective opinions of Critchell, we join Division 1 in holding that (p 451): “The quoted portion of § 56 is intended to prevent tardy claimants from reopening and confusing the disposition of an estate closed more than three months before, and is not intended to bar a prompt attempt to reach an after-discovered asset of the estate.” (Citing Young v. Moore [ED Mich, 1954], 127 F Supp 265 and Melvin v. Reading [1956], 346 Mich 348.) The only opinion of Critchell which touches today’s question is that of Justice T. M. Kavanagh, with whom Justices Edwards and Souris concurred. As for the opinion of Justice Carr, supported as it was by Justices Dethmers, Kelly and Talbot Smith, that opinion and the “inferential interpretation” which the present plaintiff offers made no precedent for want of five endorsers thereof. See reference to the Breckon case, supra, by footnote. To set the stated question at rest, the writer advises the profession that had he been ethically eligible to participate in the Court’s decision of Critchell, he would have endorsed Justice T. M. Kavanagh’s mentioned opinion. Being now of like view, the undersigned adopts and applies that opinion to this case of Hins, the essential facts of Critchell being the same as here shown. For elaboration, see the factual statement of Division 1 (pp 448-450). The thrust of such statement is that counsel for this plaintiff had actual knowledge of all facts, certainly by July 3, 1964, which should have galvanized him to prompt action for his client, either in the probate court or by suit in the circuit court against the then validly appointed and acting fiduciary of the Curzenski estate. On that pre-fourth of July date counsel had until August 12, 1964 to act as above. Thereafter he and his client were possessed of another right, that of petitioning within 90 days for setting aside of the closing order of August 12, 1964, pursuant to CL 1948, §701.19 (Stat Ann 1962 Rev §27.3178 [19]). Yet nothing was done until, pertinently, the jurisdiction of the probate court had passed into history. Fourteen years ago, in Melvin v. Reading (1956), 346 Mich 348, 354, we tried to advise lawyers consulted and retained as here to “Sue first and talk afterward.” As in Critchell, supra, and now here, that advice seems “to have fallen upon deaf ears. As this latest “mournful result” (Melvin, supra at 353) comes to record in our books, it is in order that mention be made of a fact all concerned with cases as at bar should carefully consider. It is that our courts must decide them as if no liability insurance existed. Any liability which accrued against a decedent during his lifetime became his liability, whether he had that liability insured or not. When he dies his fiduciary must respond whether the injured person has or has not sued before the death occurred. Hence, if the person injured has not sued prior to the death, and has not made timely claim against the decedent’s estate or commenced timely suit against the latter’s fiduciary (see Kangas v. Lefkco [1963], 369 Mich 341), no remedy survives save upon some showing of fraud committed by any one or several whom equity may hold responsible for the consequences of that fraud. Such is the purpose as well as the effect of our probate code. It is equally in order that mention be made of Division l’s significant comment: “This result would impose the bar of a statute of limitation of three months on this negligence claim instead of the three years normally available under the applicable negligence injuries statute.” True indeed. As in Boike v. City of Flint (1965), 374 Mich 462, 464 and again in Trbovich v. Detroit (1966), 378 Mich 79, 88 (forerunning Grubaugh v. City of St. Johns [1970], 384 Mich 165), such comment prompts observation that the constitutionality of application of the claim-barring provisions of § 704.56, to a setting as at bar, has not as yet been put to judicial test. Affirmed. All costs will abide the result of the pending suit of Hinz v. State Farm. T. M. Kavanagh, C. J., and Adams and T. E. Brennan, JJ., concurred with Black, J. T. Gr. Kavanagh, J., concurred in the result. Swainson and Williams, JJ., did not sit in this case. No_ opinion of Critchell was endorsed by a majority of our then eight-man Court. The result was no precedent. See Breckon v. Franklin Fuel Company (1970), 383 Mich 251, 278, 279. The quotation is from the opinion below, p 452. The date he wrote State Farm that he had been retained by the plaintiff.
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Swainson, J. In the instant case, appellant Matish was defense counsel for a defendant charged with a felony crime in the Recorder’s Court for the City of Detroit. On April 15,1969, George G. Matish appeared before Hon. Frank G. Schemanske, Judge of the Recorder’s Court of Detroit, on behalf of Norman Ray Thornhill. Judge Schemanske set Monday, April 21, 1969, as the date of trial for said Thornhill. The following colloquy occurred between court and counsel on April 15, 1969: “The Court: Now I will not adjourn the case from the 21st. If you can’t try it, get someone else in your office to try it. “And in view of the activity of this defendant— and all of these activities have been just, in that kind of a situation — and therefore the Presiding Judge asked me to set it for trial. “I am setting it on the 21st. If you can work out a plea before the 21st before the Presiding Judge it is okay with me. “Mr. Matish: Very well, your Honor. Thank you. “The Court: All right, but get someone else to try it on the 21st.” On April 21, 1969, an associate of Mr. Matish, Myzell Sowell, appeared before Judge Schemanske, and at that time the following colloquy took place between the court and Mr. Sowell: “The Court: This case goes to trial. Bring the jury in. “Mr. Sowell: Your Honor, I just wanted to add that Mr. James Roberts of our office who has some familiarity with this case is available for the trial of it if this is agreeable with Mr. Thornhill. He is acquainted with Mr. Roberts, he is aware of his competency in the trial of lawsuits, plus the fact that he is acquainted with the facts and the applicable law. “The Court: I assigned this case to the Defender’s Office. “Mr. Sowell: That is correct, your Honor. “The Court: I informed Mr. Matish that we are going to trial. “Now if this case does not go to trial, I will sentence Mr. Matish for contempt of court. “Mr. Sowell: We are prepared to go to trial. “The Court: All right. “Mr. Sowell: I was only explaining to the court that Mr. Boberts would be representing Mr. Thorn-hill. He is acquainted with him. “The Court: Whoever represents him represents him. The Defender’s Office has been assigned to defend this individual, so therefore I will permit whoever is assigned.” The matter did not proceed to trial on April 21, 1969, but, in fact, was adjourned for one day after a lengthy dialogue between the court and Norman Bay Thornhill, wherein defendant Thornhill raised the issue, among others, that he wanted the matter remanded so that he might have a preliminary examination which had theretofore been waived. On April 22, 1969, the defendant, Norman Bay Thornhill, did plead guilty to the offense of attempted possession of burglar tools, and his plea was accepted by the court. On Monday, April 28, 1969, George G. Matish appeared before Judge Frank G. Schemanske and was adjudged guilty of contempt of court, presumably for not being personally present on April 21. He was sentenced to a $50 fine, or 10 days in the county jail. On January 29, 1970, Division 1 of the Court of Appeals, by Per Curiam opinion, sustained the trial judge. It is fundamental that courts of record, as part of their judicial power, may punish persons for contemptuous disobedience to the court. (MCLA §§ 600.1701, 600.1711 [Stat Ann 1962 Rev §§ 27A.1701, 27A.1711] ).■ The crux of the issue here is whether appellant Matish failed to comply with the order of the court to assure the presence of counsel on the designated trial date in order that defendant Thornhill be tried on the charges pending against him. The power to punish for contempt is awesome and carries with it the equally great responsibility to apply it judiciously and only when the contempt is clearly and unequivocally shown. Arthur v. The Superior Court of Los Angeles County (1965), 62 Cal 2d 404 (42 Cal Rptr 441, 398 P2d 777), describes very succinctly the necessity for such authority (p 411): “When an attorney fails to appear in court with his client, particularly in a criminal matter, the wheels of justice must temporarily grind to a halt. The client cannot be penalized, nor can the court proceed in the absence of counsel. Having allocated time for this case, the court is seldom able to substitute other matters. Thus, the entire administration of justice falters. Without judicious use of contempt power, courts will have little authority over indifferent attorneys who disrupt the judicial process through failure to appear.” In order for there to be a contempt, it must appear that there has been a wilful disregard or disobedience of the authority or orders of the court. Whether such a wilfulness was displayed is something we must ascertain from the record before us and, after a careful review, we conclude the record permits of no such reasonable inference. Judgment reversed. T. M. Kavanagh, C. J., and Adams, T. Gr. Kavanagh and Williams, JJ., concurred with Swainson, J. People v. Matish (1970), 21 Mich App 238. Leave granted 383 Mich 778.
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Rehearing denied.
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Rehearing denied.
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Per Curiam. In this matter we are asked to review a disciplinary order of the State Bar Grievance Board issued pursuant to Rule 15 of the rules concerning the State Bar of Michigan for violation of Rule 14 of those rules. The order of discipline provides for the suspension of respondent’s license to practice law for a period of three months, and the payment of costs to reimburse the State Bar for expenses incurred in processing the grievance. The charge against the respondent was that he failed to prosecute diligently a suit for divorce which he started on behalf of a client after being retained to do so. The evidence presented to the hearing panel clearly established that the client paid the respondent $150 in September, 1968 that he filed the complaint in November 1968; obtained a preliminary injunction and order for attorney fees upon filing the suit; and that thereafter he did nothing in the matter with the result that the suit was dismissed for lack of progress in January, 1970. After ignoring three letters from the office of the State Bar Grievance Administrator asking his explanation of the matters asserted in the complaint, the respondent answered the formal charge and testified before the hearing panel in October 1970. The panel’s Order for Discipline on review by the Grievance Board on Respondent’s petition, was affirmed in all respects except the period of discipline was reduced from six to three months. The only matter urged by respondent in this review is stated: “Whether Respondent-Appellant * * * was involved in unprofessional conduct in violation of the Michigan Supreme Court Rules and Canons of Ethics so as to justify a three-months suspension from the practice of lawf’ He argues that the board should not credit the client’s version that the $150 was to represent the whole fee for his services in light of the fact that this amount is less than the recommended minimum. He urges that in face of his 15 years of good professional practice, the board should give greater credibility to his version that this sum amounted only to a partial retainer and that the client prom ised additional money before the suit would be processed. Although he acknowledges that the credit to be accorded witnesses’ testimony is specially in the province of the fact finder, by asking us to say they erred in this circumstance, we are persuaded respondent bespeaks a woeful misconception of a lawyer’s responsibility under our rules and the canons of ethics. Once a lawyer accepts retainer to represent a client he is obliged to exert his best efforts wholeheartedly to advance the client’s legitimate interests with fidelity and diligence until he is relieved of that obligation either by his client or the court. The failure of a client to pay for his services does not relieve a lawyer of his duty to perform them completely and on time, save only when relieved as above. Thus crediting fully respondent’s version of the transaction here involved his failure to prevent dismissal of the suit for lack of progress under the circumstances he describes is a violation of Canon 21 and misconduct warranting discipline under Rule 14. In urging that the sanction imposed is too severe, respondent argues that it is highly penal and that the complainant will receive no reparation for the grievance. He says that there was no misrepresentation, misappropriation, or misuse of funds involved and that the sanction simply permits a disgruntled client to vent her spleen and satisfy her real anger against her husband which she could not do because of her own failure to pay the required fee. This brings into sharp focus the real purpose of these proceedings. Whatever the motive of the complainant in invoking the grievance procedure, the responsibility of our profession is to provide a fair and full method of ascertaining the validity of the complaint and imposing such sanction on a lawyer’s conduct as may be warranted in the public interest. In this procedure we are not concerned with enforcing the rights of the individuals involved. The civil courts are provided for that. Rather here we seek to make sure that all of us who hold ourselves out to the public as counsellors and agents in the administration of justice will so conduct ourselves as to merit the trust imposed in us. We are satisfied from our examination of the record and consideration of the arguments that the discipline imposed is appropriate. Conscious that every dereliction of our professional brothers diminishes us all we affirm the order of discipline in this case. Respondent shall pay to the State Bar of Michigan the costs of this review. T. M. Kavanagh, C. J., and Black, Adams, T. E. Brennan, T. G. Kavanagh, Swainson, and Williams, JJ., concurred. Canons of Professional Ethics No 21.
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Per Curiam. Pursuant to GCR 1963, 797 the United States District Court for the Eastern District of Michigan has certified the following question to us: "Whether the building contract fund act, 1931 PA 259, as amended; MCL 570.151 et seq.; MSA 26.331 et seq., applies to public construction projects.” We answer the question in the negative. I This case comes to us with the following statement of facts as certified by the United States District Court: "On October 16, 1976, defendant J. F. Cavanaugh Co., Inc. ('Cavanaugh’), entered into a written contract with the City of Detroit, designated as contract PC-288A, for the construction of a 400 ton per day oxygen plant for a price of $10,448,000. Cavanaugh supplied a payment bond in that amount issued by the defendant The Travelers Indemnity Company ('Travelers’), as surety. "On November 30, 1976, defendant Cavanaugh entered into a written contract with plaintiff Air Products and Chemicals, Inc. ('Air Products’), under the terms of which Air Products agreed to furnish to Cavanaugh certain design and engineering services, material, and equipment in the prosecution and performance of the work under the contract between Cavanaugh and the city. Cavanaugh was to pay Air Products $7,400,000 for such work subject to certain adjustments. "Under the terms of the contract between Air Products and Cavanaugh, Air Products was required to submit to Cavanaugh on the 25th day of each calendar month invoices for items of work completed during that month. Cavanaugh was then obligated to add no more than 5% to the Air Products price and to promptly submit its invoices to the city for Air Products items of work. Upon receipt by Cavanaugh of payment from the city for work performed by Air Products, Cavanaugh was to pay Air Products within two working days, net of the city’s retainage. Cavanaugh did not elect to add the 5% markup on invoices submitted to the city. "Construction of the oxygen plant under contract PC-288A has been substantially completed. To date, Cavanaugh has been paid approximately $10,322,000 by the City of Detroit. Cavanaugh has paid Air Products approximately $6,500,000 upon their agreement. Cavanaugh has received but not paid to Air Products approximately $805,000 from the city for work performed by Air Products. "Air Products filed its action on June 10, 1980 against Cavanaugh and its surety, Travelers, in this court alleging, among other matters, existence of a trust fund under the building contract fund act, 1931 PA 259, as amended; MCL 570.151 et seq.; MSA 26.331 et seq. "Cavanaugh and Travelers as part of their answer to the complaint denied that the act applied to public projects. Cavanaugh filed a counterclaim alleging breach of the agreement, seeking damages from Air Products in excess of $900,000. "In October, 1980 Air Products brought a motion for summary judgment upon count I (breach of contract) and count V (building contract fund act) of its complaint. "On December 24, 1980, the court granted Air Products’ motion for partial summary judgment on count V (building contract fund act) and held that Air Products was entitled to immediate possession of trust funds in the amount of $805,108.60. Cavanaugh was further ordered to disburse those funds and to account for any other funds received from the city in payment for work done by Air Products. A copy of the court’s memorandum opinion and order, dated December 24, 1980, is attached hereto as exhibit 'A’. "Following issuance of the court’s memorandum opinion and order, Cavanaugh timely filed a motion for rehearing, citing the recent Michigan Court of Appeals decision in Earl Dubey & Sons, Inc v Macomb Contracting Corp, 97 Mich App 553; 296 NW2d 582 (1980), which held that the act does not apply to public contracts, citing with approval the dissenting opinion in Parker v Klochko Equipment Rental Co, Inc, 590 F2d 649 (CA 6, 1979). "The issue appropriate for certification to the Michigan Supreme Court pursuant to the provisions of GCR 1963, 797.2 is whether the building contract fund act, MCL 570.151 et seq., applies to public contracts. As indicated in its memorandum opinion and order, the court followed Parker, supra, which expressly held that the act does apply to public contracts. In its opinion, this court held that it was bound to follow and apply Parker. This court has held in abeyance enforcement of its memorandum opinion and order and a decision on Cavanaugh’s motion for rehearing pending the outcome of this certification. "This court finds that the following question is not now controlled by Michigan Supreme Court precedent. Accordingly, it is appropriate that it be certified to the Michigan Supreme Court pursuant to the provisions of GCR 1963, 797.2 for resolution.” II In National Bank of Detroit v Eames & Brown, Inc, 396 Mich 611; 242 NW2d 412 (1976), we considered the question of whether an unsecured creditor claiming under the building contract fund act, MCL 570.151 et seq.; MSA 26.331 et seq., has priority over a previously perfected security interest in all present and after-acquired contract rights, accounts, general intangibles, and chattel paper. In deciding this question we stated: "The purpose of the act is to create a trust fund for the benefit of materialmen and others under private construction contracts.” (Emphasis supplied.) 396 Mich 622. Additionally, in Club Holding Co v Flint Citizens Loan & Investment Co, 272 Mich 66; 261 NW 133 (1935), overruled on other grounds by B F Farnell Co v Monahan, 377 Mich 552; 141 NW2d 58 (1966), this Court had occasion to construe 1931 PA 259 and we stated: "The act in question stands alone, without any reference to another; it is in harmony with the various provisions of the mechanics’ lien law, and we cannot presume, in the absence of explicit language, that it was intended to apply to the erection of public buildings or to public works.” 272 Mich 72. Nevertheless, the United States Court of Appeals for the Sixth Circuit held in Parker v Klochko Equipment Rental Co, Inc, 590 F2d 649 (CA 6, 1979), that the act in question applies to public construction contracts. The dissent in Parker, however, relied on our decision in National Bank of Detroit v Eames & Brown, Inc. The Michigan Court of Appeals recently took note of this situation in Earl Dubey & Sons, Inc v Macomb Contracting Corp, 97 Mich App 553; 296 NW2d 582 (1980), lv den 410 Mich 897 (1981). The Court pointed to our decision in National Bank of Detroit v Eames & Brown, Inc, and to the dissent in Parker, and held that the building contract fund act does not apply to public construction contracts. Ill We reaffirm our rulings in National Bank of Detroit v Eames & Brown, Inc, and in Club Holding Co v Flint Citizens Loan & Investment Co that the act applies only to private construction contracts. It has no applicability to public construction contracts. Indeed we believe that the United States Court of Appeals for the Sixth Circuit in General Ins Co of America v Lamar Corp, 482 F2d 856 (CA 6, 1973), cited with approval in National Bank of Detroit v Eames & Brown, Inc, accurately analyzed the reason for the differentiation: "The legislative history of the Michigan statute itself is obscure. The briefs of the parties do nothing to illuminate it, and our research has not disclosed the exact circumstances of the statute’s enactment. Nevertheless, the date of its passage, 1931, identifies the act as one of a genre of Depression-era measures intended to afford relief to subcontractors and materialmen in the construction industry. "During the boom period of the 1920’s, speculative builders often undertook to construct projects too large for their available capital to finance, and they frequently paid suppliers and materialmen on older projects with funds received as payment on more current operations. With the advent of the crash of 1929 and the consequent widespread insolvency of many building contractors, these pyramided empires also collapsed and many subcontractors and suppliers were never paid. Subcontractors and materialmen on private projects were left only with mechanics’ liens as remedies, and these were often ineffective. See generally Grossman, Trust and Penal Provisions of the New York State Mechanics’ Lien Law, 5 Brooklyn L Rev 14, 16-22 (1935). "On the other hand, suppliers of labor and material on public projects were protected by statutorily required payment and performance bonds. These bonds required for public projects were intended 'to afford protection to the suppliers of labor or materials, similar to that afforded under the mechanics’ lien laws in the case of private buildings or construction.’ * * * "When Depression-era experience demonstrated the inadequacy of mechanics’ liens in many cases because the owner had a defense if he had paid the principal contractor, statutes like the Michigan Act of 1931 were enacted to afford a 'supplement to the Mechanics’ Lien Law’, providing a more effective remedy for private project suppliers against their principal contractors than they had previously.” The certified question is answered in the negative. Coleman, C.J., and Kavanagh, Williams, Levin, Fitzgerald, Ryan, and Blair Moody, Jr., JJ., concurred.
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Kavanagh, C. J. Pursuant to the Legislature’s request contained in House Concurrent Resolution No 691 and the letter of Governor Milliken dated August 24, 1976, we agreed to give an advisory opinion (Const 1963, art 3, § 8) on whether Act 183 of the Public Acts of 1964 as amended by Act 240 of the Public Acts of 1976 (MCLA 830.411 et seq.; MSA 3.447[101] et seq.; hereinafter "The Act”) violates Const 1963, art 9, §§ 12 and 15. We have been aided in this undertaking by the office of the Attorney General which has, in response to our request, submitted one brief supporting the conclusion of constitutionality, and one brief supporting the conclusion of unconstitutionality. We are grateful for this assistance. We are of the opinion that The Act does not violate either § 12 or § 15 of art 9, Const 1963. The specific questions asked are: I "May the state lease property from the State Building Authority under the provisions of Act No. 183 of the Public Acts of 1964, as amended by Act No. 240 of the Public Acts of 1976, and validly contract therein to pay the true rental value of the leased premises at fixed times over a period of years in light of Sections 12 and 15 of Article 9 of the State Constitution of 1963?” We answer in the affirmative. The Michigan Constitution is not a grant of power to the Legislature as is the United States Constitution, but rather, it is a limitation on general legislative nower. In re Brewster Street Housing Site, 291 Mich 313; 289 NW 493 (1939). Unless the Constitution contains limitations, the Legislature has general power to contract. We are asked to address the limitations contained in Const 1963, art 9, §§ 12 and 15 which read as follows: "Sec. 12. No evidence of state indebtedness shall be issued except, for debts authorized pursuant to this constitution.” "Sec. 15. The state may borrow money for specific purposes in amounts as may be provided by acts of the legislature adopted by a vote of two-thirds of the members elected to and serving in each house, and approved by a majority of the electors voting thereon at any general election. The question submitted to the electors shall state the amount to be borrowed, the specific purpose to which the funds shall be devoted, and the method of repayment.” We are satisfied that the only office of these limitations is to limit the power of the Legislature to borrow money and issue evidence of the debt thereby incurred. We reach this conclusion by our reading of these sections and the history of the limitations found in preceding Michigan Constitutions. The 1843 amendment to the Constitution of 1835 provided that "every law authorizing the borrowing of money or the issuing of state stocks, whereby a debt shall be created on the credit of the state” would require a majority vote of the electorate in a referendum. Const 1850, art 14, in § 3, specifically authorized the state to "contract debts to meet deficits in revenue” and limited the aggregate of such debts to $50,000 at any one time, and in § 7 forbade the issuance of scrip, certificate, or other evidence of state indebtedness for any debts other than "as * * * expressly authorized” in the Constitution. Const 1908, art 10, § 10 provided in part: "The state may contract debts to meet deficits in revenue, but such debts shall not in the aggregate at any time exceed 250,000 dollars”. The ban on the issuance of scrip, certificate or other evidence of state indebtedness except for debts expressly authorized was continued. We read the phrase "contract debts to meet deficits in revenue” in the foregoing to mean simply "borrow money”. The obligation to pay rent under a lease does not involve borrowing. Consequently it does not result in the incurring of a debt as that word is used in limitations thereon. See Walinske v Detroit-Wayne Joint Building Authority, 325 Mich 562; 39 NW2d 73 (1949), and cases cited therein. See also 56 Am Jur 2d, Municipal Corporations, §§ 660-665. Accordingly we are of the opinion that neither § 12 nor § 15 of Const 1963, art 9, precludes the state from leasing property under the provisions of The Act. II If under The Act the state may lease property from the State Building Authority, are future Legislatures contractually obligated to appropriate amounts each year sufficient to pay periodic rentals to the building authority for true rent falling due in future years? We answer in the affirmative. Implicit in our holding that the Legislature may contract to lease for a period of years on behalf of the state without violating the borrowing limitations of art 9 is our recognition that future Legislatures will be contractually bound to appropriate the necessary public funds to meet the state’s rental obligation. However, in that its power to invoke sovereign immunity can partially or even totally obstruct enforcement, the state differs essentially from non-governmental contractors. (See generally 72 Am Jur 2d, States, §§ 87-88). Although in granting limited jurisdiction over all contract claims against the state to the Court of Claims (MCLA 600.6401 et seq.; MSA 27A.6401 et seq.) the State of Michigan has waived its sovereign immunity, even that waiver is subject to legislative revocation. The Court of Claims has jurisdiction to award damages but it is without equitable powers. Parties who pursue their contract claims in that court are therefore restricted in the nature of the remedy they may seek. Nevertheless we are of the opinion that the enabling Legislature in the instant case does contractually oblige future Legislatures to provide adequate appropriations in order to satisfy the rental payments as due. See’ Nichols v State Administrative Board, 338 Mich 617; 62 NW2d 103 (1954). Ill Would the bonds to be issued pursuant to The Act by the building authority and repaid from proceeds derived from true rental payments by the state pursuant to lease constitute a state indebtedness within the meaning of §§ 12 and 15 of Const 1963, art 9? We answer in the negative. Only general obligation bonds are limited by §§ 12 and 15. Revenue bonds and special obligation bonds are not within the ban of these sections. Schureman v State Highway Commission, 377 Mich 609; 141 NW2d 62 (1966). We do not regard the bonds contemplated by The Act as pledging the general obligation of the state to their repayment. They purport to be revenue bonds, payable only from the revenue generated by the payment of "true rental” under the terms of the lease. No undertaking on the part of the state to pay the bonds is authorized and a disclaimer of a pledge of the state’s general obligation is required under § 8 of The Act. We do not regard the contractual obligation of the state to make lease payments as a promise to pay the bonds. The nature of these bonds as true revenue bonds is not vitiated by the circumstance that the state’s rental obligation will be paid from the general tax fund. We have regarded revenue bonds as exempt from the constitutional borrowing limitations not because state tax funds would never provide their repayment but rather because revenue bonds are secured and repaid by the users of the project financed. It is the state’s pledge of its general taxing power to repay bonds issued for borrowed money which is limited in article 9 and not the state’s commitment of its general taxing power to meet the state’s ordinary annual expenses and contract obligations. Williams, Coleman, Fitzgerald, and Blair Moody, Jr., JJ., concurred with Kavanagh, C. J. Levin, J., took no part in the decision of this case. Coleman, J. I write separately to emphasize the effect of an advisory opinion. It is one requested by "either house of the legislature or the governor” and offers the Court’s advice, its counsel, its guidance. Because there necessarily are no facts against which such legislation can be tested, we are obliged to look only to the face of the enactment under scrutiny. Individual or collective judicial perceptions of the merits of the act are irrelevant to our task. For instance, this act can be either a boon or a burden to the people of Michigan, dependent largely upon the fiscal restraint and wisdom of the people’s representatives, their legislators. However, that is no basis upon which to overcome the presumption of constitutionality which clothes all legislation. No one should think that an advisory opinion forever binds this Court (or even the signing justices) to a particular position. In footnote 1 to the Advisory Opinion re Constitutionality of 1972 PA 294, 389 Mich 441, 461-462; 208 NW2d 469 (1973), we said it "is important to emphasize the fact that an advisory opinion does not constitute a decision of the Court and is not precedentially binding in the same sense as a decision of the Court after a hearing on the merits”. An advisory opinion "constitutes the opinion of the several justices signatory based upon the bare words of the act and unadorned by any facts or combination of facts”. Also see Advisory Opinion re Constitutionality of 1975 PA 227 (Questions 2-10), 396 Mich 465; 242 NW2d 3 (1976). Without a case or controversy, we can only offer counsel. In Advisory Opinion re Constitutionality of 1974 PA 242, 394 Mich 41, 47; 228 NW2d 772 (1975), we said the lack of a case or controversy forces us "to make assumptions concerning how the questioned statute would operate once effective”. In addition to presuming that legislation is constitutional on its face, we also must assume that it will be constitutionally applied. However, legislation can be applied or misapplied, used or misused. Were a case to show that the legislation was being improperly applied or used to avoid improperly a constitutional restriction, I would not feel restricted by what the Court had said in an advisory opinion. Blair Moody, Jr., J., concurred with Coleman, J. Ryan, J. We have been asked to render an advisory opinion on whether 1964 PA 183 as amended by 1976 PA 240, MCLA 830.411 et seq.; MSA 3.447(101) et seq. (hereinafter "the Act”), violates article 9, §§ 12 and 15 of our 1963 Constitution. The Act creates a "State Building Authority” for the purpose of constructing or otherwise acquiring buildings and related facilities which are to be leased to the State of Michigan to house the various departments, agencies and offices carrying out the public business. The Act authorizes the building authority to issue up to $400,000,000 of "revenue bonds” (excluding refunding bonds and notes), to pay the cost of acquiring the buildings. The Act requires that the interest and principal on such bonds be "payable solely” from the "true rentals” paid by the state under leases negotiated with the authority. The bonds may be additionally secured by mortgages on the buildings. § 8. The Act provides that both the leases and the bonds shall not exceed a life of 20 years and, in any event, the bonds must mature within 1 year of the last rental payment pledged for their payment. The Act authorizes the state’s rentals to be paid directly to the paying agent for the bonds or trustee for the bondholders rather than to the lessor building authority. § 8. The Act authorizes a receiver for the bondholders who may take possession of a building or buildings, maintain the properties, prescribe rents, and collect and apply income. § 8. The Act requires that the bondholders be given a first lien on the rentals due from the state. It allows a direct action by bondholders against the state "to compel the performance of the duties of the state required by this act, the resolution, or the lease”. § 9. The Act requires the Governor and the budget director to include in the annual budget an amount sufficient to pay the rentals due from the state, and requires the state to pay the rentals in the time, place and manner specified in the lease or leases. § 7. Upon payment of the bonds the authority may convey title to the buildings to the state on terms to be stated in the leases. § 6. Upon careful examination of the legislation, it is evident that many aspects of the relationship between the state, the authority and the bondholders have been left vague and indefinite, subject to later negotiation and agreement. We are asked to express an opinion upon the constitutionality of the Act in a factual vacuum. We do not bave before us the leases, board resolutions or contracts particularizing the arrangements between the parties and disclosing their real relationships under the Act. For instance, the Act leaves the question of who will maintain and operate the buildings to be determined in the lease. § 6. The ultimate disposition of the buildings, when the bonds are paid off, is left to be spelled out in the lease. § 6. Aside from a requirement that the bond maturity schedules and the leases be approximately coterminous, the duration of both are merely required to be less than 20 years. § 8. The time, manner and place of rental payments is left to the lease. § 7. The authority may or may not transfer the duty of operating and maintaining the properties to the state. § 6. The bondholders may wrest control of the properties from the authority under certain conditions to be determined by resolution of the authority. § 8. The authority is authorized to remove itself as the conduit for funds moving from the state to bondholders. § 8. Rendering an opinion on the constitutionality of the Act in these circumstances invites speculation and blanket statements of uncertain application. While three specific questions were put to us respecting the constitutionality of the Act, they are so narrowly drawn and in fact so vague as to be valueless vehicles to advise upon the constitutionality of the whole legislation which is, after all, the real concern of the Governor and the Legislature. See Advisory Opinion re Constitutionality of 1974 PA 272, 393 Mich 916 (1975); Advisory Opinion re Constitutionality of 1972 PA 294, 389 Mich 441; 208 NW2d 469 (1973) (opinion of Levin, J.). For example, the first question posed is in essence: may the state lease property from the authority under the provisions of the Act consistent with art 9, §§ 12 and 15 of the Constitution? It is apparent that this question cannot be answered until one knows the terms of the proposed lease. Yet this Court is given none but the most general terms, as stated in the Act. Whether title to a building is to be conveyed to the state upon payment of the bonds and on what terms, is one of the most important considerations in determining whether a proposed arrangement is a lease or in fact a deferred sale. See State v Doyle & Associates, Inc., 374 Mich 222; 132 NW2d 99 (1965). See also Magnusson, Lease-Financing by Municipal Corporations as a Way Around Debt Limitations, 25 Geo Wash L Rev 377 (1957). A deferred sale is a debt and would therefore be prohibited. Yet this Court does not and cannot know at this time the ultimate disposition of the building. These arrangements are to be contained in future leases. The Act, however, purports to empower the authority to make whatever arrangements it pleases regarding the disposition of the building after the bonds have been paid in full. § 6. This Court’s affirmative answer to the first question posed could reasonably be understood to be a blanket approval by this Court of any disposition authorized by the Act. Plainly, however, the Act purports to authorize arrangements — deferred sales — which would result in transgressions of the constitutional limitations of art 9, §§ 12 and 15. Today’s majority expression of the Act’s constitutionality without reference to the myriad possible applications will certainly excite the market for building authority bonds. Underwriters, institutional investors and the general public, all potential purchasers of the bonds, will have the most authoritative "bond counsel opinion” available and can be expected to rely on it. When in the future the state and authority exercise the full extent of the powers contained in the Act, will this Court then be in a position to recognize and strike down violations of constitutional limitations? In these circumstances, an opinion advising in essence that the Act is constitutional is inappropriate. It should be made clear that this opinion expresses no view upon the practical necessity of obtaining buildings of various kinds for use by the state, the merits of leasing as opposed to ownership, or the right of the state to issue bonds for the acquisition of necessary buildings if it does so consistent with the Constitution. These are matters of political, economic, social and general welfare significance belonging properly to the judgment of the Legislature and the Governor. The state may certainly issue $400,000,000 in bonds to finance building acquisitions if it could muster a two-thirds vote in each house of the Legislature and then garner the majority of votes cast on the issue in a general election. Const 1963, art 9, § 15. The question is whether the complicated scheme contained in the Act — which creates an authority to acquire buildings and to issue bonds, which bonds are only payable from rentals, which rentals are payable by the state, which payments will be from general tax revenues — places sufficient distance between the state and the debt to allow the state to avoid going to the people for a vote. I think not. If such schemes are approved, the constitutional protections the people of our state have insisted upon in plain and simple language will be meaningless; when the state wishes to borrow it need not go to the people as required by the constitution, it need only create a new "authority” by a simple majority of the Legislature. It was to protect the people against just such borrowing that the framers drafted and the people ratified art 9, §§ 12 and 15. In addressing the question of the constitutionality of the Act, I will not be bound to the three artfully drafted questions proposed in the request for an advisory opinion. The Act as a whole, its intent and its effects, must be examined. When determining the constitutionality of legislation, courts must consider what may or might happen under the legislative grant of power. State ex rel Public Institutional Building Authority v Griffith, 135 Ohio St 604; 22 NE2d 200, 207 (1939). This is especially so when the legislation must be examined in a vacuum. Merely answering the three proposed questions and refusing to examine the Act as a whole would be an incomplete answer to the question of the constitutionality of the Act. It might also be misleading given the fact that the investing public may well rely on this Court’s opinion in deciding whether to purchase the bonds and on what terms. In these circumstances the correct approach to the problem is to ask what the Act authorizes and what is the legislative intent underlying it. In my view the Act is clearly a carefully planned and drafted legislative attempt to circumvent the constitutional limits of its power. Upon cutting through the artifice, however, what emerges is a scheme for empowering the state to contract a debt of up to $400,000,000 without going to the people for approval as required by art 9. The legislation contains many provisions which lead to the conclusion that the building authority is actually an agency of the state despite formal declarations to the contrary. Under § 2 of the Act the five members of the authority board of trustees are appointed by the Governor with the advice and consent of the Senate. Under § 3(e) all facilities to be acquired by the authority must be approved by concurrent resolution of the Legislature for use by the state. Section 3(n) requires that the auditor general of this state, or his appointee, annually audit the authority’s books. Section 4 allows the authority to acquire property by condemnation under 1911 PA 149 as amended. MCLA 213.21 et seq.; MSA 8.11 et seq. The purpose of the authority is to serve the state’s needs for buildings and related facilities. § 1. The state and its agencies are the only lessees of the authority’s property contemplated by the Act. § 6. All leases between the state and the authority must be approved by the State Administrative Board and by a concurrent resolution of the Legislature. § 7. The bonds issued by the authority must be approved by the Municipal Finance Commission under terms specified in the Act. § 8. The authority’s bonds and interest thereon are exempt from all state and local taxes. § 8. The property owned by the authority and its income is exempt from all state and local taxes. § 11. Section 13 of the Act expressly declares that "the building authority will be performing an essential governmental function”. While § 2 of the Act declares that the authority is "a body corporate, separate and distinct from the state”, it is our duty to cut through form and examine the substance of the relationship. Gregory v Helvering, 293 US 465; 55 S Ct 266; 79 L Ed 596 (1935). That duty is especially important when a transaction may be in violation of the Constitution. Ayer v Commissioner of Administration, 340 Mass 586; 165 NE2d 885 (1960). Piercing through the formalisms of the Act reveals that in fact the sole purpose of the authority is to serve the government’s building needs and in substance it acts as an agent of the government, assigned to acquire space by issuing bonds. Thus the authority’s debt is in reality the state’s debt. See Morris, Evading Debt Limitations with Public Building Authorities: The Costly Subversion of State Constitutions, 68 Yale LJ 234 (1958). See also State ex rel Nevada Building Authority v Hancock, 86 Nev 310; 468 P2d 333 (1970). Even if one were to accept the formal recitations in the Act and consider the authority an independent entity, the Act must still be deemed an unconstitutional borrowing by the state. The legislation creates an illusory entity in an attempt to divorce "the borrowing function from the paying function in what is essentially one integral transaction.” In the Matter of Constitutionality of Ch 280, Oregon Laws 1975, 276 Or 135; 554 P2d 126, 129 (1976). The essential function of the authority is to borrow money. The authority itself has no use for the buildings it will acquire; they are solely for use by the state. Under the Act even the authority’s role as manager of the properties and conduit for the monies paid by the state and passing to the bondholders may disappear. §§ 6, 7 and 8. "We agree that the [authority] is a separate entity. It can contract and issue bonds. It can sue and be sued. But these attributes are not enough to meet the present constitutional challenge. This is because we think that, viewing the project as a whole, the [authority] is nothing more than a mere intermediary to carry out only one purpose.” "We hold that the creation of the [authority] to execute the 'contract of lease’ is merely one phase of an integrated plan of which the substantial result is consti tutional evasion.” Ayer v Commissioner of Administration, 340 Mass 586; 165 NE2d 885, 889, 892 (1960). When its statutory function is evaluated, it becomes evident that the authority has no purpose other than to act for the state in a manner in which the state is prohibited from acting for itself. The logic and justice of piercing through the artifice and holding the actual transaction to constitutional requirements is also supported by many commentators. See e.g., Bowmar, The Anachronism Called Debt Limitation, 52 Iowa L Rev 863 (1967), Morris, Evading Debt Limitations with Public Building Authorities: The Costly Subversion of State Constitutions, 68 Yale LJ 234 (1958), Magnusson, Lease-Financing by Municipal Corporations as a Way Around Debt Limitations, 25 Geo Wash L Rev 377 (1957). The building authority created by the act at bar differs fundamentally from operating authorities sustained in the past. See, e.g., Nichols v State Administrative Board, 338 Mich 617; 62 NW2d 103 (1954) (Mackinac Bridge); Attorney General ex rel Eaves v State Bridge Commission, 277 Mich 373; 269 NW 388, 270 NW 308 (1936) (Blue Water Bridge). In those cases the "revenue” bonds issued by the authority were payable from nongovernmental "users fees” such as tolls on bridges or highways. The state was not an integral part of the financing. State ex rel Nevada Building Authority v Hancock, supra. As the Massachusetts Court stated in Ayer, supra: "These entities [operating authorities] exist for more than a single, temporary purpose. They perform services for others than the sovereign itself.” 165 NE2d 890. In the instant case the authority is designed to serve the needs of the state and the state’s general fund is the sole source of "revenue” to pay the principal and interest on the bonds. The state is contractually obliged to pay "rentals” which the bondholders know to be the only source of funds available for payment of the bonds unless the properties themselves are seized by the bondholders and sold. The bondholders are authorized by § 9 of the Act to bring a direct action against the state to compel performance. Bonds dependent on the public treasury and in turn upon the general taxing power of the state for their sole source of payment are not revenue bonds, regardless of how they are labelled. The limited revenue bond exception to constitutional debt limitations is clearly inapplicable here. Advisory Opinion re Constitutionality of 1973 PA 1 & 2, 390 Mich 166, 174-178; 211 NW2d 28 (1973). As was stated by the Oregon Supreme Court in a similar case: "The stripping away of the formal paraphernalia that clothe the Authority and the ‘transactions leads us to believe that a debt of the state is created within the meaning of the constitutional provision. Regardless of how the status of the Authority as a legal entity is viewed, its presence should be disregarded because its sole function is a mechanical one to effectuate a connection between the bondholders and the state in a manner which defeats the purpose of the debt limitation. To view the Authority as independent would be a victory of form over substance. The relationship in fact is one between the bondholders and the state; and the state’s role in the arrangement goes beyond simply leasing the property from the Authority, for it is, in essence, retiring a debt which has been incurred on its behalf and which it has the sole responsibility to repay. "Our conclusion may be subject to the criticism that we have disregarded legal forms. However, this is the case anytime a court pierces form to arrive at the substance of an artifice. The use of the authority device contravenes the purpose of the constitutional debt limitation. If approved, there would no longer be any effective limitation. Use of the authority permits the discretionary incurrence of long-term obligations, which the state is in substance obligated to repay from general tax revenues, without limit and without control by the voters.” In the Matter of Constitutionality of Ch 280, Oregon Laws 1975, 276 Or 135; 554 P2d 131-132 (1976). The Act purports to require the state to pay rents under leases of up to 20 years. § 7. The majority today concludes that this contractually obligates future Legislatures to appropriate sufficient monies to comply with the lease. Without commenting on the ability of one Legislature to contractually bind another, future Legislature to appropriate certain amounts for specific purposes, it is clear that the purpose of this provision of the Act is to provide comfort to bond purchasers. It is an effort to tie even more directly the public treasury of the state to the obligation to repay the bonds, while still retaining the authority as nominal obligor to evade constitutional restrictions. The formal recitation in § 10 of the Act to the effect that the Act does not authorize an indebted ness of the state contrary to the Constitution may not be given precedence over the actual substance of the Act. Constitutionality of Ch 280, Oregon Laws 1975, supra; Ayer v Com’r of Administration, supra; State v Griffith, supra. The clear intent and effect of the Act is to allow the state to borrow up to $400,000,000 to finance the acquisition of buildings. The Legislature, the prospective bond purchasers, and this Court all know that the only source of funds for payment of the bonds is the State treasury. Section 3(g) and § 8 of the Act. Calling these payments "rentals” and reciting the formula in § 10 is not a sufficiently potent incantation to ward off an examination of the vitals of the Act and the powers they contain. It is not enough to argue that the state has always leased buildings privately and now will simply lease from the authority, paying current revenues for current services. Because the state may on occasion lease private sector space does not mean that a $400,000,000 debt financing scheme is permissible simply because it is denominated a "lease”. The difference in substance between a common lease and what this Act authorizes must take precedence. Magnusson, Lease-Financing by Municipal Corporations as a Way Around Debt Limitations, 25 Geo Wash L Rev 377, 390-394 (1957). The cases cited by my Brother Kavanagh, while each is distinguishable on its facts, do indeed evidence a judicial willingness to accept at face value evanescent legislative recitations while disregarding the substance of the transaction. To the extent these cases tend to support a finding of constitutionality of this Act, I would decline to follow them. The adage which denounces the exaltation of form over substance is too well known to require a recitation of authority. The Act purports to authorize the state and authority to make any arrangement for disposition of the building upon retirement of the bonds. § 6. Thus, when the bonds are paid off, the authority may convey the building to the state for no additional consideration or for a nominal fee. Insofar as the Act authorizes such a scheme, it is in violation of the Constitution since this purported lease is a classic subterfuge for what is in fact debt financing of a capital asset. See, Morris, Evading Debt Limitations with Public Building Authorities: The Costly Subversion of State Constitutions, 68 Yale LJ 234 (1958), and Magnusson, Lease-Financing by Municipal Corporations as a Way Around Debt Limitations, 25 Geo Wash L Rev 377 (1957), and cases cited therein. Proponents of the Act make a great deal of the fact that the "true rental” required to be paid by the state is defined in the Act as "not [to] exceed the economic or market value to the state of the facilities to be leased”, and is not explicitly tied to the cost of the buildings. § 1. Aside from the difficulties of assigning a realistic rental market value to buildings acquired or constructed specifically for state use and therefore unsuitable for most commercial purposes (for instance, hospitals, prisons and college buildings), it is not to be wondered that the authority will be able to comfortably pay its debt service out of "market value” rents since the authority is exempt from all taxes and has no use for profits, while other potential lessors in the market are subject to both pressures. In the final analysis, the fact remains that the "rentals” paid by the state are intended to pay off the bonds used to acquire the buildings and are in reality debt service. It is my opinion that it is the manifest intent and effect of this Act to evade constitutional limitations on debt. Because the legislation is an attempt to commit the power to tax the people of the State of Michigan to pay off a long-term debt without their direct approval, I conclude that it is unconstitutional. I do not question the good faith of the Governor or the Legislature or their judgment on the necessity of obtaining buildings, or the right to obtain them on borrowed money. I would, however, require that they be obtained in a constitutional manner. "No evidence of state indebtedness shall be issued except for debts authorized pursuant to this constitution.” "The state may borrow money for specific purposes in amounts as may be provided by acts of the legislature adopted by a vote of two-thirds of the members elected to and serving in each house, and approved by a majority of the electors voting thereon at any general election. The question submitted to the electors shall state the amount to be borrowed, the specific purpose to which the funds shall be devoted, and the method of repayment.” "One Legislature cannot obligate succeeding Legislatures to make appropriations. One Legislature may, within constitutional limitations, impose a contractual obligation upon the state which it is the duty of the state to discharge; but one Legislature cannot impose a legal obligation to appropriate money upon succeeding Legislatures.” Opinion of the Justices of the Supreme Judicial Court Given Under the Provisions of § 3 of Art VI of the Constitution, 146 Me 183, 189-190; 79 A2d 753, 756 (1951). See also, Opinion of the Justices to the Senate, 302 Mass 605; 19 NE2d 807 (1939), State ex rel Fletcher v Executive Council of State of Iowa, 207 Iowa 923; 223 NW 737 (1929), State ex rel Public Institutional Building Authority v Griffith, 135 Ohio St 604; 22 NE2d 200 (1939). "This act shall not be construed or interpreted as to authorize or permit the incurring of indebtedness of the state contrary to the provisions of the state constitution."
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Rehearing denied. Reported at 410 Mich 685.
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Levin, J. The issue on this appeal is whether grievance and disciplinary procedures are "other terms and conditions of employment” within the meaning of the public employment relations act (PERA) and, if so, whether the provisions of the PERA concerning the duty to bargain collectively prevail over the provisions of the charter of a home-rule city providing for a civilian trial board to review charges of police misconduct. We hold that grievance and other disciplinary procedures are "other terms and conditions of employment” within the meaning of the PERA and that the duty to bargain collectively on such issues and to perform in accordance with the terms of a collective bargaining agreement prevails over conflicting provisions of the charter of a home-rule city. I The Pontiac City Charter provides for a civilian trial board to review charges of police misconduct and, where necessary, impose discipline, including discharge. The city, invoking the charter provision, refused to bargain with the Pontiac Police Officers Association (the union), the representative of the policemen, regarding grievance procedures for disciplined policemen. Similarly, because the city charter contains a requirement that policemen live within or near the city, the city refused to bargain regarding residency. The union filed an unfair labor practice charge with the Michigan Employment Relations Commission (MERC). The MERC concluded that both employee discipline and residency were mandatory subjects of collective bargaining and that the city’s refusal to bargain was an unfair labor practice. The Court of Appeals concluded that "the management, operation and control of [a] police department” is "a municipal concern”, "a matter of local concern to be resolved locally”, and held that where a city charter provides for residency and a civilian trial board, those issues are not mandatory subjects of collective bargaining. This Court sua sponte vacated the decision of the Court of Appeals and, on the authority of Detroit Police Officers Association v Detroit, 391 Mich 44; 214 NW2d 803 (1974), held that residency was a mandatory subject of collective bargaining and remanded for reconsideration of the civilian trial board question in light of DPOA v Detroit, supra. Pontiac Police Officers Association v Pontiac, 391 Mich 814 (1974). On remand, the Court of Appeals, "[fjor the reasons expressed in our prior opinion”, concluded that the question of a civilian trial board is a permissive, not mandatory, subject of collective bargaining. II In DPOA v Detroit, supra, this Court declared that under the PERA, as under the National Labor Relations Act (NLRA), there are three categories or subjects of collective bargaining: mandatory, permissive, and illegal. Mandatory subjects of collective bargaining are those within the scope of "wages, hours, and other terms and conditions of employment”. If either party proposes a mandatory subject, both parties are obligated to bargain about it in good faith. Permissive subjects of collective bargaining are those which fall outside the scope of "wages, hours, and other terms and conditions of employment”, and may be negotiated only if both parties agree. Illegal subjects are those which even if negotiated will not be enforced because adoption would be violative of the law or of the policy of the NLRA. The union contends that a civilian trial board which has exclusive jurisdiction over discipline of policemen, including discharge, demotion, or temporary suspension, directly affects the "wages, hours, and other terms and conditions of employment” of police officers and is a mandatory subject of collective bargaining. The city contends that where the electors of a home-rule city have enacted a city charter providing for a civilian trial board, a "decision to require mandatory bargaining over such subject would * * * abridge the power and authority of the electors” to frame, adopt and amend their charter and would therefore "be in violation of the State Constitution, specifically art 1, § 1, and art 7, § 22”. III Police officers are public employees. The courts of this state have been guided by Federal precedent when construing the provisions of the PERA. Michigan, like the Federal courts, has adopted a broad view of "other terms and conditions of employment”. The Federal cases have uniformly held that "grievance procedure and arbitration, layoffs, discharge, workloads, vacations, holidays, sickleave, work rules, use of bulletin boards by unions, change of payment from a salary base to an hourly base, definition of bargaining unit work, and performance of bargaining unit work by supervisors” (emphasis supplied) fall within "other terms and conditions of employment” and are mandatory subjects of collective bargaining. In the private employment sector, arbitration as the final step of a grievance procedure has been held to be a mandatory subject for collective bargaining. It has been estimated that 95% of all union contracts negotiated in private industry contain provisions for arbitration of either grievances or of questions concerning interpretation or application of the contract. Courts in other jurisdictions have held that a provision in a collective bargaining agreement requiring a public employer to submit disputes arising under the contract to final and binding grievance arbitration is enforceable. See Board of Education v Associated Teachers of Huntington, 30 NY2d 122; 282 NE2d 109; 331 NYS2d 17 (1972). We conclude that disciplinary procedures and a proposal for final and binding grievance arbitration concern "other terms and conditions of employment” and are a mandatory subject of collective bargaining. IV In Rockwell v Crestwood School District Board of Education, 393 Mich 616, 629, 630; 227 NW2d 736 (1975), we said that this Court had "consistently construed the PERA as the dominant law regulating public employee labor relations” and that the "supremacy of the provisions of the PERA is predicated on the Constitution (Const 1963, art 4, § 48) and the apparent legislative intent that the PERA be the governing law for public employee labor relations”. DPOA v Detroit, supra, pp 66-68, is determinative of the city’s argument that inclusion in a city’s charter of "other terms and conditions of employment” abrogates the city’s duty to bargain concerning such terms and conditions. A civilian review board for discipline of police officers is a permissible charter provision. DPOA v Detroit, held that a public employer’s collective bargaining obligation prevails over a conflicting "permissible charter provision”. Courts in other jurisdictions have held that it is not an unlawful delegation of municipal authority to include a provision for compulsory grievance arbitration in a collective bargaining agreement between a union and a municipality. V The PERA does not obligate a public employer to agree to grievance or disciplinary procedures proposed by the union. It simply obligates the public employer to bargain in good faith regarding such procedures. The city has not shown that the duty to bargain in good faith regarding grievance procedures has frustrated the exercise of its constitutional powers. The city makes essentially a policy argument for excluding disciplinary issues from the "mandatory subject” category to which they would otherwise belong. The public is directly affected by police officer misconduct. Trial boards allow for consideration of civilian complaints and "give citizens confidence in the propriety of the acts of their police department”. Traditional grievance and arbitration hearings may not accomplish these objectives. It may, indeed, be desirable, because of the unique "para-military” nature of police departments, to guarantee some degree of civilian control, insulated from the uncertainties of the collective bargaining process. If the Legislature deems it appropriate to redefine the scope of the collective bargaining obligation of the public employers generally or of particular public employers and the representatives of their employees to include "wages, hours, and some other terms and conditions of employment”, it may do so. This Court cannot properly decide ad hoc that what has uniformly been regarded a "condition” of employment is not such a condition as applied to a particular public employer although it continues to be such a condition for other employers, public and private. By eschewing redefinition, we underscore the prerogative of the Legislature to give such consideration as it deems warranted to the claims of public employers that the scope of the collective bargaining obligation impinges unduly on their power to govern. The Court of Appeals is reversed. No costs, a public question. Kavanagh, C. J., concurred with Levin, J. MCLA 423.201, et seq.; MSA 17.455(1), etseq. Pontiac Police Officers Association v Pontiac, 50 Mich App 382, 384-385; 213 NW2d 217 (1973). Const 1963, art 7, § 22 provides: "Under general laws the electors of each city and village shall have the power and authority to frame, adopt and amend its charter, and to amend an existing charter of the city or village heretofore granted or enacted by the legislature for the government of the city or village. Each such city and village shall have power to adopt resolutions and ordinances relating to its municipal concerns, property and government, subject to the constitution and law. No enumeration of powers granted to cities and villages in this constitution shall limit or restrict the general grant of authority conferred by this section.” See MCLA 38.501, et seq.; MSA 5.3351, et seq., authorizing cities, villages and municipalities to create a civil service commission for policemen and firemen. Pontiac Police Officers Association v Pontiac (Supplemental Opinion), 54 Mich App 282, 284; 220 NW2d 794 (1974). 29 USC 151, et seq. See Morris, The Developing Labor Law, chs 14-16 (Bureau of National Affairs, Inc, 1971). MCLA 423.215; MSA 17.455(15); § 8(d) of the NLRA (29 USCA 158[d]). See Morris, supra, p 387. Morris, supra, p 424. Morris, supra, p 435. Additionally, the city says that we should not rely on Federal precedents when construing the phrase "wages, hours, and other terms and conditions of employment” which appears in the PERA and in § 8(d) of the NLRA (see fn 8). The PERA does not in terms mandate reliance on Federal constructions of the NLRA. Additionally, contends the city, to assume that the Legislature intended precedents developed in the context of private industry labor relations to be applicable to public employment labor relations "is to attribute to the Legislature a naivety in the field of labor relations, that surely never existed”. Const 1963, art 1, § 1 provides: "All political power is inherent in the people. Government is instituted for their equal benefit, security and protection.” Const 1963, art 7, § 22 is quoted in fn 3. See Kaleva-Norman-Dickson School District v Kaleva-Norman-Dickson Teachers’ Association, 393 Mich 583, 590; 227 NW2d 500 (1975); Michigan Employment Relations Commission v Reeths-Puffer School District, 391 Mich 253, 260; 215 NW2d 672 (1974); Alpena v Alpena Fire Fighters Association, AFL-CIO, 56 Mich App 568, 575; 224 NW2d 672 (1974). DPOA v Detroit, supra; Alpena v Alpena Fire Fighters Association, AFL-CIO, fn 14 supra. Morris, The Developing Labor Law, pp 404-405. See Ostrofsky v United Steelworkers of America, 171 F Supp 782, 790 (D Md, 1959), aff'd 273 F2d 614 (CA 4, 1960), dictum. Cf. United Steelworkers of America v Warrior & Gulf Navigation Co, 363 US 574; 80 S Ct 1347; 4 L Ed 2d 1409 (1960); Hughes Tool Co v National Labor Relations Board, 147 F2d 69, 73 (CA 5, 1945). See Note, Legality and Propriety of Agreements to Arbitrate Major and Minor Disputes in Public Employment, 54 Cornell L Rev 129 (1968). See also Rockland Professional Fire Fighters Association v Rockland, 261 A2d 418 (Me, 1970); Providence Teachers Union v School Committee of Providence, 108 RI 444; 276 A2d 762 (1971); Danville Board of School Directors v Fifield, 132 Vt 271; 315 A2d 473 (1974). "This Court has consistently construed the PERA as the dominant law regulating public employee labor relations. In Detroit Police Officers Association v Detroit, 391 Mich 44; 214 NW2d 803 (1974), we held that residency and retirement benefits are mandatory subjects of collective bargaining under the PERA, although provisions of a city’s ordinance and charter, promulgated under the home-rule act, would otherwise govern. Earlier, in Regents of the University of Michigan v Employment Relations Commission, 389 Mich 96; 204 NW2d 218 (1973), this Court 'harmonized’ the constitutional authority of the Regents to supervise the university and the authority of the Legislature to provide for the resolution of public employee disputes, holding that interns and residents in the University of Michigan Hospital were entitled to engage in collective bargaining. In Wayne County Civil Service Commission v Board of Supervisors, 384 Mich 363, 374; 184 NW2d 201 (1971), this Court held that the original authority and duty of the Wayne County Civil Service Commission 'was diminished pro tanto’ by the PERA 'to the extent of free administration of the latter’. "The analysis is the same whether we label this reconciliation repeal by expression or by implication, pro tanto diminishing or harmonizing. The supremacy of the provisions of the PERA is predicated on the Constitution (Const 1963, art 4, § 48) and the apparent legislative intent that the PERA be the governing law for public employee labor relations.” Rockwell v Crestwood School District Board of Education, 393 Mich 616, 629-630; 227 NW2d 736 (1975). MCLA 117.4j; MSA 5.2083. See City of Auburn v Nash, 34 App Div 2d 345; 312 NYS2d 700 (1970). Cf. Tremblay v Berlin Police Union, 108 NH 416; 237 A2d 668 (1968); Local 1226, Rhinelander City Employees, AFSCME, v City of Rhinelander, 35 Wis 2d 209; 151 NW2d 30 (1967). See Note, fn 18 supra, tracing the development of the modern rule. We appreciate that by reason of the act of the Legislature providing for compulsory arbitration of police and fire department disputes (1969 PA 312; MCLA 423.231 et seq.; MSA 17.455[31] et seq.) if an impasse in collective bargaining affecting policemen occurs, the issue is subject to resolution in an "interest” arbitration proceeding. The problems arising in the application of that act (see Dearborn Fire Fighters Union Local 412, IAFF v Dearborn, 394 Mich 229; 231 NW2d 226 [1975]) do not, however, affect the analysis of what constitutes mandatory subjects for collective bargaining under the "other terms and conditions” language. This language defines the collective bargaining obligation of public employers and the bargaining representatives of their employees not covered by the interest arbitration statute and of employers and the bargaining representative of their employees in the private sector. See fn 12 and MCLA 423.2(b); MSA 17.454(2)(b).
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The motion by plaintiff and appellant for leave to file delayed application for rehearing is treated as a motion for reconsideration of this Court’s order dated January 9, 1976 (395 Mich 825), and so considered, the same is hereby denied, because it does not appear that said order was entered erroneously.
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Steere, J. Defendants appeal from an order of the commission of the department of labor and industry dated April 30, 1924, finding the plaintiff “entitled at the present time to receive compensation at the rate of $6.78 per week from December 11, 1923, to and including April 30, 1924, or the sum of $136.73, and in .the future not to exceed 500 weeks from the date of the accident.” Leitz was injured February 2, 1917, while employed as a common laborer by the Labadie Ice Company at a wage of $3 per day. He was working on an ice slide which broke and let him fall some 15 feet and a block or blocks of ice falling with him struck on and so severely injured his left hip that he was permanently crippled, thereafter walking with crutches, and was unable to do any work for about two years when he finally secured employment in a factory running a punch press, at which he could work while sitting, but which was unskilled or common labor. At the time of the accident proper proceedings for compensation were taken under the workmen’s compensation law and he was awarded $6.78 per week for total disability which defendants regularly paid from the date of the accident, February 2, 1917, until December, 1919, and then applied to the compensation board for release on the ground that he had recovered from his incapacity to perform common labor and at that time was earning in that class of employment more wages than he was receiving at the time of his injury. The case came before this court for review and under the undisputed facts there shown defendants’ contention was sustained (Leitz v. Labadie Ice Co., 211 Mich. 565). After that case was handed down, on September 30, 1920, and remanded with authority for the board to take such further action as future conditions might warrant under a proper showing, plaintiff filed a petition for further compensation on the ground of total disability, claiming that by reason of his accident he could no longer continue to do the work in which he was engaged at the time the former hearing was had nor in a condition to do any other kind of common labor. After hearing parties on this petition the board found that plaintiff had been engaged at common labor earning greater wages than before his injury during a portion of the time he was receiving compensation for total disability, that compensation should have been suspended for the time he was so employed which advanced the period during which it had been properly paid to February 1, 1921, and on January 14, 1921, ordered— “That subsequent to February 1, 1921, applicant should be paid compensation at the rate of six and 78-100 dollars ($6.78) per week during the period of his total disability; and at the rate of fifty per cent, of the difference between the average weekly wages he was earning at the time of the accident and the average weekly wages he is able to earn thereafter in the employment in which he was engaged when injured, during any partial disability he may suffer in the future.” * * * In compliance with such order defendants continued to pay plaintiff $6.78 weekly until December 18, 1923, at which time the total payments made him amounted to $2,027.23, and they then tendered him $6.78 more as final payment for partial disability for 300. weeks, apparently on the reference in the order to “partial disability he may suffer in the future,” which plaintiff refused to accept and receipt for as a final payment. Thereupon defendants applied for an order permitting them to discontinue further payments. After hearing the evidence offered the commission of the department of labor and industry (formerly industrial accident board) made the order of April 30, 1924, on the basis of total disability, continuing the compensation of $6.78 per week from December 11, 1923, the time when defendants stopped payment, for 500 weeks from the date of the accident, or the maximum time allowed by the act for total disability. We see no significance in the reference to partial disability interjected into the order made by the hoard on January 14, 1921. The award of $6.78 per week made at the time of the accident was for total disability and no change was made thereafter except elimination of the time plaintiff was earning full wages as a common laborer. His claim throughout was total disability to work at any kind of common labor, which was the class of labor in which he was employed at the time of the accident and while compensation was suspended by advancing the period of credited payments. It was shown that, when defendants made this last application for relief from further payments, plaintiff was and had been for some time employed in a bank as a bookkeeper and accountant earning $25 per week, having qualified for this class of employment by attending the Ferris Institute as a student and by taking a correspondence course. Under the act an injured employee’s right to compensation is to be tested by his ability to work and earn wages in the same class of employment as that in which he was engaged when injured. The various phases of that question have been too fully reviewed and settled in previous decisions of this court to require further discussion. Foley v. Railway, 190 Mich. 507; Jameson v. Newhall Co., 200 Mich. 514; Miller v. Fair & Sons, 206 Mich. 360; Leitz v. Labadie Ice Co., 211 Mich. 565; Woodcock v. Dodge Bros., 213 Mich. 233 (17 A. L. R. 203). In the latter case it is said: “Of course, the fact that he (claimant) received more wages since the injury would not preclude him from getting additional compensation if it were also shown that he had since been unable by reason of his injury, to follow the particular employment he was engaged in when injured.” In Foley v. Railway, supra, while recognizing that the test required by the statute was the ability to work and earn wages in the same class of employment as that in which the employee was injured, this court said: “That under this rule instances may arise where it works inequitably, does not authorize the court to read exceptions into it or modify its plain language defining the basis for estimating incapacity, which at best can only be approximated. If the method ought to be changed or exceptional cases provided for, the remedy rests with the legislature.” Whether plaintiff was totally incapacitated as a result of his accidental injury from earning wages, in the class of employment in which he was engaged when injured is the controlling question in the case, which was one of fact for the commission to decide, if there was competent testimony before it that he was not. Counsel for defendants contend in their brief — referring to Leitz v. Labadie Ice Co., supra — that “The only additional facts which appear in the record are that plaintiff decided that he would prefer clerical work to that of manual labor,” and urge that his physical condition is now no worse than it was in 1920 at the time the case was here before, when it was shown he was working at common labor, earning larger- wages than when injured, and at the same time drawing compensation for total disability, which left no opportunity for the contention that he could not do so. When this case was heard he was doing clerical work in an entirely different class of employment, and testified that he was obliged to leave the Auto Body Company where he worked the longest because in his crippled condition he could not stand the work and they discharged him. “because I wasn’t an all-round man and couldn’t perform the labor there,” and that he quit the Reo Company where he was last employed at manual labor, because he couldn’t keep up and “couldn’t stand it.” He further testified that he made efforts to get work at different places but could not do so on account of his physical disability, and repeatedly asserted that in his crippled condition, being on crutches ever since his injury, he was totally unable to effectually work and earn wages at any kind of common or unskilled labor. Counsel for defendants particularly stress the testimony of plaintiff’s physician who testified as to his condition at the former hearing, and when asked in this case, “Then if he was able to do a punch press job during 1920 under conditions that existed then, if those conditions existed today he would be able to perform that same work?” he replied, “I don’t see any reason why he shouldn’t.” The doctor also described his crippled condition, said-it was “necessary for him to use crutches at all times,” that when he walked any distance his left leg trembled from the hip down, he was treating him at the present time and his leg was not growing any stronger — had not in his opinion “gotten any worse or any better.” There, however, was sufficient conflict of testimony as to plaintiff’s disability to perform any kind of common labor to raise a question of fact and, as often noted, the compensation act makes the findings of fact by the commission conclusive when there is any competent testimony to support its findings. The award will stand affirmed. Clark, C. J., and McDonald, Bird, Sharpe, Moore, Fellows, and Wiest, 53., concurred.
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McDonald, J. The plaintiffs seek to enjoin the erection of a 10-story apartment building on certain lots in the city of Detroit, which they say are restricted to single residences. The district in which the lots are located is bounded on the west by Second avenue, on the east by Cass avenue, on the north by Kirby avenue, and on the south by Warren avenue. It comprises three city blocks, 3, 4, and 5 of the Cass Farm subdivision. It contains 78 lots, all of which have been sold and on all nothing but single residences have been erected. The defendant has leased lots 3, 4, 5, and 6 of block 4 and intends to tear down the residences that have been built thereon and build a 10-story apartment with 200 rooms and 17 garages in the rear. The recorded plat contains no restrictions. Lot 3 and the south 25 feet of lot 4 are owned by Ralph Stone. His deed contains the following building covenant: “It is a condition of this conveyance that the second party, his heirs and assigns, shall erect on said lots and complete a good and well built single dwelling house of stone or brick, worth not less than $6,000, placing the same 25 feet from the front line of said lots and upon the grade of said block as the same shall have been established by the party of the first part.” The deeds of lots 5 and 6 and the northerly 25 feet of lot 4, now owned by James M. Teahen, contain similar restrictions. It is the claim of the defendant that the language of the restrictive clauses in these deeds does not create a restriction, but that it is merely a personal affirmative covenant imposed upon the grantee for the benefit of the original grantor; that it cannot be enforced against subsequent grantees; and that if the language of the deeds can be said to restrict the use of the property to single residences, the conditions on Cass avenue have so changed as to render it unjust and inequitable to enforce the restriction. On the hearing the circuit judge was of the opinion that the language of the deeds did not create a restriction as to single residences. From the decree entered dismissing the bill the plaintiffs have appealed. The restriction in question is unusual in that it merely requires the grantee to perform an affirmative covenant, to build a certain type of single residence, and that it does not in express terms prohibit the erection of apartment houses or other buildings. If we were to consider only the precise language of the covenant, we might agree with the contention of the defendant, but under the circumstances of this case the rights of the parties are not to be determined by a literal interpretation of the restriction. It is to be construed in connection with the surrounding circumstances, which the parties are supposed to have had in mind at the time they made it, the location and character of the entire tract of land, the purpose of the restriction, whether it was for the sole benefit of the grantor or for the benefit of the grantee and subsequent purchasers, and whether it was in pursuance of a general building plan for the development and improvement of the property. If there was a. general building scheme the purpose of which was to restrict this district to single residences, it matters not how it is expressed in the covenant or what the covenant may be called. However, so far as the purpose is definitely stated in the covenant that purpose should control. In this case the covenant requires the building of single residences of a certain type, but is indefinite as to the time the land shall be used for that purpose. It does not state how long the required building shall be maintained. If a grantee of a deed containing this covenant complies with the requirement and builds a single residence of stone or brick, placing it 25 feet from the front line of the lot, can he tear it down the next day and build a store or garage covering the entire lot, or is he limited in the use of the property to a single residence? This question cannot be answered by a literal interpretation of the covenant. We must look to the surrounding circumstances to discover the intention of the parties and the purpose of the original grantor in imposing the restriction. “In dealing with this subject, equity does not concern itself with the forms of the language in which the restriction is couched, but deals only with its substance. It disregards the inquiry whether it is a condition or a covenant, and enforces it when it was plainly intended by the parties that it should be for the benefit of the land held by the plaintiff.” Coughlin v. Barker, 46 Mo. App. 54, 64, cited in note to Korn v. Campbell, 37 L. R. A. (N. S.) 18 (192 N. Y. 490, 85 N. E. 687). “It is always a question of the intention of the parties; and in order to make this rule applicable, it must appear from the terms of the grant, or from the situation and surrounding circumstances, that it was the intention of the grantor in inserting the restriction to create a servitude or right which should inure to the benefit of the plaintiff’s land, and should be annexed to it as an appurtenance.” Beals v. Case, 138 Mass. 138. “In cases of this kind it is important to ascertain the purposes of the grantor in imposing the restrictions, — whether they are intended for his personal benefit, or for the benefit of the lot owners generally. His intention is to be gathered from his acts and the circumstances.” Hano v. Bigelow, 155 Mass. 341 (29 N. E. 628). What, then, was the intention of the Cass Farm Company in incorporating these restrictions in its contracts and deeds? The lots upon which the defendant proposes to build his apartment house are in block 4 and front on Cass avenue. In the same year that the land was platted, 1893, lot 22 of block 4 was sold on contract to Mr. Butterfield. It was the first sale made with a restriction and was one of the first, if not the first, sale made in this district. The contract contained a similar restriction to that here in question and further provided: “First party agrees that all contracts made by it for the sale of other lots in said block shall be made with similar restrictions as are herein contained.” From this it appears that restrictions were placed in the contracts of the various purchasers in pursuance of an agreement with Mr. Butterfield. It was a consideration of his purchase. He evidently did not want to buy and build his home there unless the district was limited to single residences, and so he required the original grantor to enter into an agreement providing a general building plan for the building of single residences of stone or brick on all lots , subsequently sold. It may be said that this restriction provided a readier sale of the remaining lots and was therefore for the grantor’s benefit. But it was also for the benefit of the land bought by Mr. Butterfield, and the fact that it brought about a readier sale of the balance of the tract shows that it was also a benefit to subsequent purchasers. The circumstances and the acts of the original grantor show that such was the intention. Following the agreement with Mr. Butterfield the plan adopted was consistently followed over a long period of years, except in two or three instances where houses of the character described in the covenant had already been erected. The fact that such a building plan had been adopted was well understood and generally relied upon by subsequent purchasers. The construction placed upon it by all parties was that nothing but single residences could be built. And nothing but single residences have been built. The various purchasers complied with the restriction as they understood it. They have built up a high-class single residence district, following the building plan adopted by the original grantor. The circuit judge, who heard the testimony and made a personal inspection of the three blocks in question, says: “These three blocks now stand out and impress an observer as constituting a strictly high-class single residence district. * * * “Cass avenue between Warren and Kirby presents the appearance of a splendid residence street. On the east side is the beautiful public library building set in a well kept park. On either side stately elm trees. On the west side are a number of beautiful residences in ample, if not spacious grounds, and ranging in value up to $150,000.” * * * A further significant fact showing the intention of the original grantor and the practical construction given the restriction is disclosed by an attempt to enforce it on lot 1 of block 3. In the bill of complaint filed by the Cass Farm Company, it was alleged: “That it then was, and ever since has continued to be, the purpose and intention of said Cass Farm Company, Limited, and its successor in title, to make said block 3 and other portions of the subdivision aforesaid, a high-class, exclusive residence property, and to that end it provided and maintained certain building restrictions in the contracts, deeds and conveyances thereafter made by it; which building restrictions are more specifically described hereafter; the general scheme of which was to require all the property in said block, so far as it was occupied by buildings, to be exclusively residence property containing nothing but single dwelling houses of stone or brick, costing not less than six thousand dollars and placed upon an established grade not less than twenty-five feet from the front line of the lots.” Mr. Ferrell, who had charge of the real estate business of the Cass Farm Company for 29 years, during which, time this property was developed, testified that the purpose of incorporating the restrictions in the contracts and deeds to the lots in the three blocks comprising the district in question was to make of it a high-class single residence district. And it will be noted that these contracts and deeds containing similar restrictions were not given at or about the same time, but at intervals covering a period of years, a fact which shows not only a general building plan, but that it was being consistently followed and maintained. By maintaining the restriction through, this long period it may fairly be inferred that the original grantor intended it to apply not aloné to the first building but to all future use of the property. For if it was not continued beyond the time of the completion of the first dwelling the grantee could then tear it down and erect a store .or other building that would destroy the single residence feature of the plan, and thus defeat the purpose of the grantor. It is plain that such was not the intention. The only reasonable conclusion that can be adduced from the circumstances under which the restriction was imposed and from the subsequent acts of the original grantor is that the restriction was intended to apply to all future use of the property. It was so understood by those who became purchasers of lots after the agreement with Mr. Butterfield. They bought their lots and built their homes in reliance on it. It was a part of the consideration of their purchase. It was exacted of all purchasers for their benefit as well as for the benefit of the grantor. It induced the purchase and has created mutual reciprocal rights which a court of equity is bound to recognize and enforce. These facts distinguish the instant case from Hurley v. Brown, 44 App. Div. 480 (60 N. Y. Supp. 846), cited and relied on by the defendant. In that case it does not appear that the restriction was made in pursuance of any general building plan and there was nothing in the circumstances under which it was 'imposed showing that it was for the benefit of subsequent purchasers. “The right of grantees from a common grantor to enforce, inter se, covenants entered into by each with said grantor, is confined to cases where there has been proof of a general plan or scheme for the improvement of the property, and its subsequent benefit, and the covenant has been entered into as part of a general plan to be exacted from all purchasers, and to be for the benefit of each purchaser, and the party has bought with reference to such general plan or scheme and the covenant has entered into the consideration of his purchase.” Mulligan v. Jordan, 50 N. J. Eq. 363 (24 Atl. 543). In our view of the case, the covenant in question construed in connection with the surrounding circumstances creates a valid restriction limiting the use of the property in this district to single residences. It is said that there is nothing in the recorded plat that would charge the defendant with notice of building restrictions such as the plaintiffs claim, and that the language of the deeds is not sufficient notice of such restrictions; but this is not a case where the defendant has purchased lots or made a lease relying on the precise language of the restrictive covenants of the recorded deeds. He was familiar with the property and the restrictions as is evidenced by his oral testimony and by the agreement which he made with the owners for a lease of the lots on which he intends to build the apartment. This agreement provides that the lease will not be made unless he succeeds in having the alleged building restrictions set aside. We agree with the circuit judge that there have been no changes of a sufficiently serious character to render the enforcement of the covenant inequitable, but we think he was in error in his view of the character and the extent of the restrictions. A decree will be entered in this court granting the relief prayed for in the bill. The plaintiffs will have costs. Moore, Steere, Fellows, and Wiest. JJ., concurred with McDonald, J.
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Sharpe, J. In March, 1920, plaintiffs began suit in the Wayne circuit court against the Sinclair Refining Company to recover damages due to the negligence of the company in the operation of its gasoline and kerosene tanks on its property adjoining that of plaintiffs. Riggs & Baxter were plaintiffs’ attorneys. On May 24, 1921, W. C. Campbell was substituted as their attorney. In June, 1922, he filed a bill in equity on behalf of the plaintiffs and several other nearby lot owners to restrain the company from conducting its business as then operated because it constituted a nuisance. This suit was tried in September, 1922, by Judge Hart, of Adrian, and announcement made that a decree would be entered dismissing the bill. The decree, however, was not signed until December 19th of that year. In the meantime, and on October 19th, Bresnahan & Groefsema were substituted for Mr. Campbell with his consent, and a retainer of $100 was paid to them. It is plaintiffs’ claim that this sum was paid to secure an appeal from the decree rendered in the chancery case. No appeal was taken. Negotiations for a settlement with the refining company were had, which will be hereafter more particularly referred to. Mrs. Kellogg made complaint to the Detroit Bar Association, charging misconduct and neglect on the part of Mr. Groefsema in not perfecting such appeal, and in other, particulars. After a hearing, the grievance committee dismissed this complaint. Plaintiffs then demanded that the attorneys sign a consent to the substitution of their present attorneys to act for them, and on their refusal applied to the court for an order to compel them to do so. A hearing was had before the defendant, at which oral proof was submitted. An order was made that such substitution be had on condition that plaintiffs pay to Bresnahan & Groefsema the sum of $300, the charge made by them for the services rendered. Plaintiffs here ask mandamus to compel the defendant to set aside that part of the order requiring such pajunent. It clearly appears by the proof that these attorneys have rendered considerable service for plaintiffs for which they have not been paid. Their retainer was “In re: Kellogg v. Sinclair Refining Company,” as appears ' by the receipt given at the time the fee was paid. They were not retained specifically to prosecute the law case nor to appeal the chancery case, but to do what in their opinion was best to obtain the relief sought against the refining company. The defendant found, and the proofs fully justify his finding, that “at the special instance and request” of plaintiffs the attorneys entered into negotiations for and made a settlement with the refining company prior to the expiration of the time limited for such appeal. The terms of this settlement were accepted by the plaintiff Helen Kellogg, who gave assurance that her husband would also assent to it. It provided for the purchase of their property, the building being reserved, by the refining company for $8,300, of which $300 was to be paid to the attorneys for the service rendered plaintiffs by them. Louis Kellogg refused to assent to this agreement. The proofs clearly show that Mrs. Kellogg, who also acted for her husband throughout the entire transaction, was satisfied with the charge of $300 then made by their attorneys and content that they should receive this amount out of the moneys to be paid on the settlement. The defendant found that this charge was “fair under the circumstances,” and there was proof to justify this finding. The attorneys had not only negotiated the settlement, but had spent considerable time in investigating the merits of plaintiffs’ claim against the refining^ company and in satisfying themselves that it was in their interest to make it. They were not acting as real estate brokers or salesmen, but as attorneys for the plain tiffs, endeavoring to obtain a settlement of the matters in dispute between the plaintiffs and the refining company which had given rise to the beginning of the action at law and suit in chancery. We might well apply the rule that the return of the circuit judge to the order to show cause must be accepted by us as true (Patrons’ Mut. Ins. Co. v. Wexford Circuit Judge, 227 Mich. 154), but in view of the fact that the conduct of attorneys, officers of this court, is involved, we have given careful consideration to the claim of plaintiffs and the proof submitted to the trial court and feel constrained to hold that they were in no way neglectful of plaintiffs’ interests and that the provision in the order for the payment of $300 was fully justified. The writ is denied, with costs to defendant. Clark, C. J., and McDonald, Bird, Moore, Steere, Fellows, and Wiest, JJ., concurred.
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Bird, J. These cases were heard together. They involve the same lands and the same legal propositions. Both cases were filed for permission to redeem from a mortgage sale, and also for specific enforcement of a contract. The trial court granted Charles and Daisy Markoff relief, but denied relief to John P. and Susie G. Hehl. The interveners claim they made a contract for the lands after the equity of redemption had expired. Their petition was dismissed. All of the parties, except the Markoffs, appeal. The record shows that plaintiff Hehl in 1916 purchased from defendants a tract of land in Bedford township, Wayne county, containing about 19 acres, for the sum of $23,500. A small portion of the consideration was paid in cash, a portion in land contracts, and the balance was secured by a five-year mortgage on the premises, bearing interest at the rate of six per cent. Hehl sub-divided the tract into 108 lots, and recorded the plat as the “Crown Point Subdivision.” Among other persons to whom he sold lots were the plaintiffs Markoff. They purchased on contract lots 11 and 12 on the subdivision, and erected thereon a store, with a flat in the second story. As the years passed the sale of lots progressed, but Hehl appeared to have difficulty in making his payments and paying interest on the mortgage. Finally de fendant Tournier commenced foreclosure proceedings, but before the day of sale Hehl made a payment of $7,000, and the foreclosure proceedings were discontinued. It was not long before Hehl was in default again. He failed to pay interest and taxes, and after a time foreclosure proceeding's were again started and carried to a sale. Defendants Tournier bid in the property for the amount due on the mortgage. Hehl Case. The date on which the equity of redemption expired was March 15, 1923. A few weeks before that dáte Hehl made several attempts to effect some arrangement with the Tourniers whereby they would accept a new mortgage, and he claims that he did-finally conclude an arrangement whereby they were to accept the amount due on the mortgage, plus the delinquent taxes, and $3,000 as a bonus; that the Tourniers were to accept a new mortgage for $20,000, payable in two years, with interest at seven per cent., and if the total of these sums exceeded $20,000 the excess was to be paid in cash. It is claimed that this arrangement was made and was to be executed immediately after the equity of redemption had expired. That relying on this arrangement he permitted the equity to expire without redemption only to have the Tourniers refuse to carry it out after-wards. If we were convinced that this arrangement was made in good faith by Hehl and relied upon by him, and he would not have permitted the equity of redemption to expire except for such agreement, it would undoubtedly be a case for equitable relief. Such conduct on the part of the Tourniers would have amounted to a fraud upon Hehl. 12 R. C. L. p. 261; Laing v. McKee, 13 Mich. 124 (87 Am. Dec. 738); Kefuss v. Whitley, 220 Mich. 83. The difficulty of applying that principle to this case is that we are not persuaded that the Tourniers made such an arrangement with him. There is no question but that Hehl made several visits to the Tournier home and made several offers, and made the offer which he now insists was agreed to. The Tourniers deny that any such arrangement was made, and Hehl’s own. account of the talk he had with Mrs. Tournier at Mr. Powell’s law office on the day he claims the deal was to be closed, is not convincing that any previous arrangement had been concluded between them. Aside from these considerations the surrounding circumstances are not favorable to Hehl’s contention. The manner in which Hehl dealt with the Tourniers for a period of upwards of five years in regard to this property is not commendable. He was constantly in arrears and in default, and his promises were many and too easily broken to inspire great confidence in his word. If Hehl could not pay a 15,000-dollar mortgage, how he hoped to be able to convince the Tourniers that he could pay a 20,000-dollar mortgage is not clear to us. He undertakes to make some showing that he could have raised the money elsewhere. If he could have raised the money the day after the equity expired, no reason is suggested why he could not have raised it the day before it expired, and saved the bonus of $3,000. Statutory foreclosures should not be set aside without some very good reasons therefor. The burden of proof was on Mr. Hehl to establish his version of the affair. He has failed in this respect, and consequently no relief can be granted to him. Markoffs’ Case. It is conceded by the Markoffs that they understood the Tourniers’ mortgage covered their two lots, and that the same had. been foreclosed. It appears that they lived next door to the Tourniers and knew them very well; that a short time before the equity of redemption expired they went over to the Tournier home and had a talk with them concerning the matter, and they were assured by the Tourniers that they need not worry over the matter; that the lots were bid in for $1,610, the balance due thereon, and they would be permitted to go on paying on their contract, the same after the equity of redemption expired as before. That relying on these assurances they permitted the equity of redemption to expire without payment. After the equity expired the Tourniers demanded as a condition of conveyance $6,500. It appears that the Markoffs were people of limited means, and were not well versed in either business or legal matters. They had improved one of their lots, and it was difficult for them to pay the amount for which the property was bid in before the equity expired. The Tourniers were near neighbors and friendly, and well understood their financial condition. It was a very reasonable and equitable thing to offer to allow them to continue their payments after as well as before the equity expired. In doing this, they would lose nothing. It is quite probable that had the Markoffs been apprised of the real attitude of the Tourniers they could, and would, have secured financial help elsewhere, as the purchase price of the lots had been reduced to $1,610. Unless they had relied upon the assurances given them by the Tourniers it seems improbable that they would have sat by and permitted the equity to expire without making some effort to secure the money elsewhere. If the Markoffs relied upon these assurances, and would not have permitted the equity of redemption to expire but for such assurances, it amounted to such a fraud on them as will entitle them to relief. (See cases cited in Hehl Case.) We are impressed upon the whole testimony that assurances of this character were made to the Markoffs, and that they relied upon them. Just why the Tourniers afterward altered their minds with reference to it does not appear, and perhaps is not important. We are content with the decree made by the trial court in relation to these lots, and it will be affirmed as to the Markoffs, with costs of both courts to them. The decree in Hehl v. Tournier will be affirmed, with costs to defendants Tournier. The decree dismissing the petition of interveners will be affirmed, without costs. McDonald, C. J., and Clark, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred.
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Bird, J. Plaintiff sold his retail grocery and meat stock and business, together with the tools and store fixtures, to defendants on a title retaining contract. For the balance of the purchase price plaintiff accepted defendants’ note for $2,500. Defendants ran the business for a time and then sold it, with plaintiff’s consent, to one Schadel. Schadel gave plaintiff his note for $2,500, and later gave a chattel mortgage on the stock to secure it, but plaintiff did not surrender defendants’ note. Schadel was not successful. He was soon in bankruptcy. Failing to receive his pay from Schadel, plaintiff brought this action on the old note given by defendants. Defendants resisted payment on the ground that a novation had taken place when the sale was made to Schadel, and that they were thereby released. Plaintiff denied that he had released defendants. The court submitted the question as to whether plaintiff had released defendants, and they found he had not, and awarded him a verdict for the amount of the note. Defendants complain because the trial court refused to direct a verdict for them at the close of the proofs, their contention being that the proofs conclusively established the fact that a novation resulted from the agreement of the parties. In every novation there are four essential requisites: (1) A previous valid obligation. (2) The agreement of all the parties to the new contract. (3) The ex-tinguishment of the old contract, and (4) The validity of the new one. 29 Cyc. p. 1130; Gillett v. Ivory, 173 Mich. 444. The parties are in accord on the first and second requisites, but disagree as to the third. Defendants testify that they were released, or that plaintiff agreed to release them, when the new deal was made. Plaintiff testified in part, as follows: “Q. At the time this chattel mortgage was given between you and Mr. Schadel, was there anything said at that time upon the releasing of Mr. Smolarz? “A. Mr. Smolarz asked me if I would release him and I told him I could not release him until that note was paid up; until his note, what I got right there, was paid up, and he got his release, not any further. I said, T want to say if those parties does not pay up I hold you responsible, Mr. Smolarz.’ ‘All right,’ he said, ‘I know the party well and they will pay up,’ and I said ‘it is all right if they pay.’ He said, ‘Can I send over with the money; will you accept the money?’ I said ‘it malees no difference who brings the money, but I hold you responsible until the note is paid in full.’ ” Plaintiff’s testimony is corroborated by the testimony of his wife and son who were present when the new deal was consummated with Schadel. It is certain that if the old debt from defendants to plaintiff was not extinguished a novation did not take place. Upon this question the parties are in sharp conflict. Which one of the parties was right was a question of fact and, therefore, a question for the jury. Defendants’ counsel insists that the case is ruled by Gillett v. Ivory, supra. In that case the court took the question of fact, whether the old debt was extinguished, out of the case by finding that the affidavit and conduct of Gillett estopped him from claiming that the old contract was not extinguished. There are no such grounds of estoppel in the present case. The conflict in the testimony justified the court in submitting the question to the jury. The judgment is affirmed. Clark, C. J., and McDonald, Sharpe, Mooee, Steere, Fellows, and Wiest, JJ., concurred.
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North, J. By this record three cases instituted in Wayne county are presented for review. It was stipulated in the circuit court that the three might be heard as companion cases, and the testimony taken simultaneously before the circuit judge without a jury. Charles W. Munz, operating as Munn & Munz, was a contractor who constructed underground irrigation systems, such as are used in'parks, golf courses, burying grounds, etc. The Park Development Company was a Michigan corporation affiliated with and having in charge development activities of the White Chapel Memorial Association. The latter was a Michigan corporation which owned and was developing a cemetery known as the White Chapel Memorial Park. September 27, 1926, Munn & Munz contracted with the Park Development. Company to furnish materials and install an irrigation system and a water supply system in White Chapel Memorial Park at a total cost of $98,500. As to payment the contracts provided: “It is understood that as the various portions of the work are completed, the Park Development Company, Inc., is to assign to us sufficient cemetery lots to cover the amount of work done, the value of each lot to be figured at $150. The Park Development Company, Inc., agrees to redeem these lots at the same valuation, as soon as funds are available. In the event that any such lots are not redeemed six months after they have been assigned, or within six months after the completion of each portion of the work, the unpaid balance is to bear interest at six per cent, per annum, after the expiration of the said six-months’ period.” No lots were ever assigned under the above provision. After completion of the work, and in 1929, further work was done for the White Chapel Memorial Association on the irrigation system by the Munz Spralawn Corporation. This work, amounting with interest to $482.16, was not paid for and to recover that amount the first of these three suits was instituted April 22, 1931, in the common pleas court of Detroit. There was an appeal to the circuit court. Plaintiff had judgment in both courts. Defendant has perfected the instant appeal, which in substance is based on the assertion that the judgment was contrary to the testimony as presented to the' trial court. Plaintiff’s claim is thus stated: “To repairing hydrant lines, repairing and replacing sprayheads, and raising lawn and. garden heads at White Chapel Memorial Park as per invoices hereto attached . . . $430.50. With interest from 9/18/29 to date of payment at five per cent.” The defense urged was that plaintiff corporation was the successor to Munn & Munz (this being denied by plaintiff) and that the work was necessitated by defective installation of the irrigation system for the repairing and correction of which Munn & Munz were liable under the terms of their original contract. This contract guaranteed the irrigation system “against defective material and workmanship for' a period of five years from date of completion, ’ ’ and also that it would cover the ground uniformly as indicated by the drawing. As noted above this case was heard by the trial judge simultaneously with the < suit started in the circuit court and to which we will shortly advert more in detail. Prom the testimony as a whole the circuit judge found, and we think justifiably so, that the claim of defective installation made by the defendant was an afterthought “which only came to the surface as a result of” an attempt on the part of the plaintiff to recover moneys claimed to be due from defendant corporations. Not only do we find from the record that the conclusion of the trial judge in the particular noted is justified, but we are also of the opinion that the Munz Spralawn Corporation was not a successor to Charles W. Munz, doing business as Munn & Munz, with whom the contract for the irrigation system was made. The judgment entered in the circuit court is sustained by the record and is affirmed, with costs to appellee. The second suit at law was commenced by summons in the Wayne county circuit court. By this suit Charles W. Munz, doing business as Munn & Munz, sought to recover from the Park Development Company an alleged unpaid balance on the contracts for the irrigation system and the water supply sysa tern. Payment had already been made in the exact amount of the contract price, $98,500, but plaintiff claimed accrued interest in excess of $4,500. Bight of recovery was based by plaintiff on the portion of the contract hereinbefore quoted, namely: “the unpaid balance is to bear interest at six per cent, per annum, after the expiration of the said six-months’ period.” The defenses mainly urged are that this provision of the contract was subsequently waived by plaintiff and that the contract was paid in full. Defendant also gave notice of recoupment and set-off. The former was asserted incident to alleged defects in the installation of the irrigation system and the latter involved an item of advertising about which, as hereinafter noted, there is no controversy. The trial judge sustained defendant’s contention as to waiver of the interest charge; but he disallowed defendant’s claim of recoupment. Judgment was entered in favor of defendant for the item of advertising. Plaintiff, asserting error in the disallowance of its claim for interest, has appealed. The defendant also appealed from disallowance of its asserted recoupment. The alleged waiver of interest is claimed by defendant to have been incident to a loan which Charles W. Munz and wife negotiated with the Guaranty Trust Company in 1927. In addition to other security for this loan Munz assigned to the trust com- party the unpaid contract price of plaintiff’s contract with defendant. Defendant asserts that the trust company was unwilling to accept the assignment unless defendant consented thereto and that the latter refused to consent except plaintiff agreed to waive the contract provision for payment of interest. The testimony shows this matter was taken up between the trust company and the president of the ‘defendant company, but there is only scant testimony as to Charles W. Munz having acquiesced in the arrangement. Defendant claims plaintiff’s desire to secure the loan from the trust company caused Charles W. Munz to consent to the alleged waiver and securing the loan through defendant’s consent to the assignment constituted consideration for the waiver. Plaintiff denies having waived the interest provision of the contract either orally or in writing. In fact there is neither testimony nor claim of a written waiver by plaintiff; and the only testimony tending to establish oral consent thereto was given by the witness Jones who at the time of the transaction was an officer of the Guaranty Trust Company but at the time of the trial was the secretary and treasurer of defendant company. Concerning his interview with Mr. Munz relative to waiving interest the witness Jones testified: “Q. What did Mr. Munz say? “A. Mr. Munz kicked about it. * * * “Q. Did he agree to waive the interest at that time ? “A. He said there was no other way out of it. “The Court: That does not answer the question. “Q. Did he say whether or not he would waive the interest on that occasion? “A.. Yes. “Q. What did he say? Do you recall the words? “A. No, I don’t recall the words.” ' The -weakness of defendant’s contention as to a -waiver of interest is disclosed by the testimony of its president, from which we quote: “Q. Upon what terms did you consent to the assignment? “A. * # * I finally consented with the direct understanding that Mr. Jones have it distinctly understood that the entire interest on the contract be waived. That was the consideration of my accepting this assignment. “Q. Now, who did you tell Mr. Jones was to agree to waive the interest before you would consent to the assignment? “A. Well, we were talking of the Munz people. Mr. C. W. would naturally be the one. “The Court: Did you talk to Mr. C. W. Munz yourself ? “A. No, I did not, your honor. “The Court: He did not agree to this with you? “A. No, he did not, no sir. * * * “Q. Did Mr. Jones subsequently inform you that Mr. Munz had agreed to this ? * * * “A. * * * I don’t recall positively if Mr. Jones told me afterwards whether Mr. Munz had agreed to it or not. “Q. But your conversation with Jones was to the effect that unless he did agree to it, you would not consent to the assignment, is that correct? “A. Correct. “The Court: Did you sign a consent in writing? “A. No, I did not. * * * “Q. Was there ever any controversy after fin's assignment as to the question of waiver of interest? “A. Never was, about any interest. “Q. Did you ever have anv meetings with either Mr. Charles W. Munz or with Elmer Munz in which the.question of interest was discussed? “A. Well, it was never discussed. It was just never going to be paid from the time the contract was originally signed np to last talks I had with him. ’ ’ This witness admits that subsequent to the alleged waiver, at a time when he had something of a “brain storm,” he directed or authorized one of defendant’s employees to pay the controverted interest charge. Defendant’s witness Jones also testified to this same effect. Notwithstanding correspondence passed between these parties relative to this account, none was produced by defendant tending materially to sustain the claim of waiver now made. After the assignment of the contract, payments made thereon by defendant were direct to the trust company. The last payment, $30,000, was made September 24,1929. It is conclusively shown by the record that before this payment was made and on September 21, 1929, plaintiff was insisting upon the payment of interest. This was long after the alleged waiver. On the date last mentioned plaintiff wrote defendant in part as follows: “I have looked the whole matter over from every angle, and cannot by any stretch of my imagination understand why we are not entitled to the interest, both legally and morally. You have had the use of .this money, during the period since it was due, at a very reasonable rate of interest, and we can see no reason Why this should not be paid to us, as. well as to anyone from whom you would have borrowed, had the account been paid when due. “If you will refer to our statement, you will notice that the interest has never been figured, until six months after the billing, and we feel that we were extremely lenient, and perhaps lax in this respect. Perhaps you do not realize that the six-months’ period, free from interest, cost us about $5,000. Even at six per cent, this would have amounted to $3,000. Taking these things into consideration, we feel that we have been very liberal and cannot see our way clear to make any further concessions.” As noted above, this letter was written to and received by defendant two years after the alleged waiver; but the record does not disclose disavowal of the above recitals on the ground that plaintiff had waived interest as is now claimed by defendant. And even before the date of the above letter, and on March 19, 1929, the trust company wrote a letter to the defendant which seems to indicate rather clearly that the trust company did not understand that payment of interest had been waived. We quote: “I discussed the matter of the Munz letter of March 15, 1929, with the committee. They do not feel that they could accept the $27,000. They were of the opinion that if the amount due without interest was accepted that this settlement should be satisfactory to Mr. Munz. “I would appreciate your taking this matter up with Mr. Munz so that we can come to some adjustment. ’ ’ In the assignment of this account to the trust company there was no reference whatever to there having been a waiver of payment of interest in consideration of defendant consenting to the assignment. In fact, as noted, no written consent was ever given by defendant, and consent to the assignment was not requisite as a matter of law. Defendant’s claim that the $30,000 payment satisfied the account in full is not fully in accord with the indorsement typewritten on the check by which the payment was made, which indorsement reads: “To apply on contract of Munz Spralawn Corp., and the Park Development Co., Inc.” Just prior to this payment plaintiff had given defendant a statement of the account, September 21, 1929, on which statement its claim of interest is plainly itemized. Over a year later (December 5, 1930) defendant’s president wrote plaintiff a letter relating to this account. Concerning this communication the following appears in his testimony: “Q. From this letter, exhibit 49, Mr. Sanger, evidently there was still some inclination on your part to pay the balance due on the Munn & Munz contract, is that correct? * * * “A. Yes.” It is difficult to harmonize this testimony with defendant ’s present claim that it is entitled to recover thousands of dollars by way of damages for defective installation, or with its other claims that payment of interest was waived in 1927, or that the payment of the $30,000 in September, 1929, was in full satisfaction of the- contract. In its brief defendant states “the most important breach of contract is appellant’s failure to install a system that would give adequate coverage.” For this item defendant sets forth in its amended bill of particulars a claim for recovery in the amount of $15,000. Approximately 80 per cent, of the work of installation of the irrigation system was completed in 1927, the balance in 1928. It is quite beyond comprehension that the system should be as remarkably defective in covering the area to be irrigated as defendant now claims, and such defect not be discovered for two or three years thereafter. If defendant’s claim is sound, at the time it made the $30,000 payment (September 24, 1929) it was deliberately paying over thousands of dollars more than plaintiff was entitled to receive. In passing it may be noted that defendant’s first bill of particulars, filed June 11, 1931, covering its alleged recoupment for items of this type amounted to less than $500. It was not until later (April 19, 1932) that the amended bill of particulars of the recoupment was filed in the amount of $19,600. In the briefs submitted on this appeal the amount claimed is $12,410.21. Notwithstanding defendant’s claim of damages in these large amounts, there is a decided dearth of testimony tending to show that at any time before suit was brought (April 22, 1931) defendant ever made the claim that it had sustained any such extensive damage by reason of defective installation, or that there had been an express waiver of interest in 1927, or that the account had been fully satisfied by the payment of $30,000 in September, 1929. In view of these and many other facts appearing in the record, it is not surprising that the circuit judge recited in his opinion': “I certainly would not be prepared to hold from this testimony, conflicting as it has been, that any trouble that the defendant is now complaining of was caused by improper installation or by improper coverage. ’ ’ We forego reference to further details of the record. It fully satisfies us of plaintiff’s right to recover notwithstanding the defenses urged. In arriving at this conclusion we have not overlooked statements of account rendered by plaintiff and letters written in his behalf which seem to ignore the item of interest of which plaintiff now seeks recovery. As to this item the holding of the trial court' will be reversed and judgment rendered for plaintiff. The amount recoverable is $4,215.33, with simple interest thereon at the rate of six per cent, per annum computed from September 24, 1929, to date of entering judgment. Prom the amount so determined there should be deducted defendant’s set-off for the advertising charge in the amount of $377.40 with legal interest thereon from April 21, 1932, to the date of entering judgment. As indicated, we are in accord with the holding of the trial judge that defendant’s claim for damages arising from defective installation of the irrigation system is without merit. We have already sufficiently reviewed the facts in the record justifying this determination. In this law case the record will be remanded to the circuit court of Wayne county for entry of judgment in accordance herewith. Appellant will have costs. While the two suits at law were pending the remaining' suit before us on this appeal was instituted on the equity side of the circuit court of Wayne county by the Park Development Company and the White Chapel Memorial Association. Plaintiffs in the suits at law hereinbefore considered were made parties defendant in the equity case. The bill of complaint presents no issue which could not have been and which should not have been adjudicated in one ór the'other of the suits at law. For this reason the trial judge decreed dismissal of plaintiffs’ bill of complaint. We think the decree was clearly correct. This is true notwithstanding appellants ’ contention that because they sought to recover an unliquidated claim for damages, they could not garnishee in a suit at law. This circumstance does not give equity jurisdiction incident to suits for the recovery of unliquidated claims. The jurisdiction is still on the law side of the court. Further, by their notice of recoupment in the law ease commenced in the circuit court, defendants put in issue the same claim of a right to recover for defective installation as is alleged as a basis of relief sought in the chancery suit. Clearly it could not be adjudicated in both cases. In any event in view of our holding herein plaintiffs could not have recovered in the chancery case on the merits of the issues there presented. Plaintiffs’ appeal from the decree dismissing their hill of complaint is without merit. The decree entered in the circuit court is affirmed, with costs to appellees and costs of this court may be taxed against the sureties on the appeal bond. McDonald, C. J., and Weadock, Potter, Sharpe, Fead, Wiest, and Butzel, JJ., concurred.
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Butzel, J. Fractional School District No. 9 in the townships of Waterford and Pontiac, Oakland county, Michigan, is a municipal corporation and plaintiff in this cause. Upwards of 50 years ago it built a schoolhouse on a triangular piece of land situated in the east half of the southeast quarter of section 13, township of Waterford, Oakland county, Michigan. The land is more, particularly described as: “Beginning at the intersection of the northerly line of the highway formerly known as the Saginaw Turnpike and now known as the Dixie Highway or Michigan-U. S. 10, with the westerly line of the highway on the township line between the townships of Pontiac and Waterford, said highway being marked Silverwood Avenue on the plat of Oakland Hills Subdivision, thence northwesterly along the northerly line of said Dixie Highway or Michigan-U. S. 10 distant 256.7 feet or thereabouts to the southerly line of a street or highway running northeasterly to said Silverwood avenue, thence northeasterly along the southeasterly side of said street or said highway running northwesterly to Silverwood avenue as aforesaid distant 202.3 feet or thereabouts to the westerly line of Silverwood avenue, thence southerly along the westerly line of Silverwood avenue distant 275.5 feet or thereabouts to the place of beginning; said parcel of land being the same parcel described as out lot “A” of the plat of Oakland Hills Subdivision. The parcel in question is a triangular piece of land on the northerly side of Oakland avenue, so-called, just westerly of the line between Waterford and Pontiac townships and is the site of what was formerly known as the Rising Sun school.” The present suit is over the title to this piece of land, hereafter referred to as the schoolhouse land. Elmer L. Beardslee, with his wife, are the only defendants who have any interest in the outcome of the suit. As far as the record shows, the entire one-half of the quarter section, of which the schoolhouse land is but a small part, belonged to one Wycoff at ■the time the plaintiff became interested in it. One Hannah J. Cannons subsequently acquired this one-half of the quarter section and she deeded it to defendant Beardslee and brother in 1909, and Beards-lee subsequently bought out his brother’s interest. The record discloses no conveyance or other written instrument from Wycoff to plaintiff, either when it built the schoolhouse, over 50 years ago, or since then. There is no dispute over the fact that for 35 years or thereabouts, prior to 1912, the schoolhouse was used for school purposes. About the year 1912, owing to changing conditions, the plaintiff ceased to use the schoolhouse for school purposes and made arrangements to transfer the school children to Pontiac. Plaintiff has brought this suit for the purpose of quieting the title to the aforesaid schoolhouse land, basing its right to said land solely on the claim of adverse possession. The bill, as first filed, claimed title to the land by virtue of a lost deed that never had been recorded. Defendants answering said bill, as originally filed, stated that if a conveyance ever did exist, it was unquestionably given and only drawn “so as to convey the land only for schoolhouse purposes,” and that since the use thereof had been abandoned for said purposes, plaintiff lost its interest in said schoolhouse land. The answer further alleges that the holding of the land could not have been hostile and adverse inasmuch as it was with the express consent of the owner of the property, and that, therefore, there was no adverse possession. Plaintiff amended its bill, and abandoning its claim of a lost deed, it based its claims wholly on right by adverse possession. Defendants did hot answer the amended bill, but their original answer is sufficient to raise the issues brought out in the case. The testimony in the case is vague and uncertain, and there is absolutely no evidence as to what the terms of the grant to plaintiff were. There is the testimony of one witness whose father told him that Wyeoff, the donor, had told him that the property was given to plaintiff “so long as it was used for educational purposes,” but no one could give competent testimony as to what Wycoff said, or what was said by the officers of plaintiff in regard to the terms of the donation, or what- the real facts are. There was evidenc'e to the effect that about 15 years prior to the beginning of the suit the property was abandoned for schoolhouse purposes. There is testimony by defendant Beardslee that after he acquired the property, and 35 years after the donation, he did make the claim that the property was only given for schoolhouse purposes. The circuit judge held that there was adverse possession prior to the abandonment of the property for schoolhouse purposes; that there was further adverse possession for the ■. statutory period subsequent to the abandonment of the property for schoolhouse purposes; and further, that, even if defendants’ theory is correct that the property was given over 50 years ago subject to a condition subsequent, the defendants had no right of reverter. He granted a decree quieting title in plaintiff, as prayed for in plaintiff’s amended bill of complaint. A careful consideration of the case convinces us that we should not disturb the result of the decree of the lower court. There is no question but that if defendants’ claim is correct, under the decision of this court in the case of Patrick v. Young Men’s Christian Ass’n, 120 Mich. 185, 196, the period of occupancy under a permissive right could not be considered as hostile and the time of such period tacked onto the period of hostile occupancy so as to show adverse possession. There may even be some question as to the length of the period of time since the abandonment of the property for schoolhouse purposes. It is not necessary to consider this question. Under a fair and reasonable interpretation of what actually did take place, as far as the meagre testimony goes, we must conclude that the case falls entirely within the rule laid down in Halpin v. School District, 221 Mich. 308. The written grant in this latter case was as follows: “Said land to be used as a site for schoolhouse. And the said parties of the second part do hereby agree that whenever said site ceases to be used for school purposes, then all their right and title to said land shall be given over to the said party of the first part, their heirs and -assigns, in the same right and title as before the execution- of this instrument; together with all and singular the hereditaments and appurtenances thereunto belonging or in any wise appertaining.” * * * Defendants’ counsel in a very able brief tries to distinguish between a conditional limitation and a condition subsequent, and claims that at most the grant to plaintiff was a conditional undertaking by which grantee acquired the property subject to this limitation, and that it was not a condition subsequent for which the right of reverter could not be conveyed or assigned before the breach. The distinction between a conditional limitation and a condition subsequent at times becomes very narrow. The evidence in this case does not show that the condition could have been any stronger in favor of the defendants than the one set forth in the opinion in the Halpin Case. We believe that the present suit is entirely governed by the Halpin Case, and that at the most a right of reverter was reserved to grantor, his heirs and assigns, dependent upon a breach of a condition subsequent, and said right of reverter could not be conveyed or assigned before the breach. The opinion of the lower court should be affirmed, with costs to plaintiff. • ' North, C. J., and Fead, Wiest, Clark, McDonald, Potter, and Sharpe, JJ., concurred.
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McDonald, J. This action was brought to recover damages for breach of contract. The contract, which was in writing, provided for the sale to the plaintiff of 200 gross tons of shoveling steel at $9.75 a ton f, o, b. Gfrand Rapids, Michigan, to be delivered on shipping instructions not later than January 1,1925. The steel was not delivered. It is claimed that because of defendants’ refusal to deliver according to contract it became necessary for the plaintiff to buy in the open market at an advanced price to fill orders from its customers, and that for the amount so purchased it was compelled to pay $1,286 above the price specified in the contract. To recover that amount this suit was brought. The plaintiff seems to think that delivery of the steel, w'as refused because of the advance in price, but the defendants say that they did not sell the plaintiff any steel, that their agreement was tq sell a quantity of old iron called Win-nick iron then stored in a junk yard in the city of Grand Rapids, and that the words “shoveling steel” were written into the contract by the plaintiff after it was signed, and, for that reason, they refuse to recognize its validity. The issue thus raised was submitted to the jury, and the defendants received a verdict in their favor, on which judgment was entered. The plaintiff has brought error. The principal error relied on relates to the admission of certain testimony on redirect-examination of George Sparberg, a witnéss for the defendants. ■ He was employed by the plaintiff company and was present when the contract in question was made. On direct-examination he testified that the agreement was for the sale of Winnick iron and not for shoveling steel, that whén the contract was reduced to writing the kind of material was not specified, that Mr. Smith signed it, and that the following morning, at the direction of Mr. Colitz, president of the plaintiff company, the stenographer wrote into the contract the words, “shoveling steel, suitable and acceptable to any customer.” The witness was not in the employ of the company at the time of the trial. On cross-examination, counsel for the plaintiff undertook to show that he left the company because of differences with Mr. Colitz over irregularities and shortages in his accounts. He was asked: “Q. Isn’t it-true that some time in the summer of 1924 that you made a settlement with the Central .Iron & Metal Company and signed a written agreement reciting your shortages and paid back to -the Central Iron & Metal Company in the neighborhood of $3,5001 “A. Absolutely not. ” For the purpose of impeachment, the agreement was offered and received in evidence and- read to the jury. On redirect-examination he was asked: “Q. Mr. Sparberg, can you tell us what are the matters in dispute talked about in that paper? “A. Tes, sir. It is a long story. Shall I start from the beginning and tell the whole story? “The Court: Answer the question the best way you can.” It was here the trouble began. Mr. Sparberg was a clever witness. He was very unfriendly to Mr. Colitz. He seemed more anxious to fasten some rascality on Colitz than to defend against the charges which had been made affecting his own honesty. Over constant objections from plaintiff’s counsel, he repeatedly related to the jury the details of many business transactions between the plaintiff and other companies In which Mr. Colitz was held up to be wholly lacking in personal and business integrity. For instance, he testified to a business transaction that Mr. Colitz had with James S. Miller & Company. He said: “James S. Miller & Company sent in a lot of billets, from iron billets, that called for hundreds and hundreds of tons, sent them in for storage to the Central Iron & Metal Company and in the meantime James S. Miller died. The result was that everything was in a tangle, the company was thrown into bankruptcy, and the Central Iron & Metal Company took the stand there was no more billets there that belonged to James S. Miller. In order to get the matter smoothed out, so there would be no more billets — but there were billets there — Mr. Colitz took into his employ the secretary of the — or the secretary to James S. Miller who knew all about the transaction and kept him on his pay roll and had him working for him, and some of these letters sent to Mr. McKenna, he wrote as secretary of James S. Miller & Company, and of course then everything was squashed.” There is nothing m this testimony which in any way tends to explain the charge of alleged shortages or irregularities with the plaintiff company. Its only effect was to show that Mr. Colitz defrauded the estate of James S. Miller out of hundreds of tons of iron by bribing the secretary to send false letters. The witness further testified that the plaintiff bought 2,000 tons of stock at $80 a ton from the General Fibre Company, that inside of 30 days the market price dropped to $40 a ton, and to avoid the loss: “They took and sent a man down to the Lincoln Paper Mills at Elkhart, Indiana, and they bribed the receiving clerk there to reject one of the cars.” Here, again, Mr. Colitz was shown to have bribed a clerk in order to avoid liability in a transaction wholly foreign to any issue in this case. We will not extend this opinion by reference to other portions of Mr. Sparberg’s testimony. Much of it was highly improper. Mr. Colitz was a witness for the plaintiff company. He was its president and active manager. He and Mr. Sparberg were tbe only witnesses on' the question of whether the contract had been changed after it was signed. That was the only issue in the case. Colitz was thoroughly discredited before the jury by injecting matters that had no bearing whatever on any part of the controversy. If Sparberg had been allowed to explain the Einstein theory of relativity, it would have been just as material and much less harmful. Because of this error, the judgment is reversed and a new trial granted. Plaintiff will have costs. North, C. J., and Fead, Butzel, Wiest, Clark, Potter, and Sharpe, JJ., concurred.
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Fead, J. This is certiorari to review mandamus proceedings. Both parties appeal but defendants are content with the judgment of circuit court. Plaintiff, a policeman of the city of Dearborn since 1925, was suspended by the chief of police on August 26, 1929, because he had been arrested on a charge of rape. The next day he was notified by a police lieutenant that the commission of safety would meet in the evening as a trial board, charges would be preferred against plaintiff in relation to the rape complaint and he would have an opportunity to defend himself. Plaintiff stated he would not appear before the trial board on that date and would never appear before it. This being reported to the commission, it heard the woman and entered an order dismissing plaintiff from the service. The city charter provides: “No fire department officer or police officer shall be demoted or dismissed and no member of either force, except probationary members, shall be dismissed except npon formal complaint and after trial and conviction by the commission of safety sitting as a trial board.” No formal complaint was made. Plaintiff did nothing further until January 9, 1930, when he wrote the commission that the case against him had been dismissed and asked for reinstatement as a patrolman. • In this letter, plaintiff made no claim of illegal discharge or right to the office. The commission took no action upon the request. May 20, 1932,.plaintiff’s counsel notified the commission that he had been retained by plaintiff and that the latter claimed he had not had a trial as required by the charter and asked an opportunity to present plaintiff’s case to the commission. The commission did nothing about it. May 24th plaintiff presented petition for mandamus to compel defendants to reinstate him to active duty as a patrolman. After hearing, the court entered judgment on June 13th, dismissing the petition and order to show cause, the entry reciting*: “The corporation counsel of the city of Dearborn having consented to grant petitioner a hearing' be- ■ fore the commission of safety of said city of Dear-born, and an opportunity to establish his right to reinstatement on the police force of said city.” October 4th the commission notified plaintiff that he and his witnesses would be heard October 14th, in accordance with the request of the court. Ad journment was liad and the meeting occurred October 19th, with plaintiff and his counsel present. They refused- to present any testimony, taking the position that it was incumbent on the commission to serve written charges on plaintiff. The city attorney construed the recital in the judgment as requiring plaintiff to proceed to show cause for reinstatement. Much conversation was had but no action taken. October 25th, plaintiff filed the instant petition for writ of mandamus, praying reinstatement and back salary at $2,500 per year. In an affidavit, defendants set up the prior proceedings, claimed the former judgment was res judicata, and they had complied with it. January 6, 1933, judgment was entered denying the petition without prejudice but ordering the commission to prefer and serve charges on plaintiff in accordance with the charter. , • Formal charges were served on plaintiff January 12th. The next dáy he filed, this petition for certiorari, in which he forgot to mention the first mandamus proceedings and the service of charges upon him. We need not determine whether plaintiff was an officer or employee. In either case, he could not be dismissed lawfully without formal written charges. McComb v. City of Lansing, 264 Mich. 609. However, the charter provision was adopted in the interest of public service. The benefit to individuals is incidental thereto, not the primary purpose of the provision. It is not to the public good that officers or employees shall accept illegal discharge, or rest quiescent under it, and later mulct the public purse for money not earned. Unreasonable delay in asserting claim to the office results in abandonment of it and waiver of the right of trial. Public business requires that the assertion of claim to office be by formal demand and appropriate legal proceedings. It is not sufficient to merely make the claim and leave it open to inaction or controversy. “When a public official is unlawfully removed from office, whether from disregard of the law by his superior or from mistake as to the facts of his case, obvious considerations of public policy make it of first importance that he should promptly take the action requisite to effectively assert his rights, to the end that if his contention be justified the government service may be disturbed as little as possible and that two salaries shall not be paid for a single service. “Under circumstances which rendered his return to the service impossible, except under the order of a court, the relator did nothing to effectively assert his claim for reinstatement to office for almost two years. Such a long delay must necessarily result in changes in the branch of the service to which he was attached and in such an accumulation of unearned salary that, when unexplained, the manifest inequity which would result from reinstating him renders the application of the doctrine of laches to his case peculiarly appropriate in the interests of justice and sound public policy.” Arant v. Lane, 249 U. S. 367, 372 (39 Sup. Ct. 293, 294). See, also, Phillips v. City of Boston, 150 Mass. 491 (23 N. E. 202); Cote v. City of Biddeford, 96 Me. 491 (52 Atl. 1019, 90 Am. St. Rep. 417). Plaintiff’s declaration that he would never appear before the trial board and his subsequent failure to formally assert his right to the office or employment, within a reasonable time, was a waiver of the right of trial and an acquiescence in his dismissal. When to that is added the fact that he took no judicial proceedings for reinstatement for a period of nearly three years it must be held that he had abandoned his office and is not now entitled to reinstatement nor salary. The judgment is more favorable to plaintiff then is his due. • The circuit court having allowed no costs to either party, judgment is affirmed, with costs of both courts to defendants. McDonald, C. J., and Weadock, Potter., Sharpe, North, Wxest, and Butzel, JJ., concurred.
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Wiest, J. March 28, 1930, defendants Van Om-men, herein referred to as defendants, gave plaintiff a purchase-money mortgage for $2,300, due in 10 years, interest payable semi-annually, with an acceleration clause, operative upon default of interest payments. Defendants also agreed to pay all taxes and assessments levied upon the property and to keep the buildings erected thereon insured. An insurance policy was issued to defendant Bert Van Ommen, with loss, if any, payable to plaintiff as his mortgage interest might appear. Defendants did not pay interest upon the mortgage, nor the taxes upon the property, and plaintiff exercised the right of election under the acceleration clause and declared the full amount of the mortgage due. A barn upon the premises burned in July, 1932, and the insurance company issued a check for the loss, payable to the order of plaintiff and Bert Van Ommen. Mr. Van Ommen refused to indorse the check and plaintiff has not received the money thereon. August 17, 1932, plaintiff filed the bill herein for foreclosure of the mortgage. Defendants, by answer, admitted default in payment of interest and taxes and, by cross-bill, alleged fraudulent inducement in procuring the mortgage and asked for cancellation. Defendants were in default and, under the terms of the mortgage, full payment thereof was at the election of plaintiff accelerated and made due. Plaintiff exercised the right agreed upon and thereby definitely fixed the rights of the parties. Thereafter neither defendants nor the court could fix the rights of plaintiff otherwise. Defendants made no proof in support of their cross-bill and it was dismissed and no appeal taken. Defendants, during pendency of the suit, paid ‡170.75, being the taxes for 1930, 1931 and 1932, and the insurance premium paid by the plaintiff, ’ with interest thereon to the date of payment. Defendants never paid any interest on the mortgage principal and there was due at the time of hearing for such item the sum of $434.70. Upon settlement of the decree plaintiff testified: “I have not received the cash on that check for the fire loss on the farm. I asked them this morning and he says he don’t know if he can pay me the money in cash. That’s what he told me this morning. That’s what the insurance agent told me, the secretary of the insurance company. The Zeeland bank on which the check is drawn is not paying out cash. I didn’t get any money at all. I went to the secretary of the insurance company, and asked for a new check and asked for the money, and he told me he couldn’t pay. They didn’t have no money on hand. They couldn’t pay it. The secretary of the insurance company says, I will give you a note. ’ ’ The court decreed: “That the said defendant insurance company, upon surrender of said check, issue another check for the said sum of $560 payable to plaintiff alone arid that the same, when paid, shall be satisfaction in full of the liability of said defendant insurance company on account of said fire loss, and that the said sum of $560, when paid, be applied by plaintiff as follows: $434.70 on interest here now found to be due on said note and mortgage, $65.50 on plaintiff’s costs of suit, hereby allowed to plaintiff, and $59.70 on the principal sum of said note and mortgage.” The decree did not, in terms, dismiss plaintiff’s bill but, in effect, it was a dismissal and must be so considered. The court evidently entertained the view that Act No. 98, Pub. Acts 1933, commonly known as the moratorium act, authorized disposal of the case in the manner mentioned. The mentioned statute has no application for it was not invoked by defendants; neither were any of its provisions followed by the court and, therefore, its constitutionality is not here involved. Plaintiff’s right to foreclose cannot be sidetracked in the manner attempted. The inability of plaintiff to obtain payment of the insurance from the company we have mentioned, but find it unnecessary to accord the fact more than passing notice. Plaintiff is entitled to a decree according him the rights contracted for in the mortgage, and operative by default of defendants and such rights before the court commanded a decree of foreclosure, and the action had was an unwarranted closing of the court to plaintiff. This court has held that the court of equity has power to relieve the mortgagor from the effect of an operative acceleration clause when the default upon which the acceleration election is exercised is the result of some unconscionable or inequitable conduct of the mortgagee. Wilcox v. Allen, 36 Mich. 160; Zlotoecizski v. Smith, 117 Mich. 202; Rathje v. Siegel, 243 Mich. 376. Nothing of such a nature' is present in the case at bar. The default of defendants and the election of plaintiff made the full amount of the mortgage due and the court could not decree otherwise. In Graf v. Hope Building Corp., 254 N. Y. 1 (171 N. E. 884, 70 A. L. R. 984), right of election, under an acceleration covenant, was exercised, followed by tender of The payment in default, and the court employed the following language pertinent to the instant case: “Plaintiffs may be ungenerous, but generosity is a voluntary attribute and cannot be enforced even by a chancellor. Forbearance is a quality which under the circumstances of this case is likewise, free from coercion. Here there is no penalty, no forfeiture (Ferris v. Ferris, 28 Barb. [N. Y.] 29; Noyes v. Anderson, 124 N. Y. 175, 180 [26 N. E. 316, 317, 21 Am. St. Rep. 657]), nothing except a covenant fair on its face to which both parties willingly consented. It is neither oppressive nor unconscionable (Valentine v. Van Wagner, 37 Barb. [N. Y.] 60). In the absence of some act by the mortgagee which a court of equity would be justified in considering unconscionable, he is entitled to the benefit of the covenant. The contract is definite and no reason appears for its reformation by the courts (Abrams v. Thompson, 251 N. Y. 79, 86 [167 N. E. 178]). We are not at liberty to revise while professing to construe (Sun P. & P. Ass’n v. Remington P. & P. Co., 235 N. Y. 338, 346 [139 N. E. 470]). Defendant’s mishap, caused by a succession of its errors and negligent omissions, is not of the nature requiring relief from its default. Rejection of plaintiffs ’ legal right could rest only on compassion for defendant’s negligence. Such a tender emotion must be exerted, if at all, by the parties rather than by the court. Our guide must be the precedents prevailing since courts of equity were established in this State. Stability of contract obligations must not be undermined by judicial sympathy.” The ease is remanded to the circuit court with direction to enter decree of foreclosure. Plaintiff mil recover costs. Potter, Sharpe, North, Fead, and Butzel, JJ., concurred with Wiest, J. McDonald, C. J., took no part in this decision. The following opinion was written and signed by Mr. Justice Weadock while a member of this court. At his request it is published herewith. Weadook, J. On March 28, 1930, defendants (Van Ommen) purchased a farm from plaintiff for the sum of $4,300 and made a down payment of $2,000 in cash, giving a promissory note secured by first mortgage for $2,300, to become due March 28, 1940, the mortgage providing that the whole amount of principal shall become due forthwith if the interest remains unpaid for 30 days. Defendants never paid any interest and after five instalments remained unpaid for more than 30 days, plaintiff instituted foreclosure proceedings. Defendants never paid any taxes and the plaintiff paid them for three years. It was provided further in the mortgage that the defendants were to keep the buildings on the farm insured against loss by fire and assign the policy and certificates to the plaintiff and that in the event of failure to comply with this provision the principal should become due at the option of the mortgagee. Defendants did procure insurance on the property in their name with a loss clause payable to the plaintiff as his interest might appear but failed to have the policies assigned to plaintiff. On July 6, 1932, the barn burned and the insurance company issued a check for $560 payable to plaintiff and defendant Bert Van Ommen. Van Ommen refused to sign the check and later the bank upon which it was drawn closed and was placed in the hands of a conservator and the check remains unpaid. The court refused to grant a decree of foreclosure on the grounds that an emergency exists and that the Michigan legislature had passed Act No. 98, Pub. Acts 1933, empowering courts to continue actions for the foreclosure of real ‘estate mortgages until not later than March 1, 1935. The court or dered the defendants to pay the taxes and the premium on a policy of insurance taken out by plaintiff after foreclosure proceedings were started, within 60 days. The defendants paid this amount and the court ordered the defendant insurance company to issue another check for $560 to plaintiff, the same to be applied on back interest payments, plaintiff’s costs of suit and the balance on the principal. Plaintiff went to the insurance company and was told by the secretary that they could not pay the claim in cash but would give a note for the amount due. Defendants in their cross-bill claimed misrepresentation upon the sale of the farm and asked that the mortgage be cancelled and the farm deeded to them free and clear of the mortgage. The court found no proof of misrepresentation and dismissed the cross-bill. Plaintiff appeals. There is a brief for appellant but none for appellee. The real question in the case is whether the act referred to is constitutional, because it violates the obligation of contracts, contrary to article 1, § 10 of the Constitution of the United States which provides that “no State shall * * * pass any * * * law impairing the obligation of contracts.” The Constitution of Michigan of 1908, article 2, § 9, — “No * * * law impairing the obligation of contracts shall be passed.” As the remedy for enforc.ing contracts provided by law is a part of the contract it may be conceded at the outset that the act complained of does impair the obligation of contracts. The sovereignty of the United States and of the State of Michigan which is sovereign in all matters not delegated to the United States in the Constitution may exercise its police power ■ notwithstanding the Constitution and under that power, Act No. 98, Pub. Acts 1933, is a valid law and tbe action of tbe circuit court in obeying it should be affirmed. The act provides that an emergency exists in the general credit situation in this State requiring special temporary legislation under the police powers of the State. < In the case of New State Ice Co. v. Liebmann, 285 U. S. 262, 306 (52 Sup. Ct. 371), the words of Justice Brandéis in his dissenting opinion, in which Justice Stone joined, are applicable in this case: “The people of the United States are now confronted with an emergency more serious than war. Misc.y is widespread, in a time, not of scarcity, but of overabundance. The long-continued depression has brought unprecedented unemployment, a catastrophic fall in commodity prices and a volume of economic losses which threatens our financial institutions. Some people believe that the existing conditions threaten even the stability of the capitalistic system. Economists are searching for the causes of this disorder and are re-examining the bases of our industrial structure. Business men are seeking possible remedies. Most of them realize that failure to distribute widely the profits of industry has been a prime cause of our present plight.” The existence of this power is not a new question in this State. People v. Hawley, 3 Mich. 330. This case was followed by this court in Teithmiller v. People, 44 Mich. 280, 285, in a unanimous opinion by Justices Cooley, Campbell, Graves and Marston. The later cases also sustain it. Bolden v. Grand Rapids Operating Corp., 239 Mich. 318 (53 A. L. R. 183). All rights are subject to the police power. Kelley v. Judge of Recorders Court, 239 Mich. 204 (53 A. L. R. 273). The case of Detroit Trust Co. v. Lipsitz, 264 Mich. 404, only held that the law of 1925 relating to rents did not apply to mortgages made prior to that date. Minnesota has enacted a statute similar to the Michigan statute in question, chapter 339 of the Laws of 1933, and it. has been sustained by the Supreme Court of Minnesota in the case of Blaisdell v. Home Building & Loan Association, 189 Minn. 422 (249 N. W. 334, 86 A. L. R. 1507). That court said on page (N. W.) 334 (.syllabi): “Appellants concede as they must that chapter 339, Laws 1933, under which the time for redemption from mortgage foreclosure sales may be extended, impairs the obligation of the mortgage contract. “The existence of the economic emergency justified the legislature in the exercise of the police power of the State to enact the law to relieve from the emergency. “Whether the emergency existed and was of such nature that resort might be had to the police power of the State was primarily for the legislature, but though the courts have authority to determine whether such emergency in fact exists, common knowledge of conditions and the action of the President and the congress indicate a reasonable basis for legislative action! “The law goes no farther than reasonably necessary in granting relief under the existing conditions.” Blaisdell petitioned the trial court for an order staying foreclosure of a mortgage pursuant to the emergency act which the trial court denied and he appealed to the Supreme Court of Minnesota which reversed the order and an appeal was taken to the Supreme Court of the United States, was advanced for hearing and set for Nov. 6, 1933, and was argued there on November 8th and 9th. The Minnesota law in question is so like the Michigan statute that extended quotations will be made from the opinion of the supreme court in the Minnesota case. “Appellants presented a petition to the district court for an order extending the period of redemption under the provisions of c. 339, Laws 1933. The substance of the petition was that appellants owned a certain lot in Minneapolis, which was their homestead and of the reasonable value of $15,000; that appellants on May 1, 1931, executed and delivered their mortgage to respondent on said lot to secure the payment of a certain sum of money, which mortgage contained a valid power of sale by advertisement; that thereafter by reason of circumstances beyond the control of appellants default in the condition of the mortgage was made, and it was foreclosed by advertisement, and sold to respondent on May 2, Í932, for $3,700.98; that the time of redemption will expire on May 2, 1933, and that respondent is the owner and holder of the sheriff’s certificate of sale, on the foreclosure; that appellants have made earnest efforts to refinance the loan and redeem, but have failed because of the economic depression that has existed throughout the State for the last three years, and that unless the period of redemption be extended the property will be irretrievably lost to appellants; that the reasonable net income in normal times is $115 per month, and that for the last year it has been only $37 per month; that the reasonable value of the property greatly exceeds the money due on the mortgage; that unless the time to redeem from the said sale be extended, appellants will suffer the loss of their whole equitable interest in the property; and appellants prayed that the court grant a hearing to extend the period of redemption until May 1, 1935, that it determine the reasonable rental value of the property, and directing and requiring appellants to pay all or such reasonable part of such rental value toward the payments of taxes, insurance and interest on the mortgage indebtedness as to the court appears reasonable and just. On the hearing respondent objected to the introduction of any evidence on the ground that chap. 339, Laws 1933, was unconstitutional in that it impaired the obligation of the mortgage contract, that it was special and class legislation, and not warranted under the police power of the State. The objection was sustained, and appellants’ motion for a new trial being denied, they appealed. “It is declared to be an emergency measure, and is not to remain in operation beyond May 1, 1935. Its object is to authorize the district court to extend the time of redemption from mortgage foreclosure sales and execution sales of real estate, and incidentally thereto, to withhold during that time the power of sale by advertisement, and the right to deficiency judgments. That this is impairing the obligation of the mortgage contract and the rights of judgment creditors is settled by the following decisions: Heyward v. Judd, 4 Minn. 483; Goenen v. Schroeder, 8 Minn. 387; Carroll v. Rossiter, 10 Minn. 174; Hillebert v. Porter, 28 Minn. 496 (11 N. W. 84); O’Brien v. Krenz, 36 Minn. 136 (30 N. W. 458); Dunn v. Stevens, 62 Minn. 380 (64 N. W. 924, 65 N. W. 348); Bronson v. Kinzie, 1 How. (42 U. S.) 311; Edwards v. Kearzey, 96 U. S. 595; Barnitz v. Beverly, 163 U. S. 118 (16 Sup. Ct. 1042). “The only ground upon which chap. 339, Laws 1933, can be sustained is that it is legislation in virtue of the police power of the State called into exercise because of ‘the public economic emergency’ which the act declares exists in the State. Respondent concedes that under the police power the State may impair the obligations of contract. Courts have so held. State, ex rel. Twin City B. & I. Co., v. Houghton, 144 Minn. 1 (174 N. W. 885, 176 N. W. 159, 8 A. L. R. 585); State, ex rel. Beery, v. Houghton, 164 Minn. 146 (204 N. W. 569, 54 A. L. R. 1012); Sligh v. Kirkwood, 237 U. S. 52 (35 Sup. Ct. 501); Price v. Illinois, 238 U. S. 446 (35 Sup. Ct. 892); Perley v. North Carolina, 249 U. S. 510 (39 Sup. Ct. 357); Miller v. Schoene, 276 U. S. 272 (48 Sup. Ct. 246). In Sligh v. Kirkwood, supra, we find the following: ‘The police power, in its broadest sense, includes all legislation and almost every function of civil government. Barbier v. Connolly, 113 U. S. 27 (5 Sup. Ct. 357). It is not subject to definite limitations, but is co-extensive with the necessities of the case and the safeguards of public interest. Camfield v. United States, 167 U. S. 518, 524 (17 Sup. Ct. 864). It embraces regulation so designed to promote public convenience or the general prosperity or welfare as well as those specifically intended to promote the public safety or the public health. ’ To what extent emergency legislation under the police power of the State may impair contract obligations or impinge on any constitutional provision, has received exhaustive considerations in cases arising out of the so-called housing* legislation in New York and in the District of Columbia. On all questions involved and decided therein the similarity or occasion, for the emergency legislation and its effect in impairing the obligations of contract, and in violating the due process clause are so pointedly applicable here that we feel they should be followed. The opinion of Judge Pound in People v. LaFetra, 230 N. Y. 429 (130 N. E. 601, 16 A. L. R. 152), and the concurring opinion of Judge Crane, expressed in Guttag v. Shatzkin, 230 N. Y. 647 (130 N. E. 929), go quite fully into every legal proposition now raised. Edgar A. Levy Leasing Co. v. Siegel, 230 N. Y. 634 (130 N. E. 923), decided on the opinion in the LaFetra Case, was affirmed in 258 U. S. 242 (42 Sup. Ct. 289). We quote from Judge Pound’s opinion the principles controlling in a case of this sort: ‘Whether or not a public emergency existed was a question of fact, debated and debatable, which addressed itself primarily to the legislature. That it existed, promised not to be presently self-curative, and called for action, appeared from public documents and from common knowledge and observation. If the lawmaking power on such evidence has determined the existence of the emergency and has in the main dealt with it in a manner permitted by the constitutional limitations upon legislative power, so far as the same affect the class of landlords now challenging the statutes, the legislation should be upheld. * * * The proposition is equally fundamental that the State may establish regulations reasonably necessary to secure the general welfare of the community by the exercise of its police power, although the rights of private property are thereby curtailed and freedom of contract is abridged (citing-authorities). * * * Emergency laws in time of peace are uncommon but not unknown. Wholesale disaster, financial panic, the aftermath of war (Hamilton v. Kentucky Distilleries & W. Co., 251 U. S. 146, 161 [40 Sup. Ct. 106]), earthquake, pestilence, famine, and fire, a combination of men or force of circumstances may, as the alternative of confusion or chaos, demand the enactment of laws that would be thought arbitrary under normal conditions (Bowditch v. Boston, 101 U. S. 16, 18, 19; American Land Co. v. Zeiss, 219 U. S. 47 [31 Sup. Ct. 200]). Although emergency cannot become the source of power, and although the Constitution cannot be suspended in any complication of peace or war (Ex parte Milligan, 4 Wall. [71 U. S.] 2), an emergency may afford a reason for putting forth a latent governmental power already enjoyed but not previously exercised.’ The laws involved in the LaFetra Case permitted tenants to retain possession after the expiration of the lease upon paying reasonable rent, and, where a lease has been entered for a fixed rent, upon the tenant’s application that the stipulated rent was unreasonable or extortionate he could have the rent reduced. The, summary dispossessory remedy was temporarily withdrawn from the landlords. A somewhat similar housing or renting act was passed by congress for the city of Washington. The act of congress and the New York acts came before the Federal Supreme Court in Block v. Hirsh, 256 U. S. 135 (41 Sup. Ct. 458, 16 A. L. R. 165), and Marcus Brown Holding Co. v. Feldman, 256 U. S. 170 (41 Sup. Ct. 465), affirming 269 Fed. 306, and were sustained by a five to four decision. Later cases arising from the same acts are Edgar A. Levy Leasing Co. v. Siegel, 258 U. S. 242 (42 Sup. Ct. 289), and Chastleton Corp. v. Sinclair, 264 U. S. 543 (44 Sup. Ct. 405). In the Siegel Case the New York housing acts were again under attack on various constitutional grounds, but upheld, there being only three dissenters at that time. The proposition was there pressed that the relation of landlord and tenant ‘is a private one and is not so affected by a public interest as to render it subject to regulation by the exercise of the police power. ’ But the court held the question foreclosed by the Marcus Brown Holding Co. Case. Again it was contended that that case did not squarely present whether or hot the housing acts impaired contract obligations, but the court in denying this contention, quotes from the Marcus Brown Holding Co. decision: ‘The chief objections'to these acts have been dealt with in Block v. Hirsh. In the present case more emphasis is laid upon the impairment of the obligation of contract of the lessees to surrender possession and of the new lease which was to have gone into effect upon October 1, last year. But contracts are made subject to the exercise of the police power of the State when otherwise justified, as we have held this to be. ’ Several cases are cited to support the last proposition. It is, however, true that the dissenting justices deny that the cases sustain what the majority deduce from them. Even though the dissenting opinions in the Block and Marcus Brown Holding Co. Cases may appear more in harmony with past interpretation of constitutional provisions, this court should follow the principles established by the prevailing opinions therein. They, and the later cases above cited, hold that in an emergency the legislature under the police power of the State may temporarily withdraw a summary remedy given by statute for the enforcement of contract rights, provided some adequate remedy remains; that in a public emergency statutes may be enacted which impair temporarily the obligations of contract, provided they be such as the emergency reasonably demands and the impairment he no more than is just and equitable under the circumstances; and that whether such an emergency exists as justifies the exercise of the police power is primarily for the legislature to whose judgment courts must give due weight, but the courts do possess the final authority to determine whether the emergency does in fact exist (Chastleton Corp. v. Sinclair, supra), and whether the legislation for its relief is just and reasonable. Lawton v. Steele, 152 U. S. 133 (14 Sup. Ct. 499). “The main proposition upon which this law must rest is the existence of ‘a public economic emergency. ’ § 4 4 Asa rule, in times of great economic depression and great depreciation of real estate values, the mortgagee does not desire the land, and rather than take the land, would he glad to grant longer extensions on better terms than the court would be authorized to give under this law. In a great many foreclosure sales and execution sales under the present depreciated values the right of redemption is of no value, and the owner will not use it even if funds were available. And again, it may well be argued that legislation which impairs contract obligations defeats its purpose. It tends to withdraw from the borrower the funds which otherwise he might procure. Lenders will not loan their money in a State viiere the contract for its repayment may be impaired at the uncontrolled whim of its legislature. But, with these and other objections to the law which may he raised, we reach the con elusion that it must be sustained. In addition to the weight to be given the determination of the legislature that an economic emergency exists which demands relief, the court must take notice of other considerations. The members of the legislature come from every community of the State and from all the walks of life. They are familiar with conditions generally in every calling, occupation, profession and business in the State. Not only they, but the courts must be .guided by what is common knowledge. It is common knowledge that in the last few years land values have shrunk enormously. Loans made a few years ago upon the basis of the then going values cannot possibly be replaced on the basis of present values. We all know that when this law was enacted the large financial companies, which had made it their business to invest in mortgages, had ceased to do so. No bank would directly or indirectly loan on real estate mortgages. Life insurance companies, large investors in such mortgages, had even declared a moratorium as to the loan provisions of their policy contracts. The president had closed banks temporarily. The congress, in addition to many extraordinary measures looking to the relief of the economic emergency, had passed an act to supply funds whereby mortgagors may be able' within a reasonable time to refinance their mortgages or redeem from sales where the redemption has not expired. With this knowledge the court cannot well hold that the legislature had no basis in fact for the conclusion that an economic emergency existed which called for the exercise of the police power to grant relief.- “But it is claimed that the emergency sought to be relieved by this law is a private matter between mortgagors and mortgagees or between owners of lands and their judgment creditors which is not of public concern, so as to justify the exercise of the State’s police power. It is said the housing statutes for the cities of Washington and New York related to shelter or places to live — a matter involving public health, public morality, and public safety. Yet when those■statutes came before the courts it was urged, and with perhaps as good reason as in the instant case, that they related to the private -affairs between landlords and tenants in which the public was not interested. So here respondent asserts that whether title to lands pass to the mortgagees at any certain time between now and May 1, 1935, can be of no public concern. The title to lands, it is said, must rest in some one, and public welfare is not dependent upon whether it is in one individual or in another. To us it appears about as much of public concern whether numerous owners of homes and lands — providing the necessary shelter and means of livelihood — must lose them because a temporary unforeseen economic depression prevents a redemption within the time the law or contract permits, as that certain tenants who are in possession shall remain in spite of the terms of the lease because of the temporary scarcity of available quarters. All would-be tenants could not be accommodated, and it would seem that so long as the landlords were willing- to let all available room it was none of the public’s concern who were accepted as tenants. But the courts found the emergency and its relief one of sufficient public interest to permit the police power of the State to impair'the obligation of contracts. It appears to us that the economic emerg-ency which now- threatens the loss of homes and lands which furnish those in possession the necessary shelter and means of subsistence is an equally potent cause for the enactment of chapter 339, Laws 1933, under the police power of the State, that the housing emergency was in Washington and New York, which the supreme court of the United States deemed sufficient for the enactment of the relief statutes for those cities. We have not overlooked the fact that Mr. Justice Holmes, who spoke for the majority in Block v. Hirsh and Marcus Brown Holding Co. v. Feldman, supra, in Pennsylvania Coal Co. v. Mahon, 260 U. S. 393 (43 Sup. Ct. 158, 28 A. L. R. 1321), said that the cases mentioned went £to the verge’ of what was permissible under the constitutional limitations. However, to us no more of public health or public welfare seems involved in the extension of the tenancy to certain tenants then in possession of shelter than in the extension of the occupation of homes, shelter, or means of subsistence to mortgagors and judgment debtors in possession. That the courts may doubt the wisdom of the law is no ground upon which to declare it invalid. It is to be presumed constitutional until the contrary appears beyond a reasonable doubt.” Since the Block and Feldman Gases were decided, two of the four dissenting justices have died, Chief Justice White and Justice McKenna. “It cannot be said that this law goes beyond what is reasonable to give relief in a temporary emergency. At the mortgagor’s option the right to foreclose by advertisement may be withheld or rather changed into a foreclosure by action during the operation of the law, that is, up to May 1,1935. The right to foreclose by action remains intact. The right of redemption may be extended by the district courts to the date mentioned; but to do so the courts must determine the terms upon which such extension may be had, and during that period the rental value of the property must be applied upon the payment of taxes, insurance and the debt. The condition that the mortgagor or the one obtaining the extension to redeem must meanwhile pay the rental value of the property goes far to giving compensation for the extension secured. The relief appears to be no more than what must be regarded as reasonable and just. * * * “After this cause was submitted, on June 12, 1933, the supreme court of North Dakota filed its decision in State, ex rel. Cleveringa, v. Klein, 63 N. D. 514 (249 N. W. 118, 86 A. L. R. 1523), holding the act of that State, extending the time of redemption from real estate mortgage foreclosure sales and real estate execution sales, unconstitutional. The court said that no matter what the emergency might be the bill of rights in their State Constitution prohibited the legislature from enacting any law impairing the obligations of private contract.” The court of appeals of the State of New York and the supreme court of the United States are regarded as higher authority. The law is general, applying to the whole State. It extends to all mortgage foreclosure sales however conducted until March 1, 1935. “The temporary economic emergency affecting such mortgagors * * * justified the classification. That the law does not cover every case of owners of property who are affected by the economic depression or emergency, does not condemn it. State v. Elliott, 135 Minn. 89 (160 N. W. 204); Miller v. Wilson, 236 U. S. 373 (35 Sup. Ct. 342, L. R. A. 1915 F, 829). “The order is reversed.” Blaisdell v. Home Building & Loan Ass’n, 189 Minn. 422 (249 N. W. 334, 338, 86 A. L. E. 1507). "Wilson, Chief Justice, concurring, said: “The public is interested in the solvency and prosperity of the people. It follows that it is detrimental to the public interest for our people to lose their valuable lands, improved or unimproved, at a time when' the banks are closed and when it is impossible to find anyone who will make a mortgage loan. Funds are simply not available regardless of the security offered. The plight of the landowner has been enhanced' because of the depreciation in land values resulting in many cases of tbe land being-worth less than the mortgage. In such case the mortgagor can have no legislative help. Conditions are abnormal. To this situation the banks, acting under governmental requirements, have contributed by calling for liquidation to strengthen their own reserves. “As a rule mortgagees want their money, not land. Most of the real estate mortgages existing today were contracted when the general price level was about twice, and the farm values about four times, as high as today. It is estimated that mortgage foreclosures in the last three years aggregate about half a million in number. Farm mortgage debts amount to about nine billion dollars.” The United States supreme court “in Block v. Hirsh, 256 U. S. 135 (41 Sup. Ct. 458, 16 A. L. R. 165), and Marcus Brown Holding Co. v. Feldman, 256 U. S. 170 (41 Sup. Ct. 465), established a modern judicial doctrine. * # # There has always been a development in judicial construction to meet, new and changing conditions.” As said by Mr. Chief Justice Green in Hodges v. New England Screw Co., 1 R. I. 312, 356 (53 Am. Dec. 624), “ ‘The law is progressive and expansive, adapting itself to the new relations and interests which are constantly springing up in the progress of society.’ “The mortgagee is entitled to some protection during the interim of the extension and this statute gives him that protection. These laws have been enacted in several of the States and while all courts do not agree the modern-judicial doctrine seems to sustain such legislation. An interesting and helpful discussion is found in 42 Yale Law Journal, p. 1236. “In considering what may be done under a statute we must presume that all courts will properly perform their duties. “Mortgagees have little fear from this particular statute. New of them would wish to deprive the mortgagor of an opportunity of getting Ms property out of a burning bouse. I insist that tbe courts can do very little for tbe. mortgagor under tbis statute. Tbe legislature so intended. * * * Our legislature acted cautiously and yet probably went as far as they could. In my judgment tbis statute is not a violation but a vindication of our form of constitutional government.” Tbis case was again before the Supreme Court of Minnesota on July 27, 1933, and on appeal from tbe judgment entered on the finding of fact and conclusions of law, it was held that tbe first appeal ruled this and it was so held, July 27, 1933, 189 Minn. 422 (249 N. W. 893, 86 A. L. R. 1507). Tbe New York court of appeals in tbe case of People v. Nebbia, 262 N. Y. 259 (186 N. E. 694), decided July 11, 1933, upheld a similar statute of tbe State of New York dealing with tbe dairy business, citing tbe ease of Charles Wolff Packing Co. v. Court of Industrial Relations of Kansas, 262 U. S. 522 (43 Sup. Ct. 630, 27 A. L. R. 1280). On page 268, 262 N. Y. (186 N. E. 698) tbe court said: “We are accustomed to rate regulation in cases of public utilities and other analogous cases and to tbe extension of such regulative power into similar fields. Eents have been regulated to prevent tbe exactions of greedy landlords who would contend that their property was taken from them when they were deprived of tbe right to do what they would with their own. Block v. Hirsh, 256 U. S. 135 (41 Sup. Ct. 458, 16 A. L. R. 165); Marcus Brown Holding Co. v. Feldman, 256 U. S. 170 (41 Sup. Ct. 465). Compensation has been provided for workmen injured by tbe necessary risks of their employment, although tbe common law cast tbe burden of such risks on tbe workman. Arizona Employers Liability Cases, 250 U. S. 400 (39 Sup. Ct. 553, 6 A. L. R. 1537). Preference to citizens in employment of laborers on public works has been upheld. Heim v. McCall, 239 U. S. 175 (36 Sup. Ct. 78, Ann. Cas. 1917 B, 287). Prevailing rate of wages laws for workmen on municipal contracts have been upheld. Atkin v. Kansas, 191 U. S. 207 (24 Sup. Ct. 124); Austin v. City of New York, 258 N. Y. 113 (179 N. E. 313). Usury laws are of an ancient house. Tariffs for the protection of home industries are upheld. Sugar bounties have not been declared unconstitutional. United States v. Realty Co., 163 U. S. 427 (16 Sup. Ct. 1120). The rates of grain elevators (Munn v. Illinois, 94 U. S. 113) and cotton gins may be regulated (Frost v. Corporation Commission of Oklahoma, 278 U. S. 515 [49 Sup. Ct. 235]). Rate fixing in the business of insurance has been upheld. German Alliance Insurance Co. v. Superintendent of Insurance of Kansas, 233 U. S. 389 (34 Sup. Ct. 612, L. R. A. 1915 C, 1189); O’Gorman & Young, Inc., v. Hartford Fire Insurance Co., 282 U. S. 251 (51 Sup. Ct. 130). The regulation of wages of railroad employees has been sustained. Wilson v. New, 243 U. S. 332 (37 Sup. Ct. 298, L. R. A. 1917 E, 938, Ann. Cas. 1918 A, 1024). The business of dealing in milk has been regulated so as to protect producers who must sell their produce on credit. People v. Perretta, 253 N. Y. 305 (171 N. E. 72, 84 A. L. R. 636). Commission merchants have been required to give bonds for honest accounting to prevent evils incident to the business of dealing in farm products. Payne v. Kansas, 248 U. S. 112 (39 Sup. Ct. 32).” The court of appeals held, 262 N. Y. 271, 272 (186 N. E. 699): “State courts should uphold State regulation whenever possible. They should be clearly convinced that a statute is unconstitutional before they declare it invalid,” citing Ives v. Railway Co., 201 N. Y. 271 (94 N. E. 431, 34 L. R. A. [N. S.] 162, Ann. Cas. 1912 B, 156) and other cases. “With full respect for the Constitution as an efficient frame of government in peace and war, under normal conditions or in emergencies, with cheerful submission to the rule of the Supreme Court that legislative authority to abridge property rights and freedom of contract can be justified only by exceptional circumstances and, even then, by reasonable regulation only, and that legislative conclusions based on findings of fact are subject to judicial review. # * * “With the wisdom of the legislation we have naught to do. * * * “The policy of noninterference with individual freedom must at times give way to the policy of compulsion for the general welfare.” Chief Justice Pound wrote- the opinion of the court. Justices Crane, Lehman, Hubbs and Crouch concurred. Kellogg did not sit and O’Brien dissented. Many have gone through every panic beginning 1873 up to date and in their opinion the present emergency and depression is more serious than all the preceding ones since 1873, combined. Never such want of employment, never such failures of banks, never such greed and selfishness on the part of the few, nevér such bureaucratic domination and waste, never such á multitude of unnecessary officials. Our legislature, knowing, the actual conditions of the present emergency deemed the law a proper one under the police power of the State and it should be sustained. The decision of the circuit court should be affirmed and the case remanded for further proceeding’s in accordance with this opinion. No costs, the appellee filed no brief,
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McDonald, C. J. This is an appeal from an award of compensation by the department of labor and industry. On July 26, 1930, the plaintiff suffered an accidental injury while employed as a cam grinder by the defendant, Muskegon Motor Specialties Company. It is conceded that the accident arose out of and in the course of his employment. The injuries resulting from the accident were a fracture of the left index finger, dislocation of the middle finger, contusion and laceration of all the fingers, thumb and hand. He was earning $27 a week. An agreement approved by the department was entered into with the employer on August 13,1930, providing for the payment of $18 a week. Payments were continued under the agreement until October 15,1930, at which time on application of the defendant an order was made by a deputy commissioner stopping compensation. The order was affirmed by the department on appeal. After this the plaintiff was taken back to work as a night watchman at less wages but as he worked longer hours he received the same pay as he was receiving when injured. After working a year and a half as night watchman he was discharged. Following this he worked for awhile as a meat cutter but was unable to continue because of the condition of his hand. He then filed a petition for further compensation which was granted by the deputy commissioner and affirmed on appeal by the department. From this award the defendants have appealed. The issue presented is one of fact. To sustain the award it must appear that the plaintiff’s physical condition has changed since the order was made stopping compensation on October 15, 1930. Washburn v. Jackson & Tindle, 229 Mich. 644. The department found a changed condition but neither in the opinion filed nor in the plaintiff’s brief is there any reference to evidence in support of the finding. In the testimony taken* no attempt was made to show a change and consequently none was shown. In fact there was no change. On the hearing of the petition to stop compensation the medical testimony then taken shows that the plaintiff’s physical condition was the same as it is now. The doctor had discharged him and he was taken back to work but at employment in which it was not necessary to use his injured hand. At that time he was disabled to the same extent as he is today. We think the department erred in stopping compensa tion but as that order was uot appealed from the matter cannot be reopened except on a showing of changed condition. As there is no evidence to support the finding of the department,' the award is reversed. Weadock, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred with McDonald, C. J.
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McDonald,. J. This bill was filed to restrain the defendant Whipple from enforcing a judgment for restitution of certain land of which Elizabeth Whipple owns the record title and in which the plaintiff claimed a vendee’s interest by virtue of a land contract. • Zofia Godynia and Joseph Basiak each claims an assignment from Mrs. Krysinski and because of their alleged interests were allowed to intervene as parties defendant. The issue between the plaintiff and the defendant Whipple was settled. The only question involved on the hearing of the cause was the validity of the assignments to Mrs. Godynia and Mr. Basiak. The court found against the claim of Basiak but sustained the validity of the assignment to Mrs. Godynia and entered a decree accordingly. The plaintiff and the defendant Basiak have appealed. The issue is solely one of fact. It concerns the two assignments of the plaintiff to Mrs. Godynia and Mr. Basiak. The assignment to Mrs. Godynia was executed on January 24,1925, She owned an equity in Detroit property which she agreed to exchange for the plaintiff’s equity in the Oakland county farm. It is the plaintiff’s claim that the exchange was. never completed; that the assignment was executed and left in escrow with Bonislawska and Nowakowski, real estate agents, with instructions to hold it until Mrs. Godynia had furnished an abstract for examination; that the abstract was not furnished; that the assignment was delivered contrary to her instructions, and therefore she refused to recognize its validity. This claim is not supported by the weight of the evidence. In the transaction, the plaintiff was represented by her husband and Mr. Nowakowski, a real estate agent. Mr. Nowakowski testified that the abstract was furnished before the delivery of the assignment, and that Mr. Krysinski told him it had been examined by his attorney. The other real estate agent represented Mrs. Godynia. He testified that he got the abstract from Mr. Godynia and delivered it to Mr. Krysinski, that Krysinski returned it in a few days and said he was satisfied. Their testimony is supported by Mr. Godynia and by their stenographer who wrote the assignment and who testified that immediately thereafter it was delivered to Mr. Krysinski in the presence of all of the parties. This testimony leaves no doubt that the agreement for the exchange of properties wás fully consummated and the assignment was properly delivered in accordance therewith. The assignment to Joseph Basiak was executed and recorded nearly a year later. The trial court did not believe it was a good-faith transaction. The following excerpt from his opinion has our approval: “Upon the hearing, however, the claim of Basiak was almost entirely without support, and I do not believe it will be seriously controverted that the assignment to him was not a bona fide transaction. He claims that Mrs. Krysinski was indebted to him •for various small loans, which at the end of 1925 totaled over $1,000, and on January 4, 1926, he paid her $200 more, in consideration of which she assigned all of her interest in the contract. Krysinski ’s present attorney for a time also represented Basiak’s interest in the ease, but at the trial his interest was represented by counsel who apparently shares an office with counsel for the Krysinskis. Neither Basiak nor his attorneys took an active part in the trial, and were present but a small portion of the time. The real parties at interest were obviously the Krysinskis, and I have no hesitancy in concluding that the assignment from Mrs. Krysinski to Basiak was not n bona fide transaction and was made for the purpose .of preventing action on her previous assignment of the contract to Mrs. Godynia. ’ ’ On the ground of newly-discovered evidence and for other reasons, the appellants moved for a rehearing. The hearing was had on affidavits for and against the motion. At its conclusion the trial court said: “This case presents one of the most flagrant exhibitions of reckless disregard of the truth that has ever come to my attention. Practically every witness for both parties contradicts every bit of material evidence offered by the opposite side. The affidavits presented both for and against the motion for a new trial have been referred to the prosecuting attorney with instructions to institute an investigation under the so-called ‘one man grand jury statute,’ and to issue warrants for perjury if a sufficient foundation can be established. I am unable at this time to determine which witnesses to believe, and am inclined to the opinion that but little reliance can be placed in the testimony of any of the witnesses except as corroborated by documentary evidence. ‘ ‘ The decree in this case was based upon a written assignment of a contract, and I prefer to accept this written instrument and to give effect to it, rather than accept oral testimony of witnesses in denial of its provisions.” We do not deem it advisable to extend this opinion by an analysis of the sharply conflicting testimony presented by the affidavits in question. We have carefully read them and agree with the conclusion reached by the trial judge. His decree is affirmed except as to that provision which requires Mrs. G-odynia to pay to the plaintiff the sum of $2,796.23. The plaintiff claims no interest in this money. It belongs to Mr. B asi ah. He paid it to the vendor when he received his assignment. If it has been credited on the contract, it should be returned to Basiak by Mrs. Godynia. . The decree should so provide. The defendant Godynia will have costs against the plaintiff. North, C. J., and Feaij, Wiest, Clark, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision.
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Fead, J. Defendant was convicted of bribery, under 3 Comp. Laws 1915, § 14979, in that he corruptly agreed to accept a promise or gift of one-third of $4,000 from Archie "W. Baxter and Lee C. Rockwell, under an agreement or understanding that his vote, opinion, or judgment as a member of- the common council of the village of East Grand Rapids should be given in favor of the council’s granting a certain paving contract to P. W. O’Connor Company, in which Patrick and William O’Connor and Louis Schnoor were interested. Rockwell had pleaded guilty of bribery, and William O’Connor and Schnoor had been convicted of bribery. Baxter was tried upon an information containing a count of bribery of Prye, under 3 Comp. Laws 1915, § 14978, and of attempt to bribe him, under § 15611. He was convicted of the latter offense and his conviction affirmed by this court. People v. Baxter, 245 Mich. 229. Defendant’s principal contention is that he was entitled to a directed verdict of not guilty because, he urges, the testimony affirmatively showed that Rockwell did not personally bribe nor attempt to bribe defendant, and; if Prye was bribed, it was by Baxter; because the verdict in the Baxter case is conclusive upon the State that Baxter did not bribe Prye, but was guilty only of an unconsummated attempt to bribe him; and as bribery requires the concurrent completed acts of two persons, one who gives the bribe and one who receives it, the acquittal of Baxter of bribery discharged Prye. It is the general rule that the conviction or acquittal of one defendant has no legal effect upon the status of other defendants charged with the same offense, whether trial be joint or separate. 16 C. J. p. 1104. An exception to this rule existed at common law with reference to principals and accessories, and still exists as to crimes which, from their nature, cannot be committed by one person, as conspiracy, 12 C. J. p. 6413; riot, 34 Cyc. p. 1784; and, under our statute, lewd cohabitation, Delany v. People, 10 Mich. 241, although under other statutes the contrary is held. L. R. A. 1916C, 654. In such offenses where all have been acquitted except one (or two in case of riot where three are necessary to commit the offense) their acquittal ipso facto acquits the remaining defendant or defendants. The exception, however, is confined to those offenses which are so inherently and completely joint that one accused cannot be proved guilty without also proving that the other is guilty. It does not rest upon the evidence in a particular case, but upon the character of the crime. Physical participation in the offense is not sufficient to create the exception. It requires also a common and identical guilty intent. Thus, while adultery requires the concurrent act of two persons, one, because of guilty knowledge, may be convicted, while the other, because of insanity or tona fide belief in valid marriage, may be acquitted, State v. Cutshall, 109 N. C. 764 (14 S. E. 107, 26 Am. St. Rep. 599), (overruling State v. Mainor, 6 Iredell [28 N. C.] 340); Alonzo v. State, 15 Tex. App. 378 (49 Am. Rep. 207); and upon the same considerations of knowledge and intent, while it has been held that incest should be charged as a joint crime, Baumer v. State, 49 Ind. 544 (19 Am. Rep. 691), one may be guilty and the other innocent. State v. Ellis, 74 Mo. 385 (41 Am. Rep. 321); People v. Patterson, 102 Cal. 239 (36 Pac. 436); Powers v. State, 44 Ga. 209. On a charge of conspiracy between two persons, in order to convict one it is imperative that the jury find the other equally guilty of the same offense. If one be acquitted, it is an integral part of the verdict that the other is also innocent. If the other be then convicted, it is the verdict that the first is also guilty. This results in repugnancy and absurdity in verdicts upon the records of the court. One verdict or the other should fail. The way out is shown in State v. Tom, 13 N. C. 569, in which the court reviewed the old authorities and stated the reason for the rule discharging one of two conspirators when the other has been acquitted: “The true principle is, that both the guilt and innocence of the party attainted, are affirmed in different parts of the proceedings, and so the record is nugatory; and on the side of humanity, innocence is presumed. It then amounts to the acquittal of him who was convicted; because the acquittal of the other is a bar to a second trial of either, for that offense.” State v. Antoine, 42 La. Ann. 945 (8 South. 529), strongly relied on by defendant, is not inconsistent with this statement of the exception. The decision rests upon a peculiarity in pleading. The facts and reasoning are summed up in the syllabus: “An indictment charging, in one count, one defendant with larceny of three hogs, and another defendant, in another count, with having received same three hogs, knowing them to have been stolen property, a verdict and judgment acquitting the defendant of the charge of larceny necessitates the discharge of the other defendant. In such indictment, two genuine [generic] crimes being conjunctively charged, the former is a necessary ingredient of the latter, and the foundation of it.” Bribery is not a joint offense of the giver and receiver, although physical acts of at least two persons must concur to render one guilty of receiving a bribe. Under our statutes, it is made a separate offense as to each, is defined in separate paragraphs, and different penalties are provided. Personal, not joint, corrupt intent is an element of each offense. The giver of a bribe is punishable under 3 Comp. Laws 1915, § 14978, and his offense is complete when he corruptly offers a bribe, although the other refuse it or take it innocently or to deliver the giver to justice. The receiver is chargeable under § 14979, and his offense is complete when he corruptly accepts a bribe, although the giver has no corrupt intent in offering the gift. The following authorities support the separate nature of the offenses of giving and receiving bribes, both at common law and under statutes similar to ours, and hold that one may be convicted and the other acquitted. We have found no authorities to the contrary. Henslow v. Faucett, 3 A. & E. 51; People v. Bunkers, 2 Cal. App. 197 (84 Pac. 364, 370); United States v. Dietrich (C. C.), 126 Fed. 664; Commonwealth v. Murray, 135 Mass. 530; State v. Dudoussat, 47 La. Ann. 977 (17 South. 685); Sims v. State, 131 Ark. 185 (198 S. W. 883); Minter v. State, 70 Tex. Cr. 634 (159 S. W. 286). Where a crime is not inherently joint, but may be committed by one person alone, the trial and verdict as to one participant concludes nothing against or in favor of the others. This may be illustrated by cases involving principals and accessories under statutes which have abolished the distinction and permit all to be tried as principals. The acquittal of the real principal, although he was the sole immediate actor in the commission of the crime, does not, upon the trial of an accessory, establish the innocence of the latter, the fact that the principal did not commit the crime, nor any other fact in issue. The rule is reasonable, because the evidence can hardly be identical in two cases, other witnesses may be found, and testimony not admissible against one defendant may be competent against others. People v. Mangiapane, 219 Mich. 62; Steely v. Commonwealth, 132 Ky. 213 (116 S. W. 714); Christie v. Commonwealth, 193 Ky. 799 (237 S. W. 660, 24 A. L. R. 599); State v. Lee, 91 Iowa, 499 (60 N. W. 119); State v. Bogue, 52 Kan. 79 (34 Pac. 410); State v. Phillips, 24 Mo. 475; State v. Kief, 126 N. Y. 661 (27 N. E. 556). In order to convict Baxter of bribery, it was not necessary to show that Frye had accepted a bribe from him. The records of the court show no acquittal in any case in which Frye’s guilt was in issue, and,, therefore, there is no repugnancy or inconsistency of verdicts to be corrected. As each crime could be committed by one person alone, the trial of Baxter concluded nothing as to Frye. The court did not err in refusing to direct a verdict of not guilty. Defendant concedes the well-established rule that the declarations of co-conspirators in furtherance of the common design are admissible in evidence as against them all, People v. Baxter, supra; People v. Salsbury, 134 Mich. 537, but urges that there was no testimony from which the jury could find that Frye had become a conspirator. There was ample testimony that the O’Connors, Schnoor, Rockwell, and Baxter had entered into conspiracy to obtain a paving contract through the bribery of Frye. Mrs. Green, bookkeeper for Baxter, testified that, while the paving contract project was in progress, these persons came to Baxter’s store frequently; that Frye came there nearly every day to see Baxter and often talked with him on the telephone; that Baxter and Frye discussed the paving contract; that they talked of reorganizing the village into a city and dividing it into wards so they could control it and let paving contracts to the O’Connors; that they discussed and selected the person to make the motion to let the contract at bar to the O’Connors; that Frye suggested that Rockwell was talking too much and Baxter should offer him money to keep his mouth shut and should get a signed receipt from him. There was also testimony that'the O’Connors had given $4,000 to Rockwell, which he was to deposit in a bank; that it was discovered that he had not deposited it, and the O’Connors, Schnoor, Baxter, and Frye met at Baxter’s store to discuss the situation; they talked it over, and Frye complained because they had given him the money. Rockwell also testified that on one occasion he asked Frye how things were going, and the latter said they were “just as good as put over” and money was “something we all could use; ’ ’ that Frye' told him he did not want to be seen talking with him, but if Rockwell wanted to communicate with hirii, to call him on the telephone or come to his house. There were other incidents, but the above are enough to show that there was sufficient testimony to submit to the jury Frye’s participation in the conspiracy. We have considered the other assignments of error and find them not well founded. Conviction is affirmed. •North, C. J., and Butzel, Wiest, Clark, McDonald, Potter, and Sharpe, JJ., concurred.
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North, J. In their bill of complaint plaintiffs seek to have set aside conveyances of real estate to defendant Robert D. Smith or to companies which he organized and controlled and a money decree for the value of such of the properties as have been disposed of by Smith. The relief is sought on the ground of alleged fraud and deceit. The various defendant companies are organizations controlled by defendant Robert D. Smith, and the connection with other individual defendants with the subject-matter of the litigation will be hereinafter indicated. In the circuit court plaintiffs had decree and defendants have appealed. The defendant Robert Smith was engaged in the business of laying out and developing various real estate subdivisions and various other enterprises. Plaintiff Venske, prior to July, 1930, had been employed in factory work and had conducted a garage business on his own account. He and his wife had acquired several parcels of real estate of substantial value. Venske had previously bought some lots of Smith in one of the subdivisions which the latter was then promoting. In this way Venske became somewhat interested in Smith’s operations and appears to have been attracted by what seemed to be an easy way of making money in real estate transactions. In 1930' Smith was contemplating the purchase and development of a 40-acre tract known as the Southland farm which was a short distance outside of the city limits of Muskegon. Negotiations were entered into between Venske and Smith which resulted in the plaintiffs conveying to Smith a residential piece of property described as lot 5 and part of lot 6 of Pomona Grove. In the transaction this property was taken by Smith at an agreed valuation of $5,500 for which the plaintiffs were to have substantially a half interest in the Southland Farm Development enterprise. This activity was to be carried on by a corporation to be thereafter formed and in which the plaintiffs were to have such a proportion of the stock as would represent their interest. While the testimony is not as full and convincing as might be desired, it fairly appears that this transaction was entered into by plaintiffs with the understanding that Smith would finance the undertaking to a like extent. Later there was disagreement because it was ascertained that of the capital stock of the proposed corporation in the amount of $50,000 Smith was willing to turn over to plaintiffs only $11,000; and this $11,000 of the capital stock was not only in satisfaction of the Pomona Grove property which Smith had received but also in satisfaction of other pieces of property which in the meantime plaintiffs had conveyed to Smith for which they understood they were to receive $5,500 of the capital stock of the proposed corporation. On August 5, 1930, plaintiffs filed their bill of complaint, and an amended bill of complaint was filed August 25th. Without going into detail, plaintiffs charge that the whole transaction was planned by Smith to defraud plaintiffs; in fact, that defendant Robert D. Smith neither had the ability nor intention of carrying out his part of financing the development of the Southland farm; and that he did not use the proceeds of the property conveyed to him by plaintiffs for the purposes of this development; further, that he paid only $200 on the purchase price and small amounts incident to the expenses of platting the subdivision and improving the same and that: “The said Robert D. Smith, instead of using the moneys derived from the sale of the premises described * * * for the purposes for which these plaintiffs deeded the same to him, and instead of taking steps to form said corporation or partnership (at least prior to the filing of the original bill of complaint herein), has devoted the moneys derived from the sale to purposes of his own, and has utterly failed, neglected and refused to use such moneys- for the purposes intended by the parties hereto, and has embezzled and fraudulently disposed of said moneys, and wrongfully converted the same to his own use. ’ ’ A subsequent bill and an amended bill were also filed by plaintiffs. In this latter litigation plaintiffs seek on the ground of alleged fraud to have set aside and to be relieved from a settlement of the previous litigation entered into between them and defendant Robert D. Smith. Subsequently there was consolidation of the suits. They were heard in the circuit as one and have been so brought to this court on appeal. Appellants stress the claim that the settlement above referred to forecloses inquiry as to the merits of plaintiffs ’ claims made in the original suit. Obviously this contention is not tenable if the settlement was procured by fraud as alleged by plaintiffs. This presents the first question for determination. We think the record conclusively shows that the settlement was procured by fraud in the manner hereinafter briefly indicated. Smith approached plaintiffs relative to an adjustment of their differences. He made very material concessions to them and incident to the settlement agreed to deed to plaintiffs and they agreed to accept conveyances of eight lots in one of Smith’s subdivisions. In the meantime Smith had succeeded in bringing- to the-attention of plaintiffs that one O’Leary was very desirous of purchasing these eight lots for an industrial site, the property being adjacent to a railroad siding. In this record Smith discloses that O’Leary’s real name was Heffron. The man called O’Leary saw plaintiffs and assured them of his desire and ability to purchase the lots for $2,000. With this inducement plaintiffs agreed to accept from Smith a conveyance of the eight lots as a part of the agreed settlement. As soon as the settlement was consummated O’Leary vanished and nothing further has been heard from him regarding his desire to purchase the eight lots. Plaintiffs’ contention is fully justified by the record that the incident just above recited was fraudulently framed by Smith to induce the settlement. Under the circumstances it is without binding force or effect. As compared with Smith’s education along legal lines and his broad experience in business transactions, plaintiffs were decidedly inexperienced and apparently gullible people. We think it unnecessary to detail each step in the development of the transactions of which plaintiffs complain as disclosed by the testimony in this case. Prom a careful consideration of the record we are convinced that defendant Smith preconceived a plan to secure plaintiffs’ Pomona G-rove property under a false representation that it would give them ultimately a half interest in the Southland farm development, and that Smith would carry the other half of the financial obligation, that at the time Smith had no intention of so doing. On the contrary he was then planning deliberately to secure as much property as possible from plaintiffs; and by means of the corporation to be later formed and in which he would give plaintiffs as little interest as they could be induced to take for their property, also by the further means of making false and excessive charges against this development enterprise, Smith would fraudulently possess himself of practically all of plaintiffs’ property. The accomplishment of this fraudulent purpose was well under way at the time the first suit was started. Subsequent to the Pomona Grove transaction Smith secured from plaintiffs other par cels of property. His method of immediately dispossessing himself of title to snch properties as he received from plaintiffs is, to say the least, suspicious. We think it also appears from this record that instead of using the proceeds of such properties for the purposes for which he had said they were to .be used and which representations were made to induce plaintiffs to part with their property, Smith, carried out his previously conceived fraud by appropriating such moneys to his own use. In his attempt to account for the use of such moneys at the hearing Smith made a showing in which he finally admitted there were included various charges which should not have been so included, and there were also substantial items of money paid by Smith to his mother-in-law, to his wife, in satisfaction of his own personal accounts, and in various other ways which do not appeal to us as being worthy of credence, notwithstanding Smith’s claim that many of these items were charged back against him incident to his salary account. This subsequent conduct on the part of defendant Smith tends strongly to sustain plaintiffs’ claim that from the outset he had a preconceived plan of defrauding them of their property. Because Smith had disposed of the Pomona Grove property the trial court was unable to grant full relief by way of cancellation and restoration. To the extent possible under the record the decree in the circuit court provides for reconveyance of plaintiffs’ property. The decree also provides for damages sustained by plaintiffs in consequence of Smith’s fraud in the sum.of $6,890. Por this amount plaintiffs are given a lien upon the Southland farm property, subject, however, to a prior mortgage of Mr. Southland. Granting of this relief to plaintiffs is justified by the record. There is no merit to the claim of appellants Cohan and Rogoski that the circuit court disregarded their alleged rights in an escrow agreement entered into incident to reconveyances of a portion of plaintiffs’ property in that it deprived such appellants of security for payment to them of certain indebtedness by defendant Smith. This security, if it was such, was incident to the payment of past indebtedness, and it was obviously accepted with full knowledge on the part of the parties concerned of plaintiffs’ alleged rights in such property. Appellants Cohan and Rogoski were not innocent holders of rights without notice of plaintiffs’ claims in the litigation pending relative to the property in which these particular appellants assert a right. The decree entered in the circuit court is affirmed, with costs to appellees. McDonald, C. J., and Wbadock, Potter, Sharpe, Pead, Wiest, and Butzel, JJ., concurred.
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Sharpe, J. A land contract for the sale of certain premises in the city of Grand Eapids in which the plaintiff was vendor and the defendants Philip Allen and Anna Allen, his wife, were vendees was assigned by the vendees to George King. While the assignment was not signed by him, it was annexed to the vendees’ copy of the contract and delivered to him. In it he agreed “to fulfill all the conditions set forth in the annexed instrument.” It was prepared by C. DeBoer, an employee of the Old Kent Bank, where the plaintiff had left her contract for collection, and a copy of it was annexed by him thereto. After receiving the assignment, King notified the tenants of the premises of his purchase, made certain improvements thereon, and received the monthly rental therefor. He made 23 payments on the contract, one to the plaintiff and the others to the bank, all of which were applied thereon. He then became deceased. His widow, the defendant Josephine King, was appointed special administratrix of his estate and as such made one payment on the contract and paid certain taxes on the lands de scribed therein. She was later appointed executrix under his will. Later, there was default in the payments and of taxes, which were paid by plaintiff, and she filed a claim in the probate court against the estate for the balance due on the contract, which was disallowed by the probate judge. She then filed the bill of complaint herein for the foreclosure of the contract, and prayed for a deficiency decree against the defendants Philip Allen and Anna Allen, his wife, and the estate of King. Prom a decree disallowing her claim ag’ainst the estate, the plaintiff has taken this appeal. The question here presented is whether the undertaking of King ‘ ‘ to fulfill all the conditions set forth in the annexed instrument” was an assumption on his part of the contract debt and an agreement to pay the same. In our opinion, no other construction can fairly be placed upon the language used. It is, in effect, an assumption of the undertaking of the vendees to make the payments provided for in the contract when they became due. By acceptance of the assignment he became bound thereby in equity without his signature thereto. This question has been so recently considered and passed upon by this court that further discussion seems unnecessary. See, Barnard v. Huff, 252 Mich. 258 (77 A. L. R. 259); Hamburger v. Russell, 255 Mich. 696; Zeidler v. Burlingame, 260 Mich. 596; Krueger v. Campbell, 264 Mich. 449. It is insisted that the filing of the claim in the probate court, and its disallowance by the judge thereof, was such an election of remedies on the part of the plaintiff as precludes her from now claiming liability on the part of the estate. A probate court has jurisdiction only of legal claims against an estate. There was no privity of contract between the plaintiff and King and no right of recovery against him or his estate in an action at law. The claim was properly disallowed for want of jurisdiction to consider it. But such action on the part of the plaintiff is not a bar to the relief here sought against the estate. James S. Holden Co. v. Applebaum, 263 Mich. 507. A decree may be here entered modifying that appealed from by inserting therein a provision holding the estate of George King liable for any deficiency arising on snch sale and directing that it be so certified by the trial court to the probate court. The plaintiff will have costs against the estate. McDonald, C. J., and Weadock, Potter, North, Fead, Wiest, and Butzel, JJ., concurred.
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Clark, J. Plaintiff, administratrix of the estate of her deceased husband, Richard Burns, filed this bill against William Burns, survivor of the partnership of the two brothers, for accounting and other relief. From the decree entered both parties have appealed. The principal business of the partners was operating boats on the Great Lakes.. They also owned several pieces of real estate. After Bichard’s death William continued the business, and accounting therefor is one of the features of the case. At least two boats were registered in Bichard’s name. Becord title of some of the real estate was also in his name. Concededly this was partnership property. One parcel of the real estate subject to two mortgages of $5,000 and $3,500 and known as St. Clair property was in William’s name, and his contention that this parcel was his own is the only question, in our view of the case, requiring discussion. The trial judge held that the parcel was not partnership property. Our study of the case leads to different conclusion. The widow of the owner from whom the parcel was purchased testified in effect that it was purchased by the partners. This, in effect, is also the testimony of the real estate agent who had the listing at the time. Another real estate ageilt testified, substantially, that William was the purchaser, and this finds support in the testimony of two witnesses of statements against interest claimed to have been made by Bichard. Both William and the plaintiff testified pro and con on this question, and whether their testimony violates the opposite party rule, as contended, we think it not necessary to determine. Decision of the flat contradiction in direct testimony is aided by circumstances. William, surviving partner, conducting the business, was a trustee, and it was his duty to keep faith and to account fully and fairly. Granting that the partners kept practically no books of account, and that William as survivor continued the practice, still his accounting as such survivor shows diligence respecting disburse ments and reluctance if not concealment as to receipts. In the deed of the parcel Richard’s name was first written as grantee, afterward “Richard” was erased and “William” substituted. Richard and his wife and child lived in a part of the St. Clair property for a time before his death. About a week after the death William gave the widow notice to quit and later had her evicted. The history of the partnership and the conduct of its business are also significant. On the whole record we conclude the St. Clair parcel was partnership property of which William had title as trustee. It seems to be conceded that no better account by William of his conduct of the business after Richard’s death can be had, in view of the facts, than that adopted by the trial court. Counsel for defendant contend that both the mortgages on the St. Clair property were given for the benefit of the partnership and should be so considered in accounting. Counsel for plaintiff concedes this, provided the St. Clair property be held to have belonged to the partnership. As we have so held, it follows that the mortgages will be so considered. Decree so modified is affirmed, without costs, and cause remanded that accounting may be completed in respect of St. Clair property and mortgage debt thereon in accordance herewith, and final decree made. North, C. J., and Fead, Wiest, McDonald, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision.
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Butzel, J. William B. Hatch and Eunice M. L. Hatch filed their bill in the circuit court for Washtenaw county in chancery on August 28, 1926, against the present plaintiffs to foreclose a land contract. February 1, 1928, a decree of foreclosure was entered by consent. The amount agreed to be due was $22,288.63. Present plaintiffs were given four months in which to make payment, and upon failure so to do the premises were ordered sold by a circuit court commissioner. There was no direction to sell in separate parcels, and while there are four descriptions in the decree, the testimony in this record shows that there was but one set of farm buildings, that the land was in fact one farm and one parcel of land and was so operated. The record shows also that present plaintiffs had not for three years paid anything on the contract, or for rent, or taxes, or otherwise. On November 22, 1928, the circuit court commissioner filed his report of sale, and six days later exceptions to the report were filed by these plaintiffs because the premises were sold as one parcel. The exceptions were noticed for hearing December 8th, .following. On the day noticed for hearing, neither the present plaintiffs nor their attorney appeared, and the return shows that the circuit judge was informed that the exceptions filed would not be urged, and that thereupon he ordered the exceptions stricken from the record. His re turn would indicate that he then signed an order to this effect. On December 15th, by new counsel, plaintiffs moved to set aside the order of December 8th. This was heard, and on December 27th an order was entered denying the motion. While the claim of appeal does not appear in the record, it is alleged in the petition to be “from the final orders made and entered in said cause on the 27th day of December, A. D. 1928,” and to have been filed January 16, 1929, from which it is to be inferred that the appeal was from the order last named. There is nothing in the record showing the rental value of the premises. The circuit judge declined to approve a $600 appeal bond to stay further proceedings, and the petition here was filed to compel such approval by mandamus. The record before us is in an indefinite and unsatisfactory state. Counsel for both parties seem to understand this and both seek to supplement it by ex parte statements in their respective briefs. These, of course, we may not consider. It does appear, however, that plaintiffs (herein) consented to the decree entered; that a sale in one parcel was made and properly made; that plaintiffs filed exceptions to the report of sale, which they abandoned and which were by order stricken from the files; and that later they sought to have such order set aside, but made no showing that they were in any way misled as to the date of hearing, nor did they in any way excuse their default in not prosecuting their exceptions; that they have paid nothing for the use of the premises for three years, and the return of defendant quite clearly discloses that he had grown impatient with the protracted delays in the suit and declined to countenance further ones. While there are doubtless several good reasons for denying the writ, we rest decision on these grounds: (1) Plaintiffs, having abandoned in the court below their exceptions to the report, cannot complain because defendant dismissed them; (2) having made no showing in excuse of their default at the hearing of the exceptions, the discretion of the circuit judge was not moved to hear them on a subject already disposed of; and (3) not being in position to appeal from the order of December 8th, they can not appeal from an order properly denying a rehearing on that order. Unless plaintiffs possessed a right to appeal they could not, of course, ask a stay of proceedings, or the approval of á stay bond. The writ will be denied, with costs. North, C. J., and Fead, Wiest, Clark, McDonald, Potter, and Sharpe, JJ., concurred.
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Clark, J. In May, 1922, plaintiff filed a bill of complaint in the Wayne circuit against defendant Charles A. Labadie alleging that he owned, which was the fact, a part of private plaim 179, lying between Monroe road and Detroit river, sufficiently described, and that defendant, owner of a parcel adjoining on the north, had entered upon the land and was erecting a fence’ four-feet south of plaintiff’s north line on the assertion and claim that the proposed fence marked the true line. The bill prayed injunction, and decree that plaintiff was the owner of the disputed strip. Plaintiff’s claim was set forth on two grounds, adverse possession and fixing a boundary line by consent. After hearing decree was entered, Judge Sample sitting, in July, 1924, dismissing plaintiff’s bill. No appeal was taken. Plaintiff engaged his present counsel and in January, 1925, filed petition for rehearing, alleging that the decree was erroneous in that it denied plaintiff’s claim of adverse possession and in that “it appeared from the testimony that it was a case where there was an excess of land over the survey, which excess should have been apportioned between the parties, if plaintiff’s claim of adverse possession was not sustained by him. ’ ’ The petition was denied and no appeal taken. Subsequently plaintiff filed another bill against defendant, again asserting title to the disputed strip and again raising the same questions as before, and, Judge Black sitting, plaintiff had decree which purported to divide the disputed strip between the parties. On motion of plaintiff this decree was vacated. Plaintiff filed another bill against defendant for the same cause. The later bills were consolidated and heard by Judge Black. Plaintiff had decree, from which defendant has appealed. No matter what may be claimed for it, the contention here is that the court ought equitably to reach a different conclusion on the evidence here presented, chiefly testimony of surveyors, from that reached hy Judge Sample on the evidence before him, including the testimony of a surveyor. No matter what may be claimed for it, the cause here for review is an attempt to litigate again between the same parties the matter presented and necessarily involved in the cause before Judge Sample. The decree and order of Judge Sample are conclusive, a bar to these later suits. 15 E. C. L. p. 962; Tessler v. Rothman, 232 Mich. 62; Palmer v. Pokorny, 217 Mich. 284; Hogan v. Whitcomb, 233 Mich. 403; Knoth v. A. Harvey’s Sons Manfg. Co., 212 Mich. 415. In the hearing of this cause defendant’s counsel offered to consent to re-entry of vacated decree of Judge Black purporting to divide between the parties the disputéd strip, and the offer is again made in this court. Decree is reversed. Within 30 days plaintiff may accept consent decree in effect restoring the vacated decree of Judge Black. If plaintiff shall not so accept decree will follow dismissing the bills of complaint. In either event defendant will have costs of both courts. North, C. J., and Fead, Butzel, Wiest, McDonald, Potter, and Sharpe, JJ., concurred.
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North, C. J. The plaintiff owns the east one-half of the northeast quarter of section 22, Greenwood township, Oceana county. He seeks by injunction to prevent the defendants from traveling across this parcel of land by way of an old winding logging-road constructed over 50 years ago by the then owners of the land. The defendants are engaged in trucking gravel to be used in road construction in Muskegon county, and this old road is a convenient way for them to reach the pits from which they are hauling gravel. The defendants contend that this road is a public thoroughfare established and used as such by the public for at least half a century. On the other hand, the plaintiff asserts this road was never anything more than a private way, and that neither the defendants nor other members of the public have any rights therein. The injunctive relief sought by the plaintiff was granted, and the defendants have appealed. A full reading of this record convinces us that the decree entered in the lower court should be affirmed. The road in question was one of many roads orig inally constructed as private enterprises in this locality to facilitate lumbering operations. Practically all of these roads were used more or less by the general public, and this use by the public continued for years after lumbering operations had ceased. Because this particular road was a better way then some of the others, it was more extensively used, and such use has continued for years after some of the other logging roads have fallen into disuse and become overgrown with brush and trees. This road was evidently the most convenient way to travel in a southerly direction from a settlement on the south side of White river to the nearest market and railroad; but no claim is made of a dedication and acceptance of this road or that it is a highway regularly laid out by the township. In appellants’ brief the sole issue is thus stated: “Is the road in question a public highway by user?” They seek to sustain their contention on the theory of an implied dedication and acceptance. We do not find in the record testimony which would justify us in so'holding. The public has used this road for a longer time than would be required to establish a way by user; but use alone is not sufficient. There must be an acceptance by the public at least by taking over the control and maintenance of some portion of the alleged highway. The exercise of such public control is not shown in this record. The fact that the township had taken control of other roads between which this was a means of passage will not suffice to establish acceptance of this irregular way across plaintiff’s land and thus make of it a highway. The following is from the syllabus in Stickley v. Township of Sodus, 131 Mich. 510 (59 L. R. A. 287): “A mere permissive use of a private road by the general public, however long continued, will not make it a public highway. To constitute a highway by user under the statute such use must have been accompanied by some act on the part of the township authorities so open, notorious, and hostile as to be notice to the landowner that his title was denied.” Citing 2 Comp. Laws 1897, § 4061 (1 Comp. Laws 1915, § 4307). The following charge to the jury was approved in Chapman v. City of Sault Ste. Marie, 146 Mich. 23: “Not only the general public must use it (the road) and travel upon it as a thoroughfare, but the implied dedication must be accepted by the public authorities and the way taken in charge- and maintained as other highways.” Citing Alton v. Meeuwenberg, 108 Mich. 629; Irving v. Ford, 65 Mich. 241; Harriman v. Howe, 78 Hun (N. Y.), 280 (28 N. Y. Supp. 858), affirmed in 155 N. Y. 683 (50 N. E. 1117). See, also, Hinckley v. Dennison, 169 Mich. 361; Wegner v. Tower, 235 Mich. 610, and Murphey v. Township of Lee, 239 Mich. 551. The evidence does not establish a highway by user. The decree of the lower court is affirmed, with costs to 'the appellee. Fead, Butzel, Wiest, Clark, McDonald, Potter, and Sharpe, JJ., concurred.
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Fead, J. This is an action in tort to recover damages for malicious destruction of a will. Plaintiff had verdict and judgment. The will, in which defendant was named executrix, admittedly was destroyed by her after the death of her husband, the testator, because of dissatisfaction with its terms. Some four years later she filed a petition in probate court to have the destroyed will allowed. In that proceeding the attorney who drafted the will testified that it contained a bequest of $2,000 to plaintiff. Plaintiff, upon learning of the bequest to her, became a party to the proceeding and was represented by counsel. Another witness, who had read the will, denied that it contained a legacy to plaintiff. A third witness was uncertain. The will was admitted to probate but without a legacy to plaintiff. In the order admitting the will, the court recited the substance of the testimony upon the claimed bequest to plaintiff and determined it could not be established as part of the will because there was only one witness in support of the gift; the law requiring two witnesses. 3 Comp. Laws 1915, § 13788; Dingman v. Dingman, 199 Mich. 384. Thereupon plaintiff began this action in trespass on the case to recover the amount of the claimed legacy on account of malicious and fraudulent destruction of the will, which prevented her proving the gift to her and defeated her legacy. Argument and citation of authority can add nothing to the obvious proposition that the unlawful and unjustifiable, and, therefore, malicious, destruction of a will, resulting in direct loss to a legatee, is a wrong for which there must be a remedy. The authorities in direct point are few, but they support the right to action, although the remedies approved are diverse. In 1746, in Tucker v. Phipps, 3 Atk. 359 (26 Eng. Rep. Reprint, 1008), the high court of chancery of England, on the ground of malicious and fraudulent spoliation, sustained a bill to recover a legacy from a person who had destroyed a will, without requiring plaintiff first to prove the will before the ecclesiastical court, which had exclusive jurisdiction over wills of personal property. In Mead v. Heirs of Langdon, unreported, referred to in Heirs of Adams v. Adams, 22 Vt. 50, a court of equity decreed the payment of legacies in a will suppressed by those interested in the estate, although the will had never been proved in probate. In Dulin v. Bailey, 172 N. C. 608 (90 S. E. 689, L. R. A. 1917 B, 556), and Taylor v. Bennett, 1 Ohio Cir. Ct. Rep. 95, it was held that an action in tort would lie for malicious destruction of a will. The only other case in point cited or found is Thayer v. Kitchen, 200 Mass. 382 (86 N. E. 952, 43 L. R. A. 746), which defendant urges as controlling. The court held that an action in tort would not lie because the probate court had exclusive jurisdiction over wills, because a statute substantially identical with our 3 Comp. Laws 1915, §§ 13777, 13778, provided a clear, ample, and expeditious remedy, and, as the question of relief through an action at law had not been settled in that State and was of difficulty, the statutory remedy was exclusive. These statutes require a person named as executor in a will to present it to the probate court within 30 days after death of the testator or after the executor learns that he has been named, and, on failure without reasonable cause, provide liability to each person interested in the will in the sum of $10 per month for the period of default, to be recovered in an action on the case. Thayer v. Kitchen could be distinguished on the ground that, as pointed out in the opinion, the will there could have been proved in probate court by any competent evidence, so the same testimony which would have sustained an action at law presumably would have been sufficient to prove the will. More of the wrong done by spoliation could be remedied in probate court there than in the instant case, where the gravamen of defendant's offense was that, through destruction of the best evidence,, and because of the statutory requirement of two witnesses, she had deprived plaintiff of all remedy in probate court. In this State the probate court is given no authority to invade the province of common-law courts to award damages for torts, whether in connection with wills or otherwise. Even' the damages permitted under the statute relied on by defendant must be recovered in an action on the case. Defendant’s contention would enable an executor to destroy a will, then petition for its probate as a lost will within the 30-day period, escape all penalties, and leave the wronged legatees remediless. Definite language evidencing clear intent would be necessary to work so intolerable a result. The stat ute seems too plain to require construction. It created the duty of celerity in presenting a will and provides a stated penalty for delay. It does not cover the distinct wrong of spoliation or provide a remedy for the varied damages which may result, therefrom. Action on the case —“is an outgrowth of the principle that, whenever the law gives a .right or prohibits an injury, it will also afford a remedy. Hence, where there has been an injury for which none of the established forms of action will lie, an action on the case may be maintained, it being no objection that there is no precedent for the particular action, since the action is suited to every wrong and grievance that a person may suffer, and varies according to the circumstances of the case.” 11 C. J. p. 4. The suit was properly laid. Defendant further contends that the decision of the probate court was res adjudicata of the claim of plaintiff to a legacy. A judgment is not res adjudicata unless the identical matter in issue in the subsequent proceeding was determined by the former adjudication. Murphy Chair Co. v. American Radiator Co., 172 Mich. 14. The whole order of the probate court may be consulted to determine what was actually passed upon. Black v. Miller, 75 Mich. 323; Bond v. Markstrum, 102 Mich. 11. A lost will may be allowed in part if the parts are separable, as was plaintiff’s legacy. In re Estate of Patterson, 155 Cal. 626 (102 Pac. 941, 26 L. R. A. [N. S.] 654, 18 Ann. Cas. 625, 132 Am. St. Rep. 116); Heath v. Withington, 60 Mass. 497; Thornton on Lost Wills, p. 153; 40 Cyc. p. 1237. The probate court did not determine that the will allowed was the whole will nor that the true will did not contain a legacy to plaintiff. It merely decided that the preliminary proof required by statute, in order to enable the court to pass upon the legacy, had not been furnished. The issue here, whether as a matter of fact the will contained a legacy to plaintiff, never reached the stage of decision in probate court, nor was its determination necessarily included in the judgment. It is also the rule that —“the same transaction or state of facts may give rise to distinct or successive causes of action, and a judgment upon one will not bar a suit upon another. Therefore a judgment in a former suit, although between the same parties and relating to the same subject-matter, is not a bar to a subsequent action, when the cause of action is not the same. ” 34 C. J. p. 813. See, also, Aldine Manfg. Co. v. Barnard, 84 Mich. 632. As illustrating this rule, it has been held that judgment for defendant in a suit on a promissory note is not a bar to an action for fraud and deceit practiced on plaintiff by defendant to induce the purchase of the note. Black v. Miller, supra. A judgment at law on a note is not a bar to a suit to set aside a mortgage, given as security for the note, on the ground that the note had in fact been paid. Rickle v. Dow, 39 Mich. 91. The probate proceedings did not involve defendant’s personal liability for tort. The tort action did not set up the will as against the probate judgment, alter its operation as a conveyance, or affect the distribution of the estate or defendant’s rights as heir or legatee. They are separate causes of action. It should be kept in mind that the damage to plaintiff from defendant’s tort arose out of her being deprived of the legacy because the destruction of the will rendered proof of the legacy impossible. If she still could have proved it in probate court, she would have received no injury from the tort in respect of the amount of the legacy. The best evidence of her inability to prove the legacy would come from bona fide but unsuccessful attempt to establish it in probate court. The attempt would also be a fulfilment of her duty to minimize damages from the tort. It was for defendant’s benefit. Plaintiff should not be penalized for performing her duty and seeking the best evidence of her .damage. There is neither legal nor equitable reason for transforming the judgment ■that plaintiff did not make the statutory proof into a judgment that the will did not contain a legacy to her. Without such transformation it cannot be held that the former judgment is a bar to the present case- under any theory of res adjudicata. We have discovered only one case which is somewhat similar, although Willard v. Shekell, 236 Mich. 197, is of interest. In Harris v. Harris, 26 N. Y. 433, plaintiffs and defendants were heirs at law of John Harris. Plaintiffs brought partition proceedings for the division of the real estate. Defendants, claimed the entire ownership of the land under a lost will of their father. Plaintiffs replied that defendants had brought an action in the supreme court to have the lost will proved, had been defeated after trial, and the judgment was conclusive on them. The ground of their defeat was that they could not produce two witnesses who could testify to the provisions of the will as required by statute. The court held with defendants, both because the probate of a will of real estate establishes ownership only prima facie and failure to probate is, therefore, not conclusive, and also because the first judgment was not res adjudicata, of the will as probate had failed on account of statutory proof. The probate judgment did not bar this suit. Defendant further urges .that plaintiff must prove the legacy in this suit by two witnesses, and, having failed to do so, cannot recover. The statute,-3 Comp. Laws 1915, § 13788, reads: “No such alleged will shall be admitted to probate unless and until its due execution and the contents thereof shall be established by at least two reputable witnesses.” By its context, terms, and purpose, the statute is confined to proceedings to probate a will, and does not affect the rules of evidence in other courts or actions. Harris v. Harris, supra. Defendant’s contention that plaintiff cannot recover because the legacy could not become a vested right until after the will including such legacy was probated is fully answered in Mitchell v. Langley, 143 Ga. 827 (85 S. E. 1050, Ann. Cas. 1917 A, 469), if, indeed, answer is necessary. We have examined the other assignments and find no error therein. Judgment is affirmed, with costs. North, C. J., and Clark and Sharpe, JJ., 'concurred with Feád, J.
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McDonald, J. On petition of Charles Martin, a writ of habeas corpus was issued by this court directed to Dr. Edmund A. Christian, superintendent of the Michigan hospital for the insane at Pontiac, and commanding him to show cause for the detention of the petitioner in that institution. Dr. Christian returned that Mr. Martin was insane and that he was being detained by virtue of an order and commitment of Dan A. McG-affey, judge of probate, of Oakland county, Michigan. Ancillary to the writ of habeas corpus, a writ of certiorari was issued to the probate judge to bring up the records and files of the proceedings on which the order of commitment was based. His return is before us. It has not been traversed, and therefore its material facts will be taken as true. The order of commitment is fair and valid on its face. The single question for our determination is whether the probate court had jurisdiction to make it. A brief reference to the facts is necessary. They are as follows: A petition was filed in the probate court for Oakland county, Michigan, representing that Charles Martin was insane and asking for a hearing on the matters alleged in the petition. The hearing was set for July 1, 1929. Mr. Martin appeared by his counsel, John R. Rood, and filed a petition asking for a change of venue and that in the meantime he be temporarily committed to the psychopathic ward’ of the Michigan State university hospital at Ann Arbor for observation in order that he might have disinterested medical opinions for use in his defense on the hearing. Over Mr. Rood’s protest, the court confined the hearing on July 1 to the question of Mr. Martin’s temporary commitment. Mr. Rood then asked permission to withdraw his petition. The request was refused and the hearing was had, with the result that a temporary commitment for observation was ordered in accordance with the prayer of Mr. Martin’s petition. There is no question as to the authority of the court to make this order. The objections urged against its validity are as to .errors of irregularity with which we are not here concerned. However, it is only important as a part of the history of the proceedings and because of its connection with the subsequent commitment. This order, which is dated July 1, 1929, recites that further hearing will “be continued for a period not to exceed 35 days.” That time was the limit fixed for his temporary commitment. Whether the continuance be considered as for an indefinite time or for 35 days does not matter, for on July 23d, before the 35 days had elapsed, in the absence of the petitioner or his counsel, and without notice to either of them, the court conducted a hearing, adjudged Mr. Martin to be insane, and made the final order of commitment, the order relied on as cause for his detention. This order is void. It is based on proceedings which were not conducted in compliance with the statute. The legislature has provided a procedure for such cases, which must be strictly followed as a prerequisite to jurisdiction. The probate court has no power to act except as authorized by statute. In re Greenman, 212 Mich. 687. When the preliminary hearing was continued to a time “not to exceed 35 days,” the court had no authority to take it up before that time without notice to Mr. Martin or his counsel. In re Phillips, 158 Mich. 155. The statute makes adequate provision for notice and for the presence of the alleged insane person at the hearing unless his condition is such that his appearance there would be “improper and unsafe.” The only hearing that Mr.'Martin was allowed to attend was the preliminary investiga tion to determine if be should be temporarily committed for observation. He was not present at tbe subsequent be.aring, was not represented by bis counsel, and bad no notice of tbe proceedings. Because be was denied a bearing, tbe order of commitment is void. Tbe petitioner is discharged. No costs are allowed. Tbe writ of certiorari directed to circuit judge Sample brings up mandamus proceedings relative to tbe denial of tbe petition for a change of venue. This writ ought not to have issued. Tbe denial of tbe application for a change of venue does not affect tbe validity of tbe order for commitment, and will not be inquired into on habeas 'corpus. Tbe writ is dismissed. North, C. J., and Fead, Butzel, Wiest, Clark, Potter, and Sharpe, JJ., concurred.
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Sharpe, J. This is a judgment creditor bill filed to reach assets belonging to the judgment debtor Otto Herling and held by Frieda Herling his wife. Plaintiff had decree for part of the amount claimed. Both sides have appealed. At the time of incurring the obligation which was placed in judgment, the defendants owned a valuable piece of land as tenants by the entireties. Later in an effort t.o be more' secure against creditors of Mr. Herling the property was conveyed to the wife. Since then other lands have been acquired in the name of the wife, the accumulations from earnings or profits of the husband as well as those of the wife being used for the purpose. Plaintiff’s claim is nearly $3,000. The decree is for $1,320. The record does not show that many of the questions argued here by defendants were raised in the trial court, and therefore they ought not to be considered here. A motion to dismiss was made by defendants, but we do not find that it was called to the attention of the court. A large part of defendants’ unnecessarily large brief is devoted to a collateral attack on the judgment of the creditor. It is not here open to such attack. 34 C. J. p. 522. It is urged that the fraudulent conveyance act, Act No. 310, Pub. Acts 1919, invoked here, is not applicable for the reason, as counsel contends, that the act was not effective when the judgment was entered, on November 12, 1919, and there is much argument that the act is not retroactive. Counsel is mistaken in dates. The act took effect August 14, 1919. Counsel for plaintiff called Mr. Herling for cross-examination and questioned him at length. Mr. Shiek, counsel for both defendants, , then cross-examined. The witness was recalled for further and lengthy examination by counsel on both sides. The witness was interrogated also at some length by the court. Thereupon, plaintiff having rested, counsel for the defendants for the first time raised the question that the husband was not a competent witness, saying: “I move to strike out all the testimony of Otto Herling, the husband, who was called as a witness here against the wife without the wife’s consent. That consent was not asked; the statute is explicit on that; it cannot be waived. Not unless by the wife’s express consent. He is not a competent witness.” The motion was not granted. Counsel relies on Turner v. Davidson, 227 Mich. 459, and 3 Comp. Laws 1915, § 12555. If it be conceded that the husband could not testify here without consent of the wife, and that her presence in the court-room and the examination conducted to conclusion without, objection are not equivalent to consent, the question still remains. Early in the cross-examination the following: “The Court: Let me understand. Maybe I will understand it if I may examine the witness. I am not to examine him without your consent. “Mr. Shieh: Co ahead.” Thereafter the court questioned the witness, the husband, at length, covering the matter material to the issue. Mr. Shiek was counsel for the wife. He could waive expressly for his client the benefit of the statute, which he did, at least respecting the testimony brought out on questioning by the court. Fitzgerald v. Garson Productions, 221 Mich. 88. The competent evidence to show the amount of the accumulations of earnings or profits of the husband turned over to the wife is not very definite, but doubtless it is as definite as it could be made. It is certain that in all a considerable sum was turned over to her. In' the state of the record we are not moved to change the amount decreed by the trial court. No other question merits discussion. On the authority of Morse v. Roach, 229 Mich. 538, the decree is affirmed, without costs. North, O. J., and Fead, Wiest, and Potter, JJ., concurred. Clark and McDonald, JJ., did not sit. The late Justice Fellows took no part in this decision.
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Potter, J. Plaintiffs filed a bill of complaint in the circuit court for Berrien county to restrain prosecution by defendants of an action of ejectment, establish a boundary line, and remove a cloud from the title of land included within their alleged boundaries. Plaintiffs are owners of lots 25 and 26 in Jacob Beeson’s addition to the city of Niles. Defendants are owners of lot 24 in the same addition. Defendants, claiming plaintiffs were in possession of a part of their land, to wit, a strip 16% feet wide, instituted ejectment to recover the same August 25, 1927, whereupon September 2, 1927, plaintiffs filed the bill of complaint herein. Defendants answered, claiming there was no equity in the bill and the same should be dismissed. September 26, 1927, a motion was filed by defendants to dismiss the bill of complaint. This motion was argued November 30, 1927. In an opinion filed April 2,1928, it is said: “Prior to the commencement of this suit the defendants herein had commenced a suit in ejectment in this court to recover from the plaintiffs the possession of the disputed strip of land. The plaintiffs herein thereupon filed this suit to quiet the title, and to restrain the further prosecution of the ejectment suit. Upon the trial of this cause it was agreed by the counsel in open court that the matter in dispute might be fully determined in this action.” August 28, 1928, a final decree was entered herein and defendants appealed. The case was here submitted in the January, 1929, term. Subsequently this court, on its own motion, ordered additional briefs on the question of jurisdiction, and as bearing upon that question portions of the record below not settled by the court as part of the record on appeal have been certified here showing the basis of the motion to dismiss, the argument thereon, and the reasons for the court dismissing the ejectment suit after its prosecution was perpetually enjoined. No motion was made to remand the record for amendment. It was not remanded. I am satisfied the additional matter certified here after the case was heard, not settled by the court below as a part of the record on appeal, cannot be considered by this court. 4 C. J. pp. 493, 494. A similar question was before this court in Ballance v. Dunnington, 241 Mich. 383 (57 A. L. R. 262). We think the reasoning of that case decisive. Plaintiffs’ right to maintain this snit is governed by the conditions existing at the time the. suit was commenced. If plaintiffs had no right of action when they brought suit, they may not sustain their cause by something done afterwards. Blackwood v. Brown, 29 Mich. 483. A right of action not existing when suit is commenced cannot be created ex post facto so as to justify the suit. Moyer v. Scott, 30 Mich. 345. “The rule is well settled, at least with regard to actions at law, and where no supplemental pleadings are filed, that the rights of the parties to an action must be determined according to the facts existing at the time the action was commenced. Plaintiff must therefore recover, if at all, according to the status of his rights at the time of the commencement of the action, and ordinarily the same rule applies with regard to the^rights and defenses of defendant.” 1 C. J. p. 1149. A suit in ejectment between the same parties, involving the same subject-matter, was pending in the circuit court of the same county, at the time this suit was commenced. Plaintiffs assert their right to elect the forum for trial of the controversy between themselves and defendants, attempt to deprive defendants of their right of trial by jury, establish a new field of equitable jurisdiction, and overturn the long line of precedents established by this court for the trial of disputed boundary cases. I disagree with the contention that we must determine the question of jurisdiction as though ejectment had not been commenced, because the only grounds of equitable jurisdiction asserted by the bill are to remove cloud from plaintiffs’ title, restrain the action of ejectment, and incidentally determine the only controversy between the parties— the location of the true boundary line between their respective premises. Equity has no jurisdiction to quiet title against mere repeated, though unfounded, verbal assertions of adverse claims. “The general rule is that equity will not entertain jurisdiction in actions to quiet title where there is a complete and adequate remedy at law; and where there is no danger from delay, and no other ingredient that requires the effective powers of equity to prevent fraud or injustice. In a case, therefore, where the remedy at law is adequate and complete, the complainant is remitted to such remedy; whether it be ejectment, trespass, writ of entry, or other appropriate proceeding at law.” 5 R. C. L. p. 637. “A cloud upon the title of the true owner of land, such as may be removed in equitable proceedings, is some deed or other writing which by itself, or in connection with proof of possession by a former occupant, or other extrinsic facts, gives the claimant thereunder an apparent right in or to the property. Civil Code, Secs. 4892, 4893; Thompson v. Etowah Iron Co., 91 Ga. 538; 2 Am. & Eng. Enc. Law, 298; 3 Pom. Eq. Jur. Sec. 1398. A mere verbal claim to or oral assertion of ownership in property is not such a cloud upon the title of the owner. Parker v. Shannon, 121 Ill. 452.” Waters v. Lewis, 106 Ga. 758. “A bill will not lie to remove a mere verbal claim or oral assertion of ownership in property, as a cloud upon the title. Such clouds upon title, as may be removed by courts of equity, are instruments or other proceedings in writing, which appear upon the records and thereby cast doubt upon the validity of the record title.” Parker v. Shannon, 121 Ill. 452. “That which is alleged to constitute the cloud is the wife’s verbal' assertion that she owns the two tracts in her separate right. Where the bill discloses no more than an unquiet and unfounded apprehension as to the validity of his title, and a false, clamorous assertion of a,hostile title in defendant, a court of equity will not interfere to quiet the one or silence the other. 6 Ency. of Law, p. 153.” Newman v. Newman (Tex.), 86 S. W. 635. “We do not understand, however, that a bill will lie to dispel mere verbal assertions of ownership as clouds on title, or, invoking equity interposition on the ground of the removal of clouds, that decrees may be sought adjudging statutes unconstitutional and void. * * * The test as to when a cloud is or is not cast, as stated by Mr. Justice Field, then Chief Justice of California, in Pixley v. Huggins, 15 Cal. 127, and reasserted in Hannewinkle v. Georgetown, 15 Wall. 547, is undoubtedly applicable.” Devine v. Los Angeles, 202 U. S. 313. “Unless otherwise provided by statute * * * a mere verbal claim to, or assertion of ownership in, realty does not constitute a cloud on title.” 32 Cyc. p. 1314, note. If defendants were verbally making false and malicious claims of title against the lands and premises of plaintiffs, plaintiffs had a complete and adequate remedy at law by the institution of suit for slander of title. Walkley v. Bostwick, 49 Mich. 374; Harrison v. Howe, 109 Mich. 476; Haney Manfg. Co. v. Perkins, 78 Mich. 1; and having a complete and adequate remedy at law, plaintiff cannot maintain a suit in equity. Mr. Justice Sharpe relies herein upon Stockton v. Williams, Walker’s Chan. 120; Moran v. Palmer, 13 Mich. 367; King v. Carpenter, 37 Mich. 363; Methodist Church of Newark v. Clark, 41 Mich. 730; F. H. Wolf Brick Co. v. Lonyo, 132 Mich. 162 (102 Am. St. Rep. 412); Carpenter v. Dennison, 208 Mich. 442; Sterling Bank of Sleeper & Chamberlain v. Scott, 231 Mich. 362; Cummings v. Schreur, 236 Mich. 628; and Maes v. Olmsted, 247 Mich. 180. Stockton v. Williams, Walker’s Chan. 120, did not involve a disputed boundary. It points out that the statute giving equity jurisdiction to quiet title to real estate was passed to enable persons in possession of real estate, having title thereto, to remove all doubt in regard to their title arising from the claims of persons who are taking no steps to test the validity of their claims, and who, by their inaction, keep the party in possession in suspense. In this case the question of title is the only thing in dispute, defendants had begun an action in ejectment prior to the filing of the bill, such ejectment suit was pending when the bill was filed, the suit was commenced, not because defendants were inactive, but to restrain their activity, and plaintiffs here, as defendants in the ejectment suit, w;ere not being kept in suspense but placed on defense. The language of the court demonstrates its inapplicability to this case. Moran v. Palmer, supra, was not a boundary case but one where defendants claimed to be part owners of the premises by an unrecorded deed,to their ancestors and by prior legal proceedings between them and parties other than complainant, through or under whom he derived title. The court said: “We. have thus presented to us the anomaly of a party who asserts that he is possessed of a complete legal title to lands which are occupied by him, and who points out no difficulty in the way of his exhibiting and establishing such title, appealing to a court of equity for relief against the claims of other parties who are pressing their claims against him at law, and have already obtained an adjudication in their favor. Argument to show that this bill cannot be sustained, is entirely unnecessary. If the facts, as.above stated, were fully set forth in the bill, it would be demurrable, and being presented by way of defense, they are a complete answer to complainant’s case. A court of law is the appropriate tribunal for the trial of titles to land: Abbott v. Allen, 2 Johns. Ch. 520; Devaux v. City of Detroit, Harr. Ch. 98. The claimant of a legal title has a right to have the facts upon which his claim is based submitted to a jury, and it is only when the remedy at law is inadequate that resort can be had to equity. Nothing is better settled than that equity will not aid in clearing a title to land when complainant’s remedy at law is complete: Alton Marine and Fire Ins. Co. v. Buckmaster et al., 13 Ill. 201; Smith v. McConnell, 17 Ill. 135; Ritchie v. Dorland, 6 Cal. 33; Wolcott v. Robbins, 26 Conn. 236; Munson v. Munson, 28 Conn. 582; Shotwell v. Lawson, 30 Miss. 27; Murphy v. Blair, 12 Ind. 184. And when the party comes into equity for relief, he must set forth-in his bill the circumstances which deprive him of a legal remedy: Williams v. Ayrault, 31 Barb. 364.” Defendants as plaintiffs in ejectment had sued plaintiffs herein when the plaintiffs herein, to deprive defendants of their right of trial by jury, invoked the aid of equity. Plaintiffs were not deprived of a legal remedy. They are here seeking to evade trial at law. King v. Carpenter, supra, did not involve a disputed boundary. Complainant alleged title and possession and that a claim was being asserted by defendants by reason of failure to record a deed in the chain of title of complainant. A preliminary question was raised that the bill would not lie because it was a bill of peace; that it could only be maintained by one in possession, and, complainant being out of possession, ejectment was the only proper remedy. The court said: “Undoubtedly where a party holding a legal title seeks to enforce it as against a person in possession claiming under an invalid title, or one which the party complaining claims to be such, the only proper remedy is ejectment, and that remedy is perfect.” In this case defendants brought themselves within the rule that, “the only proper remedy is ejectment, and that remedy is perfect.” No proper subject of equitable relief gives the court, in this case, jurisdiction. This case is not like King v. Carpenter, supra, where the bill was filed to restore an unrecorded lost deed and remove from record evidence of title fraudulently obtained and recorded. As there said: “No statute was needed to enable any one to sue in equity upon an equitable cause of action, and in such case possession is not important and has never been required.” This case was maintained under the well-settled rule that a court of equity, having jurisdiction, should retain it to grant complete relief. Methodist Church of Newark v. Clark, 41 Mich. 730, was not a boundary case but a bill brought by the church to quiet title to a lot on which stood a house of worship. Certain church trustees were regularly appointed and held title to the real estate in question as such. The real estate had been deeded ■by John Clark and Elizabeth Clark his wife to the trustees of the church in trust for church purposes. A building was erected thereon. Subsequently three of the trustees got together, audited bills claimed to have been contracted for the erection of the building, and executed a real estate mortgage on the property for the money with which to pay the construction bills so audited. Two of the trustees so acting were tried and expelled from the church. The grantors of the real estate, claiming title to the property, took possession thereof and closed the house of worship against complainants. It is said: “The bill is a bill to quiet title. A bill for that purpose is based upon an actual possession by complainant of the land in dispute, and when sustained, it is upon the ground that complainant has no other means of'bringing his title to an adjudication. Stockton v. Williams, Walk. Ch. 120; s. c. on appeal, 1 Doug. 546; Moran v. Palmer, 13 Mich. 367; Tabor v. Cook, 15 Mich. 322. But the evidence in this case does not show that complainants when they filed ■their bill had the possession necessary. Whether wrongfully or rightfully, the Clarks obtained exclusive possession of the church premises when the quarrel arose, and such possession as complainants obtained afterwards was given them by the arrangement with the Clarks. This was not an exclusive possession, and it was given and taken on the express understanding, between the parties that neither should gain or lose in legal rights thereby. But it is obvious that if the possession thus obtained could be made to support a suit in equity, the party bringing the suit would gain an important right thereby; and this seems to us so manifestly opposed to the understanding that we are compelled to hold that, as a suit to quiet title, this suit-cannot be sustained.” The court held as in King v. Carpenter, supra, that the bill having been filed to relieve the title of the church of the mortgage thereon, it might grant relief on'the ground that equity having jurisdiction of the controversy under a well-recognized head, might retain it to grant complete relief; or, as the court said: “It would therefore be competent for us to examine and dispose of the question of the validity of this mortgage on this record, and doing that would settle the question of the title.” Nevertheless it refused to do so, reversed the decree of the trial court, and dismissed the bill of complaint. This case settles that in a controversy like the present, a bill will not lie to restrain "the prosecution of a pending action of ejectment to try title to the disputed strip of land. F. H. Wolf Brick Co. v. Lonyo, 132 Mich. 162 (102 Am. St. Rep. 412), was a boundary dispute. The case is distinguishable from this, and additional authority for the position taken herein. The bill of complaint alleged a line fence had been established for 20 years; defendant attempted to tear down the fence and intended to erect another one six feet over from the old fence on complainant’s land. The trial court dismissed the bill on the ground that equity had no jurisdiction because there was a dispute as to the true boundary which should be tried in a suit at law. Complainant- in that case was in possession and had been in possession for 20 years. It had a right to protect its possession from the threatened continuing trespass of defendant as well as to prevent the destruction of the fence itself. The court said: “That complainant was in possession on the 17th day of July, when defendant commenced to remove the fence, is clearly established by the evidence. It, being in possession, could not bring an action of ejectment; the defendant could. It was his clear duty to do so, rather than to attempt by force to remove this old fence to the line which he claimed. Wilmarth v. Woodcock, 66 Mich. 331, 336. Complainant was under no obligation to stand- by, see the defendant build the fence upon another line, and then bring an action of ejectment. Defendant could not prevent complainant from maintaining this action by the removal of a small portion of the fence. It invoked the aid of the court to restrain this unjustifiable action on the part of the defendant as soon as it learned that he had commenced such removal. It moved seasonably.” F. H. Wolf Brick Co. v. Lonyo, supra, holds that in a case like this where there is a dispute as to the true boundary, and defendant is claiming land of which he is not in actual possession, that it is his duty to bring an action of ejectment rather than forcibly trespass upon the land in dispute in the actual possession of complainant and forcibly destroy the existing line fence; it indicates that defendants in this case did exactly what the court in F. H. Wolf Brick Co. v. Lonyo, supra, said it was their clear duty to do. Carpenter v. Dennison, 208 Mich. 441, did not involve a boundary. Ejectment had been begun against plaintiff, and the bill was filed to restrain its further prosecution and quiet title against the claims of plaintiff therein. It is said of the statute relating to quieting title: “But it has never been held, as we shall presently see, that the object of the act was to afford a defendant in an ejectment suit the option to deprive the plaintiff of his right to a trial by a jury, and permit him to elect in which court he would try the question of title. “Counsel for plaintiffs, in support of the contention that the bill is maintainable, cite the following cases: Woods v. Monroe, 17 Mich. 238; Dale v. Turner, 34 Mich. 405; Olsen v. Williams, 172 Mich. 316; Conley v. Sinclair, 163 Mich. 306; Grand Trunk, etc., R. Co. v. Fuller, 205 Mich. 486. But a careful examination of these cases shows that in each of them there were facts alleged bringing the case within the jurisdiction of a court of equity and calling for equi table relief, and that each case is clearly distinguishable from the instant case. * * * “Each of these cases presented a case for equitable relief upon equitable grounds and is in no way out of harmony with a long line of holdings by this court announcing the general rule that courts of law are the proper forum for the adjudication of legal titles. ’ ’ Citing, Stockton v. Williams, Walk. Ch. 120; Devaux v. City of Detroit, Harr. Ch. 98; Blackwood v. Van Fleet, 11 Mich. 252; Moran v. Palmer, 13 Mich. 367; Tabor v. Cook, 15 Mich. 322; Methodist Church of Newark v. Clark, 41 Mich. 730; Chandler v. Graham, 123 Mich. 327; Moody v. Macomber, 158 Mich. 209; Berger v. Roe, 179 Mich. 184. Carpenter v. Dennison, supra, holds that in a case like the present one the bill will not lie; that defendants herein who were plaintiffs in the ejectment suit, cannot be deprived of their right of trial by jury in the ejectment case, nor plaintiffs herein have the option of whether they will defend the ejectment suit or try the controversy on the equity side of the court. Sterling Bank of Sleeper & Chamberlain v. Scott, supra, holds that a case may be transferred from the law side to the equity side of the court. The statute so provides. Suit was begun by mandamus to compel the payment of four drain orders issued in a tricounty drain proceeding for bridge construction. A township and several interested parties were permitted to intervene, and upon defendant’s and interveners’ application the case was transferred to the equity side of the court. Interveners then filed a cross-bill seeking to set aside the drain proceedings and restrain the payment of the drain orders. It was claimed the contract price of earth removal was in excess of the bid of the contractor; no proper notice of the drain proceedings had been given; the bridge' flooring contract should have been let separate from the contract for the rest of the bridge to the lowest bidder; one of the drain orders was signed by only two drain commissioners, when it should have been signed by three; and the survey and plans of the drain were made by an unregistered surveyor in violation of the statute. The court held that defendants, not having questioned the regularity of the drain proceedings until the drain was dug, the bridges completed, and the public for some time had had the use. and benefit thereof, “a court of equity will not now listen to their stale complaint. ’ ’ In Cummings v. Schreur, supra, a bill was filed to quiet title against defendant alleged to be in possession. It is said: ‘‘ Such a bill may not be filed against one in possession. Ejectment is the action (3 Comp. Laws 1915, § 12302, subd. 4; Seymour v. Rood, 121 Mich. 173; Chandler v. Graham, 123 Mich. 327; Tinker v. Piper, 149 Mich. 335; Dolph v. Norton, 158 Mich. 417; Miscotten v. Hellenthal, 162 Mich. 402). We omit further citation. The bill gave the court no jurisdiction. Defendant, however, appeared, alleged adverse possession for the statutory period and asked that his title be quieted as against the claims of plaintiffs. This gave the court jurisdiction. ’ ’ The court in finally disposing of this case said: “ Plaintiffs had no right to file this bill against defendant in possession to quiet their title. Defendant had no right, under the proofs, to a decree quieting his title as against the dower right of Georgianna Cummings.” The decree of the trial court was reversed without prejudice. In Maes v. Olmsted, supra, a bill was filed to restrain an action of ejectment and quiet title. The location of the boundary line had been established and staked out 'by the common grantor of the parties, and they took title from such common grantor with reference to the boundary line located, established, and marked by him. After the termination of the action of ejectment, an outstanding record title would still have existed. The chancery suit also involved other lands than the ejectment case — ■ a multiplicity of suits would thereby be avoided— and equity having jurisdiction upon well-settled grounds retained it to grant complete relief. Such is not this case. Here the location of the true boundary line recognized by the common grantor is in dispute. The ejectment case involved all the land involved in the chancery case. There is and would be no cloud upon the title of either of the parties after the disposition of the ejectment case. There is no dispute as to the title of the respective parties. Each party claims title to the true line. There are no overlapping conveyances. The location of the true boundary line is all that is involved. When the location of that line is established, that ends the controversy. The ejectment case afforded a complete and adequate remedy at law. There was no peg upon which to hang the cloak of equitable jurisdiction. In F. H. Wolf Brick Co. v. Lonyo, supra, it is said: “In Campbell v. Kent Circuit Judge, in an opin-' ion by my Brother Montgomery, the cases relied upon by the defendant to sustain his contention are distinguished from cases like this.” What was involved in Campbell v. Kent Circuit Judge, 111 Mich. 575? Mandamus was sought against the'circuit judge to compel him to dissolve an injunction. It was refused. The bill was one to quiet title, restrain the construction of a cement driveway and the building of a cement or stone coping upon complainant’s land. The court recognized the correctness of the rule laid down in Andries v. Railway Co., 105 Mich. 557; Bresler v. Pitts, 58 Mich. 347; and Wykes v. Ringleberg, 49 Mich. 567, but said: “On the other hand, if a case is brought within some other head of equity jurisprudence, it is not conceived that the mere fact that there is involved in the question of the complainant’s right a necessity for fixing a boundary line ousts the court of jurisdiction.” This is the position uniformly taken by the court, and which was emphasized in Carpenter v. Dennison, supra. It is an application of the well-settled doctrine that equity, having jurisdiction of a case for any purpose, will retain it to grant complete relief. Whipple v. Farrer, 3 Mich. 436 (64 Am. Dec. 99); Wales v. Newbould, 9 Mich. 45; Jones v. Smith, 22 Mich. 360; Miller v. Stepper, 32 Mich. 194; Rickle v. Dow, 39 Mich. 91; Chase v. Boughton, 93 Mich. 285; Wallace v. Wallace, 63 Mich. 326; Brown v. Kalamazoo Circuit Judge, 75 Mich. 274 (5 L. R. A. 226, 13 Am. St. Rep. 438); Snyder v. Snyder, 131 Mich. 658; Burrows v. Leech, 116 Mich. 32; Pleasant Lake Hills Co. v. Eppinger, 235 Mich. 174; Bennett v. Haines, 225 Mich. 185; Ronczkowski v. Jazwiak, 230 Mich. 327; Argus v. Johns, 243 Mich. 595; Gillen v. Wakefield State Bank, 246 Mich. 158. “There is no case where a court of law has its jurisdiction cut off by the existence of equitable remedies. The rule is the reverse — that equity will not interfere if legal remedies are adequate. There is the strongest possible reason why a party should not be turned over to the tedious and dilatory process of a long suit, when there are no issues that need it.” LaGrange v. State Treasurer, 24 Mich. 468. Here is no claim of disputed title; no cloud or shadow of a cloud upon the title of either of the parties; no record of conveyances real or pretended is sought to be removed; no conveyances are asked to be canceled; no threatened injury to property and no threatened trespass is sought to be repelled. There is no dispute here except where the true boundary line is between the premises of plaintiffs and defendants. Each party claims the strip 16% feet wide in controversy. When the true location of the boundary line between the premises of the parties is settled, that ends the matter. Wykes v. Ringleberg, supra; Kilgannon v. Jenkinson, 51 Mich. 240; Bresler v. Pitts, supra; Andries v. Railway Co., supra; Dolan v. Smith, 147 Mich. 276; Weissert v. Fuller, 188 Mich. 328; Argus v. Johns, supra. As said in Wykes v. Ringleberg, supra: “The parties are in dispute as to where the true line is between the holdings. A strip of several feet in width is claimed by each. * * * “It seems evident that the substantial controversy is merely a difference about the legal ownership of a narrow piece of ground, and is rightly cognizable at law.” In Kilgannon v. Jenkinson, supra, it is said: “A full review of the proceedings makes it entirely clear that the fundamental dispute is about the correct position of the line between lots 3 and 7. The case is not one where a complainant in posses-, sion of a specific piece of land, and a defendant out of possession, but claiming some right or title, are contending as to which one has the better right to that same parcel; but it is a case where the titles^ are not opposed, and the basis and existence of all right and claim depend simply upon where the original line runs. When that is once settled there can remain no semblance of claim or cloud to be passed on, and the issue on that particular question is one regularly triable at law. “The distinction in these cases between the jurisdiction of law and equity depends in no manner on the comparative means of the parties. * * * “The result is that the case in the record is not one of which a court of equity is authorized to take cognizance. The grievance implies legal remedies, and there are no elements to divest the jurisdiction at law and entitle equity to deal with the controversy. ’ ’ In Drake v. Happ, 92 Mich. 580, it is said: “Boundary lines cannot be tried in a proceeding before a circuit court commissioner (Bennett v. Robinson, 27 Mich. 26; Foss v. Van Driele, 47 Mich. 201; Hill v. Olin, 82 Mich. 643), and ejectment was the proper remedy.” In Dolan v. Smith, 147 Mich. 276, it is said: “The rule is settled by repeated adjudications that the equity court has no inherent jurisdiction to determine boundary lines. * * * It is true that a court of equity may determine a question of a boundary line when encountered while administering a remedy which properly belongs to some recognized head of equity jurisprudence. * * * In this case, however, the complainants do not bring themselves by their proofs within the jurisdiction in equity. ” In Nicholls v. Boyne City Lumber Co., 157 Mich. 234, it is said: “We are of opinion that this claim cannot be sustained. The bill of complaint describes by metes and bounds a particular piece of land. It avers owner ship thereof in the complainants. It likewise avers that the defendant has taken and is now in possession of the same under a claim of ownership. Under .such averments, we think equity has no jurisdiction, and the rights of the parties should be determined by a suit at law in ejectment. See Kilgannon v. Jenkinson, 51 Mich. 240, where this court said: “ ‘A full review of the proceedings makes it entirely clear that the fundamental dispute is about the correct position of the line between' lots 3 and 7;’ and the conclusion reached by the court ‘is that the case in the record is not one of which a court of equity is authorized to take cognizance. The grievanee implies legal remedies, and there are no elements to divest the jurisdiction at law and entitle equity to deal with the controversy.’ “To the same effect, see Wykes v. Ringleberg, 49 Mich. 567; Andries v. Railway Co., 105 Mich. 557; Dolan v. Smith, 147 Mich. 276; Simmons v. Day, 151 Mich. 1; Warren v. Warren, 151 Mich. 96.” In Nicholls v. W. H. White Co., 157 Mich. 238, the rule of Nicholls v. Boyne City Lumber Co., supra, was affirmed. In Hendershott v. Moore, 188 Mich. 364, plaintiffs filed a bill to quiet title and for injunction. They claimed title to an island in Gun Lake. Defendants entered upon the island, cut down timber, removed underbrush, constructed the foundation for a house and commenced its erection. The circuit court granted relief. The bill was dismissed here for want of jurisdiction. It is said: ■ ‘ ‘ So far as this record discloses, defendants committed a simple trespass upon lands claimed by the complainant to belong to himself and the heirs of his cograntee. That trespass consisted in going upon the lands in question, and erecting, or starting to erect, a building. Such an act on the part of the defendants would, it appears to us, have no tendency to injure the freehold, and is not a trespass of such a nature as, under the authorities in this State, would clothe a court of equity with jurisdiction. See Nicholls v. Lumber Co., 157 Mich. 234, and cases there cited.” In Weissert v. Fuller, supra, it is said: “While .it is recognized that courts of equity may pass upon a disputed boundary when incidental to and connected, with other issues properly coming under some recognized head of equity jurisprudence, the rule is well settled that equity courts have no inherent and independent jurisdiction to determine the true location of disputed boundaries. * * * Ejectment and trespass are the customary, and ordinarily adequate, remedies at law by which disputed boundaries-are settled.” In Argus v. Johns, supra, it is said: “A court of equity having jurisdiction on any well-settled ground, the fact a-suit also involves a controversy over a disputed boundary will not oust the court of jurisdiction. Stewart v. Carleton, 31 Mich. 270; Wilmarth v. Woodcock, 58 Mich. 482; Campbell v. Kent Circuit Judge, 111 Mich. 575; Vier v. City of Detroit, 111 Mich. 646; F. H. Wolf Brick Co. v. Lonyo, 132 Mich. 162 (102 Am. St. Rep. 412). But where, as here, the sole question in dispute is the location of the true boundary line between parcels of land, the title to which is not involved, equity has no jurisdiction. The controversy is a legal one to be determined in an action at law. Wykes v. Ringleberg, 49 Mich. 567; Kilgannon v. Jenkinson, 51 Mich. 240; Bresler v. Pitts, 58 Mich. 347; Andries v. Railway Co., 105 Mich. 557; Dolan v. Smith, 147 Mich. 276; Weissert v. Fuller, 188 Mich. 327.” Equity is without jurisdiction of the subject-matter of the controversy. It is claimed, however, that the parties having so stipulated, the question involved should be disposed of in equity. A court of equity is a tribunal, not an arbitrator. Consent of the parties cannot confer jurisdiction of the subject-matter of a controversy over which a court has no jurisdiction. Its acts without jurisdiction are not judicial acts. Beach v. Botsford, 1 Doug. 199 (40 Am. Dec. 45); Clark v. Holmes, 1 Doug. 390; Spear v. Carter, 1 Mich. 19 (48 Am. Dec. 688); Wilson v. Davis, 1 Mich. 156; Farrand v. Bentley, 6 Mich. 281; Allen v. Carpenter, 15 Mich. 25; Moore v. Ellis, 18 Mich. 77; Youngblood v. Sexton, 32 Mich. 406 (20 Am. Rep. 654); Thompson v. Association, 52 Mich. 522; Kirkwood v. Hoxie, 95 Mich. 62 (35 Am. St. Rep. 549); Peninsular Savings Bank v. Ward, 118 Mich. 87; Hull v. Hull, 149 Mich. 500; Bradfield v. Bradfield, 154 Mich. 115 (129 Am. St. Rep. 468); Maslen v. Anderson, 163 Mich. 477; People v. Meloche, 186 Mich. 536; Carpenter v. Dennison, 208 Mich. 441. “Jurisdiction of the subject-matter cannot be given by consent.” Allen v. Carpenter, supra. “Consent cannot confer jurisdiction upon, or extend the jurisdiction of, a court, as to the subject-matter, beyond that which the law confers.” Kirkwood v. Hoxie, supra. “Jurisdiction of the subject-matter cannot be waived nor conferred by consent.”. Hull v. Hull, supra. “Parties cannot confer jurisdiction over a subject-matter by their consent, upon courts from which the law has withheld it. ’ ’ Maslen v. Anderson, supra. “Judicial jurisdiction comes only from the law, and cannot be conferred by consent, especially over the subject-matter.” People v. Meloche, supra. In Carpenter v. Dennison, supra, it is said: “While opinions may be found in this court holding that this question of jurisdiction may be waived, and cases which have disposed of the controversy notwithstanding the jurisdictional question, the tendency of the later decisions of this court is to hold that jurisdiction of the subject-matter, jurisdiction of the case itself, jurisdiction of the court, may not be acquired by waiver or consent. Riley v. Railway, 163 Mich. 327; J. F. Hartz Co. v. Lukaszcewski, 200 Mich. 230; Bolton v. Cummings, 200 Mich. 234; Miller v. Johnson, 201 Mich. 535; Munroe, Boyce & Co. v. Ward, 207 Mich. 369.” The question of jurisdiction of the subject-matter may be raised at any time. Greenvault v. Farmers’ & Mechanics’ Bank, 2 Doug. 498; Farrand v. Bentley, 6 Mich. 281; Attorney General v. Moliter, 26 Mich. 444; Adams v. Hubbard, 30 Mich. 104; Woodruff v. Ives, 34 Mich. 320; Horton v. Howard, 79 Mich. 642 (19 Am. St. Rep. 198); Tromble v. Hoffman, 130 Mich. 676; Attorney General v. Booth & Co., 143 Mich. 89; 15 C. J. p. 847. “If want of jurisdiction affirmatively appears by the files, it would not be cured by testimony on a hearing.” Woodliff v. Citizens Bldg. & Realty Co., 245 Mich. 292. “Jurisdiction of the subject-matter is governed by law and cannot be conferred by consent.” 17 Am. & Eng. Enc. Law (2d Ed.), p. 1060. “In consequence of the rule that jurisdiction of the subject-matter cannot be conferred by consent, the objection that a court is not given such jurisdiction by law cannot of course be waived by the parties.” 17 Am. & Eng. Enc. Law (2d Ed.), p. 1062. ' It is the- duty of the court to raise the question of jurisdiction of the subject-matter on its own motion. “On every writ of error or appeal, the first and fundamental question is that of jurisdiction, first, of this court, and then of the court from which the record comes. This question-the court is bound to ask and answer for itself, even when not otherwise suggested, and without respect to the relation of the parties to it.” Mansfield, Coldwater & Lake Michigan Ry. Co. v. Swan, 111 U. S. 379 (4 Sup. Ct. 510). See, also, Morris v. Gilmer, 129 U. S. 315 (9 Sup. Ct. 289). “If the record discloses a controversy of which the court cannot properly take cognizance, its duty is to proceed no further and to dismiss the suit.” Morris v. Gilmer, supra. “A court may of its own motion, even though the question is not raised by the pleadings or is not suggested by counsel, recognize the want of jurisdiction, and it is its duty to act accordingly by staying proceedings, dismissing the action, or otherwise noticing the defect, at any stage of the proceedings.” 15 C. J. p. 852. The decree should be reversed, and the bill of complaint dismissed, with costs. North, C. J., and Wiest and McDonald,. JJ., concurred with Potter, J.
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Wiest, J. Asserting ownership of the property on both sides of Lyons street from Campau avenue to the Grand river in the city of Grand Rapids, and invoking the provisions of Act No. 6, Pub. Acts 1926, Extra Session, Gustave A. Hendricks petitioned the Kent circuit court to vacate that part of the street. Before the petition was heard the Grand Rapids city commission took action, -at least tentatively, against vacating the street, and the city attorney and others interested appeared in opposition to vacating the street. The circuit court held that-the subject-matter was within the legislative jurisdiction of the city and the court had no jurisdiction to review the refusal of the city commission or order the vacation. Plaintiff reviews by writ of certiorari. The city, in opposition to the petition, invoked that part of section 28, art. 8, of the Constitution of Michigan, which provides: “The right of all cities, villages and townships to the reasonable control of their streets, alleys and public places is hereby reserved to said cities, villages and townships,” —and claimed that the control and discretion there vested is not open to judicial review, and asserted that the vacation “would be detrimental and injurious to the public interests and to the citizens of Grand Rapids.” Other parties, owners of property in the vicinity, and interested, directly or inciden tally, also opposed the petition. The right of the city and the F. Raniville Company to appear was conceded, but the petitioner objected to the appearance of others. ' Inasmuch as the legal questions appear in the opposition interposed by the city and the F. Rani-ville Company, we will not rule upon the appearance of others. Plaintiff relies upon the following provision of Act No. 6, Pub. Acts 1926, Extra Session: “If such petition (for vacation) is signed by at least two-thirds of the owners of lands and premises in such town or village or part thereof proposed to be vacated or altered and who also own collectively at least two-thirds by area of the lands and premises therein, the,court shall, if all such proceedings are regular, order that such town or village or part thereof be vacated or altered as prayed in said petition. ’ ’ Passing the provision of the Constitution, reserving to cities reasonable control of their streets and municipal legislative discretion and power, and not considering judicial power to review and annul municipal legislative discretion, and power, and stating the question baldly, must the court, upon application of a person owning the property on both sides of a city block, vacate the street? We had occasion in Re Petition of Hawkins, 244 Mich. 681, decided after the case at bar was heard, to consider the mentioned act and to answer the question in the negative, and there foreshadowed what we now hold. The act of 1926, if applicable to vacation of a part of or all of a street in a city, violates section 28, art.'8, of the Constitution of Michigan, and to such extent is void. This but sends us to the statute before such void' amendment. Spry Lumber Co. v. Trust Co., 77 Mich. 199; People v. Smith, 246 Mich. 393. The old statute is 1 Comp. Laws 1915, § 3355, and is found in a chapter relative to “the recording of town plats, and for vacating the same in certain cases.” The Constitution of 1908, however, enunciated a new principle upon the subject; not wholly-abrogating the old law but reserving to cities, townships, and villages reasonable control of their streets. If a court, upon application of a party, may vacate a street in a city contrary to the reasonable objection of the municipal authority, then the mentioned reservation in the Constitution is meaningless. If fjie city refuses to vacate the street the action, if reasonable and in the exercise of sound discretion, is final and not subject to court review. We have held such to be the rule in case a city authorizes the vacation of a street. Tomazewski v. Palmer Bee Co., 223 Mich. 565. There we reviewed vacation of a part of a street by municipal authority and we said : “Under the statute the council of the village of Hamtramck had power to vacate the streets and alleys in question, and whether such streets and alleys should be vacated or kept open was wholly a matter of expediency, and this was a question for the council and not for the courts to decide. Glasgow v. City of St. Louis, 107 Mo. 198 (17 S. W. 743). In the absence of clear abuse of discretion or fraud the courts may not review the action of the council determining the necessity of vacating streets.” See, also, In re Spears, 227 Mich. 525; Phelps v. Stott Realty Co., 233 Mich. 486. The court, since the Constitution of 1908, has no plenary power to vacate city streets, but only power of review of municipal discretion, in case of alleged abuse thereof or of fraud, and the petition to the court must aver the abuse or the fraud. The instant petition contained no such averments and the proofs did not show an abuse of discretion or fraud. The order in the circuit court, dismissing the petition, was without prejudice to the prosecution of a pending case brought by plaintiff herein against the city of Grand Rapids to quiet title to- some of the land here involved. The order in the circuit court is affirmed, with costs against plaintiff. v. North, C. J., and Fead, Clark, McDonald, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision.
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McDonald, J. This suit was brought to recover damages for injuries resulting from an automobile accident at the intersection of Summit and Peck streets in the city of Muskegon, Michigan. The defendant Newton Hilliard was the owner of the automobile. His wife, Tillie Hilliard, was driving it at the time of the accident. The plaintiff was struck and knocked to the pavement while attempting to cross the street. On the trial, she recovered a verdict and judgment. Defendants have brought error. There is no doubt as to defendants’ negligence. The only question is whether the plaintiff was guilty of contributory negligence as a matter of law. In discussing this question, we are not concerned with the defendants’ testimony except where it is undisputed. The burden of proving freedom from contributory negligence was on the plaintiff and when it is being considered as a matter of law, her testimony must be taken as true. She testified that before she started across the street she looked for approaching automobiles and saw none. She did not look again until she reached the center of the street. At that point she heard a horn and saw the defendants’ car 40 feet away. She took two steps backward, stopped and waited for the car to pass. It was coming from the east, traveling in the north half of the highway. The plaintiff stood two steps across the center line on the south side. She was asked: “Q. Then what happened? “A. She got within a few feet of me and I saw her jerk the wheel right for me, and I tried to get out of the way, but I couldn’t. I partly turned around and put my hands out like that (indicating) and that is when it hit me.” Considering this testimony most favorable to the plaintiff’s contention, in what way was she negligent? It is said that she was negligent because, she did not look for automobiles after she started across the street. Her failure to look had nothing to do with the accident. It was not a contributing cause. What she did or failed to do up to the time she reached the center of the street is immaterial, because she was not hit while crossing that portion of the highway. The important fact is that she saw the car in time to avoid the accident, and, if her testimony is true,, she then did what a person of ordinary prudence would have done to save herself from injury. She stepped back across the center line of-the street and gave the defendant the road. She stepped back where she would have been safe but for the negligence of the defendant. Assuming her testimony to. be true, she exercised a reasonable degree of.care for her own safety. Defendants’ version of the accident showed contributing negligence. It was for the jury to determine which claim was true.. The question was submitted to them in a proper charge and a verdict reached which the defendants say is against the great weight of the evidence. With this contention we do.not agree. The defendant Tillie Hilliard who was operating the car at the time of the accident was an inexperienced driver. Her 18-year old son sat on the front seat beside her. In testifying as to the accident, he said that his mother lost control of the car before it struck the plaintiff. This testimony explains what otherwise might be regarded as improbable, viz., that the driver swerved the car to the left and ran the plaintiff down though she had ample room to pass on either side of her. There was other testimony from disinterested witnesses in support of plaintiff's version of the accident, The trial court who heard the testimony says that the verdict is not against the great weight of the evidence. We agree that it should not be disturbed. The judgment is affirmed, with costs to the plaintiff. North, C. J., and Fead, Wiest, Clark, Potter, and Sharpe, JJ., concurred. The late Justice Fellows took no part in this decision.
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Fead, J. Defendant reviews summary judgment at suit of a holder of bonds secured by trust mort gage on real estate. The question is whether the-right to sue reposes in the trustee and is denied the bondholder. The bond, in ordinary form payable to bearer, recites : ‘ ‘ This bond is one of an issue of bonds of like date and tenor * * * all of which bonds are equally secured by a first mortgage or deed of trust, * * * to which mortgage or deed of trust reference is hereby made for a description of said property, the nature and extent of the security and the rights of the holders of the bonds issued under the same. * *’ * “This bond shall pass by delivery unless registered in accordance with the provisions indorsed hereon, and shall not be valid or obligatory unless authenticated by the certificate of the trustee of said mortgage indorsed hereon, and it is issued, received and held subject to all the terms and conditions of said trust mortgage.” The mortgage provides: “The right of action under this indenture is vested exclusively in the trustee and under no circumstances shall any bondholder have any right to institute any action or other proceedings on or under this indenture, except in the case of refusal on the part of the trustee to perform some duty imposed upon it by this indenture; and all actions and proceedings for the purpose of enforcing the provisions of this indenture shall be instituted and conducted by the trustees according to their sound discretion. ’ ’ The mortgage also provides that on 60-day default the trustee may, and upon written request of holders of a majority of the bonds shall, declare the whole amount of principal and interest due forthwith, and that the trustee is under no obligation to recognize any person as a bondholder until he deposits the bond and indemnifies the trustee against expenses. The mortgage is not set out in the record, and, except as above, we are not informed of its terms. Counsel have briefed the case exhaustively and from many angles, but because of the variety in form of bonds and mortgages extant and the' diversity of complications and claims which may arise from them, we deem it advisable to confine decision to the specific issues and contentions before us. Defendant, invoking the rule that instruments executed contemporaneously in a single transaction are to be construed together, contends that the bonds and mortgage are to be taken as though they were incorporated into a single form of contract. From this premise, it. argues that the term “this indenture” refers to the whole, the bonds as well as. the mortgage, and, consequently, that the right to sue on or under either is vested exclusively in the trustee. The rule invoked by defendant has its limitations (3 R. C. L. p. 871), which need not be discussed because it is a fact, recognized alike by business and the law, that a bond and its securing mortgage have different functions, are governed by different legal principles, and, for some purposes at least, are separate contracts. Paepcke v. Paine, 253 Mich. 636 (75 A. L. R. 1205). If it were not so, there would be no negotiable bonds except by accident, because provisions found in practically all trust mortgages would destroy negotiability. First State Savings Bank v. Russell, 244 Mich. 298. ■ Primarily, a bond is a contract to pay, the mortgage is a separate contract to secure payment. The provisions of the mortgage are incorporated into the bond only insofar as, by proper language, they are made part of the bond and the holder thereby is given notice of them. Guilford v. Railway Co., 48 Minn. 560 (51 N. W. 658, 31 Am. St. Rep. 694). The incident of negotiability in bonds necessary to en~ able the business of the country to be transacted and the protection of the bondholder from conditions in a mortgage which he ordinarily does not see and which are not set out in the bond which he does see, havts properly inclined the courts. to a strict construction of language which attempts to modify the obligation of and rights under a bond by incorporation in it," through reference, of provisions of the mortgage. Goodjon v. United Bond & Building Corp., 226 App. Div. 137 (234 N. Y. Supp. 522); Mack v. American Electric Telephone Co., 79 N. J. Law, 109 (74 Atl. 263); Reinhardt v. Inter-State Tel. Co., 71 N. J. Eq. 70 (63 Atl. 1097). The bond' being a contract to pay, the holder has the right to sue upon it. 41 C. J. p. 654. As to negotiable bonds, the right is expressly provided by statute. 2 Comp. Laws 1929, § 9300. Whether this right can or cannot be restricted by the mortgage (Boley v. Railroad Co., 64 Ill. App. 305; Crosthwaite v. Moline Plow Co., 298 Fed. 466; Allan v. Moline Plow Co. [C. C. A.], 14 Fed. [2d] 912; Berman v. Consolidated Nevada-Utah Corp., 132 Misc. Rep. 462 [230 N. Y. Supp. 421]; Goodjon v. United Bond & Building Corp., supra), we need not determine. If it can be restricted, the limitation must be clearly expressed. We also pass without decision plaintiff’s point that the bond merely makes “reference” to the mortgage and that the words “subject to” in the second quoted paragraph above apply only to registration and authentication, and the mortgage does not limit the right of action at all. Assuming-, then, but without deciding, that the right of a bondholder to maintain action on the bond may be iestricted by the mortgage, and that the language of the bond at bar incorporates into it any restrictions upon such right enumerated in the mortgage, does this mortgage deny him the right to sue at law on the bond? The right of action vested exclusively in the trustee and-denied the bondholder is “on or under this indenture.” We may assume that the mortgage is in the usual form, beginning “this indenture.” The expression is not used in the bonds. From defendant’s failure to show otherwise, we also assume that nowhere in the mortgage are the words used to include the bonds, except for the contention here. As the expression is used only in the separate and individual instrument, the mortgage, it must be confined thereto. A bondholder would so understand from the use of the word “this.” Moreover, historically, the indenture was a conveyance of real estate, and, while some of the old rules and practices have been changed, the word still is commonly restricted to instruments affecting real property. It is not applicable to a bond, which is a mere promise to pay. We think the language of the mortgage cannot be construed to restrict the 'right of the bondholder to sue at law. In General Investment Co. v. Interborough Rapid Transit Co., 200 App. Div. 794 (193 N. Y. Supp. 903), the only cited case closely in point on language of the provision, the court said: ‘ ‘ The present action is not barred, by the clause in question, as the action is not to enforce the indenture or any rights thereunder, or to secure any remedy or relief therein provided. The action is by the holder of the notes against the maker on the maker’s primary obligation to pay the debt evidenced by said notes. Snch an action is not prohibited by •said clause of the collateral trust indenture. Said clause relates solely to the enforcement of the collateral security for the payment of said notes, and in no manner affects the action upon the notes themselves. The law has long been well settled that one holding a primary obligation to pay money secured by mortgage may bring action .to recover upon the primary obligation without seeking to enforce the security. ’ ’ Counsel have argued at some length the possible business effect of a decision in this case. In proper cases the courts have given weight to such considerations. But they also must be kept in mind in the drafting of instruments. Courts cannot make contracts for parties. They must assume that contracts are made in the light of established principles of law, and they cannot deprive individuals of contract rights acquired under such principles because later conditions indicate that a different contract should have been made. Nor should the court, for the benefit of a single case, force a construction which, as a precedent, would have a disastrous general effect. While defendant urges that negotiability of bonds is not in issue here, it is apparent that the application of the rule upon which it lays its case to mortgage bonds would imperil, if not certainly destroy, their negotiability. We discover no error in the record, and judgment is affirmed, with costs. Clark, C. J., and McDonald, Potter, Sharpe, North, Wiest, and Butzel, JJ., concurred.
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North, J. This is a suit in equity to enjoin the superintendent of drains of Muskegon county from proceeding with the construction of a “sewer drain” wholly within the village of Whitehall, located in Whitehall township in Muskegon county. Plaintiffs are the owners of property in the village of Whitehall which will be assessed for benefits. They claim relief on the ground that the Muskegon county superintendent of drains is without authority to construct a sewer drain located wholly within the limits of the village of Whitehall; asserting that such authority is vested in the village council by its charter as well as by the statute providing for the incorporation of villages in this State. The relief sought by plaintiffs was decreed, and defendants, consisting of the drain commissioner and other officials acting with him in the construction of this drain, have appealed. Appellants contend, first, that the drain commissioner is vested with authority to construct the drain in question; and, secondly, that plaintiffs’ remedy, if any, was on the law side of the court by certiorari, and that the equity court is without jurisdiction in this matter. The office of the superintendent of drains of Muskegon county was created by Act No. 462, Local Acts 1907. The superintendent together with the supervisor and highway commissioner of each township are constituted a “local drain board” (section 3); and the superintendent by this act is charged with the same duties and given the same powers as are conferred by the general statute upon county drain commissioners (section 5). It is appellants’ contention that the village of Whitehall is still a part of the township, and therefore by virtue of the local act the superintendent of drains together with the other two members of the local drain'board have authority to construct a drain even though wholly located within the village. On the other hand, appellees contend that the “local drain board” has no authority to act in the construction of the drain wholly located within the village of Whitehall, because, by Act No. 262 of the Session Laws of 1873, pp. 1088, 1098, the common council of the village of Whitehall is given power “to construct sewers, drains, * * ■ * and to make such other public improvements as may conduce to the general good and prosperity of said village;” and by section 20 of Act No. 262 the council is empowered to assess and levy by special tax the “expense * * * of making drains and sewers and other local improvements.” Also by Act No. 3, Pub. Acts 1895, § 24, chap. 7 (1 Comp. Laws 1929, § 1572),. it is provided: “The council of any village may establish, construct and maintain sewers, drains and watercourses whenever and wherever necessary. * * * But in all cases where the council shall deem- it practicable, such sewer, drain and watercourses shall be constructed in the public streets and grounds. ’ ’ And Act No. 278, Pub. Acts 1921 (1 Comp. Laws 1929, § 1573), provides that the expense of constructing such sewers, drains, etc., may be paid by general tax upon all taxable property in the village or may be defrayed in whole or in part by special assessments upon the lands and premises benefited thereby in proportion to such benefits. In view of the legislative enactments upon which plaintiffs rely, the authority of the village council to construct drains and sewers cannot be questioned. It would, indeed, be anomalous if, as would follow from defendants ’ contention, there were two wholly independent bodies of public officials vested with full authority to act in this same field. Were this true, obviously .conflicting factions-' might impose upon a village two systems of sewers, or there might be radically conflicting action in drainage matters. An intolerable situation would result. The fair, reasonable, and necessary construction of these respective statutory provisions is that the village council has exclusive control of the matter of constructing drains and sewers located wholly within the village boundaries. A holding of this character will be found in City of Detroit v. Corey, 9 Mich. 165 (80 Am. Dec. 78), wherein this court said: “The power conferred upon the city of Detroit to construct sewers under public streets, is not a power given to the city for governmental purposes, or a public municipal duty imposed on the city, like that to keep its streets in repair, or the like, but a special legislative grant to the city for private purposes. The sewers of the city, like its works for supplying the city with water, are the private property of the city; the corporation and its corporators — its citizens — are alone interested in them; the outside public, or people of the State at large, have no interest in them, as they have in the streets of the city, which are public highways. ” (Syllabus.) Also in a later case we held: “The action of a county drain commissioner in establishing a drain wholly within the corporate limits of a city, the charter of which gives to the city complete jurisdiction over its drainage, is void.” Mason v. Railway Co., 104 Mich. 631 (syllabus). See, also, Gunther v. County Road Com’rs, 225 Mich. 619. The recent case of Warren Township v. Engelbrecht, 251 Mich. 608, which is referred to in the briefs, does not cover the point here involved because the lands there sought to be assessed were not within the boundaries of any city or village. We think the circuit judge was right in holding defendants were wholly without authority to construct the drain in question. Notwithstanding the claim of appeal herein was filed prior to the adoption of the 1931 court rules, we are not in accord with, appellants ’ contention that the court of equity is without jurisdiction, and that the sole remedy of plaintiffs, if any, is on the law side of the court by certiorari. Touching this question, appellants quote Township of Clarence v. Dickinson, 151 Mich. 270, wherein it is held: “The lack of jurisdiction which will warrant relief in equity must arise from a violation of the Constitution.” Appellants assert that there is nothing in this proceeding which violates a constitutional right of plaintiffs. In this we cannot agree. If, as we hold, defendants were wholly without authority to lay this drain, the ultimate result of assessment of benefits and the collection from plaintiffs of the drain tax would be to deprive them of their property without due process of any sort. This drain proceeding had progressed to the point where the superintendent of drains had advertised for bids for construction. It. may be conceded that if the issue or issues raised by plaintiffs had to do merely with matters of irregularity relative to such proceeding the sole remedy under the statute would be by appeal in the nature of certiorari; but where the officials acting in the drain proceeding are wholly without jurisdiction or authority to act, the proceeding is void, and equity has power to restrain. “If fraud in the proceedings is alleged and pointed out, or jurisdictional defects are specified, such charges may be investigated’ ’ in equity. Hudlemyer v. Dickinson, 143 Mich. 250, citing Clark v. Drain Com’r, 50 Mich. 618, 620. See, also, Corning v. Potter, 171 Mich. 690. The decree of the circuit court is affirmed, with costs. Clark, C. J., and McDonald, Potter, Sharpe, Fead, Wiest, and Butzel, JJ., concurred.
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Wiest, J. In an automobile accident plaintiff’s car was destroyed and she received personal injuries. The automobile was insured and the insurer paid plaintiff the loss, and, by writing, constituted plaintiff its trustee to have recovery from defendants along with her damages for personal injuries. Plaintiff filed a declaration, alleging that she brought suit for herself and as trustee. It developed at the trial that, for damages to the automobile, she was trustee for the insurance company. Suit was brought before the passage of Act No. 271, Pub. Acts 1929 (3 Comp. Laws 1929, § 14010), permitting joinder. Defendants moved the court to dismiss the case on the ground that the action was not brought in the name of the real party in interest, relying upon 3 Comp. Laws 1929, § 14010, and the authority of Waters v. Schultz, 233 Mich. 143; Heck v. Henne, 238 Mich. 198; McPeake v. Railway Co., 242 Mich. 676; Grubaugh v. Murphy Co., 209 Mich. 551; Michigan Employers Casualty Co. v. Doucette, 218 Mich. 363; Cox v. Railway, 234 Mich. 597; National Liberty Ins. Co. v. Foth, 254 Mich. 152; Worth v. Wagner, 255 Mich. 433. Also that plaintiff had split her cause of action. Thereupon counsel for plaintiff and the insurance company waived all claim for damages for loss of the car, and the court permitted the case to proceed, and the jury rendered a verdict awarding damages solely for personal injuries sustained by plaintiff. Had plaintiff stood upon the declaration it would have been the duty of the court, under the authorities cited, to have dismissed the action. The waiver by plaintiff, and the representative of the insurance company, of claim for loss of the car, made continuance of the action single in purpose and the plaintiff the only party in interest. But, it is said, that the engagement between plaintiff and the insurance company obligated her to pay $750 out of any verdict rendered under the declaration as first filed, and the jury might not have awarded the amount of $750 for loss of the car, and, in such event, the insurance company was a party in interest in any recovery by plaintiff. This is rather speculative, and, we think, fully met by the waiver of right to recover any damages for the loss of the car. The facts attending the accident are fully set forth in Hoban v. Ryder, ante, 188, and obviates the need of a restatement. A witness, called in behalf of plaintiff, testified that he did not see the accident but heard the crash and went out, found the car on fire, but did not look for any skid marks, although after the accident he saw a person painting skid marks on the concrete pavement. Admission of this testimony, it is claimed, was error. The testimony of the witness further disclosed that the person painting the skid marks was the son of defendant Charles Ryder, and that the painting was done the same day of the accident. Perhaps the testimony did not have much probative value, but we cannot hold that its admission constituted reversible error. Defendants’ liability has been affirmed by our opinion in the Hob an Case. "We find no reversible error, and the judgment is affirmed, with costs to plaintiff. Clark, C. J., and McDonald, Potter, Sharpe, Forth, Pead, and Butzel, JJ., concurred.
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Clark, C. J. Plaintiff brought replevin for a Frigidaire, and, from summary judgment in favor of defendant, has appealed. The article was sold to Claire B. Whitney on conditional sales contract, which is urged to he a chattel mortgage and void against the defendant, as it was not filed. The writing here is similar to those involved in Contractors Equipment Co. v. Reasner, 242 Mich. 589; Federal Com’l & Sav. Bank v. Internat'l Clay Machinery Co., 230 Mich. 33 (43 A. L. R. 1245), which were held to he agreements of conditional sale, and a like holding is made in this case. See, also, Nelson v. Viergiver, 230 Mich. 38; Burroughs Adding Machine Co. v. Wieselberg, 230 Mich. 15. Plaintiff sold the article to Whitney, who was engaged in building and selling houses. It knew this to he his business, knew that it was usual to install refrigeration in the houses, and knew the article was to go into one of the houses. Defendant, who purchased from Whitney the house so equipped, contends the writing void as to him because not filed under 2 Comp. Laws 1929, § 9550: “9550. Conditional sale of property for resale; written contract, filing, discharge. Section 1. Whenever any personal property is sold and delivered to any person, firm or corporation regularly engaged or about to engag*e in the business of buying and selling such personal property, with the condition affixed to the sale that the title thereto is to remain in the vendor of such personal property until the purchase price thereof shall have been paid, with the agreement express or implied, that the same may he resold, every such conditional sale in order for the reservation of title to he valid except as between the vendor and vendee shall be evidenced in writing and the written contract of every such conditional sale or a true copy thereof shall be filed and discharged in the same manner as chattel mortgages are required to be filed and discharged.” It is argued by plaintiff that Whitney was not engaged in buying and selling refrigeration as such, and therefore the statute does not apply. We think what was here done falls within the statute, that it was intended to cover such a transaction. This statute was before the Federal court in Re Mutual Motors Co., 260 Fed. 341. There the buyer was engaged in equipping and selling automobiles. He bought tires and rims on conditional sales contract, and used them in equipping the automobiles. It was contended there, as here, that the, buyer was not engaged in the business of buying and selling tires and rims as such and that, therefore, the statute did not apply. On petition for reclamation of the property, the court held: “The only other reason urged in support of the argument that this statute is not applicable to this case is that the bankrupt was not engaged in selling tires and rims as such. It was part of the regular business of the bankrupt to buy such accessories and sell the same to purchasers of automobiles as part of the necessary equipment. The business of the bankrupt falls within the definition of the statute and there is no merit in this contention.” We think the Federal court reached the right conclusion, and we have like conclusion here. Affirmed. McDonald, Potter, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred.
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Butzel, J. On November 1, 1926, Stormfeltz-Loveley Company, defendant herein, executed to plaintiff, Detroit Trust Company, as trustee, a trust mortgage on. the land, and eight-story building at the northeast corner of Woodward avenue and Bast Grand boulevard, Detroit, to secure a serial bond issue of $1,000,000, payable over a term of years. It contained the usual clauses providing for foreclosure and sale and also an assignment of income in accordance with Act No. 228, Pub. Acts 1925 (3 Comp. Laws 1929, § 13498 et seq.). Upon default in a serial payment of $100,000 and of a balance of $20,000 for interest, both due November 1, 1930, plaintiff accelerated the entire balance due, asserted its rights to the income and property, and filed a bill of foreclosure. On April 16, 1931, a decree was entered, finding $813,173.30 plus fees due, and ordering a sale by the circuit court commissioner. On December 1, 1930, a bondholders’ protective committee was organized, and all but $21,500 of the $800,000 of outstanding bonds were deposited with the committee under a bondholders’ protective agreement. Its provisions gave the committee broad powers^ They might purchase the mortgaged property and apply the' bonds towards payment. They could form a corporation to hold, own, and operate the property, if purchased. The agreement amounted substantially to an irrevocable power of attorney to exercise the rights of ownership, but all for the benefit of the bondholders. The sale of the mortgaged property was advertised by the circuit court commissioner, who offered it for sale' on September 29, 1931. The following day he filed a “preliminary report of sale,” showing that he had offered the property for sale but that no bids were received and none appeared to be obtainable for a sum representing the present fair and- reasonable value of the interest of the holders of the bonds. On December 10, 1931, a petition signed by all the members of the bondholders ’ committee was filed in the foreclosure suit. A copy of the bondholders’ protective agreement was attached. The petitioners stated that they represented $778,500 of the $800,000 bonds outstanding, and had all rights and powers in respect to them; that no bids were obtainable at the attempted sale for a sum representing the fair and reasonable value of the interest of the bondholders, which amount was placed at $760,000. It prayed that the trustee be authorized to bid in the property under Act No. Ill, Pub. Acts 1931, for such amount. A brief reference to this act is necessary. It is entitled: “An act to provide for the administration of mortgage trusts under the jurisdiction of equity where the consummation of the objects and purposes thereof in manner and form as intended by the mortgage indenture shall be found not capable of accomplishment. ’ ’ It provides that upon the hearing of a report of sale under a decree in proceedings to foreclose a trust mortgage given to secure bonds or other obligations, duly issued and authenticated, if it appears that no bid has been made or appears to be obtainable for a sum representing the then fair and reasonable value of the mortgaged premises, the court may, at the written request of holders of not less than a majority of the bonds, who shall in both number and amount be fairly representative of the rights and interests of all bondholders, authorize the bidding in of the property for the fair and reasonable value of the interest of the bondholders, and order the sale of the property to the trustee for the benefit of all holders of bonds or other obligations secured by the mortgage. In determining the majority of the outstanding bonds, those held by the mortgagor or for its benefit are not included. The bidding by the bondholders shall constitute their appearance and intervention in the case, and any other bondholders may appear. The property when bid in is to be managed and administered by the trustee under and in accordance with the rules and principles of law and equity pertaining to express trusts, but shall be subject to the jurisdiction of the court. The trustee shall have the power to repair, maintain, and operate or lease the property until the sale thereof. It may borrow money and mortgage the property for the payment of the portion of the bid required to be paid in cash or for any other purposes of the trust, all for the benefit of the holders of the bonds, obligations, etc. It is the duty of the trustee to negotiate and effect a sale or other disposal of the property as soon as it can be done without sacrifice of the fair and reasonable value of the property. The sale may be for cash, or, in whole or in part, for bonds, notes, debentures, stocks, or other securities. No contract, the full performance of which shall extend beyond two years, may be made except by and with the approval and authorization of the court, upon due notice to, and consent of, the majority in interest of the beneficiaries of the trust. We shall not refer to many other important provisions of the act. The act was given immediate effect and approved May 18,1931. On hearing of the petition, it was shown that the average earnings from the property, without figuring depreciation, were in the neighborhood of 5 per cent, above taxes and fixed charges, notwithstanding the fact that a large part of the building was vacant. Even at the time of the foreclosure, the earnings had fairly well kept up. Plaintiff and defendant offered conflicting testimony as to the adequacy of the bid of $760,000 under the prevailing conditions. The court ordered the sale at the price bid. James J. Spillane, a holder of a $1,000 bond, appeared specially at the hearing for the purpose of objecting to the granting of the petition, and he, together with defendant, have appealed from the order of the court. Counsel claim that, as one of the results of the financial depression, it is extremely difficult to obtain loans on real estate security; that in many instances the income from mortgaged property is insufficient to pay taxes, operating charges, interest, and serial retirements, and the trustee should bring foreclosure proceedings to avoid further loss; that a bondholders ’ committee representing but a portion of the bonds may be seriously handicapped and possibly not be able to bid at all on account of its inability to pay the amount of cash required to purchase the property at foreclosure sale even after the application of the deposited bonds; that if a cash bid is made at all, it must be a very small one; that bondholders, realizing conditions', are apt to sell their bonds for far less than their actual value. The seriousness of the situation is recognized by the title to Act No. Ill, Pub. Acts 1931, and also by the further fact that the act was given immediate effect by the legislature. Plaintiff contends that the provisions of the act were not invoked until after the property had been offered at a judicial sale at which the bondholder, the mortgagor, and the public had an opportunity to bid; that the mortgage indenture created an express trust, the purposes of which were found incapable of being carried out in manner and form as intended by the mortgage; and thereafter the aid of a court of equity was sought to administer substantial relief to all bondholders without any discrimination. The defendant and' objecting bondholder claim that the commissioner’s sale may have failed because plaintiff desired to invoke the aid of Act No. Ill, supra, and that the committee holding over 97 per cent, of the bonds could have purchased the property with a comparatively small cash outlay. But a few years previous it had been appraised at .more than twice the amount of the mortgage loan, and it was paying a very substantial income over and above taxes and fixed charges even during the period of foreclosure. ■ It is further claimed that the title of the act is insufficient and does not fully describe its purposes. We believe that the title does give sufficient notice of the purposes of the act. It is further contended that the act should not have been given immediate effect. In Industrial Bank of Wyandotte v. Reichert, 251 Mich. 396, we upheld the powers of the legislature to give immediate effect to a law affecting the public safety .by protection of property. See, also, Naudzius v. Lahr, 253 Mich. 216 (74 A. L. R. 1189, 30 N. C. C. A. 179). The main attack on the law is made on the ground that it offends both the Federal and State Constitutions in that it provides for the taking of property without due process of law, contrary to the provisions of the 14th Amendment of the Constitution of the United States and article 2, § 16, of the State Constitution; and also in that it impairs the obligation of a contract contrary to the provisions of article 1, § 10, of the Constitution of the United States, and article 2, § 9, of the State Constitution. We shall only discuss the effect of the act as to mortgages executed prior to its enactment. Plaintiff claims that the act affects the remedy alone. In so doing, however, it may not take away substantial rights of parties to the instrument or those having a beneficial interest therein, Mundy v. Munroe, 1 Mich. 68; Cargill v. Power, 1 Mich. 369; Blackwood v. Van Vleet, 11 Mich. 252. See, also, Rott v. Steffens, 229 Mich. 241, 246 (38 A. L. R. 224). The authority given by the court to the trustee to bid $760,000 for the property was granted at a hearing of which no notice was given to bondholders who had not deposited their bonds with the committee. Plaintiff claims that these holders were parties to the foreclosure brought by the trustees in their behalf, and thus had at least constructive notice of the proceedings in the suit. The indenture provided that the foreclosure was to be brought by the trustee, not by the bondholders. "While no notice is necessary with respect to proceedings incident to the usual foreclosure sale, notice was necessary under the special type of proceeding provided by the act. It provides that the bid on the request of a majority of bondholders would constitute their appearance in the case, and that nonassenting bondholders might also appear. How were the latter to appear without any notice % The amicus curies, who has filed a brief in support of the act, asserts that if notice was necessary it should have been given, and that a provision to that effect can be read into the act. The fact remains, however, that no notice was given, and it was essential that the nonassenting bondholders should have had notice either by personal service, or, if this could not be obtained, then by publication. Appellants further claim that the due process clause was violated because the property was not sold in the manner provided by the indenture and in accordance with the law affecting foreclosure at the time that the indenture was executed. They also contend that the procedure used is against public policy in that it stifles bidding. We cannot see how any substantial rights of the mortgagor are violated by the act. It only provides for invoking the aid of a court of equity after the property has been offered at public sale, duly advertised, and no substantial bid has been received. If a substantial bid is made, the act does not apply. It is true that prospective bidders are more apt to refrain from bidding for cash when they know that the bondholders or the vast majority of them, acting through a committee, will outbid them, because they are able to apply bonds on the purchase price. Bidders other than bondholders have always suffered from this as well as other disadvantages. The act rather operates to the advantage of the mortgagor. It insures a substantial bid for the property, and thus decreases the deficiency. The mortgagor has notice of all proceedings, and is not deprived of any substantial rights. The act does seriously impair the obligations of the contract of the nonassenting bondholders. There is a deviation from the express trust created by the indenture under which nonassenting bondholders are cestuis que trust ent. In Young v. Young, 255 Mich. 173 (77 A. L. R. 963), we upheld the deviation from an express trust where there had arisen an exigency not contemplated by the settlor. An exigency may arise where the security may be much impaired or entirely lost through unusual conditions. Such was the case in City of Detroit v. Railway, 226 Mich. 354, relied upon by plaintiff. In that case, because of the emergency that arose on account of the threatened ousting of the Detroit United Railway from the streets of Detroit and the consequential depreciation, approaching extinction, of a large part of the mortgage security located in Detroit, the court did permit, without consent or notice to all of the bondholders, the allocation of assets located in the city of Detroit, so that in return for the large sum to be paid from their sale to the city, a proper release of mortgage could be given to the city. No such exigency or emergency is presented in the instant case. The difficulties are not new, though more serious at the present time than ever before. A bondholder has a right to insist upon his contract, even if eventually he should fare worse by insisting upon his share of a sale for cash, together with the right to look to the responsibility of the mortgagor for a proportionate share in the deficiency. He is not bound to become an owner in common of a beneficial interest in a trust which may run on for many years and from which he may realize cash, stocks, bonds, or other securities that eventually may net him more or less than the amount he would have received had the property been sold for cash. We have examined with care many cases cited to us. In Northern Pacific R. Co. v. Boyd, 228 U. S. 482 (33 Sup. Ct. 554), it was held that in a reorganization in which the shareholders participate and retain an interest and no provisions are made for non-assenting creditors not parties to the foreclosure, nor made such by notice to prove their claims, the latter may pursue their remedy against the property of the corporation even after a judicial sale. (See Louisville Trust Co. v. Railway Co., 174 U. S. 674 [19 Sup. Ct. 827].) • The court stated by way of dictum that if a creditor should refuse a fair offer, on equitable terms, of income bonds and preferred stock, he could not later attack the sale. This dictum is the basis of the decision in Phipps v. Railway Co. (C. C. A.), 284 Fed. 945 (28 A. L. R. 1184), upon which plaintiff strongly relies. A result contrary to that of the Phipps Case, supra, is reached in Coriell v. White, 54 Fed. (2d) 255, in which the court, in holding that a creditor is absolutely entitled to cash equal to an aliquot share, of what the proceeds at public sale would bring, said: “It must be left to the decision of the creditor whether he will accept a new form of security in payment of his debt, and thus embark upon a new venture, or insist upon the rights which are his because of the contract which he entered into and by which he extended credit.” Michigan has adopted the deciding point of the Boyd Case in Wabash R. Co. v. Marshall, 224 Mich. 593. See, also, P. R. Walsh Tie & Timber Co. v. Railway Co. (C. C. A.), 280 Fed. 38; In re Prudential Outfitting Co., 250 Fed. 504; Ex parte Moore, 6 Fed. (2d) 905. We believe that the correct and reasonable rule in mortgage foreclosures is stated in Werner, Harris & Buck v. Equitable Trust Co. (C. C. A.), 35 Fed. (2d) 513; in the absence of any provision therein in the trust agreement— “authorizing the trustee to bid for and on behalf of the bondholders, there was no power in the courts to confer such authority upon the trustee. * * * Each bondholder has the absolute right to determine for himself, in case of default, whether he shall take his loss and quit, or continue to gamble; if the property is sold at public sale, he has a right to take his proportion of the best bid that can be secured in cash, and cannot be compelled to become an owner of an undivided interest in the property.” To like effect are James v. Cowing, 82 N. Y. 449; Hollister v. Stewart, 111 N. Y. 644 (19 N. E. 782); Beckman v. Emery-Thompson Mach. & Supply Co., 9 Ohio App. 275. We are not in accord with the decision in Nay Aug Lumber Co. v. Scranton Trust Co., 240 Pa. 500 (87 Atl. 843), which fully supports plaintiff’s contentions. In Werner, Harris & Buck v. Equitable Trust Co., supra, the reasoning of Nay Aug Lumber Co. v. Scranton Trust Co., supra, is held untenable. We have examined with great care Colorado & Southern R. Co. v. Blair, 214 N. Y. 497 (108 N. E. 840); Sage v. Railroad Co., 99 U. S. 334; Gilfillan v. Union Canal Co., 109 U. S. 401 (3 Sup. Ct. 304); and Canada Southern R. Co. v. Gebhard, 109 U. S. 527 (3 Sup. Ct. 363), as well as other cases cited by counsel, and they are not at all controlling in the controversy at bar. The bondholders are entitled to receive what their contract provided for, and cannot be compelled to take in lieu thereof a beneficial interest in a trust uncertain as to time and outcome, and not contemplated by the indenture. The foreclosure sale is set aside, with costs to defendants, but without prejudice to the right of a resale under the foreclosure decree. Clark, C. J., and McDonald, Potter, Sharpe, North, Fead, and Wiest, JJ., concurred.
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Butzel, J. At about 6 p. m. on December 22,1930, a long truck of defendant Detroit Creamery Com pany was proceeding in a northerly direction along Third avenue, and had just passed the intersection at Brainard street in Detroit. The truck consisted of a heavy tractor with two trailers attached. The first trailer was so firmly joined to the tractor that they together appeared to be one large truck to which the second trailer was attached. Each trailer was carrying 23,460 pounds. At the point to which the truck had proceeded, Third avenue is 46 feet in width, with tracks for a single street car line in the center. The street is “crowned,” the surface in the center being two inches higher than that along the curb. The trailers resembled covered freight cars, with boxes 17 feet long and eight and one-third feet wide, with a floor four and one-half feet from the ground, and the roof six feet from the floor. Each trailer had an iron stirrup about 12 inches square that dropped from the floor, and also had a single door attached by hinges and fastened by a bolt about two and one-half feet above the floor of the car or about seven feet above the pavement. Above the bolt there was a handle sufficiently large for two hands to grasp. Gerald Deyo, who by his next friend, Arthur Deyo, is plaintiff, was almost twelve and one-half years of age at the time he sustained the injuries claimed to have been due to defendant’s negligence. His home was on the south side of Brainard street in the block east of Third avenue. At about the same time that defendant’s truck was coming up Third avenue, plaintiff was proceeding along Brainard street in order to make a small purchase for his parents at a grocery store on the west side of Third avenue. When he reachéd the latter street, he proceeded northerly on the east side to a point about 30 or 40 feet north of the Brainard street intersection, and then started to cross. He had just advanced a few feet from the curb when he stopped in order to permit defendant’s truck to pass him. There is conflicting testimony as to just what then occurred. The boy stated that he stood about two feet from the easterly curb waiting for defendant’s approaching truck to pass; that there was an automobile parked along the east side of the curb about 20 feet north from where he stood and in a direct line with defendant’s truck; that after the first trailer had passed the boy, defendant’s driver, in order not to run into the parked automobile, swung the truck out into the center of the street, the pavement of which was covered with ice; that in so doing, he made such a sudden and sharp turn that the second trailer skidded; that the boy held out his arms so as to avoid being hit, and in so doing was knocked down, and the rear left wheel of the second trailer passed over his left leg, completely crushing it, and necessitating amputation. The boy’s testimony was corroborated by an eyewitness, who stated that the truck was proceeding at the-rate of 15 to 18 miles per hour, and when its course was suddenly deflected, the rear trailer skidded on the ice, knocked the boy down, and caused the injuries. Plaintiff claims that defendant’s negligence consisted in driving at too rapid a rate of speed on a crowned pavement covered with ice, and in sharply turning the truck to the left so as to cause the trailer to skid and thus cause the injuries. Two special questions were submitted to the jury: (1) Whether the truck was proceeding at a rate-of speed in excess of 15 miles per hour; and, (2) whether the boy tried to climb on the stirrup of the trailer. Both were answered in the negative. The jury rendered a verdict in favor of plaintiff. A number of questions are involved on the appeal. Plaintiff’s witness was asked: “What would be the effect of a driver pulling his car to the left on an icy street where it is crowned toward the center, as to what would happen to the rear of the car or trailer that was attached to it?” It was shown that the witness had never driven a trailer truck, and in excluding the question, the court stated: “I will sustain the objection. It is a matter I think that counsel and the jury and everyone can draw their conclusions. It' is more or less a physical fact, but I don’t think we are entitled to ask his opinion. ’ ’ The remarks were left unchallenged. The court did not state what the conclusions would be. There was no reversible error under the circumstances. One J. W. Barker testified on behalf of defendant. He claimed that he was an eyewitness of the accident, and that it was caused by the boy’s falling in his attempt to climb up on the trailer. Barker was asked on direct examination whether he had ever made a different statement. Notwithstanding objections by plaintiff, he was permitted to testify how he had been interviewed by an investigator representing plaintiff’s attorneys. He accompanied the investigator to a blind pig and was prevailed upon to visit the office of plaintiff’s attorneys and to sign and swear to a written statement which belies the testimony given by him. The affidavit was sworn to before one of the attorneys of record in the case acting as a notary. On cross-examination, the witness was interrogated as to the contents of the statement, which was introduced. Section 13603, 3 Comp. Laws 1929, expressly forbids the administering of oaths by attorneys and counsellors in cases in which they may be professionally engaged. This section applies to affidavits as well as acknowledgments. Smalley v. Bodinus, 120 Mich. 363 (77 Am. St. Rep. 602). The court, in admitting the statement for impeachment purposes, stated that it made no difference whether it was sworn to or not, as the notarization was immaterial. Without in any way approving of the notarization of a statement before an interested attorney acting as notary, we find there is no impropriety in reading a statement to the jury provided the notarization or acknowledgment is omitted. Inasmuch as defendant on the direct examination of its witness brought out the facts in regard to the entire document, there was no error in admitting it with the notarization. Error is also claimed because plaintiff testified as to treatment for previous injuries. Defendant partly relied on its claim that plaintiff fell while attempting to climb up on the trailer. In order to do so, it would have been necessary for the boy to take hold of the handle of the door, which was beyond his reach, or grasp tightly some other part of the trailer. It was shown that the boy’s wrists had been but recently broken, and his arms had been in casts and were left in a weakened condition, and that, therefore, it would have been impossible for him, on account of his physical condition, to grasp hold of any part of the trailer so as to assist him in climbing up on the stirrup. We do not believe there was any error in the admission of the testimony for the purpose for which it was introduced. See McKenzie v. Vandecar, 105 Mich. 232; Whittemore v. Walter, 193 Mich. 365, 373. Error is further claimed because plaintiff was permitted to recall two of his witnesses to give additional testimony after he had rested and prior to the introduction of testimony on behalf of defendant. The court stated that it would give defendant an opportunity to call its witnesses if it became necessary. It is discretionary with the court to allow or refuse permission to reopen the case. Corcoran v. City of Detroit, 95 Mich. 84; People v. Traves, 188 Mich. 345; Cornell v. Fidler, 194 Mich. 509. Defendant further claims freedom from negligence because the jury found that it did not exceed the speed limit of 15 miles per hour in the business district. Section 4697, 1 Comp. Laws 1929, permits this rate of speed, subject, however, to the provisions that in any case when such speed will be unsafe, it shall be unlawful, and that one must drive at a careful and prudent speed not greater nor less than is reasonable and proper, having due regard to the traffic, surface, and width of the highway, and to any other conditions then existing. A driver may be negligent in driving at a rate of speed not in excess of the limit fixed by statute. Winchowski v. Dodge, 183 Mich. 303; Bade v. Nies, 239 Mich. 37. Defendant further claims that the mere skidding of the trailer does not constitute negligence. It became a question for the jury to determine whether defendant’s driver drove in a safe manner on a crowned road covered with ice, and also whether he made a sudden turn of the truck so as to cause the trailer to skid and injure plaintiff. It did not require expert testimony to show what is in everyone’s knowledge: that one is apt to slide or skid on a slippery pavement and particularly so when making a sharp turn with a vehicle. The testimony does not show that the skidding was unpreventable. It is within the general or common knowledge of jurors, as well as almost every one else, that unless one moves very cautiously on an icy pavement, he is apt to skid, slide, or fall. While the jurors may not make use of their own private or secret information concerning the matter at issue, they must, in order to act intelligently in the determination of a case, view the evidence presented in the light of their general.knowledge of the field embraced within the scope of the inquiry. Head v. Hargrave, 105 U. S. 45. In Corey v. Hartel, 216 Mich. 675, 681, this court, in the opinion written by Mr. Justice Sharpe, said: “The jury were also instructed that if ‘the unpreventable skidding of the truck or the sleigh or both’ caused the accident, the plaintiff could not recover. This instruction, given without qualification, negatived the force and effect of the statute. * * # The driver could plainly see the condition of the street. He had driven over it several times that day. If he knew, or should have known, that the wheels of the truck were likely to skid, he should have guarded against a collision by stopping or having the truck in that part of the street required by the statute. ’ ’ The facts in the case presented a question for the jury, and the verdict is supported by proper testimony. We have also examined the other claims of error, but do not believe that they require discussion. The judgment for plaintiff is affirmed, with costs. Clark, C. J., and McDonald, Potter, Sharpe, North, Fead, and Wiest, JJ., concurred.
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Per Curiam. In this case a judgment was entered in tbe circuit court for tbe county of Kalkaska in favor of tbe plaintiff on September 24, 1931. Defendant’s attorney mailed in Bay City a preliminary notice of appeal to the county clerk on October 10th. It was received and filed by him on October 14th. He also mailed a copy thereof on the same day to the plaintiff’s attorney, and one addressed to “Circuit Court Stenographer, Cadillac.” This latter notice was not received by the stenographer who reported the case, which was tried in Cadillac, until several days later. Proof of service of these notices was not mailed to the county clerk until November 6th. Plaintiff’s attorney moved in the circuit court to dismiss this appeal. Defendant’s attorney asked that if the motion be denied he be permitted to correct any irregularities in the perfecting of the appeal. It seems to have been conceded that the trial court had jurisdiction to hear the motion to dismiss. He concluded that the court rules had not been complied with, and entered an order on November 12th dismissing the appeal. In an opinion of this court, handed down on December 10, 1931 (Hoffman v. Security Trust Co., 256 Mich. 383), it was held that— “An appeal is perfected when notice of appeal is filed within the required time. * * * The other acts necessary to complete an appeal are not jurisdictional. * * * When the appeal is perfected by seasonable filing of the notice of appeal, the jurisdiction of the appellate court attaches and the trial court has no authority to dismiss the appeal.” It follows that the order dismissing the appeal must be set aside. As it appears that there was reasonable excuse for the nonperformance of the other acts to complete the appeal, we see no reason for the issuance of an order to show cause on defendant’s motion, but hereby direct the trial court to enter such order as may be necessary therefor.
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Clark, C. J. Defendant, a corporation dealing in produce at Detroit,, dip. considerable busines^’in buying produce in.California in 1926. The recordestab lishes, as found by the trial judge in a trial without a jury, that its purchasing agent in California was one G. E. Mathews. On December 13,1926, Mathews bought for defendant of Esposito and Durnil, dealers at Los Angeles, two cars of lettuce at $595 each. On that day, at Los Angeles, Esposito and Durnil drew two sight drafts for $595 each upon defendant at Detroit, payable to plaintiff, the First National Bank of Los Angeles. Across the face of each draft Mathews wrote “Accepted by G. E. Mathews.” The drawers deposited the drafts so accepted with plaintiff bank and received credit on account, which they promptly withdrew by check to the full amount of the account and more. The drafts were presented, refused, and protested. Upon previous purchases from Esposito and Durnil by Mathews for defendant, some 10 or 12 drafts had been drawn in the same manner by and between same parties payable to plaintiff, and had been accepted by Mathews, as in this case, and all of such drafts had been deposited in plaintiff bank and credit given, as here, and they had been duly honored and paid by defendant; this is established by the record. In this suit on the drafts, plaintiff had judgment. Defendant has appealed. Plaintiff holds for value. By its conduct and course of dealing, above related, defendant is estopped to say that it did not accept the drafts in suit, estopped to urge insufficiency in respect of acceptance. 1 Joyce, Defenses to Commercial Paper (2d Ed.), § 158; 2 C. J. p. 463; Pettinger v. Alpena Cedar Co., 175 Mich. 162; Armstrong v. American Exchange Nat’l Bank, 133 U. S. 433 (10 Sup. Ct. 450). Plaintiff, payee in the drafts, took, not as promisee (Sweet v. Swift, 65 Mich. 90), but as purchaser, and, therefore, as against objection urged, is a holder in due course. 8 C. J. p. 469; Note 29 Michigan Law Review, p. 625; Note 36 Yale Law Journal, p. 608; Bronson v. Stetson, 252 Mich. 6. No other question calls for discussion. Affirmed. McDonald, Potter, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred.
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North, J. Under stipulated facts this case presents a single question of law, to wit: As between the purchaser at an execution sale and the purchaser at a chattel mortgage sale covering restaurant equipment (chairs, tables, dishes, stoves, cooking utensils, etc.), which takes legal title; it being conceded that the indebtedness back of the execution was for food supplies furnished the restaurateur (mortgagor), existed at the time the chattel mortgage was given, and exceeded in amount the value of the chattel mortgage property? Determination necessitates construction of the following* statute: “Every mortgage or conveyance intended to operate as a mortgage of the whole or any part of a stock of merchandise or merchandise and fixtures, pertaining to the conducting of said business which shall hereafter be made without notice to the creditors of the mortgagor as herein provided, shall be void as against said creditors. ’ ’ 2 Comp. Laws 1929, § 9548 (note amendment, Act No. 198, Pub. Acts 1931). The statute contains provision for notice to the mortgagor’s creditors. It is admitted that no notice was given, but appellant contends that the statute does not apply to the business of operating a restaurant. The exact question has not heretofore been determined in this court. The statute is a recent enactment, but the terms of the bulk sales law (2 Comp. Laws 1929, § 9545) are so strikingly similar that decisions thereunder and under like statutes of other States are pertinent. Some States having similar statutes have held they do not apply to sales of restaurant properties. Farmers & Drovers Nat. Bank v. Hannaman, 115 Kan. 370 (223 Pac. 478); Gallup v. Rhodes, 207 Mo. App. 692 (230 S. W. 664). In some States the statute-does not include “fixtures,” but covers merchandise only, and decisions seem to be controlled thereby. See Muskogee Wholesale Grocery Co. v. Durant, 49 Okla. 395 (153 Pac. 142), which points out that the Michigan statute covers “fixtures.” In some other jurisdictions where similar acts are held not to cover restaurant fixtures, the legislation is said to be in derogation of common law (Swift & Co. v. Tempelos, 178 N. C. 487 [101 S. E. 8, 7 A. L. R. 1581]), referred to as a “drastic measure” (Johnson v. Kelly, 32 N. D. 116 [155 N. W. 683]), and given strict construction. However, by decisions under the bulk sales law, the courts of this State are committed to a more liberal construction of the legislation with the obvious purpose of rendering it effective in all classes of cases to which it was intended to apply. Its provisions were evidently enacted to protect business from perpetration of frauds. For the accomplishment of that purpose, we have given the act liberal construction. In Watkins v. Angus, 241 Mich. 690, Justice Wiest, speaking for the court, said: “We consider the law remedial and to be given such construction as will effectuate its clear purpose.” See, also, Patmos v. Grand Rapids Dairy Co., 243 Mich. 417. In the case last cited Justice Potter quoted with approval from Plass v. Morgan, 36 Wash. 160 (78 Pac. 784), wherein it was held under the statute then in force in the State of Washington that restaurant business was within legislation of this class. In a later decision the Washington supreme court referring to the Plass Case said: “It is true that a restaurant keeper, when he buys a ton of flour, does not buy it for the purpose of selling the article again in the same condition that it was in when he bought it, as does the ordinary merchant; but he does dispose of the same goods in a changed condition, and it is a business which from necessity calls for constant and continued purchases from wholesale dealers.” Everett Produce Co. v. Smith Bros., 40 Wash. 566 (82 Pac. 905, 2 L. R. A. [N. S.] 331, 111 Am. St. Rep. 979, 5 Ann. Cas. 798). This court has held in an insurance case that the statement in the application for insurance that the building was to be used for stores and a residence was not a misrepresentation notwithstanding the building was occupied in part by a restaurant and bakery. Chief Justice Campbell said: “A ‘restaurant’ has no more defined meaning (than the English word ‘shop’), and is used indiscriminately for all places where refreshments can be had, from the mere eating-house or cookshop to the more common shops or stores, where the chief business is vending articles of consumption and confectionery, and the furnishing of eatables to be consumed on the premises is subordinate.” Richards v. Washington F. & M. Ins. Co., 60 Mich. 420, 426. The items of property covered by the chattel mortgage in the instant case are clearly within the term “fixtures” as defined by our previous decisions. Patmos v. Grand Rapids Dairy Co., supra. A review of the conflicting authorities found in other jurisdictions would not be of material assistance. It is a matter of common knowledge that, in the conduct of the restaurant business, certain items of food, such as butter, milk, cream, and oftentimes bread and pastries, are retailed for consumption by customers upon the premises in' exactly the same form as purchased by the restaurateur for use in his business. Obviously it is a fair interpretation of the statute to give to the one furnishing these items of merchandise to the restaurateur the same protection as though furnished to a retail grocer. Under the policy adopted by this court in construing this type of legislation, it must be held that the restaurant business in the instant case comes within the quoted act. Such is the holding in Sakelos v. Hutchinson Pros., 129 Md. 300 (99 Atl. 357). Appellee’s title as the purchaser at the execution sale is valid as against appellant’s claim asserted under the foreclosure of the chattel mortgage. The decree of the circuit court is affirmed, with costs. Clark, C. J., and McDonald, Potter, Sharpe, Fead, Wiest, and Butzel,' JJ., concurred.
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Clark, C. J. Plaintiff, a corporation, is owner of the lots of Smart Farm Subdivision, Wayne county, except lots sold. Defendants are land contract purchasers of a lot, the use of which, in common with other lots, is restricted of record to a single or double residence. Defendants remodeled the basement under their, dwelling, provided a front entrance, and opened and now conduct a confectionary business therein. This bill was filed to enjoin it. The bill was dismissed. Plaintiff has appealed. The trial judge, in his opinion filed, states that right to enforce restrictions had not been waived, and that they are in force and effect. We agree with him. The restrictions remain beneficial. But he dismissed the bill on the theory “that neither the plaintiff nor adjoining property owners will suffer any consequential damage by reason of the maintenance of the said basement "candy store.” The matter of damages to plaintiff is immaterial. Longton v. Stedman, 182 Mich. 405; Berry on Restrictions, § 413. Defendants admittedly have violated the restrictions, and ought to be enjoined. Reversed, with costs. Plaintiff may have decree. McDonald, Potter, Sharpe, North, Fead, Wiest, and Btjtzel, JJ., concurred.
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Butzel, J. Plaintiff, Otto H. Siewek, doing business as Siewek Tool & Die Company, received from defendant, F. Joseph Lamb Company, a purchase order for several dies that the latter had contracted to furnish the "Willys-Overland Company. The controversy in the present case arises over one large die that was to be used for stamping splash guards for a new model car, which was to'be displayed at the New York automobile show the first week of January, 1927. The order was dated October 21, 1926, and provided that all dies were to be delivered in 30 days, and that defendant was to pay plaintiff $2,000 for this particular die. .Plaintiff claims that its failure to make prompt delivery was due to defendant’s delay in sending completed blue prints, and further, that, when received, they called for changes by providing for steel facings and inserts not shown in the drawings first submitted and on which the price of $2,000 was based. Defendant denies this claim, and asserts that, the completed and more detailed drawings did not materially differ from those first submitted, and that plaintiff trumped up this claim in an attempt to secure more compensation for work for which, through the fault of his estimator, too low a price had been asked. Plaintiff demanded $1,200 for this alleged change, referred to herein as the first, change. In a letter to defendant on November 30, 1926, he stated that it would be impossible to go ahead and manufacture the dies, as the cost of labor and material alone would amount to $3,500. On December 13, 1926, he wrote that he was holding np the work on the die on account of an engineering change that affected the construction: Again, on the 18th of the same month, in answer to a threat by defendant that it would take the work away from plaintiff, the latter wrote that he had proceeded with the job and would complete the same as soon as possible and that there would be no delay, but he again demanded more pay for the die. The testimony indicates that the work was at no time stopped. On December 20, 1926, defendant replied to plaintiff and stated: “But we will in no manner permit you to revise the former quotation of $2,000 on this particular die on account of any changes, but we have decided to allow you the $1,200 asked for in your letter of November 30, 1926, providing you will execute the order without further delay and will turn us out first-class work.” The parties agree that one change was ordered after work had been started. Plaintiff claims that this was a second change, while defendant contends that it was the first and only one. Defendant asked that the die be changed so as to provide for lugs or ears at the end of the stampings. Plaintiff offered to do this on a time and material basis, charging $1.75 per hour for labor and the cost of material, plus a 10 per cent, profit. Defendant in the letter of December 20th also wrote: “Concerning the changes on this die which we mentioned above as permitting you to do on a time and material basis, in case of a dispute as to your charges, we are to appoint one person, you another person, and these two parties in turn are to appoint a third person whose ruling on the proper cost will be final to us both, and the cost of this appraisal is to be paid by you and ourselves jointly, but we do not think we will be obliged to resort to this measure, but you bring up so many different angles from time to time in the handling of this particular order, that we in turn wish to let you know exactly what we will permit you to do and what we will not permit you to do.” Plaintiff claims that, upon his notifying defendant by phone that he refused to make the change and then submit to arbitration to determine the amount of his compensation, defendant withdrew the arbitration condition and accepted plaintiff’s offer as originally made. Defendant sent a number of its men to plaintiff’s factory to assist in the making of the die. Plaintiff claims that they supervised the work and were not 'hired by him. "When the die was finally shipped, the Willys-Overland Company found it defective, and charged defendant the sum of $307.19 for repairing it. Plaintiff claimed the sum of $2,000 for the die, $1,200 for the first change, and $1,159 for the second change. Upon defendant’s refusal to pay, plaintiff brought suit. He declared on the common counts, and in his bill of particulars set forth the three items, and interest on the aggregate amount. Defendant admitted owing the sum of $2,000 for the die, but denied plaintiff’s right of recovery on the common counts without making a showing of the reasonable value of the work and materials; it further denied owing the $1,200 for the “first” change; claimed that arbitration was a condition precedent to a suit for the “second” change, and also claimed as offsets $307.19 for defective work and $458.93 for the labor defendant furnished in sending its men to supervise and assist in the manufacture of the die. The jury rendered a verdict of $4,985.67 in plaintiff’s favor. This was almost $200 less than the amount, with, interest, demanded by plaintiff. We shall take up seriatim defendant’s claims of error. The declaration on the common counts was sufficient for recovery of the amounts claimed. If the contract was fully completed and the price earned, the common counts were proper, and each contract in its entirety could be introduced as proof. Mc-Graw v. Sturgeon, 29 Mich. 426; Nicol v. Fitch, 115 Mich. 15 (69 Am. St. Rep. 542); Sharrar v. Nestle, 222 Mich. 538. If there was a first change, as plaintiff claims, he would be entitled to the amount agreed upon for such change. The trial judge, in his charge, however, introduced another element into the case, and stated that, even if there had been no change, plaintiff would lie entitled to recover the $1,200 if he expedited the whole job and did it in a workmanlike manner. The record is bare of any testimony showing that the work was expedited. Under the original contract plaintiff was bound to deliver dies made in a workmanlike manner within 30 days. While we are mindful that on November 30th plaintiff wrote to defendant that it would be impossible to go ahead with the die, as the labor and material alone ran over $3,500, the record strongly negatives any suggestion that the work was stopped at any time before delivery. Had plaintiff stopped the work, and notified defendant then so as to effect a mutual rescission of the old contract and the making of a new one in its place, plaintiff might have recovered on the theory advanced in the judge’s charge. Moore v. Detroit Locomotive Works, 14 Mich. 266, 272; Scanlon v. Northwood, 147 Mich. 139. There was no such rescission, express or implied, and there was no consideration for paying plaintiff $1,200 for what he was already bound to do. The judge also prop erly charged that, if the first changes were made and defendant agreed to pay $1,200 for them, plaintiff might recover. However, it is impossible to tell on which theory the jury found for plaintiff on the $1,200 charge, and we are constrained to find error in the charge relating to this item. We shall discuss other questions that may arise again on a new.trial. Defendant further claims that the court erred in not holding that plaintiff was precluded from bringing suit for the “second” change until after arbitration. Assuming only for the purpose of discussion that plaintiff agreed to arbitrate, such agreement would not act as a bar to his suit. There being no provision for statutory arbitration, defendant has failed to sustain the burden of showing that the agreement came within one of the exceptions to the general rule that an arbitration agreement is not a bar to action. These exceptions are: (a) Where the contract makes arbitration a condition precedent, express or implied, to bringing suit. (b) Where the contract is one for construction, paving, or installation, as hereinafter stated and qualified. A similar question arose in Hamilton v. Home Ins. Co., 137 U. S. 370, 385 (11 Sup. Ct. 133), wherein the court quotes with approval from Dawson v. Fitzgerald, L. R. 1 Exch. Div. 257, 260, as follows: “ ‘There are two cases where such a plea as the present is successful: First, where the action can only be brought for the sum named by the arbitrator; secondly, where it is agreed that no action shall be brought till there has been an arbitration, or that arbitration shall be a condition precedent to the right of action. In all other cases where there is, first, a covenant to pay, and secondly, a covenant to refer, the covenants are distinct and collateral, and the plaintiff may sne on the first, leaving the. defendant * * * to bring an action for not referring.’ ” Exception (b) is stated in Sturges on Commercial Arbitrations and Awards, at p. 63, as follows: “Provisions in construction contracts, paving contracts and installation contracts wherein an architect, engineer, or other person who is named or to be selected, is charged with interpreting plans and specifications, or with measuring, computing, estimating and certifying quality or quantity of workmanship and materials in order to fix the compensation of the contractor, and the allowances to the owner for ‘deductions,’ and for damages for default or defective performance by the contractor, are likewise generally held irrevocable.” Defendant relies on Boots v. Steinberg, 100 Mich. 134, but in that case the contract provided that the price for extras for the construction of a building should be settled by arbitration unless the parties could agree upon their value. Weggner v. Greenstine, 114 Mich. 310, is also not in point, for the contract provided that the value of the work was to be computed by the architect, and, if the parties dissented, arbitration should be resorted to. Even if the contract in the instant case could be deemed the same as one for extras in a building contract, the compensation was fixed by the contract in no uncertain way and it required no arbitration to determine the amount. Error is further claimed because plaintiff was allowed to show from his original books of entry the charge for the time of his men employed to make the second change. The original time cards had been destroyed during the four years that intervened between the time of the work and the trial. Plaintiff’s bookkeeper testified that a labor sheet had been kept on this particular job and that the time of each laborer was taken from the cards of each man who worked on it each day and his card was “O.K.’d” by the foreman. She also testified that she personally could tell the amount of labor and materials that went into the charge. Plaintiff, the subforeman, and one of the men who had worked on the job, also gave corroborative testimony. There was no error in the introduction of the books under the circumstances. Halloran’s National Detective Agency v. Weiden, 238 Mich. 242; Kuennan v. U. S. Fidelity & Guaranty Co., 159 Mich. 122. We need not discuss the other claims of error, which should not arise on a new trial. We find it was proper to add interest from the time that the amounts became due to plaintiff. If plaintiff will file a remittitur of $1,200, together with interest thereon from the date of the charge, within 30 days from the date that this opinion is handed down, the judgment is affirmed. Otherwise, it is reversed and remanded for a new trial. Defendant will recover costs in either event. Clark, C. J., and McDonald, Potter, Sharpe, North, Fead, and Wiest, JJ., concurred.
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Clark, C. J. Plaintiffs were contract purchasers from William B. Thompson of premises on Michigan avenue in Detroit. On December 22, 1927, they sent a letter to defendant Frischlcorn Real Estate Company, a corporation, offering to sell the premises for $57,500, $12,000 down, remainder in monthly instalments with interest, reciting that there was then unpaid on the contract approximately $27,000, payable in monthly instalments with interest, and quoting: “This offer is subject to your acceptance upon the payment of $1,000 as a deposit on or before 12 o’clock noon, December 24, 1927.” A commission of three per cent, was also offered. Within the time, and on December 24th, the defendant corporation accepted the offer according to its terms. The acceptance speaks of the offer as an option. Pursuant thereto plaintiffs entered into a land contract with defendant Albert F. Wall as purchaser. He was ostensible purchaser merely. At the same time, defendant Fred H. Aldrich wanted the property and was to purchase. He lacked funds, but Frischkorn Investment Company, a corporation, not party defendant, owed Aldrich nearly $60,000 in another real estate deal, but which was not due. That Aldrich might have funds, the investment company agreed to pay him the $60,000, less a discount of $3,000, $2,500 of which Aldrich was to stand and $500 of which, was to be made up by surrender to the investment company by the agent of the Frischkorn Real Estate Company, who had brought about the sale by plaintiffs to Wall, of that much of his commission. It is undisputed that the agent did so surrender $500 of his commission. Wall assigned to Aldrich; the consideration, according to all testimony, including that of Aldrich, was $57,500, the same as in the contract from plaintiffs to Wall. The documentary evidence respecting the assignment to Aldrich is that consideration was $60,000. The money to pay plaintiffs on contract to Wall was provided by the investment company. ■ It was Aldrich’s money. Plaintiffs were largely delinquent in contract payments to Thompson. Aldrich was slightly delinquent in contract payments to plaintiffs. Plaintiffs sued Wall' and Aldrich and garnisheed Aldrich’s bank account. This made trouble. Defendants George M. Frischkorn and Maurine J. Frischkorn purchased Thompson’s interest and gave notice of forfeiture to plaintiffs, and brought summary proceedings. Thereupon plaintiffs filed this bill to enjoin proceedings at law, and to be relieved of forfeiture, and for accounting, and other relief. Defendants Frischkorn answered and by cross-bill sought foreclosure. Defendant Aldrich answered and sought, as assignee, rescission of the contract with plaintiffs and with Wall. Answer was also filed by Frischkorn Real Estate Company. Foreclosure to defendants Frischkorn was decreed, with reasonable opportunity to plaintiffs and to Aldrich and to Wall to pay or to redeem, and with foreclosure against Wall and Aldrich in case plaintiffs paid up their contract with the Frisch korns, and with right in Wall and Aldrich to pay or redeem. Plaintiffs have appealed, and their contention is that Frischkorn Real Estate Company, as their agent, made a secret profit on the sale of $3,000, for which it should account, and, for tins reason, they urge the personal defendants Frischkorn ought not to forfeit or to demand possession. Defendants argue the letter first quoted.from is an option, and that,' therefore, upon its acceptance and fulfillment according to its terms, it is immaterial to plaintiffs what profit was thereafter made or who made it. It may he doubted that there was an option, in view of the provision for a commission, and the further fact that parties seem to have construed the writing as creating an agency (Hanscom v. Blanchard, 117 Me. 501 [105 Atl. 291, 3 A. L. R. 545]), so we do not rest decision on this point. It cannot be said on this record that Frischkorn Real Estate Company made any secret profit on the sale by plaintiffs to Wall, that it got anything but Its agreed commission. The Frischkorn Investment Company, a separate and distinct corporation, made a discount or profit in connection with its dealing with Aldrich, but we cannot hold this to be a profit of the defendant corporation, Frischkorn Real Estate Company. Nor can we hold the investment company to be a mere tool or subsidiary of the real estate company and without distinct corporate entity, as case to support such holding is not made out, and the investment company is not before the court. Old Ben Coal Co. v. Universal Coal Co., 248 Mich. 486. Whether the profit in question was upon the transfer by Wall to Aldrich, as contended by plaintiffs, or upon discount of the investment company’s obligation to Aldrich, as urged by defendants, is a question of fact on this record, upon which plaintiffs had burden of proof. The decision of the trial judge is against plaintiffs. He had opportunity to see and hear the witnesses. We decline to disturb his holding. Whether plaintiffs may use matter between themselves and the real estate company to prevent forfeiture and foreclosure by defendants Frischkorn need not be discussed. Affirmed. Costs to defendants. McDonald, Potter, Sharpe, North, Wiest, and Butzel, JJ., concurred. - Fead, J., did not sit.
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Wiest, J. This is an action in ejectment, brougfit by Earle A. Gardner, son ,and sole heir at law of Henry M. Gardner, deceased, and involves title to the west- 46% feet of lot 5, block 170, city of Lansing. In this opinion we speak of Leonard B. Gardner as defendant. Trial by jury resulted in a verdict for plaintiff. Notwithstanding the verdict, judgment was entered for defendant. At the close of all the proofs plaintiff moved for a directed verdict in his favor. This was denied. Defendant also moved for a directed verdict in his favor, and, while expressing doubt, the court refused to direct a verdict, but reserved the right to enter judgment notwithstanding the verdict. The issue turned upon adverse possession by defendant. The defendant, Leonard B. Gardner, and Henry M. Gardner,. now deceased, were brothers. Henry died July 26, 1916, and Mary Gardner, his wife, died in the spring of 1920. In July, 1893, Henry M. Gardner became the owner, of record, of the premises in suit. Defendant has occupied the premises since 1893, and from that time the property has been assessed to him and he has paid the taxes thereon. Defendant remodeled an old house on the premises, and later it was removed by him, and- in 1912 he built a house on the south part of the property, and, in 1917, an expensive brick residence, which he has at all times occupied. Henry M. Gardner never occupied the premises or exercised any act of ownership thereover, and, at the time of the deed to him, he was living on the adjoining property of the defendant, and so continued until he was elected judge of probate and moved to Mason in the fall of 1903, where he lived until his death in July, 1916. Relations between Henry M. and Leonard B. Gardner were always friendly. At the trial it was conceded that Henry M. Gardner held the paper title, and the burden was on defendant to establish title by adverse possession. Plaintiff relied upon the presumption that Leonard B. Gardner’s entry was permissive and continued as such unless repudiated by notice of holding' in hostility thereto, and contends that this presumption may be weighed against credible evidence to the eon trary. We have repeatedly held that such a presumption compels defendant to go forward with his proofs, but, upon submission of credible evidence, the presumption may not be weighed against such proofs. Matteson v. Morris, 40 Mich. 52; Gillett v. Michigan United Traction Co., 205 Mich. 410; Union Trust Co. v. American Commercial Car Co., 219 Mich. 557; Depue v. Schwarz, 222 Mich. 308; Corbett v. Williams, 248 Mich. 541; Wehling v. Linder, 248 Mich. 241; Noonan v. Volek, 246 Mich. 377. Defendant’s possession and acts of ownership were not questioned by any evidence. The testimony opposed to the mentioned presumption was clear, positive, and uncontradicted, and it was the duty of the trial judge to decide in accord with such evidence. Plaintiff contends that actual notice of hostile holding by defendant was necessary. Actual notice means no more than that the owner had actual knowledge of the hostile claim. Possession so open, visible, and notorious as established in this case raised the presumption that the owner knew his rights were invaded intentionally and with purpose to assert claim of title. See Doctor v. Turner, 251 Mich. 175. The record is barren of exercise of rights, with reference to the property, by Henry M. Gardner .at any time, and the record is replete with evidence that Leonard B. Gardner at all times notoriously employed the property for his own purposes, paid the taxes, erected expensive buildings thereQn, occupied one as a residence and rented the other. It is incredible that Henry M. Gardner was not aware of the open and visible evidence of asserted ownership exercised by defendant. If possession was permissive in the first instance, it soon changed to repudiation of leave to that of asserted right and hostility, and so continued by use and occupation and im provements wholly incompatible with recognition of ownership in Henry. The law contemplates that owners of real estate are sufficiently interested therein to keep informed of possession and use thereof by others in the nature of a claim- of right which might ripen into title by prescription if undisturbed. . The statute limiting time for bringing ejectment, 3 Comp. Laws 1929, § 13964, is one of repose. If one sleeps on his rights for 15 years as against an intruder of his real estate, whether such at time of entry, or after permissive entry by known repudiation of leave and assertion of right, the title is lost to the sleeper and vested in the usurper. It was said in Holtzman v. Douglas, 168 U. S. 278 (18 Sup. Ct. 65): “Payment of the taxes, as described in the above statement of facts (1868-1893), is very important and strong evidence of a claim of title; and the failure of the plaintiffs’ predecessors to make any claim to the lot or to pay the taxes themselves, is some evidence of an abandonment of any right in or claim ' to the property. In Ewing v. Burnet, 11 Pet. (36 U. S.) 41, it was held by this court that the payment of taxes on land for twenty-four successive years by the party in possession was powerful evidence of the claim of right to the whole lot upon which the taxes were' paid. The same principle is held in Fletcher v. Fuller, 120 U. S. 534, 552 (7 Sup. Ct. 667). It is some evidence that the possession was under a claim of right and was.adverse.” • Plaintiff claimed that defendant, in 1930, wanted a. loan on the property and forged a deed, purporting!; to have been executed by Heiíry -M. Gardner' and wife to himself. Proof in support of such claim was excluded, and plaintiff contends that it had a bearing upon the question of adverse possession. At that time defendant had title by adverse possession, and the testimony was properly excluded. In Ripley v. Miller, 165 Mich. 47, 51 (Ann. Cas. 1912c, 952), it was stated: “The doctrine is well established that one in possession of land, claiming to own it, may buy in outstanding claims of title without abandoning or impairing his own, or acknowledging the validity of the title bought.” See, also, Chapin v. Hunt, 40 Mich. 595. If the essential elements of adverse possession are clearly established and title fixed thereby vested, acts in an effort to make the title appear better of record are inconsequential. The rule was well stated by Mr. Justice Sharpe in Munroe v. Railway Co., 226 Mich. 158, 164: “We do not think that an attempt by one who has acquired title by adverse possession to secure a deed of the land for the purpose of avoiding litigation in the future as to the validity of the title thus acquired, or to make his title one of record, should, in the absence of other proof, be treated as a recognition of the superior title of the owner or an admission that the possession enjoyed by him was permissive only.” It was admitted at the trial that defendant had no deed. The evidence is clear, credible, and undisputed that defendant was openly in possession of this property for upward of 35 years, under claim of title, and that his acts of ownership thereover were such that Henry M. Gardner knew of such claim of title and acquiesced therein. Under the' evidence, the circuit judge was clearly right, notwithstanding the verdict of the jury, in entering judgment for defendant. The judgment is affirmed, with costs to defendant. Clark, C. J., and McDonald, Potter, Sharpe, North, Pead, and Butzel, JJ., concurred.
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Nelson Sharpe, C. J. While working for the defendant in one of its coal mines, on April 29, 1930, the plaintiff sustained an injury to his left eye. The defendant filed a report of compensable accident with the department of labor and industry on June 14, 1930, and at the same time filed an agreement with the plaintiff to pay him compensation at the rate of $18 per week during the disability. This agreement was approved by • the department on June 19th, following. On May 14, 1931, the defendant filed a petition to stop compensation alleging therein that plaintiff had fully recovered from his injury. Plaintiff filed an answer thereto in which he stated that the injury had resulted in the loss of the sight of his left eye, and that he was “entitled to compensation at the maximum rate during the statutory period from the date established in the loss of the use of the said left eye,” and prayed for an order for further compensation therefor. On June 10, 1931, a supplemental agreement was entered into between them, in which it was stated that the sight of the left eye was lost as of May 6, 1930, and that compensation should be paid at the rate above stated during disability of 101 weeks from April 29, 1930. The agreement was filed in the department on June 11, 1931, and an order was entered approving it on July 2, 1931. On May 9, 1932, a receipt was filed showing compensation to have been paid to April 5, 1932. On November 9, 1933, the plaintiff filed a petition for further compensation. He admitted therein that he had entered into the agreement above referred to and had been paid compensation pursuant thereto, but alleged “that no final settlement receipt was filed in said cause, nor was a final report of said accident ever filed with said department in said cause.” He further alleged that he did not suffer the loss of the sight of his eye within the meaning of the workmen’s compensation act until May 14, 1931, and that no determination that he had had been made within the meaning of 2 Comp. Laws 1929, § 8426, until May 14, 1931. He therefore claimed that he was entitled to compensation from April 29, 1930, until May 14, 1931, for total disability, and to further compensation of 100 weeks thereafter for partial disability resulting from the loss of Ms eye. The defendant in its answer thereto set forth the agreement entered into and the payment made pursuant thereto and denied any further liability on account of such injury. A hearing was had and proofs taken before a deputy commissioner, who found that the petition should be denied. A hearing on review thereof was held by the commission and the order of the deputy set aside and one entered granting plaintiff total disability from April 29, 1930, until November 10, 1930, “with compensation from November 11, 1930, in addition thereto for the specific loss of an eye of 100 weeks at $18 per week.” Section five of part three of the workmen’s compensation law (2 Comp. Laws 1929, § 8444) reads as follows: “If the employer, or the-insurance company carrying such risk, or commissioner of insurance, as the case may be, and the injured employee reach an agreement in regard to compensation under this act, a memorandum of such agreement shall be filed with the industrial accident board, and, if approved by it, shall be deemed final and binding upon the parties thereto. Such agreements shall be approved by said board only when the terms conform to the provisions of this act.” The functions of the industrial accident board are now vested in the department of labor and industry' (2 Comp. Laws 1929, § 8312). The serious question presented is whether the department had jurisdiction to set aside the settlement agreement which it had approved and make the order appealed from. The agreement in all respects conformed to the provisions of the act. In Estate of Beckwith v. Spooner, 183 Mich. 323, 329 (Ann. Cas. 1916E, 886), it was said that such an agree ment when “filed with, and approved by the board, is a substitute for, and, under the statute, the legal equivalent of, an arbitral award.” See, also, Wilkes v. Railway Co., 234 Mich. 629. "When fraud or mistake is claimed, it may be set aside in a suit in chancery. Smith v. Port Huron Gas & Electric Co., 222 Mich. 350. In Southern Surety Co. v. Curtis, 240 Mich. 566, the plaintiff first sought relief from a compensation agreement entered into between an employer, for whom it was acting as a surety, and an employee, before the commission and afterwards by a suit in court. This court said: “Plaintiff’s mistaken attempt to be relieved of the agreement by seeking a rehearing under the compensation act is not important. The commission was without authority in that regard. Levanen v. Seneca Copper Corp., 227 Mich. 592; Jones v. St. Joseph Iron Works, 212 Mich. 174. The remedy is a bill in equity. Smith v. Port Huron Gas & Electric Co., 217 Mich. 519 (21 N. C. C. A. 401).” By its approval of the settlement agreement on July 2, 1931, the department determined that the plaintiff lost the sight of his eye on May 6,1930, and was entitled to compensation therefor for 100 weeks thereafter, and it had no jurisdiction to entertain the petition of plaintiff for additional compensation based on his claim that he did not, in fact, lose the sight of his eye until May 14, 1931. Burley v. Central Paper Co., 221 Mich. 595. The award of the commission is reversed and set aside, and plaintiff’s petition dismissed. Potter, North, Fead, Wiest, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred.
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Potter, J. Plaintiff, the owner of all indebtedness once owing Muskegon Citizens Loan & Investment Company, sued defendant on a written guaranty of the credit of Claude Wolfis. Prom a judgment for plaintiff, defendant appeals. Claude Wolfis was associated with one Joe Schneider in the East End Auto Market, a copartnership, from July to about the middle of September, 1926, at which time Wolfis retired; and both he and Schneider notified the Muskegon Citizens Loan & Investment Company of his retirement from the firm. At the time Claude Wolfis engaged in business, defendant signed a written guaranty of his credit to the extent of $1,500 and delivered the same to the Muskegon Citizens Loan & Investment Company. The East End Auto Market sold motor vehicles and took title-retaining contracts—conditional sales notes—therefor, and, possibly, in some cases, ordinary promissory notes. These conditional sales contracts and notes were indorsed by it and discounted by the Muskegon Citizens Loan & Investment Company. After Claude Wolfis retired from the partnership, Schneider continued in the business for some time; continued to sell motor vehicles, accept conditional sales contracts and notes of customers, indorse these contracts and notes, and discount them at the Muskegon Citizens Loan & Investment Company. The method of doing business by Schneider was for the Muskegon Citizens Loan & Investment Company to give him credit on open account for the proceeds of these conditional sales contracts and notes discounted, and he then drew checks to take up currently maturing obligations. All of the notes and contracts upon which Claude Wolfis was originally liable as an indorser were thus paid by check and the notes delivered up. The average date of all of the conditional sales contracts and notes in the hands of plaintiff, assignee of Muskegon Citizens Loan & Investment Company, is more than a year after Claude Wolfis retired from the business of the East End Auto Market. The liability of Claude Wolfis upon the conditional sales contracts and notes indorsed by the copartnership while he was a partner did not cease upon his retiral from the partnership but continued until he was legally discharged therefrom. The conditional sales contracts and promissory notes indorsed and discounted by Schneider were not substitutions or extensions. The record shows such contracts and notes were indorsed and discounted and the proceeds credited to him on open account. Schneider then drew his checks against that account for the amount due on the notes upon which Claude Wolfis was liable, and these checks were paid, cancelled and returned, and the notes paid thereby were paid, cancelled and returned. This constituted payment of the notes. Subsequently, Schneider failed, owing around $600 or $700 to the Muskegon Citizens Loan & Investment Company; and it is sought to extend defendant’s guaranty of the credit of Claude Wolfis to cover the ultimate liability after failure of Schneider. It may not be so extended. Plaintiff has the conditional sales contracts and notes discounted by Schneider, five in number, in its possession. It seeks to sustain a judgment on the guaranty against defendant for the full amount due from Schneider, and keep these conditional sales contracts and notes; and, if it were able to collect on this, judgment and upon the conditional sales contracts and notes, it might be able to collect the indebtedness twice. This it cannot do. 48 C. J. p. 632; Joslin v. Noret, 224 Mich. 240. Judgment reversed, with costs. New trial ordered. Nelson Sharpe, C. J., and North, Pead, Wiest, Btjtzel, Bushnell and Edward M. Sharpe, JJ., concurred.
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Wirst, J. Plaintiff was a guest riding with defendant in his automobile when the left front tire blew out, causing defendant to lose control of the car and resulting in a collision with an approaching truck and injuries to plaintiff. Plaintiff brought the suit at bar under the so-called guest act, 1 Comp. Laws 1929, § 4648, to recover damages, alleging that defendant was guilty of gross negligence or wilful and wanton misconduct in driving the car with knowledge of the worn and weakened condition of the tire. The court directed a verdict of not guilty upon the opening statement of counsel for plaintiff. Plaintiff reviews by appeal. We accept the statement that the tire was worn through the tread and a large part of the fabric lining and defendant was aware of the fact. With such condition of the tire was it wilful and wanton misconduct toward plaintiff, as his guest, to drive the car for a considerable distance on a concrete pavement? Defendant, if guilty of ordinary negligence only, cannot be held liable under the guest act. A guest in an automobile accepts the means of conveyance in the condition it is maintained by the owner, and cannot predicate an action for gross negligence or wilful and wanton misconduct upon failure of the owner to inspect the car and keep it in such repair as to avoid the possibility of an accident. So, in this case, defendant owed no duty to plaintiff as his guest to keep the car tire in such a condition of repair as to prevent a blowout or to replace the worn tire by another. The owner of a car, under circumstances such as in the case at bar, is only required to provide his guest with the conveyance he provides for himself. We are not here concerned with the question of whether a different rule applies when there is a different relation between passenger and owner. It may be ordinary negligence for an automobile owner to drive a car with worn or defective tires, as it was in former days for a farmer to drive a wagon with a wheel likely to “dish,” but such is not the degree of negligence bringing a cause of action to a guest who may be injured while riding in such a faulty conveyance. There is no wilful and wanton misconduct on the part of an owner in driving a car needing repair and there is no different rule when he extends the aid of his conveyance gratuitously to another. Any different rule would permit a hitchhiker to mulct an owner for not keeping his car in repair. Defendant, for his own purposes, had a right to get all the use he could out of the tire, and his own purposes were not curtailed nor liability entailed by reason of plaintiff becoming his guest. Counsel for plaintiff did not state a cause of action under the guest act and there was no error in directing the verdict. The judgment is affirmed, with costs to defendant. Nelson Sharpe, C. J., and Potter, North, Fead, Btjtzel, Bushnell, and Edward M. Sharpe, JJ., concurred.
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Nelson Sharpe, C. J. On August 1,1923, a decree of divorce was granted to the plaintiff, then a resident of the city of Kalamazoo, from the defendant, who was then living in Switzerland, on the ground of extreme cruelty. She was given the custody of their son and daughter, who were then living with her. The decree provided that the plaintiff should pay to her the sum of $80 per month for her support and maintenance and $40 per month for the support of each of the children until they arrived at the age of 21 years respectively. It appears that these provisions were inserted in the decree in conformity with a property settlement made between the parties. On October 12, 1933, the plaintiff filed a petition to modify the decree in respect to the payments to be made by him. He averred therein that he had kept up such payments until that time, but was financially unable to longer do so, and prayed for a reduction thereof. The defendant filed an answer thereto, denying that plaintiff was entitled to the relief sought. A hearing was had and proofs submitted, after which the trial court entered a decree modifying the former one by providing that the plaintiff from and after December 1, 1933, pay to the defendant the sum of $75 per month up to and including. November 17, 1934, and thereafter $80 per month. It also provided that after December 1, 1933, the payment f,or the support of the daughter be reduced to the sum of $10 per month. She had then reached the age of 16 years. It appeared that the son in the meantime had reached the age of 21 years and had returned to the home of his father, who was then living in Bloomfield, Indiana. The defendant has appealed therefrom. The plaintiff is now 50 years of age, and has remarried. The defendant is about the same age. He testified that his income in 1923 was about $400 per month, and that, owing to the depression, it is now about $200 per month; that his present wife has some income of her own, and uses it in their support. When the son returned to this country he. had no knowledge of the English language, and the plaintiff is supporting him at the University of Michigan, where he is learning our language apd fitting himself for earning a livelihood. His expense incident thereto is about $800 per year. In vacation time the son works on a farm of one of the relatives of plaintiff’s wife and earns his living in that way. Plaintiff is carrying a considerable amount of life insurance, a part of which will inure to the benefit of his former wife by his will. By stipulation an affidavit of the defendant was submitted in evidence. She stated therein that she was suffering from a nervous disease and unable to work; that in 1923 the American dollar was worth 5.72 Swiss francs, and that on March 16, 1934, when the affidavit was made, it was worth but 3.30 francs; that the cost of living has increased since 1923; that she has had to accept charity from relatives and friends in order to maintain a home for herself and her daughter, and that her daughter had been compelled to quit the musical school she had been attending because she could no longer pay the fees therefor. , The plaintiff was examined at length as to his financial condition. When the decree was granted, he was the manager of a prosperous business in the city of Kalamazoo. He now has charge of a business in Bloomfield which is not at all prosperous. The money to be paid to the defendant, as fixed in their agreement and incorporated into the decree, was based upon his then ability to pay. Counsel for the defendant do not question the power of the court to modify the decree. It is provided for in 3 Comp. Laws 1929, § 12748, and may be exercised “to comport with change in circumstances of the parties.” Eddy v. Eddy, 264 Mich. 328, and cases cited therein. The change as affecting the defendant personally terminated on November 17th of this year. Thereafter she will receive the monthly allowance given her in the decree. The loss to her in this respect has been more than made up to her by the allowance of the fee to her attorney on the hearing of the petition. The more serious question is the reduction in the amount allowed for the maintenance of her daughter from $40 to $10 per month. While the defendant is not in good health, it appears that the daughter is. It is unfortunate if she will not be permitted to continue with her musical studies. But, if the net income of the plaintiff at the time of the hearing as disclosed by the record was but $200 per month, it does seem that there was no unfairness in the order modifying the decree in providing that the defendant was not entitled to more than $90 of it. She selected a foreign country as her place of residence, and the fact that the American dollar has there decreased in value, while to be regretted,' does not under the circumstances entitle her to be recompensed therefor. The decree as modified by the circuit court is affirmed. No costs will be allowed. Potter, North, Fead, Wiest, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred.
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Bushnell, J. This is an action by plaintiff to recover a bonus under a contract of employment. The questions involved are: 1. Did defendants promise to pay plaintiff a bonus on his sales if he were discharged without cause before the end of the fiscal year? 2. Did defendants promise to employ plaintiff until the end of their fiscal year? The trial court directed a verdict of no cause of action, and filed a written opinion denying a motion for a new trial. The first question must be answered in the negative. Plaintiff was employed as a district sales manager at an annual salary and bonus, and worked from August 27,1931, until his discharge on June 30, 1932. The bonus terms were not disclosed until October 27, 1931, and are shown in a memorandum addressed to and signed by plaintiff, to which is attached a quota of sales for October to September of the fiscal year 1931-1932. When plaintiff entered defendant’s employment he filled out and signed a form entitled “confidential executive schedule,” a part of which appears in the record and seems to contain only information supplied by plaintiff as to his past history, except that just above the “signature of applicant” it reads: “Note: All persons appointed to positions in this organization are on trial, and if at any time it is found that the employee is not adapted to the work to which they have been assigned, or not likely to prove useful, the engagement may be terminated without further reason, and without prejudice, to the employee’s reputation, the corporation’s obligation ending with the payment of salary through the last day of employment.” The bonus memorandum dated October 30, 1931, which is signed by both parties and begins with “for the year ending September 30, 1932, your bonus will be on the following basis, and be paid to you in addition to your salary, ’ ’ also provides: ‘ ‘ Should your connection with this company be terminated by either party prior to September 30, 1932, the payment of any bonus is entirely at the discretion of this company. ’ ’ It is difficult for plaintiff to extricate himself from the conditions of employment which he has voluntarily assumed, for even though the forfeiture provisions seem harsh, we can only interpret the contract which the parties have made. Fontius Shoe Co. v. Lamberton, 78 Col. 250 (241 Pac. 542), a bonus case. Courts will construe a written contract according to the intention therein expressed, when that intention is clear on its face. Baker v. Baird, 79 Mich. 255. Where a contract is not ambiguous, it must be construed according to the ordinary meaning of the words used. Rosen v. Rosen, 159 Mich. 72 (134 Am. St. Rep. 712). See, also, Mills v. Spencer, 3 Mich. 127; Piano Manfg. Co. v. Ellis, 68 Mich. 101, and Cutler v. Spens, 191 Mich. 603. As to the second question, plaintiff claims that defendants ’ promise to employ him until the end of the fiscal year is based on a letter from the company’s sales manager dated June 6,1932, which is described by plaintiff as “further and additional written memoranda of the terms of his said contract of employment.” This letter, after comments and criticisms on various dealers’ sales, concludes with the following: “Through May, shipments in your territory are approximately $148,000 against $199,000 for the year, so that you have got $51,000 to go before you start making some real bonus money. We are just as anxious as you are to see you make the maximum amount of bonus and we hope the next four months will be finished in a cloud of dust. ’ ’ Plaintiff claims this is a promise of employment for the balance of the fiscal year; that the use of the word “hope” is equivalent to a command, and it necessarily implied that plaintiff would be given a chance to carry out the assignment. The trial court’s observation on this was: “I do not think that any such construction is possible. This letter must be held to be no more than an expression of the defendant’s hope that the relations between the parties will be satisfactory in the future. ’ ’ To this we add that it is no more than the ordinary message of an employer to an employee, calculated to stimulate him to renewed effort. See Alford v. Cook, 107 N. Y. Supp. 710. The rule is stated by Mr. Justice Cooley in McKenzie v. Sykes, 47 Mich. 294: “It is for the court to interpret the written contracts of parties; for when they have assented to definite terms and stipulations and incorporated them in formal documents, the meaning of these, it is supposed, can always be discovered on inspection; nothing which is within the purview of the contract is left in doubt and there is of course nothing to submit to the jury. ’ ’ In Wagner v. Egleston, 49 Mich. 218, the learned justice also said: “We concede that when a contract is to be made out on oral evidence the jury must pass upon it; but writings are to be interpreted by the court. ’ ’ The following bonus and employment cases have been examined: Fontius Shoe Co. v. Lamberton, supra; Gordon v. Northwestern National Life Ins. Co., 113 C. C. A. 339 (193 Fed. 405); Alford v. Cook, supra; Hunter v. Ryan, 109 Cal. App. 736 (293 Pac. 825); Johnson v. Fuller & Johnson Manfg. Co., 183 Wis. 68 (197 N. W. 241); United Shoe Stores Co. v. Dryer, 16 La. App. 605 (135 South. 50); Scott v. J. F. Duthie & Co., 125 Wash. 470 (216 Pac. 853, 28 A. L. R. 328); Roberts v. Mays Mills, 184 N. C. 406 (114 S. E. 530, 28 A. L. R. 338); and the annotations under these last two cases in 28 A. L. R. at pages 331 and 346. In the instant case both of the instruments were signed by the parties, so they must he regarded as that part of the contract reduced to writing and may not be varied by parol evidence. Minor v. Walker, 179 Mich. 645, and Saginaw Milling Co. v. Schram, 186 Mich. 52. We conclude therefore that the second question must also he answered in the negative. The judgment of no cause of action is affirmed, with costs to appellees. Nelson Sharpe, C. J., and Potter, North, Fead, Wiest, Butzel, and Edward M. Sharpe, JJ., concurred.
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Boyles, J. Plaintiff railway company sued the defendant dock and terminal company for demur-rage charges, claiming that the defendant had detained certain railroad cars until demurrage charges had accumulated. The only defense pleaded was that the cause of action was barred because suit was not begun within the 2 years prescribed by the interstate commerce act. The case was submitted on stipulated facts and the trial court gave the plaintiff judgment for $2,941.29 for part of its claim, plus interest. The defendant appeals. The applicable provisions of said áct are as follows : “Sec.' 16. * * * “(3) (a) All actions at law by carriers subject to this chapter for recovery of their charges, or any part thereof, shall be begun within 2 years from the ■time the cause of action accrues, and not after. * * * “(e) The cause of action in respect of a shipment .of property shall, for the purposes of this section, be deemed to accrue upon delivery or tender of delivery thereof by the carrier, and not after.” All of the 70 cars involved were tendered (constructively placed) to the defendant on or before April 29, 1947. They were actually delivered at different times, some before and some after' said date. Suit was started April 29, 1949. The trial court held: “It is, therefore, apparent that the statutory limitation of 2 years begins to run, not upon the release of the car to the carrier, hut upon the delivery or tender of delivery of the shipment to the consignee. “It appears from the reading of the statute that if the shipment is actually delivered, and accepted by the consignee, that the statute begins to run from the date of delivery, however, if the shipment is tendered for delivery but not actually delivered due to the consignee’s failure to accept the same, then the statute begins to run from the date of tender of delivery.” The trial court gave the plaintiff judgment for the cars actually placed (delivered) within 2 years prior to April 29, 1949, and denied recovery of demurrage charges for the cars delivered to the defendant prior to said 2-year period of time. Appellant contends that the cause of action accrued when the cars were tendered (constructively placed) to the defendant by the plaintiff; and that because 2 years had elapsed from such tender of delivery the action is barred. Appellee contends, and the circuit judge found, that the statute fixes the time for the limitation to begin to run in all cases for the recovery of charges at the time of delivery, namely, accepted by the consignee, or, if there is no delivery, then at tender of delivery. In Pennsylvania R. Co. v. Carolina Portland Cement Co. (CCA), 16 F2d 760, the court held that demurrage charges come within the meaning of the words “charges, or any part thereof,” in section 16 (3) (a), and that a cause of action concerning demurrage charges comes within the meaning of the words “in respect of a shipment of property” in section 16(3) (e). In Alton R. Co. v. Tucker (CCA), 138 F2d 796, the court held that the 2-year limitation begins to run at the time of delivery if there is a delivery, but if there is no delivery then the limitation begins to rnn at the time of tender of delivery. Appellant, relying on interstate commerce regulations for computing time for demurrage charges, argues that the cause of action accrues when such charges shall begin, based on “actual or constructive placement” of cars on tracks. In support, counsel quote from Corpus Juris Secundum and conclude that the 2-year limitation for starting suit dates from constructive placement of cars rather than actual delivery. The plain answer is that the 2-year period has been fixed by act of Congress, and it has not been left open to interstate commerce regulations promulgated for the purpose of computing the time for determining demurrage charges. Computing demurrage charges is one thing in that it fixes the amount of the charge and is quite apart from, determining the time within which an action to collect such charges may be commenced, which has been fixed by statute. The trial court correctly applied the law. Affirmed. Dethmers, C. J., and Adams, Butzel, Carr, Bushnell, Sharpe, and Reid, JJ., concurred. 49 USCA, § 16(3) (a) and (e).
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Sharpe, J. Plaintiffs filed a petition in the circuit court for Wayne county for a writ of mandamus to compel the department of public works, building and safety division of the city of Dearborn to issue a building permit to plaintiffs for the erection of an automatic ear wash building at 22643 Ford road in the city of Dearborn, Wayne county, Michigan. Plaintiffs are the owners of the above-described property which consists of 3 lots. The lots front on Ford road, with a combined frontage of 81.4 feet and a depth of 90 feet to a 20-foot alley on the south. Immediately south of the alley is a vacant lot and south of the vacant lot are 4 single-family homes. Plaintiffs filed an application with the department of public works for a permit to construct the proposed building, but were refused inasmuch as it was not a permissible use and as such required the approval of the zoning board of appeals as required by Ordinance No 33, of the city of Dearborn. Upon appeal the zoning board denied the petition, thereupon plaintiffs filed their petition for mandamus. On August 22, 1952, the trial court heard the cause and authorized the issuing of an order granting the writ of mandamus. Upon leave being granted, defendants appeal and urge that it is necessary to obtain the approval of the zoning board for a building permit in order to construct a building for an “automatic car ■wash” and that the zoning board in refusing a permit did not abuse its discretion. The area herein involved is zoned as “Business B.” Section 601 of Ordinance No 33, the zoning ordinance of the city of Dearborn, is entitled “Uses op Property in Business Districts”, and provides in part: “In a business district no lot shall be occupied and no building or structure shall be erected or used except for one or more of the uses permitted in that district, and then only in conformity with such special provisions relating to such use as may be contained herein.” The city ordinance requires in certain cases that uses made of the property must have the approval of the board of appeals: “601.231. A Storage or Servicing Garage, or a Public or Private Stable, or Land Used por Sale or Rental op Used Cars or Trailers, when so arranged and maintained as not adversely to affect the normal development or use of neighboring property, only upon authorization of the board of appeals after public notice and hearing as specified in section 203.8. * * * “601.235. Any Use Comparable in Character to one of the permitted uses, but not specifically mentioned in sections 601.21 or 601.22 when permitted by the board of appeals, as specified in section 203.6.” A service garage is defined by section 324 of Ordinance No 33, and reads as follows: “324. A Service Garage is a space, building or structure designed or used for the repair, refinishing, cleaning, lubrication or other care or servicing of motor vehicles.” In our opinion an automatic car wash is within the definition of a service garage and as such requires the approval of the zoning board of appeals before a building permit can be issued. It is urged by plaintiffs that no showing was made' by defendants before the zoning board of appeals that the proposed use of the property would adversely affect the normal development or use of neighboring property. The principal issue in this case is whether the zoning board of appeals abused its discretion in denying the permit. It is apparent that no testimony was taken when the cause was heard in the circuit court, but the minutes of the meeting of the zoning board of appeals show that a public meeting was held at which time the issue was discussed. There were statements made at this meeting that if the building was erected and operating, traffic would be increased and with cars with motors running would increase the supply of eai’bon monoxide and thus be injurious to health. This Court has said on numerous occasions that to award writs of mandamus to plaintiffs, they must have a clear legal right to performance of the specific duty sought to be compelled, and the defendants must have the clear legal duty to perform such act. See Toan v. McGinn, 271 Mich 28, 34; Rupert v. Van Buren County Clerk, 290 Mich 180, 183; Solo v. City of Detroit, 303 Mich 672, 676; McLeod v. State Board of Canvassers, 304 Mich 120, 125; Huron-Clinton Metropolitan Authority v. Boards of Supervisors of Five Counties, 304 Mich 328, 342; and Kosiba v. Wayne County Board of Auditors, 320 Mich 322, 326. In the case at bar there is no attack on the validity of the ordinance. The attack is centered on the discretion of the zoning board of appeals. Under the record in this case, the zoning board of appeals had some evidence' that the granting of the permit would be inimical to public health and safety. Plaintiffs have not shown that they have a clear legal right to the performance of a specific duty on the part of the zoning board of appeals. Tbe judgment of tbe trial court granting tbe' writ of mandamus is reversed and tbe petition dismissed, witb costs to defendants. Dethmers, C. J., and Adams, Butzel, Carr, Bushnell, Boyles, and Beid, JJ., concurred.
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Reid, J. Plaintiffs, grocery store operators, filed a bill in the Wayne county circuit court for a declaratory decree construing and determining rights under the Michigan pharmacy act, PA 1885, No 134, as amended, and for an injunction restraining the' defendant board (hereinafter referred to as defendant) from applying the pharmacy act against plaintiffs respecting the sale of patent or proprietary medicines or drugs and ordinary domestic or household remedies, under section 18 of the pharmacy act (CL 1948, § 338.418 [Stat Ann § 14.740]), as. explained in the last proviso in CL 1948, § 338.481 (Stat Ann § 14.771). Prom a decree for plaintiffs, defendant appeals. Section 18, CL 1948, § 338.418 (Stat Ann § 14,740)r is as follows: “Nothing in this act shall apply to the practice of a practitioner of medicine, who is not the proprietor of a store for the dispensing or retailing of drugs, medicines and poisons, or who is not in the employ of such proprietor, and shall not prevent practitioners of medicine from supplying their patients with such articles as they may deem proper, or to the sale of Paris green, white hellebore and other poisons for destroying insects, or any substance for use in the arts, or the manufacture and sale of proprietary medicines, or to the sale by merchants of ammonia, bicarbonate of soda, borax, camphor, castor oil, cream of tartar, dye stuffs, essence of ginger,essence of peppermint, essence of wintergreen, nonpoisonous flavoring essence or extracts, glycerine, licorice, olive oil, sal ammoniac, saltpetre, sal soda and sulphur, except as herein provided: Provided, however, That in the several towns of this State, where there is no registered pharmacist within 5 miles, physicians may compound medicines, fill prescriptions, and sell poisons, duly labeling the same as required by this act, and merchants and drug dealers may sell any drugs, medicines, chemicals, essential oils, and tinctures which are put up in bottles, boxes, packages, hearing labels securely affixed, which labels shall bear the name of the pharmacist putting up the same, the dose that may be administered to persons 3 months, 6 months, 1 year, 3 years, 5 years, 10 years, 15 and 21 years of age, and if a poison, the name or names of the most prominent antidotes; and to the sale by such merchant of copperas, borax, blue vitriol, saltpetre, pepper, sulphur, brimstone, Paris green, liquorice, sage, senna leaves, castor oil, sweet oil, spirits of turpentine, glycerine, glauber salts, epsom salts, cream of tartar, bicarbonate of soda, sugar of lead and such acids as are used in coloring and tanning, paregoric, essence of peppermint, essence of ginger, essence of cinnamon, hive syrup, syrup of ipecac, tincture of arnica, syrup of tolu, syrup of squills, spirits of camphor, sweet spirits of nitre, quinine, and all other preparations of cinchona bark, tincture of aconite and -tincture of iron, or quinine pills, and to the sale of carbolic acid, laudanum, sugar of lead; oxalic acid, duly labeling and registering the same as' required by this act; and to the sale of any patent or proprietary medicines.” Defendant claims that the plaintiffs may.not lawfully sell the articles exempted in CL 1948, § 338.418' (Stat Ann § 14.740), as explained by CL 1948, § 338.-481 (Stat Ann § 14.771), without their store .being in charge of pharmacists registered under 'the pharmacy act. Defendant further claims the defendant properly adopted a definition of the word “drug” in the rules ¿promulgated by it as follows : “The term ‘drug’ shall include all medicines and preparations recognized in the United States Pharmacopoeia or National Formulary for internal or external use, and any substance, or mixture of substances, intended to be used for the cure, mitigation, or prevention of disease of either man or other animals.” . The pharmacy act, PA 1885, No 134 (CL 1948, § 338.401 et seq. [Stat Ann § 14.721. et seq.]), was amended by PA 1905, No 332, and by PA 1921, No-120. See, also, PA 1923, No 85 (CL 19.48, §446.301 et seq. [Stat Ann § 19.611 et seq.]), concerning travelling vendors or hawkers. • ¡ > ■ The pharmacy act contained no definition of the-word “drug.” PA 1909, No 146 (CL 1948, § 335.1 et seq. [Stat Ann § 14.781 et seq.]), contained the definition (CL 1948, § 335.2 [Stat Ann § 14.782]): “The term ‘drug’ as used in this act shall: include-all medicines .and preparations recognized in the-United States Pharmacopoeia or National -Formulary for internal or external use, and .any substance or mixture of substances or device intended to be- used for the cure, mitigation or prevention of disease of either man or other animals.” Defendant claims that the adoption of the definition of the word “drug” in,the act of 1909, being an act in pari materia with the pharmacy act, in effect requires and effectuates that the word drug in the' pharmacy act must be construed to mean the same as the definition set forth in PA 1909, No 146, above, cited. Defendant further claims that if we shall construe that the word drug as used in the pharmacy act means the same as the definition set forth in PA 1909, No 146, then the phraseology in other portions of the pharmacy act are such- as to make section 18 inconsistent with and repugnant to previous sections of the pharmacy act and that the exemptions or exceptions contained in section 18 are therefore ineffectual, and that section 18 is in practical effect, repealed by the enactment of PA 1909, No 146. Defendant further claims that it had authority under the pharmacy act to adopt the definition of the word drug, hereinbefore quoted, as' adopted by-defendant, and that such definition is usable and. effectual to change the meaning of the pharmacy act and that said board’s definition, so used and applied, shall likewise have the effect of rendering the exemptions of section 18 of the pharmacy act, as amended b}^ PA 1905, No 332, practically inoperative and eliminated from the pharmacy act. We deem that the defendant board had no power, by adoption of a definition of the word drug, to change the meaning, effect and purpose of the pharmacy act under which the defendant board was created. The definition adopted by defendant has no-effect in changing the scope, purpose and meaning of the pharmacy act respecting the exemptions set. forth in section 18, as explained by CL 1948, § 338.-481 (Stat Ann § 14.771), hereinafter quoted. PA 1909, No 146, above, referred to, in setting forth its definition of the word drug, gave that definition with the restriction, “the term ‘drug’ as used in this act,” so that the legislature must be understood to have limited the definition as contained in Act No 146 to the things mentioned in that act and not to have intended that the definition in that act should be construed or used as explaining the meaning of the word , drug as contained in the pharmacy act. PA 1909, No 146, was enacted, “to prohibit and prevent adulteration, misbranding, fraud and deception in the manufacture and sale of drugs and drug-products,” in Michigan. The legislature must have considered that it was very important to prevent adulteration and fraud respecting patent and proprietary medicines and household remedies as well as such drugs as are sold under the supervision of a pharmacist, and the legislature could be considered as adopting a particular definition of the word “drug” for the purpose of that act, Act No 146, for the sake of clarity, and certainty and scope in the prosecution of violators of' that act. Neither the definition in PA 1909, No 146, nor the definition much to- the same purpose adopted by the board, is controlling of nor applicable to the word “drug” as contained in the pharmacy act. Defendant further claims that the first full sentence in section 5 of the pharmacy act, as amended by PA 1921, No 120 (CL 1948, § 338.405 [Stat Ann § 14.725]), shall be so construed as to render nugatory and ineffectual the exemptions in section 18, said sentence being as- follows: “Sec. 5. Prom and after the first day of July, 1921, it shall be unlawful for any person, firm or corporation to engage in the business of selling at retail, drugs and poisons or compounding prescriptions, except those who are exempted from registration under section 18 of this act, without first securing from the State board of pharmacy a license as hereinafter provided for. each separate place in which said business is to be carried on.” We feel compelled to find against this claim also of the defendant. Section 5 of the act, as amended by PA 1921, No 120, reaffirms the exemptions of section 18, and does not repeal those exemptions. After the enactment of PA 1909, No 146, of PA 1921, No 120, and after the adoption by the defendant board of its definition, which 3 things defendant erroneously counts on to show a repeal of section 18, the legislature of the State in 1927 enacted CL 1948, § 338.481 (Stat Ann § 14.771), in which the last proviso is: “That this act shall not apply to stores or shops in which patent or proprietary medicines and ordinary domestic or household remedies, such as the sale of is provided for in section 18 of Act No 134, Public Acts of 1885 [evidently meaning, as added by PA 1905, No 332], are the only drugs and medicines sold at retail.” The adoption, therefore, of the act of 1927, after the things had occurred which defendant counts on as repealing or rendering nugatory the exemptions expressly listed or outlined in section 18, is a recognition by the legislature of the continued and unrepealed status and validity of section 18, as set forth in PA 1905, No 332. Defendant claims that the words, “patent or proprietary medicines,” as used in the exemptions in section 18 embrace only preparations protected by letters patent or consisting of a secret, privately-owned formula, or manufacturing process. • An expert witness for defendant testified that by the term “proprietary medicine” is meant that there is a proprietorship right existing either in a patent, in a trade name, in a copyright, or in the individual’s personal name, and not in the established preparation itself, with which statement by defendant’s witness, the plaintiffs seem to agree. It is made clear by testimony that patented medicines are very rare; the method now in use is to register the formula and not to patent the medicine. We conclude that the permission given by section 18, to sell patent or proprietary medicines, was not intended to be limited to the rare class of patented medicines or secret formulas, but does include authorization to sell prepackaged, nonprescription, mass-produced remedies put up for sale to the general public in the distinctive and original container, and under the trade name of the manufacturer as his product under the rules and conditions set forth in the act. ' The intent of the- legislature is disclosed, (all of the acts hereinbefore recited or referred to, being-considered) as permitting ordinary or domestic household remedies as well as so-called. patent or proprietary medicines, to be sold without the supervision of a registered pharmacist, under the rules .and conditions set forth in the. pharmacy act. Defendant concedes that because of the existence of a bona fide disagreement and dispute as to the meaning and effect of the pharmacy act, and to avoid multiplicity of suits, and in the interest of an orderly and consistent administration of the act, a declaration of rights is appropriate in this cause and it appears that defendant will proceed, against plaintiffs if plaintiffs make sales within the exemptions of section 18, if the sales are not supervised by a registered pharmacist. Defendant claims that only the legislature may determine any particular article as coming within the meaning of the exemptions of section 18. However, in view of the threat practically of prosecution for the sale of a great many specific articles that are mentioned in the pleadings, the plaintiffs are entitled to the protection of the court against such threatened prosecution when they can with a fair degree of clarity show to the court that the articles do actually fall within the general terms of the exemptions and exceptions of section 18, as explained in CL 1948, § 338.481. The court’s decree in paragraphs 6, 7 and 8 (among other things) after setting forth defendant’s definition of the word drug, as hereinbefore set forth, recited “However suitable the foregoing definition may be for the purpose of pure food and drug laws, it is not a proper basis upon which to assert exclusive or monopolistic selling rights in ordinary household preparations or remedies on the part of pharmacists. Thus preparations ‘recognized’ in the United States Pharmacopoeia or National Formulary include such common household items as vinegar, corn starch, gelatin, honey, nutmeg, olive oil, soap, baking soda, salt, sugar,' caramel, milk, eggs, vanilla, chocolate syrup, et cetera. Similarly, as shown by the testimony of medical experts in this cause, substances or mixtures of substances ‘for the cure, mitigation or prevention of disease of either man or other animals’ may include items of di.et or food, gelatin, soothing preparations such as corn • starch, fats; et cetera, cleansing agents such as soap, and numerous other items referred to in the testimony in this cause. “7. That among preparations currently in dispute between.the parties to this cause are (bill of complaint, paragraphs 11,13,14 and 15).aspirin, rubbing or isopropyl alcohol, milk of magnesia, boric acid, tincture of iodine, peroxide of hydrogen, oil of wintergreen, witch hazel, mineral oil, camphorated oil, mustard powders, American oil, cod liver oil, epsom salts, citrate of magnesia, Ex-Lax,- Feenamint, Vaseline and/or petroleum jellies, alum, sweet oil, liniment, spices, cream of tartar and Lysol. That these products are procured by merchants and pharmacists from common or similar sources, are sold in the original package or container of the manufacturer under his distinctive name, brand or trade-mark and as his product, are legally salable to the general public without restriction, and fall within the common understanding and legal meaning of the words patent or proprietary medicines as hereinbefore defined. That these preparations are ordinary domestic or household remedies and are generally similar to or within the classification of preparations expressly made salable by merchants in section 18 of the pharmacy act. That said disputed items, preparations or remedies are no more dangerous and in most instances are less dangerous, than those made salable by merchants under section 18, supra, and no valid or reasonable basis exists or is established by any evidence in this cause for prohibiting the sale of' those preparations named in the bill of complaint, while permitting sale of those preparations listed as permissible in section 18. (This in fact being conceded in defendant’s brief.) “8. The evidence herein further establishes, and the court hereby finds, that the packaged preparations and remedies in dispute herein are commonly sold in drug stores to the general public by or through ordinary clerks or sales persons unlicensed and untrained as pharmacists, frequently upon open counters or bins under a serve-self arrangement whereby the customer selects the articles desired and pays for them. That there is no important difference in the handling and selling of these prepackaged, nonprescription, remedies or preparations as between druggists and merchants who are not licensed as pharmacists; that there is no pharmaceutical intervention or service at the retail level in connection therewith, and that the sales to the general public, whether by pharmacists or merchants, involve merely a retailing rather than a pharmaceutical function and service.” The court found: “It appears from the pleadings that preparations now currently in dispute, as between the parties hereto, include * * * aspirin, rubbing or isopropyl alcohol, milk of magnesia, boric acid, tincture of iodine, peroxide of hydrogen, oil of wintergreen, witch hazel, mineral oil, camphorated oil, mustard powders, American oil, cod liver oil, epsom salts, citrate of magnesia, Ex-Lax, Feenamint, Vaseline and/or petroleum jellies, alum, sweet oil, liniment, spices, cream of tartar and Lysol. The evidence shows beyond dispute that many of these preparations have nonmedical as well as medical uses and are packaged by the manufacturers with directions printed for ordinary domestic purposes as well as for medical purposes. The evidence shows that in drug stores, as in ordinary retail stores, such preparations are sold without restriction to the general public, commonly through or by ordinary clerks or sales persons unlicensed and untrained as pharmacists; that frequently such products are on open counters or bins in drug stores under a serve-self arrangement, whereby the customer selects articles desired and pays for them. “It is further undisputed that the products are such as are salable without restriction to the general public; that they .are obtained by merchants and druggists from the same or similar sources; that they are sold in the original unbroken or unopened container of the manufacturer, properly labeled as to ingredients and method of use, and under the manufacturer’s name, brand or trade-mark. “It is evident from the record that there is no important difference between the handling and sell ing of these preparations as between druggists and merchants who are not licensed as pharmacists.; that there is no pharmaceutical service or intervention upon the part of the druggist in the selling of these preparations, there being involved a retailing rather than a pharmaceutical function. “The law imposes no requirement upon the clerks in drug stores to open or analyze the contents of the packages they sell, and the court can see no greater evil in the sale to the public of such articles by a clerk in the grocery store than by a clerk in a drug store.” The legislature by its various acts has indicated that there is no greater evil in the sale without restriction to the public of such articles exempted in section 18 and those hereinbefore listed, by a clerk in other than drug stores but in obedience to the rules and conditions of the act, than there is in a sale without restriction by a clerk in a drug store under the supervision of a registered pharmacist. The decree appealed from construed the pharmacy act as permitting plaintiffs without supervision of a registered pharmacist to sell, and perpetually enjoined defendant from interfering with such sale, all articles expressly enumerated in section 18 and also the articles recited in the portions of the opinion and decree hereinbefore quoted. The quoted lists are not to be considered as excluding other articles which are patent or proprietary medicines or ordinary domestic or household remedies. These products must be sold in the original package or container of the manufacturer under his distinctive name, brand or trade mark and as his product, and of course, subject to present or future requirements of the legislature. The decree appealed from is affirmed. A matter of public interest being involved, no costs are allowed. Dethmers, C. J., and Adams, Butzel, Carr, Btjshnell, Sharpe, and Boyles, JJ., concurred. Administrative Code (1944), p 479.—Repokteb. ' PA 1927, No 359.—Reporter.
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Boyles, J." The St. Joseph city school district and 2 resident taxpayers filed this bill of complaint to enjoin the defendant St. Joseph township school district from exercising any authority over a certain area in the township which plaintiffs claim had been legally annexed to the city school district. The circuit judge denied the relief sought, dismissed the bill of complaint, and the plaintiffs appeal. On April 28, 1952, at an election held in the township and city areas affected by the proposed annexation, a majority of the electors voted for the annexation. On May 2, 1952, the legislature enacted and gave immediate effect to an amendment to PA 1927, No 319, pt 2, ch 3, § 17 (general school code), adding an additional condition to annexation by re quiring a separate affirmative vote in the territory to be annexed, approving such annexation. This-, amendment is the cause of the present litigation. On May 7, 1952, copies of the proceedings were-filed in the offices of the county clerk and the secretary of State, and on May 12th the annexation of the additional territory was completed by resolution of the board of education, in conformity with the statute. Probably this was done, on May 7th and May 12th, without knowledge of the amendment given immediate effect on May 2d requiring the additional affirmative vote of approval. In any event,, if the amendment effective May 2d is upheld in the-present litigation, the acts taken May 7th and May 12th did not legally complete the annexation. It imposed an added requirement to the process of completing the annexation, as follows: “And provided, That there is an affirmative vote-in an annexation election in the school district or districts in the territory to be annexed approving-such consolidation. The board or boards of education having authority in such school district or districts shall call such annexation elections within 30' days after the territory in question has been annexed.” The board of education. of the township school district, in compliance with said requirement, within-30 days called said election, it was held, and the electors voted about 2 to 1 against the consolidation. Thereupon the board of education of said township school district continued to exercise authority over its school district, which action the present suit by the city school district seeks to enjoin. Two questions, only, áre here urged by the plaintiff appellants. The first is that the immediate effect given by the legislature to said PA 1952, No 229' (May 2d), is contrary to the Michigan Constitu tion (1908), art 5, § 21, and therefore a nullity. The pertinent part of said section provides: “No act shall take effect or he in force until the expiration of 90 days from the end of the session at which the same is passed, except that the legislature may give immediate effect to acts making appropriations and acts immediately necessary for the preservation of the public peace, health or safety by a two-thirds vote of ■ the members elected to each house.” Counsel for appellants argue that said PA 1952, No 229, was not immediately necessary for the preservation of the public peace, health or safety. They quote from and rely entirely on dissenting opinions in some of the decisions of this Court. See Newberry v. Starr, 247 Mich 404, beginning on page 412, and Todd v. Hull, 288 Mich 521, beginning on page 542. They do not cite any decision upholding their contention that the immediate effect provision in the amendment of said section 17, by PA 1952, No 229, is invalid on the ground that it contravenes- art 5, § 21, Michigan Constitution (1908). We find nothing in the present case to make an exception to the rules announced in many decisions of the Court upholding the immediate effect provision as valid. Seemingly in point, in Newberry v. Starr, supra, the Court held that giving immediate effect to an act providing that school districts under certain circumstances would constitute a single school district does not violate said article 5, § 21, and said: “The legislature may have considered, in the interest of public health at least, it was immediately necessary,-to secure coordination and cooperation of the agencies of certain cities and school districts described in the act, that each should embrace the same territory. The act relates to important State agencies having to do with preservation of public health, peace, and safety.” Appellants’ second claim is that the 1952 amendment violates the due process clauses of the United States and State Constitutions. In their brief they argue that the amendment deprives the plaintiffs of property without due process of law. The stumbling block in appellants’ progress toward that end lies in the fact that the amendment does not deprive the plaintiffs of any property rights. The plaintiff city school district has no property rights in. the territory of the township school district unless it has been annexed to the city school district in conformity with the statutory requirements. That would seem to be elementary. Nor do the individual plaintiffs have any property rights in the property of the school district. Attorney General, ex rel. Kies, v. Lowrey, 131 Mich 639, s.c. 199 US 233 (26 S Ct 27, 50 L ed 167); Presque Isle Prosecuting Attorney v. Township of Rogers, 313 Mich 1. Counsel for appellants now raise the question .that the 1952 amendment is indefinite and uncertain in that it does not state who is to be allowed to vote in the required election, that it does not define the time and manner in which the election is to be held, what notice shall be given, et cetera. No specific instance is shown where a property right was involved, or that there was a lack of due process involved in the submission of the question of ap proving the annexation under the 1952 amendment,, or any other provisions of the school code. Affirmed. Costs to appellee. Dethmers, C. J., and Adams, Butzel, Carr, Sharpe, and Reid, JJ., concurred with Boyles, J. PA 1952, No 229, amending OL 1948, § 353.17 (Stat Ann 1951 Cum Supp § Í5.423). See Attorney General, ex rel. Barbour, v. Lindsay, 178 Mich 524, 527; People v. Urcavitch, 210 Mich 431, 435; People v. Stambosva, 210 Mich 436, 441; People v. Bodjack, 210 Mich 443, 454; Newberry v. Starr, 247 Mich 404, 407; Industrial Bank of Wyandotte v. Reichert, 251 Mich 396, 399; Naudzius v. Lahr, 253 Mich 216, 227 (74 ALR 1189, 30 NCCA 179) ; Detroit Trust Co. v. Stormfeltz-Loveley Co., 257 Mich 655, 661 (88 ALR 1263) ; In re Slush’s Estate, 279 Mich 19, 22; Todd v. Hull, 288 Mich 521, 52 United Insurance Co. v. Attorney General, 300 Mich 200, 204. US Const, am U, § 1; Midi Const (1908), art 2, § 16.
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Carr, J. Plaintiff brought suit in circuit court to recover damages for personal injuries claimed to have resulted from defendant’s negligence in the operation of his automobile. The declaration filed in the case alleged that on the 7th of September, 1950, about 7 o’clock in the evening, plaintiff was riding a horse in a northerly direction on a certain highway in Emmett township, Calhoun county; that defendant so operated his vehicle as to run into the horse, striking the animal on the left flank; and that as a result plaintiff was thrown to the ground. It was further averred that plaintiff at the time was free from any contributory negligence; and that she received serious injuries, some of which were permanent in character. Defendant’s answer denied all allegations of negligence on his part, and also denied plaintiff’s claim that she was free from negligence. The case was tried before a jury. At the conclusion of plaintiff’s proofs defendant moved for a directed verdict on the ground that the testimony was insufficient to show negligence on defendant’s part, or plaintiff’s freedom from contributory negligence. The motion was taken under advisement by the trial judge. It was renewed at the close of the testimony in the case and decision was again reserved. The jury returned a verdict in plaintiff’s favor in the sum of $6,000. A motion for judgment notwithstanding the verdict was submitted and denied. Defendant’s motion for a new trial was also denied, and defendant has appealed, claiming that he was entitled to a directed verdict and that, in consequence, the motion for judgment notwithstanding the verdict should have been granted. Appellant further claims that errors prejudicial to him were committed during the course of the trial, which errors were alleged by him as the bases of his motion that the verdict be set aside and a new trial ordered. As a witness in her own behalf, plaintiff testified that at the time of the accident she was riding at the east side of the road in a northerly direction, that the horse was walking, that the animal was gentle and well trained, and that passing automobiles did not disturb him. It was her claim that the accident happened approximately 45 or 50 feet to the north of a driveway intersecting the road from the west. She stated further that she had no specific recollection of the automobile striking her horse or herself, that she recalled passing certain bushes on the shoulder of the road, and that the next occurrences that she recalled took place the following morning in the hospital. It was her testimony, also, that her recollection of matters that occurred during the ensuing week was indistinct. She stated positively that she had not seen an automobile approaching the road in the driveway, above mentioned. Her remaining testimony had reference principally to her injuries. A physician who examined her after the-accident testified to lacerations, contusions and bone fractures that she sustained. Plaintiff’s husband testified that he saw defendant at the hospital the night of the accident, shortly after plaintiff had been received therein, that he asked defendant what happened, and that defendant replied that he didn’t know. He further stated that defendant spoke to plaintiff, saying “Little girl, what happened? I didn’t see you.” The witness claimed that such statement was repeated 3 or 4 times, and that plaintiff stated that she was at the side of the road, which statement defendant did not deny, saying merely that he didn’t know what happened. Plaintiff’s witness, Eugene P. Schlorf, also testified to a conversation with defendant about the accident, stating that the latter said that he didn’t see the horse, to his knowledge, and didn’t know what had happened. The witness examined' the horse following the accident, finding an injury in the region of the left flank immediately in front of the left rear leg. The leg was scarred and from the hip down the animal was scarred and bleeding. The witness further testified that the horse at the time of the examination was calm, and that in general he was gentle and not nervous or shy. Mrs. Schlorf gave testimony of like nature, stating that in answer to her question as to what had happened defendant said, “I don’t know, I just don’t know, I struck her, and that’s all, I just don’t know.” This witness further testified that defendant stated that he struck plaintiff and the horse. The testimony of plaintiff’s witnesses further indicates that defendant told them that he entered the road from the driveway located south of the point where the accident occurred. That his automobile struck plaintiff’s horse is not questioned. According to the testimony of plaintiff’s witnesses, defendant admitted such fact. His statements, if made as claimed, that he did not know how the accident happened suggests that after entering the road from the driveway he failed to exercise due and proper care for the safety of others on the highway, particularly the plaintiff. If he failed to see her as she proceeded on the east side of the pavement, or on the shoulder of the road, an inference that he was not keeping a reasonable and proper outlook as he proceeded is fully justified. In passing on the motion for a directed verdict at the conclusion of plaintiff’s proofs the trial judge was bound to interpret the testimony, and the legitimate inferences from the facts established, as strongly as possible in plaintiff’s favor. The physical facts shown, particularly the nature of the injury sustained by the horse, are significant. The jury was justified in inferring that the animal was struck by defendant’s automobile on the left rear flank and leg, and that the blow was a glancing one. In Brown v. Arnold, 303 Mich 616, 623, it was said : “The facts we have recited were established by the testimony, and we have repeatedly held that a jury may draw reasonable and legitimate inferences from established facts. Negligence may be inferred from the facts and circumstances. Physical facts may justify a jury finding that defendant is guilty of negligence. Faustman v. Hewitt, 274 Mich 458; Trent v. Pontiac Transportation Co., Inc., 281 Mich 586. Negligence may be inferred from circumstances which place the case within the field of legitimate inferences from established facts. Fish v. Railway, 275 Mich 718.” The ábove statement was quoted with' approval in Anderson v. Kearly, 312 Mich 566. In applying' the suggested rule, it was said: “Having in mind that upon a motion to .direct a verdict against plaintiff, the testimony and all legitimate inferences which may be drawn from it most favorable to plaintiff must be accepted, we are of the opinion that plaintiff established a prima facie case.” Defendant was not entitled to a directed verdict at the conclusion of plaintiff’s proofs. Under the testimony that had been received, it was for the jury to determine the issues of negligence, proximate cause, contributory negligence, and damages. Defendant’s testimony on the trial was not in accord with his alleged admissions to plaintiff’s witnesses. He did not admit the making of the statements in question, but whether he did so was for the determination of the jury. It was his claim that he saw plaintiff and her horse as he approached them, that he was driving at a moderate rate of speed, and that as he came out of the driveway he swung over to the right side of the pavement and then turned to his left in order to pass the plaintiff. According to his testimony his car was approximately in the center of the pavement at the time it struck plaintiff’s horse, which defendant claimed suddenly and unexpectedly jumped in front of the car so that he could not avoid striking him. He stated that the pavement was approximately 18 feet in width, although a witness in his behalf testified that such width was 20 feet. Further proofs disclosed that the right-front fender of the automobile was bent, and the radiator was damaged. Defendant did not claim that in undertaking to pass plaintiff he turned to the left as far as possible. It further appears that following the accident the car was partly on the east side of the road and headed in a northwesterly direction. In view of the conflicting nature of the testimony, we conclude that the trial court was not in error in submitting the case to the jury. Issues of fact were presented for determination. The rule is well settled that a verdict may not properly be directed in favor of either party under such circumstances. Davis v. Belmont Creamery Co., 281 Mich 165; Selman v. City of Detroit, 283 Mich 413. There was no error in the denial of the motion for judgment notwithstanding the verdict. This brings us to a consideration of appellant’s claim that he is entitled to a new trial because of materially prejudicial errors in the charge to the jury and in the refusal to give certain requests to charge submitted by counsel for defendant. With reference to the duties resting on the defendant in the operation of his automobile, the trial judge directed the attention of the jury to certain provisions of the motor vehicle code, PA 1949, No 300 (CL 1948, § 257.1 et seq. [Stat Ann 1952 Rev § 9.1801 et seq.]). Among other provisions, the court read to the jury section 627(a) (CL 1948, § 257.627 [a] [Stat Ann 1952 Rev § 9.2327(a)]), as follows: “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.” Appellant’s objection is directed, to the concluding sentence of the section quoted, it being claimed in substance that the proofs in the case were not of such character as to justify an inference or conclusion that defendant could not stop within the assured clear distance ahead. In view of the testimony offered in plaintiff’s behalf as to the admissions made by defendant, we think that the charge was a proper one and that appellant’s claim that he was materially prejudiced thereby is not well founded. Defendant was charged with having seen plaintiff and her' horse. If plaintiff’s theory, which the jury obviously accepted, as to where and how the accident happened was correct, it is a fair inference that defendant did not make proper observations to determine the “clear distance ahead.” 1 The trial judge also called attention in his charge to section 604 of the motor vehicle code (CL 1948, § 257.604 [Stat Ann 1952 Rev § 9.2304] ) with reference to the rights and duties of one riding an animal or driving an animal-drawn vehicle upon a highway. .'Section 636 (CL 1948, § 257.636 [Stat Ann 1952 Rev .§ 9.2336]), was read, said section being as follows r ' [ “The following rules shall govern the overtaking and passing of vehicles proceeding in the same direction, subject to those limitations, exceptions, and special rules hereinafter stated: “(a) The driver of any vehicle overtaking another vehicle proceeding in the same direction shall pass at a safe distance to the left thereof, and when safely clear of such overtaken vehicle shall take up a position as near the right-hand edge of the main traveled portion of the highway as is practicable. “(b) Except when overtaking and passing on the right is permitted, the driver of an overtaken vehicle shall give way to the right in favor of the overtaking vehicle on audible signal and shall not increase the speed of his vehicle until completely passed by the overtaking vehicle.” Error is assigned by appellant on this charge and on the further remarks of the judge to the jury, based on the statute, with reference to the duty of the defendant in undertaking to pass the horse ridden by plaintiff. It is contended that too great a burden was placed on defendant. However, tbe duty is clearly defined by tbe statute, and, if tbe defendant so operated Ms car as to strike tbe horse on the east side of tbe highway where plaintiff claimed to have been riding, such duty was clearly violated. An examination of the charge as given discloses that the trial judge sought to cover fully the claims of the parties to the case insofar as such claims were supported by proofs, or by legitimate inferences from facts. The rights and obligations of both parties were fully and carefully explained. Bead in its entirety the charge is not open to the criticism that appellant’s rights were not thereby adequately safeguarded. Other claims of appellant as to alleged erroneous instructions do not require specific discussion. We have considered them in detail and conclude that they are without substantial merit. As before noted, it was the claim of the defendant on the trial that plaintiff’s horse suddenly leaped or jumped in front of his car when it was in such proximity to the animal that he could not avoid the impact. Based on such claim the following requests to charge were submitted: “I charge you that the law makes allowance for acts in an emergency and sudden peril and for lack of coolness of judgment incident thereto. Flynn v. Kramer, 271 Mich 500. “I charge you that one who is suddenly put in peril is not imperatively required to do that which after the peril is ended it is seen he might have done and escaped. The law makes allowances for fright and lack of coolness of judgment incident to such peril or danger. Luck v. Gregory, 257 Mich 562. “I charge you that a driver in a sudden emergency cannot be judged by ordinary standards of due care. An allowance has to be made for the time required for tbe mental and physical operations to enable tbe driver to meet the emergency under the conditions existing at the time. Suarez v. Katon, 299 Mich 38.” Each request is phrased in accordance with the language of this Court, in the case cited as authority therefor, in the consideration of the particular acts and issues under discussion. Undoubtedly such statements are correct expressions of the law but it does not follow that any of them, or even all of them if considered together, would constitute a proper statement of the emergency rule for the information and enlightenment of a jury. In denying the motion for a new trial the circuit judge expressed the opinion that the proofs in the case did not support a conclusion that defendant was confronted by a sudden emergency. In indicating such view, emphasis was placed on the physical facts in the case. It may be noted also that no claim was made on behalf of plaintiff in her declaration or in the course of the trial that she was entitled to recover damages on the theory that negligence of the defendant at the inr stant, or thereafter, that the horse leaped in front of the car, if such was the fact, was a proximate cause of the accident and the injuries sustained by plaintiff. Such was not the theory of plaintiff’s cause of action. While the requests, as submitted, were not given, the court did state to the jury: “The duty to keep an automobile under control involves the ability to stop promptly within a reasonable distance. This duty does not extend so far as to require that it must always be possible to bring an automobile to an immediate stop upon the sudden arising of a dangerous situation which the driver could not reasonably have anticipated.” Such charge, we think, fairly protected the rights of the defendant. In any event, none of the requests presented by the defendant constituted a complete and proper statement of the emergency rule. Considering all of them together leads to a like conclusion. They contain no suggestion that the rule does not apply if the emergency resulted in part, or wholly, from the negligence of the party seeking to invoke its protection. In Walker v. Rebeuhr, 255 Mich 204, the Court quoted with approval from Huddy on Automobiles (8th ed), p 359, as follows: “‘One who suddenly finds himself in a place of danger, and is required to act without time to consider the best means that may be adopted to avoid the impending danger, is not guilty of negligence if he fails to adopt what subsequently and upon reflection may appear to have been a better method, unless the emergency in which he finds himself is brought about by his own negligence.’” In Lagassee v. Quick, 273 Mich 295 (syllabus 4), it was held that: “If sudden emergency confronting defendant motorist was created solely by act of plaintiff pedestrian, a woman 62 years of age, in suddenly jumping •or stepping backward into his path, he was entitled to instruction that under such an emergency, negligence should not be found merely because he did not adopt a different course to avoid the accident but if •driver was guilty of negligence which helped to bring about the emergency, he was not entitled to benefit •of such instruction.” In Murner v. Thorpe, 284 Mich 331, 335, it was stated, citing Walker v. Rebeuhr, supra, that the rule •only applies “if the emergency has not been brought •about by the party’s own negligence.” In Socony Vacuum Oil Co. v. Marvin, 313 Mich 528, 546, the trial court charged the jury with reference to the emergency rule, ignoring, however, the limitation that such rule did not apply “if the peril was caused by negligence on tbe part of plaintiff’s driver or if his negligence contributed to snch result.” It was held that stating the rule without embodying the necessary qualification was error. The judgment in Hansel v. Hawkins, 326 Mich 177, was reversed for a like error. In the case at bar the defendant’s requests could not properly have been given in the form submitted. They were in consequence subject to denial for such reason, as well as for the reason assigned by the trial court. Incidental matters referred to by counsel in their briefs do not require discussion. The record before us does not disclose that any error occurred in the course of the trial in circuit court of such prejudicial nature as to require a reversal. The judgment is affirmed, with costs to appellee. Dethmers, C. J., and Adams, Btjtzel, Bushnell, Si-iarpe, Boyles, and Reid, JJ., concurred. See CL 1948, § 691.691 et seq. (Stat Ann 1951 Cum Supp § 27.-1461 et seq.).—Reporter.
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Bushnell, J. Elizabeth E. Bradley sought damages for personal injuries sustained in a service station operated by defendant Gerald J. Stevens, doing business as Stevens Auto Service. Her husband, Henry J. Bradley, sought damages for the loss which he suffered because of his wife’s injuries and for his expenses in connection therewith. These separate causes of action were consolidated and tried before the court without a jury. On August 21, 1946, Mrs. Bradley, while on her way to visit her husband, who was then in a hospital, stopped at Stevens’ place of business to procure gasoline for her automobile. She inquired about .the possibility of repairing her brakes which had been giving her trouble. On her return from the hospital she experienced more brake trouble and stopped at the same service station at about 9 p. m. Two employees were then on duty, one of whom, later ascertained to be Melvin Yeo, examined the-car. He quoted a price of $13.50; and upon his assurance that the work could be completed before closing time, Mrs. Bradley instructed him to proceed. He apparently purposely delayed the work, though continually promising Mrs. Bradley that it would be completed in another 10 or 15 minutes. About 10 p. m. the other attendant, Harold Sutton, who was then in charge, handed Yeo some keys, and left Mrs. Bradley and Yeo alone. It is unnecessary to relate the sordid details of the subsequent occurrences, except to say that Yeo, .after continuous improper advances, attacked Mrs. Bradley. When she resisted, he drew a knife and threatened to kill her. Her entreaties, outcries and attempts to escape were futile. She was finally able to break a window with a truck fuel pump. While attempting to crawl through the broken window, she was grabbed by Yeo. She suffered severe cuts on her head and body to- such an extent that it was later necessary to remove her right eye. As Mrs. Bradley was struggling to escape through the broken window her screams attracted the attention of a •driver of a passing car. He took her to Providence hospital. The police were called and, after talking to Mrs. Bradley, went to the gasoline station, where they found Yeo sitting in a chair bleeding from wounds on his neck. His explanation was that hold-up men had cut him. The officers sent for Stevens and talked to him. Officer Doran was asked at the trial: “Do you remember anything that was said by; Mr. Stevens that night? He replied: “Yes; lie seemed to—rather upset when Yeo got in trouble over.the same kind of a case. After I explained what had happened there that evening, he said he was already out on bond. He not only said he was out on bond, but he said he already had a case pending against him of that sort.” The other police officer, Henry Reezko, testified in part as follows: “Q. You heard Mr. Doran’s testimony? “A. Yes I did. “Q. Did you hear anything about—Do you remember anything being said about the nature of-the offense on which Yeo was out on bail? “A. Not that day. “Q. You don’t remember that? “A. I didn’t hear anything on that day on the offense that he was out on bail but he merely says, ‘Something like this would happen again, and he is out on bail now.’ Well, leaving the hospital, this Mrs. Bradley told us he tried to attack her, and that is what my partner told Mr. Stevens, it did happen. That is what it must have been. “Mr. Gary: I ask that be stricken, what must have been, putting 2 and 2 together and saying that is what it must have been. “The Court: What do you mean, must have been? “A. Well, Mr. Stevens asked Patrolman Doran what happened. Patrolman Doran told Stevens Yeo tried to attack a girl in the gas station. That is when he made the statement, he said, ‘I thought something like that would happen. Mr. Yeo is out on bail now.’ “The Court: Did he say what he had done? “A. Mr. Stevens didn’t say anything but that was the remark he made after my partner talked to him. “The Court: He didn’t say why he was on bail? “A. No, he didn’t say why. “The Court: And you didn’t know?” In 1943, Yeo was arrested for impersonating an officer. That case was dismissed. That same year he was found guilty of nonsupport and placed on 6 months’ probation. A subsequent nonsupport charge in 1946 was withdrawn on August 2d of that year. When Yeo attacked Mrs. Bradley, he was then out on bail awaiting trial under a charge of common-law rape. On October 30,1946, a jury found him not guilty of that charge. For the attack on Mrs. Bradley he was sentenced to serve a term of 5 to 10 years. Plaintiffs called defendant Gerald J. Stevens for cross-examination under the statute. OL 1948, § 617.66 (Stat Ann § 27.915). He stated that he returned to his gasoline station at 2:15 a. m. in response to a call from Yeo’s sister and was informed by the police officers that Yeo had cut his throat after he had attempted to rape a woman. He stated that all he could remember saying to the officers was that Yeo had been locked up 10 or 12 days previously for the nonsupport of his wife, and added: “That is all I was referring to. And I said, ‘To think that something like this would have to happen after his attorney pleading with me not to fire him.’ ” He denied that he told the officers that he was “afraid something like this would happen,” although he might have said: “I was afraid to think that this had already happened. What I meant to say was it is terrible that it happened; to think that I could have—that this man here, I was going to let him go out of my employ.” Frank H. Finney, who was attorney for Yeo in the nonsupport and rape cases, testified in part as follows: “Q. Did you at any time ask Mm (Stevens) directly or otherwise to continue this man in his employ, or anything of that kind? “A. Yes, I did. Mr. Stevens was quite upset, due to the fact that this Melvin had not appeared for work on the day of his arraignment on the nonsupport charge. My conversation with him in regard to that, I believe, was the day or so after that, sometime between July 19th and July 23d. Mr. Stevens took the attitude that he didn’t wish to keep Yeo in his employ because he hadn’t shown up for work, and he said something about not being able to depend on the man, and I told him that a matter of this kind could happen to most anyone if there had been family trouble, and I told him that there had been a divorce action started at one time, and that my concern was to see that part of Yeo’s wages were assigned to his wife, in order that she would have the means of supporting herself and those children, and Mr. Stevens agreed to keep him employed and to acknowledge the validity of the assignment of wages. That is the assignment that I gave to his wife. That completes all I know about my conversations or arrangements with Mr. Stevens in connection with Mr. Yeo. I defended this man in court, and he was acquitted o.n the first charge.” Stevens was interrogated in detail with respect to his employment of Yeo and the operation of his business. At the conclusion of his testimony the trial judge also interrogated Stevens at length. In the written opinion filed in the trial court this testimony is summarized. It appears that Yeo had been in Stevens’ employ for about 2 months and on the date of the attack concluded his work about 5 p. m., and left the premises. Later Stevens left, and did not know of Yeo’s return until he talked with the police officers. There is no question but that the assault was unprovoked and that Mrs. Bradley was innocent of any conduct which would have led to such a result. After directing attention to the impossibility of computing with mathematical accuracy the damages suffered by Mrs. Bradley, the trial judge stated that in his opinion they were not less than $15,000. The expenses incurred by her husband totaled $2,381.85. The court held that if Bradley was entitled to recover at all, this was a fair and modest appraisal of his damages. A review of the record requires concurrence with the following conclusions reached by the trial judge. He said in part: “If Stevens is held liable, it is on the principle of law quoted, that he is guilty of negligence because of his failure to investigate and learn the character and reputation of Yeo. The burden of proof is upon the plaintiff to establish such negligence by a fair preponderance of the evidence. There is no proof of such negligence except as the same may be inferred from the statements of the officers and those who talked with Stevens the night this affair occurred. In the light of the confusion that then existed, and all the other facts, I am not satisfied that Stevens knew or had any reason to believe, when he employed Yeo, or at any time during his employment, that Yeo had any criminal record other than those matters which referred to his family troubles, and the alleged claim of nonsupport.” Under the doctrine of respondeat superior there is no liability on the part of an employer for torts intentionally or recklessly committed by an employee beyond the scope of his master’s business. Martin v. Jones, 302 Mich 355, 358. If Stevens knew, or should have known, Yeo’s ¡propensities and criminal record, the judgment of .no cause of action should be vacated. For annotation of authorities on this subject see 40 ALR, beginning at page 1215, and 114 ALB, beginning at page 1041. See, also, intimation of this view in Davidson v. Chinese Republic Restaurant Co., 201 Mich 389 (LRA1918E 704). This is not a situation involving a question of believing one set of witnesses and not believing another. The question is: Did Stevens know about the prior crime charged against Yeo, or was he, in his statement to the police officers, referring to the charge of nonsupport? In this appeal from a judgment of no cause of action based upon the trial judge’s conclusion that it was the latter, we cannot say that the the evidence clearly preponderates in the opposite direction. Brackins v. Olympia, Inc., 316 Mich 275, 283 (168 ALR 890). The record shows that Stevens took the reasonable and usual steps before employing Yeo. It is also argued by appellants that Stevens cannot escape liability for an act of an employee who, although off duty, returned to the premises and resumed work with the consent of the employer’s agent then in charge. This would not impose liability upon Stevens unless he knew or should have known Yeo’s criminal propensities. Under the facts and circumstances as disclosed in this record the law does not impose liability upon defendant Stevens. The judgment is affirmed, with costs to appellee. Beid, C. J., and Boyles, North, Dethmers, Butzel, Carr, and Sharpe, JJ., concurred.
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Dethmers, C. J. (dissenting). This case involves the construction of 3 acts. The first is PA 1939, No 135 (CL 1948, § 691.101 et seq. [Stat Ann 1951 Cum Supp § 27.3548(1)]), hereinafter called the court of claims act. The second, hereinafter called the waiver of immunity act, is PA 1943, No 237, which amended section 24 of the court of claims act to provide that,, with certain exceptions not pertinent here, the defense of sovereign immunity was waived in cases brought in the court of claims against the State for the torts of its officers and employees committed in performance of a governmental function. The third, hereinafter called the repealing act, is PA 1945, No 87 (CL 1948, §691.141 [Stat Ann § 27.3548(41)]), which became effective September 6, 1945, repealing the mentioned waiver of immunity act of 1943. It contained no saving clause. On February 6, 1945, plaintiff’s cause of action, if any, arose out of injury sustained in a fall in the State office building caused by slipping on ice allegedly present due to negligence of State employees.. On August 3, 1945, plaintiff filed notice of her intention to file a claim against the State. It will be noted that both the injury and the filing of notice antedated the effective date of the repealing act of 1945 and occurred while the waiver of immunity act of 1943 was in effect. On January 20,1948, after the repealing act had become effective, plaintiff filed her pending petition and bill of particulars in the court of claims, demanding judgment for $25,000. On Jan- nary 28, 1948, defendants filed a motion to dismiss plaintiff’s petition and from denial thereof, on leave granted, bring this appeal. Should the court have granted defendants’ motion to dismiss, planted on the theory that the 1945 repeal of the 1943 waiver of immunity deprived plaintiff of the right to proceed against the State in a suit, begun after the repeal, based on a cause of action which had ■accrued while the waiver was still in effect? Bejger v. Zawadzki, 252 Mich 14, is cited in support of defendants’ motion. There an act providing for double damages for injuries resulting from dog bite and dispensing with the common-law necessity for proof that the owner had knowledge of the dog’s vicious propensities was repealed, without a saving clause, during pendency of suit on a cause of action which had accrued while the act ivas in effect. It was held that no recovery could be had under the repealed act. Involved was the repeal of statutory provisions for a penalty and a rule of evidence to which this Court held no vested rights attach. Those are not the elements here involved. Also cited by defendants are cases such as Detroit Trust Co. v. Allinger, 271 Mich 600, for the proposition that “the repeal of a statute divests all inchoate rights which have arisen under the statute which it destroys. 54 CJ, p 402.” But, was plaintiff’s accrued cause of action an inchoate right? In Cusick v. Feldpausch, 259 Mich 349, this Court held that an accrued right of action for damages resulting from the tortious act of another is not an inchoate, but a vested, right which may not be defeated by giving a subsequently-enacted statute retrospective effect. Decision must depend upon analysis of the essence of the State’s waiver of sovereign immunity in the 1943 act. Did it impose a liability on the State under certain circumstances and thus create a cause of action, a right, or did it amount merely to a consent to be sued, the affording of a remedy ? If the latter, it clearly gave rise to no vested right, but only a privilege which the State could withdraw at any time even though the withdrawal served to destroy the remedy in relation to causes of action which had already accrued and to terminate suits thereon already pending. In McDowell v. Warden of Michigan Reformatory at Ionia, 169 Mich 332, involving a contractual right against the State, it was held that such withdrawal of consent to be sued terminated a pending suit and that this was not violative of the constitutional inhibition against impairment of the obligation of contract. Similarly, in Beers, Use of Platinius, v. Arkansas, 20 How (61 US) 527 (15 L ed 991), involving a contractual right against a State, the court held that, inasmuch as a State’s consent to be sued is voluntarily given, it may be withdrawn altogether, even though a cause of action on contract has already accrued to plaintiff, and that this does not violate United States Constitution, art 1, § 10, prohibiting impairment of the obligation of contract. In Lynch v. United States, 292 US 571 (54 S Ct 840, 78 L ed 1434), it was held that consent given by the United States government to be sued on insurance contracts issued by it could be withdrawn at any time, even though the contractual obligation had been assumed by the government while the consent was in effect, and that this was not violative of the Fifth Amendment’s prohibition against taking property without making just compensation and did not imply repudiation of contract obligation. To the same effect is Duke Power Co. v. South Carolina Taos Commission (CCA), 81 F2d 513, which also held that such course of action did not violate the limitations of the Fourteenth Amendment. The trial judge pointed out, however, that the 1943 act not only waived immunity, but also provided that “the State hereby assumes liability for such acts.” From this the court concluded that the act served not only to provide a remedy but also to create a substantive right. To this concept the court applied the holding of Cusick v. Feldpausch, supra, that the repealing act could not operate retrospectively to destroy such vested right. Granted that the repealing* act may not, for constitutional reasons, operate retrospectively to destroy a vested right, may it not, nevertheless, stand as a valid withdrawal of consent to be sued on causes of action already accrued? In considering that question, the court in Lynch v. United States, supra, said: “There is a suggestion that although, in repealing all laws ‘granting or pertaining to yearly renewable term insurance,’ congress intended to take away the contractual right, it also intended to take away the remedy; that since it had power to take away the remedy, the statute should be given effect to that extent, even if void insofar as it purported to take away the contractual right. The suggestion is at Avar with settled rules of construction. It is true that a statute bad in part is not necessarily void in its entirety. A provision within the legislative poAver may be allowed to stand if it is separable from the bad. But no provision however unobjectionable in itself, can stand unless it appears both that, standing alone, the provision can be given legal effect and that the legislature intended the unobjectionable provision to stand in case other provisions held bad should fall. Dorchy v. Kansas, 264 US 286, 288, 290 (44 S Ct 323, 68 L ed 686). Here, both those essentials are absent. There is no separate provision in section 17 dealing with the remedy; and it does not appear that congress wished to deny the remedy if the repeal of the contractual right was held void under the Fifth Amendment.” Likewise, in Duke Power Co. v. South Carolina Tax Commission, supra, the court, after affirming the right of a State to withdraw its consent to he sued at any time, said: “But the repealing statute here, if given the interpretation contended for by appellee, does more than withdraw the State’s consent to suit. It wipes out all rights of the appellants with respect to the moneys paid under protest; for no one would contend that, in the absence of the statute, a taxpayer would have any rights with respect to tax payments already made. As there is no separate provision of the repealing statute dealing with the remedy, the entire statute would necessarily be held invalid insofar as it applied to transactions occurring prior to its passage. The question in this respect is clearly ruled by the recent decision of the supreme court in Lynch v. United States, 292 US 571, at page 586 (54 S Ct 840, 78 L ed 1434). A statute which attempts by the same provision to destroy both a right and a remedy succeeds in destroying neither.” Concerning the 2 Federal cases just quoted, it should be observed that the very acts which granted consent to be sued at the same time formed the basis for the liability upon which suit was sought to be brought. Thus the right and the remedy were created by 1 act. In both instances the repealing act, in nonseverable terms, undertook to destroy both the right and the remedy by 1 repealing clause which failed to make distinction between or reference to the right and remedy independent of each other. That was the controlling factor. The trial judge’s view that the waiver of immunity act of 1943 not only afforded a remedy but equally gave rise to a vested right upon the occurrence of certain events finds apparent support, not only in the language of the statute itself, but also in our opinion in Manion v. State Highway Commissioner, 303 Mich 1. In that ease, brought before enactment of the 1943 waiver of immunity act, it was contended that sovereign immunity had been waived by section 8 of the. 1939 court of claims act, a pertinent portion of which, in prescribing the powers of the court of claims, reads: “The court shall have power and jurisdiction: “1. To hear and determine all claims and demands, liquidated and unliquidated, ex contractu and ex delicto, against the State and any of its departments, commissions, boards, institutions, arms or agencies.” In rejecting that contention the majority of this Court said, inter alia: “There is a distinction between sovereign immunity from suit and sovereign immunity from liability. The latter exists when the sovereign is engaged in a governmental function. The former may be waived without a waiver of the latter. * * * “The State is not liable in this instance because of its sovereign immunity from liability and in the performance of a governmental function and not because of its sovereign immunity from suit.” To be noted is the use in that case of the term “immunity from liability,” which is also to be found in Mead v. Michigan Public Service Commission, 303 Mich 168. We have no doubt that the indicated use by this Court of that term and expression of the concept that the defense of “governmental function” consists of 2 parts, namely, immunity from liability and immunity from suit, prompted the legislature to believe that, in enacting the waiver of immunity act of 1943, it was necessary not merely to consent to be sued but also to waive immunity from and to assume liability. This theory of the dual nature of sovereign immunity is to be found for the first time, in this State at least, (and we do not find that its ■exists elsewhere) in the Manion Opinion which is singularly free from citation of authority for it. It was not necessary to the decision. The result .achieved in the case, in which we still concur, followed necessarily from the express terms of section 8 of the court of claims act, as above quoted, which served only to confer upon the court of claims exclusive jurisdiction over certain actions against the State, not to grant to claimants against the State consent to be sued in types of cases in which the the State was not already suable. That such was the legislative intent is emphasized by the provision in that act, stressed in the Manion Case, that it •should not be construed to enlarge the present liabilities of the State. To hold, as language in the Manion Opinion appeared to imply, that the court of claims act gave the State’s consent to be sued in cases in which it could not theretofore have been sued and at the same time rendered that consent worthless by the erection of a barrier against liability, under the guise of a newly-discovered concept of immunity from liability, is to construe the act so as to result, unnecessarily, in absurdity. That we do not do. General Motors Corp. v. Unemployment Compensation Commission, 321 Mich 604. Sovereign immunity has always meant immunity from suit. So long as immunity from suit remained in a given type of case the necessity for determining sovereign immunity from liability therein never arose. Accordingly, we find no reported cases of instances 'in which a sovereign entity has given consent to be sued in the very cases in which it denies liability on the doctrine of immunity. The 1943 act accomplished nothing more than waiver of immunity from suit. Language of the act expressive of a purpose beyond that was mere surplusage, inasmuch as liability in tort arises under the general laws of the State. Since we conclude that the 1943 act did no more than give consent to he sued,' it follows that the repealing act of 1945 operated only as a withdrawal of that consent. Such withdrawal stands as a barrier to plaintiff’s suit despite the accrual of her cause of action prior to the withdrawal. See authorities hereinbefore considered. It will be noted that Rogers v. Kent Board of County Road Commissioners, 319 Mich 661, involved an active, continuing trespass and is, therefore, not in point here. Mention should also be made of language in the concluding paragraph of this Court’s opinion in Benson v. State Hospital Commission, 316 Mich 66. The only question raised in that case was whether the 1943 waiver of immunity act violated the Michigan Constitution of 1908, art 5, § 21, provision that “no law shall embrace more than 1 object, which shall be expressed in its title.” Although the repealing act of 1945 was mentioned in the opinion of this Court and its effect upon accrued causes 'of action indicated, that question was neither raised in the record nor discussed in the briefs and the case in.nowise represents the considered judgment of this Court on the question. Order should be reversed. No costs, a public question being involved. Carr, J., concurred with Dethmers, C. J. Boyles, J. I do not concur in reversal. The order of the court of claims denying defendant appellants’ motion to dismiss should be affirmed and the case remanded for hearing on the merits. Hereinafter appellants will be referred to as the State. The precise question raised here on this appeal, and the only ground advanced here by the State for reversal, is stated by its counsel as follows: “Where plaintiff sustained personal injuries for which the State of Michigan would then be liable by virtue of section 24 of the court of claims act as amended in 1943 expressly waiving sovereign immunity from liability for any tort committed by a State employee in performance of a governmental function, and where subsequently, but before plaintiff’s cause of action had been reduced to judgment in the court of claims, section 24 was expressly repealed by legislative enactment, did plaintiff, by virtue of an event which occurred while section 24 was still in full force and effect, acquire a vested right enforceable in the court of claims?” Said question (as above quoted) apparently was intended to cover the State’s motion to dismiss filed and heard in the court of claims and denied, which was as follows: “Now come defendants State of Michigan and Board of State Auditors by Eugene P. Black, attorney general, and move that the petition herein be dismissed for the reason that said petition fails to state facts sufficient to constitute a valid cause of action against said defendants, or either of them, in that said defendants, at the time and place of the grievances and matters set forth in said petition, were engaged in the performance of a governmental function and having been so engaged, are not liable for the negligent or tortious acts of their officers, agents or employees.” As indicated by the Chief Justice, the motion was apparently intended to refer to plaintiff’s claim that the State is liable for negligent or tortious acts of its officers, agents or employees which occurred during the period of time while section 24, PA 1943, No 237, called the waiver of immunity act, was in effect and prior to its repeal by PA 1945, No 87. The event which gave rise to plaintiff’s cause of action occurred during that period of time. Said section 24, PA 1943, No 237, then in effect, provided that: “Upon the happening of any event subsequent to November 1,1943, which gives rise to a cause of action, the State hereby waives its immunity from liability for the torts of its officers and employees and consents to have its liability for such torts determined in accordance with the same rules of law as apply to an action in the circuit court against an individual or a corporation, and the State hereby assumes liability for such acts, and jurisdiction is hereby conferred upon the court of claims to hear and determine all claims against the State to recover damages for injuries to property or for personal injury caused by the misfeasance or negligence of the officers or employees of the State while acting as such officer or employee.” (Emphasis supplied.) This was not merely a consent by the State to be sued, or a waiver of immunity from the right to sue the State. It was a waiver of immunity from liability, and an express assumption of liability by the State. No plainer language to accomplish that result could have been written—“and the State hereby assumes liability for such acts.” Furthermore, there was no need for the State to amend the court of claims act by adding any waiver of immunity from being sued, in order to give its consent to be sued. That had been granted by section 8 of the court of claims act when it was passed in 1939. This Court so held in Manion v. State Highway Commissioner, 303 Mich 1, decided in 1942, after the enactment of the court of claims act, but before the 1943 waiver of immunity from liability. In that case we held that the State had waived its immunity from being sued, but not its immunity for liability, and that the defense of governmental immunity from liability might still be raised in sncli suit. Speaking' through Justice Bushnell, the Court said (pp 19, 21): “There is a distinction between sovereign immunity from suit and sovereign immunity from liability. The latter exists when the sovereign is engaged in a governmental function. The former may be waived without a waiver of the latter. Section 24 of the court of claims act (PA 1939, No 135 [CLS 1940, § 13862-1 et seq., Stat Ann 1940 Cum Supp §§ 27.3548 (l)-27.3548(24)]) reads: “ ‘This act shall in no manner be construed as enlarging thé present liabilities of the State and any of its departments, commissions, boards, institutions, arms or agencies.’ “I construe this to mean that the State’s immunity from liability while engaged in a governmental function is preserved because the waiver of this defense would énlarge the ‘present liabilities of the State.’ * * “The State is not liable in this instance because of its sovereign immunity from liability in the performance of a governmental function and not because of its sovereign immunity from suit.” To the same effect, see Mead v. Michigan Public Service Commission, 303 Mich 168, also decided in 1942, under the court of claims act, before the waiver of immunity from liability in 1943. There the Court held (syllabus): “While the act creating the court of claims provides a forum in which all claims and demands, liquidated and unliquidated, ex contractu and ex delicto against the State or any of its departments, commissions, boards, institutions, arms or .agencies, the act is not to be construed as enlarging the liabilities of the State or such agencies (PA 1939, No 135).” In section 8 of the act, as enacted in 1939 and in effect at all times since, it is expressly stated that: “The jurisdiction of the court of claims as conferred upon it hy this act over claims and demands against the State or any of its departments, commissions, boards, institutions, arms or agencies, shall be exclusive. The court shall have power and jurisdiction : “1. To hear and determine all claims and demands, liquidated and unliquidated, ex contractu and ex delicto, against the State and any of its departments, commissions, boards, institutions, arms or agencies. “2. * * * The judgment entered by the court of claims upon any such claim, either against or in favor of the State or any department, commission, board, institution, arm or agency thereof, upon becoming final shall be res adjudicata of such claim. * # * Writs of execution or garnishment may issue upon said judgment the same as from one of the circuit courts of this State. The judgment entered by the court of claims upon any siich claim, either for or against the claimant, shall be final unless appealed from as herein' provided.” See CL 1948, § 691.108 (Stat Ann 1951 Cum Supp § 27.3548 [8] ). In Benson v. State Hospital Commission, 316 Mich 66, at pp 71, 72 the Court said: “There is no question but that the State,-by enacting the court , of claims act, .thereby consented that the State, and its departments, commissions, boards, institutions, arms and agencies might be sued in the court of claims on claims and demands, liquidated and unliquidated, .ex contractu and ex delicto. Section 8 of the act so provides, and the right has been recognized by this Court in subsequent decisions. Manion v. State Highway Commissioner, 303 Mich 1; Abbott v. Michigan State Industries, 303 Mich 575; McNair v. State Highway Department, 305 Mich 181; Hersey Gravel Co. v. State Highway Department, 305 Mich 333; Detroit Club v. State of Michigan, 309 Mich 721; W. H. Knapp Co. v. State Highway Department, 311 Mich 186; Western Electric Co. v. Department of Revenue, 312 Mich 582.” It would seem that the question whether section 24 of the 1943 act constituted a waiver by the State of immunity from liability, not limited merely to a consent to be sued, has been settled by our previous decisions. In Benson v. State Hospital Commission, supra, as in the case at bar, the court of claims had before it a motion to dismiss, filed by the State. That court granted the motion and dismissed the case. We reversed and remanded the case for further proceedings. The precise argument then advanced by the State was that section 24 of the 1943 act, waiving the State’s immunity from liability, was not germane to the title of the act, hence void. For obvious reasons, a determination of that question necessarily involved a consideration as to what respect, if any, section 24 of the 1943 act amending the court of claims act was outside the scope of the title. The question as to the import of the amendment was necessarily involved in the case, in order to determine whether it was germane to the title. Was it a waiver of governmental immunity, and an assumption of liability, or merely a consent by the State to be sued in the court of claims ? I do not agree with the Chief Justice that the question in the Benson Case was limited solely to whether section 24, PA 1943, No 237, waiving governmental immunity, was unconstitutional; and that all else Avas surplusage. In that case the Court further said (pp 75,76, 81, 82): “Plaintiff has planted his right to sue the State, on PA 1939, No 135. By virtue of this act, the State has consented that it may be sued, in the court of claims. That court has jurisdiction of the instant suit. Conceding that the court of claims has jurisdiction over suits against the State, expressly re f erred to in the title of the act, it is rather difficult to understand why the court should be excluded from having jurisdiction over a defense which may he asserted in such suits, as a bar to recovery. The title of the court of claims act broadly refers to the jurisdiction of the court over all claims that may be asserted against the State, and, in a general way, to the powers and duties of the court. Immunity of the State from liability, for torts alleged to have been committed by its officers and employees, on the ground that the alleged tortfeasors were engaged in a governmental function, is a matter of defense which the State, in the absence of any statute to the contrary, may interpose in any suit brought against the State in the court of claims. It is a matter of defense which, if and when interposed by the State, must be considered and passed upon by the presiding judge in the court of claims. This is an essential part of the powers and duties granted to or imposed upon the court, to consider, and determine, whether the defense is a bar to the suit. Plainly this fact is recognized by the State when it seeks to interpose the defense of governmental immunity in the instant case to prevent recovery by the plaintiff, by claiming that PA 1943, No 237, is unconstitutional, wherefore the State may interpose the defense. In effect, the State now argues that the determination of this question is not within the powers and duties of the court of claims because the title is not broad enough to include it, although at the same time the State submits the question to the court of claims, for decision. * * * “The question as to whether the State might interpose the defense of governmental immunity from liability as a bar to recovery in a suit against the State in the court of claims, is essential to the jurisdiction of that court, and the powers and duties of the presiding judge. In the court of claims act as originally enacted in 1939, section 24 was inserted by the legislature for the obvious purpose of guiding the court in those cases in which the State might seek to defeat the claim by interposing the defense of governmental immunity. The legislature, in section 24, as originally enacted, declared that the State was not waiving the defense of governmental immunity. In 1943 the legislature reversed the rule— such defense was specifically waived, the State definitely assumed liability for the torts of its officers and employees, and declared that ‘jurisdiction is hereby conferred upon the court of claims to hear and determine all claims against the. State to recover damages for injuries to property or for personal injury caused by the misfeasance or negligence of the officers or employees of the State while acting as such officer or employee.’ “We conclude that PA 1939, No 135, as amended by PA 1943, No 237, is not unconstitutional on the grounds asserted by the State in the present case. “We do not overlook the fact that PA 1939, No 135, § 24, as amended by PA 1943, No 237, has since been repealed by PA 1945, No 87 (CLS 1945, § 13862-26 et seq., Stat Ann 1946 Cum Supp § 27.3548(41) et seq.), and a different rule of law enacted governing the defense of governmental immunity in certain cases. However, plaintiff’s cause of action, if any, arose after the effective date of PA 1943, No 237, and before- the effective date of the repeal by PA 1945, No 87,” ' The Chief Justice, after referring to the above-quoted concluding paragraph of said decision, concludes that while the repealing act of 1945.was thus mentioned in said opinion, the effect upon accrued causes of action in nowise represents the considered judgment, of this Court on the question. I do not agree. The entire opinion was concurred in by the. 7 members of the Court who joined in.the decision. The concluding paragraph of the Benson Opinion merely 'refers to the obvious fact that section 24 of the 1943 act had been repealed in 1945 and a different law enacted governing the defense of governmental immunity; and points out that Benson’s cause of action arose while the 1943 act was in effect. - It corresponds to the conclusions earlier reached -in said opinion, which have hereinbefore been repeated at some length. • ' ' The question now comes before the Court under the same circumstances except for the one fact that in the instant case plaintiff’s claim was not filed in the court of claims until after the. effective date of the repealing act in 1945, although her cause of action arose while the 1943 assumption of liability was in effect. The only question raised by the State in the instant case by its motion to dismiss and in its statement of the question involved, both quoted at the outset of this opinion, resolves itself tó this, Did the 1945 repealér wipe out plaintiff’s cause of action against the 'i^tate which arose during the period of time between'the State’s. 1943 waiver of immunity from liability for. damages, and the repeal of such waiver of immunity, in-1945 % The -question before us should not be construed to be whether the 1943 waiver of immunity from liability was a waiver of immunity 'ftoPi suit against the State, :as seems to have been indicated by the Chief Justice. In Cusick v. Feldpausch, 259 Mich 349, after.quoting from many supporting decisions, the Court said: “There being,. at common law, no right.1 of: action against the partners," owners of the automobile, it is contended that.the- repeal of the'former'statute left plaintiff without right .of action against them. * * * “A question is whether the act of 1929 is retrospective. It is wholly prospective in its -language" and structure. Moreover, when it became a law," plaintiff’s right of -action for damages to person and property under the former statute had:accrued' and was in her a vested right, which the -new statute did' not take away. • “Of vested right, the following from 2 Cooley’s Constitutional Limitations (8th ed), p 749: “ ‘It would seem that a right cannot be considered a vested right, unless it is something more than such a mere expectation as may be based upon an anticipated continuance of the present general laws; it must have become a title, legal or equitable, to the present or future enjoyment of property, or to the present or future enforcement of a demand, or a legal exemption from a demand made by another.’ “See, also, 6 RCL, p 308. “In Lewis v. Railroad Co., 220 Pa 317 (69 A 821, 18 LRA NS 279, 13 Ann Cas 1142), it is said: “ ‘All authorities agree that the repeal of a statute does not take away the plaintiff’s cause of action under it for damages for an injury to person or property. They rest on the sound doctrine, expressed in Menges v. Dentler, 33 Pa 495 (75 Am Dec 616), * * * that the law of the case at that time when it became complete is an inherent element in it; and, if changed or annulled, the law is annulled, justice denied, and the due course of law is violated.’ “The above case is cited to the text of 25 RCL, p 938. “ ‘The repeal of a statute does not take away a right of action for damages which have already accrued? “The following from 36 Cyc, pp 1225,1226: “ ‘The repeal of a statute does not operate to impair or otherwise affect rights that have been vested or accrued under the statute while in force; and this rule is applicable alike to rights acquired under contracts and to rights of action to recover damages for torts.’ “And from 1 Lewis’ Sutherland Statutory Construction (2d ed), § 284: “ ‘A law can be repealed by the law-giver; but the rights which have been acquired under it while it was in force do not thereby cease. It would be an act of absolute injustice to abolish with a law all the effects which it had produced. This is a principle of gen eral jurisprudence; but a right to be within its protection must be a vested right. It must be something more than a mere expectation based upon an anticipated continuance of the existing law. It must have become a title, legal or equitable, to the present or future enjoyment of property, or to the present or future enforcement of a demand, or a legal exemption from a demand made by another.’ * * * “By the weight of authority, a statutory right of action for damage to person or property, which has accrued, is a vested right and likewise to be protected.” In the recent case of Van Antwerp v. State, 334 Mich 593, the plaintiff filed a claim in the court of claims, against the State, for damages claimed to have arisen out of illegal proceedings in the probate court for Kent county in 1927 and 1928, resulting in his commitment to the Kalamazoo State hospital many years before the State’s waiver of immunity from liability in 1943. Plaintiff’s claim was filed in the court of claims in 1948, the same year as in the case at bar. While the question was raised here, on the appeal, that plaintiff’s suit was barred by statutory limitation of time, our decision affirming the order of dismissal was based on other grounds. The question was presented-here, and briefed, whether the State had waived its governmental immunity by the court of claims act. Justice Carr, writing for the Court said: “The primary question at issue is whether the State of Michigan has by statute waived the right to assert governmental immunity in cases of the character here involved, and has subjected itself to liability therein. The court of claims was created, and its jurisdiction defined, by PA 1939, No 135, which, as subsequently amended, appears as CL 1948, § 691.101 et seq., as amended by PA 1948 (1st Ex Sess), No 47, and PA 1949, No 253 (Stat Ann 1951 Cum Supp § 27.3548[1] et seq.). In section 8 of the act as originally passed in 1939 the court was given power: “ ‘To hear and determine all claims and demands, liquidated and unliquidated, ex contractu and ex delicto, against the State and any of its departments, commissions, hoards, institutions, arms or agencies.’ * * * “Plaintiff relies thereon, asserting that under its terms the State is liable to him for the damages alleged in his petition, and that the State has thereby waived its right to raise against him the defense of governmental immunity. * * * “On the specific point in issue here the legislature, in the enactment of PA 1939, No 135, did not leave the question of intent to be determined by the application of general rules of construction. In section 24 of said act it was specifically provided: “ ‘This act shall in no manner be construed as enlarging the present liabilities of the State and any of its departments, commissions, boards, institutions, arms or agencies.’ (CLS 1940, § 13862-24, Stat Ann 1942 Cum Supp § 27.3548 [24]). “It will be noted that the quoted section was not in the form of a limitation on, or an exception to, any other specific provision or provisions of the act, but, rather, was a general statement with reference to the. legislative purpose in the adoption of the act, and a, guide for observance by the courts in its interpretation. It was accordingly held in Manion v. State Highway Commissioner, 303 Mich 1, and in Mead v. Michigan Public Service Commission, 303 Mich 168, that the legislature, by the court of claims act, had not waived or abrogated the right to rely on its sovereign immunity. See, also, McNair v. State Highway Department, 305 Mich 181. “It is a fair inference that the legislature in declaring that it was not its intention to enlarge the then existing liability of the State and its agencies had in mind the commonly accepted rule with reference to sovereign immunity. In 49 Am Jur, pp 315, 316, it is said: “ ‘It is well established that by consenting to be sued the State does nothing more than waive its immunity. from action. It does not thereby concede its liability in favor of the claimant or create.a cause of action in his favor which did not theretofore exist. Thus, liability of the State for tort cannot be predicated upon the fact that the State has entered its general statutory consent to be sued, directing the manner in which suits may be brought by those having claims against the State. Neither does a special statute permitting suits on particular claims concede the justice of the claims. Statutory consent to be sued merely gives a remedy to enforce a liability and submits the State to the jurisdiction of the court, subject to its right-to interpose any lawful defense.’ ” In comparing the case under consideration with the Benson Case, Justice Carr wrote: “Since plaintiff seems to rely on this decision, it may be further noted that under the averments of his petition it does not appear that any cause of action in his behalf against the State, under the above-quoted amendment, arose during the period that it was in effect. He raises no question based on the theory that he became vested with rights of which he may not be deprived by virtue of any provision of the statute that has since been repealed. * % * “In substance, it is appellant’s claim that with section 24 eliminated from the original act the provision of section 8, above quoted, becomes subject to a broader interpretation than was previously given it, and that it must now be construed as imposing liability on the State in all actions, ex contractu and ex delicto, and as abrogating the doctrine of governmental immunity in all such cases. Such claim is not justified by a fair interpretation of the language of the provision, nor is it in accord with the intent evidenced by legislative action. * * * “The claim that the State of Michigan has by statute waived the right to rely on its sovereign immunity in the instant case is not tenable. The provision of section 8 of the court of claims act, above quoted, may not be construed as claimed by appellant.” Thus the opinion conforms to the conclusion reached by the earlier decisions of the Court, that by consenting to be sued, in section 8 of the court of claims act, the State did not thereby waive the right to rely on its sovereign immunity from liability as a defense in said suit. By section 24 of the 1943 act the State assumed liability for damages arising out of the negligence of State officers or employees which the plaintiff claims was the cause of her injury. That act did not merely provide a forum, or procedure to be followed. It gave rise to a cause of action which had not existed prior to its adoption-—a right to recover damages from the State which had not existed prior thereto-because of the governmental immunity of the State-from responding in damages for such cause of action. The 1945 amendment was not an act which merely deprived plaintiff of the right to sue the-State. It is not retroactive. It operated in futuro.. She still had the right to sue the State in the court of claims, under section 8 of the act. Furthermore, plaintiff has a vested right in a cause of action which arose while section 24 of the 1943 act creating that right was in effect. I do not agree that the 1945 amendment merely operated to deprive plaintiff of the right to bring suit against the State in the court of claims. Insofar as her right to recover damages in such suit as against the defense of governmental immunity, she has a vested right in. her cause of action which arose at a time when the State had. waived the defense of governmental immunity and expressly assumed such liability. Our decisions are not open to the claim that the State has waived governmental immunity and assumed liability for damages where the cause of action arose either before or after the period of time (1943-1945) during which the State had expressly assumed liability. It was plainly pointed out by Justice Carr in the Van Antwerp Case that where the cause of action arose outside of the period during which the State had waived its defense and assumed liability, the State might defend on the ground of governmental immunity. To further repeat his opinion in part, Justice Carr quoted with apparent approval from 49 Am Jur, pp 315, 316, as follows: “ ‘It is well established that by consenting to be sued the State does nothing more than waive its immunity from action. It does hot thereby concede its liability in favor of the claimant or create a cause of action in his favor which did not theretofore exist. Thus, liability of the State for tort cannot be predicated upon the fact that the State has entered its general statutory consent to be sued, directing the manner in which suits may be brought by those having claims against the. State. Neither does a special statute permitting suits on particular claims concede the justice of the claims. Statutory consent to be sued merely gives a remedy to enforce a liability and submits the State to the jurisdiction of the court, subject to its right to interpose any lawful defense.’ ” The basic difference between a vested right of action created by statute, leaving a common-law right of action remaining, and the repeal of a remedy, rule of evidence, or a mode of procedure, was pointed out in Bejger v. Zawadzki, 252 Mich 14. While a majority of the Court there held that the repealer had taken away the statutory right to double dam ages which it had created, the unanimous conclusion of the Court was that the cause of action remained. I differ with the Chief Justice in his answer to his. inquiry, stated thus: “Decision must depend upon analysis of the essence of the State’s waiver of sovereign immunity in the 1943 act. Did it impose a liability on the State-under certain circumstances and thus create a cause-of action, a right, or did it amount merely to a consent to be sued, the affording of a remedy?”' I hold that section 24 of the 1943 act did impose-a liability on the State under the circumstances, referred to therein, and was not merely a consent to-be sued. Therein we differ. Plaintiff’s-vested right in her cause of action against the State, while section 24 of the 1943 act was in effect, was hot taken away by the 1945 repealer. We should not say, on the assumption that it took away the right to sue-the State, that the 1945 repealer also deprived the plaintiff of her right to her cause of action. In Duke Power Co. v. South Carolina Tax, Commission (CCA), 81 F2d 513, cited and quoted by the Chief' Justice, the court concluded: “As there is no separate provision of the repealing-statute dealing with.the remedy, the entire statute would necessarily be held invalid insofar as it applied to transactions occurring prior to its passage. The question in this respect is clearly ruled by the-recent decision of the supreme court in Lynch v. United States, 292 US 571, at page 586 (54 S Ct 840, 78 L ed 1434). A statute which attempts by the same-provision- to destroy both a right and a remedy succeeds in destroying neither.” Consequently, I do not agree with the conclusion of the Chief Justice that: “The 1943 act accomplished nothing more than waiver of immunity from suit. Language of the act expressive of a purpose beyond that was mere surplusage, inasmuch as liability in tort arises under the general laws of the State. Since we conclude that the 1943 act did no more than give consent to be sued, it follows that the repealing act of 1945 operated only as a withdrawal of that consent. Such withdrawal stands as a barrier to plaintiff’s suit despite the accrual of her cause of action prior to the withdrawal.” Under section 8 of the act, plaintiff had a right to sue the'-State in the court of claims. During the-period of time between the effective date of PA 1943, No 237, and the repeal of section 24 in 1945, the plaintiff had a vested right in a cause of action against the State, “to recover damages for injuries to property or for personal injury. caused by the misfeasance or negligence of the officers or employees. of the State while acting as such officer or employee.” ■ ¡The legislature, by PA 1943, No 237, had so declared, had conferred upon the court of claims the power “to hear and determine' all such claims,” and had declared that “the State hereby assumes liability for such acts.” For obvious reasons, the merits of plaintiff’s claim are not here for consideration. The' order denying-the State’s motion to dismiss is affirmed and the case remanded for further proceedings. No costs, appellee not having filed a brief in this Court. Adams, Btxtzel, Bushnell, Sharpe, and 'Reid,1 JJ.,, concurred with Boyles, J. 48 Stat 11.—Reporter. PA 1939, No 135.—Reporter. PA 1939, No 135, § 24, as amended by PA 1943, No 237.—Re-porter. PA 1939, No 135. This section was amended by PA 1941, No 137, and PA 1945. No 199. In each instance the language quoted was retained.—Reporter.
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Boyles, C. J. Plaintiff and defendant entered into an agreement whereby the defendant agreed to sell and the plaintiff agreed to buy a certain Chevrolet truck for $2,650. Plaintiff paid $500 down on the purchase price and the balance of $2,150, plus interest $102, was to be paid at the rate of $50 per week to be deducted from certain weekly earnings of the plaintiff. The defendant installed a concrete mixer on the truck, for the purpose of delivering RediMix concrete for the defendant who was engaged in the Redi-Mix concrete business. Plaintiff agreed to use the truck and mixer exclusively to deliver ready-mixed concrete for the defendant, for which the plaintiff was to receive an agreed price per yard for delivery of the mixed concrete. The parties agreed in writing that if the plaintiff no longer desired to continue handling concrete for the defendant, the defendant should have the option and exclusive right to purchase the truck from the plaintiff at a fair market price, and if they could not agree on the price they should he hound by the decision of 3 disinterested appraisers as to the price. Ownership of the Rex Chain Belt Mixer installed on the truck by the defendant was retained by him, to be returned to him when their hauling agreement terminated. The truck and mixer were used by plaintiff for hauling mixed concrete for the defendant, and the defendant deducted from plaintiff’s earnings for delivering the concrete until the balance of the purchase price of the truck and interest had been paid in full. A disagreement arose between the parties because the plaintiff was found to be working elsewhere instead of delivering concrete for the defendant and they terminated their hauling agreement. The defendant had never delivered to the plaintiff a certificate of title for the truck. The plaintiff several times demanded the certificate and the defendant refused it, claiming that their agreement one of employment, not a sale of the truck. Thereupon plaintiff started this suit to recover the amount paid for the truck, resulting in judgment for the plaintiff. Defendant appeals. The appellant insists that there was not a sale of the truck but that their agreement was one for employment only—that the truck still belongs to the defendant. The case was tried by the court without a jury, the court found that there was a sale and that the purchase price had been paid in full. The testimony does not preponderate in the opposite direction. Plaintiff was entitled to have a certificate of title to the truck delivered to him. CL 1948, § 256.103 (Stat Ann § 9.1474) in effect at the time of the transaction. Plaintiff has paid for the track in full. The defendant now has the track, the money, and the title-which he has refused to transfer to plaintiff. The court properly entered judgment for the plaintiff for the full amount paid by plaintiff to defendant for the track. Bos v. Holleman De Weerd Auto Co., 246 Mich 578; Scarborough v. Detroit Operating Co., 256 Mich 173. Affirmed, with costs. Beid, North, Dethmers, Butzel, Carr, Bushnell, and Sharpe, JJ., concurred. Repealed September 23, 1949, with a saving clause (PA *1949, No 300, §§ 921, 922 [Stat Ann 1949 Cum Supp §§ 9.2621, 9.2622]), but substantially re-enaeted by PA 1949, No 300, § 233 (Stat Ann 1949 Cum Supp § 9.1933).
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North, J. By their suit plaintiffs seek to enjoin defendants from constructing 2 houses, one on lot 59,,-the other on lot 60 of Chas. W. Babcock’s subdivision in the village of Grosse Pointe Farms, Wayne county, Michigan. Plaintiffs’ claim to relief is on the theory that the proposed construction of these houses is in violation of an applicable building restriction covering this subdivision. After hearing on the merits a decree was entered dismissing plaintiffs’ bill of complaint, and plaintiffs have appealed. Plaintiffs are the owners of and occupy their residence located on lot 15 and part of lot 14 of the subdivision. The individual defendants, Charles W. Babcock and his wife, Maylou M. Babcock, are the practical owners and in full control of the defendant Plome Engineering Company, a Michigan corporation, from which plaintiffs purchased their property. Likewise the' C. W. Babcock Organization, Inc., a Michigan corporation, is controlled by defendants Babcock. For convenience we shall herein consider the case as one in which relief is sought against the Babcocks as individual defendants, they being the promoters of the Chas. W. Babcock subdivision. Owing to the fact that the streets and-lots of this subdivision are not laid out in exact north and south directions or east and west directions, which has led to some confusion in the record and briefs herein, we shall denominate Moross road and Hillcrest avenue as east and west streets, and Chalfonte avenue and Piche avenue as north and south thoroughfares. Prior to December 12, 1945, defendants, having purchased it as acreage, were the owners of the land in this Babcock subdivision. On December 12, 1945, defendants caused to be recorded a plat which had been approved by the proper authorities of the village of Grosse Pointe Farms; but such approval was granted upon condition that defendants should place on record certain restrictive covenants affecting-the lots in the accepted plat, all of which at the time were owned by defendants. Accordingly the Home Engineering Company did record such restrictions on the 13th day of December, 1945, the same being dated December 12, 1945. Among other provisions the restrictions contained the following: “All residential buildings erected, on lots east of Chalfonte avenue shall be of the same character and general construction as the houses immediately east of said lots and located in zone 'A’ of the village of Grosse Pointe Farms zoning district (which is not in but lies next east of the Chas. W. Babcock subdivision). The above restrictions shall be known as the general restrictions covering said subdivision and may be incorporated in more specific restrictions at the time said land is ready for final development.” We shall hereinafter refer to the foregoing as the “A” restrictions. Nearly 3 years after the above restrictions were hied and in November, 1948, the Home Engineering Company, by its president Charles W. Babcock, executed and caused to be recorded in the Wayne county records certain so-called “Supplemental Restrictive Covenant of Charles W. Babcock Subdivision,” from which we quote: “Whereas, the undersigned is desirous of imposing a more specific set of restrictive covenants than the general restrictions covering the subdivision [referring to the 1945 so-called restrictive covenant], * * * “And whereas, said undersigned is desirous of supplementing said recorded restrictions with certain objective clauses hereinafter set forth, * * * “Witnesseth: * * * “5. No building shall be erected, placed, or altered on any building plot in this subdivision until the building plans, specifications and plot plan showing the location of such building have been approved in writing as to conformity and harmony of external design with existing structures in the subdivision, and as to the location of the building with respect to toimgraphy and finished ground elevation, by a committee composed of Charles W. Babcock, James L. Babcock, and Maylou M. Babcock.” We shall hereinafter refer to the above noted 1948 restrictions as the “B” restrictions. It was after the “A” and “B” restrictions were made matters of record and in January or February, 1949, that plaintiffs purchased their property from defendants for $25,000. The grounds upon which plaintiffs seek injunctive relief in this case are their claim that neither of the houses which defendants propose to construct complies -with the restrictive covenant above quoted that: “All residential buildings erected on lots east of Chalfonte avenue shall be of the same character and general construction as the houses immediately east of said lots;” and also that defendants propose to erect within the restricted area a row of what may be designated as “stock type houses” in violation of the restrictive' provision which “contemplated the development of said subdivision as a high-class residential area and in particular contemplated that the area east of Chalfonte avenue shall he developed with larger and better homes than that west of Chalfonte avenue.”, We are not in accord with defendants’ untenable contention that the “B” restrictions are the only restrictions applicable to the property, the same having supplanted the “A” restrictions; and that the record discloses no violation of the provisions of the “B” restrictions. In this connection it is to be noted that the provision in the “A” restrictions that residential buildings to be erected east of Chalfonte' avenue shall be of the same character and general construction as the houses located immediately east thereof is not contained in the “B” restrictions. It is defendants’ claim that since they were at the time the owners of all the lots in the restricted area they, could modify the restrictions at will. Such conten-' tion is not tenable for the reason that the condition of defendants’ recording the plat of this subdivision' Avas that they should make of record the restrictions under consideration. And further, at the very outset in restrictions “B” defendants referred to such restrictions as “supplementing said recorded restrictions,” referring to the “A” restrictions-. And still further, the original “A” restrictions were at the time of plaintiff’s’ purchase a matter of record, never having been vacated. Although the issue is in nowise presented by the pleadings, defendants make the further contention that the restrictive covenants upon which plaintiffs rely “are meaningless because of their vagueness and uncertainty.” In our opinion such a defense cannot be urged by these defendants who sold to plaintiffs the property they occupy. Defendants, of 'their own volition, drafted and caused to be recorded both restrictions “A” and “B.” Certainly the quoted provision from restrictions “A” was intended to mean something. It should not be construed to be of less effect than had it been embodied in a restrictive covenant in defendants’ deed to plaintiffs. Notwithstanding the foregoing, it appears from the opinion filed by the trial judge that he concluded: “The restrictive agreements * * * are of such a vague and general character as to be well-nigh meaningless.” It was on that ground, rather than that defendants’ proposed buildings would not violate the restrictions, that t£e trial court entered the decree dismissing plaintiffs’ bill of complaint. In this respect we think the trial judge was in error. Our review of the record brings the conclusion that an issue of fact is squarely presented as to whether or not the buildings which defendants propose to construct on ITillcrest avenue, east of Chalfonte avenue, are of such a character that they conform to defendants’ restrictive covenant that: “All residential buildings erected on lots east of Chalfonte avenue shall be of the same character and general construction as the houses immediately east of said lots.” "We hear this case de novo and in so doing have given careful consideration to the contents of the record, particularly the photographic exhibits contained therein. These exhibits conclusively disclose that the 2 houses which defendants propose to build (as well as like houses which defendants plan to build on other similarly restricted lots), are of a very different character than the houses east thereof to which the restrictive covenant refers. The record contains photographs of approximately 30. dwellings within the area to the east to which reference is made in the “A” restrictive covenant. These and oral testimony show quite conclusively that defendants’ proposed structures are not of “the same character and general construction as the houses immediately east” of defendants’ lots. The houses to the east show distinct, individual design. The roof lines are markedly varied. These houses have a higher percentage of brick or brick veneer finish. As compared with defendants’ proposed houses, the houses, to the east have more square feet of floor area and are of greater .value, approximately $25,000 each. The houses defendants propose to construct will sell for less than $15,000 each. In addition to the 2 houses directly involved in this suit, defendants have obtained building permits for 4 other houses of similar structure -to be erected on lots next east of lots 59 and 60. We think it fairly appears that defendants presently propose to construct like houses *on both the north and south side of Hillcrest avenue in the block next east of Chalfonte avenue. Defendants have already constructed a row of such houses on the northerly side of Hillcrest avenue in the block next west of Chalfonte avenue, to which the quoted restrictive covenant does not apply. If defendants are not restrained from carrying out their present plan on that portion of Hillcrest avenue east of Chalfonte avenue, which is covered by the restrictive covenant, there will be constructed a row of stock-designed houses. They would be one-story or one-story-and-a-half in height, of low cost, cheap construction, substantially of uniform roof lines, and alike in floor plans. The result would be quite identical with the row of stock patterned houses that defendants have constructed on Hillcrest avenue in the block nest west of Chalfonte avenue.' If defendants’ proposed construction is permitted it obviously will materially depreciate the character and desirability of other properties in the restricted locality, including that which plaintiffs purchased of defendants for $25,000. The restrictions on which plaintiffs rely were drafted by defendants, and in equity ought not at defendants’ behest be held meaningless or unenforceable. Especially is this true since, according to the testimony of plaintiff Gerald T. Murdock, the defendant Charles W. Babcock, at the time the purchase of plaintiffs’ property from defendants was being negotiated, represented that future construction in the restricted area would be similar to that east of plaintiffs’ property on the south side of Moross road. In our judgment the record discloses a case in which plaintiffs are entitled to injunctive relief. In arriving at the above conclusion we are mindful the record discloses that the plans and specifications which defendants have submitted for building the houses in suit comply with all the requirements of the applicable zoning ordinance in the village of Grosse Pointe Farms. Wé are also mindful it appears from the record that certain persons who are not owners of property in the Babcock subdivision have been instrumental in encouraging and aiding plaintiffs financially in bringing this suit. In our judgment these circumstances do not militate against plaintiffs’ right to relief, if otherwise established. The pertinent portion of plaintiffs’ prayer for relief is as follows: “That the defendants, their agents and employees herein be enjoined and restrained, both temporarily and permanently, from constructing and building and from continuing with the construction or building of the houses on lots 59 and 60 of Chas. W. Babcock’s Subdivision as represented by exhibits C and D annexed to the bill of complaint herein [being exhibits 1 and 2 in this record], “That the defendants, their agents and employees be enjoined and restrained from constructing and building any houses on lots east of Chalfonte avenue in said subdivision described in the foregoing bill of eomplaint unless same conform to the recorded restrictions affecting said premises and in particular unless same are of the same character and general construction as the houses immediately east of said lots' and located in the zone 'A’ in the village of Grosse Pointe Farms zoning district.” Plaintiffs are entitled to the relief sought as above noted. A decree may be taken in this Court accordingly, with costs of both courts to plaintiffs. Boyles, C. J., and Reid, Dethmers, Butzel, Carr, BusHNELL,»and Sharpe, JJ., concurred. Per Curiam. Defendants have pending a motion for rehearing in which they urge the necessity of fixing more definitely the scope of the injunctive relief granted plaintiffs than is specified in our opinion heretofore filed herein. The decree has not yet been entered. When presented for settlement the decree may provide as stated in our opinion reported in 329 Mich 127, and for further certainty may also provide that within the restricted area defendants are en-' joined from constructing or maintaining a dwelling whieh shall not comply with the following: (1) As to present cost or present value it shall conform to and be approximately the same as would be the present cost or present value of the houses immediately east of the lots involved in this suit and located in zone “A” in the village of Grosse Pointe Farms zoning district. See Ardmore Assn. v. Bankle, 329 Mich 573. (2) Each of the dwellings constructed or maintained by defendants in the restricted zone shall have a livable floor space of at least approximately 1,400 square feet. (3) Adjacent or approximately adjacent dwellings shall be materially varied in their exterior appearance to avoid the undesirable effect of the new structures appearing to be of a stock pattern or design, as was done in constructing the dwellings immediately east of the area herein involved. (4) Further, as to any dwelling wholly or partially erected within the restricted area whieh does not comply with the recorded restrictions and with our decision herein, defendants within a reasonable time after the date of the decree herein shall so alter such dwelling as to avoid noncomplianee or remove same. (5) The decree may also provide that this case be remanded to the trial court with jurisdiction to hear, determine and control all matters pertaining to violations of our decree in the instant ease. Plaintiffs shall prepare, serve and notice a decree for settlement in accordance herewith. Defendants’ motion for rehearing is denied. Reid, C.J., and Boyles, North, Dethmers, Butzel, Carr, Busiinell, and Sharpe, JJ., concurred.
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Dethmers, J. Defendant Lawrence Fleischman, a minor, was the owner of a business operating under the registered assumed name of Pontiac Carpet & Linoleum Company. The business was operated by defendant Arthur Fleischman as attorney-in-fact for the minor’s guardian, defendant Arthur H. Eice, as authorized by an order of the probate court. Plaintiffs George and Nora Payette contracted for the purchase of linoleum and its installation in their home by the company. An employee of the latter, while engaged in such installation, negligently broke a valve at the gas meter, permitting gas to escape, become ignited and explode with resultant damage to the Payette home and furnishings. The infant defendant did not participate in and had no direction, control or supervision over the operation of the business nor over the employee in question, was not present at and had no personal connection with the work being done nor the accident. This suit for recovery of the damages-was brought against the minor defendant, his guardian and the latter’s attorney-in-fact. The trial court dismissed the suit against the guardian and his attorney-in-fact on the ground that the statute of limitations had run against them. Plaintiffs do not question the correctness of the trial court’s order in that regard. The court also dismissed the suit against the infant defendant. The controlling question presented by plaintiffs’ brief is whether the minor is liable for the mentioned damages. Plaintiffs cite Lothrop v. Duffield, 134 Mich 485, as holding in the affirmative. We do not so read that case. Defendants rely on Brown v. Wood, 293 Mich 148 (127 ALR 1436). In that case the infant defendant contracted to transport certain persons for hire in his automobile. While transporting them he became involved in an accident, injuring his passengers. This Court held the defendant not liable, saying: # “The controlling question is whether under the circumstances of this case the defendant Archie Wood, being a minor and the accident having occurred while the minor plaintiffs were passengers in his automobile being carried for a consideration, can be held liable in this tort action. “It is elementary that an infant’s contract, with certain exceptions not here involved, is voidable. And as a general rule an infant is liable for Ms torts provided he possessed the capacity, mental or physical or both, requisite to the commission of the tort with which he is charged. 1 Cooley on Torts (áth ed), p 194 et seq., § 66. But it is also a general rule that if the tort with which an infant is charged is so connected with his contract that commission of the tort constitutes a breach of the contract, or if the tort is predicated on a transaction with the infant based upon contract, so that holding the infant liable in tort would in effect enforce a liability arising out of his contract, then, since the infant cannot be held ex contractu, he cannot be held liable for his tort. The injured party is not permitted to enforce against the infant indirectly by an action in tort a liability which he could not enforce directly against the infant by an action based upon contract.” In 27 Am Jur, Infants, § 90, it is said: “The tort must be the infant’s own personal act. He is not liable upon the doctrine of respondeat superior. Upon the ground that an infant’s appointment of an agent or servant is not binding upon him, it is uniformly held that an infant is not liable for torts committed by his agent or servant.” See, also, Covault v. Nevitt, 157 Wis 113 (146 NW 1115, 51 LRA NS 1092, Ann Cas 1916A 959); Robbins v. Mount, 27 NY Super Ct 553 (4 Robt [NY] 553, 33 How Pr [NY] 24); Burns v. Smith, 29 Ind App 181 (64 NE 94); Johnson v. Turner, 319 Ill App 265 (49 NE2d 297); 103 ALR 487; Lowery v. Cate, 108 Tenn 54 (64 SW 1068, 57 LRA 673, 91 Am St Rep 744); Armitage v. Widoe, 36 Mich 124. Plaintiffs concede that the general rule is as last above indicated, but contend that an exception should be made here because the operation of the business by the guardian’s attorney-in-fact was previously approved by order of the probate court. We are cited to and aware of no authority holding that the order of the probate court could have the effect of rendering the infant defendant liable, as principal, for the tort of an agent. Affirmed, with costs to defendants. Boyles, C. J., and Reid, North, Butzel, Carr, Btjshnell, and Sharpe, JJ., concurred.
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Carr, J. The questions involved in these cases arise out of certain proceedings in the circuit court of Genesee county. The material facts are not in dispute. On March 2,1948, the prosecuting attorney of said county filed a petition in the court setting forth that information had been placed before him indicating that certain crimes had been committed within the county, and further alleging that, if such information were false, the crime of perjury had been committed. An inquiry to be conducted in accordance with the so-called one-man grand-jury provisions of the criminal code of the State was asked, for the purpose of determining the truth or falsity of the charges of criminal conduct to which the petition referred. The prosecutor further asked that “necessary procedure be taken to designate or appoint or have designated or appointed, in accordance with the statutes in such cases made and provided, one of the circuit judges of the seventh judicial circuit or one of the judges of another judicial circuit for the State of Michigan, to conduct said one-man grand-jury inquiry and investigation,” and that witnesses be subpoenaed for tbe purpose of taking testimony. At the time tbe petition was filed tbe Honorable Paul Y. Gadola was acting as presiding judge of tbe Genesee circuit court, and, on the same day, be made an order stating that on tbe 8th of March following tbe court would convene at tbe courthouse in tbe city of Flint for tbe purpose of conducting an investigation as prayed. Tbe order further directed tbe attendance of tbe prosecuting attorney of tbe county, or someone duly appointed in bis place, tbe official court reporter, and tbe sheriff and deputies, for tbe purpose of rendering assistance in such investigation. Tbe clerk of tbe court was further directed to issue subpoenas to witnesses on tbe request of tbe prosecutor. Under date of March 16,1948, Judge Gadola made a further order in tbe matter, referring to tbe petition of tbe prosecuting attorney and designating Circuit Judge Karl K. Leibrand to conduct tbe investigation “together with this court, in an advisory capacity or otherwise, as this court may from time to time designate.” Tbe order recited that Judge Leibrand had been assigned to tbe Genesee circuit by tbe presiding circuit judge of tbe State. Thereafter Judge Leibrand proceeded to conduct tbe investigation. Witnesses were called and examined by him, findings made, and warrants issued including tbe warrants involved in tbe above entitled cases. He also made an order appointing Melvin E. Orr, a-member of tbe bar of Michigan, to assist in* tbe investigation, and appointed investigators and an official stenographer, requiring that they take tbe statutory oath of secrecy. It further appears that Judge Gadola made and entered an order in terms authorizing the judge conducting the investigation to appoint a member of the bar to assist therein, and that he and Judge Leibrand joined in an order designating Mr. Orr as special assistant prosecuting attorney of Genesee county to aid and assist the grand-jury investigation. Judge Gadola also made an order authorizing payment to another attorney for time spent as special assistant prosecutor in connection with the grand jury; and further, by order filed September 16, 1948, directed that cases resulting from the investigation should be tried before a circuit judge from without the seventh judicial circuit, assigned to such circuit by the presiding circuit judge of the State. The orders appointing special prosecutors were made at the request of the prosecuting attorney of the county by petitions addressed to the court. The warrants issued for the arrest of the defendants in the instant cases were duly served. In the case of People v. Pickett, an examination was held before the Honorable H. Russel Holland, one of the circuit judges of the Oakland county circuit court, sitting in Genesee county by designation in accordance with the statute. In People v. Birch, no examination was held. Identical motions were presented in both cases, asking for the dismissal of the warrants on the ground that Judge Leibrand had no •authority to issue them, and alleging further that the petition of the prosecuting attorney was fatally defective because of failure to aver specific facts, that it was insufficient to authorize the holding of the investigation, and that the statutory provisions in accordance with which such investigation was conducted were unconstitutional and void. Judge Holland held that the grounds on which the motions were based, other than those relating to the authority of Judge Leibrand, were without merit. On the basis of the proceedings taken in the Genesee circuit court he came to the conclusion that Judge Gadola, by his order of March 2, 1948, had constituted himself the grand juror to conduct the inquiry, that the subsequent order directing Judge Leibrand to act in the mattér amounted to an attempted delegation of the exercise of the authority that Judge Gadola had assumed, that such action was not authorized by the statute, and that it was in consequence void. An order was entered granting the motions to dismiss the warrants. On leave granted, an appeal on behalf of the people of the State has been taken to this Court by the prosecuting attorney of Genesee county. The first question for consideration is whether by his order of March 2,1948, Judge Gadola constituted himself a grand juror for the purpose of conducting the investigation. It is, we think, significant that the order did not specifically so provide. As before noted, the petition of the prosecutor to which the order referred asked for an assignment of the inquiry to some judge of the local circuit or to a visiting judge. ¥e think it a fair inference from the specific language used that Judge Gadola, acting as presiding judge of the circuit, intended to recognize the fact that the petition had been filed for an investigation, and to indicate by his order that the court regarded it as requiring judicial action. The subsequent order in terms assigning the investigation to Judge Leibrand indicates the interpretation placed by Judge Gadola on the prior order. He did not undertake to transfer the matter from himself to Judge Leibrand, but, rather, designated the latter to conduct the investigation. Judge Leibrand thereupon proceeded to act in the matter in accordance with the provisions of the statute. He took testimony, determined that there was probable cause to believe that the crimes charged against defendants, as well as offenses by other parties, had been committed, and issued warrants accordingly. As we view the situation, Judge G-adola, by his orders in question, was undertaking to act in his capacity as presiding judge of the circuit. As such he was charged with certain duties and responsibilities, and vested with authority, with reference to the carrying on of the work of the court. The order authorizing Judge Leibrand to conduct the investigation as well as the orders designating special assistant prosecuting attorneys of the county to assist in the investigation, and providing for compensation of one of such assistant prosecutors, were, we think, intended as an exercise of such authority and a discharge of incident duties. They should be construed accordingly. Obviously the order of September 16, 1948, with reference to the trial of cases resulting from the investigation, was made for the same reason. It was not a part of the investigation held under the statute and the petition of the prosecuting attorney, and a like interpretation should be placed on the other orders made by Judge Gadola in connection with the matter. The situation here is not materially different from that presented in People v. Phelps, 261 Mich 45. There the defendant was prosecuted for perjury, the charge being based on testimony given by him in a one-man grand-jury proceeding. The investigation was conducted in Jackson county by the judge of another circuit who took action on the petition of the prosecuting attorney, conducting the investigation in accordance with the statute. The trial court granted a motion to quash the information and dismiss the cause on the ground that the judge conducting the investigation had no jurisdiction to do so. He had, however, been duly assigned by the presiding circuit judge of the State to hold court in Jackson county, and this Court, in reversing the order of dismissal and upholding the procedure taken, declared that: “A circuit judge sitting in any circuit on assignment of the State presiding circuit judge has full jurisdiction of a circuit judge.” So in the instant case Judge Leibrand, having been duly assigned by the presiding circuit judge of the State to hold court in Genesee county, had all the authority of a circuit judge in that county. The fact that the assignment did not expressly designate what matter, or matters, he would hear is not material. See, also, People v. Wolfson, 264 Mich 409. For the reasons indicated, we conclude Judge Gadola did not by his order constitute himself a grand juror, that the designation of Judge Leibrand to conduct the investigation as a part of the work of the circuit was authorized and proper, that Judge Leibrand alone acted in conducting the investigation, which, under the statute, the petition therefor having been filed by the prosecuting attorney of the county, was mandatory, and that he was invested with full authority in the premises. The reason assigned for dismissing the warrants in the instant cases was not well founded. On behalf of defendants it is argued that the petition filed by the prosecuting attorney was not sufficient to justify the holding of an investigation under the statute, and that the order of dismissal should be sustained for that reason. It is claimed that the prosecutor failed to allege facts tending to establish that any specific crime or crimes had been committed. The purpose of the statutory provisions pursuant to which the investigation was held was, as indicated by the title of the act as first enacted in 1917 (PA 1917, No 196), to authorize “proceedings for the discovery of crime.” To that end the complaint by which the proceeding is initiated may be on information and belief, and action may be taken by tbe justice or judge to whom the complaint is submitted if he has “probable cause to suspect that .any crime, offense, misdemeanor or violation of any city ordinance shall have been committed within his jurisdiction, and that any person may be able to give any material evidence respecting such offense.” To the end that the purpose of the statute may be .accomplished it should, as pointed out in People v. Wolfson, supra, receive a liberal construction. The petition filed by the' prosecuting attorney in the proceedings involved in the instant cases set forth that he had information leading him to the conclusion that “certain crimes and offenses” had been committed in Genesee county, or, in the alternative, that perjury had been committed with reference thereto. In People v. St. John, 284 Mich 24, the defendant’s conviction on a charge of perjury committed in the course of a one-man grand-jury investigation was affirmed by an evenly divided court. It was contended in his behalf that the petition for the investigation was insufficient and that, in consequence, the proceeding was wholly void. In that case the petition filed made no reference to any specific offense, while the complaint on which Judge Lei-brand acted in the instant matter indicated that whether perjury had been committed was a proper matter for inquiry. Ordinarily a prosecutor preparing such complaint cannot be specific as to particular offenses or persons. Investigation under the statute is sought for the purpose of determining whether there is probable cause to believe that violations of the law have occurred within the jurisdiction, and, if so, the details thereof, and the guilty parties. We agree with the conclusion of Judge Holland that the petition by which the grand-jury investigation conducted by Judge Leibrand was initiated was not fatally defective. The claim advanced by defendants, as to the constitutionality of the statute, does not require discussion. The matter has been before this Court in prior cases and the validity of the law has been upheld. See In re Slattery, 310 Mich 458 (certiorari denied, 325 US 876 [65 Sup Ct 1553, 89 L ed 1993]). See, also, People v. Hancock, 326 Mich 471. The order from which the appeal has been taken is reversed, and the causes are remanded for further proceedings therein. Boyles, C. J., and Reid, North, Dethmers, Butzel, Bushnell, and Sharpe, JJ., concurred. Code of ciiminal procedure, eh 7, §§ 3, 4 (CL 1948, §§ 767.3, 767.4 [Stat Ann § 28.943 (§ 4, as amended by PA 1947, No 33 [Stat Ann 1947 Cum Supp § 28.944])]). Changes in statute at legislative session of 1949 are not involved. See CL 1948, § 691.202 (Stat Ann § 27.292).—Reporter.
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