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Dethmers, C. J.
. The above suits, between the-same parties, for specific performance of alleged contracts for the sale of 2 different pieces of land, involve similar facts and identical questions. Plaintiff learned that defendant commission had the 2 surplus properties for sale. He made written offers to purchase, at specified prices and terms, accompanied by deposits of earnest money. In-the one case the-action of defendant commission was as folloAvs:
“Following discussion, Commissioner O’Haramoved tentative approval of this offer for posting.” Supported and carried.
In the other case:
“Following discussion, Commissioner O’Hara moved approval of the offer for posting, reserving-the right to reject any and all bids.” Carried.
Thereafter, the course regularly pursued by defendant- commission in such instances, with Avhich plaintiff was then fully familiar, was followed in both cases; namely, there was a posting of plaintiff’s offer, as provided in the motions adopted by defendant; that is'-'to say, a so-called notice of sale was published and circulated announcing the fact and amount of such offer on the property in question, that the offer had been approved by the commission -and was being held under the regulations governing the sale of surplus property, that subsequent increased offers of not less than 10% more would be accepted, if received on or before, a certain deadline date, and that defendant reserved the right to reject .any and all bids.
In the 1 case, no other bids were received on or before the deadline, whereupon the plaintiff, after being told by 1 of defendant’s employees that the property was his, handed to such employee a cashier’s check, representing the balance of the down payment under the terms of the offer, and received from the latter a receipt therefor. Plaintiff also ■executed a land contract which was prepared for that purpose by defendant’s employees but never executed by defendant. Defendant later received a higher offer, refused to execute the land contract with plaintiff and attempted to return his deposit.
In the other case, offers were made by other persons before the deadline and this occurred as relates to several successive postings, but plaintiff made the final and highest offer entered prior to the .deadline specified in the last posting. Defendant rejected plaintiff’s offer.
Prom decrees dismissing his bills of complaint plaintiff brings these appeals. The question presented is whether plaintiff has established acceptances by defendant of his offers to purchase.
Upon receipt of plaintiff’s offers defendant set in motion the usual procedure, above outlined, with which plaintiff was familiar. The only tifficial actions taken by the defendant commission, namely, adoption of the above motions, amounted only to approvals of the offers for posting but did not constitute unconditional acceptances. Analogous is Schultz v. Carlson, 313 Mich 432, in which we held that an administratrix’s acceptance of an offer to buy the estate’s realty subject to confirmation by the probate court did not constitute an agreement enforceable' in a suit for specific performance. The postings themselves, made in pursuance of the motions, were not acceptances, but merely invitations for further bids. The records disclose no express or implied agreements by defendant to accept either the initial or the highest subsequent offers received on or before the deadlines fixed in the postings; nor was it shown that that had been the uniform practice of defendant upon which plaintiff would have had a right to rely. The action of defendant’s employee, in the 1 case, in stating to plaintiff that the property was his and in accepting a down payment and giving plaintiff a receipt therefor was not shown to have1 been authorized by the defendant commission and was, therefore, not binding on it. Jacob v. Gratiot Central Market Co., 267 Mich 262.
Decrees in both cases affirmed, with costs to defendant.
Adams, Butzel, Carr, Bushnell, Sharpe, Boyles, and Reid, JJ., concurred. | [
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Reid, J.
Plaintiffs filed their bill of complaint to enjoin defendants from constructing a temple for religious worship on property subject to restrictions forbidding buildings erected on the premises to be used for other than residential purposes. The case was submitted on pleadings and a written stipulation of facts. Prom a decree for plaintiffs, defendants appeal.
Plaintiffs and defendants are (severally and individually) owners of lots in Michiana Shores subdivisions, in New Buffalo township, Berrien county, and all of the lots owned by them are subject to the following restrictions:
“(a) No building other than a dwelling house, private garage or such other building or buildings as may be necessary for the use and enjoyment of said real estate for dwelling purposes, shall be erected on any part of the property hereby conveyed ; nor shall said property be used or occupied by any building erected for manufacturing or mercantile purposes, or as a machine shop, public garage, bakery, laundry, or any other similar purposes.
“(b) One residence only shall be erected on each lot with the exception of lots facing on 2 streets, upon which, the written consent of the hoard of directors of Michiana Shore Estates, Inc., having been first had and obtained, 1 residence may be built facing each street.
“(c) No part of any residence or garage shall be nearer than 5 feet to the side lines of any lot, nor nearer than 15 feet to the front line of any lot.
“(d) The plans and specifications of any residence erected on the above described property, must be approved by the board of directors of Michiana Shore Estates, Inc.” (Italics supplied.)
Other and following restrictions are not involved in the controversy in the instant case, but are also contained in the deeds which are in the chain of title of the several lots owned by all of the parties hereto.
During the existence of the restrictions, there has been a development of said subdivisions for residential purposes in accordance with the provisions of subdivision (a) above1 quoted. Defendants admit that they intend to erect a temple for divine worship on 2 of the lots covered by the cited restrictions and that the erection thereof would have started on Monday, July 2, 1951, but for the temporary injunction issued on the prayer of plaintiffs, June 30, 1951. Defendants obtained from the village clerk of the village1 of Michiana a building permit, March 14, 1951, to erect the church on the lots in question.
Since the restrictions came into effect, the subdivisions, except a small portion thereof, were1 included in and became a part of the village of Michiana, which was incorporated in 1945 or 1946. The village ordinance adopted July 3, 1946, would permit the use of property in the district in question for single-family dwellings, churches, schools, libraries and community buildings, a private garage for each residence and certain professional offices. Defendants concede that the ordinance does not override the restrictions in question and expressly cite Phillips v. Lawler, 259 Mich 567, in which case we say (syllabus 5):
“Restrictions imposed by city zoning ordinance may not be considered as impairing building restrictions imposed by deed.”
Defendants stress the second part of paragraph (a) (which we have heretofore italicized) reading:
“Nor shall said property be used or occupied by any building erected for manufacturing or mercantile purposes, or as a machine shop, public garage, bakery, laundry, or any other similar purposes.”
The trial judge treated the second clause as surplusage. Defendants contend it should not be so treated nor considered; defendants further contend that the second clause limits the restrictions in the preceding portion of paragraph (a) to those uses recited expressly in the second clause, and seeing that the use for church purposes is not forbidden by the second clause, the church use is to be considered as permitted under the restrictions taken as a whole.
It seems fairly clear that the author of the restrictions intended by the second clause to make a double assurance that certain foreseeable uses, improper or undesirable for a residential neighborhood, were certainly to be understood as forbidden, and being unable to foretell or to make a list of all the undesirable uses, simply left the first portion of paragraph (a) to stand as a general expression of his purpose, to provide for an exclusively residential subdivision.
The word “nor” as used by the restrictions in question indicates the continuation of the force of the negative in the first part to apply equally to the second part. See Webster’s New International Dictionary (2d ed). In the instant case the clause introduced by “nor” adds clarity and emphasis to certain uses forbidden in the first part of (a).
We must not overlook the fact that in the 8 paragraphs immediately following (a), the author of the restrictions repeats his reference to “residence” as the permitted use, and includes with the word residence in each of those 3 paragraphs, (b), (c) and (d), no amplification or qualification of the word residence, that would in anywise suggest or state that a church use would be permitted.
Reading the 4 paragraphs together, (a), (b), (c) and (d), we can see no real difficulty in arriving at the conclusion that the author of the restrictions intended to limit the lots in question to a residential use.
We quote from 26 CJS, p 526:
“A covenant for residential use is violated by the erection of a church. Ga—Renfroe v. Alden, 164 Ga 77 (137 SE 831). Mo.—Rombauer v. Compton Heights Christian Church, 328 Mo 1 (40 SW2d 545). Ohio.—Cleveland Baptist Ass’n v. Scovil, 107 Ohio St 67 (140 NE 647).”
Michigan is already in accord with the 3 states from which these citations are taken. See Smith v. First United Presbyterian Church, 333 Mich 1, in which we say, page 12:
“We are mindful of the highly favored place a church should have in the community. As an owner of real estate, however, the church stands equally before the law with all others who invoke its protection. Plaintiffs herein are entitled to the protection of the residential restriction for which they bargained when they built their homes. We, therefore, find no equities which dictate that the restriction should not be enforced in this instance.”
Defendants state their final position, in the conclusion of their brief, as follows:
“Defendants propose to construct a ‘building’ in compliance with the provisions of the restriction relating to ‘building’ necessary for the enjoyment of the property for dwelling purposes. The right of defendants to do so is in accordance with the language of the restriction, the surrounding circumstances and the applicable law; and such right should not be enjoined.”
Defendants claim that the language in the first part of “a”, “such other building or buildings as may be necessary for the use and enjoyment of said real estate for dwelling purposes,” is broad enough to include a church as necessary for the use and enjoyment of real estate for dwelling purposes. Such claim falls before the reasoning and decision in the cited cases from Georgia, Missouri and Ohio, and as well of the Smith Case, supra, of Michigan. Under the restrictions in question, residential purposes exclude a church use.
The decree appealed from made permanent the injunction against the erection of the proposed temple for worship purposes. That decree is affirmed. Costs to plaintiffs.
Dethmers, C. J., and Adams, Butzel, Carr, Bushnell, Sharpe, and Boyles, JJ., concurred. | [
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Bushneix, J.
We issued our writ of habeas corpus and ancillary writ of certiorari to inquire into the cause and circumstances resulting in the detention and commitment of petitioner Olive A. Rothman, who is described in the record as a mentally-ill person.
The allegations of the undated petition of her husband, which was sworn to on July 9, 1951, are as follows :
“The patient assumes extreme chronic dislike for certain persons or for events that have happened for extended periods of time, Eg., she became extremely upset over the firing of MacArthur, waking her 12-year-old girl in the middle of the night and requiring her to listen to the radio. Por a period of 3 days or more, the firing kept her undivided attention. Regardless of the course events take, the patient feels she is being mistreated, If people come to see her or say ‘hello,’ she expresses dissatisfaction and says that she wishes they would stay away, or mind their own business. If people do not come to see her or do not say ‘hello’ she becomes upset because they are not more friendly. She has withdrawn herself from her friends and insists that her husband and child do the same. She now refuses to go to Sunday School, because of dislike of the superintendent of the school. -She has told her daughter that activities are just a way to do something without getting anything for it. She has required petitioner to give up activities as an officer in the church.”
The record contains a resumé of an inquest conducted on a date not stated but marked “filed July 21,” which reads:
“James K. Rothman was present and upon being duly sworn testified upon the matters contained in the petition, affirming the allegations therein contained. The certificate of the physicians appointed were read and discussed. Mr. Rothman further testified that at the time Olive A. Rothman was taken to the jail pursuant to an order entered herein she stated that she would go to Kalamazoo State Hospital, stay as long as she could and run up as large a bill as possible. She also at that time urged her minor daughter to hate her father, according to Mr. Rothman’s testimony. Private pay patient. Sheriff to convey.”
The order of the probate court does not show that Mrs. Rothman was determined to be an insane person, and we cannot accept the statement that she was determined to be a mentally-ill person “after a full investigation of said matter.” The inquest is neither complete nor satisfactory. It appears that Mrs. Rothman was committed to the Kalamazoo State Hospital upon .unsubstantiated and insufficient facts. This practice has been condemned in a number of cases, among which are: In re O’Neil, 239 Mich 450; In re Clifford, 303 Mich 84; In re Buck, 308 Mich 634; In re Roberts, 310 Mich 560; In re Haines, 315 Mich 657; and In re Aslanian, 318 Mich 55.
The order of the commitment is a nullity. An order may be entered releasing the petitioner.
Dethmers, C. J., and Adams, Butzel, Carr, Sharpe, Boyles, and Reid, JJ., concurred. | [
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Boyles,- J.
This appeal involves 2 suits to recover taxes paid under protest. In 1949 Annis Furs, Inc., paid personal property taxes under protest to Wayne county and the city of Detroit on merchandise assessed at $197,403.48 which the plaintiff claims was not physically present in Detroit on the tax assessment date. The 2 suits were consolidated for trial and also on appeal. ■ The trial court entered judgments for the defendants and the plaintiff appeals. On this appeal only one question is involved:
“Does the city of Detroit (and county of Wayne) have the right to assess, for local taxation, personal property owned by a foreign corporation having its principal place of business within the city of Detroit which.on the assessment day was located outside .the city but within the State of Michigan in the hands of road salesmen, in stores or salesrooms rented for that purpose, being offered for sale in the usual course of business?”
The facts have been stipulated. Plaintiff’s principal place of business is in Detroit. It is engaged there in the business of selling furs both at wholesale and retail, and maintains there a large retail establishment. The merchandise in question was temporarily in Jackson, Battle Creek and Flint. About one-third was in a sample room in the Hotel Hayes in Jackson for 3 days, February 28, March 1 and 2, 1949, in the possession of one of plaintiff’s “road salesmen” for display and sale.' Plaintiff makes a point because it paid for the use of the sample room. Two other road salesmen had about half of such property in their possession in a retail’ store in Battle Creek for the same 3 days, conducting a sale, in ¡connection with a local retailer of furs. Another such salesman had the rest of said merchandise in his possession in Flint for 6 days beginning February 28th, likewise conducting a sale in a retail store.
The record before us does not show that any of said merchandise was sold at the times and places above noted, nor where any of it was taken thereafter. If sold, it was customary to return it to Detroit for changes, et cetera, before delivery. Nor does it show affirmatively that it was not returned to Detroit and there in possession of the plaintiff on April 1st, the tax day provided in section 13 of the general tax act, hereinafter referred to. In their briefs, counsel refer to March 1st as being the tax assessment date, presumably under the city charter. However, in view of our conclusion, such difference in date is hot controlling.
It is stipulated that the plaintiff did not pay any personal property tax' to any city or county in this State on said merchandise, other than that paid the defendants under protest; that all of said merchandise was shipped by Annis Furs, Inc., to the said road salesmen from its Detroit store; that purchasers were billed and payments made to Annis Furs, Inc., in 'its Detroit store; and that the salesmen were paid by plaintiff’s Detroit office. Plaintiff also maintained places of business in New York and various other States.
It is conceded that plaintiff’s place of residence in Michigan for tax purposes is in Detroit. †Section 13 of the general tax act in effect in March and April, 1949 (CL 1948, §211.13 [Stat Ann 1947 Cum Supp § 7.13]), provided:
“All personal property, except as hereinafter provided, shall be assessed in the township in which the owner resides on the first day of April, of the year for which the assessment is made.
“The taxable status of persons and personal property shall be determined as of the first day of April, which shall be deemed the tax day.”
The only exception pertinent to plaintiff’s present claim- (CL 1948, § 211.14 [Stat Ann 1947 Cum Supp § 7.14]) †provides:
“The excepted cases' referred to- in the preceding section are as follows, vis.:
“First, All goods and. chattels situate in some township other than where the owner resides shall be assessed in the township where situate, and not elsewhere, if the owner or person having control thereof hires or occupies a store, mill, dockyard, piling ground, place for sale of property, shop, office, mine, farm, place of storage, manufactory or warehouse therein for the use in connection with such goods and chattels: Provided, That the- procuring of any such property to be manufactured upon contract shall'be deemed the hiring a mill or manufactory within the meaning of this section.”
No issue is raised here that the question involved is affected by transportation in interstate commerce. It should also be noted that the assessments involved arose in 1949, prior to the amendment of section 13 of' the general tax act by PA 1949, No 285. It changed the tax day to January 1st and added the provisions for filing a sworn.statement of inventories of merchandise, et cetera, for each of the preceding fiscal 12 months. Consequently the question considered by this Court in Ready-Power Company v. City of Dearborn, ante, 519, construing the provi sions of the amendment concerning the fiscal years of the taxpayer is not involved here.
Plaintiff has not met the burden of showing that the property in question is within the exception, and under the facts and circumstances of this case it is not. The owner, Annis Furs, Inc., having the control thereof, did not hire or occupy “a store, mill, dockyard, piling ground, place for sale of property, shop, office, mine, farm, place of storage, manufactory or warehouse therein for the use in connection with such goods and chattels.”
Primarily, personal property is taxable at the place of residence of the owner. It was the intent of the legislature to allow taxation of personal property elsewhere, under the circumstances described in the exception. Such a temporary change of the actual locus of personal property for the purposes shown in the instant case does not change.its situs for tax purposes. Any other conclusion would defeat the legislative purpose in enacting the exception. The property in question did not acquire a situs for tax purposes separate and distinct from the residence of the owner in Detroit. It was properly assessed there, and the tax levy by the city and county was proper. Greilick v. City of Traverse City, 231 Mich 699; City of Detroit v. Phillip, 313 Mich 211.
Affirmed.' '
Dethmers, C. J., and Adams, Butzel, Carr, Bushnell, Sharpe, and Reid, JJ., concurred.
CL 1948, § 211.11 (Stat Ann 1950 Rev § 7.11).
Since changed by PA 1949, No 285 (See Stat Ann 1950 Rev § 7.13).
Not changed by PA 1949, No 285.
See CL 1948, § 211.13 (Stat Ann 1947 Cum Supp § 7.13). Also, Stat Ann 1950 Rev § 7.13. | [
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Bushnell, J.
This is an appeal by defendants Samuel S. Bankle and Nettie Bankle, individually and as copartners doing business under the name-of Samuel S. Bankle Company, hereinafter referred to for brevity as “Bankle.” Bankle was permanently enjoined from proceeding with the construction of houses on lots 303 and 304 of Ardmore subdivision, in accordance with proposed plans, on the ground that to do so will violate the building restrictions in the subdivision, because such houses do not conform to the “general plan.”
Ardmore subdivision, located north of McNichols road and east of Evergreen road in the city of Detroit, consists of 212 residential lots on 4 streets running north from McNichols. Three of these streets are 60 feet wide, one is 80 feet wide, and the lots generally have a 40-foot frontage. There are no alleys in the rear, but a public-utility easement is provided. Those lots facing on McNichols road may be used for business purposes.
The subdivision was platted in 1926 by Louis G-. Palmer & Company, and at the time of trial was about 80 per cent, improved by “high-class” residential property. Palmer provided the original lot purchasers with a certificate which purported to guarantee “a building program of sufficient magnitude to establish the character of building for the entire subdivision.”
The trial judge ruled that this certificate was of no contractual binding force upon Bankle but was admitted in evidence only to show the scope of a proposed general plan and the initial steps taken by the subdivider to effectuate such a plan. The first 7 or 8 homes, all of similar character, were built by Palmer.
Plaintiff Ardmore Association is a nonprofit corporation composed of property owners in this subdivision. Individual owners, numbering 111, are joined as parties plaintiff. The great majority of the homes are 2-story, 6-room colonial type structures, a few are 1-J- story, and there are 2 ranch type homes. The present average value, excluding land, is claimed to be “upwards of $15,000.”
The restrictions of record read in part as follows:
“Nothing but a single private dwelling or residence designed for the occupancy of one family, shall be erected on any lot in this subdivision, nor shall said premises be used for any purpose other than residential purposes, except as herein provided.
“All such residence buildings shall cost not less than $6,500, and the plans and specifications for same shall be submitted to the grantors herein and its approval obtained, before construction work for said buildings shall commence.”
The houses which Bankle proposes to erect and which are claimed to be in violation of the restrictions are one-story and a half with 2 bedrooms' on the ground floor and unfinished space in the attic which could be converted into 2 more bedrooms. One of the houses would contain 903 square feet on the first floor and 250 square feet of usable space on the second; the other, with the same square footage on the ground floor, would have 240 usable square feet on the second floor. The estimated cost is $10,800 and $10,400 respectively. There is testimony to indicate that it would cost at the time of trial about $11,800 to duplicate a house costing about $6,500 in 1926 and 1927.
Appellants raise 3 questions, (1) whether general-plan restrictions can exist in the face of “unambiguous asserted written restrictions;” (2) the absence of proof of a general plan; and (3) assuming the existence of such a plan, do the proposed buildings violate that plan?
The trial judge held that the houses which Bankle proposes to erect “differ radically from any other houses in the subdivision.” He stated that if the specific restrictions had said no more than that all residential buildings should cost not less than $6,500, plaintiffs would have no ground for equitable relief, and that there was no basis for holding in the absence of specific language that the restriction meant “$6,500 in 1926, or its equivalent in construction cost at a later date.” But, said the trial judge:
“The restriction does not stop there. It goes on :to provide that plans and specifications for proposed residences shall be submitted to the grantors for approval before building starts. The obvious objective of this provision was to give the grantors an opportunity to assure themselves that any buildings proposed should conform in general style and plan to the 7 or 8 residences built by the subdivider, and to others erected by lot purchasers. It is true that the certificate given to lot purchasers by the sub-divider does not give rise to a restriction and has no contractual binding force upon the defendants. It is pertinent, however, in indicating the intention to adopt and follow a given plan, and to that end the requirement that plans and specifications must be approved before construction is effective. ■ The court can no more ignore this provision in the specifications than it can enlarge the $6,500 provision. It was incorporated in the original plat and in subsequent conveyances from the common grantor for a specific purpose, and that purpose should not be subverted either by the defendants or by the court.”
We agree with the view expressed hy the trial judge that:
“This ease does not involve a self-imposed plan to which the defendants were not parties (as condemned in Hart v. Kuhlman, 298 Mich 265). It demonstrates a general plan starting with a common owner and maintained from its inception and understood, accepted, relied on and acted upon by all in interest. The case does not involve a restrictive covenant resting in parol and not of record. The issue calls for the interpretation and application of an express covenant which clearly indicates an intention to fix a minimal standard of building in the entire subdivision and to maintain permanently á common plan. visually exemplified by the houses built by the original subdivider and the other houses built by lot owners thereafter.”
In a supplemental opinion the trial judge indicated the propriety of defining as nearly as possible the general plan established by the testimony, which he found:
“Contemplates (a) full two-story houses with total finished liveable area of not less than 1375 square feet, or (b) one and one-half story houses with total finished liveable area of not less than 1350 square feet, or (c) either one-story or ranch type houses on not less than one and one-half lots with total finished area of not less than 1050 square feet. In the case of one-story houses they shall not be less than 33 feet of frontage on the street.”
Building restrictions embodying a general plan of construction may be enforced if that plan has been maintained from its inception, and if it has been understood, accepted, relied on, and acted upon by all in interest. Such restrictions are “binding and enforceable on all inter se.” Allen v. City of Detroit, 167 Mich 464, 469 (36 LRA NS 890).
Building restrictions, by reason of a general plan, are a valuable property right which complying owners in the subdivision can enforce and maintain. Indian Village Association v. Barton, 312 Mich 541. See, also, authorities cited at page 549.
In this case the building restrictions of record require the approval of plans and specifications “before construction work for said .buildings shall commence.” The power to approve must be exercised in a fair and reasonable manner. West Bloomfield Company v. Haddock, 326 Mich 601.
In construing the effect of such a restriction the trial judge properly took into consideration the type of homes in the subdivision and the intent of the original grantor as indicated by the steps taken to establish a general plan of construction and character of building. Library Neighborhood Association v. Goosen, 229 Mich 89; and Bunce v. Jones, 238 Mich 337. See, also, Murdock v. Babcock, 329 Mich 127.
The trial judge’s finding of the existence of a general plan of construction is supported by proof of the necessary elements thereof, and we agree with his finding that the proposed construction does not conform to such general plan.
The decree is affirmed, with costs to appellees.
Reid, C. J., and Boyles, North, Dethmers, Btttzel, Carr, and Sharpe, JJ., concurred. | [
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North, J.
This litigation had its inception in June, 1947, incident to the filing of a claim by Louis M. Nims, commissioner of the department of revenue, against the estate of Judd A. Straight, deceased. On appeal to the circuit court the claim was allowed in the amount of $8,171.12. The executor of the estate, Leroy F. Straight, has appealed. The issue for determination is whether a claim of the State for the support, maintenance and medical care of an adult, indigent, mentally-incompetent daughter, Grace D. Straight, in a State hospital is properly allowable against her father’s estate from the date of the daughter’s commitment to the date of the father’s death, in a case where no proceedings were taken in the probate court during the lifetime of the father to determine his ability to pay therefor.
Since the passage of PA 1923, No 151, which was prior to the commitment of Grace D. Straight, there has been continuously in the statutory law of this State a provision under which certain designated relatives, if financially able to meet the obligation, are made responsible for the care and maintenance of a committed indigent insane person. For the purpose of decision herein it may be noted that during the period here involved the pertinent statutory provisions of this character have been substantially the same as embodied in the statute which was controlling at the death of Judd A. Straight, and which in part read as follows:
“If the relatives or friends of such mentally diseased persons shall so request, or if on investigation at the time of commitment or at any time subsequent thereto, it shall appear that such mentally diseased person has means or property sufficient for the payment of his care and maintenance, or if those persons, legally liable under section 2 of Act No 146 of the Public Acts of 1925 or of this act for the care and maintenance of such mentally diseased person, have sufficient means for that purpose, the court shall order his admission as a full-pay patient, or partial-pay patient, to any hospital, home or institution for the care or treatment of the insane, feeble-minded or epileptic in this State, and shall specify the amount in the commitment that the estate of such mentally diseased person, or those persons personally liable for the care and maintenance of such mentally diseased person shall pay for care and maintenance of such mentally diseased person in such State institution, and the amount so stated shall be subject to collection the same as any other moneys due the State are collected. The husband, wife, father, mother, grandfather, grandmother and children of any age, being of sufficient ability shall jointly and severally be liable for the maintenance of any patient.” PA 1923, No 151, § 11, as amended by PA 1943, No 250.
Since 1937 section 13 of the statute which provides the form of the order for admission or commitment, has contained the following:
“Nothing in the foregoing shall prohibit the collection by the State of the full amount set by law for maintenance of a patient in a State institution if it shall be made to appear subsequent to the issuance of this order (of commitment) that the patient, or those legally liable is so able to pay.” PA 1923, No 151, § 13, as amended by PA 1941, No 299 (CL 1948, § 330.23 [Stat Ann 1947 Cum Supp § 14.813]).
And in 1939 there was added to the statute the following:
“Actions brought in the name of the people of this State, the State of Michigan, or any political subdivision thereof, or in the name of any officer or otherwise for the benefit of the State or any political subdivision thereof, for the recovery of the cost of maintenance, care and treatment of persons in hospitals, homes, schools and institutions covered under the provisions of this act, may be brought at any time either during the lifetime of the relatives so liable for the cost of such maintenance, care and treatment or after the death of such relatives without anv limitation.” PA 1923, No 151, § 18a, as added by PA 1939, No 308 (CL 1948, § 330.28a [Stat Ann 1947 Cum Supp § 14.818(1)]).
Appellant does not contend that the State’s claim, if allowable, is barred by the statute of limitations. Before recovery for any portion of the state’s money expended incident to the care and maintenance of Grace D. Straight had been barred, the statute of limitations was made inapplicable to this type of claims. See PA 1915, No 314, eh 9, § 13, as amended by PA 1929, No 183, as amended (CL 1948, § 609.13 [Stat Ann 1949 Cum Supp § 27.605]); also In re Lewis’ Estate, 287 Mich 179. Grace D. Straight, an adult, was committed at public expense as an insane person February 14, 1924, and remained so committed until after her father’s death. Her father died November 24, 1946, possessed of an estate approximately of the value of $74,000, consisting of about $9,000 in personal property located in Michigan and the balance being real estate in Illinois.
It is stipulated between the parties to this litigation:
“That an order has never been entered by the probate court for the county of Kent (by which Grace D. Straight was committed) or any other court directing Judd A. Straight to pay for the expense of the care of his daughter, the said Grace B. Straight, at either the Kalamazoo State Hospital or the Caro State Hospital.”
Appellant’s contention is stated as follows:
“The estate of the deceased herein is not liable because no proceedings were taken by the State during his (Judd A. Straight’s) lifetime to establish the fact and extent of his liability, as provided by statute.”
We are not in accord with appellant’s contention. The theory of appellant which it is claimed would bar recovery is certainly not tenable since, the passage in 1939 of Act No 308. The demise of Judd A. Straight did not occur until November, 1946. Hnder the facts disclosed by this record it cannot be questioned if the proceedings to fix his liability for the care and maintenance of his insane daughter had been brought against him in his lifetime it could not have been successfully resisted. As noted by the quotation above from PA 1923, No 151, § 18a, as added by PA 1939, No 308, the legislature provided that for liability of this character the State’s action “may be brought at any time either during the lifetime of the relatives so liable for the cost of such maintenance, care and treatment or after the death of such relatives without any limitation.” This statutory provision did not change the nature or extent of Judd A. Straight’s liability. The State’s right to enforce a claim of this character against the estate of a person liable therefor was fixed by statute years before the demise of Judd A. Straight. See PA 1923, No 151, § 18a, as added by PA 1939, No 308.
“The legislature * * * has power to extend the period of an existing statute of limitations.” 17 K.CL, p 672, Limitation of Actions, § 12.
“There is no vested right in the running of the statute of limitations unless it has completely run and barred the action, so that as to existing causes of action which are not barred, the statute may be amended.” 34 Am Jur, p 37, Limitation of Actions, § 33.
“We certainly do not understand that a right to defeat a just debt by the statute of limitations is a vested right, so as to be beyond legislative power in a proper case. The statutes of limitation, as often asserted and especially by this court, are founded in public needs and public policy—are arbitrary enactments by the law-making power. Tioga Railroad v. Blossburg & Corning Railroad, 20 Wall (87 US) 137, 150 (22 L ed 331). And other statutes, shortening the period or making it longer, which is necessary to its operation, have always been held to be within the legislative power until the bar is complete. * * * It violates no right of his '(the debtor), therefore, when the legislature says, time shall be no bar, though such was the law when the contract was made. * * * We can see no right which the promisor has in the law which permits him to plead lapse of time instead of payment, which shall prevent the legislature from repealing that law, because its effect is to make him fulfil his honest obligations.” Campbell v. Holt, 115 US 620, 628 (6 S Ct 209, 29 L ed 483).
In re Lugies’ Estate, 287 Mich 710, is very much in the same field of the law as the'instant case. As noted in appellant’s brief, there was in the Lugies Case an adjudication during the lifetime of the committed mentally-diseased person as to the amount during a fixed limited period that his estate should pay to the State for his maintenance and care. But we think that circumstance does not impair the applicability of the decision therein because no payments were made. Other proceedings were brought in probate court in behalf of the State after Lugies’ death against his estate, and in part for a period not included in the earlier proceedings. The State’s claim was allowed for the whole period of Lugies’ commitment, February 13, 1912, to the date of his death, September 29,1936, in the amount of $4,350.35. In deciding the Lugies Case we said: “In a legal sense the same parties and the same subject matter are involved in the instant case as were formerly before the probate court (in the proceedings during Lugies’ lifetime).” It is worthy of note that in the proceedings against the estate of Lugies, deceased, the State’s claim was allowed notwithstanding the proceedings in that matter were prior to the enactment of section 18a as an addition to PA 1923, No 151, by PA 1939, No 308, from which we have hereinbefore quoted the provision that the State’s action of this character may be brought “either during the lifetime of the relatives so liable for the cost of such maintenance, care and treatment or after the death of such relatives without any limitation.”
The liability in the manner created by the pertinent statutory provisions attached to Judd A. Straight as the father of Grace D. Straight simultaneously as the support, care and maintenance was given to the daughter, and was present at the time of the father’s death. As above noted, it is provided in the quoted portion of PA 1923, No 151, § 11, as amended by PA 1943, No 250, that as to claims of this character “the amount so stated shall be subject to collection the same as any other moneys due the State are collected.” In general it may be said that a claim held by the State against a person may in the event of the demise of such person be enforced against his estate. And we think that likewise, in view of the express statutory provision enacted in the lifetime of Judd A. Straight and at a time when he was liable to the State for his daughter’s support, the claim in the instant case was properly allowed by the circuit judge against the estate of Judd A. Straight, deceased.
In reaching our decision we need not, in our view of the law, disagree with appellant’s contention that: “Section 18a (PA 1939, No 308) does not create liability or create a cause of action, but is only a statute of limitation.” The instant proceedings were instituted and initially prosecuted in the probate court of Ingham county which had jurisdiction to hear and determine the fundamental issue—i.e., whether Grace D. Straight’s father (his estate) was liable to the State for her care and maintenance during her commitment in his lifetime. That was the only court that had original jurisdiction to hear the State’s claim. Appellant’s contention that section 18a “is only a statute of limitation” does not militate against the State’s right to recover. There is no conflict between section 18a and what may be termed the general statute of limitations, which in part reads:
“6. Provided further, That actions brought in the name of the people of this State, the State of Michigan, or any political subdivision thereof, or in the name of any officer or otherwise for the benefit of the State or any political subdivision thereof, for the recovery of the cost of maintenance, care and treatment of persons in hospitals, homes, schools and other State institutions, shall not be subject to the limitations of this section and may be brought at any time, without limitation, the provisions of any statute notwithstanding.” CL 1948, § 609.13 (Stat Ann 1949 Cum Supp § 27.605).
The circuit judge properly allowed the State’s claim in the instant case against the estate of Judd A. Straight, deceased, and the order entered accordingly is affirmed. Since decision herein turns upon a matter of statutory construction, which is of public concern, no costs will be allowed.
Reid, C. J., and Bittzel, Carr, Bushnell, and Sharpe, JJ., concurred with North, J. Boyles and Dethmers, JJ., concurred in the result.
PA 1925, No 146, eh 1, § 2 (CL 1948, § 401.2 [Stat Ann § 16.-122]); PA 1923, No 151, § 11, as amended by PA 1925, No 283 and PA 1937, No 104 (CL 1948, § 330.21 [Stat Ann 1947 Cum Supp § 14.811]).
For later amendment see CL 1948, § 330.21, as amended by PA 1949, No 313 (Stat Ann 1949 Cum Supp § 14.811 et seq.).
This provision, in substance, was first incorporated in section 13 by PA 1937, No 104.
Followed in Chase Securities Corp. v. Donaldson, 325 US 304 (65 S Ct 1137, 89 L ed 1628), which affirmed Donaldson v. Chase Securities Corp., 216 Minn 269 (13 NW2d 1). | [
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Sharpe, J.
This is an appeal from a judgment of the circuit court of Wayne county on certiorari reversing an order of the appeal board of the Michigan unemployment compensation commission.
An agreed statement of facts includes the following:
“LaSalle Boulevard Apartments, Inc., and Fourteenth Avenue Apartments, Inc., are each Michigan corporations organized under the general corporation act to take advantages of the provisions of title ■608, Federal housing act.
“LaSalle Boulevard Apartments, Inc., was organized March 25, 1949. Fourteenth Avenue Apartments, Inc., was organized June 6,1949. Except' for 100 shares of preferred stock in each corporation held by the Federal housing administration as required by the Federal housing act, and the articles of incorporation, Louis Cantor and Dorothy Cantor, his wife, are the sole stockholders in LaSalle Boulevard Apartments, Inc., and Fourteenth Avenue Apartments, Inc.
“Neither corporation, considered separately, is liable for contributions under the Michigan employment security act, since neither has the required minimum of 8 employees on the pay roll for 20 weeks in a year. The employees of both corporations, however, when considered together, exceed the statutory minimum of 8 for a period of 20 weeks during 1949.
“Cantor Construction Company is a Michigan corporation, organized June 23, 1947, doing industrial and commercial work. This company has been largely inactive since the latter part of 1948, except for maintenance work. It was liable for contributions under the Michigan employment security act during’ 1948 and 1949. At its request, granted by the commission April 18, 1950, the corporation liability for contributions was terminated as of January 1, 1950.
“Louis Cantor Company is a registered copartnership consisting of Louis Cantor and Dorothy Cantor, his wife. Its business was mainly land surveying. During 1947 and 1948 it was liable for contributions under the Michigan employment security act. Its request for termination of liability was granted by the commission as of April 1, 1949.
“Louis Schusterman, plaintiff herein, worked for LaSalle Boulevard Apartments, Inc., from July 22 through August 25, 1949, and for Fourteenth Avenue Apartments, Inc., from October 3 through November 17, 1949. Employment with LaSalle Boulevard Apartments, Inc., was terminated August 25th by reason of completion of work. Schusterman immediately procured other employment. Employment with Fourteenth Avenue Apartments, Inc., was terminated November 17th, by reason of completion of. work. Schusterman was unable to find employment and registered with the employment security commission. This litigation is an outgrowth of such registration.
“The mimeographed forms of articles of incorporation used by both LaSalle Boulevard Apartments, Inc., and Fourteenth Avenue Apartments, Inc., were furnished by the Federal housing administration. As originally executed and accepted by the Michigan corporation and securities commission, the articles for LaSalle Boulevard Apartments, Inc., contained the following provisions:
“Article 2(d) provides that ‘The purpose for which the corporation is formed [is] to apply for and obtain or cause to be obtained from the Federal housing commissioner a contract or contracts of mortgage insurance pursuant to the provisions of the national housing act as amended, covering bonds, notes, and other evidences of indebtedness issued by this corporation and any indenture of mortgage or deed of trust securing the same. So long as any property of this corporation is encumbered by a mortgage or deed of trust insured by the Federal housing commissioner it shall engage in no business other than the construction and operation of a rental housing project or projects.’
“Article 3(e) provides: ‘In the event of any default by the corporation, as hereinafter defined, and during the period of such default, the holders of the preferred stock, voting as a class, shall be entitled to remove all existing directors of the corporation, and to elect new directors in their stead: Provided however, that 1 of said directors shall be the owner or holder of 1 or more shares of common stock.. When such default or defaults shall have been cured, the right to elect directors shall again vest in the holders of the common stock.’
“Article 4(s) (d) provides: ‘Anything to the contrary herein notwithstanding, no dividends shall be-paid upon any of the capital stock of the corporation (except with the consent of the holders of a majority of the shares of each class of stock then outstanding) until all amortization payments due under each and every mortgage insured by the Federal housing commissioner have been paid, and until a separate reserve fund for replacements is first established and maintained' for each project hereinafter in this paragraph mentioned, by the allocation to such reserve fund in a separate account with the mortgagee thereof (or in the case of a deed ■of trust with the beneficiary) or in a safe and responsible depository designated by the mortgagee commencing on the date of the first payment towards amortization of the principal of each and every mortgage insured by the commissioner unless a later date is approved in writing by the holders of the preferred stock, of and [an?] amount equal to
$124.32 for Project PHA No 044-42049
$..... for Project PHA No
$..... for Project PHA No
$..... for Project PHA No
$..... for Project PHA No
$..... for Project FHA No
and a like amount monthly thereafter. Such funds whether in the form of cash deposits or invested in obligations of, or fully guaranteed as to principal and interest by the United States of America shall at all times be under the control of the respective mortgagees. Disbursements from each fund, whether for the purpose of effecting replacements of structural elements, furnishings and mechanical equipment of the project or for any other purpose, may be made only after receiving the consent in writing ■of the holders of the preferred stock.’
“Article 8 provides: ‘The corporation shall not, without prior approval, of the holders of a majority of the shares of preferred stock, given either in writing or by vote at a meeting of the preferred stockholders called for that purpose * * * (e) Consolidate or merge the corporation into or with any ■other corporation.’
“Article 9 provides: ‘(A) The happening of any ■of the following events shall constitute a default within the meaning of that word as used in these articles: (1) The failure of the corporation to have dismissed within 30 days after commencement, any receivership, bankruptcy, or other form of liquidation instituted by or against the corporation; (2) the failure of the corporation to pay the principal, interest, or any other payment due on any note, bond or other obligation executed by it, as called for by the terms of such instrument; (3) the failure of the corporation to establish and maintain any reserve fund for replacements provided for in article 4, § (d) hereof or the use of such fund except as permitted in said section; (4) the failure of the corporation, continuing for a period of 15 days, to perform any of the covenants, conditions or provisions required by it to be performed by this certificate,, the bylaws of the corporation, the mortgage, or any contract to which the corporation and the commissioner shall be parties, or fail to carry out in full the terms of any agreement whereby the loan covered by the insured mortgage is to be advanced or the-project is to be constructed and operated.’
“The articles of Fourteenth Avenue Apartments, Inc., are identical except that article 4(2) (d) did not originally appear in the same form as did the corresponding article 4(2) (d) in the articles of incorporation of LaSalle Boulevard Apartments, Inc. The-verbiage of article 4(2) (d) of the articles of Fourteenth Avenue Apartments, Inc., which is precisely the same as article 4(2) (d) of the articles of incorporation of LaSalle Boulevard Apartments, Inc., as-amended, reads:
“ ‘Anything to the contrary herein notwithstanding, no dividends shall be paid upon any of the capital stock of the corporation (except with the consent of the holders of a majority of the shares of each class of stock then outstanding) until all amortization payments due under the mortgage insured by the Federal housing commissioner have been paid, and until a reserve fund for replacements is first established and maintained by the allocation to such reserve fund in a separate account with the mortgagee (or in the case of a deed of trust with the beneficiary); or in a safe and responsible depository designated by the mortgagee commencing on the date of tbe first payment towards amortization of tbe principal of tbe mortgage insured by tbe commissioner unless a later date is approved in writing by tbe holders of the preferred stock, of an amount equal to $124.32 and a like amount monthly thereafter. Such fund whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal and interest by the United States of America shall at all times be under the control of the mortgagee.
“ ‘Disbursements from such fund, whether for the purpose of effecting replacements of structural elements, furnishings and mechanical equipment of the project or for any other purpose, may be made only after receiving the consent in writing of the holders of the preferred stock.’
“The LaSalle Boulevard apartments are on the east side of, and face LaSalle boulevard. They occupy a strip of land bounded on the north by Burlingame avenue and on the south by an alley running-parallel thereto, and on the east by apartments owned and operated by the Fourteenth Avenue Apartments, Inc., which face Fourteenth avenue. There is approximately 100 feet, including parking-area, dividing the 2 apartments.
“Mr. Cantor testified that the 2 projects were designed as 2 separate entities on the recommendation of the Federal housing administration, and that architects involved in these projects are pretty much directed by the land planning of the Federal housing which' works with the architects and helps them lay out the projects so it will conform to their desires. The same plan was used for both the apartments but with 2 different sets of blue prints.
“Mr. Cantor, in behalf of the corporations, testified that he sublet the major portion of the construction work on both projects to subcontractors. These subcontractors employed their own workers and are not involved in this litigation. Mr. Cantor, however, did not sublet the finished carpentry work be cause lie felt lie would get a better job by hiring the carpenters himself; 'This was performed by a crew of carpenters under the immediat'eldirections of. the foreman' selected by Mr. Cantor.
■ “Work'.on the LaSalle Boulevard apartments was commenced early in May, 1949. This group was completed ■ -find ready for occupancy on or about September T5, 1949. Work on the Fourteenth Avenue apartments was commenced in June, 1949. It was completed and ready for occupancy on or about November 1,1949.
“When working on the LaSalle group, plaintiff and the other carpenters were paid their wages each week by check issued by the LaSalle Boulevard Apartments, Inc., and signed by Louis Cantor as president. While engaged on work on the. Fourteenth Avenue apartments, their wages were paid each week by check issued by the Fourteenth Avenue Apartments, Inc., and signed by Louis Cantor as president. Withholding statements were issued by the corporations separately.
“On occasion, after the first projects were completed and the tenants had started to move in, one or more of the carpenters engaged in work on the Fourteenth Avenue apartments performed some task on the LaSalle group. This involved a correction of a sticky door or cabinet or some other item of minor nature. In these' instances the individual or individuals involved continued to receive their wage from the Fourteenth Avenue apartments. Mr. Cantor testified that he did not authorize any commingling of employees.
“Mr. Cantor, corroborated by his certified public accountant, testified that he did not have sufficient funds to start up both corporations^! the same time, and that the. Federal housing administration recommended that he do it as he did. He. testified that when heformed the 2 corporations the last of his thoughts was the avoidance of contributions to the Michigan unemployment compensation fund.. Mortgages in' the amount of $226,800 were obtained through the Federal housing commissioner for each of the corporations and these mortgages are still valid and subsisting.
“The field adviser for the Michigan unemployment compensation commission testified that it was his understanding that any building project under title 608 with FHA aid must be set up as separate corporation, and that he has run across this situation before.
“The certified public accountant for the defendant corporations testified that the accounts of the corporations are kept separately, there are separate bank accounts, separate statements issued on each apartment, and that in setting up the books he did not have in mind the avoidance of unemployment compensation. He further testified that there was a sound business reason for the separation of the 2 corporations because, in the first place, Mr. Cantor did not have sufficient capital to start both projects, and secondly, it would be inadvisable to do so because the Federal government has priority, and in case of default, management of the corporation would go to the government. If one building would be paying for itself and the other would not, and both buildings were part of the same corporation, the corporation could lose both buildings, whereas, if each building were separately incorporated the corporation could lose only the nonpaying building. He further testified that he takes care of 60 builders in the city of Detroit and there is seldom more than one building started in a corporation under title 608.”
On September 13, 1950, the referee filed an opinion which contains the following:
“Section 41 (3), the affiliation clause in the act, in its present form is inapplicable here. The referee finds that there was a sound business reason for separating the 2 corporations herein involved from each other and from the other activities of Louis Cantor. The referee finds that tax under the Michigan unemployment compensation act is avoided, but that there is no tax evasion or evidence of fraud. Where there is.no attempt, at tax evasion or fraud, the referee does not believe the courts will disregard corporate entities. If' this were one individual, Louis Cantor, engaging in various employment activities, the referee would not hesitate to apply section 40 of the act, †but finds that herein, with these corporations, section 40 is not applicable. * * *
“Claimant’s employment during the period involved herein in 1949 was for LaSalle Boulevard Apartments and Fourteenth Avenue Apartments, and since neither of such employing units was an employer within the meaning of section 41 of the act of 1949, his claim based on earnings from these 2 employing units was properly denied because of lack of qualifying wage credits.”
Upon appeal, the appeal board rendered a decision which contains the following:
“A review of’ the record satisfies us that the findings of fact as set forth by the referee in his decision are supported by the evidence and therefore we adopt said findings' as our own.
“The primary issue involved, is whether or not the claim filed by the claimant herein was properly denied on the grounds that claimant had. insufficient wage credits to meet the eligibility conditions' of section'28 (e-1) of the act. This issue is in' turn regulated by the outcome of 2 secondary issues, namely, whether or not during the calendar year 1949, the employing units known as the LaSalle Boulevard Apartments, Inc., and the Fourteenth Avenue Apartments, Inc., constituted a single, employing unit under the provisions of section 40 of the act and if not, whether said employing units constituted an employer within the meaning,of the affiliate clause of section ,41 (3) of the act.
“The referee before whom this matter was tried has made a careful analysis of all the pertinent matters therein, both as to matters of fact and questions of law. It is our opinion that the decision therein rendered is fully supported by both the facts and the law.
“The decision of the referee is hereby affirmed.”
The trial court reversed the decision of the appeal board and in an opinion stated :
“I think it is true, as stated by counsel, that there is always a sound business reason for the existence of 2 or more affiliated corporations in the place and stead of 1, but management and organization are not factors with which the amendment is concerned. They have no bearing, application or effect on the employing relation. ¡
“As stated by counsel in their brief—They are entirely foreign to the crucial factor with which we are dealing—unemployment.
“Consideration for the affairs of management and organization can .not be assigned as a sound business reason for the existence of 2 or more employing units in the place and stead of 1, nor should these considerations be deemed the controlling factor upon which the right of an individual to receive the benefits of the act rests.
“It seems to be clear from the record that the 2 employing units involved here are engaged in a common enterprise, the construction and operation of a single housing project. Their status is not that of employing units engaged in the same or associated line of business. It is that of 2 employing units engaged in the same identical business.
“It follows, therefore, that the defendants have failed to show a sound business reason for their separation as contemplated by this act, especially, having reference now to séction 41 (3). . .
“The decision of the appeal board of the Michigan unemployment compensation commission is reversed and the writ may issue.”
On October 17, 1951, a judgment was entered in conformity with the trial court’s opinion. Defendants appeal and urge that the court erred in holding that consideration for the affairs of management and organization cannot be assigned as a sound business reason for the existence of 2 or more employing units in the place and stead of 1.
The question involved in this case requires an interpretation of CL 1918, § 121.1 et seq., as amended by PA 1919, No 282 (Stat Ann 1950 Rev § 17.501 et seq.).
That part of the act involved is CL 1918, § 121.-11(3) (Stat Ann 1950 Rev §17.513), and reads as follows:
“Any employing unit which was formerly an employer under paragraph (1) of this section, or has acquired any.part of the business of an employer or employing .unit which is or was formerly an employer under ■ paragraph (1) of this section, and which, together with 1 or more other employing units engaged in the same or an associated line of business, is owned or controlled (by a legally enforceable means or- otherwise) directly or indirectly by the same interests, or which owns or controls 1 or more other employing units engaged in the same or an associated line of business, and which, if treated as a single unit with such other employing units or interests, or both, would be an employer under paragraph .(1) of this section: Provided, that this subsection shall not apply in cases where it can be shown that there is a sound business reason, other than avoidance of contributions, for the separation of such employing units.”
The gist of the commission’s claim is that the -2 companies, although separate and distinct in every respect, are only 1 employing unit under the. employ ment security act. In Ned’s Auto Supply Co. v. Unemployment Compensation Commission, 313 Mich 66, four brothers and a sister comprised the members of a partnership. They dissolved the partnership and organized 2 corporations for the purpose of conducting the wholesale and retail phases of the same business. The 2 companies sought to combine its experience record with that of its predecessor partnership for the purpose of determining its rate of contribution. We there said:
“It is clear that the 2 corporations could not qualify as a single employing unit under the provisions of said section 22 (a) (1), (2), and (3), unless their corporate entities were disregarded. Plaintiffs argue that because the 5 partners continued as owners of the corporate stock of the 2 corporations and as directors and officers thereof, the corporate entities should be disregarded and they should be considered as a single employing unit. We cannot agree with this argument, because plaintiff corporations are 2 separate and distinct legal entities and, therefore, 2 separate employers. We recognize that the courts have often looked through the veil of corporate structure in order to prevent fraud or injustice. Old Ben Coal Co. v. Universal Coal Co., 248 Mich 486; People, ex rel. Attorney General, v. Michigan Bell Telephone Co., 246 Mich 198 (PUR 1929B, 455). However, no question of fraud is involved in the present case, and we find no occasion to disregard the corporate entities of the 2 plaintiffs. A single partnership had been split into 2 separate corporations, and under section 22 quoted above they could not be combined as a ‘single’ successor employing unit.”
In Employment Security Commission v. Crane, 334 Mich 411, a partnership of 2 brothers conducted an automobile sales agency. They also formed an other partnership and conducted a business of selling tractors and implements from another manufacturer. The businesses were physically separated, as well as the banking and bookkeeping. The question which arose in this case was whether the 2 partnerships were one employing unit.
We there said:
“However, we do not find in the employment security act itself any requirement that 2 separate and distinct copartnerships operating as in the case at bar must be construed as a single employing unit. Appellant’s only basis for claiming such a conclusion must be found solely in the unity of the partners in both copartnerships. There is no such ‘unity of enterprise’ here as to bring the instant case under American Screw Products Co. v. Michigan Unemployment Compensation Commission, 311 Mich 440 (159 ALR 1195). Here, the enterprises operated by the 2 partnerships were fully separate and apart, and conducted as such. Furthermore, the ‘unity of enterprise’ basis announced in the American Screw Products Case, supra, would not afford any relief to the appellant here. The appellee would not suffer hardship under the unity of enterprise premise, any more than under the legal entity theory of partnerships. * * *
“In the instant case, the 2 Johnsons had a sound business reason for the complete separation of the Johnson Tractor & Implement Sales partnership from the operation of the Ford agency partnership. The Johnson Tractor & Implement Sales agency operated under a franchise from its supplier prohibiting it from engaging in any other business. Section 41, supra, recognizes that legal entities are not to be disregarded unless it appears that there is no sound business reason for separation other than merely to avoid contributions under the act. The reason for the separation here has not been challenged.”
It is a well-established fact that a corporation is a separate entity, separate from its individual stock holders. In the case at bar, the 2 projects were designed as 2 separate entities on the recommendation of the Federal housing administration; "There was no plan of avoidance of contributions to the Michigan unemployment compensation fund. The accounts and records of the companies were kept separately.
"We are in accord with appellants’ claim that under the circumstances of this case, there was a sound business reason for the separation of the 2 companies. The 2 companies do not constitute a single employing unit under the unemployment compensation act. Each was a separate and distinct unit.
The judgment is reversed, with costs to appellants.
Dethmers, C. J., and Adams, Btjtzel, Carr, Btjshnell, Boyles, and Reid, JJ., concurred. '
56 Stat 303 (12 USCA, § 1743).—Reporter.
CL 1948, § 421.41 (Stat Ann 1950 Rev § 17.543).—Reporter.
CL 1948, § 421.40 (Stat Ann 1950 Rev § 17.542).—Reporter.
CL 1948, § 421.28, as amended by PA 1949, No 282 (Stat Ann 1950 Rev § 17.530).—Reporter.
PA 1936 (Ex Sess), No 1, § 22, as amended by PA 1941, No 364 (Stat Ann 1941 Cum Supp § 17.524).—Reporter. | [
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Carr, J.
These cases were tried together in circuit court and on stipulation the appeals have been consolidated. Plaintiffs’ causes of action arose from a traffic accident occurring in the city of Detroit on the 26th of November, 1946, about 6 o’clock in the evening. At the time the plaintiffs Mary Staunton and Mary Madeline, her 6-year-old daughter, were undertaking to cross the paved portion of Joy road at or near the intersection of that highway with Rutland avenue. It was their claim on the trial that they were struck and injured by a bus owned and operated by the defendant, and that the accident occurred because of negligence on the part of the hus driver. The proofs indicate that they left the north, side of Joy road and proceeded to the middle of the pavement, which was 40 feet in width, where, the driver of an east-bound automobile brought his; vehicle to a stop immediately in front of them. While they were standing, with others, beside the automobile in question, defendant’s bus came from the west, behind the standing automobile, swerved to the north to avoid striking the car, and struck Mrs.. Staunton and Mary Madeline, inflicting injuries for which they brought their respective suits to recover damages. The other plaintiff, the husband of Mary Staunton and father of Mary Madeline, also instituted suit to recover for their hospital and medical expenses and for the loss of the services of his wife in the home.
At the conclusion of plaintiffs’ proofs counsel for defendant moved for directed verdicts, claiming that plaintiffs had failed to show negligence on the part of the bus driver and had also failed to establish freedom from contributory negligence. The motion was denied, without prejudice to the right of defendant to renew it at- the conclusion of the proofs. Thereupon defendant introduced the testimony of witnesses, and the motion, on renewal, was taken under advisement in accordance with the provisions of the Empson act.
Following submission of the cases to the jury verdicts were returned in the amounts of $3,000 for James Staunton, $7,000 for Mrs. Staunton, and $5,-000 for Mary Madeline. Thereafter defendant made a motion for new trials, and also asked for judgments notwithstanding the verdicts. The latter motion was granted, the trial judge stating in his opinion “that the plaintiffs showed no actionable negligence on the part of the defendant driver; that plaintiffs were guilty of contributory negligence as a matter of law; that the proximate cause of the accident was plaintiffs’ negligence, or, at least, the concurrent negligence of plaintiffs, and that the motions made by counsel for defendant at the end of plaintiffs’ proofs, and at the end of all the proofs, for directed verdict of no cause for action, should have been granted.” Judgment was thereupon entered for defendant against the 3 plaintiffs. An opinion was also filed by the trial judge denying the motion for a new trial.
On behalf of appellants it is urged that the trial court was in error in holding that plaintiffs’ proofs were not sufficient to justify submitting to the jury the issues in the case. In considering the case we have in mind the well-established rule that on appeal from a judgment for a defendant notwithstanding the verdict of the jury the testimony must be construed in the light most favorable to the plaintiff. Longfellow v. City of Detroit, 302 Mich 542; Wimmer v. Colman, 307 Mich 413; Waskelis v. Continental Baking Co., 310 Mich 649; Swartz v. Dahlquist, 320 Mich 135. Inconsistencies or contradictory statements in the testimony of witnesses does not bar the application of the rule. Yampolsky v. Smith, 320 Mich 647.
In their declarations the plaintiffs alleged that defendant’s employee was operating the bus at an excessive rate of speed and in a careless and reckless manner, that he failed to keep a reasonable and proper outlook for others on the highway, and that he was driving in such a manner and at such speed that he was unable to stop within the assured clear distance ahead. Counsel specifically call attention to a provision of the motor vehicle law of the State, in effect at the time of the accident, appearing in CL 1929, § 4697, as amended by PA 1939, No 318 (Stat Arm 1945 Cum Supp § 9.1565), which read 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.”
It is urged by appellants that the testimony was sufficient to establish that defendant’s bus driver violated the provisions of the statute in the operation of his vehicle, and that he was guilty of negligence in failing to exercise due and proper care under the circumstances. Emphasis is placed on the testimony of the driver, who was called by plaintiffs for cross-examination. He stated that on the day of the accident he had begun work at 6 o’clock in the morning, and that he had been actually engaged in driving a bus about 9i hours prior to the- occurrence in question. It is a fair inference from his statements that driving conditions were such as to involve some degree of nervous tension, and that at 6 o’clock in the evening he was weary. The pavement was wet at the time of the accident, and it was dark or nearly so. In describing the situation the witness said, in part:
“My headlights and the street lights were on. I was driving about 35 miles an hour at this point. As I approached the intersection at Rutland, there was considerable traffic going west whose headlights were quite bright, from which I was momentarily blinded. At this time I was between Rutland and Southfield on J oy road. I don’t recall how far from Southfield, but quite a number of feet. I would guess anywhere between 8 to 20. Rutland and J oy road is not really an intersection. It is a jog in the street, and it is a long block from Southfield to Rutland. After my eyes focused back on the road from the blinding lights, the first thing I seen was the red lights blinking. The drivers at the D.S.R. barns had been warned concerning a railroad crossing, which was further down the road from this intersection, and when I first seen these red lights blinking my first impression was that it was the railroad crossing, yet I know what the blinking lights were and knew it couldn’t possibly be that or else it had been changed. I was in sort of a fog as to what they were and continued on at my usual speed in an easterly direction. I was still watching and trying to make out just what these lights were when I saw it was the taillights on this car. At that time the car was directly in front of me in the same lane, on the right of the right-hand lane. Joy road at this particular point is a four-lane highway. I don’t know how wide it is, nor do I know whether or not it was divided down the center by a dividing line.
“Q. When you saw it finally and realized these lights were lights of a car ahead of you, how far ahead of you was that car at that time ?
“A. I can’t judge space. The car ahead of me was either stopped or was stopping because his taillights blinked, and at the same time I saw all these people who were running around in front and behind him. There must have been 15 or 20, at least. I don’t know whether or not there were some that were not running. When I finally realized this was a car stopped in front of me, I hit my brakes. After I applied my brakes, the bus continued east. I skidded for an unknown distance and then realized I wasn’t stopping as fast as I should, and I jackknifed my wheel to the left. I don’t know how far in back of the standing-car I was when I did this.”
The witness further stated that he did not realize he was on cement until he undertook to apply his brakes. His testimony clearly indicated that he saw the red lights blinking on the rear of the automobile beside which Mrs. Staunton and Mary Madeline were standing. With reference to his conduct at that time, the following excerpts from his testimony are significant.
“Reoross-Examination
“By Mr. Temple:
“At the time I saw the lights blinking and didn’t realize what they were, I continued at 35 miles an hour, and all of a sudden I realized those were lights of a car right in front of my car. I attempted to stop, swung to the left, and hit the girl.
‘ ‘Reoross-Examination
“By Mr. Sullivan:
“Q. Is there anything you could have done you didn’t do to avoid this accident?
“A. Well, the only place I can see where I made my mistake was when I seen the lights first, before I visualized the car or the people. I should have applied my brakes then. When I saw the people I tried to stop and avoid the accident.
“Reoross-Examination
“By Mr. Temple:
“Q. Witness, if you had applied your brakes when you first saw these blinking lights, you could have stopped your car long before you got to the stopped -car or the people, isn’t that true?
“A. Yes, sir. * * *
“Reoross-Examination
“By Mr. Temple:
“Q. What does the blinking of 2 red lights on the back of a car usually designate ?
“A. They are slowing up or going to stop.
“Q. And in spite of that blinking of the taillights of the car ahead of you, you didn’t realize what it was, and you continued towards that car at 35 miles an hour until some time later you realized all of a sudden that it was a car in front of you?
“A. ■ Yes, sir.”
A young woman who was standing with Mrs. Staunton and Mary Madeline immediately prior to the accident was a witness on the trial, testifying that in her opinion the bus was traveling approximately 55 miles an hour, and that when it passed her it brushed her coat. She also testified that the bus struck Mrs. Staunton and Mary Madeline. She stated that when she realized there was danger there was not time to go around the standing automobile “because the bus was coming too fast and getting-close, and if I had gone behind the car I might have gone right in front of the bus.” The testimony of Mrs. Staunton as to the general situation at the time of the accident is substantially in accord with that of the witness.
In Pearce v. Rodell, 283 Mich 19, the Court, in commenting on the statute, above quoted, said in part:
“The defendant had no right to drive his automobile on the public highway- at the place and at the time the injury to plaintiff occurred at a speed greater than would permit him to bring it to a stop within the assured clear distance ahead (CL 1929, § 4697, as amended by PA 1933, No 119 [CLS 1935, § 4697]); and it was prima facie unlawful for him to exceed that limitation in speed (CL 1929, § 4697, as amended by PA 1933, No 119 [CLS 1935, § 4697]). * * * It is clear if he was driving his automobile at a rate of speed so he could not bring it to a stop within the assured clear distance ahead, he was guilty of negligence as a matter of law. If defendant’s vision was obscured by the glaring lights of the approaching automobile, it was his duty to slacken his speed and have his car under such control that he might stop it immediately if necessary. Budnick v. Peterson, 215 Mich 678.”
Of like import is Holmes v. Merson, 285 Mich 136.
The proofs in the case indicate that at the time of 'the accident weather conditions were such as to require special care and caution on the part of the idriver of defendant’s bus. Suarez v. Katon, 299 Mich 38. After considering the evidence in the light of the charge of the trial court, the jury in the instant case concluded that the driver of the bus' was guilty of negligence. We think the testimony fully supports that conclusion. The jury might well have found as a fact that defendant’s vehicle was operated at a rate of speed that was excessive under the existing conditions, that the driver was not reasonably exercising his faculties in keeping an outlook for others on the highway, and that he was unable to stop his vehicle within the assured clear distance ahead. The driver’s testimony is such as to suggest that had he been exercising ordinary care the accident would not have occurred. We think the trial court was in error in holding that plaintiffs’ proofs were insufficient to require submitting the question of defendant’s negligence to the jury.
May it be said, as a matter of law, that Mrs. Staunton failed to establish her freedom from contributory negligence? The holding of the trial judge in this respect was apparently based, at least in part, on the fact that she undertook to cross the pavement on Joy road under the circumstances existing at the time. However, the testimony indicates that she waited until westbound traffic had cleared and then, with others, proceeded to the middle of the pavement. At that point the automobile, before mentioned, stopped directly in front of her so that she was standing opposite the left-rear fender. Had it not been for this incident it is a fair conclusion that the parties would have crossed the pavement in safety. It may not be said that she should have foreseen at the time she started across the street that her progress would be interfered with by a vehicle stopping directly in front of her. Neither may it be said that she should have anticipated the subsequent conduct of the bus driver.
Defendant’s vehicle was approaching behind the standing automobile. "When its driver undertook to divert its course, Mrs. Staunton had but a brief time to avoid being struck by it. It is but natural that under the circumstances she became slightly confused, doubtless due in part to uncertainty as to the exact path that the bus would follow. Apparently she sought to protect Mary Madeline, and both were struck and injured. The testimony of plaintiffs’ witness, hereinbefore referred to, fairly indicates the situation. The fact that Mrs. Staunton failed to avoid the bus may not be regarded under the circumstances as conclusively establishing negligence on her part. The question was for the jury.
In Winckowski v. Dodge, 183 Mich 303, 312, it was said:
“Contributory negligence cannot be imputed to a plaintiff for failure to anticipate negligent acts of a defendant—no one need anticipate an unlawful act.”
The foregoing statement was quoted with approval in Suarez v. Katon, supra. In Guina v. Harrod, 275 Mich 393, the Court, in sustaining a verdict for the plaintiff in a case tried before the circuit judge without a jury, said:
“Pedestrians have the right to cross the street at street crossings even on a through street. They are not required to anticipate that drivers will violate ordinances, statutes or rules of safety. Drivers must anticipate the presence of pedestrians at street crossings and, when they so drive that they cannot see whether the crossing is clear, they must have their cars under such control as to meet conditions which may be reasonably expected. Defendant was negligent in approaching the crossing without proper control of the car in view of his inability to see conditions at the crossing.”
See, also, Holmes v. Merson, supra.; Dasovich v. Longacre, 324 Mich 62; White v. Herpolsheimer Company, 327 Mich 462.
Whether negligence on the part of the driver of defendant’s bus was the proximate cause of the accident and whether plaintiffs’ proofs established Mrs. Staunton’s freedom from contributory negligence were, on this record, jury questions. The verdicts returned were supported by the record. We do not understand that counsel for defendant claim negligence on the part of Mary Madeline, barring, as a matter of law, her right to recover damages.
The judgment in favor of defendant is reversed, and the causes are remanded to the circuit court with directions to set aside such judgment and to enter judgments for the plaintiffs on the verdicts. Plaintiffs may have costs.
Beid, C. J., and Boyles, North, Dethmers, Butzel, Bushnell, and Sharpe, JJ., concurred.
See CL 1948, § 691.691 (Stat Ann 1949 Cum Supp § 27.1461). | [
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Bushnell, J.
(dissenting). Henry E. Maillat, a 75-year-old widower, worked as a night watchman for defendant village of Marcellus. About 10 p. m. on December 13, 1947, he was found unconscious in front of the Marcellus Lumber Company. There was ice on the cement walk where he was lying. He was taken to the hospital and died. within a few hours. An autopsy disclosed a fracture at the base of the skull and a massive cerebral hemorrhage.
Defendant village filed a report with the compensation commission on December 17, 1947, stating:
“How did it occur? No witnesses, it is presumed he fell backwards off the steps of the office entrance of the Marcellus Lumber Co., striking his head on cement walk.”
A supplemental report, dated February 11, 1948, stated there were no dependents.
An order to show cause why defendants should not pay $1,000 into the second-injury fund (CL 1948, § 412.8a [Stat Ann 1949 Cum Supp § 17.158 (1)]) was issued by the commission on September 8, 1948. The hearing occurred before a deputy commissioner on November 17, 1948. Only the defendants appeared. They claimed that the 6-months requirement in filing the claim had not been observed and that the burden was on the State to prove there were no dependents, and the occurrence of a compensable accident. The deputy commissioner put the 2 reports in evidence and, relying on these as making a prima facie case, ordered defendants to pay. Defendants appealed to the full commission from this award.
While the appeal was pending, a second order to show cause was issued by the commission on March 30, 1949. Defendants claimed the matter was res judicata, but the deputy commissioner treated it as directing additional testimony, rather than a rehearing. He then took the testimony of Dr. H. M. Adams, the family physician of deceased who attended him the night of his death. Dr. Adams testified that he had found Mail!at unconscious with a fractured skull and cerebral hemorrhage, and that he had no medical history to indicate a heart attack or fainting spell. After this hearing the deputy commissioner did not enter an additional award.
On September 9, 1949, on the basis of the original hearing and the additional testimony, the commission affirmed the award of the deputy.
Defendants obtained leave to appeal claiming that the first order to show cause was issued too late and that plaintiff had not sustained the burden of proof.
A claim*for compensation against an employer must he filed within 6 months after the employee’s death. CL 1948, § 412.15 (Stat Ann 1949 Cum Supp § 17.165). The requirement of a timely claim is jurisdictional and a condition precedent to the maintenance of an action. LaRosa v. Ford Motor Co., 270 Mich 365, and La Duke v. Consumers Power Co., 299 Mich 625.
It is argued, however, that the limitation does not operate against the State.
The general statutes of limitation recognize the propriety of placing time limitations on the State both as to real and personal actions. CL 1948, § 609.11 (Stat Ann § 27.603) and CL 1948, § 609.28 (Stat Ann § 27.620). See Unemployment Compensation Commission v. Vivian, 318 Mich 598.
The State is not the beneficiary hut only the custodian of the second-injury- fund. It acts in a collection capacity for those entitled under the statute to payments from this fund. The initial action against an employer originates with an order to show cause by the workmen’s compensation commission (Criss v. Taylor Produce Co., 313 Mich 457) and the payments from the fund are also by its order. The protection given an employer under time limitations is equally applicable where the money paid will go to the fund first and then to the individual, as to the individual directly. Here, no claim was instituted within the 6-month period and recovery cannot be sustained. In view of the fore going it is unnecessary to discuss other questions raised.
The award should be vacated, hut without costs.
Reid, C. J., and Sharpe, J., concurred with BTJSH-NELL, J.
Dethmers, J. (for affirmance). I do not concur with Mr. Justice Btjshnell in reversal. Statutes of limitations are applicable to actions by the State when those statutes expressly so provide, as in CL 1948, § 609.11 (Stat Ann § 27.603) and CL 1948, § 609.28 (Stat Ann § 27.620); hut the express provision therefor in those 2 sections evidences a legislative recognition of the rule that statutes of limitations do not apply to the State in the absence of an express provision therein to that effect. That this is the rule was held in Crane v. Reeder, 21 Mich 24 (4 Am Rep 430); and it was so held, even though the action was brought by the State as the trustee of an express trust, in State v. Venice of America Land Co., 160 Mich 680. See, also, 53 CJS, Limitation of Actions, § 15, and 1 Wood on Limitations (4th ed) 157, § 52. The limitation on making claims to the period within 6 months after the employee’s death (CL 1948, § 412.15 [Stat Ann 1949 Cum Supp § 17.165]) is not by express language of the statute-made applicable to the State either in proceedings to enforce payment to the second-injury fund or otherwise.
Defendants treat the second order to show cause, mentioned in Justice Btjshnell’s opinion, as an order for rehearing and cite such cases as Fitzpatrick v. Olds Division of General Motors Corp., 282 Mich 646, as authority for the proposition that the commission may not order rehearings. It seems to me that under the circumstances the deputy commissioner properly treated the order as one for taking additional testimony,- permissible under Rule No 9 of the rules of practice of the workmen’s compensation commission.
Defendants say that plaintiff failed to sustain the burden of showing the nonexistence of dependents of deceased, a prerequisite to the obligation to make payment to the second-injury fund. The defendant village filed with the commission a “Supplemental Report of Fatal Injury,” which contained the following: “Names, ages, relationship to deceased, extent of dependency, and address of all dependents of deceased employee: None.” On numerous occasions we have held that the employer’s report to the department establishes “a prima facie case” as to the material facts stated therein. Reck v. Whittlesberger, 181 Mich 463 (Ann Cas 1916C 771, 5 NCCA 917); Fitzgerald v. Lozier Motor Co., 187 Mich 660; McCartney v. Wood-Temple Co., 217 Mich 505; Hector v. Cadillac Plumbing & Heating Co., 226 Mich 496; Derleth v. Roach & Seeber Co., 227 Mich 258 (36 ALR 472); Kelly v. Ford Motor Co., 280 Mich 378. Since the prima facie case thus made in support of the award was not met by any evidence to the contrary, it follows that the commission’s finding of fact that deceased left no dependents is sustained by the record. The seemingly contrary holding of a majority of this Court in Killion v. E & L Transport Co., 321 Mich 80, was predicated upon the fact that the statement of no dependents in the employer’s report in that case had, in effect, been withdrawn, prior to the hearing before the deputy commissioner, by the employer’s answer alleging that the deceased did leave dependents. The Killion Case is in that respect distinguishable from the instant case and is for that reason not in point here.
Finally, defendants urge that plaintiff did not sustain the burden of showing that the deceased suffered a personal injury resulting in death which arose ont of and in the course of his employment. This contention is based on defendants’ assumption that the testimony taken before the deputy commissioner after the second show cause order may not be considered, thus leaving nothing to support the commission’s finding in this respect other than the statement in the employer’s report to the commission that “It is presumed he fell backwards,” et cetera,, all as set forth in Justice Bushnell’s opinion. In view of the fact that it was proper for the commission to remand the matter to the deputy commissioner for taking of further testimony in accord with said Rule No 9, the testimony taken on that occasion is-properly a part of the record. Competent evidence adduced at that time supports the commission’s finding of fact that deceased sustained a personal injury resulting in death and arising out of and in the course of his employment.
The award is affirmed, with costs to plaintiff.
Butzel, and Carr, JJ., concurred with Dethmers,, J. | [
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Boyles, C. J.
This is an appeal from a decree of the circuit court for Wayne county in chancery affirming the findings and an order of the defendant commissioner of insurance directing the appellant insurance companies to dispose of the securities (stock) held by them in certain corporations. The essential facts have been stipulated.
Appellant Dearborn National Insurance Company was incorporated in 1936 with David F. Broderick as the principal incorporator. Underwriters Acceptance Corporation (Delaware) immediately became the holder of the principal stock interest, and subsequently of all of the stock of Dearborn National Insurance Company, except directors’ qualifying shares and shares held by employees. Underwriters Acceptance Corporation held, as of June 30, 1947, 196,590 shares of the outstanding 200,000 shares of capital stock of Dearborn National Insurance Company.
Appellant Dearborn National Casualty Company was incorporated in 1933, as the Great Lakes Casualty Company, as a reorganization of part of the business of Central West Casualty Company. Prom 1933 to December 20, 1938, the insurance commissioner of the State, as receiver of the Central West Casualty Company, held and voted all of the stock (except directors’ qualifying shares) of Great Lakes Casualty Company, as an asset of said receivership. In 1938, the insurance commissioner, as receiver of Central "West Casualty Company, and holder of all of the capital stock of Great Lakes Casualty Company, as an asset of said receivership, sold all of said capital stock of Great Lakes Casualty Company to Underwriters Acceptance Corporation (then known as D. F. Broderick Incorporated) and its affiliates, including Dearborn National Insurance Company, which then acquired 5,000 shares of the capital stock of Great Lakes Casualty Company. Dearborn National Insurance Company also acquired in 1938, as contributed surplus and at no cost to it, 6,584 shares from stockholders. The name of the Great Lakes Casualty Company was subsequently changed to Dearborn National Casualty Company, one of the appellants herein, and it has continued to operate under that name.
Dearborn National Casualty Company, as of June 30, 1947, held 197,350 shares of the common capital stock out of 295,587 shares outstanding, and 11,000 shares preferred stock, of Intertown Corporation. Said Intertown Corporation holds controlling stock interest in Dearborn Coach Company, a Michigan corporation, which owns all of the stock of Lincoln Park Coach Company, a Michigan corporation. Intertown Corporation also holds controlling stock of the Geoda Corporation. Dearborn National Casualty Company has received from Underwriters Acceptance Corporation, as contributed surplus, 5,000 shares of the common stock and 1,000 shares of the preferred stock of said Geoda Corporation.
David F. Broderick holds voting control of Underwriters Acceptance Corporation, and the board of directors of that corporation has voting control of the appellant Dearborn National Insurance Company, and the board of directors of that company has voting control of the stock of the appellant Dear-born National Casualty Company; the board of directors of that company has voting control of the stock of Intertown Corporation; and the board of directors of that company has voting control of the stock of Dearborn Coach Company and of Geoda Corporation.
David F. Broderick, personally, holds directors’ qualifying shares in Dearborn National Insurance Company and in Dearborn National Casualty Company. He is the president and a director of each of said companies as well as of Intertown Corporation, Dearborn Coach Company, Geoda Corporation, and, also, of Underwriters Acceptance Corporation.
On or about June 30, 1944, Intertown Corporation made a $200,000 down payment on a land contract for the purchase of Eaton Tower, now known as David Broderick Tower, a 34-story office building in Detroit. The purchase contract called for payment by Intertown of a balance of $1,025,000. On or before December 31,1945, Intertown Corporation, then having a land contract vendee’s equity in the building of approximately $225,000, marked up its equity by approximately $252,950 additional value, to $477,950. The department of insurance refused to accept the mark-up, and on or about' November 18, 1946, Intertown paid off the balance of its purchase contract by securing a mortgage for $1,250,000 from Equitable Life Assurance Sociey of New York. Shortly thereafter Intertown Corporation sought to evaluate its equity over the mortgage at an amount in excess of $975,000, which evaluation of its equity by Intertown Corporation the examiners for the department refused to allow. In that connection, the commissioner actually considered the evaluation of the property held by the subsidiary Intertown Corporation..
Since 1936, Dearborn National Insurance Company has in 12 years’ operation experienced net underwriting losses aggregating $1,130,350.96; and has shown investment gains, principally through the Broderick-controlled corporations, totalling $1,185,-790.84. Since 1937, Dearborn National Casualty Company has in 11 years’ operation experienced net underwriting losses aggregating $1,079,479.50; and has shown investment gains, principally through said Broderick-controlled corporations, of $1,579,-185.99.
Appellants concede that the statutes governing State regulation of casualty and fire rates, so that they shall not be excessive or inadequate, make no provision or allowance of latitude for investment gains; but claim that part 2, ch 1, § 16 of the insurance code (CL 1948, § 511.16 [Stat Ann 1943 Rev § 24.84]), requires that “actual value” of an asset controls, in determining the condition of an insurance company. It is stipulated that the rules of the National Association of Insurance Commissioners on Valuation of Securities have for many years contained the following directives:
“Deduction from Admitted Assets on Account of
Inter owner ship of Insurance Companies Stocks:
“Stock of the company itself, owned by it, or any equity therein or loans secured thereby, or any proportionate interest in such stock through the ownership by such company of an interest in another firm, corporation or business unit, shall not be an admitted asset.
“Valuation of Stock of a Subsidiary Company.
“The stock of a subsidiary (other than an insurance company) of an insurer, shall be valued on the basis of the value of only such of the assets of such subsidiary as would constitute lawful investments for the insurer if acquired or held directly by tbe insurer.”
Tbe controlling issue for decision in this case depends on tbe construction of part 2, ch 1, § 16 (8) of tbe insurance code (CL 1948, § 511.16[8] [Stat Ann 1943 Rev § 24.84(8)]), tbe material part of which is as follows:
“(a) Any stock fire, casualty or title insurance company may purchase such stocks, bonds or other evidence of indebtedness of solvent corporations, except insurance companies, as its board of directors or a committee of such board, entrusted by it with the investment of such company’s funds, in the exercise of its judgment may deem proper, and such company may also lend its funds with such securities as collateral but no loans shall be made of more than 50 per cent, of the fair market value thereof; and such company may hold such stocks so purchased and such loans so made as an investment;
“(b) Any stock fire or casualty insurance company shall, with the consent of the commissioner of insurance, have the power to purchase, in an amount not to exceed 1/10 of its assets, the whole or any part of the shares of stock of any solvent insurance company except the stock of life insurance companies organized under the laws of this, or any other State, and hold the same as an investment: Provided, That no funds of any such company shall be invested in or loaned on its own stock: Provided further, That the commissioner of insurance in determining the condition of any such company purchasing, or lending on the securities referred to in paragraphs (a) and (b) hereof, shall not allow the funds, so employed and invested, as and for an asset at more than the actual value, as ascertained in the manner approved by him: * * * Provided further, That if at any time it shall appear to the commissioner of insurance that there is a deficiency in the surplus' in that the value of the total holdings by any company of such securities shall exceed such surplus funds, and if in his judgment the financial stability of the company shall be impaired thereby, he shall issue an order to such company to make good such deficiency within such reasonable time as he may prescribe either by the sale or other disposal of sufficient of such securities, or by the addition to the surplus funds of sufficient legal assets, other than those permitted as an investment in paragraphs (a) and (b) hereof.”
Turning at once to the question as to the method to be adopted for evaluating the assets of an insurance company, appellants argue that the commissioner must determine the then-actual value of the assets of the corporations, the stock of which is held as assets of the insurance company, disregarding* the cost to the company being examined, of the particular assets (in this case, the stock of the subsidiary corporations indirectly controlled by David F. Broderick). This would seem to mean that the commissioner, in determining the assets of the 2 appellant insurance companies, must examine into and determine the actual value of the property of each of the Broderick-controlled subsidiary corporations; and probably the actual value of the property owned by any other corporations, stock in which was held by such subsidiary companies; and so on, ad infinitum. However, the statute does not so require, and the answer to that question is in the statute itself (CL 1948, .§ 511.16[8b] [Stat Ann 1943 Rev § 24.84 (8b)]):
“The commissioner of insurance in determining the condition of any such, company purchasing, or lending on the securities referred to in paragraphs (a) and (b) hereof, shall not allow the funds, so employed and invested, as and for an asset at more than the actual value, as ascertained in the manner approved by him.”
Under the circumstances of this case, the cost to the appellant companies of the unlisted stock of the underlying Broderick-controlled subsidiary corporations which are engaged in various fields of activity, is an essential element which may be controlling in determining the value of such securities, held by the appellant companies. The record before us as to these various corporate entities, the stock in which in substance makes up the assets of the appellant corporations, the interlocking directorates, and the control of said corporations which obviously rests in David F. Broderick through the overriding-corporate Underwriters Acceptance Corporation, justifies the commissioner in investigating, and relying on the cost of the stock of these corporations to the insurance companies under examination, in determining- the condition of the appellant companies.
In December, 1945, the commissioner ordered the appellant companies to correct certain investments in such securities to the extent that they would not be in violation of said subsection 8b, supra, of the insurance code, and likewise in violation of subsection 10 of said section 16 (CL 1948, § 511.16 [Stat Ann 1943 Rev § 24.84]), which subsection reads as follows:
“No insurance company shall have more than 10 per cent, of its capital and surplus invested in or loaned upon the.securities of any 1 institution, nor to any 1 person, corporation or firm on collateral pledges, but this restriction shall not apply to obligations of the United States nor those of agencies or instrumentalities thereof, principal and interest of which are fully guaranteed by the United States, nor to investment in stocks of other insurance companies under the provisions of paragraph (b) of clause eighth of section 16 above.”
In January, 1948, the appellant companies were ordered by the defendant insurance commissioner to show cause, before the commissioner, why an order should not be issued to both of them requiring them to dispose of investments not complying with the provisions of part 2, ch 1, § 16a, of the Michigan insurance code, and also to learn why the companies had not complied with the order of December 18, 1945. A hearing was held by the commissioner, and evidence produced, from which it became apparent that David F. Broderick was the president of both of the appellant insurance companies, was also president of the Underwriters Acceptance Corporation and, together with his wife, owned over 50 per cent, of the stock of the latter corporation. Also, that Underwriters Acceptance Corporation owned the majority of the stock of both of the appellant insurance companies. It was established that Broderick was also either an officer or director of the following corporations: Intertown Corporation (Michigan); Geoda Corporation (Michigan); Broderick Corporation (Michigan); Dearborn Coach Company (Michigan); D. F. Broderick Corporation (Delaware); D. F. Broderick Corporation (Illinois) ; D. F. Broderick Corporation (Indiana); D. F. Broderick Corporation (New York); Jefferson Adjustment Bureau, Incorporated (Michigan); and Intertown Lines System Corporation (Michigan). It was further shown that the stocks of all of these corporations were in the investment portfolio of the Dearborn National Casualty Company and the Dearborn National Insurance Company.
The commissioner ordered that all securities owned by the Dearborn National Casualty Company and the Dearborn National Insurance Company, in which the officers and directors of these companies are pecuniarily interested, namely, the Intertown Corporation (Michigan), Geoda Corporation (Mich igan), Broderick Corporation (Michigan), Dearborn Coach Company (Michigan), D. F. Broderick Corporation (Delaware), D. F. Broderick Corporation (Illinois), D. F. Broderick Corporation (Indiana), D. F. Broderick Corporation (New York), Jefferson Adjustment Bureau, Incorporated (Michigan), and the Intertown Lines System Corporation (Michigan), be disposed of not later than April 1, 1949. Thereupon the appellant companies filed in the circuit court for Wayne county in chancery the instant petition for review of said action taken by the commissioner, under the provisions of CL 1948, § 501.5b (Stat Ann 1949 Cum Supp § 24.5 [2]).
Appellants claim that the commissioner has no power to require an insurance corporation to divest itself of any corporate stock held by it. Part 2, ch 1, § 16, of the insurance code, supra, expressly prescribes the securities and properties in which insurance companies may invest their funds. Subsection 8a, heretofore quoted, permits investments in corporate securities, within definite limitations. Section 2 (CL 1948, § 503.2 [Stat Ann 1949 Cum Supp § 24.41]) authorizes the commissioner to apply to the circuit court for an order directing the insurance company to show cause why the commissioner should not take possession of its property and conduct its business, whenever the company has neglected or refused to observe an order of the commissioner to make good any deficiency, or (among other grounds) whenever the company “is found, after an examination, to be in such condition that its further transaction of business will be hazardous to its policyholders, or to its creditors, or to the public.” Under succeeding sections, the commissioner may take possession of the property and conduct the business, or liquidate the assets and dissolve the corporation, by order of the court. The commissioner has all the powers of a receiver.
The insurance business is affected with a public interest. The insurance laws are liberally construed in favor of policyholders, creditors and the public. Commissioner of Insurance v. American Life Ins. Co., 290 Mich 33. Appellants claim that the authority of the commissioner to order them to dispose of securities which the commissioner finds are held in violation of the insurance code, if such authority exists, must be found in CL 1948, § 511.16a (Stat Ann 1943 Rev § 24.85), which declares that:
“No director or officer of an insurance corporation doing business in this State shall receive any money or valuable thing for negotiating, procuring, recommending or aiding in any purchase by or sale to such corporation of any property or any loan from such corporation, nor be pecuniarily interested, either as-principal, coprincipal, agent or beneficiary in any such purchase, sale or loan: * * * Any person violating any provision of this section shall be guilty of a misdemeanor.”
We do not agree with appellants that under the circumstances of this case the authority of the commissioner must be found solely in said section, or that equity has no jurisdiction under these circumstances on the ground that said section is a penal statute, enforcement of which must rest solely in an arrest and conviction for a misdemeanor. The existence of a penal provision in a statute or an ordinance does not necessarily have the effect of ousting* the chancery court of jurisdiction, where prosecution does not afford an adequate remedy. People, ex rel. Secretary of State, v. State Ins. Co., 19 Mich 392; Board of Health of the City of Grand Rapids v. Vink, 184 Mich 688; Township of Warren v. Raymond, 291 Mich 426. The remedy provided by said section—prosecution of an officer or director for a misdemeanor, does not afford an adequate remedy for the protection of the policyholders or creditors of the appellant insurance companies, or of the public. Equity has jurisdiction, under the circumstances of this case.
By looking through and behind these numerous corporate entities,, we find David F. Broderick in control of both the appellant insurance companies as well as the various enterprises in which the funds of these insurance companies have been invested by acquiring the stock of these corporations. It may be conceded that David F. Broderick is only indirectly interested in the acquiring of these corporate stocks by the appellant insurance companies through the investment of their funds. But Broderick holds voting control of Underwriters Acceptance Corporation, which corporation effectively has control of the 2 appellant insurance companies and, through them, the control of the various enterprises in which the insurance funds have been invested. One of the important elements in this case, which must be considered in determining the result, concerns the numerous corporate entities set up under Broderick’s control by means of which the funds of the appellant insurance companies have been used, directly or indirectly, to finance some 8 or 10 different Broderick enterprises in other corporate fields.
Under the circumstances of the case, we conclude that the insurance commissioner has the authority to require the appellant companies to refrain from keeping their resources invested in the securities of these related entex-prises, where he finds that both the insurance companies and the enterprises in which their funds have been invested (by the acquiring of stock) are controlled by the same individual through a mechanism of corporate holding companies and personal control of the voting powers, and where the commissioner has arrived at a finding that the transactions result actually or potentially in evasion of the principles of diversification (embodied in the insurance code), by the intertwining* of corporate enterprises so that separate appraisement of investments of the insurance companies under examination becomes difficult or impossible.
The record before us factually supports the findings and justifies the order of the commissioner. The decree from which this appeal is taken affirms said order in toio.
Other questions raised by appellants have been considered and do not control the result on the issues before the Court. The decree is affirmed and the case remanded for enforcement, with costs to appellee.
Reid, North, Dethmers, Butzel, Carr, Bushnell, and Sharpe, JJ., concurred.
PA 1917, No 256. This section was amended by PA 1949, No 181, in a manner not material to this case.—Reporter.
PA 1949, No 181, placed this matter in subsection 11 of said section 16.—Reporter.
CL 1948, §§ 503.3, 503.4 (Stat Ann 1943 Rev §§ 24.42, 24.43). | [
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North, J.
November 1,'1929, the garnishee defendant herein, the Inter-City Trucking Service, Inc., entered into a contract with the principal defendant, R. S. Knapp Company, for the construction of a building in the city of Detroit. A performance bond was given and the appellant herein, Fidelity & Deposit Company of Maryland, was the surety on this bond. The plaintiffs in the two cases here collectively considered were subcontractors or materialmen who have recovered judgments against the principal contractor. There is still due and unpaid on the principal contract $11,261.28. In May, 1930, or subsequent thereto the respective subcontractors instituted garnishment proceedings against ■ the owner of the building and sought to satisfy their judgments out of the balance unpaid to the principal contractor. Upon disclosure by the garnishee defendant, the Fidelity & Deposit Company was interpleaded. This company claims the unpaid balance of $11,261.28 under an assignment made to it. The details of such assignment will be noted shortly. The trial court held that plaintiffs under their respective garnishment proceedings had a right to the fund in controversy prior to that of the surety under its assignment. Judgments were rendered accordingly and the Fidelity & Deposit Company has appealed.
The principal defendant, hereinafter called the contractor, applied to appellant to become its surety on a performance bond. The application for the bond contains the assignment under which appellant makes claim to the fund in question. The material portion of the assignment contained in the application for the bond provides that the principal contractor, in event of abandonment, forfeiture or breach of the principal contract:
“Does * * * hereby assign, transfer and set over to the (Fidelity & Deposit) Company, as collateral, to secure the obligations herein and any other indebtedness and liabilities of the undersigned to the company, whether heretofore or hereafter incurred, such assignment to become effective as of the date of said contract bond # * * any and all percentages retained on account of said contract, and any and all sums that may be due under said contract at the time of such abandonment, forfeiture or breach, or that thereafter may become due. ’ ’
In violation of its building contract and bond the contractor failed to pay for labor or material furnished by one Slowman. A mechanic’s lien was filed by Slowman and this lien was paid by the surety. This constituted a breach of the performance bond and rendered the quoted assignment effective as of the date of the bond, December 14, 1929. The effective date of the assignment and the rights thereunder of a subrogated surety were adjudicated in City of Detroit v. Fidelity & Deposit Co. of Maryland, 240 Mich. 213. The principal question presented for determination on this appeal is whether the appellant’s claim to the fund by virtue of its assignment is prior to the claim of appellees made to the same fund based upon their respective garnishment proceedings.
The indebtedness due from the contractor to appellant incident to which it here seeks to exercise its rights under the assignment is indebtedness which is in no way related to the performance of the building contract hereinbefore mentioned. In the circuit court appellant was permitted to reimburse itself for the $2,082 paid by it in settlement of Slowman’s mechanic’s lien. The right it now seeks to assert under its assignment is incident to indebtedness due to appellant from the R. S. Knapp Company entirely independent of the Inter-City Trucking Service contract. On the other hand, as noted above, appellees’ claims are for the payment of labor or materials furnished in the execution of this particular contract. Further, the performance bond on which appellant was surety provided that the principal contractor should satisfy all claims and' demands incurred in the performance of the building’ contract and should pay all persons who had contracts directly with the principal contractor for labor or materials. Because of tbe facts just above noted, the trial judge placed his decision on the ground that an equitable estoppel arose against the surety company and barred it from asserting priority of its claim.
In R. C. Mahon Co. v. R. S. Knapp Co., 262 Mich. 325, it was held by an equally divided court that the bond here in suit “was not made for the benefit of” the subcontractors. Instead, it was given for the sole benefit and protection of the Inter-City Trucking Service, Inc. The subcontractors can assert no legal right under the performance bond, nor can they make successful claim to equitable rights thereunder by way of equitable estoppel in the absence of conduct on the part of the surety company on which the subcontractors had a right to rely and did rely. It is a general rule that to constitute an equitable estoppel the statement or conduct which is alleged to have worked the estoppel must have been a statement made to or conduct known to the party who was expected to act upon it or to his agent or someone in privity with him. Palmer v. Sharp, 112 Mich. 420. This record does not contain testimony which brings the subcontractors within the stated rule. The surety neither said nor did anything on which the subcontractors or any of them had a right to rely or on which they did rely to their detriment.
“The doctrine of estoppel rests upon the inequity of permitting one to allege the existence of facts which by his own conduct he has induced another to believe do not exist.” Hubbard v. Shepard, 117 Mich. 25 (72 Am. St. Rep. 548).
As noted just above, this record does not disclose that appellant misled appellees to their detri nient. There is nothing illegal or inequitable in appellant’s taking an assignment from the contractor of the particular fund here in question to secure payment to it of any indebtedness due from the contractor. The assignment was prior to the garnishment proceedings. No reason appears for denying to appellant the right of asserting such priority. We think the trial judge was in error in applying to the facts of the instant case the doctrine of equitable estoppel. The subcontractors had a complete and adequate remedy by claiming and enforcing mechanics’ liens which in effect would have given them priority over appellant’s assignment. Instead of doing so, each of them has seen fit to resort to a remedy on the law side of the court. In doing so _ they have subjected themselves to the law governing rights of priority of the respective claimants to the $11,261.28 unpaid on the building contract. Appellant’s claim is in excess of this amount. It follows, for the reasons above stated, that appellees’ garnishment proceedings must be dismissed and judgment entered in this court against the garnishee defendant and in favor of appellant for the above-noted balance. Appellant will have costs of both courts against plaintiffs.
Nelson Sharpe, C. J., and Potter, Read, Wiest, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred. | [
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Sharpe, J.
This is an action by the beneficiary named in an application for a life insurance policy.
The material facts are as follows: On July 14, 1943, Errol Smiley made application to the Detroit office of the Prudential Life Insurance Company of America for a 10-year term policy of life insurance in the amount of $9,000. At the time the application was signed, Errol Smiley paid the first annual premium in the amount of $118.80 and signed the following statement which was a part of the application:
“I AGREE THAT: * * *
“(4) Unless the full first premium is paid at the time of making this application, the policy shall take effect only if issued by the company and received by me or by the other applicant, if any, and the full first premium thereon is paid, all while my health, habits and occupation and any other conditions remain as described in the application, in which case the insurance shall be deemed to have taken effect as of the date on the face of the policy; (5) if at the time of signing this application the full first premium is paid, the insurance shall be deemed to have taken effect as of the date of part 1 or 2 of this application, whichever is the later, unless otherwise specifically requested in this application, provided the application is approved and accepted by the company at its home office in Newark, New Jersey, in accordance with the plan, premium and amount of insurance applied for.”
On the same day, Mr. Smiley was given a physical examination by a physician employed by the insurance company and an assistant district superintendent recommended the risk for acceptance. On July 17,1943, Errol Smiley developed severe pains in the stomach, later found to be caused by a ruptured ulcer. He was taken to a hospital, operated on and died July 23, 1943. The application did not reach the desk of the person at the home office, authorized to accept or reject it, until July 26th, three days after the death of Mr. Smiley. On the same day the home office had information that an operation had been performed on Mr. Smiley. It then rejected the application and later refused to pay the claim.
The cause came on for trial and at the close of plaintiff’s testimony, defendant made a motion for a directed verdict of no cause of action for the reason that there was no evidence that the application for insurance was approved and accepted by the insurance company; and that there was no contract for life insurance on Errol Smiley at the time of his death. The trial court took this motion under advisement and upon its renewal at the close of all testimony, granted same.
Plaintiff appeals and urges that when Mr. Smiley paid the insurance premium, the liability of the insurance company immediately attached subject to defeasance only in the event that the home office should reject the application prior to the death of the applicant; and relies upon Wolfskill v. American Union Life Insurance Co., 237 Mo. App. 1142 (172 S. W. [2d] 471).
The receipt in the above case reads, in part, as follows:
“If a full first premium * * * has been paid at the time of the making of such application and declaration of such payment is made therein, the insurance, subject to the terms and conditions of the policy contract applied for and in use by the company of this date, shall take effect on the date hereof, provided the application is completed as agreed therein, and provided the applicant is on this date a risk acceptable to the company under its rules, on the plan, for the amount and at the rate of premium declared paid, and provided further that the applicant is on this date in good health; otherwise the payment evidenced hereby shall be returned upon demand and surrender of this receipt.”
In this case the applicant died before the application was approved or the policy issued. The court there said:
“We are of the opinion that if the applicant, on the date of tlie application, was in good health and was insurable under defendant’s rules on the plan and for the amount of insurance applied for, the insurance was in force from the date of the application and that the company could not arbitrarily decide otherwise. It follows that, if this condition was fulfilled, and there is no evidence as to what were defendant’s rules relating to the matter, the binding receipt provided insui’ance for the amount applied for, et cetera, at the time of the applicant’s death, and the defendant is liable unless it has some other defense. (Western & Southern Life Ins. Co. v. Vale, 213 Ind. 601 [12 N. E. (2d) 350, 353, 355]; Stonsz v. Equitable Life Assurance Society of the United States, 324 Pa. 97 [187 Atl. 403, 107 A. L. R. 178]; Hart v. Travelers’ Ins. Co., 236 App. Div. 309 [258 N. Y. Supp. 711, 716]; Colorado Life Co. v. Teague [Tex. Civ. App.], 117 S. W. [2d] 849.)” '
It should be noted that the application and receipt in the above case were different from the application and receipt in the case at bar. In the above case the receipt was referred to as a “binding receipt” in the application. It did not contain any provision for approval of the application at the company’s home ofiice. It provided that the insurance should take effect on the date of the application, provided the applicant was on that date a risk acceptable to the company.
Plaintiff also relies upon Prudential Ins. Co. v. Howard, 18 Ohio Law Abs. 688; Duncan v. John Hancock Mutual Life Ins. Co., 137 Ohio St. 441 (31 N. E. [2d] 88); and Leube v. Prudential Insurance Company of America, 147 Ohio St. 450 (72 N. E. [2d] 76).
In the Howard Case, supra, there was no provision in the application or the receipt for the return of the premium as there is in the case at bar. In the Duncan Case the receipt for the paid premium reads, in part, as follows:
“No liability is assumed by the company on account of this payment nor until it shall issue a policy, but if death occurs after the date of the application * * * and prior to the date of issue of such policy, payment in accordance with and subject to the conditions and provisions of the policy applied for shall be made; provided the applicant is insurable under the company’s rules and the application is approved and accepted by it at its home office as to plan, premium and amount of insurance.”
The court held that the language, “but if death occurs after the date of application and prior to the date of issue of such policy, payment in accordance with and subject to the conditions and provisions of the policy applied for shall be made,” rendered the provisions of the receipt ambiguous and, therefor, to be construed against the insurance company. In the Leube Case the receipt is similar in contents to the receipt in the Duncan Case and the court, made a similar holding. In the case at bar, it cannot be said the language contained in the receiiot is ambiguous, hence, the above cases are not controlling in construing the instrument before us.
We have been unable to find any Michigan case determinative of the issue of whether or not the language of the application and receipt created interim insurance. However, we have held that a contract for insurance is controlled by the same principles as any other contract.
In Bowen v. Prudential Insurance Co. of America, 178 Mich. 63, 69 (51 L. R. A. [N. S.] 587), we said:
“A contract of insurance rests upon and is controlled by the same principles of law applicable to any other contract. What the contracting parties intended, mutually agreed to, and their minds met upon, is the measure of their obligations.”
See, also, Hall v. Equitable Life Assurance Society of the United States, 295 Mich. 404.
There are a number of cases from other jurisdictions in which it was held that the insurance did not become effective until the application had been approved and the policy issued at the home office of the insurance company.
In Mutual Life Insurance Company v. Young’s Administrator, 90 U. S. (23 Wall.) 85 (23 L. Ed. 152), it appeared that on June 5, 1867, the applicant applied for a policy of insurance, joaid the sum of $99.30, and received a receipt which read as follows:
“Received, San Francisco, June 5, 1867, from McPherson Young, of San Francisco, California, $99.30, being the first quarter-annual premium on his application for a policy of insurance of the Mutual Life Insurance Company of New York, for the sum of $5,000 on the life of said Young, payable at 45 or death, and premiums paid up in full in 10 years; said policy of insurance to take effect and be in force from and after the date hereof, provided that said application shall be accepted by the said company; but should the same be declined or rejected by said company, then the full amount hereby paid will be returned to said applicant upon the production of this receipt.”
The application was forwarded to the company’s home office and a policy was issued. The policy which was issued differed in several respects from that contemplated by the application. After its issuance the policy was transmitted to the company’s agent in San Francisco where it was received on August 2, 1867. The applicant died-on September 20th, without having accepted or rejected the policy which had been forwarded to the California agent and without having knowledge that the substituted policy had been issued. In the litigation which followed, the trial court entered a judgment against the company. In reversing the judgment, the United States supreme court said (p. 106):
“The receipt of the 5th of June was the initial step of the parties. It reserved the absolute right to the company to accept or reject the proposition which it contained. * * * The entire subject was both affirmatively and negatively within its choice and discretion. The acceptance was a qualified one, and there was none other.
“It was by a policy departing from the terms specified in the receipt in the particulars before mentioned but containing as to the conditions imposed otherwise, nothing beyond what was usual in such cases. At this stage of the business, the company was not bound according to the receipt, because it had not agreed to a part of the terms specified, and those terms were material and of the essence of the proposition. Clearly the company never did agree to those terms.”
See, also, Mohrstadt v. Mutual Life Insurance Company of New York, 52 C. C. A. 675 (115 Fed. 81); Brancato v. National Reserve Life Insurance Company (C. C. A.), 35 Fed. (2d) 612; Braman v. Mutual Life Insurance Co. of New York, 73 Fed. (2d) 391.
In Olson v. American Central States Life Insurance Co., 172 Minn. 511 (216 N. W. 225), the application, which was signed by the applicant on September 12,1925, read in part as follows:
“I desire policy issued as of date. And I agree that the period to cover which the first premium is paid shall end one year after said date and that each policy year shall end on successive anniversaries of said date. I also agree that the insurance hereby applied for shall not take effect until the payment of the first premium thereon, and the approval of this application by the company.”
The applicant was examined by defendant’s medical examiner on September 14, 1925, and paid the first premium on September 16, 1925. The application was received at the home office on September 16, 1925, and the medical examiner’s report arrived on September 17, 1925. On September 38, 1925, the applicant was stricken with infantile paralysis and died therefrom on September 23, 1925. On September 25, 1925, notice of the applicant’s illness reached the home office and the application was rejected two days after the applicant died. The court said:
“The formal rejection of the application two days after the death of the applicant could not affect the rights of the parties, although defendant did not know of the death at that time. * * *
“Although the application was never accepted or approved by the company, plaintiff urges that as the policy was to be issued as of the date of the application and the premium paid covered the risk for one year from that date, defendant should be held to have contracted to insure Merritt from the date of his application if he was in fact an insurable risk on that date. The report of the medical examination showed that he was an insurable risk at the time it was taken. Defendant delayed acting upon the application in order to obtain further information as to Merritt’s occupation to enable it to determine whether he came within the single or double indemnity class. He died before this information was received or any action had been taken.
“It is well settled that an application for life insurance is a mere proposal and like any other offer does not become a contract until accepted. * * * But plaintiff argues that unless the insurance began on the date of the application the premium would cover a period during which defendant did not assume the risk, and the insured would be paying for insurance for a period when he was not insured. * * *
“That the assent of both parties to the same set of terms is necessary to create a contract is axiomatic. An offer never becomes a contract until accepted. Where an application provides that the insurance shall not take effect until the approval of the application by the insurer, no contract of insurance exists prior to such approval, although the application also provides that the policy shall bear the same date as the application and that the time covered by the premium shall be measured from that date.”
In Cooksey v. Mutual Life Insurance Co., 73 Ark. 117 (83 S. W. 317, 108 Am. St. Rep. 26), the applicant for insurance signed an application for insurance which contained the following:
“I have paid $* # * to the subscribing soliciting agent, who has furnished me with a binding receipt therefor, signed by the secretary of the company, making the insurance in force from this date, provided this application shall be approved, and the policy duly signed by the secretary at the head office of the company and issued.”
He was examined by a physician who recommended acceptance of the application. The applicant died before the application was accepted and the policy issued. In holding that there was no contract of- insurance in force at the time of death, the court said:
“It is not an unfamiliar custom among life insurance companies in the operation of the business, upon receipt of an application for insurance, to enter into a contract with the applicant in the shape of a so-called ‘binding receipt’ for temporary insurance pending the consideration of the application, to last until the policy be issued or the application rejected, and such contracts are upheld and enforced when the applicant dies before the issuance of a pol icy or final rejection of the application. It is held, too, that such contracts may rest in parol. Counsel for appellant insists that such a preliminary contract for temporary insurance was entered into in this instance, but we do not think so. On the contrary, the clause in the application and the receipt given by the solicitor, which are to be read together, stipulate expressly that the insurance shall become effective only when the ‘application shall be approved and the policy duly signed by the secretary at the head office of the company and issued.’ It constituted no agreement at all for preliminary or temporary insurance.”
' See, also, Northwestern Mutual Life Insurance Company v. Neafus, 145 Ky. 563 (140 S. W. 1026, 36 L. R. A. [N. S.] 1211); Wheelock v. Clark, 21 Wyo. 300 (131 Pac. 35, Ann Cas. 1916A, 956).
In the case at bar the application and receipt for premium paid, contained a promise to return the premium paid if the policy applied for was not issued. It also contained a proviso that the policy would be issued as applied for provided said application is approved and accepted at the home office. Under the application the insurance company reserved the right to accept the application and until the same was accepted there was no binding contract between the applicant and the insurance company. It also follows that there was no interim insurance.
The judgment of the trial court is affirmed, with costs to defendant.
Bushnell, C. J., and Boyles, Reid, North, Dethmers, Butzel, and Carr, JJ., concurred. | [
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Btjtzel, J.
On April 27, 1919, Alfred D. Dunn, a Detroit musician, became a member of Detroit Federation of Musicians, Local No. 5, American Federation, a voluntary musical and fraternal association, the defendant herein. In 1928, Dunn moved to Colorado, but kept up his membership in defendant, which also insured its members. At the time of Dunn’s death, it paid a $1,200 death benefit to the beneficiary designated by the member. Each time a death occurred, an assessment was levied on the surviving members.
Dunn paid his dues and assessments throughout the 13 years of his membership including the first quarter of 1932. The dues for the second quarter were unpaid at the time of his death, May 26, 1932. They were paid within a day or two thereafter by Joe Dunn, a brother of Lawrence K. Dunn, plaintiff herein and beneficiary of the death benefit. Defendant did not know who paid the dues until the time of the trial of the instant suit. It kept them, and made no offer either at the trial or prior thereto, to return them to anyone. They were paid for the quarter in which Alfred Dunn’s death occurred. Defendant based its refusal to pay on the ground that Dunn’s dues were not paid for the quarter in which his death occurred.
Defendant issued no policy or certificate of insurance to its members. The insurance is provided for in the by-laws. Article 18, § 1, of the by-laws provides :
“Upon the death of a member of this local whose dues are paid for the quarter in which the death occurs, the secretary-treasurer shall, after having ascertained the facts of the death, draw a warrant upon the treasury for the sum of $1,500,” etc.
This amount was subsequently changed by resolution to $1,200.
Article 3, § 7, of the by-laws provides:
“The dues become payable on the first day of January, April, July and October and shall be $2 per quarter, if paid before the expiration of the current quarter. If not paid before the expiration of the current quarter, they shall be $2.50 per quarter. If not paid before the expiration of the second' quarter, the member, after due notice, shall stand expelled.”
The trial judge, who heard the case without a jury, held that inasmuch as Alfred Dunn’s dues were not paid until after his death, plaintiff was not entitled to recover. Plaintiff appeals, claiming that the dues were paid for the quarter in which Dunn died, as provided by article Í8, § 1, but even if there were any doubt as to the meaning of this section, article 3, § 7, gives additional time in which to pay dues, and in case of nonpayment provides for expulsion only after due notice.
Under objection, defendant’s records were introduced to show that, in other cases, payment of insurance was refused because the dues for the quarter in which the member died were not paid prior to his death. Defendant also introduced copies of bulletins mailed to its members warning them against losing their insurance in this .manner; also an article in one of the bulletins in which the editor explained the operation of the death benefit by-law, and stated that in order to be in good standing so that the insurance would be in force, the dues for the current quarter in which the death occurred must have been paid prior to the death of the member. The court is not bound to follow the construction placed upon a by-law of the organization by its officers. Morey v. Monk, 142 Ala. 175 (38 South. 265); Manson v. Grand Lodge Ancient Order of United Workmen, 30 Minn. 509 (16 N. W. 395); Davidson v. Supreme Lodge, Knights of Pythias, 22 Mo. App. 263. Were the rule otherwise, payment might be refused upon the most frivolous and unjust grounds, and a precedent thus established to defeat valid claims.
Where there is no certificate of insurance, the constitution and by-laws constitute the entire contract between the members and the association. Badesch v. Congregation Brothers of Willna, 23 Misc. Rep. 160 (50 N. Y. Supp. 958); Honea v. American Council No. 27, 139 Tenn. 21 (201 S. W. 127). The actual agreement must be ascertained from the entire instrument, taking into consideration each and every clause. Thomson Electric Welding Co. v. Peerless Wire Fence Co., 190 Mich. 496.
Defendant shows that members have other benefits and advantages and that the insurance feature is incidental and not the main purpose of the defendant. The by-laws provide that persons joining the organization shall not participate in the death benefit fund until they have been members in good standing for six months or longer; that any person becoming a member of the organization after April 1, 1921, who is 50 years of age or over, shall not be eligible to participate in the benefits of the fund. Members who are reinstated after one year from the date of expulsion shall not participate in the death benefit fund until six months after date of reinstatement, provided they are not 50 years or over at the time of reinstatement.
Courts may not ignore the direct provisions of the constitution and by-laws of a mutual benefit association. They will give a reasonable and liberal construction to them, and when, read as a whole, there is considerable doubt as to whether a forfeiture is rightfully claimed, it will not be upheld. The members of the organization are untrained in the technicalities of language and law, and their equitable rights will be safeguarded, provided no violence is done to the by-laws and constitution. When the latter contain two inconsistent or ambiguous provisions, that most favorable to the insured will be followed. Miner v. Michigan Mutual Benefit Ass’n, 63 Mich. 338; Wolf v. District Grand Lodge No. 6, I. O. B. B., 102 Mich. 23. Where the language of the entire contract is clear and unambiguous, its effect cannot be destroyed by judicial construction. Sturgis National Bank v. Maryland Casualty Co., 252 Mich. 426.
Under article 18, § 1, of the by-laws the dues must be paid for the quarter in which the death occurred. The section does not provide that they must be paid prior to the death of the member. Dunn’s dues for the quarter in which he died were paid and kept by defendant. Article 3, § 7, further gives additional time to pay the dues. Article 18, § 1, also provided that all sums due defendant shall be deducted from the amount due for death benefit. It is possible that the clause requiring payment of dues for the quarter in which the death occurred was inserted so that the member would be charged with them, and the amount deducted from the death benefit. Following the general rules of construction to the facts as presented, we believe the forfeiture was improper, and that plaintiff should recover.
Defendant further claims that plaintiff may not maintain an action at law on a contract to which it is only a third party beneficiary. It relies on the case of Linneman v. Moross Estate, 98 Mich. 178 (39 Am. St. Rep. 528), in which an insurance contract was not involved. We have always properly recognized the right of a beneficiary to bring suit on an insurance contract made by another for his benefit. Voss v. Connecticut Mutual Life Ins. Co., 119 Mich. 161 (44 L. R. A. 689); Nockigme v. Standard Accident Ins. Co., 227 Mich. 506; Repala v. John Hancock Mutual Life Ins. Co., 229 Mich. 463; Homann v. Allgemeiner Arbeiter Bund of Michigan, 184 Mich. 417; Thompson v. Loyal Protective Ass’n, 167 Mich. 31; 1 Williston on Contracts (1st Ed.), § 369.
The judgment for defendant is reversed and the case remanded to the trial court with instructions to enter a judgment for $1,200, with interest. Plaintiff will recover costs.
Nelson Sharpe, C. J., and Potter, North, Fead, and Bushnell, JJ., concurred with Buteel, J. | [
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Edward M. Sharpe, J.
July 31, 1930, plaintiff company sold to defendant company 1,500 barrels of “ Challenge ” brand flour at $4.30 per barrel for scattered shipment over several months. Plaintiff is a milling company in Ohio and receives orders for flour through various brokers. Defendant company is located in Detroit. In the instant case the sale was made through the brokerage office of J. M. Bour & Company of Toledo, Ohio. The order for the flour was taken by George E. Amendt, a salesman employed by J. M. Bour & Company. Before taking the order, Mr. Amendt-called John W. Enright, sales manager of plaintiff company, by long distance telephone in reg’ard to the terms of the order and received Mr. Enright’s approval. The order was then incorporated in the form of a letter to the Mennel Milling Company dated July 31, 1930, and containing the following paragraphs:
“Kindly enter our order for the following: 3,000 —98 lb. bags, new cotton (1,500 bbls.) Challenge at $4.30 per bbl.
“Composed of one-half red wheat and one-half white wheat. 93% selected soft winter patent flour. Packed in new 98 lb. cottons. * * *
“Right of inspection and rejection reserved by the Acme Pie Co., also the flour to conform to our standard of quality.”
This letter was signed by P. J. LeCody on behalf of the Acme Pie Company and by G-eorge E. Amendt on behalf of the Mennel Milling Company. The original remained in the possession of the defendant and there is no showing as to what happened to the copy although Mr. Amendt testified that he supposed he turned it over either to J. M. Bour & Company or to the Mennel Milling Company.
By letter dated July 31, 1930, plaintiff acknowledged the order as follows:
“Thank you for the order you have given our Mr. G. E. Amendt this morning, and we are pleased to confirm booking for you 1,500 barrels of our Challenge select soft winter patent flour at $4.30, basis cotton halves Detroit, for scattered shipment from November 1, 1930, to May 1, 1931.”
Several shipments of flour were made and accepted by defendant. On November 20, 1931, defendant complained to the milling company as to the quality of the flour and after July 16, 1932, defendant refused to accept any more flour and notified plaintiff to that effect. Plaintiff began suit for loss on the remaining 585 barrels of flour.
Plaintiff claims that the contract was an oral contract and that George E. Amendt had no authority to sign the written contract on its behalf; that where goods are furnished under a brand name, the furnishing of goods of that brand name is a full compliance with the contract under 2 Comp. Laws 1929, § 9454, subd. 4; that the contract was severable, and that failure to meet the requirements on one instalment would not entitle defendant to rescind future instalments.
Defendant contends that George E. Amendt had special authority to sign the written contract; that such contract contained an express warranty or condition that the flour conform to defendant’s standard of quality; and that defendant had the right to rescind when plaintiff admitted that future instalments would be of the same grade as those already received.
The case was tried before a jury and resulted in a verdict for defendant from which plaintiff appeals.
The question of the authority of the salesman to bind the plaintiff company was properly submitted to the jury, which found in favor of defendant. The evidence regarding the telephone call by Amendt to plaintiff’s sales manager was sufficient to sustain a finding of the agent’s authority.
Under the terms of the written contract the defendant had the right of inspection and rejection and the flour was to conform to defendant’s standard of quality. The defendant was not only purchasing flour under a brand name with certain specifications, but there was also an express stipulation as to quality. The statute excluding implied warranties in sales of articles under a trade name does not extend to express warranties or conditions.
“But the mere fact that the article happens to have a trade name and is denoted by it in the contract does not exclude all warranties and assign the transaction to subdivision 4 of § 64-315, Oregon Code 1930 (same as 2 Comp. Laws 1929, § 9454, subd. 4).” J. A. Campbell Co. v. Corley, 140 Ore. 462, 475 (13 Pac. [2d] 610, 613).
The court charged the jury as follows:
“I further charge you, members of the jury, that if you decide that the defendant was entitled to the benefits of the written contract, or the purported ■written contract, more particularly the right of rejection, that the defendants in rejecting the flour must act in good faith and be honestly dissatisfied. * * * It becomes a question of fact for you whether the defendant was reasonable in rejecting the balance of that shipment. If you find that the flour did not answer the purpose for which it was intended, and that the plaintiff had knowledge that the flour was to be used for baking pies, it would be your duty to render a verdict for the defendant of no cause for action.”
We think the court was correct in this instruction, and defendant presented ample proof of the unsatisfactory quality of the flour.
Plaintiff admits that future deliveries of flour will be of the same quality as that already delivered. Here there is positive proof that the unshipped flour would not be suitable for the purpose intended by the defendant and under such circumstances, we think the defendant had the right to reject future shipments.
Judgment affirmed, with costs to defendant.
Nelson Sharpe, C. J., and Potter, North, Pead, Butzel, and Bttshnell, JJ., concurred with Edward M. Sharpe, J. Wiest, J., concurred in the result. | [
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Carr, J.
Defendant was convicted in the recorder’s court for the city of Detroit of the crime of taking indecent liberties with the person of a 9-year-old girl,' without committing or intending to commit the crime of rape, in violation of Act No. 328, § 336, Pub. Acts 1931 (Comp. Laws Supp. 1940, § 17115-336, Stat. Ann. § 28.568). The information filed in the case alleged that the offense was committed on the 26th day of May, 1945, in the city of Detroit. It was the claim of the prosecution on the trial that the conduct charged against defendant occurred in a certain theater on the afternoon of the date alleged. Defendant’s testimony discloses that he was 26 years of age at that time. Trial by jury was waived and the case was heard before the court. Defendant has appealed from the verdict and sentence.
It is claimed on behalf of defendant that the evidence in the case was insufficient to establish with the requisite degree of certainty 'that the offense charged was actually committed. The statute cited provides:
“Any male person or persons over the age of sixteen years, who shall assault a female child under the age of sixteen years, and shall take indecent and improper liberties with the person of such child, without committing or intending to commit the crime of rape upon such child, shall be guilty of a felony.”
The child against whom the offense is claimed to have been committed, herein referred to as the complaining witness, testified that she entered the theater in company with a younger sister and another girl 10 years of age. The children sat together and the youngest fell asleep. A man, claimed by the people to have been defendant,, sat down beside the complaining witness. In describing the alleged offensive conduct, she further testified:
“As soon as he moved in and sat down, he put his hand up my dress. I think I told Adrien to move over, so she did; then I moved over a seat and he moved over a seat, too. He put his hand on .the bare skin of my leg, but he didn’t move his hand very high, though, up my dress or whatever it was I was wearing. I didn’t tell Adrien why I wanted her to move over until after I got out of the show because I was scared. I was so scared I didn’t know what to do. He did it until the show was over, I guess, and then I went out with Adrien in a hurry and I told her; then I went home and told my mother, and my mother came back with Adrien.”
It is argued by defendant’s counsel that the conduct described in the testimony quoted was not sufficient to constitute the offense defined by the statute. Reliance is placed on language found in the opinion of this Court in People v. Hicks, 98 Mich. 86. There the defendant was charged with the crime of taking indecent liberties with the person of a female child, and the child against whom the offense was claimed to have been committed gave testimony similar in character to that of the complaining witness in the instant case. However, in the Hicks Case, the child’s mother was permitted to detail a conversation in which the child made statements indicating that defendant had taken more objectionable liberties with her person than her testimony on the trial suggested. .In holding that such testimony by the mother was incompetent and prejudicial, the Court expressed doubt if, without such testimony, the jury would have convicted of any greater offense than assault and battery. It is significant to note that the Court did not state that a verdict of guilty of the more serious offense charged could not have been sustained on the basis of the testimony of the occurrence as given by the girl. It is significant to note also that in the ease cited defendant was apparently well acquainted with the girl and with her parents. The case was reversed, not because of the insufficiency of competent evidence to establish the offense, but because of error in the admission of the testimony in question and also error in the charge of the court.
In the case at bar, the circumstances surrounding the offense charged against the defendant were materially different from those involved in People v. Hicks, supra. Here the parties concerned were not acquainted, and there is nothing in the record to indicate that the complaining witness had ever previously seen the man who sat beside her in the theater. The testimony is undisputed that he placed his hand on her bare leg under her dress, and that he kept it there for some time. The circumstances under -which the act was done indicate the motivating purpose and intent. Clearly, the occurrence was not accidental. The fright of the complaining witness at the time and her subsequent complaints to her companion and to her mother are significant. The statute penalizes conduct that is of such character that the common sense of society regards it as indecent and improper. People v. Healy, 265 Mich. 317; People v. Visel, 275 Mich. 77. The offense against the person of the complaining witness, as detailed in her testimony, was of such character as fully to justify the conclusion of the trial judge that the offense charged in the information had been committed. The claim that the corpus delicti was not sufficiently established is without merit. People v. Lakin, 286 Mich. 282.
It is also claimed that the proofs as to the identity of defendant were not of such character as to justify his conviction. Emphasis is placed on testimony of the complaining witness, who gave somewhat inconsistent answers to questions propounded to her and indicated uncertainty as to her identification of defendant. However, the testimony of the girl Adrien, given in a normally childish manner, indicated that she was positive that defendant was the man sitting beside the complaining witness in the theater. In answer to the question, “What makes you think you are positive he is the man?”, she replied, “He looks just like that man.” The following testimony, given on cross-examination by defendant’s counsel, is also significant:
“Q. Now, when you went up to the police station and you saw these men standing up and you were asked a question about this man, you said this was not the man, is that right ?
“A. I said that was the man.
“Q. You said that was the man? When did you say that?
“A. When he was in that dark room, when they had him turn aronnd. Not when he was facing me bnt when he turned around and I saw the side of his face, I knew it-was him.
“Q. You just saw the side of his face, but when you saw him full, the way he is standing now, you told the policemen that is not the man?
“A. I said it was the man, but I wasn’t sure until he said — he had him turned.
“Q. When he turned around and you saw his hunch-back, is that right? You knew that he was hunch-backed; that is why you said that is the man?
“A. No, it wasn’t why. I said it because I only seen the side of the man’s face and I could tell the side of the face even better than I could tell him from his front view.”
Defendant testified in his own behalf and denied that he was at the theater in question on the afternoon of May 26, 1945. He did, however, admit attending said theater on other occasions, although it was located several miles from his home. He was arrested in the theater on June 16th following the date of the alleged offense. He claimed that at the time the offense was alleged to have been committed he was visiting at the home of friends, Mr. and Mrs. Mrozek. The latter testified in his behalf in support of his claim of an alibi. She stated that defendant came to her home between 3 and 4 o’clock in the afternoon on the 26th of May and that he stayed until about 7:30. Mr. Mrozek was not called as a witness, although defendant testified that he was at home on the occasion of defendant’s visit.
The testimony of defendant and his witness is at variance with that of the people’s witness, the girl Adrien. As the trier of the facts it became the duty of the trial judge to determine the credibility of the witnesses and decide the disputed issue. It is apparent that he believed the testimony of the people’s witnesses. We cannot say that he erred in doing so. In People v. Blanchard, 136 Mich. 146, it was held that this Court will not, on appeal in a criminal case, weigh conflicting evidence. The trial judge saw7 and heard the witnesses and he w7as in a far better position than is this Court to determine their credibility. There was evidence to support the finding that defendant was guilty beyond a reasonable doubt. Such being the case, this Court may not set aside the verdict on the ground that the evidence was not sufficient to sustain it. People v. Eger, 299 Mich. 49; People v. Chesbro, 300 Mich. 720.
It is further claimed that the trial court did not accord defendant the benefit of the presumption of innocence throughout the trial. We have examined the record and conclude that the claim is wholly without merit. Defendant was ably represented by counsel, and there is no basis for any claim that he did not have a fair trial. The verdict and sentence are affirmed.
Busi-inell, C. J., and Sharpe, Boyles, Reid, North, Dethmeds, and Butzel, JJ., concurred. | [
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Reid, J.
This is an action in assumpsit brought under the provisions of the statute commonly designated as the blue-sky law, 2 Comp. Laws 1929, § 9769 et seq., as amended by Act No. 165, Pub. Acts 1941 (Comp. Laws Supp. 1940, 1943, § 9769 et seq., Stat. Ann. and Stat. Ann. 1944 Cum. Supp. § 19.741 et seq.).
Plaintiff sued for recovery of moneys paid for purchase of stock which was not authorized by law to be sold. After the case was at issue, plaintiff moved for summary judgment against both defendants. Defendant Smart filed an affidavit of merits. Plaintiff had judgment for $1,500 and costs against both the individual defendant and defendant corporation. Defendant Smart appealed; defendant Plastic Arts Corporation did not appeal. For convenience, we will hereinafter refer to defendant Smart as the defendant.
On or about November 15,1944, defendant was introduced to plaintiff by Vera Harper, a friend of plaintiff, Miss Harper being the secretary of the Plastic Arts Corporation, of which corporation defendant was president. Defendant admits that on November 17, 1944 he wrote a letter to plaintiff, a photostatic copy of which letter is attached to plaintiff’s affidavit in support of her motion for summary judgment. The letter is as follows:
“Smart Safety Engineering Corporation
19417 Derby Avenue
Detroit 3, Michigan
11-17-44
“Carroll M. Smart,
President and General Manager
“Miss Elizabeth Cleland
1538 East Strathcona Avenue
Detroit, Michigan
“Dear Miss Cleland:
“At our last regular meeting, your name for membership in the Plastic Arts Corporation, was placed for nomination by your sponsor, Vera Harper.
“The vote of acceptance was unanimous and I hereby wish to notify you of the results.
“You are now a member of Plastic Arts Corporation and I have reserved 2,500 shares of stock in your name. Stock certificates in the amount of $1,350 will be issued to you in the very near future.
“We are happy to welcome you into our organiza tion and have every confidence your association with us will be both pleasant and profitable.
Very truly yours,
S/ Carroll M. Smart,
President.” .
“CMS/ja”
On or about January 12, 1945, plaintiff by payment of money completed the purchase of 1,500 shares of the treasury capital stock of Plastic Arts' Corporation. Defendant admits that he voted to' admit plaintiff as a stockholder and that the Said-1,500 shares of stock were sold by Plastic Arts Corporation to plaintiff through defendant as an officer of Plastic Arts Corporation but claims that plaintiff, who was acquainted with other officers and directors of Plastic Arts Corporation, first discussed the purchase of stock in said corporation with them' and on the basis of information received from those other officers and directors and without any representations, inducements or promises by defendant,-' purchased the said stock in the corporation, receiving full consideration therefor, and that no fraud' or misrepresentation of any kind or nature Avhatsoever Avas practiced upon plaintiff by defendant. Defendant further admits that $1,500 AATas paid to him as an officer of Plastic Arts Corporation for said stock and alleges that Ruth hi. Harper, an-: other officer of Plastic Arts Corporation, delivered the stock certificates to plaintiff.
Defendant admits that the capital stock of Plastic Arts Corporation at the time of its sale to plaintiff or at any time thereafter Avas not approved for sale' by the Michigan corporation and seeimties commission and admits that he Avas not licensed or authorized as a broker to sell the same.
Defendant admits receiAÚng notice and demand for return of purchase money prior to the institution of the suit, but denies that physical tender of the stock was made before suit was brought. It appears that the stock certificates were tendered in court. The sufficiency of the tender is not specifically attacked in defendant’s statement of questions involved.
In his affidavit of merits, defendant states that to the best of his knowledge and belief he was never authorized, empowered or appointed by the corporation to sell the stock. The record nowhere shows the actual agency of defendant but on the contrary contains his denial of agency. However, defendant’s actions and representations clearly indicated that he was making himself a participant in the procurement of the sale and that he held himself out to plaintiff as an agent.
In addition to the admitted facts, hereinbefore noted, from defendant’s letter of November 17, 1944, taken as an entirety, the inference is fair that he was writing the letter to plaintiff for the purpose of urging upon her attention the matter of her purchasing stock, and influencing her judgment in favor thereof. Defendant in the letter further stated, “I have reserved 2,500 shares of stock in your name.” The concluding sentence of the letter is, “We are happy to welcome you into our organization and have every confidence your association with us will be both pleasant and profitable.” (Italics supplied.) This coming from the president of the company, who must be assumed to have knowledge of its affairs, must be considered as an active inducement and persuasion on the part of defendant to cause plaintiff to complete the transaction. It is to be noted that payment to defendant for the stock was made after plaintiff’s receipt of the foregoing letter and on or about January 12, 1945. Defendant Signed the stock certificates as president of the corporation, knowing that the stock was to go to plaintiff.
From defendant’s actions and representations and plaintiff’s purchase pursuant thereto, it is to be considered that plaintiff concluded that defendant was the agent of the corporation for the purpose of the sale.
Plaintiff cites Chambers v. Beckwith, 247 Mich. 255, in which we note the following (p. 260):
“If her [plaintiff’s] testimony was true, and the jury believed it, defendant recommended the purchase of the stock, took'the cheeks for the purchase price, and, as president of the company, signed the stock certificates sent to her. If he did these things, he was liable in this action.”
The cause of action in the Chambers Case arose while a former blue-sky law, Act No. 46, Pub. Acts 1915 (3 Comp. Laws 1915, § 11945 et seq.) was in force. That law was afterwards repealed and Act No. 220, Pub. Acts 1923, as last amended by Act No. 165, Pub. Acts 1941, was in effect when this cause of action arose. However, for consideration of the dispute in the case at bar, the act of 1915 was sufficiently analogous to the statute governing this case that the Chambers Case is of some value as showing that the court should not and did not adopt a narrow and restricted interpretation of the blue-sky law. Judgment for Chambers was upheld even though Act No. 46, Pub. Acts 1915, contained no express enactment of a clause reciting that a violation of the act carried civil liability. The rights of plaintiff in the case at bar are governed by a statute which does expressly provide in different sections for both civil and criminal liability and we should consider and apply the civil liability provided for in the statute in determining the instant case.
Plaintiff in this case planted her action upon the blue-sky law in effect at the time her action arose, section 20 of which law as amended by Act No. 37, Pub. Acts 1935 (Comp. Laws Supp. 1940, § 9788, Stat. Ann. § 19.760), is as follows:
“Sec. 20. Every salé or contract for sale of any security, not accepted for filing or othenvise exempt under this act or made contrary to any order of the commission, or made contrary to any provision of this act, shall be voidable at the election of the purchaser, and the person making such sale or contract for sale, and every agent of or for such seller who shall have participated or aided in any way in making such sale, shall be jointly and severally liable to such purchaser, upon tender to the seller or in court of the securities sold or of the contract made, for the full amount paid by such purchaser, together with all taxable court costs, in any action brought under this section: Provided, That no action shall be brought for the recovery of the purchase price after two years from the date of such sale or contract for sale. No purchaser otherwise entitled shall claim or have the benefit of this section, who, having knowledge of the fact that such sale was made in violation of the provisions of this act shall have refused or fail within a reasonable time to accept the voluntary offer of the person making the sale to take back the securities in question and to refund the full amount paid by such purchaser.”
The Avord “agent” as used in section 20 is subject to the explanation and meaning set forth in section 2 of the act, as amended by Act No. 165, Pub. Acts 1941 (Comp. Laws Supp. 1943, § 9770, Stat. Ann. 1944 Cum. Supp. § 19.742), subdivision (h) of which section 2 reads as follows:
“(h) The term ‘solicitor,’ ‘solicitors,’ ‘agent’ and ‘salesman’ shall include every natural person, other than dealer, broker or issuer, employed or appointed or authorized by a dealer, broker or issuer, to sell, trade or purchase securities in any manner in this State, or who takes subscriptions for the sale of any securities.”
Part of the effect of subdivision (h) is to make clear that certain persons are meant to be included in the terms, solicitor, solicitors, agent and salesman, who otherwise might not be thought to be meant by the act to be in such category.
We note the following from People v. Montague, 280 Mich. 610, 619:
“The act [blue-sky law] should not be rendered impotent by a narrow interpretation of its language.”
We consider that defendant made himself liable as though an agent, notwithstanding that he was not in fact shown to have been authorized to act as an agent.
We consider that for the purposes of determining civil liability under the act, the word “agent” in section 20 above quoted is to be construed in view of the whole statute and its expressed and evident purpose, as including not only an authorized agent but, also, any person who holds himself out to be an agent, whether he is a true agent or a false or volunteer agent who has no real authority to act for the assumed principal. In so construing the Avord “agent” Ave further have in mind the provisions of section 3 of the blue-sky law, as amended by Act No. 37, Pub. Acts, 1935 (Comp. Laws Supp. 1940, § 9771, Stat. Ann. § 19.743), which is as folloAVs:
“Sec. 3. No person, either acting personally or through an agent, or as the agent of another, shall on and after the date this act goes into effect, sell or trade any security to, and/or with any person in the State of Michigan contrary to the provisions of this act. The provisions of this act shall be liberally construed to the end that the purposes thereof may be accomplished by preventing fraud, deception and imposition on purchasers of securities.” (Italics supplied.)
It clearly appears from the admitted facts in this case that defendant Smart acted as the agent of the corporation. By so acting he made himself liable as though an agent.
• The judgment appealed from is affirmed. Costs to plaintiff.
Bushnell, C. J., and Sharpe, Boyles, North, Dethmers, Butzel, and Carr, JJ., concurred.
Act No. 271, Pub. Acts 1947, was not in effect when the cause of action in this ease arose. | [
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North, J.
This is a suit on an insurance policy to recover for the complete loss of an automobile by fire. On trial by jury plaintiffs had verdict and a judgment for $1,200. Defendant’s motions for a directed verdict and for judgment non obstante veredicto were denied. It has appealed.
On May 10, 1946, plaintiff Dailey purchased the automobile from plaintiff Brink on a time-purchase plan or conditional sales contract. Only part of the purchase price had been paid at the time of the fire, in consequence of which Brink has joined as a plaintiff. The sale of the car to Dailey was negotiated by a Mr. Weaver, as agent or salesman for Brink. When the sale was consummated Weaver called the Grand Rapids agency of defendant and requested insurance on the car. The policy was issued on Weaver’s application, May 11, 1946. It was delivered shortly thereafter by mail to Dailey at his home, and remained in force until the fire occurred, August 14 or 15,1946. Dailey testified that when ho received the policy he “looked it over,” and knew he had fire coverage on the automobile.
Under the circumstances of this case involving a fire loss, liability on tbe policy was by its terms made subject to numerous “Conditions,” including the following :
“Named insured’s duties when loss occurs — * * * When loss occurs, the named insured shall: * * * ■(c) File proof of loss with the company within 60 days after the occurrence of loss, unless such time is extended in writing by the company, in the form of a sworn statement .of the named insured setting forth the interest of the named insured and of all others in the property affected, any encumbrances thereon, the actual cash'value thereof at time of loss, the amount, place, time and cause of such loss, the amount of rental or other expense for which reimbursement is provided under this policy, together with original receipts therefor, and the description and amounts of all other insurance covering such property. # * *
“Payment for loss; action against company— * * * Payment for loss may not be required nor, shall action lie against the company unless, as a condition precedent thereto, the named insured shall have fully complied with all the terms of this policy nor until 30 days after proof of loss is filed and the amount of loss is determined as provided in this policy.”
Among other grounds asserted by defendant in support of its motions for a directed verdict, for judgment non obstante veredicto, and also in support of its claim of reversal on this appeal, is that the undisputed testimony discloses proof of loss was not filed as required in the policy. As against defendant’s claim in this particular, plaintiffs say in their brief:
“The plaintiff filed a sworn statement in regard to the loss which was prepared by defendant’s agent and the defendant’s agent investigated the loss completely and led plaintiff to believe no further proof was necessary.”
While it is true that a representative of the defendant insurance company took a sworn statement from plaintiff a few days after the fire, such state ment by no means complied with the requirements of the policy for proof of loss. Instead it fairly appears from the record that the statement which concludes with the following words, “I swear I did not set fire to the car myself,” was taken incident to the defendant’s investigation as to whether the fire was accidental or otherwise. Nothing in the record justifies the above assertion that defendant’s agent “led plaintiff to believe no further proof was necessary.”
Plaintiffs further assert a waiver by defendant of the policy requirement as to filing with the insurer proof of loss within 60 days after it occurred. Such waiver is claimed to arise from the following. Eighty-five days after the fire attorneys for defendant wrote a letter to Dailey as follows:
“Dear Sir:
“Our investigation of your total fire loss has been completely investigated and after checking into all of the facts and circumstances surrounding the fire and the resulting damages to your car, and after completely examining the report submitted to this office by Sergeant Quentin Dean of the State Police; and after lengthy correspondence and conferences with your insurance company, we are hereby respectfully denying liability on this claim.”
As above noted, this letter to plaintiff from defendant’s lawyers was written a considerable time after the expiration of the 60-day period within which the policy required proof of loss, and further there is nothing in the communication inconsistent with the defense that -because plaintiff failed to file proof of loss as required in the policy he may not recover thereon. The undisputed testimony discloses that plaintiff did not file proof of loss, which is required in the policy as a condition precedent to recovery thereon; and further the record discloses without controversy that there was no waiver by defendant of the policy requirement as to proof of loss. Under such circumstances decision herein is clearly controlled by Gould v. Dwelling-House Insurance Co., 90 Mich. 302; Peck v. National Liberty Insurance Co., 224 Mich. 385; Fenton v. National Fire Insurance Co., 235 Mich. 147; and Helmer v. Dearborn National Insurance Co., 319 Mich. 696. In each of the above eases recovery on the policy by the insured was denied. The pertinent provisions of the policy involved in the Peck Case, in their legal effect, were quite identical with those in the policy in the instant case. They were:
“ ‘The insured shall, within 60 days after the fire, unless such time is extended in writing by this company, render to this company a proof of loss, signed and sworn to by the insured, stating the knowledge and belief of the insured as to the following; * * *
“ ‘No suit or action on this policy, for the recovery of any claim, shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, nor'unless commenced'within twelve months next after the liability shall have accrued.’ ”
Because the foregoing is conclusive of decision herein, discussion of other phases of matters of defense urged by appellant is not required. The judgment entered in the circuit court is vacated and the case remanded for judgment in favor of defendant non obstante veredicto. Defendant will have costs of both courts.
Bushnell, C. J., and Sharpe, Reid, Dethmers, Butzel, and Carr, JJ., concurred.
Boyles, J., concurred in the result. | [
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Wiest, J.
Upon trial by jury defendant was convicted of the crime of statutory rape (Act No. 328, §520, Pub. Acts 1931). He prosecutes review by appeal and alleges five errors. One error commands reversal.
The prosecution had the burden of showing and the jury the obligation of finding, beyond a reasonable doubt, before verdict of guilty, that defendant had sexual intercourse with Virginia Summerland on or about September 2, 1932, and at that time she was under the age of 16 years.
The girl testified to the act, and her mother testified that the girl was born March 14, 1917, and, therefore, was 15 years, 5 months and 19 days of age on September 2, 1932. The testimony of the mother was competent but the weight thereof, in view of the appearance of the girl and all else disclosed in the case, was for determination by the jury.
At the close of the proofs and during the argument of counsel for the defendant he stated:
“Now the girl and her mother said she was born in Detroit, and she was born, they said, in Detroit on March 14, 1917, and they have birth records in Detroit, and yet they have not been produced. Why? I ask you to look at the girl, and I ask you do you believe she was under the age of 16 years old?”
The prosecutor objected, stating:
“It is not in issue here.”
The court stated:
‘ ‘ The age is absolutely in issue. If the age is not proven, you are out of court entirely if she was over 16. ’ ’
Counsel for defendant said:
“I have not heard anything admitting yet — ”
The Court (interrupting):
“Wait a minute. I have sometimes even sent out people for the birth certificate. I don’t care what the verdict is but before I pass sentence, I will always have a birth certificate first. This police officer knows better than to come into court without a birth record. From past experience she should know. Sometimes people don’t absolutely remember the birth date.”
Thereupon counsel for defendant continued his argument to the jury and, at the close th&rédfj the prosecutor, in arguing, stated:
“Now, if there is a record over there showing that the girl’s age is 16, don’t you think that defense counsel has investigated to see, and would have — ”
Counsel for defendant, interrupting:
“Now, I object again; that we are'not required to prove anything. You are required to prove this man guilty beyond a reasonable doubt.”
The Court:
“Incidentally, both of you forget that I am presiding here. I am going to tell them what the law is. You go ahead and tell them, and then, perhaps, I will change it all. You can go ahead and argue on the testimony. I am going to give the law, and I won’t give in on that.”
The remarks by the trial judge relative to the certificate of birth constituted reversible error, for it operated as an assurance to the jury that the court would take evidence upon the question of age after verdict, if defendant was convicted, and tended strongly to relieve the jurors of their otherwise essential sense of ultimate responsibility. The jurors might well have felt that, in' case they found defendant guilty, the trial judge would subsequently save error, if any, on their part by examination of the record of the birth of the girl. Sense of conscientious responsibility on the part of jurors must not be lessened by any such assurance by the court.
Upon the question of the age of the girl, defendant had the right of submission of that issue to the jury and have determination wholly apart from any thought of divided responsibility.
Defendant moved for a new trial, one ground being the failure of the prosecution to indorse on the information the names of the 10-year old sister of the prosecutrix and an adult boarder at defendant’s home, who were both in another part of the house at the time of the alleged offense. No motion to so indorse was made at the trial and the point could not be reserved as grounds for a motion for a new trial.
Upon the question of commission of the act by defendant the proofs presented an issue of fact for submission to the jury and the court was not in error in holding the verdict was not contrary to the great weight of the evidence.
On direct examination of the prosecutrix the following occurred:
“Q. When did you first tell anybody about that?
“A. It was after Christmas.
“Q. It was after Christmas ?
“Mr. McCrea (counsel for defendant): I object to it, if your honor please. It is too remote.
“The Court: You mean after September 2d? Be more definite.
‘ ‘ Q. And who did you tell ?
“A. I told one of the matrons in the boarding school.
“Q. Do you know her name?
“A. Yes, Mrs. McFee.
“Q. And by the boarding school, you mean the place you are at now?
“A. No.
“Q. What boarding school was it?
“A. It was the St. Agnes Home.
“Q. Where is that?
“A. In Romeo.”
It is claimed the testimony was inadmissible. The prosecutrix was of tender years and the delay is explained by discovery of her pregnancy about that time. The fact of complaint is not substantive evidence but merely a circumstance bearing upon the credibility of the witness. Counsel for defendant cite People v. Black, 231 Mich. 48. The prosecutrix in that case was above the age of consent.
There was not reversible error in admitting such testimony.
For the reason before stated the conviction is reversed and a new trial granted. Defendant is remanded to await trial.
Nelson Sharpe, C. J., and Potter, North, Fead, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred. | [
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Butzel, J.
Plaintiff listed a certain parcel of real estate for sale with a Detroit broker who offered it to defendant. The latter signed an offer to purchase the property for $19,000 and made a deposit of $1,000. On the following day plaintiff ese cutcd a written acceptance of the offer. There is no dispute as to the terms of the agreement, paragraph 10 of which reads as follows:
“In consideration of the broker’s effort to obtain the seller’s approval, it is understood that this offer is irrevocable for 7 days from the date hereof, and if not accepted by the owner within that time, the deposit shall be returned forthwith to the purchaser. If the offer is accepted by the seller, the purchaser agrees to complete the purchase of said property within the time indicated in paragraph 7, or forfeit to the seller the deposit made herein as liquidated damages.”
In plaintiff’s acceptance, it is stated:
“If the deposit money is forfeited for nonperformance by purchaser, the seller agrees that one half of such deposit shall be paid to the broker (not exceeding the amount of commission) for services rendered.”
Defendant refused to complete the sale, whereupon plaintiff filed a bill for specific performance. Defendant, in his answer, moved for dismissal of the bill of complaint, contending that under the terms of the agreement he had an option either to complete the purchase or else to forfeit Ms $1,000 deposit as liquidated damages. The trial judge denied the motion to dismiss in accordance with a written opinion which he filed. Almost two months later, defendant filed a. motion to amend his answer to include allegations that the contract was procured by fraud and misrepresentation. The proposed amendment was as follows :
“Further answering said bill of complaint, defendant says that when he inspected said land prior to making an offer to purchase it, plaintiff informed Mm that approximately three acres of the area enclosed by the fence being a strip of land 10 rods in width, had been conveyed to a public utility company; that he inquired of plaintiff the location of the strip so conveyed; that plaintiff represented to defendant that the strip so conveyed was off the east boundary of the land; and that in fact the strip so conveyed ran through the area fenced and commonly known as 1007 Rose Center road, and divided it into two parcels, detracting materially from the usefulness and value of the land.”
The court ruled that the motion to amend came too late; that defendant could not first affirm the contract and seek to avoid liability thereon by forfeiting his deposit money, and then, after an adverse decision, disaffirm the contract on the ground of fraud and misrepresentation.
Defendant thereupon indicated that he had no other defenses, and a.' decree was entered by the trial judge granting plaintiff specific performance of the agreement.
Under the statute, trial courts have the power to allow amendments to pleadings for the furtherance of justice. 3 Comp. Laws 1929, § 14144 (Stat. Ann. § 28.838). Whether or not an amendment may be allowed rests in large measure in the discretion of the trial judge. His ruling should not be disturbed except upon a showing of an abuse of discretion. Konstantine v. City of Dearborn, 280 Mich. 310. We believe there was no such abuse of discretion herein.
The principal question presented is, does the contract give the defendant an option either to forfeit the $1,000 deposit and be released from liability thereon, or to complete the purchase? We are not unmindful of the fact that plaintiff’s agent drew the.contract and that it must be construed strictly against her if there is ambiguity in it. However, wTe find that the contract is not ambiguous. Therefore, the real question is, what was the intention of the parties as expressed by the contract? In Milner Hotels, Inc., v. Ehrman, 307 Mich. 347, 356, we said:
“A stipulation in regard to liquidated damages does not preclude a suit for specific performance unless it appears from the whole contract that it was the intention of the parties that the right to pay the stipulated sum or perform the contract should be optional. Hedrick v. Firke, 169 Mich. 549. 2 Restatement, Contracts, p. 700, § 378. Also, see authorities assembled in 32 A.L.R. 584, 98 A.L.R. 887.”
To the foregoing may be added the observations in Decker v. Pierce, 191 Mich. 64, 70:
“The rule established at an early day in Michigan was the following: Where, by the terms of a contract, a sum is mentioned as ‘liquidated damages’ for a nonperformance of several distinct stipulations of very different degrees of importance, and this sum is to be payable equally on a failure to perform the least, as of that to perform the most, important or whole of them together, it is in legal effect a penalty, and not stipulated damages; and the fixing of such a penalty by the contract is no objection to specific performance. Daily v. Litchfield, 10 Mich. 29.”
See, also, Franko v. Olszewski, 316 Mich. 485. It appears upon examination of numerous cases from other jurisdictions that the general rule is properly set forth in Milner Hotels, Inc., v. Ehrman, supra, i. e., that specific performance will be decreed notwithstanding a clause in regard to stipulated damages unless it clearly appears from the contract that it was the intention of the parties that by- payment of stipulated damages the party sought to be held would be released. We find nothing in the contract in this case to that effect.
The decree is affirmed, with costs to plaintiff.
Sharpe, Boyles, Reid, North, Dethmers, and Carr, JJ., concurred.
Bushnell, C, J., did not sit. | [
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North, J.
By this suit in equity plaintiff sought construction of a contract entered into by it with one Robert D. Commons, a declaration of rights, reformation of the contract, and injunctive relief by which plaintiff sought to have enjoined the prosecution of two suits at law brought against plaintiff herein by the Modern Fixture Company, Inc., as assignee of Robert D. Commons. On motion of defendants, plaintiff’s bill of complaint was dismissed. The grounds of dismissal in substance were: (1) It appears from the face of plaintiff’s bill that plaintiff has a full, complete and adequate remedy at law; (2) It appears on the face of said bill that said bill is wholly without equity; and (3) The charges of fraud or mutual mistake contained in the bill are mere conclusions or opinions of the pleader, indefinite and vague, and unsubstantiated by sufficient facts properly pleaded and therefore fail to state a cause of action in equity. Plaintiff has appealed.
Plaintiff owned a building in Muskegon Heights, a part of which it desired to alter or remodel so that it would be suitable for operating a club room or tavern, and to purchase and have installed therein suitable fixtures, furnishings, et cetera, for the conduct of its tavern business. Plaintiff entered into negotiations with Robert D. Commons which resulted in a contract labeled “sales agreement,” which was prepared by Commons and is printed in the margin hereof. It will be herein referred to as exhibit 1. At the inception of the transaction out of which this suit arose, Robert D. 'Commons was doing business in his individual capacity, but later he incorporated his business as the Modern Fixture Company, Inc. Notwithstanding this circumstance, we herein refer to Robert D. Commons as the defendant unless otherwise indicated. Incident to the negotiations prior to the execution of exhibit 1, Commons was present on the 14th day of March, 1946, at a meeting of plaintiff’s board of directors. Concerning what transpired at and following this meeting, it is alleged in plaintiff’s bill of complaint:
“That at said meeting the said Robert D. Commons stated that he would have to have $5,000 to start the work with, $5,000 when the plastering job was done, and the balance when the job was finished; that the said Robert D. Commons undertook to induce plaintiff to award the work of equipping and completing the tavern on a cost-plus basis, which plaintiff refused to do; and that at said meeting a resolution was adopted to accept the offer of the said Robert D. Commons to equip and complete said tavern ready for occupancy and operation for the sum of $15,000; that at said meeting plaintiff appointed two of its officers, C. C. Smith and James Young, as a committee to work with the contractor; and that the said Robert D. Commons then and there agreed with plaintiff to furnish the bar, bar fixtures, booths, tables, chairs, wall panelling, and other equipment selected by plaintiff’s officers, and to perform the work required to remodel the building in order to convert it into a tavern, for the sum of $15,000. * * *
“That subsequent to the 14th day of March, 1946, Robert D. Commons prepared an agreement (exhibit 1) dated the 14th day of March, 1946, which he represented to C. C. Smith and James Young, who had been appointed a committee to work with the contractor, and to one of plaintiff’s officers, Albert J. Grlotzbach, embodied the terms of the agreement entered into between plaintiff and the said Robert D. Commons on March 14, 1946, at the aforesaid meeting of plaintiff’s board of directors; that, in reliance upon said representation, the said Albert J. Grlotzbach, C. C. Smith, and James Young, signed said agreement, and the said Robert D. Commons likewise signed it.”
The real crux of this lawsuit is this. Plaintiff claims that the preliminary negotiations, and the subsequent contract as it was understood by plaintiff’s representatives, were that for the consideration of $15,000 Commons agreed not only to furnish the bar, bar fixtures, booths, tables, et cetera, and do the work incident to installing the same in plaintiff’s premises; but that Commons was also to perform the work and furnish the material required to remodel a part of the building in order to convert it into a tavern. But on the other hand it fairly appears Commons’ contention is that, in addition to furnishing and installing the bar, bar fixtures, et cetera, he was only to supervise and oversee the work required' to remodel the building and that the cost of such remodeling was not included in his contract. It also fairly appears that one of the two suits at law, the prosecution of which suits plaintiff sought to have enjoined, was a suit in the circuit court.for work and material, et cetera, furnished by Commons in accomplishing the remodeling of the building so that a part of it would be converted into suitable quarters for a tavern or club; and that the other was a suit in the municipal court “for tavern supplies delivered to plaintiff after the completion of the remodeling program involved in the circuit court action.”
As we understand, plaintiff in the first instance claims that exhibit 1, when properly construed, obligated Commons, in consideration of $15,000, which was paid to him by plaintiff, not only to furnish and install the fixtures, et cetera, but in addition to furnish the labor and materials for altering the building. We cannot so hold. Exhibit 1 is headed “sales agreement,” and at the outset exhibit 1 contains the following:
“First parties agree to purchase and second party agrees to sell and install: Bar, back bar, stools, booths, tables and whatever other fixtures may be necessary to completely equip the club room operated by parties of the first part. Party of the second part will also supervise and oversee all interior decoration and construction work that may be necessary to prepare said club room for installation of equipment.”
We find nothing in exhibit 1 which nullifies or modifies the plain provisions just above quoted. Plaintiff is bound by the contract unless it was procured by fraud. This gives rise to the question as to whether plaintiff in its bill of complaint has alleged fraud in such a manner as would entitle it to relief if such allegations were established by competent proof.
As is properly urged by plaintiff in passing upon defendants’ motion to dismiss “all properly pleaded allegations of fact must be accepted as true.” Scott v. Grow, 301 Mich. 226, 233 (141 A. L. R. 819). Since plaintiff’s right to relief by way of reformation turns upon plaintiff’s claim of fraud on the part of Commons, the test will be this: Is such fraud properly and sufficiently alleged in the bill of complaint?
A careful reading of the hill of complaint discloses that the only allegations therein which could be considered as charging defendant Commons with fraud are as follows:
Paragraph 3 of the bill of complaint reads:
“That subsequent to the 14th day of March, 1946, Robert D. Commons prepared an agreement (exhibit 1) dated the 14th day of March, 1946, which he represented to C. C. Smith and James Young, who had been appointed a committee to work with the contractor, and to one of plaintiff’s officers, Albert J. Glotzbach, embodied the terms of the agreement entered into between plaintiff and the said Robert D. Commons on March 14, 1946, at the aforesaid meeting of plaintiff’s board of directors; that, in reliance upon said representation, the said Albert J. Glotzbach, C. C. Smith, and James Young, signed said agreement, and the said Robert D. Commons likewise sigmed it. * * *”
And paragraph 8 of the bill of complaint contains the following:
“That, if said agreement, exhibit 1, varies the terms and conditions of the agreement authorized by plaintiff’s board of directors at said meeting (March 14, 1946), the said Albert J. Glotzbach, C. C. Smith, and James Young, signed said writing (exhibit 1) under the mistaken belief that it conformed to the agreement authorized at said meeting, and by reason of the fraud of the defendant, Robert D. Commons, in representing to them that the agreement required him to have the tavern complete and ready for operation for the sum of $15,000, and in concealing from them any claim on his part that the agreement (exhibit 1) as prepared by him would entitle him to recover any amount in excess of $15,000 for the work of completely remodeling, furnishing, and equipping the tavern.”
Surely the foregoing allegations in the bill of complaint with reasonable clearness charge fraud on the part of Commons, and that it was in consequence of the alleged fraud that exhibit 1 was purportedly executed in behalf of plaintiff corporation. If at a hearing on the merits competent testimony was offered in support of the material allegations in the bill of complaint, a case of fraud would be presented and upon consideration of all the facts and circumstances disclosed, the court would determine whether or not the alleged fraud was perpetrated and whether or not plaintiff in consequence thereof was entitled to reformation. If the reformation sought by plaintiff was decreed, it would afford a material defense to at least one of the two pending lawsuits brought by the Modern Fixture Company, Inc., against plaintiff; whereas in the absence of reformation such defense would not be available in either of the suits at law.
On the record before us we think it cannot be said that under all the circumstances presented by plaintiff’s bill of complaint it has a complete and adequate remedy at law touching the matters alleged in the bill of complaint; nor. does it appear that said bill is wholly without equity; or that the allegations of fraud therein contained are only conclusions of the pleader, or that they are too indefinite, vague, et cetera, to state a cause of action in the equity court.
For the reasons above indicated we conclude that the trial judge was in error in dismissing plaintiff’s bill of complaint; and it is, therefore, ordered that the decree entered in the circuit court be vacated and this suit in equity remanded to the circuit court with the right to defendants to file an answer in said cause and for further proceedings therein. On this appeal plaintiff will have taxable costs against both defendants. A decree will be entered in this Court accordingly.
Bushnell, C. J., and Sharpe, Boyles, Reid, Dethmers, Butzel, and Carr, JJ., concurred.
“‘EXHIBIT 1.’
“SALES AGREEMENT
“This sales agreement, made and entered into this fourteenth day of March, A. D. 1946, by and between greater Muskegon Club Building Incorporated, of Muskegon, Michigan, and Robert D. Commons, doing business as Modern Fixture Company, of the same place:
“Witnesseth: First parties agree to purchase and second party agrees to sell and install: Bar, hack bar, stools, booths, tables and whatever other fixtures may he necessary to completely equip the club room operated by parties of the first part. Party of the second part will also supervise and oversee all interior decoration and construction work that may be necessary to prepare said club room for installation of equipment. Said work to commence at once. Fixtures and interior decoration to be as per samples respectfully submitted by party of the second part.
“1. Exceptions to original quotations to be agreed upon by both the parties of the first and second parts.
“2. The parties of the first part agree to pay to the party of the second part a deposit of $5,000 before start of said club remodeling. Said $5,000 to be used by party of the second part for purchase of materials and payment of labor as said club remodeling gets under way. Second payment of $5,000 to be made upon completion of plaster work. Final payment to be made after interior decoration, construction work, and installation of fixtures has been completed.
“3. Total cost of club remodeling not to exceed $15,000, unless agreed upon by the committee appointed by the party of the first part. Said committee to have three members with the proper authority, available at all times during remodeling installation work to approve any changes in plans that may be necessary, of which two may have authority to make changes.
“4. Title to said equipment to he installed, shall at all times remain with said Robert D. Commons, until the entire purchase priee is paid in full.
“5. Fulfillment of all order and agreements are contingent upon accidents, fire, strikes, nonfulfillment of contracts for materials, or other causes beyond control.
“6. Section five shall be decided by a 3-man arbitration board appointed in the following manner: One to be appointed by party of the first part, one to be appointed by party of the second part, and one to be appointed by mutual agreement of both parties.
“In witness whereof, the parties hereto have hereunto set their hand and seals the day and year first above written.
“(S) Robert D. Commons (S) O. C. Smith
(S) Albert J. Glotzbach
“In the presence of:
“(S) James Yodno” | [
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Bushnell, C. J.
Plaintiff Michigan and Vicinity Conference Board, together with plaintiffs Gus Wancour and John Friedrich, both employees of defendant Enterprise Foundry Company, seek a declaratory decree with respect to the provisions of Act No. 10, pt. 7, § 4, Pub. Acts 1912 (1st Ex. Sess.), as added by Act No. 61, Pub. Acts 1937, and amended by Act No. 318, Pub. Acts 1945 (Comp. Laws Supp. 1945, § 8485-4, Stat. Ann. 1947 Cum. Supp. § 17.223).
The conference board is an unincorporated association composed of 14 unions of the International Molders & Foundry Workers Union of North America (AFL) having approximately 4,200 members within the State of Michigan. Defendant Enterprise Foundry Company operates a foundry in the city of Detroit and employs a number of individual molders who are members of one of the locals represented by plaintiff conference board. Defendant American Mntnal Liability Company is the defendant’s insurer under the workmen’s compensation act. The remaining defendants are the commissioners of the department of labor and industry of the State of Michigan.
The act, supra, involved in the present controversy, reads as follows:
“Provided, further, That all employers subject to the provisions of this act shall furnish to their employees without charge a complete physical examination at regular intervals, but not more than 1 such examination in each period of 6 months, and shall furnish to the employee a true copy of the medical report when the presence of silicosis, pneumoconiosis or other dust disease is found. Provided, further, That employees who shall refuse to submit to such examinations when required shall not be entitled to the benefits provided by part 7 of this act.”
Plaintiffs contend that Act No. 318, Pub. Acts 1945, is unconstitutional and void, and that employees of defendant foundry company should not be barred from the benefits provided them by part 7 of the workmen’s compensation act because of their refusal to submit to the physical examination required by the 1945 act.
The trial judge held that plaintiff conference board is not a proper party within the provisions of the declaratory judgment statute (3 Comp. Laws 1929, § 13903 [Stat. Ann. § 27.501]), and dismissed the cause as to such board. The case, however, was decided on the merits since two of the defendant’s employees were joined as parties plaintiff. The trial judge held that the 1945 act is limited solely to an amendment of section 4 of part 7 of Act No. 10, Pub. Acts 1912 (1st Ex. Sess.), as added by Act No. 61, Pub. Acts 1937, and has no effect on any other section of the 1937 act.
It was further held that “no complete physical examination is provided for except in the ease of industries in which there is danger of dust diseases, and that no complete physical examination is provided for in the amendment in question against any other kind of occupational disease,” and that the act, so construed, is not unconstitutional. From a decree entered in conformity with such determination plaintiffs have appealed.
Since two of the defendant foundry company’s employees have been joined as parties plaintiff, it is unnecessary to determine whether plaintiff conference board is a proper party plaintiff within the requirements of the declaratory judgment statute, supra. It might be observed, however, that, according to accepted labor practices in the Federal field, and in other State labor proceedings, employees may be represented and speak through their labor unions and associations, but we do not pass on that question at this time so far as Michigan is concerned. However, see United States Heater Co. v. Iron Molder’s Union of North America, 129 Mich. 354.
The applicability of the declaratory judgment statute, supra, is not challenged and, therefore, on that question we express no opinion here. See, however, City of Muskegon Heights v. Danigelis, 253 Mich. 260 (73 A. L. R. 696), where the Court said:
“Under former practice a friendly suit would have been brought, entertained, and right in the matter adjudicated. Now, under the declaratory judgment act, there is presented issuable questions of fact and law of great public moment, and, if the act is to serve a.t all, it must be permitted to serve in this instance.”
It is argued by appellants that the act in question creates “an unreasonable classification and by imposing more severe penalties upon employees in the dust industries than other employees and because the requirement of a complete physical examination has no reasonable relation to the object sought to be obtained, the act is unconstitutional.”
Appellants also contend that the terms of the act in question are vague, indefinite, and uncertain, and therefore incapable of enforcement.
It is apparent from plaintiffs’ brief that the employees affected by the 1945 act fear that this legislation, though perhaps on its face beneficial to them and the industry, is actually and primarily for the benefit of those insurance companies who specialize in industrial risks; that the physical examinations imposed will result in the elimination from this field of labor those who have latent or potential physical defects, and thereby deprive them of their ability to earn, and, on the other hand, permit employers and their insurers to escape future liability under the workmen’s compensation act.
This argument has no bearing upon the matter of constitutionality. C. F. Smith Co. v. Fitzgerald, 270 Mich. 659.
The wisdom of the legislation in question is a legislative responsibility with which courts may not interfere. Straus v. Elless Co., 245 Mich. 558; Gober v. Federal Life Ins. Co., 255 Mich. 20; Little v. American State Bank of Dearborn, 263 Mich. 645; and Buehler v. University of Michigan, 277 Mich. 648.
Plaintiffs claim that since the act is applicable only to workers exposed to dust, it constitutes an unreasonable and, therefore, an unconstitutional classification. By way of emphasis they point out that workers exposed to lead poisoning are not required by the act to undergo similar physical examinations, although they are subject to some of the same occupational hazards.
In answer to this argument we accept and adopt the reasoning of the California court in Application of Fred J. Martin for a writ of Habeas Corpus, 157 Cal. 51 (106 Pac. 235, 26 L. R. A. [N. S.] 242), as follows:
“It is argued by the appellant that the act is special because it does not include in its scope many occupations other than mining which are equally dangerous to the health of the persons engaged in them. Reference is made, for example, to marble cutters and marble drillers, diamond cutters, workers in furnaces and laundries, men employed in wine cellars, breweries and ice-houses, men in boiler works, matchmakers, cleaners of clothes, makers of white lead, of china and earthenware and many others.
“The argument is, apparently, that any law is special which does not include all of these occupations. This view is obviously unsound. Whether these other occupations present the same dangers to health as those involved in mining, et cetera, and whether, if they do, these dangers can best be met by restricting the hours of labor, are primarily questions for the legislature. The legislature has determined one or both of them in the negative by enacting this law. The selection of the businesses requiring regulation is confided to the legislative discretion, and this discretion is not subject to judicial review unless it clearly appears to have been exercised arbitrarily and without any show of good reason. It certainly cannot be justly said to be apparent that each or any of the trades instanced by counsel is, in its effect upon the health of workers, identical with the occupations covered by the act under discussion, nor that the most appropriate method of counteracting any injurious effects pertaining to any of them is necessarily the same as that found to be suitable for miners and men working in smelting and reduction works. In other words, the law is not rendered special by the mere fact that it does not cover every subject which the legislature might conceiv ably have included in it. It is enough that the subjects covered possess such intrinsic peculiarities as to justify the legislative determination that those subjects require special enactment.”
See, also, Miller v. Detroit Savings Bank, 289 Mich. 494; Michigan Telephone Tax Cases, 185 Fed. 634; Citizens Telephone Co. of Grand Rapids v. Fuller, 229 U. S. 322 (33 Sup. Ct. 833, 57 L. Ed. 1206): Kelley v. Judge of Recorder’s Court of Detroit, 239 Mich. 204 (53 A. L. R. 273); and Mulloy v. Wayne County Board of Supervisors, 246 Mich. 632.
Other phases of the appellants’ argument are more troublesome. Are the statutory words “complete physical examination” so indefinite as to be incapable of enforcement?
Dr. Charles H. McIntyre, who for six years was an instructor in surgery at the University of Michigan Medical School, and since then a surgeon in private practice in Kalamazoo, testified at length with reference to the meaning of this phrase. On cross-examination he said:
“I cannot conceive the term ‘complete physical examination’ being used with respect to the determination of some particular ailment.”
He insisted that such an examination includes an inquiry into family background and involves interrogation with reference to all bodily functions. He stated that an X-ray examination is necessary in order to determine the presence of silicosis.
In Volume 21 of the Indiana Law Journal, p. 661, July, 1946, may be found papers read at a national symposium which reviewed the basic principles in workmen’s compensation. Among these papers is one by Dr. Norbet Enzer of Mt. Sinai Hospital at Milwaukee, on the specific subject of silicosis. According to Doctor Enzer the most important phase of a clinical examination is that of an X-ray of the chest. Without such evidence the diagnosis of silicosis cannot be made during the lifetime of the patient. This examination requires, the use of most highly skilled and trained experts in radiology. Functional tests such as “minute volume respiration,” “vital capacity,” “respiratory response to exercise,” and others, are useful only when it is shown that other disorders in the body are absent.
This writer points out that despite the fact that the cause of the disorder is precise, the manifestations of the disease vary considerably and the X-ray findings must be correlated with industrial and medical history and other tests. In short, this authority concludes that a worthwhile examination for the purpose of obtaining an accurate result must be special and specific rather than general, and then conducted only by specialized experts in the particular field of pulmonary reactions to the inhalation of inorganic dust.
It is therefore doubtful whether a “complete physical examination” is the proper description of one that will disclose the presence of “silicosis, pneumoconiosis, or other dust disease.” As stated by Doctor Enzer, silicosis is a complex disease. To understand it thoroughly a physician must observe it from its inception, until the last chapter has been disclosed on the autopsy table.
It cannot be said, in the light of the testimony in this record and the examination of authoritative data on the subject, that the desired end can be accomplished by a “complete physical examination.” What is needed is apparently just the reverse, i.e., a specific examination for the purpose of disclosing “pulmonary reactions to the inhalation of inorganic dust.”
It is unnecessary to determine at this time whether the examination proposed in this statute is an invasion of the employee’s right of privacy. It is, however, not such an examination as is already required by the workmen’s compensation law. That act now provides in part 2, § 19 thereof (2 Comp. Law’s 1929, § 8435 [Stat. Ann. § 17.169]), as follows:
“After an employee has given notice of an injury, as provided by this act, and from time to time thereafter during the continuance of his disability, he shall, if so requested by the employer, or the insurance company carrying such risk, or the commissioner of insurance, as the case may be, submit himself to an examination by a physician or surgeon authorized to practice medicine under the law’s of the State, furnished and paid for by the employer, or the insurance company carrying such risk, or the commissioner of insurance, as the case may be. The employee shall have the right to have a physician provided and paid for by himself present at the examination. If he refuses to submit himself for the examination, or in any way obstructs the same, his right to compensation shall be suspended, and his compensation during the period of suspension may be forfeited. Any physician w’ho shall make or be present at any such examination may be required to testify under oath as to the results thereof.”
This statutory requirement, enacted in 1912 (Act No. 10, Pub. Acts 1912 [1st Ex. Sess.]), has been accepted by employer and employee alike, and its application is well known to the profession. See, also, Act No. 18, Pub. Acts 1941 (Comp. Laws Supp. 1945, § 14238-2, Stat. Ann. 1947 Cum. Supp. § 27.475 [1]).
The most difficult question is that which grows out of the penalty clause, which reads:
“Provided, further, That employees who shall refuse to submit to such examinations when required shall not be entitled to the benefits provided by part 7 of this act.”
Thus stated, this statutory penalty, under certain circumstances, is wholly unrelated to the beneficent purpose of the act and would bar the employees involved from any compensation whether related to dust diseases or not.
We are mindful of the presumption of constitutionality and that we may not usurp the law-making functions of the legislature.' The penalty, however, as stated in the act, might operate in perpetuity. Desirable as its end may be, the amendment contains provisions which are indefinite, uncertain, and unreasonable. Furthermore, the procedure with reference to physical examinations is not in accord with fundamental principles of “due process of law.”
We refrain from repeating what we have recently said with respect to a comparable act (Act No. 10, pt. 7, § 6, Pub. Acts 1912 [1st Ex. Sess.], as added by Act No. 61, Pub. Acts 1937 [Comp. Laws Supp. 1940, § 8485-6, Stat. Ann. 1947 Cum. Supp. § 17.255]), in Dation v. Ford Motor Co., 314 Mich. 152 (19 N. C. C. A. [N. S.] 158).
We are, therefore, constrained to hold the amendment in question void and unconstitutional.
The decree below is vacated and one may be entered here in conformity with this opinion. A public question being involved, no costs will be allowed.
Sharpe, Boyles, Reid, North, Butzel, and Carr, JJ., concurred. Dethmers, J., did not sit. | [
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Bushnell, C. J.
This is an appeal by Martha Eggert from an order of the circuit court for the county of Saginaw, denying the claim which she filed against the estate of her sister, Anna G. Showers, deceased. This claim, which was also denied in the probate court, was for “rent collected belonging to claimant from August 1940 to September 1945 at $54 per month, $3,294.”
The facts as stated in the circuit, judge’s opinion, and his reasons for denying the claim, are as follows :
“The claim is based on the rental of certain premises located on Williamson and Gallagher streets in the city of Saginaw alleged to have belonged to the claimant. Claimant and the decedent, Anna Showers, were sisters, resided together and apparently lived with one another in amity. It is undisputed that Arthur C. Showers, husband of the decedent, collected the rentals for a number of years and turned them over to his wife, but there is no competent testimony as to what disposition Mrs. Showers made of the rentals. There is a fragment of testimony indicating that Mrs. Showers was engaged in the furnishing of criminal bonds and at times prospered in that business. There is also testimony indicating that she ceased the business in the early 1940’s because of the forfeiture of one of her bonds because of the failure of her client to appear in the Federal court when the case was called. There is also a fragment of testimony indicating that there was an arrangement between the decedent and claimant whereby she was to pay a small amount for board, to receive a small amount per year for clothing and to render household services to the decedent. There is evidence also that claimant was in ill health during a portion of the period during the years 1940 to 1945 inclusive. How much of the rentals received were devoted to' the payment of taxes, upkeep of premises and the like does not appear.' There is also fragmentary testimony indicating that the title to the premises was, during a large part of the alleged rental period, vested in the decedent. This title was apparently changed so that the claimant and decedent became joint tenants with the right of survivor-ship and two of the parcels were sold and the entire proceeds arising from the sale were admittedly turned over to the claimant.”
Claimant was handicapped by the Statute (3 Comp. Laws 1929, § 14219 [Stat. Ann. § 27.914]), which forbids the testimony of the opposite party as to matters equally within the knowledge of the deceased.
The property in question is designated in the record as “910 Williamson street, 836 Williamson and 808 Gallagher.” Claimant still owns the property at 910 Williamson, and was living in it at the time of trial.
The cause was determined by the trial judge sitting without a jury. In such instances, “we do not. reverse unless the evidence clearly preponderates in the opposite direction,” Hanson v. Economical Cunningham Drug Stores, Inc., 299 Mich. 434, 437. Examination of the testimony does not show that the evidence does so preponderate.
The order denying Martha Eggert’s claim is affirmed, but without costs, no brief having been filed by the estate.
Sharpe, Boyles, Reid, North, Dethmers, Btjtzel, and Carr, JJ., concurred. | [
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Sharpe, J.
On leave granted, the defendants appeal in the nature of certiorari from an order of the department of labor and industry denying a reduction in the rate of compensation payments heretofore fixed at $23 per w7eek.
The facts are undisputed. Frederick1 Rexford sustained a fatal injury arising out of and in the course of his employment by the Trailer Transport Company on June 5, 1944. He left surviving a widoiv, Virginia Rexford, and two minor children by a previous marriage both under the age of 16 years. Thereafter, an application for a hearing was filed and an award for compensation was ordered paid to the widoAv and two minor children at the rate of $23 per week in accordance with the provisions of the compensation act.
The defendant insurance company paid compensation in accordance with the aAvard until May 2, 1946, at which time the dependent Virginia Rexford Avas married to one Lloyd Gauss. Since said marriage the defendant has continued payment to the remaining dependents at the rate of $21 per Aveek. On August 28, 1946, the department of labor and industrv entered an order setting the case for hearing before a deputy commissioner for further determination of the rate of compensation Avhich should be paid to the remaining dependents. As a result of this order a hearing Avas had on January 28, 1947, and an award Avas entered dated January 29, 1947, requiring the defendants to continue payments at the rate of $23 per week. A claim for review was filed with the commission. On June 24, 1947, the commission affirmed the award of the deputy commissioner.
The issue in this case is identical with the issue involved in the case of Webster v. Rotary Electric Steel Company, ante, 526, and decision in that case this day decided is controlling in the case at bar.
The award of the department of labor and industry is reversed and remanded for entry of an award at the rate of $21 per week as of May 2,1946. No costs are allowed as the construction of a statute is involved.
Bushnell, C. J., and Boyles, Reid, North, Dethmers, Butzel, and Carr, JJ., concurred.
See 2 Comp. Laws 1929, § 8421. as nmoiulorl hv Aft No. 245, l>ub. Affs 1943 (Comp. Laws Supp. 1945, § 8421, Stat. Ann. 1947 Cum. Supp. § 17.155).—Reporter. | [
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Edwards, J.
For some years the city of Flint has desired to convey to the United States govern ment a parcel of city-owned property located in the city of Flint, known as Kearsley Grove, for the purpose of erecting thereon a national guard armory. An attempt by the city in 1955 to accomplish this transfer of the property for the purpose stated and without any remuneration was defeated by taxpayer suit which was ultimately decided by this Court—albeit by a narrow 4-3 margin. Younglas v. City of Flint, 345 Mich 576. The majority opinion there held (p 579):
“The proposed transfer of the city property, without consideration, to the United States government, even though beneficial to the general public, amounts to an appropriation which is not for a city public purpose, an application thereof to public uses not under the control or care of the city, and, hence, void.”
From the bill of complaint filed in the matter currently before this Court, we learn that the city was by no means discouraged in its purpose. We presume the city commission noted the term “without consideration” used above, for the bill of complaint informs us:
“On or about the 27th day of December, 1956, the 9-man Flint city commission, with Commissioner Delling absent, voted 8 to 0 to sell the property known as Kearsley Grove at a private sale without bids, for a reported price of $35,000, to the Committee of Sponsors of the Flint Cultural Development, and on or about the same day, the mayor and clerk signed a deed, purporting to convey said property in the style and manner above related.”
The bill of complaint likewise alleges city ownership of the land and its operation as a public park since 1920, and the plaintiff’s interest as a neighboring property owner who relied upon the park’s existence. It also alleges that the city paid over $50,000 for the land, that it has a fair market value in excess of $100,000, and that the sale was actually a gift. The suit sought a decree holding the conveyance void as violative of Younglas, supra, and restraining the city from any further acts seeking to convey Kearsley Grove.
Defendants moved to dismiss the hill of complaint, claiming principally that the court did not have jurisdiction since the grantees of the deed (more particularly the ultimate grantee, the United States government) were not joined as parties. Attached to the motion was an affidavit attesting execution of 2 deeds, copies of which were also attached as exhibits.
One of these deeds, dated December 27, 1956, was from the city of Flint and purported to convey Kearsley Grove to the Committee of Sponsors for the Flint College and Cultural Development, Inc., for the sum of $35,000. It described the purpose of the transaction as being that of permitting the committee to convey to the United States government, with a reversion to the city of Flint in the event the United States government ceased for a period of 3 years to use same “for training of reserve components of the armed forces.” The second deed was dated the same day and purported to run from the Committee of Sponsors to the United States of America for the purposes and on the conditions just described. Both deeds showed the recording stamps of the Genesee county register of deeds of December 28, 1956.
¥e have examined with care plaintiff’s answer to the motion to dismiss and can only conclude that in effect it admits the authenticity of these 2 exhibits for purposes of the motion to dismiss although denying the legal effect claimed for them and, on the contrary, claiming that the deeds are null and void on constitutional grounds.
The chancellor who heard the motion denied it, holding the court had jurisdiction. Thereupon defendant city of Flint filed an application for leave to appeal which was granted by this Court September 4, 1957.
Prior to submission of the appeal to this Court, the attorney general of Michigan intervened on behalf of the people of the State (CL 1948, § 14.28 [Stat Ann 1952 Rev §3.181]), to advance the following argument:
“That the donation of land by the city of Flint in the Younglas Case and thereafter the sale of the same land to a corporation for a substantial consideration, which corporation in turn conveyed it to the United States, did not violate article 10, § 12, of the Constitution (1908), inasmuch as the United States government is not ‘any person, association, or corporation, public or private.’ ”
The attorney general’s brief disclosed concern pertaining to “the legality of a large number of transactions in which the various departments of the State, particularly the conservation department, under legislative authorization made numerous conveyances of State-owned property and gave long-term leases to the United States of America for no monetary consideration in furtherance of the national defense.” Subsequently appellant city of Flint, by supplemental brief, expressed agreement with the brief of the intervenor attorney general.
It is plain that what appellant and the intervenor now seek is the overruling of this Court’s holding in Younglas, supra, as it applies to the current fact situation. Although this question was not presented to the chancellor below (who obviously had no power to decide it), we feel the current appeal cannot properly be disposed of without passing upon the issue thus posed by the intervenor attorney general.
For purposes of ultimate disposition of defendants’ motion to dismiss, we accept plaintiff’s well-pleaded facts. Dodge v. Blood, 299 Mich 364; Society of Good Neighbors v. Mayor of Detroit, 324 Mich 22. Among these are: (1) that the city of Flint acquired the site in question for $50,000 in 1920; (2) that it has a present market value of over $100,000; (3) that the consideration for the deed is $35,000; and (4) that the difference represents a gift without consideration even though made for the purposes and on the conditions recited in the deeds.
The 2 constitutional provisions which Younglas, supra, held to bar the gift of this site to the United States were article 8, § 25, which reads, in part :
“No city or village shall have power * * * to loan its credit, nor to assess, levy or collect any tax or assessment for other than a public purpose,”
and article 10, § 12, which reads:
“The credit of the State shall not be granted to, nor in aid of any person, association or corporation, public or private.”
Four members of the Court, in an opinion by the Chief Justice, held the transfer without consideration to be void because not “for a city public purpose;” and, by implication, held the United States government to be a public corporation within the meaning of article 10, § 12, Const (1908).
Three members of the Court concurred in a view expressed in an opinion by Mr. Justice Black, holding the contrary on both issues. In holding that the proposed conveyance was for a public purpose within the meaning of article 8, § 25, the minority opinion relied upon language from 37 Am Jur, Municipal Corporations, § 120, pp 734, 735, previously- quoted by this Court in Hays v. City of Kalamazoo) 316 Mich 443, pp 453, 454 (169 ALR 1218):
“A public use changes with changing conditions of society, new appliances in the sciences, and other changes brought about by an increase in population and by new modes of transportation and communication. The courts as a rule have attempted no judicial definition of a public as distinguished from a private purpose, but have left each case to be determined by its own peculiar circumstances. * * * The modern trend of decision is to expand and liberally construe the term ‘public use’ in considering State and municipal activities sought to be brought within its meaning. The test of public use is not based upon the function or capacity in which or by which the use is furnished. The right of the public to receive and enjoy the benefit of the use determines whether the use is public or private.”
The views on this topic have been recently and carefully considered by this Court in the 2 opinions in Younglas. What has changed is not the reasoning of the members of the Court, but the composition of the Court itself. Younglas was decided too recently and by too close a margin to carry great weight under the doctrine of stare decisis. The majority of this Court, as presently constituted, feels that the modern and authoritative view on the constitutional questions presented is that of the minority opinion in Younglas which we hereby adopt and incorporate by reference.
The United States government and the city of Flint are not strang’ers to each other in the matter of national defense. We take judicial notice of the heightened mutuality of obligation in this field at the present point in history.
Briefly, we hold that the furnishing of a site for the training of the young men of Flint in reserve components of the armed forces of the United States is a lawful public purpose for tbe expenditure of funds of tbe city of Flint. Opinion of the Justices, 297 Mass 567 (8 NE2d 753); Hodgdon v. City of Haverhill, 193 Mass 406 (79 NE 830).
See, also, Stanley v. Schwalby, 162 US 255 (16 S Ct 754, 40 L ed 960); Vrooman v. City of St. Louis, 337 Mo 933 (88 SW2d 189); Hayes v. City of Kalamazoo, supra; Brozowski v. City of Detroit, 351 Mich 10.
We also hold that this transaction does not violate article 10, § 12, of the Michigan Constitution (1908). No use of credit is involved. City of Blytheville v. Parks, 221 Ark 734 (255 SW2d 962). Nor is the United States government customarily regarded as a “public corporation” in this constitutional sense. McNichols v. City and County of Denver, 101 Colo 316 (74 P2d 99).
See, also, Malone v. Peay, 159 Tenn 321 (17 SW2d 901); Vrooman v. City of St. Louis, supra; 15 Mc-Quillin, Municipal Corporations (3d ed), § 39.30. The contrary views expressed in the majority opinion in Younglas, supra, are overruled.
We note that the bill of complaint does not allege that the site is required under the master plan of the city of Flint (see CLS 1956, § 117.5, subd (e) [Stat Ann 1957 Cum Supp §5.2084, subd (e)]), although plaintiff’s brief before the court below concedes that there is such a master plan. See Brozowski v. City of Detroit, supra, 14.
Finally, since we cannot find from the well-pleaded allegations of the bill of complaint that plaintiff had any vested rights in the maintenance of this site in city ownership or in its operation as a park, no due process question is presented.
On the facts as stated and conceded in plaintiff’s pleadings and the legal conclusions contained in this opinion, there is a showing of legal title to this property in the United States government. The motion, to dismiss should be granted. Stanley v. Schwalby, supra. Cf., United States v. Lee, 106 US 196 (1 S Ct 240, 27 L ed 171).
Our decision in Peoples Savings Banlc v. Stoddard, 351 Mich 342, did not alter the long-standing rule that on motion to dismiss the Court may consider all well-pleaded facts in plaintiff’s bill of complaint plus any facts stipulated to or conceded by the pleadings of the parties for purposes of said motion. Our decision herein is founded upon the well-pleaded facts in plaintiff’s bill of complaint plus the deeds referred to, authenticity (though not validity) of which we view as conceded.
Reversed and remanded for entry of order as indicated in this opinion. No costs, public questions being involved.
Smith, Black, and Voelker, JJ., concurred with Edwards, J.
Decided May 14, 1956.—Reporter. | [
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Black, J.
We accept and decide defendants’ counter-stated question 3:
“Where an employee has drawn maximum disability -benefits during concurrent disabilities in his lifetime, and subsequently dies from causes directly related to one of the injuries producing' one such disability, does the Michigan workmen’s compensation act permit a new award of maximum benefits to Ms dependents based upon the fact of such death?”
From the very outset controlling section 12 of part 2 of the workmen’s compensation law has provided that the right to claim dependency benefits is derivative from, and accordingly is limited by, the employer’s liability to the employee. If prior to the employee’s death the employer has fully satisfied his statutory liability by due payment thereof, and that is the fact here, no dependency benefits arise in favor of a dependent survivor. The whole section, not just selected parts thereof, must be read in order that its stated purpose may be ascertained precisely (CL 1948, §412.12 [Stat Ann 1963 Cum gupp § 17.162]):
“Sec. 12. The death of the injured employee prior to the expiration of the period within which he would receive such weekly payments shall be deemed to end such disability, and all liability for the remainder of such payments which he would have received in case he had lived shall be terminated, but the employer shall thereupon be liable for the following death benefits in lieu of any further disability indemnity.
“If the injury so received by such employee was the proximate cause of his death, and such deceased employee leaves dependents, as hereinbefore specified, wholly or partially dependent on him for support, the death benefit shall be a sum sufficient, when added to the indemnity which shall be at the time of death have been paid or become payable under the provisions of this act to such deceased employee, to make the total compensation for the injury and death exclusive of medical, surgical and hospital services and medicines furnished as provided in sec tion 4 hereof, equal to the full amount which such dependents would have been entitled to receive under the provisions of section 5 hereof, in case the injury had resulted in immediate death, and such benefits shall be payable in the same manner as they would be payable under the provisions of section 5 had the injury resulted in immediate death.”
All facts requisite to understanding and application of counterstated question 3 appear in the opinion prepared by Judge Fitzgerald. (Tidey v. Riverside Foundry & Galvanizing Co. [1967], 7 Mich App 40). He ruled that the principles written in Wolanin v. Chrysler Corp. (1943), 304 Mich 164, apply to this case and concluded, correctly in our view (Tidey, supra, p 50):
“We hold, accordingly, that where two injuries arising out of and in the same line of work are separate but concurrent, if the employee is fully compensated for total and permanent disability during his lifetime for an amount in excess of the maximum statutory death benefit, regardless of which injury the award was based upon and irrespective of which injury resulted in death, dependents of such employee may recover only funeral and medical expenses of last illness.”
The judgment of the Court of Appeals is affirmed. No costs.
T. E. Brennan, C. J., and Dethmers, Kelly, and Adams, JJ., concurred with Black, J.
T. M. Kavanagh, J., concurred in the result.
T. G. Kavanagh, J., took no part in the decision of this case.
The amendments of 1943 (PA 1943, No 245) did not disturb this purposeful conclusion. Compare CL 1915, § 5442, with CL 1948, § 412.12 (Stat Ann 1963 Cum Supp § 17.162). The latter is quotecl post. | [
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T. G. Kavanagh, J.
John Johns refused to answer questions put to him by an Oakland County one man grand jury, claiming that Ms answers would tend to incriminate him. On motion of the Special Assistant Attorney General, the grand juror granted the defendant immunity under MCLA § 767.6 (Stat Ann 1954 Rev §28.946). Upon being shown the order granting the defendant immunity, defendant’s counsel asked the grand juror whether the immunity was intended to cover any crime or just those crimes within the scope of the grand jury. The grand juror responded that the immunity was the broadest privilege he could have; that it covered all crimes “inside or outside the scope of the grand jury, or any subject under the sun.” To this, defendant’s counsel responded that as stated the immunity order was too broad and was beyond the power of the grand juror to grant. After consultations between counsel and the defendant, the same questions were again put to the defendant and he refused to answer them, again claiming the Fifth Amendment.
On that day, August 8, 1967, the Assistant Attorney General obtained an order from another judge of that circuit. The order directed that on August 14,1967, Johns show cause before the issuing judge, why he should not be held in contempt of court for his refusal to answer the grand juror’s questions. The case was placed on the Oakland County Circuit Court civil docket and heard on August 15, 1967— the last day that the grand jury in question would sit.
At the hearing on August 15, 1967, Johns was found to be in contempt of the one man grand jury.
At the hearing the court heard arguments of defense counsel which are represented by the following excerpt:
“Mr. KoscinsTci [defendant’s counsel]: Well, the only thing I wanted to say, your Honor, please, was that this immunity is as broad as the privilege but the immunity is also limited by the statute. The grand juror cannot go beyond the statute, the limits of the inquiry as provided by statute, as was done here.
“The Court: I would agree with Counsel as to any subsequent action with respect to action taken after testimony was given. This reached that stage, however. I will find the defendant guilty of contempt.”
Following this colloquy the judge sentenced the defendant as follows:
“The Court finds the defendant guilty of contempt and will sentence him to one year in the county jail and a fine of a thousand dollars. The one year will be less two days he was serving in temporary custody.
“Today you may purge yourself before Judge Thorburn; if you so desire to do that I will review the sentence.”
The next day, August 16, 1967, he revised commitment and added a provision for admission to bail pending appeal. The defendant appealed to the Court of Appeals challenging both the validity of the proceedings and the subsequent sentence. In their answer, the people argued that the contempt proceedings below were criminal in nature and as such, the people claimed that the proceedings and sentence were valid.
The defendant responded that this was the first he had been advised that the proceedings were in any way criminal. In his reply brief he raised two additional issues — first, that the lack of adequate notice of the criminal nature of the proceedings denied him due process of law; and second, that if the proceedings were criminal in nature he was entitled to a jury trial.
The Court of Appeals ruled against the defendant on his initial issues and declined to rule on his reply issues on the ground that they had “not been properly preserved for appellate review.”
The defendant now contends that if the contempt proceedings were civil in nature, imprisonment could not extend beyond the life of the grand jury — in this case one day.
He alternatively argues that if the proceedings were criminal in nature he was denied all the Constitutional protections of criminal process including the prosecutor’s bearing the burden of proof and the right to a jury trial and further he faced a possible sentence of 365 days in jail.
As a consequence of this situation he maintains that without adequate notice from the prosecutor or court he had to determine, at his peril, the nature of the proceedings. He contends that his strategy, objections and the consequences of his refusal to answer (one day as opposed to 365 days imprisonment) depended upon his choice. He contends that since the nature of the proceedings are of fundamental importance and since his entire approach and its consequences are dependent on the type of proceedings, due process requires that he be informed of the nature of the charge with adequate time to prepare his defense.
In answer to this the prosecutor contends that the defendant faced nothing unusual. He argues:
“ * * * in Michigan, any contempt may be criminal if the sentences ‘were in the nature of punishment for offenses committed, not to enforce the performance of an act.’ Cross Co. v. UAW Local No. 155 (1966), 377 Mich 202, 210-211.” (Emphasis added.)
The prosecutor concludes that the context of these proceedings, the brief time remaining in the grand jury, and the sentence itself patently revealed to the defendant that the nature of the proceedings was criminal.
We agree with the prosecutor when he argues that the failure to answer questions of a grand juror when ordered to do so may be dealt with either criminally or civilly. (See for example In re Colacasides [1967], 379 Mich 69, People v. Joseph [1970], 384 Mich 24, and also the dissenting opinion of Chief Justice Warren in Brown v. United States [1959], 359 US 41 [79 S Ct 539, 3 L Ed 2d 609].)
We further agree that the sentence may be reflective of what was sought to be accomplished through the exercise of the contempt power. Shillitani v. United States (1966), 384 US 364 (86 S Ct 1531, 16 L Ed 2d 622).
However we hold that the time of sentencing was far too late in the criminal process and the context of these proceedings was far too ambiguous to adequately inform the defendant of the nature of the charge against him and afford the defendant that fundamental fairness of process guaranteed by both the Michigan and the United States Constitutions.
“We must conclude that plaintiff was convicted and deprived of his liberty without due process of law. The offense with which he was charged was not committed in the presence of the court. He is therefore entitled to he informed of its nature, and to be given time to prepare his defense, and secure the assistance of counsel.” (Emphasis added.) In re Smilay (1926), 235 Mich 151, 156.
In this case the defendant refused to answer the grand juror’s questions under a claim of right. He was offered immunity — the immunity of course, could only extend as far as the scope of the grand jury. By refusing to answer the grand juror’s questions after the proffered immunity was declined, the defendant did so either under a claim of right — that the question was beyond the scope of the inquiry— or by exhibiting his contempt of the grand jury and his willingness to accept the consequences. In either event his final decision to purge himself, or to go to jail for however long, or to continue to claim the Fifth Amendment was dependent upon his determination of the consequences of each course of action.
It should be apparent that the context of these proceedings made the nature of these proceedings anything but apparent. If the context of these proceedings are to be treated as having given notice of the criminal nature of the charge against the defendant, then it would do away with the requirement of adequate and clear notice required in all criminal proceedings.
As we said in People v. Joseph, supra, “ ‘Criminal contempt is a crime in the ordinary sense * * # Bloom v. Illinois (1968), 391 US 194 (88 S Ct 1444, 20 L Ed 2d 522). As such, if the prosecutor elected to proceed against the defendant for criminal contempt, due process required that the prosecutor conduct those proceedings in line with the standard of due process familiar to all criminal proceedings.
When, the hearing was instituted by a show cause order and placed on the civil docket, when the proceedings lacked any semblance of a criminal trial and when the sentence had elements of both civil and criminal contempt the defendant could have reasonably expected that he indeed was being held in civil contempt.
We therefore hold that under the procedure followed here, the defendant could not have been found guilty of criminal contempt and his sentence for such must be vacated.
Likewise since the opportunity for punishment for civil contempt expired with the grand jury, we hold the defendant must be discharged.
In order to obviate the confusion arising from such proceedings we hold that conviction for criminal contempt can be sustained only upon a record which shows compliance with the procedural safeguards established for the prosecution of any other crime of equal gravity.
Reversed. Defendant discharged.
T. M. Kavanagh, C. J., and Adams and T. E. Brennan, JJ., concurred with T. Gr. Kavanagh, J.
Black, J., concurred in the result.
Swainson and Williams, JJ., did not sit in this case.
“Q. What is your occupation, Mr. Johns?
“A. I decline to answer on the grounds that it may tend to incriminate me.
“Q. Do you know Eoy Clark?
“A. I decline to answer the question on the grounds it may tend to incriminate me.
“Q. Are you directly or indirectly employed by either of the Giacalones, Vito or Anthony?
“A. I decline to answer the questions on the grounds they may tend to incriminate me.
“Mr. Barry: May we have a recess, your Honor?
“The Court: The Court has a question or two. Do you know a
man by the name of Vito “Billy” Giacalone?
“A. I decline to answer the questions on the grounds that they may tend to incriminate me.
“Mr. Barry: Your Honor, may I suggest to the Court that in view of the situation that the Court direct and order the witness to answer these questions.
“The Court: Mr. John Johns, the Court does order you to answer these questions.”
The petition for order to show cause, reads in full as follows:
“Now comes Charles J. Porter, Special Assistant Attorney General, and moves the Court for An Order requiring JOHN JOHNS to show cause why he should not be adjudged guilty of contempt because of his refusal to answer questions submitted to him in the course of the Judicial Inquiry being conducted by the Honorable James S. Thorburn, Circuit Judge, in the matter of the Petition of Prank J. Kelley, Attorney General for the State of Michigan, Case No. 28539 as set out in the attached Affidavit.”
The Affidavit supporting the petition for order to show cause reads in full as follows:
“Charles J. Porter, Special Assistant Attorney General, being first duly sworn says:
“1. That JOHN JOHNS appeared before the Judicial Inquiry being conducted by the Honorable James S. Thorburn on the 8th day of August, 1967, at 11:00 A.M. o’clock, and in response to questions submitted to him refused to answer same on the ground that his answers thereto might incriminate him.
“2. That upon the Petition of Affiant, an Order was signed by the Honorable James S. Thorburn conferring immunity upon the said JOHN JOHNS. A copy of said Order is attached hereto as Exhibit
“3. That having served a copy of the Motion and Order Granting Immunity, and having been asked certain questions as set out in the attached transcript, and having been ordered to answer said questions by the Honorable James S. Thorburn, JOHN JOHNS did refuse to answer said questions on the ground that his answers thereto might tend to incriminate him.”
It would appear in this case that the sentencing judge wanted it both ways. His “you purge — I’ll review” provision coupled with the sentence extending well beyond the grand jury had the best of both forms of eontempt punishment. So even the sentence is ambiguous in this case.
“Defendants in eontempt proceedings should be given every opportunity to exonerate themselves.” In re White (1950), 327 Mich 316.
The United States Supreme Court has required the Congress of the United States to clearly set forth the subject matter of a congressional investigation. They held that fundamental fairness required such specificity so that witnesses would not be at their peril in determining the pertinency of proffered committee questions.
In asserting the importance of individual freedoms and procedural fairness, the United States Supreme Court stated in Watkins v. United States (1957), 354 US 178 (77 S Ct 1173, 1 L Ed 2d 1273 at 215, 216):
“It is only those investigations that are conducted by use of compulsory process that give rise to a need to protect the rights of individuals against illegal encroachment. That protection can be read ily achieved through procedures which prevent the separation of power from responsibility and which provide the constitutional requisites of fairness for witnesses. * * * That is a small price to pay if it serves to uphold the principles of limited, constitutional government without constricting the power of the Congress to inform itself.”
We are not dealing with direct contempts committed in the view and presence of the court which may he dealt with summarily. | [
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T. M. Kavanagh, J.
Claimants in this cause were employed by the Great Lakes Steel Corporation. On July 15, 1959, claimants, among others, went on strike because of a labor dispute at Great Lakes Steel. The strike lasted from July 15 to November 9,1959.
Subsequent to the commencement of the strike, claimants obtained interim employment with Ford Motor Company, Chrysler Corporation, and other employers. From this employment claimants were laid off before the strike at Great Lakes Steel had ended. The duration of their employment varied from a few days to several weeks. They seek benefits for the period of unemployment between the time they were laid off by the interim employers and the time they returned to work at Great Lakes Steel.
Claimants filed for unemployment compensation benefits with the Michigan employment security commission. Their claims were administratively denied. On appeal, the referee held claimants were disqualified for benefits from their previous employer, Great Lakes Steel Corporation, hut were eligible for benefits chargeable against the most recent employers where claimants were separated from interim employment under nondisqualifying circumstances.
The appeal board modified the decision of the referee, holding claimants were disqualified for benefits for the duration of their unemployment arising out of the labor dispute at Great Lakes Steel; further, that when they accepted bona fide employment with another employer and were laid off by that employer, claimants would qualify for compensation chargeable to the last interim employer.
The Ingham county circuit court reversed the decision of the appeal board. It affirmed the initial determination denying all benefits and holding claimants were disqualified under section 29(1)(b) of the employment security act, since Great Lakes Steel was their last employer.
The Court of Appeals, relying upon the statutory definition of employment contained in section 42 of the Michigan employment security act, reversed the judgment of the circuit court and reinstated the ruling of the appeal hoard holding the interim employers were claimants’ last employers since they were the employers for whom claimants had last rendered services and from whom they had received remuneration. 6 Mich App 656.
We believe the issue can be stated in two parts as follows:
(1) Were the claimants last employed by the interim employers within the definition of section 42 of the Michigan employment security act?
If the answer is in the affirmative—
(2) Were these claimants disqualified from receiving benefits under section 29(1) (b) of the act?
The pertinent statutory provisions read in part:
“Sec. 42. (1) Subject to the other provisions of this section ‘employment’ means service, including service in interstate commerce, performed for remuneration or under any contract of hire, written or oral, express or implied.” CLS 1961, § 421.42 (Stat Ann 1960 Rev § 17.545).
“Sec. 29. (1) An individual shall be disqualified for benefits: * * *
“(b)For any week with respect to which his total or partial unemployment is due to a stoppage of work existing because of a labor dispute in the establishment in which he is or was last employed.” CLS 1961, § 421.29 (Stat Ann 1960 Rev § 17.531).
“Sec. 48. An individual shall be deemed ‘unemployed’ with respect to any week during which he performs no services and with respect to which no remuneration is payable to him, or with respect to any week of less than full-time work if the remuneration payable to him is less than his weekly ben efit rate.” CLS 1961, § 421.48 (Stat Ann 1960 Rev § 17.552).
All employers appeal and argue that claimants were not “unemployed” within the following exception to the definition of that term as contained in section 48 of the act:
“Provided, that any loss of remuneration incurred by an individual during any week resulting from any cause other than the failure of Ms employing unit to furnish full-time, regular employment shall be included as remuneration earned for purposes of this section.” (Emphasis added.)
They argue that under this exception a loss of remuneration resulting from the fact that an employee is on strike is a loss resulting from a cause “other than the failure of Ms employing unit to furnish full-time, regular employment.” (Emphasis added.) They further contend that these claimants would have had full-time employment if they had not elected to go on strike, that therefore the loss of remuneration incurred as a result of being on strike must be included as remuneration earned under the language of section 48.
The Court of Appeals refused to accept this “novel construction of section 48” and said (p 665):
“We regard it as an error which stems from a misconstruction of the term ‘employing unit’ as that term is used in the proviso to section 48. The underlying assumption of the trial court was that, since an employer-employee relationship existed between claimants and Great Lakes throughout the period in question, Great Lakes was the ‘employing unit.’ With this we disagree.
“We have previously held that although an employer-employee relationship did so exist between Great Lakes and the claimants for certain purposes, the interim employer became the ‘establishment in which, he is or was last employed/ when employment with such employer had been obtained. In our view, the interim employer then also became the ‘employing unit’ within the meaning of section 48. To hold otherwise would render purposeless the disqualifying provisions of section 29(1) (b), specifically relating to striking workers, since they would already be precluded from receiving benefits under the provisions of section 48. We find, therefore, that each interim employer, and not Great Lakes, is the ‘employing unit’ referred to in the proviso to section 48.”
We agree with the Court of Appeals in its reasoning and conclusion that the interim employers, and not Great Lakes, were the employing units.
. We must now ascertain whether these claimants were “employees” of the “interim employing units” within the definition of “employment” contained in section 42(1) of the act.
Nordman v. Calhoun (1952), 332 Mich 460, provides the test. In Nordman this Court, citing as authority Acme Messenger Service Co. v. Unemployment Compensation Commission (1943), 306 Mich 704, said at page 466:
“In our opinion the statutory definition of ‘employment’ as provided in section 42(1) of the act is clear and unambiguous. It means service performed for. remuneration or under an oral or written contract for hire.”
Applying this test to the claimants, we conclude they are individuals who were not performing services for Great Lakes Steel for remuneration during the interim employment, but were as a matter of fact providing services for the interim employers from whom they received remuneration.
Since the claimants were employees of the interim employers, applying the language of section 29(1) (b) we conclude that Great Lakes Steel was not the last employer of claimants and, therefore, the disqualification provisions of section 29(1) (b) do not apply because Great Lakes Steel was not the establishment in which claimants were last employed.
We hold the claimants to be eligible for benefits because of layoffs by their interim employers.
The judgment of the Court of Appeals is affirmed. Claimants may tax costs.
Dethmers, C. J., and Kelly, Black, O’Hara, Adams, and T. E. Brennan, JJ., concurred.
See CL 1948 and CLS 1961, § 421.1 et seq., as amended.
CLS 1961, § 421.29 (Stat Ann 1960 Rev § 17.531).
CLS 1961, § 421.42 (Stat Ann 1960 Rev § 17.545). | [
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Adams, J.
I
On the evening of April 19, 1967, James Phares left his home in Warren, Michigan, to go to work. At about 7 o’clock tbe following morning when he returned, he found his wife, Judy Ann Phares, lying in a pool of blood on the kitchen floor. She was dead of multiple stab wounds.
An immediate investigation was begun by the police. Detective John Spence observed the body of Judy Ann Phares, noted she had been stabbed to death, and determined that the murder weapon was probably a large type knife. Arnold Skalski, the next door neighbor, was questioned at about 1 p.m. Since he was a deaf-mute, an interpreter first had to be located. He told the police that when he came home from working the morning of April 20, as he was turning into his driveway, he saw a white Plymouth or Dodge pull into the Phares’ driveway. The car had extensive damage to the right rear quarter panel. The time was approximately 3:15 a.m. A man got out of the car and went into the Phares’ home. Mr. Skalski had seen the man and the car at the Phares’ home the previous Sunday.
James Phares told the police that Lloyd Tisi had been at his home the previous Sunday and that he owned a white or cream-colored Plymouth ear with a damaged right rear quarter panel.
Detective Spence was instructed by his superior officer to arrest Lloyd Tisi for murder. He went to Tisi’s home in midafternoon with five other police officers. The police first questioned Tisi’s neighbors and determined that he owned a light colored Plymouth or Dodge automobile with extensive damage to the right rear side. Detective Spence then knocked on Tisi’s door. It was opened by a man who identified himself as being Lloyd Tisi. He admitted the officers. Detective Spence informed him of his constitutional rights and inquired if he understood his rights. Tisi said he did. He was asked what kind of an automobile he owned and if it had damage to the right rear side. He stated he owned a 1965 Plymouth with damage to the right rear. He was asked if anyone other than himself had used the car from 8 a.m. on Wednesday, the 19th, to 7 a.m. on Thursday, the 20th. When he answered that nobody had used the car, he was placed under arrest for murder.
While defendant was dressing to go to the police station, Detective Spence went outside. Mrs. Tisi arrived home in an automobile which she parked in the driveway. Upon being told by Detective Spence that her husband was under arrest, she ran into the house.
Detective Spence made a visual inspection of the car. He observed that it was damaged on the right rear side. He looked through the left-hand side of the windshield and saw an object on the car floor that appeared to him to be a knife handle. He opened the car door and found a knife enclosed in a sheath. Part of the handle was what he had seen. He removed the knife and sheath from under the seat.
Subsequent examination by the State Police Crime Laboratory established that the knife was stained with blood of the same type as Judy Ann Phares. The sheath contained fibers of material that matched those of the garment worn by her at the time of her death. The knife cuts upon her body were of the same shape as the blade of the knife.
At defendant’s preliminary examination, the knife was offered in evidence. Motion to suppress was made on the ground that there had been no probable cause for arrest and that the search was unreasonable. The motion was denied.
Prior to trial, the circuit court denied a motion to suppress the knife and sheath as evidence. At the trial, the motion was renewed. After a special record had been made of the proposed testimony, the court again ruled the knife and sheath admissible. The jury returned a verdict against defendant of guilty of second-degree murder. The Court of Appeals affirmed the decision of the trial court. (16 Mich App 316.) We granted leave to appeal. (382 Mich 782.)
II
Were the knife and sheath lawfully seized from defendant’s automobile at the time of his arrest?
III
Defendant asserts that the search of his automobile and the seizure of the knife and sheath were beyond the permissible scope of a search incident to an arrest. Preston v. United States (1964), 376 US 364 (84 S Ct 881, 11 L Ed 2d 777); Chimel v. California (1969), 395 US 752 (89 S Ct 2034, 23 L Ed 2d 685). Preston and Chimel are not in point. Justification for the seizure in this case is not to be tested by the reasonableness of its relationship to a prior valid arrest. People v. Kuntze (1963), 371 Mich 419.
In the recent case of Harris v. United States (1968), 390 US 234 (88 S Ct 992, 19 L Ed 2d 1067), the Court said (p 236):
“It has long been settled that objects falling in the plain view of an officer who has a right to be in the position to have that view are subject to seizure and may be introduced in evidence.”
In the case of People v. Kuntze, supra, this Court observed:
“Trooper Righter’s first observation of the deer leg protruding from underneath the front seat of defendants’ car was not a search as that term normally is defined in search and seizure cases.” (P 425.)
“# # # Trooper Righter was entitled to observe by ‘exercise of his own senses’ whatever thereby was disclosed.” (P427.)
The reasonableness of any search or seizure must be determined as of the time of the search or seizure. In the determination of reasonableness, consideration may be given to the information possessed by the officer. People v. Harper (1962), 365 Mich 494. The information possessed by Detective Spence has been detailed. His testimony under cross-exami nation at the preliminary examination was as follows :
“Q. And after looking through the right side, you looked through the windshield, is that correct?
“A. The right side of the windshield.
“Q. And at that point, you told us you saw the handle of an object sticking out?
“A. No, sir.
“Q. All right. What did you do then?
“A. I walked around the front of the car and looked in the left-hand side of the windshield and then saw the handle.
“Q. The left-hand side. How much of a handle could you see at that point ?
“A. Three, three and a half inches, maybe almost four.
“O. Did you observe anything else in the car at that time?
“A. Baby’s chair — one of these chairs you put infants in, magazines, chunk of suet.
“Q. Of what?
“A. Meat — small piece.
“Q. Was it razed?
“A. No, it was about the size of a dime. Various articles, scattered around the back seat.
“Q. Based on your recollection, officer, would you describe the part of the handle of this object that you saw as you were looking through the windshield?
“A. It was either chrome or high polish type on the knob with rings going around it.
“Q. Now, when you saw this handle, did you have some idea of what it was or might be?
“A. To me, it looked like a knife.
“Q. Uhm, uhm. You saw baby’s things in the car. Could it just as easily have been a child’s toy, a baby’s toy?
“A. No, I couldn’t think of any other articles that look like a handle, a knife handle, unless it would be a sword.”
Detective Spence was lawfully on the premises. His visual examination of the automobile was definitely called for in line with his duties as a police officer and led to the discovery of incriminating evidence. As a result of what he observed, under the plain view doctrine, his seizure of the knife and sheath was fully justified.
The trial court and the Court of Appeals are affirmed.
T. E. Brennan, C. J., and Dethmers, Black, and T. M. Kavanagh, JJ., concurred with Adams, J.
T. Gr. Kavanagh, J., concurred in result.
Kelly, J., did not sit in this case.
The Court of Appeals, 5th Circuit, has gone one step beyond the plain view doctrine as to the extent of permissible inspection of a motor vehicle by a police officer. In United States v. Johnson (1969), 413 F2d 1396, a three-judge panel in the Court of Appeals, 5th Circuit, decided that a Federal officer’s inspection of a truck parked in the defendant’s yard for the purpose of cheeking the serial num bers was not a search, but if a search, then it was a reasonable one for which no warrant was necessary. The case came before the full Court of Appeals sitting en banc which upheld the opinion issued by the panel of three judges which the court said had been correctly decided and that inspections of motor vehicles performed by police officers who were entitled to be on the property where the vehicles were located, which in no way damaged the vehicles, and were limited to determining the correct identification numbers thereof, were not searches within the meaning of the Fourth Amendment; alternatively, if such inspections constituted a Fourth Amendment search, then no search warrant was necessary because the inspections were reasonable and did not violate the right of the people to be secure in their persons, houses, papers or effects. The opinion of the court sitting en banc was delivered August 13, 1970, and is summarized in the Criminal Law Reporter, Vol 7, p 2468 et seq. Judge Godbold, in dissenting, criticized the majority decision as not resting upon the familiar power to search a vehicle incident to arrest of the occupants; nor does the majority opinion rest upon the warrantless search of a mobile instrumentality for contraband; neither does the majority opinion stand on the power to search for weapons and fruits of a crime where there is probable cause to do so as was the basis of the opinion of the Supreme Court in Chambers v. Maroney (1970), 399 US 42 (90 S Ct 1975, 26 L Ed 2d 419).
For a detailed discussion of the reasonableness of police action in a stop and frisk situation, see the opinion of Chief Justice Warren in Terry v. Ohio (1968), 392 US 1 (88 S Ct 1868, 20 L Ed 2d 889). | [
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T. M. Kavanagh, J.
This appeal presents as a threshold question an issue which conceptually, though not decisionally, equally divided our Court in Manie v. Matson Oldsmobile-Cadillac Company (1967), 378 Mich 650, vis., whether the “impact” rule in emotional distress has any continued vitality in the Michigan civil jurisprudence.
On July 16, 1963, about 10 p.m., defendant was traveling west on 15 Mile Road near plaintiffs’ farm in Macomb County. Defendant’s vehicle left the highway, traveled 63 feet in the air and 209 feet beyond the edge of the road and, in the process, sheared off a utility pole. A number of high voltage lines snapped, striking the electrical lines leading into plaintiffs’ house and caused a great electrical explosion resulting in considerable property damage.
Plaintiffs claimed, in addition to property damage, that Estelle Daley suffered traumatic neurosis, emotional disturbance and nervous upset, and that Timothy Daley suffered emotional disturbance and nervousness as a result of the explosion and the attendant circumstances.
The case was tried to a jury in Macomb County Circuit Court. At the conclusion of plaintiffs’ proofs, on motion of defendant, the trial judge directed a verdict against Timothy Daley in that no proper evidence of a personal injury to him had been presented, and against Estelle Daley in that she had failed to prove a causal relationship between the accident and her claimed personal injury. In the Leonard H. Daley action he directed the jury to disregard any proof of hospital expenses paid by plaintiff on behalf of Timothy and Estelle. The jury returned a judgment in favor of Leonard H. Daley for property damage in the amount of $2,015.20.
The Court of Appeals (13 Mich App 26) affirmed the trial court’s grant of a directed verdict upon the ground that Michigan law denies recovery for negligently caused emotional disturbance absent a showing of physical impact, citing Nelson v. Crawford (1899), 122 Mich 466; Ellsworth v. Massacar (1921), 215 Mich 511 ; Alexander v. Pacholek (1923), 222 Mich 157; Manie v. Matson Oldsmobile-Cadillac Company (1966), 2 Mich App 315.
Leave to appeal to this Court was granted. 381 Mich 805.
Recovery for mental disturbance caused by defendant’s negligence, but without accompanying physical injury or physical consequences or any independent basis for tort liability, has been generally denied with the notable exception of the sui generis cases involving telegraphic companies and negligent mishandling of corpses. See 23 ALR 361 ; 64 ALR2d 100, § 7; see, also, Restatement, Torts 2d, § 436A, p 171; 1 Cooley, Torts (4th ed), pp 95-102.
On the other hand the law had always permitted recovery in closely analogous situations notwithstanding the fact that plaintiff’s mental or emotional reactions were a necessary element in the chain of causation. See 38 Am Jur, Negligence, §§ 78-80, pp 737-739. Also, compensation for a purely mental component of damages where defendant negligently inflicts an immediate physical injury has always been awarded as “parasitic damages.” See 1 Street, Foundations of Legal Liability, 461; 1 Cooley, Torts (4th ed), p 107; 2 Harper & James, Torts, § 18.4, p 1032; Prosser, supra, at p 349. See, also, 22 Am Jur 2d, Damages, § 195 et seq., discussed infra.
Where, however, a mental disturbance results mediately in physical injury, the authorities divide. The early judicial response to this problem was to deny recovery based upon several grounds:
“The same objections against allowing recovery have been advanced: it is said that mental disturbance cannot be measured in terms of money, and so cannot serve in itself as a basis for the action; that its physical consequences are too remote, and so not ‘proximately caused;’ that there is a lack of precedent, and that a vast increase in litigation would follow.” Prosser, Torts (3d ed), § 55, p 346.
These objections, however, could not withstand close scrutiny and the courts began pointing out the logical invalidity of these reasons and repudiating the decisions resting upon such reasoning. The final bastion against allowing recovery is the requirement of some impact upon the person of the plaintiff. It is this doctrine and its continued vitality in our state which we must now consider.
In the landmark decision of Victorian Railways Commissioners v. Coultas (1888), 13 AC 222, recovery for a much-disputed damage to plaintiff’s nervous system caused by defendant’s oncoming train was denied upon the ground that:
“Damages arising from mere sudden terror unaccompanied by any actual physical injury, but occasioning a nervous or mental shock, cannot under such circumstances, their Lordships think, be considered a consequence which, in the ordinary course of things, would flow from the negligence of the gatekeeper. If it were held that they can, it appears to their Lordships that it would be extending the liability for negligence much beyond what that liability has hitherto been held to be. Not only in such a case as the present, hut in every case where an accident caused by negligence had given a person a serious nervous shock, there might be a claim for damages on account of mental injury. The difficulty which now often exists in case of alleged physical injuries of determining whether they were caused by the negligent act would be greatly increased, and a wide field opened for imaginary claims.”
As a further hedge against fraudulent or fancied claims and the feared flood of litigation, a large number of American courts in adopting the Victorian Railways Commissioners rule superimposed the additional requirement of a contemporaneous physical impact. The leading American authority of Mitchell v. Rochester R. Co. (1896), 151 NY 107 (45 NE 354), with “remorseless logic” stated the position as follows (pp 109, 110):
“Assuming that fright cannot form the basis of an action, it is obvious that no recovery can be had for injuries resulting therefrom. That the result may he nervous disease, blindness, insanity, or even a miscarriage, in no way changes the principle. These results merely show the degree of fright, or the extent of the damages. * * * Therefore the logical result of the respondent’s concession would seem to he, not only that no recovery can be had for mere fright, hut also that none can be had for injuries which are the direct consequences of it. * * * These considerations lead to the conclusion that no recovery can he had for injuries sustained by fright occasioned by the negligence of another, where there is no immediate personal injury.”
Persuaded by “the clear weight of authority” our Court in Nelson v. Crawford (1899), 122 Mich 466, and has consistently to date, cited with approval and followed the rule of Mitchell v. Rochester R. Co., supra.
The life of the law, however, has not been logic but experience. Bowing to the onslaught of exceptions and the growing irreconcilability between legal fact and decretal fiction, a rapidly increasing majority of courts have repudiated the “requirement of impact” and have regarded the physical consequences themselves or the circumstances of the accident as sufficient guarantee.
Pertinently, the New York Court of Appeals in Battalla v. State (1961), 10 NY2d 237 (176 NE2d 729), expressly overruled its Mitchell v. Rochester R. Co. decision, supra, observing at p 239:
“Before passing to a resume of the evolution of the doctrine in this state, it is well to note that it has been thoroughly repudiated by the English courts which initiated it, rejected by a majority of American jurisdictions, abandoned by many which originally adopted it, and diluted, through numerous exceptions, in the minority which retained it. Moreover, it is the opinion of the scholars that the right to bring an action should be enforced.”
Based upon close scrutiny of our precedential cases and the authority upon which they rested and cognizant of the changed circumstances relating to the factual and scientific information available, we conclude that the “impact” requirement of the common law should not have a continuing effect in Michigan and we therefore overrule the principle to the contrary contained in our previous cases.
We hold that where a definite and objective physical injury is produced as a result of emotional distress proximately caused by defendant’s negligent conduct, the plaintiff in a properly pleaded and proved action may recover in damages for such physical consequences to himself notwithstanding the absence of any physical impact upon plaintiff at the time of the mental shock.
The rule we adopt today is, of course, subject to familiar limitations.
Generally, defendant’s standard of conduct is measured by reactions to be expected of normal persons. Absent specific knowledge of plaintiff’s unusual sensitivity, there should be no recovery for hypersensitive mental disturbance where a normal individual would not be affected under the circumstances. See Prosser, supra, at p 352; see, also, 2 Harper & James, supra, at p 1035. As stated in comment c, Restatement, Torts 2d, § 313, at p 114:
“On the other hand, one who unintentionally but negligently subjects another to such an emotional distress does not take the risk of any exceptional physical sensitiveness to emotion which the other may have unless the circumstances known to the actor should apprise him of it. Thus, one who negligently drives an automobile through a city street in a manner likely merely to startle a pedestrian on a sidewalk, is not required to take into account the possibility that the latter may be so constituted that the slight mental disturbance will bring about an illness.”
Further, plaintiff has the burden of proof that the physical harm or illness is the natural result of the fright proximately caused by defendant’s conduct. In other words, men of ordinary experience and judgment must be able to conclude, after sufficient testimony has been given to enable them to form an intelligent opinion, that the physical harm complained of is a natural consequence of the alleged emotional disturbance which in turn is proximately caused by defendant’s conduct.
Turning to the instant case, we must determine whether to overrule our consistently held doctrine of Nelson v. Crawford, supra, and its legal progeny retroactively or prospectively.
From a review of our past decisions upon the subject (see Bricker v. Green [1946], 313 Mich 218; Sheppard v. Michigan National Bank [1957], 348 Mich 577; Park v. Employment Security Commission [1959] , 355 Mich 103; Parker v. Port Huron Hospital [1960] , 361 Mich 1; and more recently, Whetro v. Awkerman [1970], 383 Mich 235), and plaintiffs’ forthright approach that they are testing a doctrine made suspect in Manie v. Matson Oldsmobile-Cadillac Company, supra, and last considered in Alexander v. Pacholek, supra, plus the existence of foreign authority upon identical facts (see Bowman v. Williams [1933], 164 Md 397 [165 A 182]; Colla v. Mandella [1957], 1 Wis 2d 594 [85 NW2d 345, 64 ALR2d 95]), we are persuaded to hold that the new rule applies to all pending and future cases, as in Bricker v. Green (1946), 313 Mich 218.
In view of the above holding it becomes necessary to discuss another issue raised by plaintiffs— whether, considering the evidence in the light most favorable to plaintiffs, sufficient evidence was presented to create a jury question. Denying plaintiffs’ motion for a new trial which sought to set aside the directed verdict against plaintiffs Timothy and Estelle Daley, the trial court reasoned:
“There was no expert or medical testimony offered on behalf of the minor, Timothy. Extremely vague lay testimony was offered to the effect he was nervous. It was so vague and uncertain it did not, in the court’s opinion, reach the dignity of possessing any evidentiary value whatever. It afforded the jury nothing into which the jury „ could put its ‘damage-assessment teeth’. Vachon v. Todorovich [1959], 856 Mich 182.
“On behalf of Estelle Daley, Dr. Goldin, a psychiatrist, testified. Direct and cross examination were extensive. He testified clearly that she had been neurotic since childhood and the incident complained of did not cause her neurosis. Dr. Goldin indicated the incident could have broken down her ‘balances’ somewhat although she did not consult him until a year after the accident.
“The lay testimony was of the same type as was given in Timothy’s claim. It was vague and uncertain and indefinite.”
From an examination of the evidence presented on behalf of Timothy Daley, we believe that, even though the question is a close one, on favorable view, he presented facts from which under our new rule, as announced in this case, a jury could reasonably find or infer a causal relation between defendant’s alleged negligence and the injuries alleged. We conclude that Timothy Daley should be given an opportunity to prove his alleged cause of action, if he can do so, at a new trial.
Plaintiff Estelle Daley’s claim that she suffered physical consequences naturally arising from the fright proximately caused by defendant’s conduct is amply supported by the record. Her sudden loss of weight, her inability to perform ordinary household duties, her extreme nervousness and irritability, repeatedly testified to by plaintiffs, are facts from which a jury could find or infer a compensable physical injury.
The plaintiffs’ testimony is also supported by the medical expert witness, who diagnosed plaintiff Estelle Daley as “a chronic psychoneurotic * # # in partial remission,” and who attributed this state or condition to the explosion directly caused by defendant’s acts:
“Q. I want to ask one more question, from everything that you know about this case, doctor, do you feel there is a causal relationship between the explosion of July, 1963 and the symptoms that she has shown that you have reported?
“A. Yes, the trauma is the triggering point for her breaking the balance in her.
“Q. By trauma?
“A. Any trauma, may be emotional trauma or physical trauma, in this case having this explosive sound that she heard and the fears that were attendant with the explosive sounds.”
We hold, as we did in the virtually identical situation presented in Konieczka v. Mt. Clemens Metal Products Co. (1960), 360 Mich 500, that this record presents sufficient facts from which a jury could reasonably find, or infer therefrom, a causal relationship between the fright occasioned by defendant’s negligence and the injuries alleged in plaintiffs’ complaint. The trial court erred in taking plaintiff Estelle Daley’s case from the jury. McKinney v. Yelavich (1958), 352 Mich 687; Baker v. Alt (1965), 374 Mich 492. It follows that the trial court also erred in striking plaintiff Leonard H. Daley’s claim for medical expenses.
The order of the trial court granting directed verdicts against plaintiffs Estelle Daley and Timothy Daley and the Court of Appeals’ affirmance thereof are reversed and the causes remanded for new trials. The judgment in favor of plaintiff Leonard H. Daley for property damage and the Court of Appeals’ affirmance thereof are reversed and the cause remanded for a new trial to include the claimed medical expenses.
Costs shall abide the final result.
Dethmers, Black, Adams, and T. G. Kavanagh, JJ., concurred with T. M. Kavanagh, J.
We note and distinguish that Ellsworth v. Massacar (1921), 215 Mich 511, involves the recovery of damages for fear of injury to another or shoek or mental anguish at witnessing sueh injury. See, generally, Prosser, Torts (3d ed), §55, pp 352-354; 38 Am Jur 2d, Pright, Shock, and Mental Disturbance, §§ 36-39, pp 45-51; 29 ALR3d 1337, 1347-1349. It is cited as authority only as a fortiori reasoning grounded upon the issue herein discussed. We hasten to add, the instant ease is not the case in which this Court should undertake to speak out with finality on the legal issue of damages for emotional disturbance caused by injury to third parties and withhold decision until the proper case is presented. For an excellent analysis and discussion of this problem, see vol 11, For the Defense, No 4 (April 1970), pp 41-43.
The state of case law in this field is excellently summarized in 64 ALR2d 100, at p 103:
“The case law in the field here treated is in an almost unparalleled state of confusion and any attempt at a consistent exegesis of the authorities is likely to break down in embarrassed perplexity. Early attempts by the courts to deal with the questions were complicated by the lack of any adequate body of legal authorities as well as by the inadequacy of the factual or scientific information available.”
The most current judicial repudiation is expressed in Niederman v. Brodsky (1970), 436 Pa 401 (261 A2d 84).
Nelson v. Crawford (1899), 122 Mich 466; Ellsworth v. Massacar (1921), 215 Mich 511; Alexander v. Pacholek (1923), 222 Mich 157; Manie v. Matson Oldsmolile-Cadillac Company (1967). 378 Mich 650
The policy considerations relating to the feared “flood of litigation” are well presented and analyzed in 64 ALB2d 100, § 6, p 111.
The dubious distinction accorded Victorian Railways Commissioners v. Coultas, supra, “as the leading case for the proposition that there can be no recovery for the physical results of mental anguish without impact” (see 64 ALB2d 100, at p 135) is open to question especially in view of the statement made in that ease at p 226:
“They are of opinion that the first question, whether the damages are too remote, should have been answered in the affirmative, and on that ground, without saying that ‘impact’ is necessary, that the judgment should have been for the defendants.” (Emphasis supplied.)
For an interesting account of the nemesis which Victorian Railways Commissioners has proven to be, see Prosser, Torts (3d ed), p 350, n 81.
See, Selected Writings of Benjamin Cardozo, The Growth of the Law, at p 215:
“Judges march at times to pitiless conclusions under the prod of a remorseless logic which is supposed to leave them no alternative. They deplore the sacrificial rite. They perform it, none the less, with averted gaze, convinced as they plunge the knife that they obey the bidding of their office. The victim is offered up to the gods of jurisprudence on the altar of regularity. One who seeks examples may be referred to Dean Pound’s illuminating paper on ‘Mechanical Jurisprudence.’ I suspect that many of these sacrifices would have been discovered to be needless if a sounder analysis of the growth of law, a deeper and truer comprehension of its methods, had opened the priestly ears to the call of other voices. We should know, if thus informed, that magic words and incantations are as fatal to our science as they are to any other.”
Holmes, The Common Law, p 1 (1881).
The divergent approaches of the courts to find an exception to the Boohester B. Co. rule is excellently summarized by Prosser, Torts (3d ed), pp 350, 351:
“Apart from some quite untenable notions of causal connection, the theory seems to be that the ‘impact’ affords the desired guarantee that the mental disturbance is genuine. But the same courts have found ‘impact’ in minor contacts with the person which play no part in causing the real harm, and in themselves can have no importance whatever. ‘Impact’ has meant a slight blow, a trifling burn or electric shock, a trivial jolt or jar, a foTeible seating on the floor, dust in the eye, or the inhalation of smoke. The requirement has even been satisfied by a fall brought about by a faint after a collision, or the plaintiff’s own wrenching of her shoulder in reaction to the fright. ‘The magic formula “impact” is pronounced; the door opens to the full joy of a complete recovery.’ A Georgia eireus ease has reduced the whole matter to a complete absurdity by finding ‘impaet’ where the defendant’s horse ‘evacuated his bowels’ into the plaintiff’s lap.”
The end result of disingenuous deeision-making is amply illustrated by the disarray of eases annotated in 64 ALR2d 100, pp 137-143.
As noted by Professor Prosser, 19 of the 23 States which so hold on this issue have done so since 1900. See the collection of authorities cited in Restatement, Torts 2d, Appendix, § 436.
See 64 ALR2d 100, § 3, p 104, and authorities cited therein.
See Restatement, Torts 2d, §436(2), pp 456, 457. But see 2 Harper & James, Torts, § 18.4, p 1038, n 35.
See analysis and commentary on this section in 29 ALR3d 1337, 1347-1349.
An excellent compilation and analysis of authorities dealing with physical consequences and causative factors is collected in 64 ALR 2d 100, pp 127-134.
See, Smith, Relation of Emotions to Injury and Disease (1943), 30 Va L Rev 193; see, also, Smith & Solomon, Traumatic Neuroses in Court (1943), 30 Va L Rev 87. | [
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Per Curiam.
The Court of Appeals found a contract provision that arbitration as a "condition precedent” to the filing of a court action does not preclude the commencement of an action inconsistent with the arbitration award. We disagree and, pursuant to GCR 1963, 853.2(4), in lieu of leave to appeal, reverse the Court of Appeals.
The defendant City of Hart needed sewage treatment facilities. Plaintiff agreed to perform the necessary work. The contract contained this language:
"Both parties to this contract agree that as conditions precedent to the filing of an action in any court involving the amount or rate of payment or settlement for work performed by the contractor under these contract documents, and as a condition precedent to the liability of the owner for any amount other than contained in the estimates approved by the engineer shall be referred to arbitration for decision and award. The arbitrator or board of arbitration shall have authority only to pass upon questions involving compensation to the contractor for work actually performed but not allowed by the engineer, and its authority shall not extend to the interpretation of the plans and specifications or the determination of the qualities or materials or workmanship furnished, nor shall it have authority to set aside or modify the terms or requirements of the contract.”
A dispute arose about the payment for installing a clay lining during reconstruction of the sewage treatment facilities. Plaintiff claimed it was owed $85,103. The claim went to arbitration. An arbitrator rendered an award for the city and assessed $900 costs. Within a month, plaintiff sued in circuit court for the $85,103. Defendant won an accelerated judgment. The Court of Appeals reversed because the contract provided that arbitration is a "condition precedent” to the filing of a court action and did not provide for entry of a judgment on an award or specifically bar post-arbitration court action. 68 Mich App 265; 242 NW2d 547 (1976).
Plaintiff argues that while the contract required arbitration as a condition precedent to the filing of an action, it did not indicate that the arbitrator’s decision would be final. Therefore, the court suit was not barred by the arbitrator’s decision.
Although statutory arbitration is available in Michigan, Frolich v Walbridge-Aldinger Co, 236 Mich 425, 429; 210 NW 488 (1926), makes it clear that statutory arbitration and common-law arbitration coexist in this state. See Stadel v Granger Brothers, Inc, 4 Mich App 250; 144 NW2d 609 (1966); EE Tripp Excavating Contractor, Inc v Jackson County, 60 Mich App 221, 235; 230 NW2d 556 (1975), lv den 394 Mich 834 (1975). In either case, the parties’ intent regarding the finality of arbitration should be ascertained by the usual rules of interpretation and given effect. Acme Cut Stone Co v New Center Development Corp, 281 Mich 32, 49; 274 NW 700 (1937).
Here, both parties agreed to arbitrate, agreed to a specific arbitrator, and agreed to the site, procedure, and manner of arbitration. Nine hours of proofs were presented. Attorneys represented both parties at the hearing. Yet, the Court of Appeals reading of the "condition precedent” language would deprive that provision and the arbitration hearing conducted of any effect. The plaintiff’s contention that the provision as construed retains effect by bringing "the parties together in one room for a day” and by being a "valid tool for compromise” is unconvincing. Arbitration would be just a warmup, binding on no one. Such a result is unreasonable in light of the rather extensive arbitration hearing held.
A fair interpretation would be, and we so hold, that the parties intended the condition precedent language to preclude a court action regarding disputes within the scope of the arbitration clause independent of the award. Having agreed to arbitrate, plaintiffs remedy, if any, is limited to a challenge to the validity of the arbitration award; it may not contest ab initio in a court the merits of the contract dispute.
The Court of Appeals is reversed, and the judgment of the circuit court is reinstated. Costs to the defendant.
Kavanagh, C. J., and Williams, Levin, Coleman, Fitzgerald, and Blair Moody, Jr., JJ., concurred.
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Williams, J.
This case involves an automobile accident in which the negligence, if any, of plaintiff was arguably slight compared with that of defendant. Despite this small dereliction, however, the all-or-nothing doctrine of contributory negligence was applied below, and plaintiff was denied any recovery.
This unfortunate result raises once again, as in Vanderah v Olah, 387 Mich 643; 199 NW2d 449 (1972), the question of whether a more equitable approach to the problem of the negligent plaintiff and the negligent defendant might be in the apportionment of damages commensurate with the degree of fault. This concept underlies the doctrine of comparative negligence, and, in the interest of justice, it is the doctrine we adopt today.
We would hold therefore that the doctrine of contributory negligence is replaced in this jurisdiction by comparative negligence, and will be applied to all cases filed after the date of this opinion.
As to the case before us, we find that remand to the circuit court for retrial is necessary because of confusing and erroneous jury instructions on the question of proximate cause. Therefore, if the matter arises, comparative negligence shall be applied to this case at retrial.
I — Facts
An automobile accident at the intersection of Hill and Main Streets in Ann Arbor on August 16, 1971 precipitated this negligence action.
Plaintiff Christine Kirby, then a high-school student, was a passenger in a small MG automobile owned by her mother and driven by her friend Deborah Cooper. The MG proceeded south on Main and stopped under an overhead traffic light at the intersection of Hill and Main. The light was green at the time, and Cooper was signaling for a left turn.
A two-ton Buick driven by defendant Ellis Larson proceeded north on Main Street in the inside lane. Another vehicle, in which witness Robert Wright was a passenger, was traveling in the curbside lane in the same direction as Larson. Wright testified that his car stopped at the intersection because the traffic signal was turning amber.
Cooper and Kirby saw the Wright vehicle stop. They both saw defendant’s car about three or four lengths back from the intersection and anticipated that it, too, would stop. Cooper began to complete her left turn. Defendant’s vehicle, however, traveling at 25-30 miles per hour, went past Wright’s stopped car, and proceeded into the intersection at the same time as the Cooper vehicle was going through it.
The Buick struck the MG in the right rear, causing the car to spin around 180 degrees. Christine Kirby was flung over the hood of the car, landing on her face and suffering a back sprain, dislocated knees, severe facial lacerations and the loss of four front teeth with the possibility of loss of other teeth in the future.
Cooper testified she was halfway through the intersection when she was struck.
Defendant testified that he did not see the light change from green to any other color, and that he did not observe any movement on the part of the MG until he approached the intersection. He did say, however, that the light had turned yellow before he got to the white line at the intersection.
Although the police officer at the scene testified he could not identify skid marks from defendant’s vehicle, defendant testified he did point out the marks indicating he had tried to stop. He also said he told the police officers the accident was not his fault because he felt he could have made it through the yellow light. However, a summons was issued to defendant for violation of the caution signal, pursuant to Ann Arbor ordinances, § 10.26. No summons was issued to Cooper.
The court held that evidence of the traffic summons was inadmissible. It did, however, permit evidence of past traffic convictions to reach the jury, but after receiving this favorable ruling, defense counsel never presented testimony on this issue.
Defendant contended that plaintiff Kirby had urged Cooper to make the turn when she did. Plaintiff presented two apparently different versions of what actually happened. At trial, she insisted that she said nothing until after Cooper was already cranking the wheel to turn. Her testimony at the deposition, however, was that she told Cooper to turn before the turn had begun. She felt there was no contradiction, because she said she urged her friend to turn because it was a crowded intersection, they were blocking traffic and she saw defendant was not stopping.
Relevant to the issues before this Court, the jury was instructed that the verdict should be for the plaintiff if she was injured, if defendant was negligent, and if such negligence was the proximate cause of her injuries, unless plaintiff herself was negligent and such negligence proximately contributed to her injuries. They were instructed that if they found that defendant violated an Ann Arbor ordinance regulating vehicular traffic, such violation would be evidence of negligence. The jury was also instructed on the same standard of care should they find that plaintiff violated a traffic ordinance.
The jury was instructed to disregard anything relative to the issuance of a traffic summons or ticket, and was instructed as follows on the possibility of plaintiffs contributory negligence:
"I further instruct you the jury while any negligence by the operator of the plaintiff vehicle, Debra [sic] Cooper is not to be imputed to her passenger, the plaintiff, Christine Kirby even though a passenger can be guilty of negligence in her own right in the operation of the vehicle in which she is riding; and if you find that Debra [sic] Cooper acted solely or primarily on the basis of what the passenger Christine Kirby said and that passenger Christine Kirby was aware or should have been aware of the existing dangerous situation then if you find that Christine Kirby was personally and contributorily negligent and such negligence was a proximate cause of the injury and damages alleged by her and in that event Christine Kirby cannot recover from the defendant and your verdict therefore would be for the defendant.”
Following completion of the instructions, and prior to giving counsel an opportunity to state objections to the instructions, the jury was ordered to begin deliberations.
Plaintiffs counsel objected to that procedure, and to the injection of contributory negligence into the case, claiming that the negligence of the driver could not be imputed to a passenger. Further, he argued, his client could not be negligent on her own because she had no right of control of the automobile and she did not interfere with the driver in any way.
He also objected to the court’s instructing that the jury was to determine whether the negligence of the defendant was the proximate cause of plaintiffs injuries. The proper statement of law, he maintained, was that defendant’s negligence must be a proximate cause.
He also objected to the instruction ordering the jury not to consider the issuance of a traffic ticket, noting that defendant brought that out himself on direct.
All objections were denied.
After the jury began deliberating, they asked the court for additional help:
"The Court: This is a continuation of Chris Kirby against Larson. I have two requested questions from the jury. One, if the driver of plaintiff’s car was proximate cause of the accident, but defendant was also negligent, would jury be required to find for the defendant?
"I can’t answer that question. There are answers in the instructions I have given you. On the city ordinances and state law, I have given them twice so you have to do the best you can on the instructions that I have given you.”
The jury also asked for a definition of "preponderance, that is when one side greatly outweighs the other”.
The jury found for defendant. The Court of Appeals affirmed, in a brief memorandum opinion citing the "harmless error rule”, GCR 1963, 529.1. We granted leave to appeal December 23, 1974. 393 Mich 772 (1974).
II — Admissibility of Evidence of a Traffic Ticket
The trial court refused to admit, over objection by plaintiffs, evidence of and closing argument about issuance of a traffic summons by the officer on the scene to defendant for disregarding a caution signal. The trial judge also excluded evidence of the bench trial conviction on the ticket because it "would not be material to this case”. However, citing Sting v Davis, 384 Mich 608; 185 NW2d 360 (1971), the judge permitted cross-examination on other traffic convictions.
MCLA 257.731; MSA 9.2431 requires:
"No evidence of the conviction of any person for any violation of this chapter or of a local ordinance pertaining to the use of motor vehicles shall be admissible in any court in any civil action.”
GCR 1963, 607, however, provides:
"During the trial of civil actions the rules of evidence approved in Van Goosen v Barlum, 214 Mich 595 [183 NW 8 (1921)]; Zimmerman v Goldberg, 277 Mich 134 [268 NW 837 (1936)]; Socony Vacuum Oil Co v Marvin, 313 Mich 528 [21 NW2d 841 (1946)]; Cebulak v Lewis, 320 Mich 710 [32 NW2d 21 (1948)], and re-enacted by PA 1961, No. 236, § 600.2158, shall prevail, anything in section 731 of the Michigan vehicle code (CLS 1961, § 257.731) to the contrary notwithstanding.”
Zimmerman v Goldberg permitted defendant’s guilty plea to be used as substantive evidence in a subsequent negligence trial based on the same accident. Socony Vacuum Oil Co v Marvin and Cebulak v Lewis permitted evidence of payment of a fine for the same purpose. Thus, GCR 1963, 607 in effect contradicts MCLA 257.731; MSA 9.2431. Van Goosen v Barlum permitted interrogation concerning arrests and convictions on matters not arising from the facts of the instant negligence case.
Our Court’s rule-making power is constitutionally supreme in matters of practice and procedure, Const 1963, art 6, § 5. Thus, since admissibility of a traffic ticket is an evidentiary question, the court rule supersedes the statute. As suggested in 3 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 404, "Because no clear legislative policy reflecting considerations other than judicial dispatch of litigation can be identified, section 731 should be construed simply as a statutory rule of practice, validly superseded by Rule 607 to the extent applicable.”
However, following adoption of GCR 1963, 607, we decided Wheelock v Eyl, 393 Mich 74, 78-79; 223 NW2d 276 (1974) . In that case we reasoned that because civil and criminal cases involve different considerations and satisfy different policies, even if the same conduct is involved,
"a criminal conviction after trial, or plea, or payment of a fine is not admissible as substantive evidence of conduct at issue in a civil case arising out of the same occurrence.”
Wheelock, however, did not involve the question of whether issuance, as opposed to conviction, of a traffic ticket could be considered. Bolser v Davis, 62 Mich App 731, 733; 233 NW2d 845 (1975). That issue was considered in Ilins v Burns, 388 Mich 504; 201 NW2d 624 (1972).
In Ilins, defendant responded to her counsel’s questions and told the court no traffic ticket was issued. Plaintiff counsel’s motion for a mistrial was denied. Defense counsel asked the police officer the same question, but the officer did not answer. Neither party, under instructions from the court, mentioned the subject in argument, and the court cautioned the jury not to consider the matter in their deliberations.
Nevertheless, we found prejudicial error because "[t]he question of the issuance of a traffic ticket was indelibly registered on the minds of the jurors”. 388 Mich 511-512.
"In this case, the questioning of defendant and of the police officer with regard to the issuance or nonissuance of a ticket, of necessity, went to the judgment of the police officer and inescapably placed before the jury, by inference, the opinion of the police officer as to who was responsible for the accident. Once it was shown that defendant did not receive a ticket, the opinion of the police officer assessing her responsibility for the accident would be before the jury as clearly as if he had stated such opinion in so many words.” 388 Mich 510.
Thus, the rule today is that evidence of the issuance of a ticket may not be admitted. We do not, however, address ourselves to the conclusion in Dudek v Popp, 373 Mich 300, 308-309; 129 NW2d 393 (1964), where, because the police officer testified as an expert on the cause of the accident, traffic ticket evidence was admissible in order to indicate the basis of the officer’s expert opinion.
Since Wheelock and Ilins involved matters of substantive evidence, this leaves us with the question of whether an individual in a civil case may be impeached with evidence of other traffic convictions. GCR 1963, 607 permits this, by reference to Van Goosen v Barlum, 214 Mich 595, 599; 183 NW 8 (1921), in which we held it appropriate to attempt to impeach defendant’s credibility by use of previous driving convictions. See also MCLA 600.2158; MSA 27A.2158; Sting v Davis, 384 Mich 608; 185 NW2d 360 (1971).
In People v Renno, 392 Mich 45, 55; 219 NW2d 422 (1974), this Court held that municipal ordinance or misdemeanor convictions may not be used for impeachment purposes.
The proposed Michigan Rules of Evidence would provide that the credibility of a witness may not be impeached by evidence that he was convicted of a crime punishable by imprisonment for one year or less unless the crime involved dishonesty or false statement. MRE 609(a)(2). This rule would modify Renno, Sting, and GCR 1963, 607. It appears that before this case is likely to be retried this Court will act comprehensively regarding the proposed Michigan Rules of Evidence.
Ill — The Proximate Cause Instruction
The trial court gave varying instructions to the jury concerning the effect of violation of an Ann Arbor traffic ordinance.
Thus, at one point, the jury was instructed concerning violation of one ordinance:
"If you find that the defendant was negligent you must then decide that such negligence was the proximate cause of the injury to the plaintiff.” (Emphasis added.)
Concerning another ordinance, the instruction was:
"If you find that the defendant was negligent, you must then decide whether such negligence was the proximate cause of the injury to the plaintiff.
"If you find no negligence by the defendant or that any negligence was not a proximate cause of the injuries to the plaintiff, then you must find for the defendant.” (Emphasis added.)
Still another instruction was:
"If you find the defendant was negligent you must then decide whether such negligence was a proximate cause of the injury to the plaintiff.
"If you find no negligence by the defendant, or that any negligence was not the proximate cause of the injuries to the plaintiff, then you must find for the defendant.” (Emphasis added.)
A different instruction appeared in the charge on the ordinance concerning duties on turning.
"If you find that the operator of the plaintiff vehicle was negligent you must then decide whether such negligence was the sole proximate cause of the accident. If it was, and if you find no negligence by the defendant which was a proximate cause of the accident then your verdict would be for the defendant.” (Emphasis added.)
As for the effect of the violation of still another ordinance, the judge instructed:
"If you find that the defendant was negligent you must then decide whether such negligence was a proximate cause of the injury to the plaintiff. If you find no negligence by the defendant or that any negligence was not the proximate cause of the injuries to the plaintiff then you must find for the defendant.” (Emphasis added.)
The same type of mixture of instructing on "the proximate cause” and "a proximate cause” occurred in other parts of the court’s instructions. Thus, when explaining the role of contributory negligence, the jury was told such negligence must be ”a proximate cause”, and that defendant had the burden of proof to show that plaintiff’s negligence was "a proximate contributing cause”, but that the verdict would be for plaintiff if defendant’s negligence was "the proximate cause”.
The jury was instructed that their verdict would be for the defendant if defendant’s negligence was not "a proximate contributing cause” of the injuries. (Emphasis added in all above quotations.)
At the conclusion of the instructions, the court asked if the parties were satisfied, but then proceeded to have the jury begin deliberations before the attorneys made their objections. Plaintiffs counsel objected to that procedure, and, objected as well to the use of the term "the proximate cause” instead of ”a proximate cause”. Defense counsel had no objections. The plaintiffs protests to the jury deliberating before objections and to the proximate cause instruction were not directly responded to, but other objections were overruled.
After they began meeting, the jury appeared confused and requested further instructions. Clarification was requested "as to the ordinance of law pertaining to the driver’s negligence that would be plaintiffs car [sic] how that would affect the case; the city ordinance in regard to a left turn”.
In response, the judge repeated the instructions given previously concerning the ordinances, including the differing standards of "a” and "the” proximate cause. Plaintiffs counsel repeated his objections. Once again, the court did not directly respond to this point.
The jury requested further help. According to the judge, one of the questions was "if the driver of plaintiffs car was proximate cause of the accident, but defendant was also negligent, would jury be required to find for the defendant?”
The judge replied:
"I can’t answer that question. There are answers in the instructions I have given you. On the city ordinances and state law, I have given them twice so you have to do the best you can on the instructions that I have given you.”
Error was committed in this portion of the trial.
GCR 1963, 516.2 requires that counsel object to instructions "before the jury retires to consider the verdict”. The usual thrust of the rule is to require timely objections by counsel. However, the procedure is also designed to permit the judge, upon being presented with an error properly specified with supporting grounds, to correct or modify the questioned instructions before the jury retires. See discussion, 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), Rule 516, pp 564-567. Thus, each party’s right to have the theory of the case explained to the jury in an orderly manner, with equal weight to the theory of each party, is carried out. Id, p 562. "Only if such procedure is followed by court and counsel can the rights of all parties properly be protected and objections to erroneous jury instructions assuredly be saved for appellate review.” Hunt v Deming, 375 Mich 581, 585; 134 NW2d 662 (1965).
Thus, the judge in the case at bar erred when he permitted the jury to begin deliberations prior to hearing counsel’s objections. Moreover, this was not harmless error, since for whatever reason, the judge erred in neither responding to the objections nor correcting his charge. Therefore, while this is not a case where counsel was not given an opportunity to state objections on the record, Herndon v Woodmen of the World Life Insurance Society, 1 Mich App 141, 144; 134 NW2d 825 (1965); Wells v Prudential Insurance Co of America, 3 Mich App 220, 229; 142 NW2d 57 (1966), and the objections were clearly and well stated for the benefit, no doubt, of a reviewing court, they were not responded to by the trial court. Thus, we have no way of knowing whether they were in fact fairly considered by that court. Further, improper instructions pertaining to a vital issue in the case were in fact given.
It is clear that within the context of this case, the issue of proximate cause was crucial. The jury apparently thought so, and apparently was sufficiently confused or concerned about the concept that it asked for additional help twice.
Both the Standard Jury Instructions and our case law make it clear that the correct instruction is "a proximate cause”. We have specifically disapproved instructing that defendant’s negligence must be the proximate cause, because such a charge is tantamount to an instruction that plaintiff cannot recover unless defendant’s negligence is the sole proximate cause of an accident, an interpretation completely ignoring the possibility that there may be two proximate causes. Sedorchuk v Weeder, 311 Mich 6, 10-11; 18 NW2d 397 (1945); Barringer v Arnold, 358 Mich 594, 599-600; 101 NW2d 365 (1960).
Unquestionably, the instructions concerning the proximate cause were erroneous. It is equally true that the instructions concerning a proximate cause were correct. We, of course, review instructions as a whole in order to ascertain their adequacy. Shreve v Leavitt, 51 Mich App 235, 240-241; 214 NW2d 739 (1974).
We find that, given the facts in this case, the correct disposition was that set forth in Iwrey v Fowler, 367 Mich 311, 314-316; 116 NW2d 722 (1962):
"The effect of inconsistent or contradictory statements, relating to a material issue, in instructions to the jury by the trial judge has been considered in a number of decisions of this Court. In In re Bailey’s Estate, 186 Mich 677, 690 [153 NW 39 (1915)], the trial judge, as it was claimed, made conflicting statements to the jury in a will contest with reference to the burden of proof relating to undue influence. In reversing the case and granting a new trial, it was said:
" 'When conflicting charges are given, one of which is erroneous, it is to be presumed that the jury may have followed that which was erroneous. Grand Rapids & IR Co v Monroe, 47 Mich 152, 154 [1881]; Madill v Currie, 168 Mich 546, 560 [134 NW 1004 (1912)].’
" * * * In Pettersch v Grand Rapids Gas Light Co, 245 Mich 277, 281 (28 NCCA 44) [222 NW 123 (1928)], this Court quoted with approval the general rule on the subject of contradictory instructions as stated in 14 RCL, Instructions, § 45, pp 777, 778:
" ' "Where instructions give to the jury contradictory and conflicting rules for their guidance, which are unexplained, and following either of which would or might lead to different results, then the instructions are inherently defective and erroneous. And that is true though one of the instructions correctly states the law as applicable to the facts of the case. The reason for this is that where the instructions on a material point are contradictory, it is impossible for the jury to decide which should prevail, and it is equally impossible, after the verdict, to know that the jury was not influenced by that instruction which was erroneous, as the one or the other must necessarily be where the two are repugnant. A further reason is that conflicting and contradictory instructions in effect leave the jury without instructions to guide them with reference to the law arising upon the evidence in the cause.”
" 'See, also, Herzberg v Knight, 289 Mich 29 [286 NW 145 (1939)]; Socony Vacuum Oil Co v Marvin, 313 Mich 528 [21 NW2d 841 (1946)]. It cannot be said in the instant case that the jury did not follow the erroneous instructions. It must be held, in consequence, that the giving of such instructions constituted prejudicial error.’
"We think that the rule applied in the decisions above cited must be applied in the case at bar. It cannot be affirmatively said that the jury could not have been misled to the prejudice of plaintiffs by the language above quoted from the charge. It follows that the judgments entered must be reversed and new trials granted to the appellants.”
There is no question but that the issue of proximate cause was not only material, it was crucial and critical. The jury further demonstrated it was confused, but the apparently troublesome instructions were not changed. While it is true that the instructions might have been interpreted to mean a proximate cause, it is also equally true that the jury might have contemplated otherwise. In the presence of the unprovable we cannot surmise. We must reverse. See, e.g., Klenke v Russell, 9 Mich App 409, 415; 157 NW2d 428 (1968); Shreve v Leavitt, 51 Mich App 235, 240; 214 NW2d 739 (1974) ("At a number of * * * points in his instructions to the jury, the trial court * * * interchanged the words 'a’ and 'the’ when referring to the question of proximate cause”.). Therefore, a new trial must be ordered.
IV — Imputed Negligence — or Contributory Negligence?
Plaintiffs counsel consistently argued that his client was not contributorily negligent and that the court was improperly imputing the negligence of the driver of the car, i.e. Deborah Cooper, to Christine Kirby. In Bricker v Green, 313 Mich 218, 236; 21 NW2d 105 (1946), we overturned the rule of imputed negligence first announced in Lake Shore & MSR Co v Miller, 25 Mich 274 (1872):
"solely on the ground that the injured person was a voluntary, gratuitous passenger in an automobile, the driver of which was guilty of negligence which was a contributing proximate cause of an accident and injury to such passenger.
"Our holding herein should not be construed as excluding under appropriate circumstances the defense of contributory negligence on the part of the passenger, if relative to the cause of the accident the passenger failed to exercise such reasonable care and caution as he should have exercised under the circumstances.” 313 Mich 235.
Thus, while the driver’s contributory negligence may not be attributed to plaintiff passenger, the passenger may be contributorily negligent because of her own action or inaction. See Vanderah v Olah, 387 Mich 643; 199 NW2d 449 (1972) (passenger knowingly entrusted herself to a drunk driver). The question of plaintiffs contributory negligence is, of course, one of fact. Mitchell v DeVitt, 313 Mich 428, 431; 21 NW2d 111 (1946). Thus, the failure to warn of a danger of which passenger knows and of which he or she has every reason to believe driver is unaware may be contributory negligence. 2 Restatement, Torts 2d, § 315, p 123. This requires, however, that the driver be negli gent, that this negligence be a legally contributing cause of the harm, that the plaintiff-passenger be able to control the driver, and that exceptional circumstances exist which require the passenger to keep a lookout. The Restatement also notes that in ascertaining the duty to warn, "allowance must be made for the possibility that by interfering the plaintiff will increase rather than diminish the danger”. 2 Restatement, Torts 2d, § 495, p 557.
Plaintiff’s only action which could be construed as contributory negligence was her urging the driver to turn. See Notice of Affirmative Defense. If a failure to warn can be construed as negligence, is the same true of the converse? Can warning a driver be construed as negligence? The question, then, becomes in this case, did the fact of plaintiff’s telling the driver to turn amount to contributory negligence?
We agree with defendant that the issue so framed is not one of imputed negligence. There may not only be in specific circumstances a duty to warn, there may as well be instances where a warning may itself create danger. As we said in Sherman v Korff, 353 Mich 387, 395; 91 NW2d 485 (1958):
"[W]hat control or right of control has a passenger, even though he may be a co-owner, as the car speeds down the highway, driven by the other co-owner? Any attempted exercise of the right of control by wrestling the wheel from the driver would be foolhardy. Equally menacing to the driver’s' efficient operation of the machine are raucous reproaches, strident denunciations, or even persistent unctuous admonitions from the back seat. 'Generally,’ it was well put in a Federal case, 'it is the duty of the passenger to sit still and say nothing. It is his duty, because any other course is fraught with danger. Interference, by laying hold of an operating lever, or by exclamation, or even by direction or inquiry, is generally to be depreciated; in the long run, the greater safety lies in letting the driver alone.’ Southern Pacific Co v Wright, 248 F 261,264 [CA 9,1918].”
The case at bar is not the typical "back seat driver” situation where the passenger clearly interferes with the safe functioning of the automobile. It is a closer question than that, and originally, plaintiff might have been negligent if she had failed to warn the driver to complete her turn as she observed the other vehicle bearing down on them. Arguably, too, plaintiff’s importunities had no effect on the driver, and she did what she was going to do in the first place anyway. But no one asked her that.
In any event, we are not going to second-guess the jury on the question of contributory negligence, for this conclusion, while arguable, is supportable by the record. Further, since this cause is to be retried, it is possible that a better record will be developed in which the driver’s actions and motivations will be clarified.
V — Comparative Negligence as an Issue in This Case
This case raises still another issue, one of substantial import to our jurisprudence. Because we are remanding for retrial, and because the issue may well arise then, in the interest of judicial economy, we should consider it at this juncture.
The negligence of plaintiff in this case was apparently so slight, there was even a question whether she was indeed negligent at all. However, she having been adjudged negligent, the doctrine of contributory negligence was triggered, and plaintiff thereby recovered nothing, however deserving she might otherwise have been, and however greater the negligence of defendant might have been.
Thus, the facts of this case directly raise the issue to which we said, in Vanderah v Olah, 387 Mich 643, 654; 199 NW2d 449 (1972) (opinion of Williams, J.), we would return. Because this case constitutes a sufficient instance where the application of contributory negligence causes such substantial injustice, we must invoke the notice we gave in Vanderah "to remand a similar future case under a doctrine of comparative negligence” (italics removed).
It is true that plaintiff argued that she was not negligent in this case, and by so doing was foreclosed from arguing comparative negligence. However, under the doctrine of contributory negligence as it applied at the time of trial, she had no other choice. To announce she was contributorily negligent would have been tantamount to announcing she acknowledged she could not recover.
Clearly, a trial court was not the place to introduce the doctrine of comparative negligence to the jurisprudence of our state, nor was the Court of Appeals. This is a matter which is clearly within the competence of this Court only. Therefore,. we will not penalize plaintiff for not indulging in exercises in futility and for not possessing sufficient prescience to know we would consider applying the doctrine of comparative negligence to this case.
Plaintiff, further, although strictly denying any contributory negligence as defined in Vanderah, indicated that if there were any such negligence "Justice Williams also gave notice that he would invoke the doctrine of comparative negligence in cases of a like kind in the future”. (Plaintiffs’ Brief, p 34.)
Further, we have already had the benefit of extensive legal argument on the issue of comparative negligence in the case of Parsonson v Construction Equipment Co, 386 Mich 61, 79 et seq.; 191 NW2d 465 (1971). There we did not reach the issue because we found that plaintiffs theory of defendant’s negligence was at best conjecture. Such is not the case here, and we will therefore proceed with our consideration of the legal issue.
VI — Contributory Negligence in Michigan
The beginning of contributory negligence is generally attributed to Butterfield v Forrester, 11 East 60; 103 Eng Rep 926 (1809). In that case, defendant had put a pole across a highway and plaintiff, "riding violently” as he left a tavern in the early evening, was injured when his horse fell over the pole. He might not have been so injured had he been riding more carefully. As expressed by Lord Ellenborough, the rule was:
"One person being in fault will not dispense with another’s using ordinary care for himself. Two things must concur to support this action, an obstruction in the road by the fault of the defendant, and no want of ordinary care to avoid it on the part of the plaintiff.” 103 Eng Rep 927, quoted in Juenger, Brief for Negligence Law Section of the State Bar of Michigan in Support of Comparative Negligence as Amicus Curiae, Parsonson v Construction Equipment Co, 18 Wayne L Rev 3, 9 (1972).
Thus, the doctrine, although hotly defended and closely espoused is not "of great antiquity or dignity”. Sun Oil Co v Seamon, 349 Mich 387, 394, 397-398; 84 NW2d 840 (1957) (opinion of Talbot Smith, J.). No explanation was apparently offered in Butterfield, although justifications have been since applied. As Justice Talbot Smith so brilliantly expressed in his opinion in Seamon, perhaps the most widely-accepted rationale for the doctrine’s expression and correspondingly warm reception was the Industrial Revolution.
The first American case to adopt the doctrine is generally considered to be Smith v Smith, 19 Mass 621; 2 Pick 662 (1825), cited in 18 Wayne L Rev 9, with recovery denied to a plaintiff whose horse and wagon had hit a wood pile projecting into a public road. The concept appeared in our own state’s jurisprudence as early as 1851, with our Court saying, in denying recovery to the plaintiff whose animals grazed on the railroad right of way,
"It is a well settled principle of law, that where an injury, of which a plaintiff complains, has resulted from the fault or negligence of himself, or where it has resulted from the fault or negligence of both parties, without any intentional wrong on the part of the defendant, an action cannot be maintained.” Williams v Michigan CR Co, 2 Mich 259, 265 (1851),
citing no Michigan cases in support.
However, at least one early Michigan decision, although accepting the principle of contributory negligence as settled, did not do so uncritically. Thus, in Lake Shore & M S R Co v Miller, 25 Mich 274, 277 (1872), Chief Justice Christiancy criticized the rule’s application:
"This rule, it is true, often, and perhaps generally, fails to produce justice; and, upon abstract principles of right and wrong, may be said to be frequently unjust in its operation. Justice might seem to require that each should bear the loss in the proportion they had respectively contributed to the injury.”
However, we declined the invitation we ourselves raised to alter matters, because of what we considered to be the impossibility of ascertaining the proportion of injury attributable to each party, 25 Mich 277, and because we felt that since this rule was settled in our state, and in most of the others, we were not at liberty to revise it. 25 Mich 278.
Thus began a period where the question was disposed of by merely observing, "[t]he doctrine of comparative negligence does not obtain in this State.” Black v Bennett, 335 Mich 197, 201; 55 NW2d 795 (1952). See, e.g., Mynning v Detroit L & NR Co, 59 Mich 257, 260; 26 NW 514 (1886); Gold v Detroit United Railway, 223 Mich 209, 212; 193 NW 775 (1923); Grabowski v Seyler, 261 Mich 473, 475; 246 NW 189 (1933).
At the same time, however, we made it clear that there were substantial limitations on the doctrine. For example, contributory negligence is no defense to wanton, willful, or reckless conduct. Matta v Chicago & WR Co, 69 Mich 109, 113; 37 NW 54 (1888); Gibbard v Cursan, 225 Mich 311, 320; 196 NW 398 (1923). Plaintiffs negligence "is a legally contributory cause 'if, but only if, it is a substantial factor in bringing about his harm’ ”. Mack v Precast Industries Inc, 369 Mich 439, 450; 120 NW2d 225 (1963).
Plaintiff may recover, even if contributorily negligent, if the finder of fact holds that defendant had the last clear chance to avoid the accident. Zeni v Anderson, 397 Mich 117, 144; 243 NW2d 270 (1976). Further, plaintiff may invoke last clear chance without first admitting contributory negligence. 17 Michigan Law & Practice, Negligence, § 83 (Cumm Supp, p 197).
An unlawful act, in order to bar recovery, "must be one which the law recognizes as having a causal connection with the injury complained of. If the unlawful act was merely collateral to the cause of action sued upon, and did not proximately contribute to the injury, recovery is not barred.” Manning v Bishop of Marquette, 345 Mich 130, 135; 76 NW2d 75 (1956).
Plaintiff is no longer required to plead freedom from contributory negligence. It is now deemed to be a matter of affirmative defense to be pleaded and proved by defendant. Dearborn v Bacila, 353 Mich 99; 90 NW2d 863 (1958); GCR 1963, 111.7.
Being placed in a position of sudden emergency prevents plaintiff from being charged with contributory negligence even if the accident might have been avoided had he or she acted in a different manner. 17 Michigan Law & Practice, Negligence, § 78, pp 455-456.
Children under seven years old are incapable of contributory negligence as a matter of law. Baker v Alt, 374 Mich 492, 505; 132 NW2d 614 (1965).
Negligence subsequent to the injury is distinguished from contributory negligence, which is negligence which contributed proximately to cause the injury. If plaintiff fails to use due care to prevent or reduce damages subsequent to the injury complained of, he or she may not recover the enhanced damages. While the amount of damages may be reduced by such action or inaction, the action itself will not be barred. Thus, this doctrine of "avoidable consequences” is distinguished from contributory negligence and, in effect limits the latter doctrine to events which cause the original injury, even though plaintiffs action or inaction in aggravating the injury may result in damage out of all proportion to the original event. See Socony Vacuum Oil Co v Marvin, 313 Mich 528, 544; 21 NW2d 841 (1946); Delude v Raasakka, 42 Mich App 665, 672; 202 NW2d 508 (1972), rov’d on other grounds, 391 Mich 296; 215 NW2d 685 (1974).
In short, this survey indicates two things. First, while contributory negligence is a bar to some plaintiffs, it is not a bar to all plaintiffs, and it may well be that the pattern of excused and nonexcused contributory negligence may amount to substantial unfairness. Second, our courts have not hesitated to change and in some cases eliminate the application of the court-made doctrine of contributory negligence.
VII — Criticisms of Contributory Negligence
Alterations are not usually made in a doctrine which is serving well, and with which the bench, bar and public are satisfied. This is obviously not the case with contributory negligence, and attacks have been made, additionally, on the asserted justifications for the doctrine’s existence in the first place. In fact, short of our Court’s reluctance to say what they have been implying there seems to be no real reason to retain the concept.
In a well-reasoned and oft-quoted concurrence, Justice Talbot Smith, in a masterful analysis, rejected asserted justifications for the doctrine of contributory negligence, and noted that "the overwhelming movement of the courts is away from the old rule”. Sun Oil Co v Seamon, 349 Mich 387, 394, 404-405; 84 NW2d 840 (1957).
It is not necessary, therefore, to reiterate what has been done so well before. In summary, however, Justice Smith noted, as have leading commentators and other judges, that none of the traditional explanations manages to support the doctrine — neither the "clean hands” requirement, the prospect of promoting driver caution, or even proximate cause.
Basically, the commentators have agreed that the most plausible explanation for the origin of the doctrine was the period of individualism and rapid development known as the Industrial Revolution. The policy, it is said, was designed to protect infant industries "from oversympathetic juries who regarded these corporation defendants as intruders, as well as immensely rich”. Anno: The Doctrine of Comparative Negligence and its Relation to the Doctrine of Contributory Negligence, 32 ALR3d 463, 471. It has been argued, then, that if contributory negligence arose to protect rapidly growing industries during the Industrial Revolution, the "industrial complex is now well established, that most claims against individual defendants are covered by workmen’s compensation statutes where negligence is not at issue, and that, in any event, all industrial enterprises, new or old, are generally protected from burdensome liability by insurance.” 32 ALR3d 489-490. See also Prosser, Comparative Negligence, 51 Mich L Rev 465, 468 (1953).
Be that as it may, it is acknowledged that the United States is virtually the last stronghold of contributory negligence, 51 Mich L Rev 466. The most commonly stated reason for rejection of this not-so-hoary doctrine is that it simply is not fair.
As high an authority as the United States Supreme Court has said so, for in rejecting the suggestion that contributory negligence replace the admiralty rule of comparative negligence, the Court declared:
"The harsh rule of the common law under which contributory negligence wholly barred an injured person from recovery is completely incompatible with modern admiralty policy and practice. Exercising its traditional discretion, admiralty has developed and now follows its own fairer and more flexible rule which allows such consideration of contributory negligence in mitigation of damages as justice requires. Petitioner presents no persuasive arguments that admiralty should now adopt a discredited doctrine which automatically destroys all claims of injured persons who have contributed to their injuries in any degree, however slight.” Pope & Talbot, Inc v Hawn, 346 US 406, 408-409; 74 S Ct 202; 98 L Ed 143 (1953).
The California Supreme Court, in judicially adopting comparative negligence, noted "the doctrine [contributory negligence] is inequitable in its operation because it fails to distribute responsibility in proportion to fault.” Li v Yellow Cab Co of California, 13 Cal 3d 804, 810; 119 Cal Rptr 858; 532 P2d 1226, 1230 (1975).
The same indictment has been made in our own Court in Miller; in Seamon and in Vanderah.
"The list of its [contributory negligence] distinguished critics reads like a tort law hall of fame. This list includes Campbell, Fleming, Green, Harper and James, Keeton, Leflar, Malone, and Pound.” Juenger, supra, 18 Wayne L Rev 19.
Dean Prosser, the Reporter of the Restatement, which is still one of the last-gasp adherents to the doctrine, has himself written:
"The attack upon contributory negligence has been founded upon the obvious injustice of a rule which visits the entire loss caused by the fault of two parties on one of them alone, and that one the injured plaintiff, least able to bear it, and quite possibly much less at fault than the defendant who goes scot free. No one ever has succeeded in justifying that as a policy, and no one ever will.” Prosser, supra, 51 Mich L Rev 469.
Also, on the positive side it has been said:
"[C]omparative negligence achieves better risk distribution than the contributory negligence defense allows. It permits this without abandoning the advantages of the tort-litigation system. Comparative negligence is not pure plaintiffs law; rather, it permits a full implementation of the fault principle.” Schwartz, Comparative Negligence: Oiling the System, 11 Trial 58 (July/August, 1975).
VIII — Comparative Negligence in Operation
The most clear-cut response to the dilemma of contributory negligence has been to replace it with comparative negligence. Where contributory negligence bars all recovery where the plaintiff is negligent, the doctrine of comparative negligence operates to apportion damages according to the fault of each of the parties.
"By April of 1974, comparative negligence [had] * * * replaced contributory negligence as a complete defense in at least twenty-six states and Puerto Rico.” This has been achieved by statute and judicial decision. Schwartz, Comparative Negligence (Indianapolis: Allen Smith Co, 1974), § 1.1, p 3 (hereafter "Schwartz, Treatise”).
Even in states such as our own which have retained the concept of contributory negligence, statutory exceptions exist which result, in effect, in a parallel comparative negligence system.
The example was set by the Federal employers’ liability act, where plaintiff’s contributory negligence reduces the amount of his or her recovery in proportion to his or her negligence in actions by an employee of an interstate railroad carrier against his employer. 45 USC 53. The concept also appears in the Federal Jones Act referring to seafarers who suffer injury in the course of employment, 46 USC 688, in the merchant marine act, and the death on the high seas act, 46 USC 766.
Thus, in our own state, a form of comparative negligence exists in employees’ actions against railroad employers. Where the negligence of the railroad worker is less than that of the railroad, the employee’s contributory negligence will not bar a recovery. MCLA 419.52; MSA 17.462.
The concept of avoidable consequences operates as well as a type of comparative negligence, for although it takes effect after the injury has already occurred, it requires the jury to first make a judgment that plaintiff was negligent and that this negligence added to his or her damage. Then the jury ascertains the proportion to which plaintiff’s fault contributed to the injury, and reduces the recovery concomitantly. In this way, the same type of judgment and machinery which operate under comparative negligence already operate in our state to a limited extent.
IX — May the Judiciary Initiate Comparative Negligence?
For years, the response to the question of whether the courts could substitute comparative negligence for contributory negligence was negative, as courts, including our own, declared that while contributory negligence was unjust, for one reason or another, the task of abrogating the doctrine should be left to the Legislature.
Such reluctance has not been characteristic of our Court when confronted with other judge-made tort doctrines which have outlived their useful ness. Thus, our Court has heretofore believed that rules created by the court could be altered by the court. For example, we abrogated the defense of assumption of risk, Felgner v Anderson, 375 Mich 23; 133 NW2d 136 (1965), repudiated the doctrine of imputed negligence, Bricker v Green, 313 Mich 218; 21 NW2d 105 (1946), eliminated the privity requirement in actions for breach of an implied warranty, Spence v Three Rivers Builders & Masonry Supply, Inc, 353 Mich 120; 90 NW2d 873 (1958), overruled the common-law disability prohibiting the wife from suing for the loss of her husband’s consortium, Montgomery v Stephan, 359 Mich 33; 101 NW2d 227 (1960), overruled the common law disallowance of recovery for negligently inflicted prenatal injury, Womack v Buchhorn, 384 Mich 718, 724-725; 187 NW2d 218 (1971); and even eliminated charitable immunity from negligence, Parker v Port Huron Hospital, 361 Mich 1; 105 NW2d 1 (1960).
This Court certainly has recognized our "corrective responsibility” to "refuse to blindly imitate * * * [the] dead past”. Dearborn v Bacila, 353 Mich 99, 113; 90 NW2d 863 (1958). In Bacila along with recognizing stare decisis Justice Black noted:
"Mr. Justice Holmes, commenting on 'The Path of the Law,’ leads the thought-way here. He said (Collected Legal Papers, Oliver Wendell Holmes, p 187):
" 'It is revolting to have no better reason for a rule of law than that so it was laid down in the time of Henry IV. It is still more revolting if the grounds upon which it was laid down have vanished long since, and the rule simply persists from blind imitation of the past.’
"'Stare decisis is not, like the rule of res judicata, a universal, inexorable command. "The rule of stare decisis, though one tending to consistency and uniformity of decision, is not inflexible. Whether it shall be followed or departed from is a question entirely within the discretion of the court, which is again called upon to consider a question once decided.” Hertz v Woodman, 218 US 205, 212; 30 S Ct 621; 54 L Ed 1001 [1910], * * * The court bows to the lessons of experience and the force of better reasoning, recognizing that the process of trial and error, so fruitful in the physical sciences, is appropriate also in the judicial function.’ (Mr. Justice Brandeis in Burnet v Coronado Oil & Gas Co, 285 US 393, 405-408 [52 S Ct 443, 76 L Ed 815 (1932)].)” 353 Mich 112, 113-114.
In another opinion, the dilemma of stare decisis versus the need for change was well stated by Justice Talbot Smith:
"Thus again we reach the conflict that divides us, for the law, as Dean Pound put it, must be stable, and yet it cannot stand still. Were we to rule upon precedent alone, were stability the only reason for our being, we would have no trouble with this case.
"The precedents of the older cases are not valid precedents. * * * They are out of harmony with the conditions of modern society. They do violence to our convictions and our principles. We reject their applicability. The reasons for the old rule no longer obtaining, the rule falls with it.” 359 Mich 37, 49.
While we heretofore have not taken the bit in our teeth and totally abolished contributory negligence, we have chipped away at it piece by piece by special exceptions to the rule of contributory negligence, such as wanton and wilful conduct, last clear chance, sudden emergency, children under seven, etc., vide supra. But it is perfectly clear that we have the power and the precedent to change an established rule which has, as has the rule of contributory negligence, outgrown its usefulness. We have even done it where the rule of law was legislatively, not judicially, created. E.g., Manistee Bank & Trust Co v McGowan, 394 Mich 655; 232 NW2d 636 (1975), in which we found that the guest passenger statute, after 40 years, was no longer experimental and could no longer be justified in terms of any stated legislative policy. (It should be emphasized that the guest act was a creature of the Legislature, not of the judiciary.)
It is said that if the arguments against contributory negligence were so persuasive, the Legislature would have changed things long ago. But the Legislature has not acted. Therefore, in the absence of such a mandate, the argument is that we should not act either.
As a practical matter, there are a variety of reasons why bills or ideas do or do not become law and it is not the role of the courts to guess what legislative silence means. As Justice Voelker wrote when confronted with the argument that:
"legislative silence and inaction for 37 years * * * amounts to a tacit recognition of its [a doctrine’s] soundness by which we must irrevocably be bound. Now this beguiling doctrine of legislative assent by silence possesses a certain undeniable logic and charm. Nor are we oblivious to the flattery implicit therein; double flattery, in fact; flattery both to the profound learning and wisdom of the particular supreme court which has spoken, and flattery to a presumably alert and eagerly responsive State legislature. One pictures the legislators of our various States periodically clamoring and elbowing each other in their zeal to get at the pearls of wisdom embalmed in the latest decisions and advance sheets of their respective supreme courts — and thenceforth indicating their unbounded approval by a vast and permanent silence.
"Yet there are several dark shadows in this picture. For one, it suggests a legislative passion for reading and heeding the decisions of our supreme courts which we suspect may be scarcely borne out by the facts. For another, pushed too far such a doctrine suggests the interesting proposition that it is the legislatures which have now become the ultimate courts of last resort in our various States; that if they delay long enough to correct our errors those errors thus become both respectable and immutably frozen; and, finally, the larger and more dismal corollary that if enough people persist long enough in ignoring an injustice it thereby becomes just. We reject as both un-Christian and legally unsound the hopeless doctrine that this Court is shackled and helpless to redeem itself from its own original sin, however or by whomever long condoned.
"Courts throughout the land have long split over this doctrine of legislative acquiescence by silence. The usual arguments for recognizing it are that it gives stability and sureness to the law; that 'rights’ thus acquired can thus only be disturbed at regular and predictable intervals by but one branch of the government, the legislative; and, finally, that to disregard the doctrine amounts to judicial legislating. Now we recognize that a court should not lightly overrule an interpretation of a statute that has been the law for 37 years, but we also see little justice or utility in continuing to give stability or sureness to an unfortunate rule of law.” Van Dorpel v Haven-Busch Co, 350 Mich 135, 145-146; 85 NW2d 97 (1957).
The real problem, we think, confronting the court which desires to undo the sins of the past, is that, unlike reversing a statute or an ordinary common-law doctrine, the elimination of contributory negligence requires a substitution. It is not enough to say that we are no longer to be ruled by the not-so-ancient doctrine of contributory negligence. We must then opt for a form of comparative negligence to take its place.
But is that so much more difficult than the imposition of a brand new doctrine upon the law when there was nothing there before it? For is that not what happened when the courts created contributory negligence in the first place?
The task is difficult, but it has not been shirked by others before us, and we will not decline this responsibility now. For while it is true that most courts have not chosen to make the change, within recent years others have done so. We have to guide us not only the experience of those states which have adopted comparative negligence by statute, but those which have done so by way of judicial decision. There is, further, the Federal experience in admiralty and under FELA for whatever additional reference may be necessary.
X — Action by Other Courts
We turn to the task before us with the understanding that we are dealing with a torts problem, and courts are no strangers to the reform of tort law of judicial origin. This makes the question of judicial competence to make serious choice perhaps of somewhat less concern than an exploration of alternatives in other areas. The courts’ day-today confrontation with the problem of torts and the resulting "interpretative continuity” probably provide the courts with as comprehensive an insight into the question of tort reform as the committee system and public hearings provide the Legislature. Keeton, Creative Continuity in the Law of Torts, 75 Harv L Rev 463 (1962).
The judiciary has as well the ability to fill in details in this area in subsequent cases. Comparative negligence seems ideally suited to such judicial clarification, for the statutes are at best rather sketchy "and leave the very same ancillary questions [which would be ordinarily left to judicial decision] likewise to the courts for future solution”. Fleming, The Supreme Court of California 1974-1975, Foreword: Comparative Negligence at Last — By Judicial Choice, 64 Cal L Rev 239, 281 (1976).
Judicial rulings may also give affected parties an opportunity to prepare themselves for the change of law, because it is possible to give a ruling prospective operation only, Great NR Co v Sunburst Oil & Refining Co, 287 US 358, 364; 53 S Ct 145; 77 L Ed 360 (1932), with the exception perhaps of the successful appellants.
Additionally, the court may, just as the Legislature does, look to statutes in other jurisdictions for guidance, Moyses v Spartan Asphalt Paving Co, 383 Mich 314, 334; 174 NW2d 797, 806 (1970) (contribution among joint tortfeasors), to commentators, Zeni v Anderson, 397 Mich 117; 243 NW2d 270 (1976) (Restatement position on last clear chance), and to what other courts have done.
Three state courts of last resort, in Florida, California and Alaska, and the United States Supreme Court, have recently adopted comparative negligence systems, the states substituting "pure” comparative negligence for the contributory negligence law, and the United States Supreme Court changing the admiralty rule of divided damages to liability proportional to fault.
On July 10, 1973, the Supreme Court of Florida held in Hoffman v Jones, 280 So 2d 431; 78 ALR3d 321 (Fla, 1973),
"that a plaintiff in an action based on negligence will no longer be denied any recovery because of his contributory negligence.
"A plaintiff is barred from recovering damages for loss or injury caused by the negligence of another only when the plaintiffs negligence is the sole legal cause of the damage, or the negligence of the plaintiff and some person or persons other than the defendant or defendants was the sole legal cause of the damage.” 280 So 2d 438.
The Court acknowledged that, following a gubernatorial veto of a comparative negligence statute 30 years before, the Legislature had "done little to discard the harsh and inequitable contributory negligence rule, perhaps because it considers the problem to be a judicial one”. 280 So 2d 438.
The Court felt it should act because,
"[s]ince we definitely consider the problem to be a judicial one, we feel the time has come for this Court to join what seems to be a trend toward almost universal adoption of comparative negligence. A primary function of a court is to see that legal conflicts are equitably resolved. In the field of tort law, the most equitable result that can ever be reached by a court is equation of liability with fault. Comparative negligence does this more completely than contributory negligence, and we would be shirking our duty if we did not adopt the better doctrine.” 280 So 2d 438.
"Whatever may have been the historical justification for it, today it is almost universally regarded as unjust and inequitable to rest an entire accidental loss on one of the parties whose negligent conduct combined with the negligence of the other party to produce the loss.” 280 So 2d 436.
The Court found it had authority to act to abolish contributory negligence because contributory negligence was a judicial creation.
Even without authority based on the judicial origin of the doctrine, the Court found an obligation to make the change because, after an analysis similar to that we have undergone, it found no compelling justification for the doctrine.
The rule adopted was one of "pure” comparative negligence.
"If plaintiff and defendant are both at fault, the former may recover, but the amount of his recovery may be only such proportion of the entire damages plaintiff sustained as the defendant’s negligence bears to the combined negligence of both the plaintiff and the defendant. For example, where it is found that the plaintiff’s negligence is at least equal to that of the defendant, the amount awarded to the plaintiff should be reduced by one-half from what it otherwise would have been.” 280 So 2d 438.
California acted next, and in 1975 in Li v Yellow Cab Co of California, 13 Cal 3d 804; 119 Cal Rptr 858; 532 P2d 1226 (1975), the Supreme Court of that state abrogated the doctrine of contributory negligence and adopted comparative negligence.
To the California Court, the superiority of comparative negligence was so clear that,
"It is unnecessary for us to catalogue the enormous amount of critical comment that has been directed over the years against the 'all-or-nothing’ approach of the doctrine of contributory negligence. The essence of that criticism has been constant and clear: the doctrine is inequitable in its operation because it fails to distribute responsibility in proportion to fault. Against this have been raised several arguments in justification, but none have proved even remotely adequate to the task.” 13 Cal 3d 810-811; 532 P2d 1230-1231.
After reviewing some practical and administrative objections to adopting comparative negligence, the Court found these did not "[diminish] our conviction that the time for a revision of the means for dealing with contributory fault in this state is long past due and that it lies within the province of this court to initiate the needed change by our decision in this case”. 13 Cal 3d 826; 532 P2d 1241.
The Court then proceeded to adopt the "pure” form of comparative negligence, rejecting the "50 percent” system and its variants, as merely applying "the lottery aspect of the contributory negligence rule to a different ground”. 13 Cal 3d 827; 532 P2d 1242.
The decision noted that the Wisconsin 50 percent system led to numerous appeals on the narrow issue of whether plaintiff’s negligence was equal to defendant’s, and that, because of the "development of arcane classifications of negligence according to quality and category”, four members of the Wisconsin Supreme Court indicated a willingness to adopt the pure form if the Legislature failed to act "with reasonable dispatch”. The majority, however, rejected the invitation, because they concluded that the Legislature by writing a statute had occupied the field. 13 Cal 3d 828; 532 P2d 1243, citing Vincent v Pabst Brewing Co, 47 Wis 2d 120; 177 NW2d 513 (1970).
The California court pronounced the "pure” rule of comparative negligence as follows:
"[T]he contributory negligence of the person injured in person or property shall not bar recovery, but the damages awarded shall be diminished in proportion to the amount of negligence attributable to the person recovering.” 13 Cal 3d 829; 532 P2d 1243.
The Alaska Supreme Court also adopted pure comparative negligence in Kaatz v State, 540 P2d 1037 (Alas, 1975). The rationale was simply stated:
"We are convinced that the pure system is the one which is the simplest to administer and which is best calculated to bring about substantial justice in negligence cases. It is the system most favored by modern jurists and commentators.” 540 P2d 1049.
Still another judicial vote on the side of pure comparative negligence was cast by the United States Supreme Court, when it replaced the admiralty rule of divided damages with a rule providing for the allocation of liability for damages in proportion to the relative fault of each party. United States v Reliable Transfer Co, Inc, 421 US 397; 95 S Ct 1708; 44 L Ed 2d 251 (1975).
A review of the United States Supreme Court’s rationale is applicable to the problem before us and serves to reinforce our reasoning in the case at bar.
First, the Court noted that while the precise origins of the divided damages rule "are shrouded in the mists of history”, 421 US 401, the divided damages rule did not emerge "as we know it” until early in the 19th century, and was adopted by the United States Supreme Court in 1855. 421 US 402.
"The rule was adopted because it was then the prevailing rule in England, because it had become the majority rule in the lower federal courts, and because it seemed the 'most just and equitable, and * * * best [tended] to induce care and vigilance on both sides, in the navigation.’ Id, at 177-178. There can be no question that subsequent history and experience have conspicuously eroded the rule’s foundations.” 421 US 402-403 (notes omitted), quoting The Schooner Catharine v Dickinson, 58 US (17 How) 170; 15 L Ed 233 (1855).
The Court then recognized that not only had England abandoned the rule, but the Brussels Collision Liability Convention of 1910 provides for apportionment of damages on the basis of "degree” of fault. Thus, "the United States is now virtually alone among the world’s major maritime nations in not adhering to the Convention with its rule of proportional fault”. 421 US 403-404.
The Court also observed that lower courts, although following the rule of divided damages, "have more recently followed it only grudgingly, terming it 'unfair,’ 'illogical,’ 'arbitrary,’ 'archaic and frequently unjust’ ”, 421 US 404.
They found "[i]t is no longer apparent, if it ever was, that this Solomonic division of damages seems to achieve even rough justice”. 421 US 405. " 'This result hardly commends itself to the sense of justice any more appealingly than does the common law doctrine of contributory negligence ***’”. 421 US 405.
As to "escape valves”, the Court noted it had attempted to escape the "patent harshness” of the equal damages rule by applying the "major-minor” fault doctrine. However, they now observed,
"But this escape valve, in addition to being inherently unreliable, simply replaces one unfairness with another. That a vessel is primarily negligent does not justify its shouldering all responsibility, nor excuse the slightly negligent vessel from bearing any liability at all. See Tank Barge Hygrade v The Gatco New Jersey, 250 F2d 485, 488 (CA 3 [1957]). The problem remains where it began with the divided damages rule.” 421 US 406.
As to the attempted justification "by the difficulty of determining comparative degrees of negligence when both parties are concededly guilty of contributing fault”, the Court acknowledges:
"Although there is some force in this argument, it cannot justify an equal division of damages in every case of collision based on mutual fault. When it is impossible fairly to allocate degrees of fault, the division of damages equally between wrongdoing parties is an equitable solution. But the rule is unnecessarily crude and inequitable in a case like this one where an allocation of disparate proportional fault has been made. Potential problems of proof in some cases hardly require adherence to an archaic and unfair rule in all cases. Every other major maritime nation has evidently been able to apply a rule of comparative negligence without serious problems, see Mole & Wilson, A Study of Comparative Negligence, 17 Cornell LQ 333, 346 (1932); In re Adams’ Petition, 125 F Supp 110, 114 (SDNY [1954]), aff'd 237 F2d 884 (CA 2 [1956]), and in our own admiralty law a rule of comparative negligence has long been applied with no untoward difficulties in personal injury actions.” 421 US 407 (emphasis added).
The Court rejected the argument that the equal apportionment rule promoted out-of-court settlements, noting as well that,
"Experience with comparative negligence in the personal injury areas teaches that a rule of fairness in court will produce fair out-of-court settlements. But even if this argument were more persuasive than it is, it could hardly be accepted. For, at bottom, it asks us to continue the operation of an archaic rule because its facile application out of court yields quick, though inequitable, settlements, and relieves the courts of some litigation. Congestion in the courts cannot justify a legal rule that produces unjust results in litigation simply to encourage speedy out-of-court accommodations. 421 US 408.
As for the power of the judiciary to make such a change in the face of congressional silence, the Supreme Court was equally persuasive:
"This Court, in other appropriate contexts, has not hesitated to overrule an earlier decision and settle a matter of continuing concern, even though relief might have been obtained by legislation. See Burnet v Coronado Oil & Gas Co, 285 US 393, 406 fn 1 [52 S Ct 443; 76 L Ed 815 (1932)] (Brandeis, J., dissenting) (collecting cases).” 421 US 409, fn 15.
The stare decisis argument was equally convincingly attacked:
"As the authors of a leading admiralty law treatise have put the matter:
" '[T]here is no reason why the Supreme Court cannot at this late date "confess error” and adopt the proportional fault doctrine without Congressional action. The resolution to follow the divided damages rule, taken 120 years ago, rested not on overwhelming authority but on judgments of fact and of fairness which may have been tenable then but are hardly so today. No "vested rights,” in theory or fact, have intervened. The regard for "settled expectation” which is the heart-reason of * * * stare decisis * * * can have no relevance in respect to such a rule; the concept of "settled expectation” would be reduced to an absurdity were it to be applied to a rule of damages for negligent collision. The abrogation of the rule would not, it seems, produce any disharmony with other branches of the maritime law, general or statutory.’ Gilmore & Black [The Law of Admiralty (2d ed)], p 531 (footnote omitted).” 421 US 410.
The rule of divided damages died, and the Court held that:
"[W]hen two or more parties have contributed by their fault to cause property damage in a maritime collision or stranding, liability for such damage is to be allocated among the parties proportionately to the comparative degree of their fault, and that liability for such damages is to be allocated equally only when the parties are equally at fault or when it is not possible fairly to measure the comparative degree of their fault.” 421 US 411.
We are unconvinced that the arguments so well negated by three state courts and by the United States Supreme Court in a related area should hold sway here.
The rule which made its appearance when the adversaries were horse and buggy versus railroad, and which may have served a function in the days of the Industrial Revolution serves no function today. We the judiciary who created that rule, today hereby abrogate it.
XI — What Type of Comparative Negligence is Appropriate?
We turn now to determining the form of comparative negligence which is best suited to our state.
We are convinced, as was the United States Supreme Court and the other courts which have adopted the comparative negligence doctrine, that the "pure” form is preferable to any other.
The "pure” form does not "unjustly enrich” anyone. For example, if an accident is wholly the fault of one party, then that party would not, of course, recover damages. If an injured plaintiff was 51% to blame, there still remains 49% of the fault which was not plaintiffs, and for which therefore the person who caused that much of the injury should be liable.
The rule preventing recovery if plaintiffs negligence exceeds 50% of the total fault is just as arbitrary as that which completely denies recovery. Is the person who is 49% negligent that much more deserving than the one who is 51% negligent?
We acknowledge that even under the "pure” form of comparative negligence there will be appeals concerning the percentage of award, but it is undoubtedly more compelling to appeal when you have been awarded nothing than when you have received some compensation. However, just as we did not reach our decision on contributory negligence because of the anticipated number of case filings, we will not reach our decision on the form of comparative negligence because of an equally unpredictable element, the anticipated number of appeals.
Commentators acknowledge that the hybrid 50% rule leads to strange results.
"It is obvious that a slight difference in the proportionate fault may permit a recovery; and there has been much justified criticism of a rule under which a plaintiff who is charged with 49 per cent of the total negligence recovers 51 per cent of his damages, while one who is charged with 50 per cent recovers nothing at all.” Prosser, supra, 51 Mich L Rev 493-494.
See also Keeton, Comment on Maki v Frelk, 21 Vand L Rev 906 (1968); Leflar, Comment on Maki v Frelk, 21 Vand L Rev 918 (1968).
"If two parties are injured in one accident, as in an automobile collision, the one who is slightly more negli gent than the other must bear his own loss and close to one-half of the losses of the other. The problem is compounded where the combined negligence of several parties produces the injuries resulted. In a three-car collision a plaintiff whose negligence amounts to only one-third recovers nothing.” Brief for Amicus Curiae Negligence Law Section of the State Bar of Michigan in Support of Comparative Negligence, Parsonson v Construction Equipment Co, 386 Mich 61; 191 NW2d 465 (1971), p 40.
What the hybrid rule does in fact is not eliminate contributory negligence, but merely lower the barrier.
The doctrine of pure comparative negligence does not allow one at fault to recover for one’s own fault, because damages are reduced in proportion to the contribution of that person’s negligence, whatever that proportion is. The wrongdoer does not recover to the extent of his fault, but only to the extent of the fault of others. To assume that in most cases the plaintiff is more negligent than the defendant is an argument not based on equity or justice or the facts. What pure comparative negligence does is hold a person fully responsible for his or her acts and to the full extent to which they cause injury. That is justice.
This is the system of comparative negligence judicially adopted in Florida, California, Alaska, and by the United States Supreme Court to replace the equal division rule in admiralty actions. It is the system in the FELA, the Merchant Marine Act, the Jones Act, and Death on the High Seas Act. It is simplest to administer where multiple defendants are concerned. The system in operation has not led "to runaway verdicts for negligent plaintiffs”. Schwartz, Treatise, § 3.2, p 52.
We recognize that the 50% system has been the most popular among those legislatively adopted. Schwartz, § 3.5, p 73. But it is not the system which we believe will really do justice.
We recognize that the doctrine of last clear chance served to mitigate the harshness of contributory negligence and therefore its retention might appropriately be reconsidered once pure comparative negligence is adopted.
Although not mandatory, the trial court may find it desirable to utilize the special verdict procedure, in cases in which comparative negligence is an issue. GCR 1963, 514. Thus, for example, the jury may be asked the percentage of fault attributable to each party, and the damage each party suffered.
Because of the extensive changes precipitated by this decision, the rule of comparative negligence will apply only to the present case and to those cases filed after the date of this decision.
XII — Conclusion
We are remanding the instant case for trial because of errors committed in the charge to the jury.
Because the facts of this case raise once again the question of whether we should continue to apply the harsh rule of contributory negligence, we have today rejected that doctrine and have adopted the pure form of comparative negligence. Thus, as to the instant case and all cases filed after the date of this decision, where the negligence of plaintiff is an issue, the amount of damages recovered by plaintiff shall be reduced in proportion to the extent of plaintiff’s fault. Fur ther, as to cases filed after the date of this decision, contributory negligence is hereby abolished. Reversed and remanded.
Costs to plaintiffs.
Kavanagh, C. J., and Levin, J., concurred with Williams, J.
Appendix
Questions and Answers About Comparative Negligence
Whether comparative negligence should be adopted was debated before our Court several years ago. Parsonson v Construction Equipment Co, 386 Mich 61; 191 NW2d 465 (1971). Although the case was decided on other grounds, the parties and amici curiae raised and discussed some of the principal questions about comparative negligence. These are summarized infra.
(1) Is Comparative Negligence Confusing? ,
Those who argue that comparative negligence is both confusing and difficult to administer both underestimate the modern jury and misread the facts. Juenger, supra, 18 Wayne L Rev 31.
Even under contributory negligence, juries every day make subtle judgments concerning appropriate damages attributable to defendant’s negligence which should be awarded to deserving plaintiffs. And, as we have seen, under the doctrine of avoidable consequences, almost the same kind of reason ing which would be used in a comparative negligence case in analyzing fault before the injury occurs, is used in analyzing fault after the injury occurs.
But it is not necessary to conduct this analysis on a theoretical basis. An analysis of comparative negligence systems in states in which the system operates is possible to determine whether indeed the juries are doing the job required. Apparently, the answer is that juries perform their function in these jurisdictions without significant problems.
"Juries have been making apportionments on the basis of comparative negligence with apparent success in Florida in railway accident cases since 1887; and in Wisconsin they have been applying the rule to all types of negligence cases, apparently to the complete satisfaction of the Wisconsin bar, since 1931.” Maloney, From Contributory to Comparative Negligence: A Needed Law Reform, 11 U Fla L Rev 135, 163 (1958).
Certainly, the juries which make up the panels in comparative negligence states are no more sagacious than the panels in those states following contributory negligence. Under conflict of laws rules, if an injury occurs in a state which does follow that concept, the jury would still apply comparative negligence, even if the matter were litigated in a contributory negligence state. We are not aware of any instance where the rules have had to be changed because the juries have not been able to handle it.
Further, there is sufficient case law derived from the experience under state and federal legislation and under common law to provide guidance in the decision-making process. Certainly, too, experience with the FELA and admiralty legislation, and with our own state’s comparative negligence statute cannot be dismissed with the mere conjecture that the process would suddenly be too confusing or too difficult to administer for the juries and courts of our state alone.
(2) Will Comparative Negligence Discourage Settlement and Increase the Volume of Litigation?
Comparative negligence adherents have predicted more manageable court dockets because of fewer and shorter trials as plaintiffs no longer feel required to opt for jury trials in order to nullify the contributory negligence law, and defendants feel free to settle once the hope of winning via proof that plaintiff was contributorily negligent disappears. Since the remaining trials would be largely bench trials, the argument goes, trials will be shorter and more simplified.
Opponents, on the other hand, say that what has happened is that more plaintiffs receive awards under comparative negligence. See Brief for Amicus Curiae, Association of Defense Trial Counsel, Parsonson v Construction Equipment Co, supra, pp 12-14. This, of course, is not the same thing as creating unworkable dockets or filing spurious claims.
Although the arguments concerning the burdens of judicial administration should not by themselves be reasons for changing or retaining legal systems, it is still useful to be able to anticipate future court problems. As best as we can surmise from the litigation and the arguments made to this Court, neither party’s theoretical arguments have tended to be true in practice.
While this says something about basing judgments on theoretical fears, it also indicates the importance of not making decisions based on threatened Pandora’s Boxes or hoped-for Nirvanas.
A famous study of the operation of comparative negligence in Arkansas was undertaken by the Columbia University Project for Effective Justice. What the Arkansas study showed was:
(1) Under comparative negligence more persons who sustained tort injuries found lawyers ready to prosecute their damage claims. Rosenberg, Comparative Negligence in Arkansas: A Before and After” Survey, 36 NY State Bar J 457, 466 (1964).
(2) More settlements were promoted under comparative negligence. Rosenberg, supra, 36 NYSBJ 467.
(3) There was no change in the tendency to demand a jury trial under comparative negligence. Rosenberg, supra, 36 NYSBJ 468.
(4) Judges felt that liability was easier to assess but damages were difficult to ascertain. Lawyers agreed with the greater difficulty of assessing damages but felt that liability was also harder to determine. The report concluded that the evidence was that comparative negligence did not tend significantly to increase trial length, and that the greater difficulty of determining the damage issue was probably offset by greater ease in determining liability. Rosenberg, supra, 36 NYSBJ 468-469.
(5) Settlements during trial were unchanged. Rosenberg, supra, 36 NYSBJ 470.
(6) The size of plaintiffs’ verdicts were apparently unchanged by the adoption of the comparative negligence statute. However, plaintiffs won the liability question more often than under contributory negligence. Rosenberg, supra, 36 NYSBJ 470. It is likely, then, that cases were worth more for settlement. Rosenberg, supra, 36 NYSBJ 473.
(7) The survey reported that whereas 63% of defense lawyers opposed comparative negligence at the outset, three years after adoption only 26% thought it was not helpful in before-trial settlements. Sixty percent of plaintiffs’ lawyers found comparative negligence helpful, a decline of 10% from those who initially favored adoption. Rosenberg, supra, 36 NYSBJ 471-472.
Since neither side has been able to show a disproportionate impact on trial dockets results from the adoption of comparative negligence, we do not hesitate to base our judgment largely on other matters.
(3) Will Comparative Negligence Cause Insurance Rates to Increase?
Proponents report that the effect of comparative negligence on insurance rates has been minimal, with the suggestion that part of this is due to the tendency of insurance adjusters, juries, and sometimes even courts to actually practice a form of comparative negligence even in contributory negligence states. Schwartz, Comparative Negligence (Treatise), § 21.1, p 338.
The Brief for Amicus Curiae, Association of Defense Trial Counsel, in the case of Parsonson v Construction Equipment Co, 386 Mich 61; 191 NW2d 465 (1971), maintains that the alleged fact of the jury’s de facto repeal of contributory negligence is not necessarily a certainty, p 15. More significantly, however, one amicus refrained from making "a categorical statement that comparative negligence will mean increased insurance premiums, simply because there are too many variables”. Id, p 15.
Another amicus, Negligence Law Section of the State Bar of Michigan in Opposition to Comparative Negligence, Parsonson v Construction Equipment Co, predicted that adoption of the pure or modified form of comparative negligence would increase insurance rates, while application of the slight negligence rule might have little or no effect. Brief, p 24. That amicus appeared to rely on the opinion of several writers that comparative negligence increases the number of situations in which the plaintiff can recover, and that automobile liability insurance premiums in Wisconsin [with comparative negligence] were higher than in comparable communities in neighboring states. They also noted that insurance rates are already rising, and that it would be against the public interest to add comparative negligence and make costs concomitantly higher. Id, pp 25, 26, 29.
However, the Brief for Amicus Curiae, Michigan Trial Lawyers Association in Support of Comparative Negligence, reiterates the conclusion of Professor Peck, Comparative Negligence and Automobile Liability Insurance, 58 Mich L Rev 689, 728 (1960):
"It is possible that comparative negligence has an effect upon insurance rates, but that that effect cannot be detected with the data on hand and the techniques used. Even if this is true, however, some measure of its force has been obtained. Adoption of a comparative negligence rule, as shown by the Arkansas experience, would not have a catastrophic result upon the insurance rate structure of any state. Indeed, it would not have as much effect as rapid growth of population, increased urbanization, or change to a traffic program with the effective safety record of a neighboring state. Its effect, if any, would probably go undetected in the rates and statistics of the insurance industry.”
Further, amicus quotes:
"[O]ne defense practitioner [who] has put the matter more laconically: 'We pay more people perhaps, but we pay less to each.’ Pfankuch, Comparative Negligence v Contributory Negligence, 1968 Insurance L J 725, 731 [1968].” Trial Lawyers Brief, supra, p 16.
One Amicus brief, that of the Negligence Law Section of the State Bar of Michigan in Support of Comparative Negligence, actually presented figures comparing insurance costs at the time between states having contributory negligence and those with comparative negligence:
Quoting a defense attorney, amicus wrote:
"Let me give you the costs in various states having contributory negligence:
"Massachusetts — $129.92 Illinois — $92.76
New York — $109.69 Connecticut — $91.32
Rhode Island — $99.97 New Jersey — $81.95
"Let us compare these costs with the comparative negligence states:
"Wisconsin — $75.74 Georgia — $50.82
Mississippi — $66.54 Nebraska — $49.05
Arkansas — $55.61 South Dakota — $33.01
"All [the comparative negligence states] are below the U.S. average of $79.64.” Heft, Comparative Negligence, 19 Federation of Ins Counsel Q 91, 93 (Spring, 1969), quoted in Negligence Section Brief, supra, pp 55-56, fn 98.
Amicus also quotes the observations of Pound:
"[K]eeping down insurance rates at the expense of justice is not in keeping with humanitarian ideals of today. The world has been giving up the idea of leaving the burden of the nine million accidents which are recorded in the United States each year to fall wholly upon the injured victims.” Pound, Comparative Negligence, 13 NACCA L J 195 (1954), quoted in Negligence Section Brief, supra, p 22.
Here again, we find ourselves as we did when evaluating the question of increased litigation, with a situation in which the dire predictions appear not to have been realized, but where data to definitively resolve the issue are not fully conclusive.
(4) Is Adoption of Comparative Negligence Unnecessary Since Juries Already Apply Some Form of Comparative Negligence?
This alleged predilection of juries has been adverted to as a factor in favor of not making a formal change to comparative negligence. Powell, Contributory Negligence: A Necessary Check on the American Jury, 43 ABA J 1005 (1957).
Some courts have also maintained the practice of jury administered comparative negligence exists.
"No one can appreciate more than we the hardship of depriving plaintiff of his verdict and of all right to collect damages from defendant; but the rule of contributory negligence, through no fault of ours, remains in our law * * * . It would be hard to imagine a case more illustrative of the truth that in operation the rule of comparative negligence would serve justice more faithfully than that of contributory negligence. We but blind our eyes to obvious reality to the extent that we ignore the fact that in many cases juries apply it in spite of us.” Haeg v Sprague, Warner & Co, Inc, 202 Minn 425, 429-430; 281 NW 261 (1938).
"The doctrine of comparative negligence, or degrees of negligence, is not recognized by the Courts of Pennsylvania, but as a practical matter they are frequently taken into consideration by a jury. The net result, as every trial judge knows, is that in a large majority of negligence cases where the evidence of negligence is not clear, or where the question of contributory negligence is not free from doubt, the jury brings in a compromise verdict.” Karcesky v Laria, 382 Pa 227, 234; 114 A2d 150, 154 (1955).
However, it is apparent that often a jury, as in the case at bar, does not so compromise and instead follows the court’s instructions as they are supposed to do. This may then result in at best a rough-hewn type of justice, one in which, if the jury chooses to in effect disobey the law, the "lucky” plaintiff may receive a form of justice, but where a jury chooses instead to follow the law an even more deserving plaintiff would be barred from recovery.
Even if the jury does adopt the compromise verdict,
"[I]t has been pointed out that the practice itself is evidence that the contributory negligence rule does not conform to the community’s sense of justice — indeed, it fosters disrespect for the law by perpetuating a questionable system whereby trial judges instruct juries on the theory of contributory negligence while tacitly recognizing that the jury will disregard the instructions and somehow apportion the damages.” Anno, supra, 32 ALR3d 488.
"T]he disrespect for law engendered by putting our citizens in a position in which they feel it is necessary to deliberately violate the law is not something to be lightly brushed aside; and it comes ill from the mouths of lawyers, who as officers of the courts have sworn to uphold the law, to defend the present system by arguing that it works because jurors can be trusted to disregard that very law.” Maloney, From Contributory to Comparative Negligence: A Needed Law Reform, 11 U Fla L Rev 135, 151-152 (1958).
Therefore, we believe this argument is persuasive only to convince us that, if it is indeed true that juries do apply comparative negligence sub rosa, it would be better to bring the practice out from underneath the table.
(5) Does No-Fault Legislation Make Comparative Negligence Unnecessary?
One of the most telling arguments in support of comparative negligence is that because it allocates liability according to fault, it is more faithful to the fault principle underlying our negligence law than the aberrational contributory negligence concept. Logically, then, the adoption of no-fault legis lation may well reduce the need for a comparative negligence approach.
The argument, however, is too simplistic, for, while no-fault would apply to most automobile negligence cases, it does not apply to all, as there is still a considerable area of no-fault exceptions in which the fault principle is still applied. Further, no-fault is indeed at the present time restricted to only automotive litigation, and, for example, cases involving slip and fall, products liability, or plane, boat, or train accidents are not affected.
It is also coincident with the policy expressed in no-fault, that victims of automobile accidents may be compensated regardless of whether they are at fault, to do away with a rule that "bars any recovery because of some fault”. Codling v Paglia, 32 NY2d 330, 345, 346; 298 NE2d 622, 630, 631 (1973) (Jasen, J., concurring).
Thus, other states have not found the doctrines mutually exclusive. "Of the 21 states having adopted comparative negligence since 1969 by statute * * * , 13 also have no-fault coverage * * * . Among the six earlier adherents two have since adopted no-fault plans.” Fleming, Foreword: Comparative Negligence at Last — By Judicial Choice, supra, 64 Cal L Rev 239, 240, fn 3 (1976). Georgia and Florida, which adopted comparative negligence by court decision, also have no-fault plans. Schwartz, Treatise, § 1.4, p 12; § 1.5, pp 18-19, 24-27.
Thus, the adoption of no-fault, if it affects comparative negligence at all, affects only the scope of the change. If anything, therefore, it makes the new doctrine less revolutionary than it otherwise might be. But it does not eliminate the need for the change.
On direct examination, Kirby testified:
"A. [Kirby]: Debbie was cranking the wheel and being I’m a very nervous passenger in any case I said something, 'Well, Debbie you better start turning.’ I don’t really know the exact words but I did say something about the truck’s moving and we were right in the intersection so I was really kind of scared.
"Q. Was she in the process of turning at that time?
"A. Oh, yes.”
However, on cross-examination, her contradictory deposition came out.
"Q. That she had started her turn before you said anything is that my understanding of your testimony here?
'A. [Kirby]: Ya.
"Q. Do you recall when your deposition was taken on April 5th of 1972, being asked this series of questions and these answers? On page 18 the lower portion. 'Q. (Mr. Coté: In any event, Debbie didn’t attempt to make a left turn until after you stated to her that she should turn left to clear the intersection I take it?’
”Q. And your answer under oath on that date was, 'Yes.’ * * * ”
The judge instructed:
"If you find that the defendant violated this ordinance before or at the time of the occurrence such violation is evidence of negligence which you should consider together with all the other evidence in deciding whether the defendant was negligent. If you find that the defendant was negligent, you must then decide whether such negligence was the proximate cause of the injury to the plaintiff.
"If you find no negligence by the defendant or that any negligence was not a proximate cause of the injuries to the plaintiff, then you must find for the defendant.”
"The City of Ann Arbor has an ordinance which provides that: '10.20. Duties on Turning. The driver of any vehicle upon a street before starting, stopping or turning from a direct line shall first see that such movement can be made in safety, shall give a signal as required by this section, and shall yield the right of way to vehicles coming in the opposite direction or approaching from the rear.’
"If you find that the operator of the plaintiff vehicle violated this ordinance before or at the time of the occurrence such violation is evidence of negligence which you should consider together with all other evidence in deciding whether the defendant was at all negligent.
"If you find that the operator of the plaintiff vehicle was negligent you must then decide whether such negligence was the sole proximate cause of the accident. If it was, and if you find no negligence by the defendant which was a proximate cause of the accident then your verdict would be for the defendant.”
Defense counsel argued that defendant’s remark about the traffic ticket was an unresponsive comment and was not properly before the court.
Page 286 of the transcript is missing an article before the word "proximate,” so that we do not know whether the jury was asking about a proximate cause or the proximate cause.
The nature of the error was not, however, revealed by the Court.
Honigman & Hawkins suggest that two possible policies underlie the rule, one that such convictions are not credible evidence or are unduly prejudicial, and the other that the policy is to encourage guilty pleas in traffic courts. However, since, as drafted, the statute relates only to the admissibility of evidence, a subject clearly more within the rule-making competence of the courts, the rule should supersede the statute where the two conflict. 3 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 404.
Justices Fitzgerald and Williams dissented stating: "This case is governed by Socony Vacuum.”
In Wheelock, the majority of the Court agreed with defendant’s [Eyl’s] contention that his payment of a traffic ticket fine could not be considered as evidence of negligence. We did not consider whether the trial court correctly ruled that issuance of the traffic ticket could be substantive evidence of negligence. Since the basis of the decisions overruled by Wheelock was the prior judicial admission exception to the hearsay rule, 393 Mich 78, the traffic ticket issuance question, involving as it does other problems, was not resolved.
It is likely that we were influenced by defense counsel’s deliberately injecting the traffic ticket information into the case. 388 Mich 511. Compare Gibson v Traver, 328 Mich 698, 701-702; 44 NW2d 834 (1950); Moffatt v Helmer, 345 Mich 153, 157-158; 75 NW2d 887 (1956).
"No person shall be excluded from giving evidence on any matter, civil or criminal, by reason of crime or for any interest of such person in the matter, suit, or proceeding in question, or in the event of such matter, suit or proceeding, in which such testimony may be offered, or by reason of marital or other relationship to any party thereto; but such interest, relationship, or conviction of crime, may be shown for the purpose of drawing in question the credibility of such witness, except as is hereinafter provided.” (Emphasis added.)
This was Ann Arbor ordinances, § 10.26(3), concerning effect of a red signal light at an intersection.
This was Ann Arbor ordinances, § 10.37, concerning the right of way while making a left turn.
This involved Ann Arbor ordinances, § 10.26(2), the effect of a yellow caution light.
This is Ann Arbor ordinances, § 10.20.
This was Ann Arbor ordinances, § 10.44, which requires drivers to maintain a careful and prudent speed.
These included a claim that contributory negligence was improperly inserted into the case.
Unfortunately, the transcript is missing the article at this crucial point, so that we do not know, in fact, whether the jury referred to "a” or "the” proximate cause, or perhaps in confusion intentionally dropped the article altogether.
See, e.g., SJI 21.02:
"The plaintiff has the burden of proof on each of the following propositions:
"(c) that the negligence of the defendant was a proximate cause of the (injuries) (damages) to the plaintiff.
"The defendant has the burden of proof on his claim that the plaintiff was negligent in one or more of the ways claimed by the defendant as stated to you in these instructions; and that such negligence was a proximate contributing cause of the (injuries) (damages) to the plaintiff.
"Your verdict will be for the defendant, if plaintiff was not (injured) (damaged); or if defendant was not negligent; or if negligent, such negligence was not a proximate cause of the (injuries) (damages); or if the plaintiff himself was negligent and such negligence was a proximate contributing cause of his (injuries) (damages).” (Emphasis added.)
For example, it should be apparent that the driver would heed the warning.
The Restatement suggests that exceptional situations exist where "plaintiff knows that at a particular point there will be a peculiar danger, which he has no reason to believe that the driver if unaided will perceive”, or, for example, if "he knows from past experience, or from the manner in which the car is being driven on the particular trip, that the driver is likely to be inattentive or careless”. 2 Restatement, Torts 2d, § 495, pp 556-557.
In Vanderah, where plaintiffs negligence consisted in knowingly associating herself with a drunk driver, this writer observed, 387 Mich 659-661:
"While I feel bound for the present by the recognition of this 'contributory negligence’ doctrine by our case law and by the Restatement, I recognize the blunderbuss, all or nothing, character of the doctrine.
"The effect of this rule then is on the one hand to relieve from any liability, because of the 'negligence’ of the passenger, a third party driver who, despite the lesser or greater degree of his negligence, is nonetheless an affirmatively negligent driver without whom the accident would not have happened and, on the other hand, to possibly separate from any recovery one whose cause of injury is the direct result of the negligence of others and her 'negligence’ though real is only in associating herself with a negligent actor. A more equitable and rational balancing of the interests to be served by the law of tort would allow the jury to balance the foolishness of the plaintiff guest against the negligence of her host and the negligence of the other driver, and to return a verdict expressed in terms of a percentage of the plaintiffs damage attributable to the defendant third party driver’s negligence.
"In short it appears that, while there is logic in our Michigan law of negligence which renders real justice in most cases, it is so rough hewn that in a number of cases its all or nothing rule gives either too much or too little. It is for this reason that a comparative negligence system appears necessary to render a more even level of justice. The character and stage of this case render it an inappropriate instrument to launch such a doctrine, but, absent clear evidence of the legislature filling this gap in our present system, when an appropriate case opportunely appears an opinion supporting a rule of comparative negligence will be forthcoming.”
"It was not, as a matter of fact, introduced in its parent case with any discussion of pertinent principles or weighing of social consequences. (Bohlen, Contributory Negligence, 21 Harvard L Rev 233 [1908].) It was simply stated. It squinted at cause and smelled of the early 'last human wrongdoer’ doctrine. Thus the Butterñeld court remarked that with ordinary care the plaintiff (who, we observed, 'had been riding with great violence’) could have seen the obstruction. Hence, 'the accident appeared to happen entirely from his own fault.’ Its ready acceptance, indeed, is in part attributable to its linkage with medieval principles of causation (8 Holsworth, History of English Law [1922], p 459; James, Last Clear Chance, 47 Yale L J 704 [1938]). But only in part is it so attributable. The more significant factor was the burgeoning industrial revolution. We have discussed heretofore (e.g., Salmon v Bagley Laundry Co, 344 Mich 471, dissent 475 [74 NW2d 1 (1955)]; Pazan v Unemployment Compensation Commission, 343 Mich 587, dissent 592 [73 NW2d 327 (1955)]; Powell v Employment Security Commission, 345 Mich 455, dissent 462 [75 NW2d 874 (1956)]) the impact of the great revolution upon our legal doctrines and precedents as concerned workingmen and their families. But our entire society was affected since the dangers of the new mechanical devices (e.g., the railroads) marched hand in hand with their blessings. Injuries multiplied. Recoveries, however, did not keep pace. The causes of denial were both philosophical and economic, social as well as legal. (Bohlen’s Contributory Negligence, 21 Harvard L Rev 233 [1908], and Malone’s The Formative Era of Contributory Negligence, 41 Ill L Rev 151 [1946].) In this pattern of denial, possibly essential thereto, was the doctrine of contributory negligence. On the substantive side it was perfectly consistent with the intense individualism of the common law. But it served, as well, a procedural purpose, for
" 'By adoption of the doctrine of contributory negligence, a court could, in many cases, find a welcome means by which to control, or even to eliminate, the jury. Specific features of plaintiff behavior, acts or omissions which would be apt to recur frequently in special types of cases, as for instance in railroad crossing accidents, could be handled by rule-of-thumb judgments, soon to be regarded as rules of law, leaving nothing to be considered by the jury. Thus, the issue of contributory negligence came to be "an ingenious device which gave the court almost complete freedom to accept or reject jury participation at its pleasure.” (Turk, Comparative Negligence on the March, 28 Chieago-Kent L Rev 189, 199 [1950].)’ ” 349 Mich 398-399.
Concern about the equity of contributory negligence did not die with Miller, and we took the opportunity on several occasions to comment on this dilemma. See, e.g., Lanier v Minneapolis, SP & S S M R Co, 209 Mich 302, 305-306; 176 NW 410 (1920). ("It may not be the better rule to say that however much the defendant was negligent the plaintiff cannot recover, if slight negligence upon his part contributed to his injuries. But this rule will doubtless be followed by this court until the legislature changes the rule to one of comparative negligence, leaving it to the jury to measure the degree of fault with which each party shall be charged.”); Sun Oil Co v Seamon, 349 Mich 387, 394; 84 NW2d 840 (1957) (Smith, J.); Vanderah v Olah, 387 Mich 643, 654; 199 NW2d 449 (1972) (Williams, J.).
A doctrine similar to last clear chance was called "subsequent negligence” or "discovered peril,” which required that the plaintiffs negligence put him or her in a position of peril and that the defendant must have discovered plaintiffs peril or should have discovered it by the exercise of ordinary care and diligence. Dunn v Detroit, 349 Mich 228, 234; 84 NW2d 501 (1957); St John v Nichols, 331 Mich 148, 156; 49 NW2d 113 (1951).
Plaintiff had been participating in an illegal bingo game in a church, and was permitted to recover for injuries sustained when she fell into a hole on the church premises.
Three members of the Court signed Justice Smith’s opinion, three signed the dissent, and one concurred in the result reached by Justice Smith, but for different reasons. One member of the court took no part in the decision.
Justice Smith recognized there is no such general rule in damage actions and that, in fact, if defendant had the last clear chance to avoid the injury, the plaintiff will recover completely, even though negligent.
"The difficulty with it [this argument] is its lack of realism. If the prospect of mutilation or loss of life will not deter the careless driver, it is to be doubted that the loss of a lawsuit (should it ever develop) will be more efficacious. Moreover, still in the realm of realism, let us not forget that for every contributorily negligent driver who is denied damages for his relief, we have another driver who set the machinery of disaster in motion but who completely escapes responsibility therefor through the doctrine of contributory negligence. The whip of deterrence to the one is counterbalanced by the boon of absolution to the other.” 349 Mich 402.
"In fact, deterrence is better provided by a comparative negligence rule which penalizes both 'wrongdoers.’ ” Juenger, supra, 18 Wayne L Rev 22.
Commentators have reserved sharp criticism for this rationalization.
"The attempt which common law courts have made to resolve every major problem of legal liability in tort into terms of causal relation marks the most glaring and persistent fallacy in tort law.
"Such pronouncements ignore the fact that it is recognized on all hands that there may be two or more proximate causes of an injury. Moreover, it is wholly unnecessary to make this fictitious distinction in order to defeat the plaintiff. The defendant’s negligence may clearly be a proximate cause of the injury, and still the plaintiff be defeated even though his negligence is also a proximate cause. This attempt to make the plaintiff’s contributory negligence the 'sole’ proximate cause is not only gratuitous and fictitious, but it ignores the true basis for defeating the plaintiff’s action and introduces a false doctrine which throws the whole subject into confusion.” Green, Contributory Negligence and Proximate Cause, 6 NC L Rev 3, 12 (1927).
"Most of the decisions have talked about 'proximate cause,’ saying that the plaintiff’s negligence is an intervening, insulating cause between the defendant’s negligence and the injury. But this cannot be supported unless a meaning is assigned to proximate cause which is found nowhere else. If two automobiles collide and injure a bystander, the negligence of one driver is not held to be a superseding cause which relieves the other of liability; and there is no visible reason for any different conclusion when the action is by one driver against the other.” Prosser, Comparative Negligence, 51 Mich L Rev 465, 468 (1953).
"[I]t [the proximate cause explanation] simply does not fit the facts. In the typical case of contributory negligence both plaintiff and defendant would be liable to any third person injured by the accident. Thus if two automobile drivers collide at an intersection because neither is keeping a lookout, both are everywhere held liable to a bystander hurt by the collision. This of course means that the negligence of each is both a cause in fact and a proximate cause of the collision (and ensuing damage) under any tests having general currency among the courts today. Yet under the contributory negligence rule, neither driver can recover from the other for his own injuries.” 2 Harper & James, Law of Torts, § 22.2, pp 1199-1200, quoted in 349 Mich 403.
“This rule, it is true, often, and perhaps generally, fails to produce justice; and, upon abstract principles of right and wrong, may be said to be frequently unjust in its operation. Justice might seem to require that each should bear the loss in the proportion they had respectively contributed to the injury.” 25 Mich 277.
“The plaintiff is being denied recovery because (and this we declare as a matter of law) his was a portion of the fault. But if we are to consider his fault, we should, in all fairness, consider the fault ot the other. (See Cooley, C. J., in Detroit & MR Co v Van Steinburg, 17 Mich 99, 119 [1868].) Not for reasons of abstract symmetry, but because of human experience: fault is rarely the monopoly of one party to an accident. Yet the doctrine of contributory negligence so treats it in our court today, denying the fundamental principle of right and justice that juries weigh the merits and demerits of each of the parties to a controversy.” 349 Mich 403.
"While I feel bound for the present by the recognition of this 'contributory negligence’ doctrine by our case law and by the Restatement, I recognize the blunderbuss, all or nothing, character of the doctrine.
"In short it appears that, while there is logic in our Michigan law of negligence which renders real justice in most cases, it is so rough hewn that in a number of cases its all or nothing rule gives either too much or too little. It is for this reason that a comparative negligence system appears necessary to render a more even level of justice.” 387 Mich 659, 661.
Professor Schwartz subsequently noted that this number had gone to "over 30 states”. Schwartz, Comparative Negligence: Oiling the System, 11 Trial 58 (July/August, 1975).
These acts require apportionment of damages, even if plaintiffs negligence is equal to or greater than that of the defendant, and even if one’s negligence is gross, and the other slight. Prosser, Comparative Negligence, 51 Mich L Rev 465, 481 (1953).
Bacila overturned the requirement that plaintiff must prove freedom from contributory negligence.
Finding the obstacles were judge-invented, he said, "they herewith judge-destroyed”. 359 Mich 49.
Apparently comparative negligence bills have began the legislative process in our state, but died in committee. See, Brief for Amicus Curiae, Michigan Trial Lawyers Association, Parsonson v Construction Equipment Co, supra, p 27. Schwartz, Treatise, § 1.4, p 14. Neef, Comparative Negligence, 27 Mich St Bar 3 34, 35, fn 17 (May, 1948).
This argument has been less kindly construed to say that since the court has confused the law so much, it itself is best qualified "to undertake drastic surgery”. Fleming, Foreword: Comparative Negligence at Last — By Judicial Choice, 64 Cal L Rev 239, 279-280, fn 163 (1976).
Schwartz reminds us that Justice Harlan, writing for the United States Supreme Court in creating an action for wrongful death under Federal maritime law, looked "to legislation in other areas to fashion a remedy”. Schwartz, Treatise, § 21.7, p 359. Wrote Harlan:
"It has always been the duty of the common-law court to perceive the impact of major legislative innovations and to interweave the new legislative policies with the inherited body of common-law principles —many of them deriving from earlier legislative exertions.” Moragne v States Marine Lines, Inc, 398 US 375, 392; 90 S Ct 1772; 26 L Ed 2d 339 (1970).
Schwartz notes, "The variety of wrongful death alternatives is certainly as great as those in comparative negligence.” Schwartz, Treatise, § 21.7, p 359.
Professor Keeton suggests that it is possible that a judicial decision may in turn stir legislative reaction with the possibility that "decisional and statutory creativity” will serve "in combination to bring about reform that neither alone would have been likely to achieve”. Keeton, Creative Continuity in the Law of Torts, 75 Harv L Rev 463, 475 (1962), quoted in Comment, Judicial Activism in Tort Reform: The Guest Statute Examplar and a Proposal for Comparative Negligence, 21 UCLA L Rev 1566, 1601 (1974).
Prior to the current judicial activity, the Georgia courts, in what Prosser has characterized a "remarkable tour de force of construction”, Torts (4th ed), § 67, p 436, adopted a form of comparative negligence by applying to all types of negligence cases an apportionment of damages statute concerning actions against railroad companies when plaintiff has been contributorily negligent. As outlined in Smith v American Oil Co, 77 Ga App 463, 491; 49 SE2d 90, 108 (1948), disapproved on other grounds involving applicability of last clear chance to defendant, Grayson v Yarbrough, 103 Ga App 243, 246; 119 SE2d 41, 43-44 (1961), the Georgia doctrine is:
"(1) if the negligence of the plaintiff equals or exceeds that of the defendant a recovery cannot be had by the plaintiff, (2) if the plaintiff is negligent in a lesser degree than the defendant a recovery may be had, and (3) if the plaintiff is negligent in a lesser degree than the defendant there may be a recovery but the damages shall be diminished by the jury in proportion to the amount of negligence attributable to the plaintiff.” Anno: The Doctrine of Comparative Negligence and its Relation to the Doctrine of Contributory Negligence, 32 ALR3d, § 7[a], p 479.
The Tennessee rule of "remote contributory negligence,” adopted in Bejach v Colby, 141 Tenn 686; 214 SW 869 (1919), permits plaintiff to recover only if the contributory negligence "remotely” contributed to the injury, regardless of the extent of the negligence, with the amount of damages reduced by the amount of contributory negligence. 32 ALR3d 479-480. Prosser criticizes this as resulting in the apportionment of damages only when defendant has the last clear chance. Prosser, Comparative Negligence, 51 Mich L Rev 465 (1953).
The Florida Court had to confront the problem of a statute which declared "the general English common and statute law in effect on July 4, 1776, was to be in force in Florida except to the extent it was inconsistent with Federal constitutional and statutory law and acts of the state Legislature. (Fla Stat Ann § 2.01 [West])”, Li v Yellow Cab Co of California, 13 Cal 3d 804, 813-814; 119 Cal Rptr 858; 532 P2d 1226, 1233 (1975). It found that contributory negligence did not exist as a clear-cut, common-law rule prior to 1809, but only as a matter of judicial thought, as opposed to judicial pronouncement. Finding that pre-1809 common law was not clear and free from doubt, it was therefore not part of the English common law, 280 So 2d 434-435. This type of problem, however, does not face us today.
The extensive annotation at 78 ALR3d 339 on comparative negligence became available after this case was submitted for decision.
The California Court found first that § 1714 of the state civil code appeared to provide specifically for contributory negligence mitigated by last clear chance. 13 Cal 3d 821; 532 P2d 1238. The section read:
"Everyone is responsible, not only for the result of his willful acts, but also for an injury occasioned to another by his want of ordinary care or skill in the management of his property or person, except so far as the latter has, willfully or by want of ordinary care, brought the injury upon himself.”
However, the Court found that the code was not intended to freeze the law as it was in 1872 at the time of its adoption, and that the section be interpreted so as to give "dynamic expression to the fundamental precepts which it summarizes”. 13 Cal 3d 821-822; 532 P2d 1238-1239.
The Court found those precepts to be "that one whose negligence has caused damage to another should be liable therefor. The second is that one whose negligence has contributed to his own injury should not be permitted to cast the burden of liability upon another.” 13 Cal 3d 822; 532 P2d 1239. Further the Legislature wished to hold out "the hope of recovery to the negligent plaintiff in some circumstances”. The only such technique available at the time, explained the Court, was last clear chance. 13 Cal 3d 822; 532 P2d 1239.
The 50 percent comparative negligence form in this context permits plaintiff to recover a proportion of the damages up to the point at which plaintiffs negligence is equal to or greater than that of defendant. Thus, a plaintiff whose negligence is greater than that of defendant is barred from recovery.
The Court quoted Prosser’s severe criticism:
"It is obvious that a slight difference in the proportionate fault may permit a recovery; and there has been much justified criticism of a rule under which a plaintiff who is charged with 49 percent of the total negligence recovers 51 percent of his damages, while one who is charged with 50 percent recovers nothing at all.” Prosser, Comparative Negligence, 41 Cal L Rev 1, 25 (1953), quoted at 13 Cal 3d 828; 532 P2d 1243.
The Court also quoted Juenger, Brief for Negligence Law Section of the State Bar of Michigan in Support of Comparative Negligence as Amicus Curiae, Parsonson v Construction Equipment Co, supra, 18 Wayne L Rev 3, 50 to the effect that "[t]he partial [50%] rule simply lowers, but does not eliminate, the bar of contributory negligence”. 13 Cal 3d 828; 532 P2d 1243.
Wisconsin has since changed its form of the 50 percent system to permit plaintiff to recover if his/her negligence is equal to or less than that of defendant; prior to the change the statute permitted recovery only if plaintiff was less negligent than defendant. Schwartz, Treatise, § 3.5(B), p 77.
Under this doctrine, the property damage in a maritime collision or stranding was divided equally among the parties involved whenever they were each contributorily negligent, regardless of the relative degree of their fault.
The Court also attacked a rationalization for the divided damages rule which has been utilized in attempting to justify contributory negligence.
"It is difficult to imagine any manner in which the divided damages rule would be more likely to 'induce care and vigilance’ than a comparative negligence rule that also penalizes wrongdoing, but in proportion to measure of fault. A rule that divides damages by degree of fault would seem better designed to induce care than the rule of equally divided damages, because it imposes the strongest deterrent upon the wrongful behavior that is most likely to harm others.” 421 US 405, fn 11.
Last clear chance, of course, is one such device serving this function in the area of contributory negligence.
See, eg., The City of New York, 147 US 72, 85; 13 S Ct 211; 37 L Ed 84 (1893).
“Where fault on the part of one vessel is established by uncontradicted testimony, and such fault is, of itself, sufficient to account for the disaster, it is not enough for such vessel to raise a doubt with regard to the management of the other vessel. There is some presumption at least adverse to its claim, and any reasonable doubt with regard to the propriety of the conduct of such other vessel should be resolved in its favor.”
See also The Victory & The Plymothian, 168 US 410; 18 S Ct 149; 42 L Ed 519 (1897); The Umbria, 166 US 404; 17 S Ct 610; 41 L Ed 1053 (1897); The Oregon, 158 US 186; 15 S Ct 804; 39 L Ed 943 (1895); The Ludvig Holberg, 157 US 60; 15 S Ct 477; 39 L Ed 620 (1895); United States v Reliable, supra, 421 US 406, fn 11.
Of course the same sort of criticism has been directed against last clear chance in its relation to contributory negligence.
"13 The rule of comparative negligence applicable to personal injury actions in our maritime law, see the Jones Act, 46 USC 688; Death on the High Seas Act, 46 USC 766, does not appear to discourage the negotiation of settlements in such litigation. It has been reported, for example, that of the marine personal injury cases involving a federal question that were terminated in fiscal year 1974, only 9.6% ever reached trial. 1974 Proceedings of the Judicial Conference of the United States and Annual Report of the Director of the Administrative Office of the United States Courts, Table C4, p 416.”
More accurately, in the case of Butterñeld, it was galloping horse versus stick in the road.
"Even if the contributory negligence rule were not clearly unnecessary in the industrial context, the standard it requires is incompatible with the age of the automobile. The coming of the automobile has increased the qualitative and quantitative injustice of the contributory negligence rule. The standard of care necessary for the safe operation of an automobile is much higher than that involved in the direction of a team of horses. The ordinary nineteenth-century man could easily live his life without ever being in a situation where a moment’s carelessness could cause a loss of the magnitude risked by present-day man every time he drives his car. Indeed the complexity of the instrumentalities of modern life combined with the speed with which decisions must be acted upon has led some to suggest that fault itself is an outmoded basis for liability. At least in those situations where danger must be perceived and avoided at a mile-a-minute rate, few involved in accidents can be said to be completely free from fault, and the injustice of the doctrine of contributory negligence is apparent”, Comment, Judicial Adoption of a Comparative Negligence Rule in Illinois, 1967 U Ill Law Forum 351, 354.
Of course, should it so desire, the Legislature has the power to reinstate contributory negligence or to modify this rule of comparative negligence.
Prosser reports that in pure comparative negligence jurisdictions one does not find 99% situations. Prosser, Comparative Negligence, 51 Mich L Rev 465, 494 (1953) ("[T]he writer has found no such cases.”)
"A person who violates one rule of law, even though it be for his own safety, is not for that reason an outlaw and deprived of the protection afibrded him by other rules of law designed for his benefit.” Green, Contributory Negligence and Proximate Cause, 6 NC L Rev 3, 5-6 (1927).
In a decision overturning as "perverse” a judgment for defendant under Wisconsin’s statute, based upon the jury’s finding of equal fault, Chief Justice Hallows wrote:
"Personally, the writer of this opinion thinks this case is another example of why the comparative negligence law of this state should be changed so that a plaintiff could recover although his negligence equaled or exceeded that of the defendant or defendants.” Spath v Sereda, 41 Wis 2d 448, 453; 164 NW2d 246, 248 (1969).
We also reject the form of comparative negligence which would require plaintiff to be more negligent than each defendant. The unfairness of this approach is exemplified if, for example, plaintiff and two other defendants were equally negligent. This rule would prevent plaintiff from recovering from any defendant, even though the others were, as a group, more negligent than plaintiff.
"The court may require the jury to return a special verdict in the form of a special written finding upon each issue of fact and in such cases no general verdict shall be returned.”
Amici briefs were submitted by the Association of Defense Trial Counsel, Michigan Trial Lawyers Association, Negligence Law Section, State Bar of Michigan, in opposition to comparative negligence, and Negligence Law Section, State Bar of Michigan, in support of comparative negligence.
"Perhaps the only safe conclusion is that too many people and too many accidents are the causes of court congestion and doctrines of law will neither raise nor lower the fever.” Brief for Amicus Curiae, Association of Defense Trial Counsel, Parsonson v Construction Equipment Co, supra, p 14. The amicus, after noting a study of the Arkansas experience which concluded that there was no drastic change in the court burden under two different comparative negligence statutes, and an editorial in the Milwaukee Journal complaining about the court docket (this was not restricted to the civil docket, nor was there any indication that there was a feeling that the negligence docket was greater than it would have been under contributory negligence) argued, "It is not the intention of this brief to enter this never-never land of assertion and counter-assertion for which reliable statistical verification is unavailable, but logic would indicate that more opportunity to collect for more people (under comparative negligence) would make for more claims.” Id, pp 12-13.
See also, Brief for Amicus Curiae, Negligence Law Section of the State Bar of Michigan in Opposition to Comparative Negligence, Parsonson v Construction Equipment Co, supra, especially pp 10, 22. The amicus emphasized that, like the experience under FELA, comparative negligence would result in more plaintiffs receiving some award. Further, amicus paraphrased United States Supreme Court Justice Powell’s observation (when he was an attorney) "if the contributory negligence rule is unfair to plaintiffs, the Mississippi rule of comparative negligence ["pure” comparative negligence] is equally unfair to defendants.” Id, p 10.
See Briefs for Amici Curiae, Parsonson v Construction Equipment Co, supra.
A survey of Federal court statistics reported that comparative negligence did not affect jury demands or influence the length of trials, nor did it affect the ratio of suits that were filed and reached trial (as opposed to those settled before the point of filing). Rosenberg, Comparative Negligence in Arkansas: A "Before and After” Survey, 36 NY State Bar J 457, 473-474 (1964).
The findings of the Rosenberg study, originally published in 1959 were reconfirmed by a follow-up study: Note, Comparative Negligence —A Survey of the Arkansas Experience, 22 Ark L Rev 692 (1969). Brief for Amicus Curiae, Michigan Trial Lawyers Association in Support of Comparative Negligence, Parsonson v Construction Equipment Co, supra.
However, it should also be noted that a past president of the Wisconsin bar reported that under comparative negligence the num ber of negligence cases tried "has been vastly decreased” and that the size of verdicts has not grown. Maloney, supra, 11 U Fla L Rev 163.
"Even though the undisputed evidence shows that plaintiffs negligence did as a fact contribute to the injury the jury may find in favor of the plaintiff and this court cannot direct a new trial.” Layton v Rocha, 90 Ariz 369, 370; 368 P2d 444, 445 (1962).
The brief quoted, "It is possible that comparative negligence has an effect upon insurance rates, but that that effect cannot be detected with the data on hand and the techniques used.” Peck, Comparative Negligence and Automobile Liability Insurance, 58 Mich L Rev 689, 728 (1960), quoted at p 15. The brief also reported that the ABA Special Committee on Automobile Accident Reparations concluded that if the Wisconsin modified form of comparative negligence is followed, "fewer cases will be denied any recovery, and the size of the award will be moderated. If it does not have a moderating effect, the result will be some increase in insurance costs”, Brief for Amicus Curiae, Association of Defense Counsel, Parsonson v Construction Equipment Co, supra, p 16.
Advocates of comparative negligence also complain “that insurance counsel who make this argument [that rates increase] fail to produce statistics to support their claims, although they are in the best position to obtain statistics as to whether the facts bear out their claims.” Maloney, supra, 11 U Fla L Rev 163.
The court there felt compelled to apply contributory negligence in the absence of legislative change of the contributory negligence doctrine.
This proclivity of the jury has apparently been substantiated by several studies. See, e.g., Kalven, Report on the Jury Project, Conference on Aims and Methods of Legal Research, 28, 30, 31 (U Mich Law School, 1955), cited in Maloney, From Contributory to Comparative Negligence: A Needed Law Reform, 11 U Fla L Rev 135, 144 (1958). Further, "[t]o the extent that other rules of law are relaxed to allow more cases to reach the jury, the chances of sub rosa apportioning of fault among all those responsible, rather than placing the entire burden on a contributorily negligent plaintiff, are likewise increased”. 11 U Fla L Rev 145.
And what about those cases tried by a judge, or where the court, as a matter of law, finds plaintiff was contributorily negligent?
This was discussed in oral argument before our Court in the instant case.
Eg., MCLA 500.3135; MSA 24.13135 provides:
"(1) A person remains subject to tort liability for noneconomic loss caused by his ownership, maintenance or use of a motor vehicle only if the injured person has suffered death, serious impairment of body function or permanent serious disfigurement.
"(2) Notwithstanding any other provision of law, tort liability arising from the ownership, maintenance or use within this state of a motor vehicle with respect to which the security required by subsections (3) and (4) of section 3101 was in effect is abolished except as to:
"(a) Intentionally caused harm to persons or property. Even though a person knows that harm to persons or property is substantially certain to be caused by his act or omission, he does not cause or suffer such harm intentionally if he acts or refrains from acting for the purpose of averting injury to any person, including himself, or for the purpose of averting damage to tangible property.
"(b) Damages for noneconomic loss as provided and limited in subsection (1).
"(c) Damages for allowable expenses, work loss and survivor’s loss as defined in sections 3107 to 3110 in excess of the daily, monthly and 3 year limitations contained in those sections. The party liable for damages is entitled to an exemption reducing his liability by the amount of taxes that would have been payable on account of income the injured person would have received if he had not been injured.” | [
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The cause is remanded to the Judicial Tenure Commission for such further proceedings as it deems appropriate if the respondent is convicted of criminal charges on retrial. The Supreme Court does not retain jurisdiction. | [
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Per Curiam.
The question posed in this case is whether the prosecutor’s cross-examination of the defendant mandates reversal of her conviction in light of People v Bobo, 390 Mich 355; 212 NW2d 190 (1973). Because we are persuaded that the principle espoused in Bobo was not contravened by the prosecutor’s cross-examination, we reinstate the defendant’s conviction of assault with intent to do great bodily harm less than murder.
I
The defendant was charged with assault with intent to murder in connection with the shooting of her son-in-law. At trial, the defendant testified as follows on direct examination:
"Q. Did there come a point in time where you ask [sic] him to leave?
"A Yes, sir, after he threatened me about a cannon and he also said that when he left my yard that he was going to Pontiac to kill other members of the family and so I asked him to leave.
”Q. Then what happened?
'A He refused to and he moved as though, I’m almost sure he was getting a gun and that’s when I fired my gun.
"Q. What exactly was going on in your mind?
"A I was thinking of the children into the house that was in danger and that’s exactly — I did not intend to kill the man. I was trying to protect the children into the house that he had been so desperately trying to kill, how do I explain, just a minute. At that particular moment I only did what I thought I had to do to maintain the peace, so my family would not get hurt.
"Q. Were you afraid at that point in time that he was going to do harm to you and your family?
"A Yes.
"Q. And did — was it at that time that he made a movement, is that the time that you thought he was going for a gun?
"A. Yes, I was positive of it.
"Q. Where did you think the gun was?
"A. In the back where he always hid it before.
”Q. Had you seen it there before on prior occasions?
'A. Yes.
"Q. Was it your intent to kill him at that time?
"A. No, sir.
”Q. Was it your intent to inflict great bodily harm to him?
'A. I was trying to shoot a warning shot, he moved over in front of it.”
Thus the deféndant’s testimony on direct examination was that she thought her son-in-law was going to get a gun.
Two days after the assault occurred the defendant gave a statement to the Michigan State Police in which she alleged that at the time she shot she believed that her son-in-law was going to get a metal stake used to chain a dog. No mention of a gun was made.
The prosecutor explored this conflict on cross-examination:
"Q. Do you recall during that statement saying anything to Mr. Wolner concerning a gun?
"A No, Ma’am.
"Q. Aside from this rifle?
"A. No, Ma’am.
"Q. Did you say anything to Detective Sergeant Wolner on June 20th about a gun or about Mr. Hmeidan having a gun?
"A. No, Ma’am.
"Q. You did not say anything to him on that day about Mr. Hmeidan having a gun?
'A. That’s right.
"Q. Did you say anything to Mr. Wolner on that day about Mr. Hmeidan having a weapon?
'A. I said he was after a weapon.
”Q. You stated that you thought that he was after a weapon, is that correct?
"A. Yes.
"Q. And when you made that statement, when you made the statement to Detective Wolner on that date as to where you thought that weapon was located and what you thought that weapon was?
"A. Yes, Ma’am.
"Q. Do you recall what you said to Detective Wolner concerning that weapon it was that you thought Mr. Hmeidan was after?
'A. Yes, Ma’am.
”Q. All right, and what weapon was it?
"A. A steel dog stake.”
The issue was further developed as follows:
”Q. And you told the State Police about this dog stake, this dog stake, whatever you call it?
"A. Yes, Ma’am.
”Q. You told them about that on June 20th.
"A. Yes, Ma’am.
"Q. But you didn’t make any mention about a gun on that date, did you?
'A. No, Ma’am.
"Q. You didn’t make any mention of seeing Basim Hmeidan with a gun?
'’A, No, Ma’am, nothing.
"Q. You did think to say that you were worried about —the only reason you gave was that your worry was this dog staké that was over on the left-hand side of the porch, is that correct?
’A. No, that’s not correct.
”Q. You didn’t mention a gun, right?
"A. Right.”
The defendant’s failure to mention the gun was reiterated by the prosecutor in closing argument. There was no objection lodged by the defendant either to the prosecutor’s cross-examination on this point or to her closing argument in this regard.
The Court of Appeals concluded that the above-quoted cross-examination of the defendant warranted reversal of the defendant’s conviction under People v Bobo, 390 Mich 355; 212 NW2d 190 (1973).
II
In People v Bobo we held that:
"We will not condone conduct which directly or indirectly restricts the exercise of the constitutional right to remain silent in the face of accusation. 'Nonutterances’ are not statements. The fact that a witness did not make a statement may be shown only to contradict his assertion that he did.” 390 Mich 355, 359.
In People v Bobo there was an attempt to introduce evidence that, when arrested, the defendant made no statement. Here the defendant had made a statement which conflicted with her testimony at trial. Thus here the prosecutor was not attempting to use an accused’s silence at the time of arrest to impeach an explanation subsequently given at trial.
The situation in the instant case is similar to one confronted by the United States Supreme Court in Anderson v Charles, 447 US 404; 100 S Ct 2180; 65 L Ed 2d 222 (1980). In that case, the defendant had indicated at the time of his arrest that he had stolen a car at a particular location. At trial, however, the defendant testified that he stole the car at a different location. The prosecutor cross-examined him at trial concerning this discrepancy. The United States Supreme Court found no infringement upon the defendant’s exercise of his constitutional right to remain silent. The Court held:
"Doyle [v Ohio, 426 US 610; 96 S Ct 2240; 49 L Ed 2d 91 (1976)] bars the use against a criminal defendant of silence maintained after receipt of governmental assurances. But Doyle does not apply to cross-examination that merely inquires into prior inconsistent statements. Such questioning makes no unfair use of silence, because a defendant who voluntarily speaks after receiving Miranda [v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694 (1966)] warnings has not been induced to remain silent. As to the subject matter of his statements, the defendant has not remained silent at all.”
The parallel between the situation in Anderson v Charles and that present in the case at bar is manifest.
We conclude that the cross-examination of the defendant with regard to her prior inconsistent statement was permissible.
Accordingly, pursuant to GCR 1963, 853.2(4), in lieu of granting leave to appeal, we reverse the judgment of the Court of Appeals and we reinstate defendant’s conviction of assault with intent to do great bodily harm less than murder.
Coleman, C.J., and Kavanagh, Williams, Levin, Fitzgerald, Ryan, and Blair Moody, Jr., JJ., concurred. | [
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Fitzgerald, J.
Plaintiff Continental Oil Company and defendant Citizens Trust and Savings Bank each believes it has a superior secured interest in inventory, proceeds, and accounts receivable belonging to Blossom Trail Growers, Inc., formerly named South Haven Fruit Exchange. The question presented is whether Citizens Bank, as the holder of a prior secured interest against South Haven, had an affirmative duty to amend or refile its financing statement to reflect the name change from South Haven Fruit Exchange to Blossom Trail Growers, Inc., in order to preserve its superior interest over Continental Oil Company, a subsequent creditor which had perfected its security interest against Blossom Trail Growers, Inc. We find no such duty and affirm the Court of Appeals.
On May 12, 1964, South Haven Fruit Exchange, in order to obtain a loan, granted Citizens Bank a security interest in its inventory, "whether now owned, or hereafter acquired”. South Haven then executed a general assignment of present accounts receivable, "together with all future book accounts, notes receivable, and all moneys payable thereon, and amounts due under any contract entered into by the assignor, that may be or hereafter become due or owing to the assignor from any corporation, person, or persons”. This interest was perfected by filing with the Van Burén County Register of Deeds on May 19, 1964, and the Secretary of State on June 6, 1964.
On June 9, 1966, South Haven Fruit Exchange amended its articles of incorporation by changing its corporate name to Blossom Trail Growers, Inc. Copies of the amended articles were filed with the Department of Commerce and the Van Burén County Clerk. Two years later, Agrico Chemical Company, a subsidiary of Continental Oil, agreed to provide Blossom Trail with products for resale to others. An agreement was executed giving Agrico a security interest covering "all present and future inventory of debtor * * * and all proceeds, including accounts receivable, notes receiva ble * * * from sale or disposition”. This security interest was perfected by the proper filing of a financing statement.
Blossom Trail encountered financial difficulties and, sometime in 1969, filed a voluntary petition in bankruptcy. Citizens Bank, having on deposit in Blossom Trail’s account the sum of $10,777.15 representing the proceeds from the sale of fertilizer and plant food, used these funds to set off the amount of Blossom Trail’s unpaid debt.
Plaintiff Continental Oil filed a complaint seeking a judgment in the amount of $10,777.15, alleging that defendant Citizens Bank unlawfully converted assets subject to a security agreement in favor of plaintiff given by Blossom Trail. Following defendant’s amended answer, plaintiff moved for summary judgment on the grounds that defendant had failed to state a valid defense and that there was no genuine issue as to any material fact. The circuit judge, however, granted a summary judgment to defendant, determining that the interest of Citizens Bank prevailed over that of Continental Oil because there existed no requirement that a secured creditor amend its financing statement when a debtor changed its name. Following denial of rehearing, the Court of Appeals affirmed and we granted leave to appeal.
Plaintiff agrees with the circuit court that the priority of security interest in the same collateral is determined by the date upon which the financing statement is filed. Conceding that defendant was the first to file, plaintiff argues that this general rule should not apply where a secured creditor "knew, or should have known, of the debtor’s change of name”. This knowledge, plaintiff asserts, was imputed to Citizens Bank as that of one of its officers, John M. Thomas, who also served as a director and treasurer of Blossom Trail Growers, Inc., when the articles of incorporation were amended to reflect the change of name. Though the statutory provisions are silent as to whether secured creditors must amend or refile financing statements following a debtor’s name change, plaintiff urges that principles of equity and estoppel should be invoked to protect such creditors who have extended secured loans with a good-faith belief that no prior secured creditors existed.
We agree with the Court of Appeals decision and adopt completely the analysis which distinguishes between those situations involving names of debtors appearing on the financing statement which are misleading ab initio and those involving a subsequent name change which differs from the name appearing on the original filing statement. Whether a name is "seriously misleading” is significant because financing statements are indexed according to the debtor’s name. However, no statutory provisions require that a financial statement be amended or refiled when a debtor undergoes a subsequent name change. The Court of Appeals addressed this point persuasively in stating:
"[T]here is no specific requirement in any section of the UCC that a secured party refile a financing statement to reflect the debtor’s change of names. In fact, the drafters of Article 9 have proposed an amendment to § 9-402 which, in proposed (7) would state:
" 'Where the debtor so changes his name or in the case of an organization its name, identity or corporate structure that a filed financing statement becomes seriously misleading, the filing is not effective to perfect a security interest in collateral acquired by the debtor more than four months after the change, unless a new appropriate financing statement is filed before the expiration of that time.’ UCC Rep Serv, Current Materials, Uniform Code, Appendix-Article 9, Revised Article 9 of the Uniform Commercial Code (1972), pp 130-131.
"This change is proposed to provide guidelines when name change occurs 'with the result that a filed financing statement might become seriously misleading’. UCC Rep Serv, Current Materials, Uniform Code, Appendix-Article 9, Revised Article 9 of the Uniform Commercial Code (1972), 1972 Comment to § 9-402, p 135. The very fact that this amendment is proposed is recognition that custom and usage of the current commercial world do not require a refiling. Defendant, as part of the commercial marketplace, is reasonably entitled to rely upon the prevailing practice and, until the legislature changes the law, should not be required to do that which was not the practice of the marketplace.”
We decline to engraft a court-established requirement upon the provisions of the UCC which regulate commercial transactions within the marketplace. We leave such action to the Legislature, should it choose to do so.
It is the alleged actual knowledge of Citizens Bank regarding the name change that Continental Oil believes is most compelling in requiring Citizens Bank to amend or refile its financing statement. While we appreciate the need to discourage the creation of "secret liens” which a potential creditor or purchaser could not locate by a diligent search of the financing statement on file, it is not within the province of this Court to create requirements which go beyond the established practices of the marketplace. See, In re Pasco Sales, Inc, 77 Misc 2d 724; 354 NYS2d 402 (1974); In re GAC, 11 UCC Rep Serv 412 (WD Mich, 1972); In re The Grape Arbor, Inc, 6 UCC Rep Serv 632 (ED Pa, 1969); In re Kalamazoo Steel Process, Inc, 503 F2d 1218 (CA 6, 1974).
Affirmed. Costs to appellee.
Levin, Coleman, and Lindemer, JJ., concurred with Fitzgerald, J.
Ryan, J., took no part in the decision of this case.
Williams, J.
(for reversal). This case presents the question whether a secured creditor who has actual knowledge of a change in its debtor’s name, where that change is seriously misleading to potential future creditors or customers of the debtor, is required to make a good faith attempt to refile or amend its financing statement to reflect the name change in order to preserve the perfection of its security interest. We find that such a secured creditor has that duty and reverse the Court of Appeals and the trial court.
I — Facts
In May of 1964, South Haven Fruit Exchange granted defendant Citizens Trust and Savings Bank a security interest in its inventory "whether now owned, or hereafter acquired” for purposes of securing a loan. South Haven further assigned to Citizens Trust its accounts receivable, "future book accounts, notes receivable, and all monies payable thereon, and amounts due under any contracts entered into by the assignor, that may be or hereafter become due or owing to the assignor from any corporation, person, or persons”.
Citizens Trust’s interest was perfected through proper filing with the Van Burén County Register of Deeds and the Secretary of State.
In June of 1966, debtor South Haven Fruit Exchange amended its articles of incorporation to change its corporate name to Blossom Trail Growers, Inc. The financing statement was not refiled or amended to reflect the name change, although financial statements are indexed according to the debtor’s name, and therefore potential creditors of Blossom Trail would find no record of Citizens Trust’s security interest in spite of a diligent search of the index.
One of the officers of Citizens Trust, John M. Thomas, also served as a director and treasurer of South Haven when the corporate name was changed, and thus obviously knew of the change.
In January of 1968, Agrico Chemical Company, a subsidiary of plaintiff Continental Oil, agreed to provide its products to Blossom Trail for resale. Pursuant to this agreement, plaintiff and Blossom Trail executed a security agreement giving plaintiff a secured interest in "all present and future inventory of Debtor * * * and all proceeds, including accounts receivable, notes receivable * * * from sale or disposition”. This security interest in Blossom Trail’s property was also properly perfected through the filing of a financing statement.
In 1969, Blossom Trail filed a voluntary petition in bankruptcy. Shortly thereafter, Citizens Trust, in which debtor had deposited certain proceeds, set off the sum of $10,777.15 to settle the debt which had arisen with debtor in 1964 as described above.
Continental Oil filed suit against Citizens Trust for conversion of assets subject to its security agreement with Blossom Trail. Plaintiff moved for a summary judgment, asserting that defendant had failed to state a valid defense and that there was no genuine issue as to any material fact. However, the trial court rendered summary judgment for defendant, and the Court of Appeals affirmed. We granted leave to appeal.
II —Duty Under the Code of a Secured Creditor Where the Debtor Subsequently Changes Its Name
a) Duty Imposed Under MCLA 440.9402; MSA 19.9402.
The formal requisites for perfection of a security interest through the filing of a financing statement are laid out in MCLA 440.9402; MSA 19.9402, which reads in pertinent part as follows:
"(1) A financing statement is sufficient if it is signed by the debtor and the secured party, gives an address of the secured party from which information concerning the security interest may be obtained, gives a mailing address of the debtor and contains a statement indicating the types, or describing the items, of collateral. * * * A copy of the security agreement is sufficient as a financing statement if it contains the above information and is signed by both parties.”
Through this provision, the drafters of the Uniform Commercial Code adopted a "simplified and workable filing system” known as "notice filing”. The central purposes of notice filing as expressed in the Official UCC Comment to article 9, § 9-402, is to require enough facts in the financing statement to notify potential future creditors of the debtor or potential purchasers of the collateral of the possible interest of the secured creditor:
"What is required to be filed is not * * * the security agreement itself, but only a simple notice which may be filed before the security interest attaches or thereafter. The notice itself indicates merely that the secured party who has filed may have a security interest in the collateral described. Further inquiry from the parties concerned will be necessary to disclose the complete state of affairs.”
Under MCLA 440.9402(5), MSA 19.9402(5) the validity of the financing statement is dependent on whether it is seriously misleading, that is, whether it serves this central purpose of providing simple notice to third parties of the possible interest of the secured creditor, which would lead interested parties to inquire further to get the full picture.
However, a financing statement will not notify interested third parties of the possible interest of a secured creditor in the property of the debtor unless it is properly filed under the debtor’s name. This is so because under MCLA 440.9403(4); MSA 19.9403(4), financing statements are to be indexed according to the debtor’s name.
Thus, for example, after the debtor’s name had been changed from South Haven Fruit Exchange to Blossom Trail Growers, Inc., in the instant case, a potential creditor of the debtor would check the index under the name Blossom Trail Growers, Inc., and would receive no notice whatsoever of a secured interest in debtor’s property previously filed in a financing statement under the name South Haven Fruit Exchange. Nor would this potential creditor find anything in this search of the index to signal the need for further inquiry.
In such a situation, a secured creditor who is aware of the name change, and who therefore knows that its financing statement no longer provides even the simple notice required by MCLA 440.9402; MSA 19.9402 should no longer receive the protection of that financing statement unless there is a good faith attempt to refile or amend the financing statement so that there is once again substantial compliance with the requirements of the statute.
In the instant case, Citizen’s Trust, which had actual knowledge of the debtor’s name change, argues that MCLA 440.9402; MSA 19.9402 does not expressly require that a secured creditor refile, or amend its financing statement where there is a subsequent change in the name of the debtor which would be seriously misleading.
However, the drafters of the code foresaw that it was impossible to articulate in express language all the rights and duties of parties which would arise from unforeseen circumstances, and specifically, directed that the code "be liberally construed and applied to promote its underlying purposes and policies”. See MCLA 440.1102; MSA 19.1102.
The Official UCC Comment to article 1, § 1-102 elaborates on this directive as follows:
"This Act is drawn to provide flexibility so that, since it is intended to be a semi-permanent piece of legislation, it will provide its own machinery for expansion of commercial practices. It is intended to make it possible for the law embodied in this Act to be developed by the courts in the light of unforeseen and new circumstances and practices. However, the proper construction of the Act requires that its interpretation and application be limited to its reason.
'The Act should be construed in accordance with its underlying purposes and policies. The text of each section should be read in the light of the purpose and policy of the rule or principle in question, as also of the Act as a whole, and the application of the language should be construed narrowly or broadly, as the case may be, in conformity with the purposes and policies involved. ”(Emphasis added.)
A secured party who has actual knowledge of a debtor’s name change which has the effect of creating a secret lien, who does not attempt to refile or amend the financing statement is obviously thwarting the purpose of the statute.
The obvious purpose of MCLA 440.9402; MSA 19.9402 is to ensure that financing statements serve to provide simple notice to third parties of the potential prior security interest in the property of the debtor. Thus, our conclusion today is clearly within the mandates of MCLA 440.1102; MSA 19.1102. Moreover, a contrary conclusion would disrupt the simple and workable filing system envisioned by the drafters of the code, and create unnecessary uncertainty and delay in the contracting of security agreements to secure the loans which are often so vital to success in the business world.
b) Duty Imposed Under MCLA 440.1203; MSA 19.1203.
A secured creditor who has actual knowledge of a debtor’s name change which creates a secret lien is also under a duty to attempt to refile or amend its financing statement under MCLA 440.1203; MSA 19.1203.
This provision states that "[e]very contract or duty within this act imposes an obligation of good faith in its performance or enforcement”. This duty of good faith constitutes "a basic principle running throughout this Act”. Official UCC Comment to article 1, § 1-203.
Significantly, a breach of good faith can alter which party has priority in a dispute under article 9 of the code. Thompson v United States, 408 F2d 1075, 1084 (CA 8, 1969).
In the instant dispute under article 9, the duty of good faith imposed an obligation on Citizens Trust to attempt to refile or amend its financing statement where it had actual knowledge of the creation of a secret lien which was contrary to the purposes of the filing requirements in MCLA 440.9402; MSA 19.9402.
Citizens Trust breached this good faith duty and is not entitled to priority under the secret lien resulting from its breach. Through Mr. Thomas, who was an officer of both Citizens Trust and South Haven Fruit Exchange at the time of the name change, Citizens Trust had actual knowledge of the debtor’s name change. That name change assured that a diligent search of the index of financing statements by Continental Oil would not bring to light Blossom Trail’s prior security agreement with Citizens Trust.
In spite of Citizens Trust’s knowledge of the secret lien, and in spite of the fact that there would be no great burden in moving to refile or amend its financing statement, Citizens Trust did nothing, and allowed Continental Oil to fall victim to the secret lien. In the light of these facts, we conclude that Citizens Trust breached the duty of good faith imposed by MCLA 440.1203; MSA 19.1203, and lost the priority to which it had previously been entitled.
In sum then, given the notice requirements of MCLA 440.9402; MSA 19.9402 and the good faith requirement of MCLA 440.1203; MSA 19.1203, we hold that where a secured creditor has actual knowledge of a change in the debtor’s name, and where that change is seriously misleading, the secured creditor is required to make a good faith attempt to refile or amend the financing statement to reflect the change of name in order to preserve its perfected security interest.
Ill — Pertinent Cases
We reach this conclusion aware that relevant case authority is limited and conflicting. On the one hand, there is a line of cases which apply the "good faith” approach taken here today. In In re Vieths, Inc, 9 UCC Rep Serv 943 (ED Wis, 1971), the debtor was an individual named Kuhn who did business under the trade name Vieth’s. The financing statement was filed under the name Kuhn only. At a later time, debtor incorporated his business as Vieth’s, Inc., and transferred the col lateral to the corporation. The secured party knew of these transactions, but did nothing to remedy this creation of a secret lien.
The referee held that because the secured party, a bank, had full knowledge of the incorporation and transfer of assets which resulted in a secret lien, it was required to file a new financing statement under the corporation’s name in order to preserve its perfected lien.
In In re Kalamazoo Steel Process; Inc, 503 F2d 1218 (CA 6, 1974), both parties entered the security agreement with the intention of taking on another name at a later time. However, the financing statement was filed under the name of the debtor at the time of the security agreement, and did not reflect the intended name change. Relying heavily on the good faith obligation laid out in MCLA 440.1203, the Sixth Circuit held that the secured creditor had not perfected its interest:
"In the present case, once the debtor changed its name from Roman Industrial Corporation to Kalamazoo Steel Process, a diligent search of the index of financing statements in the office of the Secretary of State would not have disclosed the prior lien. We are persuaded that H. O. U. lost its perfected security interest in the collateral of the debtor when its name was changed to Kalamazoo Steel Process. When a secured party has knowledge at the time the security agreement is executed that the debtor intends to change its name, and the new name is known to him, the secured party must act in good faith to insure that the filing under the Code not only discloses the current and correct name of the debtor but also reflects the pending name change of which the parties are aware.” 503 F2d 1218, 1221-1222.
Kalamazoo in this quotation elucidates the reason and the conclusion of the opinion:
1. A substantial change in name vitiates notice because the index system cannot work to give notice.
2. A secured person who has knowledge of such change must in good faith insure a filing that does give notice.
It so happened that in Kalamazoo the secured party had knowledge at the time of execution of the original security agreement, but that fortuitous situation changes neither the reason nor the necessary conclusion therefrom. Consequently, the rule can validly be stated that whenever a secured party has knowledge of a change in name of the debtor so substantial that the index will not disclose the filing that would give notice, the secured party must in good faith attempt to insure a new or amended filing that will give notice.
Finally, In re Conger Printing Co, Inc., 18 UCC Rep Serv 224 (D Or, 1975), involved the sale of a business where the seller and the secured party agreed to surrender the name of the corporation to the debtor and that the debtor could incorporate the business and transfer the collateral and the name to the new corporation. The financing statement listed the corporate name as the secured party and the personal name of the buyer as the debtor. The secured party knew that the buyer intended to transfer the collateral and assume the corporate name, but did not have knowledge that these transactions actually took place. The court found that the secured party’s interest was not perfected:
"The secured party had a duty to anticipate in the financing statement that the authorized transfer [of collateral to the new corporation] may be made, to inquire if it had been made, and to file a financing statement designating the bankrupt [corporation] as the ultimate debtor. This duty neither ceased nor was satisfied when he filed the financing statements which named only an interim debtor. Under these circumstances, the secured party could not escape this responsibility which is imposed by ORS 71.2030 and ORS 79.4020(1) by filing the initial financing statement with the county in the name of Mr. Lavell [the buyer], and by later closing his eyes, when he had a duty to look and a duty to insure that the financing statements were not misleading.” 18 UCC Rep Serv 224, 229.
Kalamazoo Steel Process and Conger Printing are somewhat distinguishable from the instant case in that the secured parties knew of the intended name change at the time of the filing of the financing statements. However, we can see no reason why the policy of preventing secret liens manifest in MCLA 440.9402; MSA 19.9402 and the good faith obligation set out in MCLA 440.1203; MSA 19.1203 should not require the same result where the secured party has actual knowledge of a subsequent change in the debtor’s name, and where that name change is "seriously misleading”.
My Brother Fitzgerald relies on another line of authority which we do not believe carries out the intent of MCLA 440.9402; MSA 19.9402 and MCLA 440.1203; MSA 19.1203. In re The Grape Arbor, Inc, 6 UCC Rep Serv 632 (ED Pa, 1969), involves a change in the debtor’s name which occurred after the filing of the financing statement. The secured creditor did not refile or amend the financing statement, and yet the court held that its security remained perfected. However, in that case, the secured party was unaware of the debtor’s name change, making it clearly distinguishable from the instant case.
The leading case supporting defendant’s position is In re GAC, 11 UCC Rep Serv 412 (WD Mich, 1972). In this case, the court held that the secured party was under no duty to refile its financing statement even where it was aware of the debtor’s name change.
The rationale of the court in GAC is unpersuasive, however, for reasons outlined in a recent law review analysis of the case. The court reasoned first that the secured party should not be burdened with the requirement of proving a negative, i.e., lack of knowledge. However, this argument is easily met by requiring that the party seeking to avoid the security interest carry the burden of proving the actual knowledge of the secured party.
Second, the court argued that it might be impossible to obtain a new financing statement, since the debtor must sign such a statement, and might be uncooperative. However, the good faith standard would protect the secured party in such a situation, for if there was a good faith effort by the secured party to refile, its perfected security interest would be preserved, whether this effort was successful or not.
Finally, the court asserted that inquiring parties were under a duty to inquire about any prior name change of debtor. Such an assertion is contrary to the central concept that it is the financing statement which is intended to put file searchers on inquiry. There should be no requirement to search outside the filing office unless there is something in the filing which would put the interested party on notice of the need for further inquiry. See The Effect of Errors & Changes in the Debtor’s Name on Article Nine Security Interests, fn 7 supra; White & Summers, Handbook of the Law Under the Uniform Commercial Code (1972), § 23-16, p 833; Coogan, Public Notice under the Uniform Commercial Code & Other Recent Chattel Security Laws, Including "Notice Filing”, 47 Iowa L Rev 289, 318, fn 100 (1962); In re Kalamazoo Steel Process, Inc, supra, at 1224.
In re Pasco Sales Co, Inc, 77 Misc 2d 724; 354 NYS2d 402; 14 UCC Rep Serv 1059 (1974), follows GAC in holding that there is no duty on the part of the secured party to refile even where it had knowledge of the name change, and is subject to the same criticism outlined above. It is also notable that the court apparently did not consider the possible effect of the good faith provision in § 1-203, for this provision is not even mentioned in the opinion.
The GAC approach is at odds with the notice requirements of MCLA 440.9402; MSA 19.9402; the rule of liberal construction mandated by MCLA 440.1102; MSA 19.1102; and the duty of good faith imposed by MCLA 440.1203; MSA 19.1203. We unequivocally reject that approach.
My Brother Fitzgerald suggests that we leave it to the Legislature to remedy the problem of the secret lien created by a change in the debtor’s name. Specifically, he points to an amendment to article 9, 9-402 of the UCC proposed by the drafters of the code in 1972:
"Where the debtor so changes his name or in the case of an organization its name, identity or corporate structure that a filed financing statement becomes seriously misleading, the filing is not effective to perfect a security interest in collateral acquired by the debtor more than four months after the change, unless a new appropriate financing statement is filed before the expiration of that time.” UCC Rep Serv, Current Materials, Uniform Code, Appendix-Article 9, Revised Article 9 of the Uniform Commercial Code (1972), pp 130-131.
In response, it should be noted that this proposal is much broader than the good faith approach outlined here. Under the terms of the 1972 proposal, all secured creditors would in effect be required to determine every four months whether its debtor had changed its name, identity, or corporate structure, and refile or amend the financing statement if there was such a change.
Under the good faith approach, the only duty imposed falls upon secured creditors with actual knowledge of a seriously misleading name change. Only in these circumstances is the secured creditor obliged to attempt to refile or amend its financing statement.
The 1972 proposal, which would place a burden on all secured creditors to check for changes in the names of their debtors, is clearly beyond the present scope of MCLA 440.9402; MSA 19.9402. The good faith approach, however, is required by the purposes and mandates of MCLA 440.9402; MSA 19.9402 and MCLA 440.1203; MSA 19.1203 as they presently stand. In taking this approach, we simply fulfill our duty to interpret the intent of the drafters of the code through an examination of the language of the statutes before us. There is no interference here with the right of the Legislature to expand the duty of secured creditors by enacting the 1972 proposal.
In point of fact, however, the Legislature has for the time being seemingly rejected the more bur densome approach of the 1972 proposal. The Legislature recently passed 1976 PA 27 which amended various sections of article 9. While the 1972 proposed amendment to MCLA 440.9402; MSA 19.9402 was originally part of 1976 PA 27, it was deleted from the enactment before passage.
IV — Conclusion
We hold that where a secured creditor has actual knowledge of a change in the debtor’s name, and where that change is seriously misleading, the secured creditor is required to make a good faith attempt to refile or amend the financing statement to reflect the change of name in order to preserve its security interest. The Court of Appeals and the trial court are reversed.
Kavanagh, C. J., concurred with Williams, J.
MCLA 440.9303; MSA 19.9303.
The term which appears in MCLA 440.9402(5); MSA 19.9402(5). The provision states: "A financing statement substantially complying with the requirements of this section is effective even though it contains minor errors which are not seriously misleading.”
MCLA 440.9403(4); MSA 19.9403(4).
57 Mich App 1, 8-9; 225 NW2d 209, 212-213 (1974).
See Official UCC Comment to article 9, § 9-402. See MCLA 440.9402.
Subsection (5) reads as follows:
"A financing statement substantially complying with the requirements of this section is effective even though it contains minor errors which are not seriously misleading. "(Emphasis added.)
MCLA 440.9403(4); MSA 19.9403(4) provides in pertinent part:
"In addition the filing officer shall index the statements according to the name of the debtor and shall note in the index the file number and the address of the debtor given in the statement.”
The drastic nature of the change in the debtor’s name here clearly distinguishes this case from those cases where there is a relatively minor error in the filing of the debtor’s name or a minor change in the debtor’s name. See, for example, In re Excel Stores, Inc, 341 F2d 961 (CA 2, 1965), where the debtor’s name was inaccurately listed as “Excel Department Stores” rather than under the correct name, "Excel Stores, Inc”. See also In re Sofa Centre, Inc, 18 UCC Rep Serv 536 (MD Fla, 1975); In the Matter of Carl Lee McCoy, 330 F Supp 533 (D Kansas, 1971).
The new financing statement must be signed by the debtor, so it is possible, though seemingly improbable, that the secured creditor could not refile or amend the financing statement if the debtor was uncooperative. In such circumstances, a good faith attempt would be sufficient to preserve the secured creditor’s perfected security interest.
The court in Thompson held as follows:
"We hold that Code § 85-1-203 permits the consideration of the lack of good faith * * * to alter priorities which otherwise would be determined under Article 9.”
The author of Note, The Effect of Errors and Changes in the Debtor’s Name on Article Nine Security Interests, 1975 Duke L J 148 (1975), agrees with this analysis. In discussing Kalamazoo Steel Process, he states as follows:
“Although the court was careful to emphasize that its decision did not reach the situation where the secured party learns of the new name after filing the financing statement, its sensitivity to the need for an accurate identification of the debtor and its conception of good faith as at times requiring affirmative action on the part of the secured party strongly indicate that a similar good faith test would be applied in the G[AC]situation.” 1975 Duke L J 148, 158.
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Petitioner’s complaint in the nature of mandamus is denied.
Kavanagh, C. J., would grant mandamus. | [
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Request for appointment of counsel granted. Defendant shall file with Wexford Circuit Court an affidavit concerning his present financial status (see guidelines at 387 Mich xxxi). The prosecutor shall be furnished a copy of the financial affidavit and may challenge defendant’s asserted indigency within 20 days after receiving the affidavit. The challenge, if brought, shall be resolved at a hearing before Wexford Circuit Court at which the prosecution, defendant, and the State Appellate Defender shall appear personally to aid the Court’s inquiry. Wexford Circuit Court, upon a finding of indigency, shall appoint the State Appellate Defender and shall furnish any portion of the record counsel may require. | [
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Williams, J.
In People v White, 390 Mich 245, 255; 212 NW2d 222 (1973), this Court, following the lead of other jurisdictions, adopted the "same transaction” test as the proper standard to be applied in examining a claim of double jeopardy. We adopted this test because it "provides the only meaningful approach to the constitutional protection against being placed twice in jeopardy”, supra, 257-258.
The cases now before this Court require us to examine the parameters of the same transaction test. This is by no means an easy task. As Justice Brennan admitted in calling for the adoption of the same transaction test, "the phrase 'same transaction’ is not self-defining”. Ashe v Swenson, 397 US 436, 454, fn 8; 90 S Ct 1189; 25 L Ed 2d 469 (1970) (Brennan, J., concurring). However, the task can be accomplished in such a way that the constitutional rights of the criminal defendant will be protected without reaching anomalous or absurd results.
In this opinion we will explore the purposes behind the adoption of the same transaction test, examine how other jurisdictions have developed the concept of the same transaction, set forth criteria for determining whether crimes arise out of the same transaction and apply that standard to the facts of the four cases before us.
I — Purpose Behind Adoption of Same Transaction Test
In seeking to establish the proper parameters of the same transaction test we must be mindful of the purposes behind adopting the rule. We expressed the view in White that the use of the same transaction test would promote both "the best interests of justice arid sound judicial administration”. 390 Mich 258. Indeed, economical and expeditious administration of justice will result from use of this test, but as we emphasized in White, "our primary objective in adopting the same transaction test is to ensure that a criminal defendant receives meaningful protection under the double jeopardy clause”. 390 Mich 258, fn 6. We observed:
"A far more basic reason for adopting the same transaction test is to prevent harassment of a defendant. The joining of all charges arising out of the same criminal episode at one trial ' * * * will enable a defendant to consider the matter closed and save the costs of redundant litigation.’ It will also help ' * * * to equalize the adversary capabilities of grossly unequal litigants’ and prevent prosecutorial sentence shopping. 'In doing so, it recognizes that the prohibition of double jeopardy is for the defendant’s protection.’ 41 Mich App 370, 378; 200 NW2d 326, 330 (1972).” 390 Mich 258-259.
It is the protection of the defendant from the possibility of prosecutorial harassment which was foremost in our minds when we adopted the same transaction test and this is the principle which must be kept in mind as we give substance to the phrase, the same transaction.
II — Same Transaction — Intent Crimes— White Applies
White dealt with a series of offenses all of which involved crimes where criminal intent was an element of the crime. In White, this Court said:
"[T]here can be no doubt that the three crimes committed by defendant were all part of a single criminal transaction. The crimes were committed in a continuous time sequence and display a single intent and goal —sexual intercourse with complainant.” (Emphasis added.) 390 Mich 245, 259.
This was the criterion that case established:
"a continuous time sequence and display [of] a single intent and goal.”
This criterion provides a generally workable test to apply in most instances to determine whether a single transaction exists vis-á-vis double jeopardy if all the activities involve crimes where criminal intent is an element. We accept that as the criterion which must be applied in all cases where only intent crimes are in question.
Ill — Same Transaction — No-Intent Crimes
Where a series of offenses involve either no intent crimes or intent and no-intent crimes, the criterion in White does not provide a wholly workable test. The cases with which this opinion deals involve such fact situations. Our task therefore is to formulate an appropriate criterion to test them in the spirit of White.
The American Law Institute Model Penal Code seeks to prevent successive prosecutions where offenses are part of the same criminal episode. Section 1.07(2) (Proposed Official Draft, 1962) provides in pertinent part:
"A defendant shall not be subject to separate trials for multiple offenses based on the same conduct or arising from the same criminal episode, if such offenses are known to the appropriate prosecuting officer at the time of the commencement of the first trial and are within the jurisdiction of a single court.”
In Commonwealth v Campana, 452 Pa 233, 253; 304 A2d 432 (1973), the Pennsylvania Supreme Court, citing the Model Penal Code with approval, held that:
"The Double Jeopardy Clause requires a prosecutor to bring, in a single proceeding, all known charges against a defendant arising from a 'single criminal episode.’ ” (Footnote omitted.)
The White quotation used above in part I makes use of the term "criminal episode” as follows:
"The joining of all charges arising out of the same criminal episode ' * * * will enable a defendant to consider the matter closed and save the cost of redundant litigation.’ ” 290 Mich 259.
Utilization of this term therefore will comport with language already employed in White.
Both Hawaii and New York have an approach to the problem at hand that suggests another useful criterion. In State v Ahuna, 52 Hawaii 321, 326; 474 P2d 704, 707 (1970), the Supreme Court of Hawaii held:
"We think that a satisfactory approach to the problem is set forth in § 111 of the proposed Hawaii Penal Code 1970. Under the approach a former prosecution, although it has been for a violation of a different statutory provision, will bar a subsequent prosecution if the subsequent prosecution is for an offense based on the same conduct, unless the offense 'requires proof of a fact not required by the former offense and the law defining each of the offenses is intended to prevent a substantially different harm or evil.’ ”
A New York criminal statute likewise provides that subsequent prosecutions will not be barred where "the offenses * * * [contain] an element which is not an element of the other, and the statutory provisions defining such offenses are designed to prevent very different kinds of harm or evil”. NY Crim Pro L § 40.20(2)(b) (McKinney 1971).
A common criterion in both these jurisdictions is that the same transaction rule applied where the offenses involve laws intended to prevent the same or similar harm or evil, not "a substantially different harm or evil” (Hawaii), or "very different kinds of harm or evil” (New York).
Drawing upon these sources certain criteria for determining whether crimes arise out of the same transaction can be set forth.
1) Where criminal intent is required in the offenses involved, the criterion set forth in White applies: "continuous time sequence and display [of] a single intent and goal.”
2) Where one or more of the offenses does not involve criminal intent, the criterion is whether the offenses are part of the same criminal episode, and whether the offenses involve laws intended to prevent the same or similar harm or evil, not a substantially different, or a very different kind of, harm or evil.
The above criteria do not purport to be all-inclusive. Criteria could no doubt be fashioned to encompass a greater number of fact situations and perhaps offer more guidance and thereby promote to a greater degree the efficient administration of justice. However, we believe that the criteria set forth today are as broad as appropriate until we are called upon to consider further illustrative cases.
IV — Application of the Standard
The task remains to determine whether the individual offenses involved in each of the four cases before us arise out of the same transaction. Each of the four cases include either traffic or liquor law violations. Such offenses do not require criminal intent as an element and consequently, part (1) of the standard dealing with the singleness of the criminal intent or goal is inapplicable. The relevant portion of the standard for the cases before us is part (2).
A. Crampton
On May 13, 1972, Clyde Crampton was arrested in Lansing and charged with driving under the influence of liquor, MCLA 257.625; MSA 9.2325. The complaint alleging that charge was filed in 54-A District Court on May 16, 1972. Subsequently, on June 28, a separate complaint charging Cramp-ton with failure to display a valid registration on demand, MCLA 257.223; MSA 9.1923, was also filed in the district court. It is clear that this second complaint was also based on the May 13 arrest.
Faced with the two complaints, Mr. Crampton entered a guilty plea to the failure to display registration charge on October 25, 1972. On November 6, Crampton moved to quash the driving under the influence of liquor charge by arguing that the same transaction rationale barred any further prosecution. The district court held that the same transaction rule did not apply and the circuit court affirmed. The Court of Appeals denied leave and we granted leave on September 4, 1974, 392 Mich 793 (1974).
So Crampton poses the question whether the offenses of DUIL and inability to display a valid registration are part of the same transaction. Since they are not intent offenses we employ the second criterion "whether the offenses are part of the same criminal episode, and whether the offenses involve laws intended to prevent the same or similar harm or evil, not a substantially different, or a very different kind of, harm or evil”.
Were DUIL and inability to display a valid registration part of the same criminal episode? Nothing indicates these two offenses were part of the same criminal episode. DUIL appears merely to have been the occasion of exposing the inability to display a valid registration.
Furthermore, the harm or evil intended to be prevented by the DUIL law and the law requiring ability to display a valid registration are substantially different. The former is to protect the travelling public against danger from drivers not in full control of themselves. The latter is to protect against the theft of automobiles.
In short, the two offenses in Crampton are not part of the same transaction under our second criterion. The guilty plea to the failure to display a registration charge therefore was not a bar to suit on DUIL. The circuit court and the district court holdings were therefore correct.
B. Hudgins
Royce Daniel Hudgins was arrested on October 5, 1973, and charged with three offenses all detected at one point in time: making an improper U-turn (Detroit ordinances, § 38-5-7); driving an automobile emitting excessive smoke (Detroit ordinances, § 38-10-11); and carrying a pistol in a motor vehicle without a license (MCLA 750.227; MSA 28.424). On April 25, 1974, before the scheduled date of his trial on the two ordinance charges, Mr. Hudgins entered a guilty plea in the Traffic and Ordinance Division of Recorder’s Court to the improper U-turn and excessive exhaust smoke charges. He was convicted and fined by the court. The same day, he moved in recorder’s court to dismiss the gun charge, arguing that the same transaction rule barred any further prosecution. The trial judge agreed and dismissed the charge. The people appeal on bypass granted by this Court, 393 Mich 774 (1974).
Hudgins poses the question whether making an improper U-turn or operating a vehicle which emits excessive smoke and carrying a pistol in a motor vehicle are part of the same transaction. Since making an improper U-turn and operating a vehicle which emits excessive smoke are non-intent offenses, we again employ the second criterion of our test, supra.
First, we find that the only connection between the offenses of making an improper U-turn or excessive smoke emission and carrying a weapon was that the arrest resulting from the traffic violations was the occasion for discovering that Hudgins was carrying a pistol in the vehicle. As with Crampton, such a connection is not sufficient to establish that these offenses were part of the same criminal episode.
Secondly, the harm or evil intended to be prevented by the improper U-turn law, the excessive smoke emission law and the law prohibiting the carrying of weapons are substantially different. The law which prohibits improper U-turns is designed to promote the flow of traffic and safety conditions on certain designated roadways. The law prohibiting excessive smoke emission is designed to prevent polluting the air. Neither of these offenses involves laws intended to prevent the same or similar harm or, evil sought to be prevented by the law prohibiting carrying a pistol in a motor vehicle, namely, to promote public peace and safety.
Therefore, the traffic offenses and the crime of carrying a pistol in a motor vehicle were not part of the same transaction under our second criterion. The trial court was in error in its ruling that the prosecution on the gun charge was barred by the same transaction rule.
C. Jones
On February 17, 1974, Jones was arrested in a raid of an alleged "blind pig” in the City of Detroit. Three separate charges were filed against him: disorderly conduct (Detroit ordinances, § 39-1-10); possession of heroin (MCLA 335.341[4] [a]; MSA 18.1070[41] [4] [a]); and possession of marijuana (MCLA 335.341[4] [d]; MSA 18.1070 [41] [4] [d]). Approximately one month later, on March 15, 1974, Mr. Jones was found guilty by a referee in the Traffic and Ordinance Division of Recorder’s Court on the disorderly conduct charge. A fine of $100 was imposed. Subsequently, on July 8, 1974, Mr. Jones moved to dismiss the two remaining charges by arguing that the same transaction test applied to this case. The trial judge granted the motion and the people appealed on bypass granted by this Court, 393 Mich 794 (1975).
Since disorderly conduct is a non-intent offense, we employ the second criterion of our test. First, as in the case of Crampton and Hudgins, the only connection between the disorderly conduct offense and the offenses of possession of heroin and marijuana was that the arrest for disorderly conduct was the occasion for the discovery of the additional possession of heroin and marijuana offenses. Such a connection is insufficient to establish that these offenses were part of the same criminal episode.
Secondly, the purpose of the disorderly conduct ordinance is to prevent unlawful civil disturbance while the purpose of the laws prohibiting the possession of marijuana and heroin is to ultimately prohibit the use of physically harmful substances. Clearly, the ordinance prohibiting disorderly conduct was intended to prevent a substantially different harm or evil from the laws prohibiting possession of marijuana or heroin.
Therefore, the disorderly conduct offense and the crime of possession of marijuana and heroin were not part of the same transaction.
The trial court was in error in its ruling that prosecution of the possession of marijuana and heroin offenses was barred because of the same transaction rule.
D. Allen
On September 29, 1973, James Allen, Jr., was arrested and charged with driving under the influence of liquor (MCLA 257.625; MSA 9.2325); felonious assault (MCLA 750.82; MSA 28.277), and carrying a concealed weapon (MCLA 750.227; MSA 28.424). All offenses are alleged to have occurred at the scene of an automobile accident in which Allen was involved. On November 26, 1973, Allen stood trial in the Trafile and Ordinance Division of Recorder’s Court on the DUIL charge. He was convicted and sentenced by the court to 45 days at the Detroit House of Correction. On February 6, 1974, he moved in recorder’s court for the dismissal of the two remaining charges. The trial judge found that the same transaction test applied and accordingly dismissed the charges. The people appeal on bypass granted by this Court, 393 Mich 775 (1974).
Since DUIL is a non-intent offense, we once again employ the second criterion of our test. In this particular case we must apply the second criterion to (1) whether DUIL and carrying a concealed weapon are part of the same transaction and (2) whether DUIL and felonious assault are part of the same transaction.
As for DUIL and carrying a concealed weapon, we find that these two offenses are not part of the same transaction. First, we find that these offenses are not part of the same criminal episode. The only connection between DUIL and carrying a concealed weapon in this case is that arrest for the DUIL violation was the occasion for the discovery of the concealed weapon. As we have seen in Crampton, Hudgins, and Jones, this is not a sufficient link to establish that these offenses were part of the same criminal episode. Secondly, we find that the harm or evil intended to be prevented by the DUIL law and the law prohibiting the carrying of a concealed weapon are substantially different. The purpose of the DUIL law, as we noted in our discussion of Crampton, is to protect the travelling public against danger from drivers not in full control of themselves. The purpose of the law prohibiting carrying a concealed weapon is to promote public peace and safety. So, clearly, these offenses involve laws intended to prevent substantially different harm or evil. Therefore, the trial court was in error in ruling that DUIL and carrying a concealed weapon were part of the same transaction, thus barring prosecution on the concealed weapon offense.
As for DUIL and felonious assault, we find that these two offenses are also not part of the same transaction. It is a close question whether the DUIL offense and the felonious assault offense in this case were part of the same criminal episode. However, we need not make this determination because, applying the other part of the test, we find that the DUIL and felonious assault laws were intended to prevent substantially different kinds of harm or evil. We have already reiterated the purpose of the DUIL law: to protect the travelling public against danger from drivers not in full control of themselves. The purpose of the felonious assault law is to protect the public from physical violence and harm. Therefore, the trial court was also in error when it concluded DUIL and felonious assault were part of the same transaction. Prosecution on the felonious assault charge was not barred under the same transaction rule.
IV — Conclusion
Under the standard adopted today for determining whether offenses arose out of the same transaction, we conclude that in none of the four cases should subsequent prosecutions be barred. In Crampton the district court is affirmed. In Hudgins, Allen and Jones, recorder’s court is reversed and those cases are remanded for trial.
Coleman and Fitzgerald, JJ., concurred with Williams, J.
Lindemer and Ryan, JJ., took no part in the decision of this case.
Jurisdictions in which the same transaction test has been adopted by court decision include: Missouri, State v Richardson, 460 SW2d 537 (Mo, 1970); Tennessee, Walton v State, 448 SW2d 690 (Tenn Crim App, 1969); Georgia, Burnam v State, 2 Ga App 395; 58 SE 683 (1907); North Carolina, State v Bell, 205 NC 225; 171 SE 50 (1933); Pennsylvania, Commonwealth v Campana, 452 Pa 233; 304 A2d 432 (1973).
Jurisdictions achieving same result via statute include: Minnesota, see State v Corning, 289 Minn 382; 184 NW2d 603 (1971); California, see In re Henry, 65 Cal 2d 330; 54 Cal Rptr 633; 420 P2d 97 (1966); New York, NY Crim Pro L § 40.10(2) (McKinney 1971).
The Michigan Double Jeopardy Clause, which is substantially identical to the Double Jeopardy Clause contained in the Fifth Amendment to the United States Constitution, provides in pertinent part:
"No person shall be subject for the same offense to be twice put in jeopardy.” Const 1963, art 1, § 15.
As the Supreme Court of Minnesota noted in State v Johnson 273 Minn 394; 141 NW2d 517, 524-525 (1966):
"While the objectives are clear enough, the difficulty lies in formulating a test for determining whether each violation charged resulted from a single behavioral incident. * * * [A]ny test must give consideration to the vast number of conceivable situations which are likely to arise.”
"The Double Jeopardy Clause is a guarantee 'that the State with all its resources and power [shall] not be allowed to make repeated attempts to convict an individual for an alleged offense, thereby subjecting him to embarrassment, expense and ordeal and compelling him to live in a continuing state of anxiety and insecurity * * * .’ Green v United States, 355 US 184, 187 [78 S Ct 221; 2 L Ed 2d 199; 61 ALR2d 1119] (1957).” Concurring opinion of Justice Brennan in Ashe v Swenson, 397 US 436, 450; 90 S Ct 1189, 1197-1198; 25 L Ed 2d 469, 479 (1970).
In White we did recognize an exception to the same transaction test " 'where a crime is not completed or not discovered despite the due diligence on the part of the police, until after the commencement of a prosecution for other crimes arising from the same transaction * * * ’. Ashe v Swenson, 397 US 436, 453 n 7; 90 S Ct 1189, 1199; 25 L Ed 2d 469, 481 (1970) (Brennan, J., concurring).”
Whether an exception to the same transaction test should be recognized in those cases in which the prosecutor does not know or through due diligence could not discover that other charges against the defendant exist is a question that deserves our careful consideration. However, since we have ruled in this opinion that none of the instant appeals fall within the same transaction test (see part IV of this opinion), it is a question we need not answer today.
Defendant White had been charged with kidnapping, felonious assault and rape. 390 Mich 250-251.
See also In re Martinis v Supreme Court of New York, 15 NY2d 240, 247; 206 NE2d 165, 167; 258 NYS2d 65, 68 (1965).
"It has long been recognized that crimes separate in nature, although arising out of the same transaction, may be defined and convictions thereon sustained without exposing defendant to double jeopardy (People v Snyder, 214 App Div 742; 209 NYS 898 [1925], affd 241 NY 81; 148 NE 796 [1925]; People v Skarczewski, 287 NY 826; 41 NE2d 99 [1942]; People v Di Lapo, 14 NY2d 170; 250 NYS2d 261; 199 NE2d 361 [1964]).”
We agree with the Court of Appeals application of the White rationale in the following cases: People v Rolston, 51 Mich App 146; 214 NW2d 894 (1974); People v Joines (On Remand), 55 Mich App 334; 222 NW2d 230 (1974); People v Davenport (On Remand), 51 Mich App 484; 215 NW2d 702 (1974); People v West, 54 Mich App 527; 221 NW2d 179 (1974); People v Martinez, 58 Mich App 693; 228 NW2d 523 (1975); People v Goans, 59 Mich App 294; 229 NW2d 422 (1975); People v Williams, 61 Mich App 642; 233 NW2d 122 (1975); People v Jackson, 391 Mich 323; 217 NW2d 22 (1974); People v Charles Johnson, 62 Mich App 240; 233 NW2d 246 (1975).
Defendants Hudgins, Jones, and Allen argue that the same transaction test is applicable where crimes are connected by a continuous time sequence or a common intent or goal. Such a standard is far too broad and would not best serve the purposes for which the same transaction test was adopted. | [
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Fitzgerald, J.
I would affirm the decisions of the Workmen’s Compensation Appeal Board and the Court of Appeals. The Second Injury Fund should hot be subjected to a separate, independent hearing to determine whether the fund is liable for differential payments when the claimant and employer redeem all alleged potential employer liability by entering into a negotiated settlement where employer liability has been neither admitted nor adjudicated.
This Court’s review is limited to a specific legal issue which is of major significance to the Workmen’s Compensation Law of Michigan. The factual circumstances of these four consolidated cases were succinctly stated in the Court of Appeals opinion. In each case, a redemption agreement was en tered into between the injured claimant and the employer and redemption orders approving the agreements were issued by the hearing referee. Each then sought total and permanent disability benefits from the Second Injury Fund.
The claims of plaintiffs White, Moorhouse, and Pitts were dismissed in separate proceedings by the hearing referee on the basis that the Second Injury Fund’s liability is contingent upon payment of disability benefits by the employer or its insurance carrier following an admission or determination of employer liability. The Workmen’s Compensation Appeal Board affirmed in each case. Plaintiff Boyko’s claim differed in that it was dismissed "without prejudice to plaintiff’s right to re-file against said defendant [Second Injury Fund] in the future”. Boyko refiled., prevailed, and was awarded total and permanent disability benefits. However, the board reversed the referee’s decision and held that redemption of liability prior to a hearing on the merits of the claim constituted "neither acknowledgement nor legal establishment of Second Injury Fund liability”.
Leave was granted by the Court of Appeals and the four cases were consolidated for oral argument. That Court affirmed the board’s decision in holding that the "liability of the Second Injury Fund is derivative from that of the employer, so that the fund cannot be subjected to a separate, independent hearing as to liability for differential payments once the employer’s alleged prospective liability has been redeemed via a negotiated settlement”. We granted leave to consider the correctness of this ruling.
I would adopt entirely the analysis of and the result reached by the Court of Appeals opinion. My comments address those theories advanced by plaintiffs either not discussed by the Court of Appeals or which bear emphasis or elaboration.
Plaintiffs contend that Derouin v Director of Workmen’s Compensation Department, 19 Mich App 309; 172 NW2d 463 (1969), is not specifically limited to cases involving a previous award of permanent and total disability benefits. Rather than "break new ground” by restricting the applicability of Derouin, as plaintiffs argue, I can conceive of no interpretation other than that given by the board to the statement: who on or after June 25, 1955, is entitled to receive payments of workmen’s compensation, once these facts are determined affirmatively, the Second Injury Fund is required to pay the increased benefits as stated in the act.” (Emphasis added.) Derouin, supra, p 313.
"Although payment from the fund is dependent in the first instance upon the employee being a permanently and totally disabled person, as defined in the act,
There is no inconsistency in maintaining that the fund’s liability is derivative from that of the employer, yet requiring it to continue payments after the employer terminated its obligation to the plaintiff. The fund’s obligation to pay became separate and apart from the employer once it was ordered to pay and not before. I would affirm the interpretation given Derouin by the board and the Court of Appeals.
Plaintiffs argue that if the Second Injury Fund’s liability were truly derivative, the fund should be entitled to share in the proceeds of a third-party recovery. The fund was denied such participation in Mead v Peterson-King Co, 24 Mich App 530; 180 NW2d 304 (1970). There were no provisions within MCLA 413.15; MSA 17.189 which authorize the fund to share proceeds received from a third party. The statute permitted an employer or its compensation carrier to be subrogated to the rights of the employee against a third-party tortfeasor. These provisions relating to the mitigation of employer liability have no relevance to either the establishment of employer or Second Injury Fund liability or the financial responsibilities resulting from a redemption agreement.
Plaintiffs next contend that under proper circumstances the Second Injury Fund is liable for all additional total and permanent disability benefits in excess of $10,500. It is their belief that the fund may be obligated to pay differential benefits even though the employer has no obligation whatsoever. I fail to see how plaintiffs’ position gains support from the case authority cited. In Felcoskie v Lakey Foundry Corp, 382 Mich 438; 170 NW2d 129 (1969), the employee was required to offer proofs that the dust disease suffered by the claimant was so common and widespread that it represented a threat to the industry comparable to those specified diseases which limited employer liability to $10,500. The case dealt with the classification of a dust disease to determine the applicability of a statutory limitation upon employer liability after the employer was held responsible for total and permanent disability benefits. If this classification is the "proper circumstance” to which plaintiffs refer, I remain unconvinced of its application here.
As to plaintiffs’ point that the fund can be obligated to pay differential benefits even where the employer’s obligation is zero, I would concede the accuracy of the statement but again question its applicability to this case. King v Second Injury Fund, 382 Mich 480; 170 NW2d 1 (1969), involved the construction of a 1927 statute which limited employer liability to two-thirds of claimant’s average weekly wage and the 1955 amendment which provided for payment from the Second Injury Fund based upon an amended schedule of workmen’s compensation benefits. At issue was the amount of differential payments due plaintiff from the Second Injury Fund. The case simply restricted the application of the statutory limitation of weekly benefits to the employer. The Second Injury Fund was required to pay an amount equal to the difference between the amount to which claimant was entitled in 1955 and the amount provided for total and permanent disability based upon the amended schedule of workmen’s compensation benefits. The employer’s obligation to the claimant was zero, as plaintiffs indicate, but due only to the fact that the period for which the employer was liable had terminated. Moreover, in King, unlike the instant case, there was a determination that plaintiff was entitled to total and permanent disability benefits.
Finally, the statutory language of MCLA 418.521(2); MSA 17.237(521)(2) providing differential benefits to those permanently and totally disabled requires that the claimant be entitled to receive payment of workmen’s compensation bene fits. In the absence of a prior determination of employer liability, a redemption agreement between a claimant and an employer or insurance carrier does not entitle a claimant to benefits and constitutes neither an admission nor an adjudication of employer liability.
Affirmed.
Coleman, Lindemer, and Ryan, JJ., concurred with Fitzgerald, J.
"John B. White was a race driver who was injured on June 14, 1964 while driving one of defendant Weinberger’s vehicles at Terre Haute, Indiana. His injuries included partial severing of the spinal cord, leaving him described by medical testimony as a tetraplegic. There was strong disagreement over his actual employment status at the time of his injury and defendant and its insurer never admitted to liability. No voluntary compensation was paid until a redemption agreement was reached in the amount of $75,000. This was paid in the form of a six-month 'jurisdictional payment’ in the amount of $1,539 at the time of the redemption hearing, with the balance paid subsequent to the approval by the referee and director of the bureau. The record reveals that plaintiff was completely aware of his options before the redemption was consummated. Plaintiff and his counsel made clear their intent to proceed against the fund for additional benefits, but plaintiff acknowledged that he would be willing to redeem for the stated sum regardless of the outcome of his pending claim against the fund. No hearing on the merits of plaintiffs claim against defendant Weinberger was ever held, nor was any decision ever entered in that regard.
“John Boyko was injured when struck in the back by a hi-lo truck on October 19, 1957 and has not worked since November 14, 1957. Defendant Chrysler Corporation voluntarily paid total disability weekly benefits to the end of the statutory 500-week period. Plaintiff Boyko then petitioned for permanent and total disability, claiming loss of industrial use of both legs. The claim was denied by Chrysler. A redemption was entered into between plaintiff and Chrysler in the amount of $5,400 and was approved by the referee. The Second Injury Fund was dismissed as a defendant 'without prejudice to plaintiff’s right to refile against said defendant in the future’.
"Hansel O. Moorhouse fell from a ladder while in the employment of defendant Candler Company, at age 70, on September 11, 1956. His injury was reported as 'severe spinal injury’, and voluntarily weekly benefits were paid for 500 weeks. At the end of this period, plaintiff petitioned for permanent and total disability based on the loss of industrial use of his legs. A redemption of defendant firm’s prospective liability was approved by the referee in the amount of $5,000. No proofs were taken on the claim of loss of industrial use. The record reveals that plaintiff and counsel intended to proceed against the Second Injury Fund subsequent to the redemption, but were also aware that the redemption involved possible waiver of plaintiff’s right to proceed against the fund.
"Roosevelt Pitts froze the fingers of both hands while working for a gas station on January 1, 1968 in sub-zero weather. This resulted in amputations through the middle phalanges of the four fingers of the left hand and through the middle phalanges of the index and middle fingers of the right hand. No weekly benefits were paid because of a lack of insurance being carried by the gas station proprietor, and because there was (quoting plaintiffs brief) 'substantial question as to whether the Citron Oil Company was a statutory employer within the meaning of Section 10(a) of Part I of the Workmen’s Compensation Act’, formerly MCLA 411.10; MSA 17.150, currently MCLA 418.171; MSA 17.237(171). The liability of defendant gas station and defendant oil company was redeemed for $9,000 in an action approved by the referee. Plaintiff’s counsel stated on the record at the redemption hearing that he believed 'there is a good chance of perhaps collecting benefits from the second injury fund even though this Redemption is approved’. Plaintiff thereafter petitioned for benefits from the fund, claiming loss of industrial use of both hands.” 49 Mich App 430, 432-434; 212 NW2d 307, 309-310.
MCLA 412.22; MSA 17.172, currently MCLA 418.835; MSA 17.237(835), provided:
"Whenever any weekly payment has been continued for not less than 6 months, the liability therefor may be redeemed by the payment of a lump sum by agreement of the parties, subject to the approval of the compensation commission, and said compensation commission may at any time direct in any case, if special circumstances be found which in its judgment require the same, that the deferred payments due under this act be commuted on the present worth thereof at 5% per annum to 1 or more lump sum payments, and that such payments shall be made by the employer or the insurance company carrying such risk, or commissioner of insurance. When an application is made to redeem liability, the application may, within the discretion of the department be treated also as being an application for an advance lump sum payment. The filing of a petition for redemption or advance lump sum payment shall not be considered an admission of liability and in any case where the department treats any application for redemption as an application for advance lump sum payment under this section, the employer shall be entitled to a hearing on the question of liability.”
MCLA 412.9(a); MSA 17.159(a) provided:
" * * * Any permanently and totally disabled person as defined in this act who, on or after June 25, 1955, is entitled to receive payments of workmen’s compensation under this act in amounts per week of less than is presently provided in the workmen’s compensation schedule of benefits for permanent and total disability and for a lesser number of weeks than the duration of such permanent and total disability shall after the effective date of any amendatory act, by which his disability is defined as permanent and total disability or by which the weekly benefit for permanent and total disability is increased, receive weekly, without application, from the second injury fund, an amount equal to the difference between what he is now or shall hereafter be entitled to receive from his employer under the provisions of this act as the same was in effect at the time of his injury and the amount now provided for his permanent and total disability by this or any other amendatory act with appropriate application of the provisions of paragraphs (b), (c), (d) and (e) of this section since the date of injury. Payments from this second injury fund shall continue after the period for which any such person is otherwise entitled to compensation under this act for the duration of such permanent and total disability according to the full rate provided in the schedule of benefits.”
49 Mich App 430, 432; 212 NW2d 307 (1973).
2 Larson’s Workmen’s Compensation Law, § 59.31, pp 10-292 to 10-293.
Plaintiffs also cite Dokter v City of Holland, 1971 WCABO 730, in support of their contention that the fund’s liability is separate and apart from the employer. However, in that case, plaintiff claimed benefits from the deceased’s employer as a dependent widow in her own right and also from the Second Injury Fund as administratrix of the deceased’s estate. Redemption of the former claim did not foreclose the latter. Further, as indicated by defendants, the liability of the fund for differential payment differs greatly from employers’ liability for death benefits.
"If the injured employee or his dependents or personal representative does not commence such action within 1 year after the occurrence of the personal injury, then the employer or its compensation insurance carrier may, within the period of time for the commencement of actions prescribed by statute, enforce the liability of such other person in the name of that person.”
This subsection (previously MCLA 412.9[a]; MSA 17.159[9] [a]) provides:
"Any permanently and totally disabled person as defined in this act, if such total and permanent disability arose out of and in the course of his employment, who, on and after June 25, 1955, is entitled to receive payments of workmen’s compensation in amounts per week of less than is presently provided in the workmen’s compensation schedule of benefits for permanent and total disability, and for a lesser number of weeks than the duration of such permanent and total disability, after the effective date of any amendatory act by which his disability is defined as permanent and total disability, or by which the weekly benefits for permanent and total disability are increased, shall receive weekly from the carrier on behalf of the second injury fund differential benefits equal to the difference between what he is now or shall hereafter be entitled to receive from his employer under the provisions of this act as the same was in effect at the time of his injury, and the amounts now provided for his permanent and total disability by this or any other amendatory act, with appropriate application of the provisions of sections 351 to 359.” | [
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Leave to appeal considered and, it appearing to this Court that the cases of People v Wynn (Docket No. 56977), People v Pearson (Docket No. 57147), and People v Schwartz (Docket No. 57273) are presently pending on appeal before this Court and that the decision in those cases may be decisive of the issue raised in the present application for leave to appeal, it is ordered that the present application be held in abeyance pending decision in those cases.
Frank J Kelley, Attorney General, Robert A. Derengoski, Solicitor General, William L. Cahalan, Prosecuting Attorney, Patricia J. Boyle, Principal Attorney, Research, Training and Appeals, and Larry L. Roberts, Assistant Prosecuting Attorney, for the people, appellant. Leonard Townsend for defendant-appellee.
Reported below: 63 Mich App 595. | [
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Coleman, J.
Howard Stewart was convicted in Recorder’s Court of selling and possessing heroin. The Court of Appeals affirmed. Defendant claims the conviction should be reversed because the trial court did not reject certain testimony as hearsay. To the contrary, we find the testimony was properly admitted. The conviction is affirmed.
LaTonia Boldin was working as an agent for the Detroit police when defendant was arrested. The controversy concerns her appearance as a witness.
In chronological order, the testimony in question was:
(1) Mrs. Boldin went to defendant’s restaurant, telling defendant she wanted a job to support her habit.
(2) When defendant asked when she could start work, Mrs. Boldin answered she could start as soon as she got her head together (i.e., got a fix).
(3) Defendant asked her what she "was on”.
(4) Defendant suggested some "P” (pure heroin):
"A. (Mrs. Boldin): * M He says, 'Well, how about marijuana? I said, 'No.’ I said, 'Because that’s too mild.’ * * *
"He says, 'well, how about some P’s?”
(5) Defendant asked Mrs. Boldin how much money she had, responding that the 20 dollars would be fine.
(6) Defendant told Mrs. Boldin he could get the "P” for her.
'A. (Mrs. Boldin): * * * and I asked him, I says, 'Well, could you get it for me?’ * * * And he said yes.”
(7) Defendant then left the restaurant, walking across the street to an apartment building.
(8) Junior joined Mrs. Boldin while she was waiting in the restaurant.
(9) Defendant returned to the restaurant, walking directly to the kitchen in back of the restaurant.
(10) Defendant called Junior back to the kitchen and they engaged in conversation.
(11) Junior returned and Mrs. Boldin gave him 20 dollars. Junior passed a packet of heroin to her under the table.
(12) Defendant emerged, asking Mrs. Boldin, "Do you think you’ll have yourself together around 3 o’clock?”
In the kitchen, Junior was positioned so that Mrs. Boldin could not see what, if anything, passed to him from defendant, but concert of action can be established by circumstantial evidence. The conversations between defendant and Mrs. Boldin and defendant’s and Junior’s movements comprise sufficient circumstantial evidence, independent of Junior’s conversation, to establish a prima facie case of concert of action.
Of notable impact is the fact that Mrs. Boldin did not tell Junior of the agreed purchase or price of the heroin, yet after Junior’s return from speaking with defendant, he exchanged the packet of heroin for 20 dollars. Testimony concerning his conversation was not crucial to jury deliberation, although it did add flesh to the bare bones of the transaction.
In defendant’s absence Junior introduced himself to Mrs. Boldin and asked whether she would be working at the restaurant and if defendant had gone. He asked her if she got high, to which she replied affirmatively. Junior then asked, "did Stewart go over to the apartment building to get some?”
After defendant returned to the restaurant and had spoken with Junior in the kitchen, Junior sat next to Mrs. Boldin at the counter and allegedly asked,
"Q. Do you have any money for me?
"A. What?
”Q. Do you have any money for me? Twenty dollars?
’A. Yeah.”
Junior then told her to slip it up under the counter so no one would see her. She handed him the 20 dollars and he handed her a small tinfoil packet. She asked if that was all she was going to get and Junior replied, "Yeah, because Howard sells them real mellow P”.
It was then that defendant came out and asked if she would have herself together by 3:00.
In our opinion, a prima facie case of concert of action was made by the prosecutor, so the conversation with Junior (an unnamed codefendant) comes within a well-established exception to the hearsay rule. Even without the hearsay, adequate facts to go to the jury were in evidence.
In 1867 Justice Christiancy stated:
"The general rule is well settled that, where several persons are engaged in one common unlawful enterprise, whatever is said or done by any one of them in the prosecution of the common enterprise, or while it is still in progress, is evidence against all the parties to it.” People v Pitcher, 15 Mich 397, 403-404 (1867).
The challenged acts and declarations in this case were during the alleged concerted action, not before or after. A prima facie case of concert of action was established without any of Junior’s declarations. The acts of Junior are not those "assertive” acts sometimes excluded (e.g., pointing, sign language) nor remote or irrelevant (e.g., collection of insurance as proof of death at sea). To the contrary, Junior’s acts were relevant, immediate and constituted part of the transaction. His only crucial act outside of defendant’s presence was passing the heroin to the witness who had been searched before entering the restaurant and who had the heroin when she emerged. We find no case in which a similar act was excluded.
The United States Supreme Court has recognized a valid distinction between acts and declarations of co-conspirators. In Lutwak v United States, 344 US 604; 73 S Ct 481; 97 L Ed 593 (1953), reh den 345 US 919; 73 S Ct 726; 97 L Ed 1352 (1953), the Court approved the use of a co-conspirator’s acts against other members of the conspiracy although the conspiracy had ended. At the same time use of declarations was not allowed. The Court characterized the problem of declarations as one of hearsay:
"Therefore, the declarations of a conspirator do not bind the co-conspirator if made after the conspiracy has ended. That is the teaching of Krulewitch v United States [336 US 440; 69 S Ct 716; 93 L Ed 790], and Fiswick v United States [329 US 211; 67 S Ct 224; 91 L Ed 196 (1946)]. Those cases dealt only with declarations of one conspirator after the conspiracy had ended. They had no application to acts of a conspirator or others which were relevant to prove the conspiracy. True, there is dictum in Logan v United States [144 US 263, 309; 12 S Ct 617; 36 L Ed 429 (1892)], frequently repeated, which would limit the admissibility of both acts and declarations to the person performing them. This statement of the rule overlooks the fact that the objection to the declarations is that they are hearsay. This reason is not applicable to acts which are not intended to be a means of expression. The acts, being relevant to prove the conspiracy, were admissible, even though they might have occurred after the conspiracy ended. United States v Rubenstein 151 F2d 915, 917, 918 [CA 2, 1945]; see Fitzpatrick v United States, 178 US 304, 312, 313 [20 S Ct 944; 44 L Ed 1078, 1081, 1082 (1900)]; Ferris v United States 40 F2d 837, 839 [CA 9, 1930].”
Similarly, the necessity of proving a prima facie case of conspiracy is a problem arising out of the use of hearsay.
Statements declared by a co-conspirator (or one engaged in a concert of action) are hearsay if used against another member of the conspiracy. But, a widely recognized exception to the hearsay rule allows such use if the conspiracy is properly proven (prima facie) by evidence independent of the hearsay. People v Chambers, 279 Mich 73; 271 NW 556 (1937); People v Lewis, 264 Mich 83; 249 NW 451 (1933). The rationale is that the agency relation charges each conspirator with declarations and admissions of other co-conspirators. Lutwak v United States, supra. The same follows for certain acts of a co-conspirator. Acts or conduct not intended as assertive are not hearsay and, therefore, they are admissible. It should be noted that nonassertive acts or conduct are not an excep tion to the hearsay rule — rather, they are not hearsay in the first place.
In view of the circumstances absent Junior’s statement, their safe bounds of relevancy and "indicia of reliability”, the trial judge did not err in allowing the testimony about the absent co-defendant.
In addition, the nonassertive acts of the parties did not constitute hearsay and no error was committed in allowing a description to go to the jury.
We follow long recognized and necessary theories of criminal law as to this set of facts.
We affirm the conviction.
Williams and Fitzgerald, JJ., concurred with Coleman, J.
Lindemer and Ryan, JJ., took no part in the decision of this case.
" 'A "prima facie” case means, and means no more than, evidence sufficient to justify, but not to compel, an inference of liability, if the jury so find.’ ” Stewart v Rudner, 349 Mich 459, 474; 84 NW2d 816, 826 (1957).
"PRIMA FACIE CASE. Such as will suffice until contradicted and overcome by other evidence. Pacific Telephone & Telegraph Co v Wallace, 158 Or 210; 75 P2d 942, 947 [1938], A case which has proceeded upon sufficient proof to that stage where it will support finding if evidence to contrary is disregarded. In re Hoagland’s Estate, 126 Neb 377; 253 NW 416 [1934].” Black’s Law Dictionary, 1353 (rev 4th ed 1968).
For a somewhat similar case, see Sendejas v United States, 428 F2d 1040 (CA 9, 1970), cert denied, 400 US 879; 91 S Ct 127; 27 L Ed 2d 116 (1970) (hearsay declared to witness properly admitted to prove existence of conspiracy where evidence of how defendants reacted after being contacted by the witness reasonably established a prima facie case of conspiracy without considering any of the hearsay testimony). See also, United States v Bey, 437 F2d 188 (CA 3, 1971) (defendant’s departure, declarant’s arrival one-half hour later, and dialogue on price suggested union).
People v Heidt, 312 Mich 629; 20 NW2d 751 (1945); People v Roxborough, 307 Mich 575; 12 NW2d 466 (1943); People v Robinson, 306 Mich 167; 10 NW2d 817 (1943); People v Knoll, 258 Mich 89; 242 NW 222 (1932); People v Nankervis, 330 Mich 17; 46 NW2d 592 (1951); People v Chambers, 279 Mich 73; 271 NW 556 (1937); People v Woods, 206 Mich 11; 172 NW 384 (1919); People v Parker, 67 Mich 222; 34 NW 720 (1887).
Just as nonassertive conduct is not hearsay, neither are assertive declarations not offered to prove what is asserted. See Belvidere Land Co v Owen Park Plaza, Inc, 362 Mich 107; 106 NW2d 380 (1960); Koch v Production Steel Co, 344 Mich 161; 73 NW2d 323 (1955); McCormick’s Handbook on the Law of Evidence, (E. Cleary ed 1972), pp 596-600. See also, Fed R Ev 801(a), 801(d)(2)(E) (to take effect July 1, 1975).
See Dutton v Evans, 400 US 74; 91 S Ct 210; 27 L Ed 2d 213 (1970). | [
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Request for appointment of counsel granted. Defendant shall file with Kalamazoo Circuit Court an affidavit concerning his present financial status (see guidelines at 387 Mich xxxi). The prosecutor shall be furnished a copy of the financial affidavit and may challenge defendant’s asserted indigency within 20 days after receiving the affidavit. The challenge, if brought, shall be resolved at a hearing before Kalamazoo Circuit Court at which the prosecution, defendant, and counsel for defendant shall appear personally to aid the Court’s inquiry. Kalamazoo Circuit Court, upon a finding of indigency, shall appoint counsel for defendant and shall furnish any portion of the record counsel may require. | [
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Fitzgerald, J.
The issue on appeal is whether plaintiff suffers from a "confining sickness,” as defined by a policy of health and accident insurance issued to him by defendant Federal Life and Casualty Company. The policy was issued to plaintiff in September of 1966 for an annual premium of $201.50. The controversy concerns § 3D of the policy which provides the following coverage:
'Policy section 3
"D. Total Disability — Sickness
(1) Non-confining or confining sickness
Monthly indemnity $200
24 Months for any one Sickness
(2) Confining Sickness and continued Disability after (Dl)
Monthly Indemnity $200
Lifetime for any one Sickness
" 'Confining Sickness’, means that as a result of Sickness the Insured is confined to his residential premises or yard, except for necessary visits to a hospital or doctor’s office for treatment.
" 'Total Disability’, means that as a result of Injury or Sickness, the Insured is under the regular care and attendance of a duly licensed doctor of medicine or osteopathy, other than himself, is completely unable to perform each and every duty pertaining to his occupation and is not gainfully employed in any other occupation, except that if a monthly indemnity has been paid for 12 months during any period of continuous total disability, then for the balance of the period of such continuous total disability, the term total disability in addition shall mean the complete inability of the Insured to engage in any gainful occupation for which he is reasonably qualified by education, training or experience.”
In March of 1969, at the age of 47, plaintiff suffered a severe myocardial infarction. As a result of that attack and of the subsequently diagnosed chronic heart disease, plaintiff became disabled from engaging in any gainful employment. Prior to his attack, he had been employed by the Continental Motors Corporation and had, in addition, operated a used-car lot in Muskegon.
He has been diagnosed as suffering from chronic coronary ischemia, which is an insufficiency of the blood supply nourishing the heart. For this reason, he is incapable of more than mild physical activity. He has been told by his treating physician, Dr. Claude VanAndel, D. O., to avoid physical and mental strain, lifting, exposure to inclement weather, and crowds. He was told that mild exercise short of that which produces chest pain or shortness of breath is of therapeutic value.
The evidence indicates that apart from initial and subsequent periods of hospitalization, plaintiff’s time is spent around home. His principal exercise and pastime is walking, which he can do for stretches of three or four blocks without pain or shortness of breath. He has been characterized by his physician as an extremely nervous individual, a typical coronary type, one for whom another acute attack is merely a question of time. It ap pears that plaintiffs walking exercise has been his main transition from active employment to the life of a semi-invalid which he now leads. He walks about his yard or the neighborhood when the weather is good. During inclement weather, he will walk inside his house, from one room to another or out into a connecting garage. Once or twice a week he will accompany his wife or mother to the grocery store or to a shopping center where he can walk about for a change of scenery. His walking, which is done in stretches of three or four blocks, may total as much as two miles on some days. He also drives on occasion, although this has been curtailed by his physician because of the arm motion involved. He estimated that he might do approximately ten percent of the family driving around town. For instance, he testified that he may on occasion pick up his seven-year-old daughter from the neighborhood school or that he occasionally drives his mother to the store.
Except for monthly visits to his doctor and occasional visits to neighbors, the above constitutes the extent of plaintiffs activities outside the home. During the course of his day, plaintiff takes the following medication prescribed by his physician: digitalis, Nitrobid, Coumadin, Bentyl, and Nitrostat (which is an improved form of nitroglycerin and which plaintiff takes in times of distress).
Following the onset of plaintiffs disability in March 1969, defendant paid plaintiff the $200 monthly indemnity for two years pursuant to § 3D(1) of the policy. Defendant’s refusal to pay continued benefits pursuant to § 3D(2) of the policy resulted in plaintiffs complaint on October 27, 1971, in Muskegon Circuit Court. It was the opinion of plaintiffs physician that the rigors of trial might precipitate another coronary. For that rea son, and on the stipulation of counsel, a bench trial was had at which the depositions of plaintiff, his treating physician, and defendant’s medical expert, Dr. David A. Amos, M. D., were admitted into evidence. The trial court entered judgment for the defendant on the ground that, although plaintiff had been totally and continuously disabled within the terms of the policy at issue, he was disqualified by reason of the confinement clause for further benefits. The Court of Appeals reversed at 61 Mich App 377; 232 NW2d 710 (1975), in a scholarly opinion whose analysis and whose result we affirm.
Perhaps the best discussion regarding the development of case law pertaining to house confinement clauses is found in Anno, When is one conñned to house within meaning of health or accident insurance policy, 29 ALR2d 1408, 1412-1413, wherein it is stated in summary:
"While there is considerable authority supporting the view that 'house confinement’ clauses are to be literally construed, so as to preclude recovery where the insured for any reason, with the possible exception of emergencies beyond his control, leaves the house, the great majority of cases support the so-called liberal construction view.
"Two quite generally accepted doctrines, with reference to the insured’s right to recover under a specific factual situation, emerge from the cases.
"The first of these is the doctrine that 'house confinement’ clauses are not violated where the insured occasionally departs from within the four walls of the house for the purpose of getting fresh air and exercise, in a bona fide attempt to improve his health, particularly where such departures are undertaken by the direction of a physician, or where he visits his physician’s office or a hospital for examination and treatment.
"On the other hand, where the insured is able to, and does, leave his house for primarily business or other non-therapeutic records [sic] , he can no longer be considered within the scope of a 'house confinement’ clause.”
A review of recent decisions compiled in the Later Case Service of this collection reveals that most if not all jurisdictions which have recently confronted the issue follow the liberal rule.
In 1A Appleman, Insurance Law and Practice, §§652-653 (1976 Pocket Part, pp 134-135), it is stated:
"The term 'continuous confinement’ in a disability policy has been considered to describe the nature and extent of the insured’s illness, or disability, and not prescribe limitations on the conduct of the insured.
"But where the insured is able to and does leave his home for primarily business or other personal, as contrasted to therapeutic, reasons, even the more liberal courts generally tend to deny recovery for illness or disability under a policy requiring confinement within house or within doors.”
See, also, 15 Couch on Insurance 2d, §§ 53:141-53:148.
Michigan had an early commitment to liberal construction of such confinement clauses. In Hoffman v Michigan Home & Hospital Ass’n, 128 Mich 323; 87 NW 265; 54 LRA 746 (1901), the confinement clause, which read "continuously confined to his bed, or continuously confined to the house”, was even more restrictive than the clause here at issue. The facts of Hoffman reveal, that although plaintiff was totally disabled from engaging in his bakery-confectionery business, he was allowed by his physician to leave his residence, which was in the same building as his bakery, and to travel to Chicago in order to seek a more tranquil convalescence away from his business. Plaintiff Hoffman further testified that he took morning walks during the period of his convalescence in Chicago. Nevertheless, this Court upheld a jury verdict for plaintiff and approved an instruction by the trial court which reads in part as follows:
" 'I charge you, gentlemen, that, to constitute a compliance with this provision, it is not necessary that the plaintiff should remain in the house continuously during the entire time of disability; that to step out of doors now and then, or to occasionally go to the office of his physician, would not be a violation of this clause, or defeat plaintiff’s right of recovery. It may be that an occasional airing is essential to a speedy recovery. A rule which would make nugatory a contract having for its special object indemnity on account of sickness, because the insured took an occasional and necessary airing, would be unreasonable. Was the plaintiff sick, and with a disease covered by his policy, to the extent that he was totally disabled from prosecuting any business? and was he continuously confined to his house on account of such sickness, to the extent that he was necessarily and in good faith there the larger portion of his time, and only went forth either from necessity for consultation with, or by direction of, the physician in whose charge and care he was? An answer to this question will determine this branch of the case.’ ” 128 Mich at 327-328.
However, as was noted by the Court of Appeals, Michigan precedent on point became less than clear when Hoffman was distinguished in Shirts v Phoenix Accident & Sick Benefit Ass’n, 135 Mich 439; 97 NW 966 (1904), and Cooper v Phoenix Accident & Sick Benefit Ass’n, 141 Mich 478; 104 NW 734 (1905).
We are of the opinion that, if there has been an apparent retreat from the liberal approach of Hoffman, the time has come for us to reaffirm the basic soundness of that case. The principal purpose for which one insures against sickness and accident is to provide indemnity for the period of inability to engage in gainful employment. In such cases, technical construction of policy language which would defeat a reasonable expectation of coverage is not favored. Ebert v Prudential Ins Co of America, 338 Mich 320, 325; 61 NW2d 164 (1953). Here, even a literal reading of the policy does not require that plaintiff remain within the four walls of his home. And, if the insured could with impunity take his prescribed walks in his yard, the fact that he can and does engage in the same quantum of activity outside the confines of his yard should not disqualify him from benefits. Especially is this the case where, as here, the insured is required by the policy terms to be under a physician’s regular care and the physician prescribes the complained-of "activity for its therapeutic value.
We agree with the Court of Appeals that medical testimony to the effect that plaintiff was essentially free to come and go as he pleased is not determinative of the issue. A fair reading of that testimony is that plaintiff could engage in activity if he felt able to do so, and that he should desist if he experienced fatigue or angina. Such testimony is consistent with modern medical treatment of such heart cases — which is essentially to let the patient pace himself. Furthermore, defendant’s contention on appeal that the extent of plaintiff’s activities should disqualify him from benefits becomes even less convincing in light of defendant’s contention below that plaintiff could and should increase the level of his activities by increasing his reliance on nitroglycerin.
The extent of plaintiffs activities is approximately that of the plaintiffs in the following cases: Cassady v United Ins Co of America, 370 F Supp 388 (WD Ark, 1974); Guarantee Trust Life Ins Co v Patterson, 56 Tenn App 301; 406 SW2d 338 (1966); Manuel v American Income Life Ins Co, 254 La 316; 223 So 2d 817 (1969); Occidental Life Ins Co of California v Vervack, 244 Ark 1231; 429 SW2d 116 (1968); and Tyler v United Ins Co of America, 243 SC 114; 132 SE2d 269 (1963). In each of the above cases, the insured was wholly disabled by heart disease. In each case the treating physician, in conformity with modern medical practice, had prescribed mild, nonproductive activity such as walking to prevent further bodily decline or to relieve anxiety incident to the change in life pattern. In each case, the reviewing courts examined the totality of activity involved, found that the excursions were not for business or personal purposes, and held that tho claimants were substantially confined. Such is the case at bar.
The Court of Appeals is affirmed, with costs to plaintiff.
Kavanagh, C. J., and Williams and Levin, JJ., concurred with Fitzgerald, J. | [
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Fitzgerald, J.
The issue is whether an indigent defendant in a paternity action has a right to appointed counsel. We hold prospectively that he does have such a right.
On November 2, 1971, a complaint was filed against Kenneth Artibee under The Paternity Act in Cheboygan Circuit Court. Because the complainant has been determined eligible for aid to dependent children benefits, a Cheboygan County prosecutor represents her in the conduct of these proceedings. It is not disputed that a warrant issued upon the complaint and that Artibee was arrested. He sought the assistance of counsel, and Attorney Jerry L. Sumpter entered a special appearance in his behalf at the August 15, 1973 arraignment for the purpose of requesting appointment of counsel on the grounds of indigency. This motion was denied. A complaint for superintending control was filed in the Court of Appeals requesting that the trial court be ordered to appoint counsel if Artibee were to establish indigency. The opinion of the Court of Appeals denying relief is reported at 54 Mich App 433; 221 NW2d 225 (1974). We reverse the Court of Appeals and remand this matter to the circuit court for a determination as to indigency and appointment of counsel if indigency is established.
Const 1963, art 1, § 17, embodies this state’s guarantee of due process of law. An analysis of what process is due in a particular proceeding must begin with an examination of the nature of the proceeding and the interests which may be affected by it. Paternity proceedings are quasi-criminal. The interests of the individuals affected are substantial, and the nature of the proceedings is sufficiently complex so as to require counsel to insure a fair trial.
The statute requires that the county prosecute the action if the complainant is without the means to employ an attorney. Both Federal and state law provide a monetary incentive to prosecute. A defendant’s interest in being free from bodily restraint is directly affected from the beginning of the proceedings, since a warrant may issue upon the filing of the complaint. Upon arraignment, a defendant’s failure to make the required recognizance or cash deposit may result in his commitment to the county jail. Although the immediate consequence of the paternity judgment is an order of filiation and for support, the order is enforceable by contempt proceedings. Penalties for contempt include up to one year in the county jail or state prison or until the amount due is fully paid.
Not only will an indigent defendant be less likely to remain free from bodily restraint, but also an uncounseled defendant will be less able to defend himself at trial against an untrue allegation of paternity. In contrast with support ordered following divorce, there is often a sharply disputed factual question concerning the relationship of the parties to a paternity action. The object of the proceedings is to determine with finality the obligation of support, and not merely to determine on the basis of present circumstances an appropriate level of support. An unrepresented paternity defendant may be unaware of his obligation to file notice of alibi if he intends to rely upon that defense. He may be unaware of his statutory right to demand blood tests or unable to analyze the legal implications of the results. In People v Stoeckl, 347 Mich 1; 78 NW2d 640 (1956), it was counsel appointed on the morning of trial for the indigent defendant who made the demand for blood tests and who objected when the prosecutor made impermissible comments to the jury on the defendant’s failure to take the stand. In regard to the impermissible comments, Justice Kelly, 347 Mich at 17-18, said as follows:
"If bastardy proceedings are criminal to that point where the statutory provisions in regard to the right to waive a jury in criminal cases prevail, then the proceedings should be criminal to that point where the prohibition against commenting on defendant’s failure to testify should apply.
"Justice Smith’s opinion on this question could be accepted if this Court would adopt the principle that once the criminal procedural phases of bastardy, such as warrant, bail, et cetera, have served their purposes and the trial commenced, then all criminal aspects disappear and the case should be tried as civil in its nature._
Another consideration is that the determination of paternity will be res judicata for the next 18 years during which the defendant faces a continued threat of arrest and compelled appearances in court to explain any delinquencies, and the threat of imprisonment should the court not be convinced that failure to pay is justified.
The fact that many procedural safeguards attendant to criminal trials have been made applicable to paternity proceedings, and the reality that prosecution is often undertaken at public expense, constitute recognition that the outcome is of great importance both to the defendant and to the state. The Legislature has expressed its opinion that the complainant and her child would not receive a fair trial without benefit of counsel. The same consideration of fundamental fairness should apply to the defendant when faced with the power of the state arrayed against him.
Our decision today is to be applied prospectively to trials taking place on or after the date of publication of this opinion.
The Court of Appeals is reversed and this matter is remanded to the trial court for proceedings consistent with this opinion. The writ of superintending control will issue if necessary. No costs, a public question being involved.
Kavanagh, C. J., and Williams and Levin, JJ., concurred with Fitzgerald, J.
Coleman, J.
(to afRrm). Pursuant to The Paternity Act, Kenneth Artibee was brought before the Cheboygan Circuit Court on August 15, 1973. With counsel appearing specially, plaintiff claimed indigency and requested the appointment of an attorney at county expense. In denying Mr. Artibee’s request (but reserving discretion to appoint coun sel if the interest of justice required), the circuit judge said:
"In this instance we’re not depriving a man of freedom. He’s not going to jail in this particular instance. There is no possibility that he is going to jail. This proceeding is to determine the parentage of a child. He does not have to testify. He can request a blood test to disprove paternity, and which cannot be used to prove paternity. The burden of proof is incumbent upon the petitioner. We’re not placing the man in jeopardy as to any preclusion of his freedom. So I’m not going to appoint counsel at this time. If the trial should develop where it would appear, in the interest of justice, to this Court, that legal counsel would be necessary to be appointed for him, in the interest of justice, at that juncture, I would appoint counsel. At this juncture, I will not appoint counsel.” (Emphasis added.)
Through present counsel, plaintiff also filed a complaint for superintending control in the Court of Appeals. On October 5, 1973, the Court of Appeals ordered the circuit judge to show cause why Artibee should not be granted the relief sought. The specific question was: Do defendants in paternity suits have a right to counsel under either the United States Constitution or the Constitution of the State of Michigan, thereby requiring the appointment of counsel for an indigent defendant?
The Court of Appeals held that an indigent defendant had no such right. Affirming the trial court, Judge Gillis said:
"The direct result of a paternity proceeding is an order of filiation (MCLA 722.717; MSA 25.497), establishing the father-child relationship and specifying the sum the father is required to pay for his child’s support and education. This is the only result of a paternity proceeding and it is wholly consistent with the proceeding’s objectives.” 54 Mich App 445.
The Court determined that procedural due process did not mandate "a right to counsel in paternity proceedings”.
We granted leave to appeal on December 23, 1974. The case became ready for argument and was heard on April 5, 1976. In the interim, plaintiff’s counsel filed two motions for costs, expenses and attorney fees, the first without an affidavit of indigency because Mr. Artibee’s whereabouts were unknown. That motion was denied. The second is held in abeyance pending final disposition of the case (order of March 31, 1976).
Because of the sweeping implications of our decision, which could cut across many fields of civil jurisprudence, this analysis will be limited to the facts now before the Court and the specific proceeding involved.
I.
Much argument centers on whether a paternity act proceeding is civil, quasi-civil or quasi-criminal. Plaintiff’s counsel colorfully states his opinion that "[pjroper labeling is often nauseating”. My colleagues call the proceedings "quasi-criminal” and would appoint counsel based on a "consideration of fundamental fairness” because Mr. Artibee is "faced with the power of the state arrayed against him”.
These proceedings do not require the application of Argersinger v Hamlin, 407 US 25; 92 S Ct 2006; 32 L Ed 2d 530 (1972), a criminal case which held that "absent a knowing and intelligent waiver no person may be imprisoned for any offense * * * unless he was represented by counsel at his trial”. Also see People v Studaker, 387 Mich 698; 199 NW2d 177 (1972). The trial judge specifically excluded confinement as a possible action.
It is suggested in the thoughtful and comprehensive brief of amicus curiae Legal Services of Eastern Michigan that Argersinger does not specifically exclude property rights from its due process requirements for counsel. It speaks only to imprisonment for an offense. The reasoning employed by amicus opens wide the door to appointment of county-paid counsel in many other types of civil cases. It seems wise at this juncture to stay within the United States Supreme Court mandates in Argersinger rather than add to them in Michigan.
Such an important matter requires more study and planning than afforded in this case if we are to avoid setting off an avalanche by moving one key stone.
The focus of the act is an important ingredient to be considered.
In a separate opinion in Reist v Bay Circuit Judge, 396 Mich 326, 355; 241 NW2d 55 (1976), we responded "to the constitutional analysis because it incorrectly uses a criminal law focus to analyze proceedings designed to protect the child”. I believe the majority opinion focuses on the distant collateral possibility that Mr. Artibee might be jailed under the contempt statute. This overlooks the statutory objective of conferring "upon the circuit courts jurisdiction over proceedings to compel and provide support of children born out of wedlock”. It is statutory policy that "parents of a child so born out of wedlock are liable for the necessary support and education of the child”.
We have analyzed the nature of these proceedings. In Cross v People, 8 Mich 113-114 (1860), the Court said:
"The complainant is, in all cases, a witness; no costs follow the judgment, and the issue to be tried is the paternity of the child with which the complainant is pregnant, or of which she has been delivered. No judgment known to the common law follows the verdict, but, if found guilty, the defendant is adjudged to be the father of the child, and made chargeable with its maintenance with the assistance of the mother, in such manner as the court shall order * * * .”
Justice Campbell in Semon v People, 42 Mich 141, 142; 3 NW 304 (1879), called the proceedings "special and peculiar”. He said the judgment "if it can be properly called a judgment, involves none but civil consequences”. The defendant’s responsibility is to be established "by a clear preponderance of the evidence” rather than "beyond a reasonable doubt”, a most important observation in this context.
In Sutfin v People, 43 Mich 37, 38, 39; 4 NW 509 (1880), the child (allegedly conceived in Michigan) lived in Indiana with the mother. The proceedings were described as "partly for the benefit of the complainant * * * and partly for the purpose of indemnifying the public”. However, the "primary object and purpose of the act” was "the support of the bastard child * * * to prevent its becoming a charge upon the public”. The "benefit to the mother * * * is secondary only”.
Similar is Waite v Washington, 44 Mich 388, 389; 6 NW 874 (1880) which found that the statute’s "primary object * * * is the protection of the public against all possible danger of being obliged to support the child”. The proceedings are "for the benefit and protection of the public”.
Justice Campbell wrote the decision of In the Matter of Frank Cannon, 47 Mich 481, 485; 11 NW 280 (1882), where the defendant had been extradited for a charge of seduction and then arrested under the bastardy act. The Court said his confinement was illegal:
"Bastardy proceedings, although of a mixed character, involve no indictable offence on which a conviction could be had in their course, and they are not criminal proceedings in the proper sense of the term. It is not pretended that any demand of extradition could be made on such a charge. Our own decisions have settled the character of such proceedings as not criminal. Cross v People, 8 Mich 113; Semon v People, 42 Mich 141; Sutfin v People, 43 Mich 37; Waite v Washington, 44 Mich 338”.
The case of People v Harty, 49 Mich 490; 13 NW 829 (1882), was tried in the Superior Court which had jurisdiction only over crimes, misdemeanors and offenses. The Court said bastardy proceedings "are not * * * criminal in any correct sense and they do not recognize the matter they deal with as a crime or misdemeanor * * * and the term 'offenses’ does not change the effect”. The proceedings were quashed.
The alleged father in Cady v St Clair Circuit Judge, 139 Mich 618, 620; 102 NW 1025 (1905), had been discharged from his arrest. The prosecutor asked the Court to order the circuit judge to set aside the discharge. The Court granted relief:
"It is true that such proceedings are special and statutory, and are strictly neither civil nor criminal in nature. But it is contemplated, and is essential, that control be had of the person of the respondent. A recognizance is taken as in criminal cases, and is forfeited, as in criminal cases, for nonappearance. For a failure to recognize he may be committed.”
Although summons may issue to bring a defendant in a paternity action before the court, there is understandable reluctance on the part of some alleged fathers to appear without the issuance of a warrant. In order to carry out the public policy, the court must have control of the person alleged to be the father. It is for this purpose that a warrant may issue. Respondent is not brought before the court for punishment or sentence of confinement but solely to determine the question of paternity and related responsibilities.
The defendant in People v Gill, 247 Mich 479, 480; 226 NW 214 (1929), made an offer of settlement. It was rejected and then introduced into evidence as tending to show his guilt. The Court said the "same considerations for rejecting offers of compromise as evidence of guilt are present as in ordinary civil cases”. To permit introduction "would be inimical to the policy of the law to encourage settlements, discourage litigation, and afford the individual fair opportunity to buy his peace”.
Two cases which arose out of the prior act are cited by my colleagues to emphasize its criminal aspect. One issue in People v Stoeckl, 347 Mich 1, 17; 78 NW2d 640 (1956) concerned a comment made about defendant’s failure to testify. The majority said if the proceeding is so far criminal as to invoke the statute permitting waiver of jury trials, then they "should be criminal to the point where the prohibition against commenting on defendant’s failure to testify should apply”. Also see People v McFadden, 347 Mich 357; 79 NW2d 869 (1956).
Under the revised act, the jury provisions were clarified. In Romain v Peters, 9 Mich App 60, 63; 155 NW2d 700 (1967), the Court of Appeals had to determine "how the legislature viewed the jury requirement under the paternity act”. The new act did not provide for trial by jury unless specifically requested by one of the parties. The Court said this "is unmistakably the jury requirement in civil cases” and held that 10 out of 12 members of the jury could bring in a verdict (now 5 out of 6).
Although the cases are not uniform, some themes emerge. Most important is that these actions are not punitive. The goal is to have the parents rather than the state support the child. The state has a legitimate interest in insuring that the individuals fulfill parental obligations.
II.
Plaintiffs case rests heavily upon what is perceived to be the criminal aspects of the case. Particular emphasis is placed upon two factors. (1) A warrant was issued and plaintiff was arrested and brought before the court. Although he was not placed in confinement, he could have been had the judge ordered a recognizance and had the then defendant failed to furnish it or had he forfeited it. (2) If an order of filiation had resulted and if support had been ordered and if Mr. Artibee violated the order, he could in the future have been brought before the court for contempt proceedings.
These arguments are primarily based upon the assumption that the defendant might not comply with a court order. Paternity is not an "offense” for which one "may be imprisoned”.
It is important, moreover, to consider and to place in balance the characteristics of a civil proceeding present in a paternity action. Among civil aspects are:
1. Confinement or costs are excluded as possible verdicts.
2. Focus is on the support of the child and the public welfare in keeping the child from becoming a public charge.
3. No jury is required unless requested by a party.
4. A vote of five from a jury of six is required for a verdict of paternity.
5. A verdict is based upon the standard of "preponderance of the evidence” rather than "beyond a reasonable doubt”.
6. There is no presumption of innocence.
7. A defendant could not be tried in a court of criminal jurisdiction only.
8. A defendant cannot be extradited.
9. A defendant cannot be fingerprinted or photographed, nor have his name listed in criminal records.
10. Settlement may be effected.
11. The child may be conceived and born in another state and both mother and child reside out of the state but the trial can take place in the Michigan county where the alleged father resides.
12. Summons may issue instead of a warrant.
III.
In the final analysis, a paternity action under the current statute is primarily civil in nature. It is a special legislative creation.
In this case, there was no confinement and the judge assured plaintiff that there would be none. If the interest of justice required, he would appoint an attorney.
The purpose of most civil cases is to establish financial, or contractual obligations. These proceedings are to bring Mr. Artibee before the court to determine whether he is the father of the child, and if so, what, if any, financial support should be ordered.
The arguments in this case have gone well beyond the point of law which the facts present.
I would decide the case on the facts before us and affirm the result reached by the Court of Appeals.
Lindemer and Ryan, JJ., concurred with Coleman, J.
MCLA 722.711 et seq.; MSA 25.491 etseq.
"* See Const 1908, art 2, § 16.—Reporter.”
People v McFadden, 347 Mich 357; 79 NW2d 869 (1956).
MCLA 722.714(c); MSA 25.494(c).
As a condition to receipt of Federal aid to families with dependent children (AFDC) moneys, the state must implement a plan to establish the paternity of any child born out of wedlock on behalf of whom aid is claimed. 42 USC 602a(27), 654(4). The costs of such a program are subsidized by Federal funds. 42 USC 655. Once paternity is established, support payments made by fathers on behalf of children receiving public assistance are transmitted by the Friend of the Court to the state pursuant to MCLA 722.718; MSA 25.498.
MCLA 722.714(e); MSA 25.494(e).
MCLA 722.719(c); MSA 25.499(c).
MCLA 722.711 et seq.; MSA 25.491 etseq.
54 Mich App 433; 221 NW2d 225 (1974).
In the same manner, counsel is not appointed for many petty offenders in district court.
MCLA 722.712; MSA 25.492.
Although the Sutñn and Waite cases describe the act as primarily protecting the public interest, the Court in People, ex rel Pangborn v Smith, 65 Mich 1, 4; 31 NW 599 (1887), said the "complainant is also interested in the proceedings and they are largely for her benefit”. However, the Court was reviewing the circuit court’s quashing of the complaint and this comment has the character of an aside.
MCLA 722.714(e); MSA 25.494(e).
See Cady, supra. | [
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D. E. Holbrook, Jr., J.
Plaintiff filed a medical malpractice action against Dr. Earl Gonyaw, an osteopathic physician, and a negligence action against Martin Place Hospital. The suits alleged that Dr. Gonyaw failed to use a requisite standard of care in treating the plaintiff’s back injury and that the hospital was negligent in allowing Dr. Gonyaw to be a staff member at the hospital. At the close of plaintiff’s proof, following a seven-day trial, the trial court granted the hospital’s motion for a directed verdict of no cause of action. After deliberating, the jury returned a verdict of no cause of action in favor of Dr. Gonyaw. From the judgments entered on these two verdicts, plaintiff appeals as of right.
I
Plaintiff, on appeal, claims that the trial court improperly limited his examination of Dr. Gonyaw. He further claims that the*trial court erred in not allowing him to make a separate record of what he would prove if he were allowed a "full” examination of Dr. Gonyaw. Such a record is necessary for this court to determine if there was any prejudice caused by the trial court limiting the plaintiffs examination of Dr. Gonyaw. Ruhala v Roby, 379 Mich 102, 117; 150 NW2d 146 (1967), cf. Moynes v Applebaum, 218 Mich 198, 202; 187 NW 241 (1922).
As his first witness plaintiff sought to call Dr. Gonyaw under the adverse party witness statute. MCLA 600.2161; MSA 27A.2161. This statute permits the calling party to treat an adverse party as if he had been called to testify on his own behalf. He may be asked questions as if on cross-examination, but more importantly he may be impeached. Without the aid of this statute it becomes impractical to call the opposing party since the calling party would be bound by his answers. 3A Wigmore, Evidence (Chadbourn rev), § 916. See McCormick, Evidence (2d ed), § 38, p 77.
The purpose of the rule is to allow the truth to be brought out with greater regularity by eliminating a technical rule of evidence. Detroit v Porath, 271 Mich 42, 75; 260 NW 114 (1935), Waller v Sloan, 225 Mich 600, 603-605; 196 NW 347 (1923), Giacobazzi v Fetzer, 6 Mich App 308, 313; 149 NW2d 222 (1967), lv den 379 Mich 770 (1967). By allowing the calling party to initially "cross-examine” the opposing party, all the facts can be more readily revealed. With impeachment the calling party has a ready tool to. prevent and expose any twisting of the facts by the adverse party through the introduction of prior inconsistent statements, for example. The argument that allowing impeachment will coerce the witness into giving favorable testimony to the calling party does not apply when the adverse party is the witness since his interests directly contradict the calling party’s. 3A Wigmore, Evidence, supra, 4 Jones, Evidence (6th ed), § 26.13.
Although Dr. Gonyaw is clearly an adverse party, who may be called under the statute, when he was called plaintiffs counsel failed to announce that he was being called under the statute. Ruhala v Roby, supra, at 111, Mally v Excelsior Wrapper Co, 181 Mich 568, 574-575; 148 NW 443 (1914). The purpose behind the rule requiring the announcement of the reliance upon the statute is to give the trial court and the adverse party’s counsel warning as to the mode of questioning. This will prevent unnecessary objections by the adverse party’s counsel, which can only create the suspicion in the jurors’ minds that the witness is attempting to hide something.
Because the announcement rule runs counter to the principle of the adverse party witness statute the Supreme Court carved out an exception in Walter v Detroit, J & C R Co, 191 Mich 181; 157 NW 414 (1916). In that case they ruled that the announcement was timely even though counsel had begun to question the adverse party witness since the questions related solely to preliminary matters. In the present case plaintiffs counsel began his questioning of Dr. Gonyaw under the statute without making any announcement about the statute. The first few questions were the normal qualifying questions and then the plaintiffs counsel began to question the doctor about his qualifications. Shortly thereafter, during a confer ence in chambers, Dr. Gonyaw’s counsel objected to this form of questioning stating that no announcement had been made as required. After hearing extensive argument the trial court ruled that the questions concerning the doctor’s qualifications were not preliminary and thus plaintiffs counsel was foreclosed from questioning under the statute for failing to make his announcement.
In reaching its decision, the record indicates that the trial court gave careful consideration to the questions asked by plaintiffs counsel and the genuine issues in the case. The questions went to Dr. Gonyaw’s training. One of the central issues in the case was whether Dr. Gonyaw was qualified to practice neurosurgery. Although educational qualifications are normally merely preliminary questions of a medical witness, in this case they go to the very heart of the case. We find that the trial court correctly ruled that the questions did not fall within the category of preliminary questions.
The Supreme Court has also created another exception to the announcement rule to lessen the harshness of the rule. In Moynes v Applebaum, supra, the Court stated that it was not reversible error to permit a late announcement under the adverse party witness statute when no prejudice to the opposing party was shown. By holding that it was not reversible error, the Supreme Court implied that it was error to allow the late announcement. However, in reviewing the facts of that particular case, it found the error harmless since the testimony had only aided the opposing party. In the present case by sustaining the defendants’ timely objection to the continued reliance on the statute without an announcement, the trial court prevented error. Since there is no error this Court is not required to determine if it is harmless. Since there is no available exception to the announcement rule, the trial court did not err in forbidding, the plaintiff to use the adverse party witness statute in questioning Dr. Gonyaw.
Since it was not error to forbid the questioning of Dr. Gonyaw under the statute, the trial court did not err in denying plaintiff the right to make a separate record of what he would prove if allowed to use the statute. In reality, the statute only aids a party collaterally as the trial court noted:
"You can get out everything from [sic] your client, from this witness [with direct examination] that you could get out of cross-examination, but I have found very few lawyers have the ability to do it, but it is a very easy way to do it * * * . You can get statements from this witness that are going to be satisfactory- to you”.
Furthermore, although Dr. Gonyaw could not be directly impeached except under the statute, the plaintiff was free to contradict him. Jones v Pere Marquette R Co, 168 Mich 1, 15; 133 NW 993 (1911). The trial court also stated that if Dr. Gonyaw became evasive in answering plaintiff’s questions, it would declare the doctor a hostile witness.
II
Plaintiff next claims that the trial court improperly drew a distinction between osteopathic physicians and medical doctors. In support of this contention he points out several instances during the trial where the trial court prevented the plaintiff from asking questions concerning the differences in the training between osteopathic and medical doctors. The plaintiff also claims the trial court continued the distinction by instructing the jury that the relevant malpractice standard was for osteopathic neurosurgeons and not simply neurosurgeons.
Plaintiff bases his argument on the fact that when the incident occurred Dr. Gonyaw and his neurosurgical instructor were the only practicing osteopathic neurosurgeons in Michigan. His contention is that these two men should not be entitled to establish their own standard of care from which to defend malpractice actions. While plaintiff’s argument has merit, Michigan recognizes that specialists should be held to a national standard of care according to their school of medicine. See Naccarato v Grob, 384 Mich 248; 180 NW2d 788 (1970).
Plaintiff also argues that a patient has the right to expect the same standard of care from any person practicing medicine, whether the person’s training is osteopathic or medical. In his appellate brief, plaintiff points out that the osteopathic and medical schools of medicine are slowly intergrating. Dr. Gonyaw’s neurosurgical instructor testified that the mechanics of neurosurgery were similar between the two branches of medicine, but that the philosophies of the practitioners of the two branches differ. In fact, the instructor testified that he received his neurosurgical training in France under the guidance of medical doctors. It was further revealed that Dr. Gonyaw had studied neurosurgery almost exclusively from textbooks written by medical doctors.
Furthermore, the American Medical Association, the national association of medical doctors, is accepting osteopathic physicians that have met certain requirements into membership. Ten medical speciality boards, including neurology, have begun certifying osteopaths provided they have com pleted American Medical Association approved internships and residencies. The merger is occurring at the training level also; the medical school at Michigan State University trains both future medical doctors and osteopathic physicians in the same classes. See Wheatley v Heideman, 251 Iowa 695; 102 NW2d 343, 350-351 (1960).
However, no matter how appealing and convincing we find plaintiffs argument, it is for the Supreme Court and not the Court of Appeals to change the law of the State of Michigan. This Court is without authority to overrule decisions of the Supreme Court. Siirila v Barrios, 58 Mich App 721, 722-723; 228 NW2d 801 (1975), Maxwell v Maxwell, 15 Mich App 607, 618; 167 NW2d 114 (1969), lv den, 381 Mich 815 (1969). In Bryant v Biggs, 331 Mich 64; 49 NW2d 63 (1951), the Supreme Court said that the osteopathic and medical schools of medicine ■ have their own standards and practices and should not be compared. Although the Supreme Court modified the rule in Frazier v Hurd, 380 Mich 291; 157 NW2d 249 (1968), it is still the law of the State of Michigan until it is changed by the Supreme Court or the Legislature.
All that Frazier v Hurd, supra, at 297, accomplished was to allow expert testimony by a medical doctor in a malpractice case involving an osteopathic physician. It did not create a single standard of care for the two schools of medicine. This is supported by the legislative determination that the two groups can be admitted to practice their profession in Michigan on different bases, even if the two professions have similar goals. The following statement "best” explains the current state of the law regarding the comparability of the two schools of medicine:
"It may be assumed that plaintiffs decedent was aware that defendants were osteopathic practitioners and for reasons satisfactory to himself he sought treatment from them for the cure or alleviation of his condition. In doing so he was, of course, charged with knowledge of the fact that he would follow the methods and practices observed in their system of treatment. Plaintiff is not in a position to complain that the methods and standards of practice customarily observed by another school were not followed.” Bryant v Biggs, supra, at 72-73.
Plaintiffs principal expert witness was a medical doctor. In accordance with Frazier v Hurd, supra, he was allowed to testify as to what in his opinion competent neurosurgical procedures at the time were. He was qualified through the testimony of Dr. Gonyaw’s instructor that medical and osteopathic neurosurgical procedures were similar. There also was an indication that the medical doctor had observed osteopathic physicians perform neurosurgery, although this was not pursued.
Following the expert’s testimony concerning what should have been done, plaintiff’s counsel attempted to have the expert compare the training received by medical doctors and osteopathic physicians. However, Frazier v Hurd, supra, does not permit a member of one school of medicine to comment on the training received by members of the other school of medicine. It only allows a member of one school of medicine to be an expert witness at a malpractice trial of a member of the other school of medicine. In any event, plaintiff was able to indirectly bring out the desired comparison in training when his principal expert witness detailed his training.
Under the present state of the law as enunciated by the Michigan Supreme Court and the Michigan Legislature, the trial court did not err in prohibiting a medical doctor from commenting on the osteopathic standard of care or comparing a medical doctor’s and osteopathic physician’s training. Furthermore, it did not err by instructing the jury that it was to apply an osteopathic neurosurgeon’s standard of care rather than simply a neurosurgeon’s standard of care.
Ill
Plaintiff finally claims that the trial court erred in granting Martin Place Hospital a directed verdict of no cause of action. This is based on the theory that a reasonable and prudent hospital would have determined that Dr. Gonyaw had inadequate training to be allowed to practice neurosurgery upon its premises. It is axiomatic that when this Court reviews a motion for a directed verdict the facts must be viewed in the light most favorable to the nonmoving party. Kieft v Barr, 391 Mich 77; 214 NW2d 838 (1974), The Vogue v Shopping Centers, Inc, 58 Mich App 421; 228 NW2d 403 (1975), Oliver v St Clair Metal Products Co, 45 Mich App 242; 206 NW2d 444 (1973).
In questioning the hospital’s administrator, plaintiff brought out that the hospital had not verified the facts on Dr. Gonyaw’s application for staff privileges. There were no letters in the file cross-checking his references or his past associations. Neither were there notations of telephone calls to his references or past associates as the administrator testified there should have been if such telephone calls had been made.
One of the hospital’s primary functions is to screen its staff of physicians to "insure” that only competent physicians are allowed to practice in the hospital. Purcell v Zimbelman, 18 Ariz App 75; 500 P2d 335, 341 (1972), Joiner v Mitchell County Hospital Authority, 125 Ga App 1; 186 SE2d 307, 308; 51 ALR3d 976 (1971), aff'd, 229 Ga 140; 189 SE2d 412 (1972), Darling v Charleston Community Memorial Hospital, 33 Ill 2d 326; 211 NE2d 253, 260-261; 14 ALR3d 860 (1965), cert den, 383 US 946; 86 S Ct 1204; 16 L Ed 2d 209 (1966), see also Annotation, 51 ALR3d 981. In this regard the hospital’s administrator admitted that the American Osteopathic Associations’ guidelines for checking a physician’s credentials were valid. Furthermore, he stated that Martin Place Hospital attempted to follow them although in this case he reluctantly agreed that it seemed that the hospital did not.
Viewing the evidence in the light most favorable to the plaintiff, it is clear that the hospital did not act as a reasonably prudent hospital in checking Dr. Gonyaw’s qualifications to be a staff member at the hospital. In fact they did not even follow their normal procedures. However, before the hospital can be held liable for negligently allowing Dr. Gonyaw to practice in the hospital, it must be shown that even if the hospital had made the recommended and acknowledged checks they would have denied staff privileges to Dr. Gonyaw. Cf. Purcell v Zimbelman, supra, 500 P2d at 342. On this point there is no evidence in support of plaintiff’s contention.
Had Martin Place Hospital checked Dr. Gonyaw’s qualifications they would have found him to be a qualified osteopathic neurosurgeon. He successfully completed a residency approved by the American Osteopathic Association. Although his application incorrectly stated that his neurosurgical residency had been from 1965 to 1968, he did begin his neurosurgical training in 1965. The training was in the form of a preceptorship with the same doctor that supervised his residency. This form of training was initially used because Dr. Gonyaw entered his neurosurgical training before the American Osteopathic Association had set up a formal neurosurgical residency program. He was given credit for this training by the American Osteopathic Association in certifying him as a neurosurgeon.
Since Dr. Gonyaw has met the requirements to be an osteopathic neurosurgeon, any further arguments that the plaintiff makes regarding the inadequacy of Dr. Gonyaw’s training must be regarding a comparison of training received by medical and osteopathic neurosurgeons. However, since we have already concluded in part II of this opinion that any testimony comparing osteopathic and medical training is inappropriate, it is impossible to introduce evidence to support this point. Although the plaintiff proved that the hospital failed to exercise reasonable care in checking Dr. Gonyaw’s application for staff privileges, he failed to prove that if the hospital had made a reasonable check it would have rejected his application. Purcell v Zimbelman, supra. Consequently, the trial court did not err in granting a directed verdict in favor of Martin Place Hospital.
Affirmed. Costs to defendants.
MCLA 600.2161; MSA 27A.2161, provides in relevant part:
"In any suit or proceeding in any court in this state, either party, if he shall call as a witness in his behalf, the opposite party, * * * shall have the right to cross-examine such witness the same as if he were called by the opposite party; and the answers of such witness shall not interfere with the right of such party to introduce evidence upon any issue involved in such suit or proceeding, and the party so calling and examining such witness shall not be bound to accept such answers as true.”
As a general rule, practitioners of a school of medicine should be judged by the standards of the school. Janssen v Mulder, 232 Mich 183; 205 NW 159; 25 NCCA 248 (1925), see also Annotation, 85 ALR2d 1022, 1023-1026, 61 Am Jur 2d, Physicians, Surgeons, and Other Healers, § 113, pp 235-236, 70 CJS, Physicians and Surgeons, § 44, p 953. In Bryant v Biggs, 331 Mich 64, 77; 49 NW2d 63 (1951), the Supreme Court rejected the proposition set forth in Cook v Moats, 121 Neb 769; 238 NW 529; 78 ALR 694 (1931), that in certain cases osteopathic and medical standards should be the same.
However, since that time a growing number of jurisdictions have begun to recognize an exception to the general rule when the standards are similar. See, e.g., Hundley v St Francis Hospital, 161 Cal App 2d 800; 327 P2d 131, 134; 80 ALR2d 360 (1958), James v Falk, 226 Ore 535; 360 P2d 546, 548; 85 ALR2d 1014 (1961), Ison v McFall, 55 Tenn App 326; 400 SW2d 243, 257-258 (1964), Hart v Van Zandt, 399 SW2d 791, 797-798 (Tex, 1965), accord, Musachia v Terry, 140 So 2d 605, 607 (Fla App, 1962), see also Annotation, 85 ALR2d 1022, 1026-1028. In the present case there was testimony from an osteopath that the procedures used in neurosurgery were similar between osteopaths and medical doctors. Where the procedures are similar, it is logical to hold both schools of medicine to the same standard of care. James v Falk, supra.
The applicable standards for licensing medical doctors are set forth in MCLA 338.53; MSA 14.533. On the other hand the applicable standards for licensing osteopathic physicians in Michigan are in MCLA 338.102; MSA 14.572. | [
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R. B. Burns, J.
We are called upon in this case to consider two independent questions of first impression in this jurisdiction. First, we must construe the meaning of MCLA 423.307(b); MSA 17.458(7)(b), concerning a requirement of a written complaint as a condition precedent to the initiation of proceedings before the Michigan Civil Rights Commission (hereinafter "CRC”), plaintiff-appellant in this action. Second, we must consider the impact of a contrary arbitration decision upon a discharged employee’s alternative access to relief via the CRC. Our analysis requires us to reverse the Ingham County Circuit Court’s grant of defendant Chrysler Corporation’s (hereinafter. "Chrysler”) motion for a summary judgment.
Elmer Boyd, a black, was suspended from his job at Chrysler on March 25, 1968. Two days later, March 27, Mr. Boyd filed a complaint with the CRC including an allegation of racial discrimination in employment. On April 25, 1968, Chrysler discharged Mr. Boyd for failure to exert a normal effort to do his job. Three days later, April 28, Mr. Boyd filed a union grievance charging "unjust discharge”. The grievance progressed through prescribed steps to binding arbitration. On December 26, 1968, the arbitrator concluded that Mr. Boyd had been properly discharged for deliberately failing to exert a normal effort to do his job.
On October 20, 1970, the CRC issued a "Charge” or formal complaint, on behalf of Mr. Boyd against Chrysler alleging that race was a factor in his suspension and discharge. The CRC held a hearing before a hearing referee on January 18, February 8, 9, 11, and 12, 1971. On July 29, 1971, the referee issued his report containing the recommendation that Mr. Boyd’s complaint be dismissed. On January 17, 1972, the CRC issued findings of fact and a final order contravening the referee and concluding that race had been a factor in the discharge of Mr. Boyd.
On February 22, 1972, Chrysler filed a petition for review and claim of appeal from the January 17 order in the Ingham County Circuit Court. Before trial Chrysler moved for a summary judgment on the ground that Mr. Boyd had elected an arbitration remedy for his discharge to the preclusion of CRC proceedings. After argument, the court, at its own initiative, wrote the CRC requesting the complaint of Mr. Boyd relating to his April 25, 1968 discharge. In response the CRC indicated .that no request had been made of Mr. Boyd to file a second complaint, that the CRC felt that no such complaint was necessary, that its conciliation efforts and hearings had begun subsequent to the discharge and focused thereupon, and that the CRC did not require a new complaint where the subject matter of a cause related to an existing complaint. Chrysler responded by stating that it would not raise as a defense the failure to have the discharge specifically covered by a complaint.
On May 23, 1973, without further argument, the court granted Chrysler’s motion for summary judgment setting aside the CRC’s order for two reasons: (1) The CRC acted without authority because Mr. Boyd had not filed a written complaint setting forth the particulars of his discharge; and (2) Mr. Boyd, by pursuing his contract grievance procedure to a determination, caused a binding decision to be made preclusive of CRC action to the contrary.
We first consider the question of the nature of a complaint necessary to trigger the involvement of the CRC, and note at the outset what is obvious: the commission is a constitutionally-created entity deriving its powers directly from the people. The full text of the relevant constitutional provisions reads as follows:
Article 1, § 2.
"No person shall be denied the equal protection of the laws; nor shall any person be denied the enjoyment of his civil or political rights or be discriminated against in the exercise thereof because of religion, race, color or national origin. The legislature shall implement this section by appropriate legislation.”
Article 5, § 29.
"There is hereby established a civil rights commission which shall consist of eight persons, not more than four of whom shall be members of the same political party, who shall be appointed by the governor, by and with the advice and consent of the senate, for four-year terms not more than two of which shall expire in the same year. It shall be the duty of the commission in a manner which may be prescribed by law to investigate alleged discrimination against any person because of religion, race, color or national origin in the enjoyment of the civil rights guaranteed by law and by this constitution, and to secure the equal protection of such civil rights without such discrimination. The legislature shall provide an annual appropriation for the effective operation of the commission.
"The commission shall have power, in accordance with the provisions of this constitution and of general laws governing administrative agencies, to promulgate rules and regulations for its own procedures, to hold hearings, administer oaths, through court authorization to require the attendance of witnesses and the submission of records, to take testimony, and to issue appropriate orders. The commission shall have other powers provided by law to carry out its purposes. Nothing contained in this section shall be construed to diminish the right of any party to direct and immediate legal or equitable remedies in the courts of this state.
"Appeals from final orders of the commission, including cease and desist orders and refusals to issue complaints, shall be tried de novo before the circuit court having jurisdiction provided by law.”
It is necessary to understand the antecedents of the CRC in order to properly conceive the issue considered herein. The year 1955 saw enactment of the Fair Employment Practices Act, MCLA 423.301 et seq.; MSA 17.458(1) et seq., defining a civil right to employment without discrimination and creating the Fair Employment Practices Commission to administer the act. The new constitution became effective on January 1, 1964, and, in anticipation, the Legislature enacted MCLA 37.1 et seq.; MSA 3.548(1) et seq., to take effect on the same day. This statute amended the 1955 law by substituting all references to the former FEPC with appropriate references to the new CRC, but leaving intact those sections of the 1955 law defining an unfair employment practice and the procedures available to persons claiming to be aggrieved by such practice. Of specific import is the language of MCLA 37.4; MSA 3.548(4), that "a complaint alleging an unlawful discriminatory practice is subject to the same procedure as a complaint * * * under * * * sections 423.301 to 423.311”. The test of the relevant portion, MCLA 423.307(b); MSA 17.458(7)(b) reads as follows:
"Any individual claiming to be aggrieved by an alleged unlawful employment practice may, by himself or his agent, make, sign and file with the board, within 90 days after the alleged act of discrimination, a verified complaint in writing, which shall state the name and address of the person, employer, labor organization or employment agency alleged to have committed the unlawful employment practice complained of, and which shall set forth the particulars thereof and contain such other information as may be required by the board. Any employer whose employees, or some of whom, refuse or threaten to refuse to cooperate with the provisions of this act, may file with the board a verified complaint asking for assistance by conciliation or other remedial action.”
The critical language in the 1963 Constitution, article 5, § 29, is that it shall be the CRC’s duty "in a manner which may be prescribed by law” to investigate alleged discrimination and to secure the equal protection of the law. Focusing on the constitutional origin of the CRC, we need determine if MCLA 423.307 and MCLA 37.4 represent a permissible exercise of the Legislature’s restricted authority to prescribe "the manner” of the CRC’s operation, or if these statutes impose a possibly unconstitutional jurisdictional limitation upon the commission. Preliminarily, a determination of the apparent intent of the constitutional framers as to any legislative authority or influence over the CRC is mandatory.
The extensive and impassioned convention debate over the proposals that eventually merged into article 5, § 29 was almost exclusively concerned with the potential role of the Legislature vis-a-vis the projected commission. Proponents of the commission repeatedly observed that it "has been bottled up in committee” for "10 long years, in this state legislature”. 2 Official Record, Constitutional Convention 1961, p 2004 (delegate Hodges) (hereinafter "Record”). Others worried lest "our legislature disappear * * * completely beneath the waves”. 2 Record 1997 (delegate Heideman). As expressly recognized: "It’s a question of how much you want to require the legislature to do, or to require it by the constitution.” 2 Record 1990 (delegate Martin).
The efforts of the proponents united around an amendment presented by delegate Austin et al. The ultimate goal was to provide a "self executing” commission, such that "whether the legisla ture acts or not we will have a civil rights commission”. 2 Record 1983 (delegate Austin). Opposition oriented to "not leaving that completely free from the legislature”. 2 Record 1988 (delegate Staiger). After long debate and a series of amendments by the Republican majority, the result was summarized by delegate Nord as follows:
"We have to recognize that we have given the legislature several vetoes already * * * . If there are no funds coming from the legislature, there is not going to be much function of the commission. Secondly, we provide the legislature may provide for methods of implementing these duties. They may provide that. Thirdly, we now have provided that the legislature may, if they wish, change the powers. There are 3 legislative checks already.” 2 Record 1998.
Delegate Martin, a proponent and chairman of the committee that advanced the CRC proposal, observed that "[t]his is the barest kind of bones of authority to operate. It does not specify how, and it would undoubtedly fall to the legislature to implement this with legislation, filling in gaps as to what needed to be done.” 2 Record 1990. Thus, it is manifest that the framers intended legislative participation sufficient to "make the activities of this administrative agency subject to the same limitations as other administrative agencies”. 2 Record 1994 (delegate Martin).
We must determine if MCLA 423.307(b); MSA 17.458(7)(b) is such legislative participation as is permissible by prescribing the "manner” but not proscribing the ultimate power of the CRC to act. In this regard we must construe the regrettably imprecise language of the statute, particularly the provision that an aggrieved individual "may” make a verified complaint in writing.
Appellant contends that the use of the "permissive word 'may’ * * * is directory rather than mandatory”, but also notes that judicial construction of statutory terminology has evolved such that "[c]ourts have not infrequently construed the word 'may’ to mean 'shall’ and vice versa”. Smith v School District No 6, Fractional, Amber Township, 241 Mich 366, 368-369; 217 NW 15 (1928). We believe that the overall form of MCLA 423.307 evidences the legislative intent to make a written complaint mandatory.
It is obvious that the intent of MCLA 423.307 is obscured by some inconsistent language. The "verified complaint in writing” of subsection (b) becomes a "charge” made "by any individual” in subsection (d). In its brief, appellant concludes:
"Obviously, had the Legislature intended the written, verified complaint to constitute the exclusive method for commencing proceedings before the Commission, it would have consistently used the term 'complaint.’ ”
This conclusion is not convincing. The continuing headnote allusion "Same” in subsections (c) and (d) makes it more likely that the term "charge” in subsection (d) is a specific reference to the "verified complaint in writing” denoted in subsection (b). Further, it is unlikely that the Legislature would have prescribed with great specificity .eight subsections of procedure derivative from subsection (b) had it intended anything less than a "verified complaint in writing”. We interpret the word "may” to here mean "shall”: more specifically, that if an individual considers himself aggrieved by an unlawful employment practice he may decide to bring a complaint; and, if he so decides, he shall bring a verified complaint in writing.
Appellant maintains in the alternative that, if MCLA 423.307(b) is construed as mandatory, it is unconstitutional as a legislative abrogation of the constitutionally created jurisdiction of the CRC. Again, we are not convinced. Instructive is the language of Title VII creating the Equal Employment Opportunity Commission, the Federal agency of parallel function to the CRC, indicating indisputably that a written complaint before that body is absolutely mandatory: "Charges shall be in writing under oath or affirmation * * * .” 42 USC 2000e-5. Recalling the specific language of article 5, § 29, "in accordance with * * * general laws governing administrative agencies”, it is concluded that subsection (b) as construed is typical and not unconstitutionally onerous as a legislative block on the jurisdiction of CRC to act. Appellant’s contention is misfocused; subsection (b) does not limit the CRC’s jurisdiction, but limits the exercise of that jurisdiction to situations where a written complaint has been filed. As such it represents a legitimate legislative definition of "the manner” of the CRC’s functioning. Borrowing a colloquial reference, we think it apparent that the framers intended a "watch dog” rather than a "bird dog” agency. The concern was that the commission not "freewheel”. 2 Record 1992 (delegate Martin).
Most compelling to us is the opinion of the Michigan Supreme Court in Pompey v General Motors Corp, 385 Mich 537; 189 NW2d 243 (1971). In referring to the 90-day limitation in MCLA 423.307(b), the Court considered themselves "constrained to agree with defendant that plaintiffs statutory remedy is barred since the applicable limitational period has run”. Pompey, supra, p 550, and pp 550-551 n 11. The Court’s adherence to this statutory rule is equivalent in effect to a determination of constitutionality.
It may be agreed that lay-initiated administrative pleadings should be liberally viewed, and that legislative intent is not to be "hampered by a combination of a strict construction of the statute and a battle with semantics”. Culpepper v Reynolds Metals Co, 421 F2d 888, 891 (CA 5, 1970). Yet we do not consider , the requirement of subsection (b) to be a "procedural nicety” or a "mere legal technicality”. We consider it a reasonable expression of a legislative prerogative.
Our procedural inquiry is not ended by concluding that a written complaint is mandatory and that the statute as construed is constitutional. It remains to be determined if the requirement of subsection (b) was adequately complied with in this instance.
Mr. Boyd filed a written complaint with the CRC charging racial discrimination. This filing was made immediately subsequent to his suspension, and less than one month prior to his discharge. The parties are agreed that the CRC’s investigations, conciliation efforts and hearings all began after Mr. Boyd’s discharge and centered thereupon. Mr. Boyd relied upon this continuing CRC processing of his original complaint, never being asked by the CRC to file a second complaint. Chrysler has repeatedly asserted that it would not demand a requirement of a subsequent complaint, ostensibly to avoid "further formalisms” that "would merely have resulted in the filing of an additional complaint”. Chrysler also admits to having actual notice throughout these proceedings.
We are not disposed to attribute undue weight to Chrysler’s gracious concessions, and would not accept a purported waiver of any and all requirement for some form of prior "verified complaint in writing”. However, in perceiving the requirement to be essentially one of procedural due process (and thus "waivable” in theory), we believe that these specific facts succeed in triggering the processes of the CRC. In NLRB v Fant Milling Co, 360 US 301; 79 S Ct 1179; 3 L Ed 2d 1243 (1959), the United States Supreme Court construed a complaint provision very similar to MCLA 423.307(b) to allow the agency to investigate events occurring subsequent to the filing of the "charge” or initial allegation of unlawful conduct. Regarding Title VII, both Sanchez v Standard Brands, Inc, 431 F2d 455 (CA 5, 1970), and Tipler v E I duPont deNemours & Co, 443 F2d 125 (CA 6, 1971), adopted the rule of King v Georgia Power Co, 295 F Supp 943, 947 (ND Ga, 1968), that judicial complaints filed pursuant to Title VII "may encompass any kind of discrimination like or related to allegations contained in the charge and growing out of such allegation during the pendency of the case before the Commission”. These cases are suggestive of the expansive language of MCLA 423.307(h) that the CRC may address "any unfair employment practice” revealed during an authorized investigation, presumably including practices unknown to complainant. Additionally, in Lisee v Secretary of State, 388 Mich 32; 199 NW2d 188 (1972), the Michigan Supreme Court found plaintiffs failure to comply strictly with notice provisions of the Motor Vehicle Accident Claims Act to be nonfatal where the Secretary of State had actual notice of the claim and was not prejudiced in any way.
The thrust of these cases is persuasive. At least in situations where: (1) a complainant filed a prior "verified complaint in writing”; (2) the agency activity pursuant thereto encompasses events "reasonably related to and growing out of’ the initial complaint; and (3) the respondent has actual knowledge of the substance of these proceedings; then the mandatory requirement of MCLA 423.307(b) is satisfied through substantial compliance. The circuit court erred in granting Chrysler’s motion for summary judgment on this ground.
We turn to the substantive issue of the effect of an arbitration decision, as to contractual rights under a collective bargaining agreement, upon the vindication of a state statutory civil right.
The general policy favoring arbitration has been clearly indicated by the United States Supreme Court:
"The refusal of courts to review the merits of an arbitration award, is the proper approach to arbitration under collective bargaining agreements. The federal policy of settling labor disputes by arbitration would be undermined if courts had the final say on the merits of the awards.” United Steelworkers of America v Enterprise Wheel & Car Corp, 363 US 593, 596; 80 S Ct 1358, 1360; 4 L Ed 2d 1424 (1960).
The Court has further held that, as a matter of Federal labor law, an employee must at least attempt to exhaust the grievance and arbitration processes established under a collective bargaining agreement, Republic Steel Corp v Maddox, 379 US 650; 85 S Ct 614; 13 L Ed 2d 580 (1965), subject to an exception that the procedures not be tainted by union or arbitrator breaches of the same agreement. Vaca v Sipes, 386 US 171; 87 S Ct 903; 17 L Ed 2d 842 (1967).
It seems apparent that the circuit court adopted in this case the rationale of Dewey v Reynolds Metals Co, 429 F2d 324 (CA 6, 1970), offered as the basis of argument by respondent. Dewey held that the policy favoring arbitration requires dismissal of an employment discrimination action under Title VII where the grievance has already been adjudicated finally by arbitration.
Dewey, has been overturned by the Supreme Court’s opinion in Alexander v Gardner-Denver Co, 415 US 36; 94 S Ct 1011; 39 L Ed 2d 147 (1974). The Court held that, in an action brought under Title VII, the paramount national policy condemning discriminatory employment practices overbalances the policy favoring arbitral finality:
"We think, therefore, that the federal policy favoring arbitration of labor disputes and the federal policy against discriminatory employment practices can best be accommodated by permitting an employee to pursue fully both his remedy under the grievance-arbitration clause of a collective-bargaining agreement and his cause of action under Title VII. The federal court should consider the employee’s claim de novo. The arbitral decision may be admitted as evidence and accorded such weight as the court deems appropriate.” Alexander v Gardner-Denver Co, supra, 415 US 36, 59-60.
Alexander declined to apply such doctrines as election of remedies, res judicata, and collateral estoppel, rejected the thought that complainant had "two strings to his bow”, and found that "[b]oth rights [contractual and statutory] have legally independent origins and are equally available to the aggrieved employee”. Alexander, supra, pp 52, 54.
This Federal policy against discriminatory employment practices is no stronger than the parallel policy of our state as expressed in Const 1963, art I, § 2 and MCLA 423.301; MSA 17.458(1). And although the CRC is an administrative agency, it is charged by the express language of Const 1963, art 5, § 29 to "secure” the "civil rights guaranteed by law and by this constitution”. The rationale of Alexander applies.
Further, in Pompey v General Motors Corp, 385 Mich 537, 551; 189 NW2d 243, 250 (1971), the Michigan Supreme Court held that "plaintiff may avail himself of a cumulative judicial remedy in vindication of this specific civil right”, freedom from discrimination in private employment. This provision for cumulative and overlapping remedies in the most important context of civil rights is an appropriate anticipation of the spirit of Alexander. See also Michigan Civil Rights Comm v Clark, 390 Mich 717; 212 NW2d 912 (1973).
Mr. Boyd’s grievance claimed only "unjust discharge”, with no reference to the racial discrimination that he alleged before the CRC. Chrysler contends that this most general grievance necessarily called the entire "common law” of the shop into issue, including a specific provision in the collective bargaining agreement prohibiting racial discrimination, and that the arbitrator thereby automatically considered and dismissed racial discrimination in concluding that Mr. Boyd was a malingerer. There is no indication in the arbitrator’s opinion that he gave any consideration to the possibility of racial discrimination, and we do not believe that he did. In Alexander, the grievant alleged racial discrimination in both his grievance procedure and his subsequent agency and court proceedings. Mr. Boyd’s failure or decision not to grieve racial discrimination makes these facts even stronger for a proposition that no arbitral decision ever existed to operate as a bar to agency proceedings.
The decision of the circuit court as to arbitral finality is in error.
The cause is reversed and remanded to the trial court for a decision on the merits. No costs, a public question.
For an excellent survey, see Cramton, The Powers of the Michigan Civil Rights Commission, 63 Mich L Rev 5 (1965). | [
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N. J. Kaufman, J.
Plaintiffs appeal from a June 12, 1974 order and judgment of the Ingham County Circuit Court which granted an accelerated judgment against them. The trial court’s judgment vacated all determinations, findings and orders entered by plaintiff Michigan Civil Rights Commission (Commission) which had determined defendant to have discriminated against plaintiff Thomas White in violation of the fair employment practices act (FEPA), 1955 PA 251, as amended 1972 PA 267, MCLA 423.301 et seq.; MSA 17.458(1) et seq. This Court granted plaintiffs’ application for leave to appeal on November 4, 1974.
The sole question presented for appellate review is whether the trial court erred in holding that defendant was entitled to an accelerated judgment because plaintiff White had not filed his complaint within the time period prescribed by § 7(b) of the FEPA, MCLA 423.307; MSA 17.458(7). Section 7(b) provides:
"Any individual claiming to be aggrieved by an alleged unlawful employment practice may, by himself or his agent, make, sign and file with the board, within 90 days after the alleged act of discrimination, a veriñed complaint in writing, which shall state the name and address of the person, employer, labor organization or employment agency alleged to have committed the unlawful employment practice complained of, and which shall set forth the particulars thereof and contain such other information as may be required by the board. Any employer whose employees, or some of whom, refuse or threaten to refuse to cooperate with the provisions of this act, may file with the board a verified complaint asking for assistance by conciliation or other remedial action.” (Emphasis supplied.)
The allegedly discriminatory act of defendant which gave rise to this cause of action was the firing of plaintiff White by defendant, his employer, on June 23, 1969. Mr. White complained of his discharge in an unsworn letter which was received by the Commission on July 14, 1969. The letter alleged that plaintiff was a Negro, that on June 9, 1969 he had been 15 minutes late in returning from his lunch period, that on the next day he had broken his toe at work and had been on sick leave until June 23, 1969, and that when he had returned to work he had been discharged. Attempts were made by the Commission to contact Mr. White by telephone, but none were successful. On December 3, 1969, White appeared at the Lansing office of the Commission and there completed and verified a complaint charging that defendant discharged him on the basis of race. The complaint was accepted by the Commission.
Having investigated Mr. White’s complaint, the Commission, on August 18, 1970, issued a formal charge against Motor Wheel, which alleged, in substance, that race was a factor in the discharge of White. On September 3, 1970, defendant filed a motion to dismiss and/or strike the charge on the basis that the complaint was filed more than 90 days after the alleged act of discrimination and, thus, under FEPA, § 7(b), the Commission had no jurisdiction. The Commission contended that the July 14, 1969 letter satisfied the time requirements of the statute.
A hearing was conducted by a referee on December 16, 1970. In his opinion of January 31, 1973, the referee denied defendant’s motion to dismiss and/or strike. The referee accepted the Commission’s contention that the letter did in fact satisfy the statutory requirements. On the merits of the matter, the referee found that the Commission’s charge of unlawful discrimination had been established.
After argument before the Commission, on February 27, 1973, the Commission issued an order dated November 27, 1973, in which it upheld the ruling of the referee. Defendant filed a claim of appeal, on December 5, 1973, in the Ingham County Circuit Court. On February 15, 1974, it filed a motion for accelerated judgment, GCR 1963, 116.1(5), averring that the complaint originally filed by the claimant had been untimely. It alleged that the Commission was without jurisdiction in the matter and that it had acted outside the scope of its authority. In granting defendant’s motion, the court expressed a belief that lay parties should be given the opportunity to be heard. However, the court felt bound by the 90-day requirement of the FEPA. The court stated:
"The provision which we’re first concerned with here provides that a verified complaint * * * [m]ust be filed within 90 days after the alleged act of discrimination. This individual did not cause to be filed within 90 days after the alleged act of discrimination a veriñed complaint It therefore follows that there is no bases [sic] in law for proceeding with this matter. * * * Here it appears that the complaint wasn’t gotten on file apparently until December 3rd.” (Emphasis supplied.)
On appeal, the major conflict is over the interpretation of the term "verified complaint” as it is used in § 70b) of the FEPA. Plaintiffs contend that the statute be interpreted liberally so as to fulfill its purposes. They argue that the remedial purposes of the statute will be best served by reading § 7(b) to allow the filing of an unsworn complaint within 90 days after the discriminatory act and to permit the verification to occur at some later time, prior to the initiation of a Commission investigation. Defendant claims that a legislature may impose reasonable regulations on a party’s exercise of a statutory right. According to defendant’s theory, an individual who sues to enforce such a right must be rigidly restricted by the time limits made a part of the statute which created the right. Pompey v General Motors Corp, 385 Mich 537; 189 NW2d 243 (1971).
For several reasons, we agree with plaintiffs. We find that the unsworn letter sent by Mr. White within 90 days after the alleged discriminatory act complied with the time limit for filing a charge under the FEPA and that his later verification satisfied the verification requirement of the statute. We find that the "charge” was filed on July 14, 1969, the date Mr. White’s letter reached the Commission, not on December 3, 1969, the date of the verification. As such, we hold that the trial court erroneously dismissed plaintiffs’ complaint.
First, because it is designed to "redress an existing grievance” and to "introduce regulations conducive to the public good”, the fair employment practices act must be deemed a remedial statute. In re School District No 6, Paris and Wyoming Townships, Kent County, 284 Mich 132, 144; 278 NW 792 (1938). As a remedial statute, we must construe the FEPA liberally so as to assure the effectuation of its stated remedial purposes. Gauthier v Campbell, Wyant & Cannon Foundry Co, 360 Mich 510; 104 NW2d 182 (1960). This liberal construction applies to procedural as well as substantive provisions of the law. Rookledge v Garwood, 340 Mich 444, 453; 65 NW2d 785 (1954). The FEPA’s remedial nature and socio-legal purposes are manifested in the statements made at the 1961 Constitutional Convention by the drafters of article 5, section 29 of the Michigan Constitution. That provision established the Civil Rights Commission, one of whose functions was the enforcement of the FEPA’s proscription of discrimination in employment. The drafters stressed the "vital character of the rights involved and the necessity for the protection of such rights against discrimination * * * ”. 2 Official Record, Constitutional Convention 1961, p 1922. They noted that:
" * * * it is vital to the future health and wellbeing of our state that we eliminate this discrimination, that we make certain it is going to be eliminated in all fields.” Id. at 1933.
Second, analagous Michigan decisions manifest a policy of avoiding a technical enforcement of verification requirements. This Court has ruled that GCR 1963, 114.2 mandates substantial, rather than absolute, compliance with the requirement that civil complaints be verified. Jackson v Detroit Bd of Education, 18 Mich App 73, 80; 170 NW2d 489 (1969). The case of In re Fair Estate, 55 Mich App 35; 222 NW2d 22 (1974), is especially instructive. In Fair, plaintiff failed to verify a complaint filed in the Court of Claims and attempted to correct this failure by verifying it after the statute of limitations had run. This Court reversed an accelerated judgment against plaintiff. It held that plaintiff’s failure to verify the complaint within the statutory time period was not fatal to his claim where the absence of verification did not surprise or prejudice the defendant. The Court stressed a policy of avoiding a narrow reading of the verification requirement where "injustice * * * may occur if noncompliance with a technical aspect of the notice requirement is not allowed to be remedied”. Id. at 39.
The Supreme Court in Lisee v Secretary of State, 388 Mich 32; 199 NW2d 188 (1972), held that a failure by plaintiff to strictly comply with the notice provisions of a remedial act will not bar his claim. The Court ruled that the notice requirement of the Motor Vehicle Accident Claims Act, 1965 PA 198; MCLA 257.1101 et seq.; MSA 9.2801 et seq., is not jurisdictional. Inasmuch as actual notice was given, the statutory notice was held not to be necessary. The Court reasoned that because the act is remedial legislation designed to aid injured parties as soon as possible, it should not be read so technically as to defeat the act’s purpose. Id. at 46.
Third, the fact that we are dealing with rules for administrative procedure, rather than with rules for judicial pleadings, militates against defendant’s rigid construction of the statute. Section 7(b) is concerned with bringing an action before the Com mission. The General Court Rules govern judicial relief sought to enforce Commission rulings. As Professor Kenneth Culp Davis notes, administrative pleadings are less important than trial pleadings:
"The most important characteristic of pleadings in the administrative process is their unimportance. And experience shows that unimportance of pleadings is a virtue.” 1 Davis, Administrative Law Treatise, § 8.04, p 523 (1958).
This is especially true in reference to the Civil Rights Commission. The Commission’s enforcement of the FEPA is designed to be accomplished primarily by "informal methods of persuasion and conciliation”. MCLA 423.307(a); MSA 17.458(7)(a). The emphasis is on "informal”. The FEPA procedure was designed to be an informal, speedy, alternative procedure to more formal, costly litigation. Excessive formalism would significantly hinder the work of the Commission in investigating complaints and in securing acceptable settlements.
Fourth, and most importantly, we find that the filing of an unsworn letter combined with a retroactive verification is consistent with the purposes of the FEPA and is sanctioned by the legislative intent behind the FEPA. In addition, and equally as important, we find that plaintiff White’s failure to verify the complaint until after the 90-day period in no way prejudiced defendant. The fair employment practices act was intended to protect individuals like plaintiff White who often fear the legal system and cannot afford the resources and time required to litigate a claim in a court of law. The act provides a speedy, simple procedure for individuals like Thomas White who do not understand the intricacies of the legal system and who need a quick disposition of their grievances. The 90-day period for filing a grievance insures that the Commission’s action occurs when the facts of the alleged discrimination are still current. The time limit also causes the Commission’s investigation to begin before the discrimination has resulted in the complainant’s having suffered so much damage that a settlement becomes impossible and a remedy difficult.
Given the salutary purposes of the FEPA, the only procedural requirement which should initiate Commission action is a timely presentation of facts alleging a discriminatory act. Plaintiff White’s letter to the Commission contained all that should be required of a complainant. His letter contained sufficient facts from which the Commission could reasonably infer that he was alleging a firing based on discriminatory reasons. We find this allegation to have been a "complaint” within the intent of the statute. Plaintiff sent the letter within a month of his firing, at a time when the facts were still current and when an agreement to reinstate him was most feasible. The delay in processing the action and in rendering a decision was caused by the Commission, not by the complainant. We do not believe that the Commission’s inaction should penalize Thomas White, especially since his actions were timely and since defendant does not argue that it was prejudiced by the delay. Defendant does not claim that any evidence was lost or that its position was altered in any way because of the delay.
Plaintiff White’s failure to verify the complaint until after the 90-day period also did not result in any prejudice to defendant. Verification is required to prevent reckless complaints made solely to harass. This purpose was satisfied here because Com mission action did not commence until the original complaint had been verified. How the charging party puts his complaint in the Commission’s hands is irrelevant to any rights of defendant. As long as the Commission gives a defendant adequate and timely notice of the charges and an opportunity to answer them, the manner of notice to the Commission will be irrelevant to defendant’s substantive rights.
Relevant Federal decisions supply additional bases for our holding that verification of a timely complaint may occur after the time period has run. Federal decisions have uniformly ruled that the requirement of the Federal Equal Employment Opportunity Act of 1972, 78 Stat 253 et seq. (1964); 86 Stat 103 et seq. (1972); 42 USC 2000e et seq. (Title VII of the Civil Rights Act of 1964), that charges be "in writing under oath or affirmation” is satisfied by an unsworn charge filed within the statutory time period and later affirmed. 78 Stat 259, 260 (1964); 86 Stat 104 (1972), 42 USC 2000e-5(b). Defendant distinguishes the Federal cases by claiming that their holdings are based on an Equal Employment Opportunity Commission (EEOC) regulation, 29 CFR 1601.11(b) (1974), which allows amendment of charges "to cure technical defects or omissions, including failure to swear to the charge”. However, a reading of these decisions shows that, first, not all have been based on this rule and, second, all have founded their holdings more on the basic purposes of the Equal Employment Opportunity Act than on the EEOC regulation.
In Choate v Caterpillar Tractor Co, 402 F2d 357 (CA 7, 1968), the plaintiff wrote an unsworn letter claiming that she had been denied a job because of discrimination based on sex. She was contacted by the EEOC after the time period for filing had run and swore under oath that the charges in her letter were true. The district court dismissed plaintiff’s complaint for lack of verification within the time period. In reversing the district court, the Seventh Circuit Court of Appeals relied on the purposes of the Civil Rights Act and used the EEOC regulation as additional support. The Court found that the verification requirement related to the administrative rather than judicial features of the statute. In deeming the requirement "directory and technical rather than mandatory and substantive”, the Court stated:
"Given the fact that the administrative remedy alone may be insufficient to vindicate the rights of aggrieved parties, we believe that it would be unnecessarily harsh and in derogation of the interests of those whom the Act was designed to protect to interpret the statutory language as denying substantive rights in the district court because of procedural defects before the Commission. If the Commission undertakes to process a charge which is not 'under oath,’ we perceive no reason why the district court should not treat the omission of the oath as a permissive waiver by the Commission. To deny relief under these circumstances would be a mean ingless triumph of form over substance.” Id. at p 360. (Footnote omitted.)
Accord Blue Bell Boots, Inc v EEOC 418 F2d 355 (CA 6, 1969).
In one of the few state cases in point, the Iowa Supreme Court analyzed the role of a complaint in discrimination cases and rejected a technical interpretation. It viewed that action as:
"designed more to implement broad public policy than to adjudicate differences between private parties.”
Iron Workers Local No 67 v Hart, 191 NW2d 758, 768 (Iowa, 1971).
The same broad public policy requires us to read the Michigan fair employment practices act so that its procedure does not unnecessarily prevent plaintiff from litigating the rights assured to him by the act. While we agree with defendant that the Legislature may condition a statutory right on a statutory time limit, in this case, we cannot interpret the time limit so as to destroy the right.
Reversed and remanded foi trial. No costs, a question of statutory interpretation being involved.
Bronson, J., concurred.
"There is hereby established a civil rights commission which shall consist of eight persons, not more than four of whom shall be members of the same political party, who shall be appointed by the governor, by and with the advice and consent of the senate, for four-year terms not more than two of which shall expire in the same year. It shall be the duty of the commission in a manner which may be prescribed by law to investigate alleged discrimination against any person because of religion, race, color or national origin in the enjoyment of the civil rights guaranteed by law and by this constitution, and to secure the equal protection of such civil rights without such discrimination.” Const 1963, art 5, § 29.
Choate v Caterpillar Tractor Co, 402 F2d 357 (CA 7, 1968), Jenkins v United Gas Corp, 400 F2d 28 (CA 5, 1968), Blue Bell Boots, Inc v EEOC, 418 F2d 355 (CA 6, 1969), Weeks v Southern Bell Telephone and Telegraph Co, 408 F2d 228 (CA 5, 1969), Georgia Power Co v EEOC, 412 F2d 462 (CA 5, 1969), Sanchez v Standard Brands, Inc, 431 F2d 455 (CA 5, 1970), EEOC v Western Publishing Co, Inc, 502 F2d 599 (CA 8, 1974). See also Anno, Time Requirements for Civil Action for Violation of Equal Employment Opportunities Provisions under § 706 of CivU Rights Act of 1964 (42 USC 2000e-5),'4 ALR Fed 833. While these cases are, of course, not binding, they are especially persuasive because they interpret Federal legislation which has the same provisions and procedures as the Michigan statute examined here. See DPOA v Detroit, 391 Mich 44, 53; 214 NW2d 803 (1974). Another panel of this Court per Judge R. B. Burns has also liberally interpreted § 7(b) to effectuate the remedial purposes of FEPA. Civil Rights Commission v Chrysler Motors Corporation, 64 Mich App 393; 235 NW2d 791 (1975). | [
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Allen, P. J.
On September 1, 1953, Mr. and Mrs. Eisen entered into a land contract for the purchase of certain land in Cheboygan County by N. Lucille Bennett, mother of plaintiffs herein. The description of the property in the land contract specifically excepted certain property west of the tract to be purchased by the Eisens. On the same day that the contract was entered into, Mrs. Bennett wrote a letter to the Eisens granting them an option on the property which was excepted in the land contract. The letter recited no consideration for the option but provided:
"This is to advise that in accordance with our understanding of this date, regarding the sale of the Black Lake property, you are to have the first option to purchase the 200 feet immediately west of the property sold to you at this time in the event that I decide to sell said parcel at any time in the future.
"The purchase price is not to exceed Two Thousand ($2,000.00) Dollars if the property remains unimproved. Should buildings be erected on this site, we are to determine a fair market value of the buildings at the time of sale.”
In 1968, Robert Eisen assigned to his wife his interest in the option on the Black Lake property. She recorded this option on November 13, 1968.
In March of 1969, Mrs. Bennett, now Mrs. Moss, conveyed the excepted property, which had remained unimproved, to her two sons as a gift. Some three years later the two sons listed the property and in October 1972 received an offer of $15,500 cash. Because of the recorded option of Mrs. Eisen, the intended purchaser refused to complete the deal until the cloud on the title was removed. As a result, the sons brought an action to quiet title in the circuit court on March 30, 1973.
At trial, the defendant attempted to introduce evidence to demonstrate that the option agreement was part of the land contract, and thus the consideration recited in the land contract supported the option. The trial judge allowed the defendants to make a separate record, but did not consider that evidence in his finding of fact. The trial court found for the plaintiffs and quieted the title in them. Defendants appeal from that judgment.
The litigants contend that the decisive issue in this appeal is whether the trial court erroneously applied the parol evidence rule by excluding testimony which would have shown that the option agreement was part of the land contract. The general rule is that where a deed is absolute in its terms without any indication expressed or implied of a condition or reservation, parol evidence tending to show a contemporaneous oral agreement which is contradictory of the deed is inadmissible:
"The decisive issue here is whether or not parol evidence was admissible to contradict terms of the quitclaim deed given by the plaintiffs. Neither fraud, mistake, nor lack of consideration is claimed here. The quitclaim deed executed by plaintiffs to defendant Capitol Plaza was absolute in form and therefore parol testimony was inadmissible to contradict its terms. The case comes within the rule recited in Wild v Wild, 266 Mich 570. In that case, it was held, among other things, that where sons of a widow quitclaimed interests in their deceased father’s estate to the mother, allegedly pursuant to a parol contract of equal distribution upon her death, parol testimony was not admissible to contradict or add to the terms of a quitclaim deed absolute in form.” Tepsich v Howe Construction Co, 373 Mich 404, 407; 129 NW2d 398 (1964).
This general rule is not without a number of exceptions. Among these are situations where the deed or contract is ambiguous, Taylor v Taylor, 310 Mich 541; 17 NW2d 745 (1945), where the deed constitutes only part of the performances called for in the underlying contract, Goodspeed v Nichols, 231 Mich 308; 204 NW 122 (1925), or where fraud, actual or constructive, is involved, Tepsich v Howe Construction Co, supra. For other exceptions to the rule see Anno: Admissibility of parol evidence with respect to reservations or exceptions upon conveyance of real property, 61 ALR2d 1390, 1393.
Defendants contend they fall within the exception permitting an explanation of an ambiguity because the parcel of land at issue is described differently in the deed than in the land contract. On this issue the trial judge made a finding of fact that the deed only described in the metes and bounds language of a surveyor what was described in the land contract. We agree. The land contract never referred to 200 feet of shoreline but only to a parcel "200 feet east of and running parallel with the westerly line of said property”.
Relying strongly on Brady v Central Excavators, Inc, 316 Mich 594; 25 NW2d 630 (1947), defendants claim that where there are several writings and memoranda between the parties, the complete contract may be gathered from all the letters and writings and that if the land contract, the letter option and a second letter confirming the option were taken into consideration, it would be clear that the $38,000 paid for the property actually conveyed, was also consideration for the option. Without questioning the doctrine of Brady, we reject its applicability. Brady was not a case involving the statute of frauds or a deed absolute in form given in fulfillment of an earlier contract. Instead, it involved a series of letters between the parties which, on their face, appear not to govern the entire agreement. As a consequence the Court found there never was a completely integrated written contract.
Even if we assume, arguendo, that parol evidence should have been admitted, and would have shown consideration was present, we still conclude the trial court reached the correct result. The option letter September 1, 1953, was an option in the event Mrs. Bennett decided to sell. The second letter dated January 6, 1964, which was made a part of the separate record but apparently disregarded by the court, reaffirms the limited breadth of the option.
"Dear Sir: In answer to your letter of December 27— 1963 — in regard to my .property at Black Lake — just to the west owned by Mr. Eisen — after talking with my son in Florida, we have decided not to sell at this time. We would like to put a small cottage on this property— where we all can vacation in the summer. We could not purchase any other lake property closer to Detroit for this price or even close to it.
"Whenever we are ready to sell, will certainly give Mr. Eisen option to purchase the property — as to our agreement.” (Emphasis supplied.)
Both on direct and on cross-examination, Mrs. Bennett (Moss) consistently claimed she never wanted to sell the property, that she loved the North and hoped to build a cottage on the parcel but because of advanced age she finally gave the land to her sons without consulting them but thinking "it would be nice for them to put up a cottage up there for themselves, or all of us, maybe”. As in Waterstradt v Snyder, 37 Mich App 400; 194 NW2d 389 (1971), we find the option language means exactly what it says, nothing more nothing less: namely, that if Mrs. Bennett ever decided "to sell” the plaintiffs could purchase. When she gave the land to her sons she still had aspirations that they would build a cottage in which she could visit. The fact that the sons held the property some three years before listing it for sale suggests that Mrs. Bennett was not using the gift to her sons as a circuitous route for sale. Options should be strictly construed and, absent specific time limits, are only for a reasonable period of time. Glocksine v Malleck, 372 Mich 115, 118; 125 NW2d 298 (1963), and 1A Corbin, Contracts, § 273, footnote 44 p 599. At the time of trial the option had not been exercised for 20 years. Under the circumstances we are not convinced that we would reach a different result sitting in place of the trial court. Greenspan v Rehberq, 56 Mich App 310; 224 NW2d 67 (1974).
Affirmed, costs to plaintiffs.
"Now the option of the date of September 1, 1953, of the same date as the land contract, requires the grantor of the alleged option to do nothing different, nothing contrary to the terms of the land contract as expressed in it as the same terms in the deed. Therefore, the Court finds, as a matter of law that the deed or any agreement in the deed, or the agreement as to the sale of the overall parcel of land, nothing being changed, the Court finds that there cannot be interpreted from these two instruments any consideration that is referable to the alleged option, and as the Court has listened carefully to the testimony, it fails — it has failed to find from the testimony presented herein, any other understanding between the parties or consideration that has changed to support the alleged option. So, therefore, the Court determines as a matter of law that the option is invalid because of absence of consideration, and the Court, therefore, grants the motion to petition of the plaintiff to quiet title and judgment to that effect may be presented.”
Expanding this argument, appellants claim that the parcel excepted was to be 200 feet on the shoreline but the deed conveyed 200 feet at the north end of the property which, because the shoreline runs in a southeasterly direction, had the effect of excluding 313 feet of frontage. | [
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McGregor, J.
The consolidated cases herein reach this Court on an appeal by right from a judgment in the circuit court on April 2, 1974. The dispute is over the assessment of taxes on Xerox Corporation’s copying equipment involving six tax years, 1966, 1967, 1968, 1970, 1972, and 1973. These actions concern the legality of property taxes on leased equipment which plaintiff paid under protest to the treasurers for defendants for each of the above-mentioned tax years. Defendants’ boards of assessors valued this equipment for assessment purposes on the basis of the listed selling prices for the equipment as published by the plaintiff, although over 99 percent of said equipment was leased and not sold at retail. The plaintiff contended that the boards of assessors, in so doing, were acting in disregard of constitutional and statutory requirements in that plaintiffs listed selling prices, when used as the basis for valuation, did not reflect the true cash value of the equipment and, further, that such a method of valuation was unrecognized in law and contrary to accepted appraisal practice.
On January 15, 1974, a non-jury trial commenced on the consolidated suits. The defendants immediately moved for summary judgment on the ground that there were no genuine issues of material fact, as the State Tax Commission (hereinafter referred to as STC) had previously heard this dispute between the parties and had reached a decision which was a final and binding determination in regard to plaintiffs contentions. This motion was denied by an opinion of the court on February 21, 1974. Defendants then moved for a directed verdict, after plaintiffs opening statement and again after plaintiffs case-in-chief, on the ground that no wrongdoing was either alleged or proved against the STC. The trial judge wrote an opinion in which he made the specific finding that the evidence showed that the valuation of the equipment, when based upon the list prices, had no relation to the equipment’s market value and that, as a result, the tax upon said equipment was invalid.
Defendants now appeal, claiming that the denial of their motions for summary judgment and directed verdict constituted reversible error.
Addressing ourselves first to the denial of defendants’ motion for summary judgment, the issue now before us is whether the STC’s prior decision in this matter was a final and binding determination as to the legality of the taxes imposed.
In order to answer this question, we must first look to the statute under which this action was instituted. Section 53 of the General Property Tax Act provided, prior to its amendment by 1972 PA 226, as follows:
"Any person may pay the taxes or special assessments, or any one of the several taxes or special assessments, on any parcel or description of land, or on any undivided share thereof, and the treasurer shall note across the face of the receipt in ink any portion of the taxes or special assessments remaining unpaid. He may pay any tax or special assessment, whether levied on personal or real property, under protest, to the treasurer, specifying at the time, in writing, signed by him, the grounds of such protest, and such treasurer shall minute the fact of such protest on the tax roll and in the receipt given. The person paying under such protest may; within 30 days and not afterwards, sue the township for the amount paid, and recover, if the tax or special assessment is shown to be illegal for the reason shown in such protest. In cities where, by special provision, state and county taxes are collected by the county treasurer, suits for the recovery of state and county taxes only shall be brought against the county, and any such suit against a county for the recovery of taxes or special assessments so paid to the county treasurer shall proceed in all respects as provided herein for suits against townships.” (Emphasis added.)
First, it must be noted that the institution of the § 53 action and a hearing before the STC pursuant to § 152 of the General Property Tax Act are not mutually exclusive.
This Court, in Fisher-New Center Co v Detroit, 38 Mich App 750; 197 NW2d 272 (1972), clearly stated that a taxpayer has been given by the Legislature two alternative remedies which the taxpayer may follow to contest his assessed taxes. The taxpayer may either (1) appeal to the STC (pursuant to § 152 of the General Property Tax Act), and/or (2) pay the tax under protest and sue in the circuit court for refund (pursuant to § 53 of the General Property Tax Act). Plaintiff here has followed both of the alternatives open to it. In Moran v Grosse Pointe Township, 317 Mich 248, 253; 26 NW2d 763 (1947), the Court stated:
"Plaintiff has followed the proper and necessary procedural steps before bringing suit by seeking relief first from the board of review and then the State Tax Commission, then paying the alleged illegal taxes under protest and bringing suit for recovery of the amount paid.”
This is precisely the remedial route followed by the plaintiff in the present case, as this appeal arises from a judgment for plaintiff from the circuit court upon a § 53 suit to recover a refund.
Thus, the defendants herein cannot claim that the plaintiff is foreclosed from bringing a § 53 action by virtue of having previously sought a § 152 review.
Secondly, it is clear from the language of § 53 that it provides the taxpayer with a remedy only if he can show that the imposition of the tax is illegal. The determination of the constitutionality of a tax is clearly a matter of judicial review and cannot be decided exclusively by an administrative agency. As stated in In The Matter of Xerox Corp V.STC, 383 Mich 823 (1970):
"In The Matter of Xerox Corporation v State Tax Commission. (Docket No. 52,704.) Leave to appeal denied August 27, 1970, without prejudice, for the reason that the State Tax Commission’s determination of the valuation of the taxpayer’s property for assessment purposes, absent appeal therefrom on leave, has validity only as to the amount of such assessment and does not constitute a determination of the validity of the tax or taxpayer’s right to recover taxes paid under protest by virtue of timely suit. See Woodmere Cemetery Assn v Township of Springwells, 130 Mich 466 [90 NW 277 (1902)], and Continental Motors Corp v Township of Muskegon, 375 Mich 13 [133 NW2d 163 (1965)].”
See also Fisher-New Center Co v Detroit, supra, Kingsford Chemical Co v Kingsford, 347 Mich 91; 78 NW2d 587 (1956), Fisher-New Center Co v State Tax Commission, 380 Mich 340; 157 NW2d 271 (1968), Pantlind Hotel Co v State Tax Commission, 380 Mich 390; 157 NW2d 293 (1968), Helin v Grosse Pointe Township, 329 Mich 396; 45 NW2d 338 (1951), Newport Mining Co v City of Ironwood, 185 Mich 668; 152 NW 1088 (1915), Const 1963, art 6, § 28.
Thus, while the STC’s determination of the valuation of property for assessment purposes is final and binding as to the amount of such assessment, it does not have such effect where the validity of the tax itself or plaintiff’s right to recover al-. legedly illegal taxes under § 53 are involved.
From the foregoing, it is clear that in the present case, the trial court’s denial of defendants’ motion for summary judgment was correct, if the plaintiff sufficiently alleged facts which would place the illegality of the taxes in issue. The basic thrust of plaintiff’s allegations herein are that defendants’ methods of valuation were unconstitutional in that they constituted a fundamentally wrong principle of assessment which resulted in a valuation which bore no reasonable relationship to the true cash value of the property. We hold that such allegations do raise the issue of the tax’s illegality under § 53 and, therefore, defendants’ motion for summary judgment was properly denied. See Mohawk Data Sciences Corp v Detroit, 63 Mich App 102; 234 NW2d 420 (1975), and the cases cited therein.
Turning now to the trial court’s denial of defendants’ directed verdict motions, we observe that the identical issue was also raised in Mohawk, supra, and decided adversely to the defendants. For the reasons stated in Mohawk, we hold that the trial court’s denial of defendants’ motions for directed verdicts was proper.
The decision of the trial court is, therefore, affirmed.
MCLA 211.53; MSA 7.97.
MCLA 211.152; MSA 7.210. | [
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R. B. Burns, J.
Defendant appeals his conviction by a Detroit Recorder’s Court jury of the lesser included offense of attempted kidnapping. He alleges that he was denied a fair trial.
Defendant and two codefendants were charged originally with kidnapping and armed robbery of one Raymond Noonan. Noonan was driving a semi-tractor trailer containing a shipment of appliances when three men in a blue automobile accosted him at the point of a sawed-off shotgun. The gunman, whom he subsequently identified as codefendant Slate, ordered him to dismount the truck and get into the trunk of the car, and as he obeyed he had an opportunity to observe the other two men (identified as defendant Bynum and codefendant Parker) standing by the rear of the car.
After the trunk was closed, Noonan heard the truck pull off, followed by the automobile. He managed to disassemble the trunk lock and leap out of the vehicle onto the roadbed of the 1-75 Freeway. He was picked up by a passing motorist and driven to the police station. He testified at trial that he selected defendant from a lineup.
On December 26, 1973, some nine days after trial commenced, defendant’s counsel inquired of the court as to whether his request to call alibi witnesses had been denied. The court noted counsel’s failure to comply with the statutory notice provision for alibi witnesses, MCLA 768.21; MSA 28.1044, and ruled to deny the witnesses. Further review of the record reveals the court’s December 21 ruling that codefendant Slate would be allowed to call alibi witnesses despite improper notice because of an effort to comply with the statute. Defendant’s counsel then announced a similar intention to use an alibi defense, asserting that he had verbally so notified the prosecutor on December 17. The court’s query as to his continuing failure to file notice was met by an assertion of "misunderstanding probably on my part” by counsel. The court ruled that the requirements of the alibi statute had not been met. Counsel stated that he would supply the prosecutor with the required information, and the court suggested that he attempt to make arrangements agreeable with the prosecutor.
Counsel did nothing until December 24, Christmas Eve, when he filed a motion on a day when court was not in session and when any prosecutorial investigation would have been difficult at best. In its December 26 ruling the court noticed the difference between counsel’s activity and that of counsel for codefendant Slate; specifically, that the latter had filed a notice earlier (December 17), and that he had presented his witnesses for interviewing and investigation by the prosecution.
Defendant rested without presentation of a defense. On appeal, he does not aver that the court abused its discretion, but contends that counsel’s failure to comply with the notice of alibi statute was ineffective assistance of counsel sufficient to deny him a fair trial.
The standard adopted by this Court relative to ineffective assistance of counsel is expressed in People v Degraffenreid, 19 Mich App 702; 173 NW2d 317 (1969). The Court adopted the language of Williams v Beto, 354 F2d 698, 704 (CA 5, 1965), to the effect that defendant must show that the "trial was a farce, or a mockery of justice” or the representation of counsel "was only perfunctory, in bad faith, a sham, a pretense * * * ”.
It is instructive to observe that the Fifth Circuit Court of Appeals has itself rejected the "low standard” of Williams v Beto and reinterpreted the right to effective counsel as "counsel reasonably likely to render and rendering reasonably effective assistance”. (Citation omitted; emphasis in original.) West v Louisiana, 478 F2d 1026, 1033 (CA 5, 1973) . The Sixth Circuit has likewise rejected the "sham” trial standard by approving the language of West and by requiring defense counsel to "perform at least as well as a lawyer with ordinary training and skill in the criminal law * * * ”. Beasley v United States, 491 F2d 687, 696 (CA 6, 1974) . See also Bruce v United States, 126 US App DC 336; 379 F2d 113 (1967).
Thus appears a trend away from the strict "sham” standard. Nevertheless, we believe that a complete reading of Degraffenreid relieves any apparent necessity for major surgery on that opinion. It is necessary to recognize the varying implications of the terms "incompetence”, "diligence”, and "mistake”. Degraffenreid specifically applies the sham standard where defendant asserts that he was represented by a "bad lawyer”, i.e., an incompetent, as revealed by focusing on "the totality of his representation of his client”. Degraffenreid, supra, 717. However, "[i]t is not the correct standard by which to judge a claim that the defendant is entitled to a new trial because of a serious mistake made by a good lawyer”. Degraffenreid, supra.
By all appearances, it is this latter type of claim that defendant brings herein. He does not allege that he was represented by a constitutionally inadequate lawyer manifesting incompetence "grave [enough] to be raised to the constitutional level of no assistance of counsel”. People v Lawrence, 32 Mich App 591, 594; 189 NW2d 48, 50 (1971). Rather, he maintains that it was counsel’s lack of diligence that resulted in a serious mistake sufficient to deny him a fair trial. And in this instance Degraffenreid allows a new trial "[w]here the lawyer’s mistake is of such serious proportion that it may have been decisive, where but for the lawyer’s mistake the defendant might not have been convicted, the court may * * * grant a new trial”. Degraffenreid, supra, 716.
"In deciding whether to grant a new trial because of a serious mistake a court applies concepts akin to those implicit in the harmless error rule, balancing the public interest in avoiding purposeless retrials against the defendant’s interest in having all his rights recognized and asserted. Ordinarily a new trial will not be granted unless it appears that if a new trial is ordered during the conduct of which the mistake is not repeated the defendant may very well be acquitted. ” Degraffenreid, supra, 718. (Emphasis added.)
In a recent case, People v Watkins, 54 Mich App 576, 583; 221 NW2d 437, 441 (1974), this Court held a failure to file timely notice of alibi to be a "serious mistake”. Defendant Watkins’ conviction was affirmed, however, because of the Court’s belief that "even if these witnesses were permitted to testify, defendant would again be convicted * * * ”. Watkins, supra, 583.
The same conviction cannot be maintained in the instant situation. The trial court in Watkins had made a separate record of the proposed witnesses’ testimony and concluded that there was a fatal gap in defendant’s alibi. By contrast, we have no indication of the potential testimony of the proposed alibi witnesses. We can neither say that defendant "may very well be acquitted” or "again be convicted” as a function of the admission of this testimony on retrial.
The dispositive consideration in the case before us is that defendant has been deprived of his only defense by a serious mistake of informed counsel. No evidence was presented by defendant after the court ruled against admission of alibi testimony. There is no indication in the record that anyone other than counsel should bear the responsibility for failure to satisfy the statute. Accordingly, we are disposed to rule that this defendant did not receive a fair trial. The otherwise unexcused failure of a defense counsel to satisfy the statutory requirement by filing timely notice of alibi is such a serious mistake as to deny a defendant a fair trial in the case where he is thereby deprived of his only defense.
We adopt the method of disposition articulated by the Michigan Supreme Court in People v Robinson, 390 Mich 629, 633; 213 NW2d 106 (1973), a case involving prosecutorial failure to indorse and produce a res gestae witness:
"In order to prevent what might possibly be a useless new trial, but also in order to avoid a possible miscarriage of justice, we retain jurisdiction and remand to the trial court pursuant to GCR 1963, 865.1(5).”
This remand was for an evidentiary hearing. We have the same authority under GCR 1963, 820.1(5).
We therefore remand for an evidentiary hearing, and instruct the trial judge to hear and evaluate the proposed testimony of defendant’s alleged alibi witnesses. If the trial judge finds that either of the witnesses is willing to verify defendant’s version, defendant is entitled to a new trial. The trial judge may not make any judgment as to whether he thinks the witnesses are in fact telling the truth, for that is a function of the jury upon retrial. McQueen v Swenson, 498 F2d 207 (CA 8, 1974). On the other hand, if the witnesses refute defendant’s contention, no retrial is necessary, because defendant would not have been deprived of a "substantial” defense.
If the trial judge orders a new trial, this Court does not retain jurisdiction. If the trial judge does not order a new trial, he shall forward his finding and a transcript of the hearing to this Court for our review.
The trial court shall conduct the aforementioned hearing within 30 days of the release of this opinion and shall render his opinion within 30 days of the hearing.
Cause is remanded to the trial court for proceedings in conformance with this opinion. | [
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Allen, J.
On September 5, 1974 Mssrs. Hepler and Spece, Central Michigan University faculty members, [hereinafter appellants] filed a petition with the Michigan Employment Relation Commission [MERC] alleging that 30 percent or more of the bargaining unit members assert that the current certified bargaining unit representative — Central Michigan University Faculty Association (CMUFA) — is no longer their representative, and requested a decertification election. The petition was supported by showing of interest documents signed by more than 30 percent of the bargaining unit members.
As provided in § 12 of the public employment relations act [PERA] 1965 PA 379, the director of MERC investigated the petition and supporting documents, and administratively dismissed the appellants’ petition on October 9, 1974. Appellants successfully sought review by MERC of the dismissal and counsel for Central Michigan University (CMU) and CMUFA made appearances. In an opinion dated December 16, 1974, MERC unani mously affirmed the director’s dismissal, and appellants commenced this appeal. This Court consolidated the independent appeal of CMU with appellants’ case, and on May 7, 1975, we denied CMU-FA’s motion to dismiss CMU as a nonaggrieved party.
We have condensed the sundry arguments raised by the litigants into three basic issues, resolution of which, we believe, is dispositive of the instant case. Does § 12 of PERA require MERC to dismiss a decertification petition where the showing of interest documents fail to assert that the certified bargaining unit representative "is no longer a representative as defined in section ll”? If not, did MERC erroneously construe § 12 as mandating such a requirement? Finally, did MERC clearly-err in affirming the administrative dismissal of appellants’ petition for lack of a proper showing of interest?
Section 12 of PERA provides in pertinent part:
"Whenever a petition shall have been filed, in accordance with such regulations as may be prescribed by the board:
(a) By a public employee or group of public employees * * * alleging that 30% or more of the public em ployees within a unit claimed to be appropriate for such purpose * * * assert that the individual or labor organization, which has been certified * * * as the bargaining representative, is no longer a representative as defined in section 11; * * * .
(b) * * * the board shall investigate the petition and, if it has reasonable cause to believe that a question of representation exists, shall provide an appropriate hearing after due notice.”
Where one or more public employees file a petition in conformity with any operative MERC regulation, and allege that 30 percent or more of the bargaining unit assert that the current certified representative is no longer their representative, MERC, or its agent, has the statutory duty to investigate the petition, and to make the determination whether vel non it has reasonable cause to believe a representation question exists. As authorized by § 12, MERC has established via regulation that a standard petition alleging 30 percent or more of the unit assert that a certified representative is no longer their representative is not sufficient per se to justify further MERC action toward an election. To aid in screening nonmeritorious claims that a representation question exists, MERC has promulgated rule 43.1 which provides that a decertification petition must be accompanied by supporting evidence in the nature of a showing of interest:
"A * * * decertification petition shall be supported by a showing of interest existing at the time of the filing of the petition of 30% of the employees in the unit claimed to be appropriate.” 1968 AACS, R 423.443(1).
It is evident that in order to justify a MERC investigation to determine whether reasonable cause to believe a representation question exists, neither § 12 nor rule 43.1 require that the showing of interest document contain the precise language that must be alleged in the decertification petition, to wit, 30 percent or more of the employees in the unit no longer consider the certified bargaining unit representative as their representative.
The question thus becomes whether MERC read such a requirement into the statute and rule, and dismissed appellants’ petition because the showing of interest documents failed to incorporate language identical to the allegation of assertion in the petition.
Our review of the record shows that appellants checked off the appropriate box in the boilerplate petition containing the allegation that "30% or more of employees in the unit assert that the certified * * * bargaining representative is no longer their representative”. To support the allegation, appellants submitted showing of interest documents signed by more than 30 percent of the employees within the unit. The language utilized in the documents reads as follows:
"I am in favor of having an election to determine whether or not Central Michigan University Faculty Association should be my collective bargaining agent.”
In a letter opinion dated October 9, 1974, the director of MERC administratively dismissed the petition of appellants on the following grounds:
"The showing of interest documents, to which the signatures are attached merely request an election but do not assert, as required by Section 12(a), that the incumbent labor organization 'is no longer a representative as defined in Section 11.’ The Commission in Board of Education of the School District of the City of Detroit, 1966 [MERC] Lab Op 393, held that a showing of interést which merely requests an election is not a compliance with the statutory mandate of Section 12(a).”
When the case came up for review, MERC realized that the director’s construction of § 12 was at best misleading. Although it affirmed the dismissal, MERC conceded that a showing of interest document need not incorporate the exact phraseology of the allegation provided in § 12 and contained in the petition:
"While it would not effectuate the policies of the Act to require that the strict statutory language of Section 12(a) be complied with, there must be an affirmative indication in the decertification petition or card that the individual no longer desired to be represented by the current collective bargaining agent.”
We are convinced that any initial misconstruction of § 12 by the director was corrected by MERC, and that MERC based its affirmance of the administrative dismissal, not on the grounds that appellants failed to use the precise statutory language, but for the reason that the showing of interest documents failed to sufficiently administratively indicate the signatories no longer desired to be represented by the current collective bargaining agent.
The remaining question is whether MERC clearly erred in affirming the director’s dismissal of the decertification petition owing to the lack of a proper showing of interest. We note at the outset that our judicial review is quite limited since it is not the function of the courts to second-guess the designated agency for labor matters on the purely administrative question of holding an employee election. In the instant case, however, MERC has disposed of the question in quasi-judicial fashion, thereby invoking the minimal judicial review requirements as provided in Const 1963, art 6, § 28. Moreover, it is this Court’s opinion that the dismissal of a decertification petition — as opposed to the grant thereof — raises serious implications concerning employee exercise of free choice, and therefore mandates some judicial review to guard against arbitrary and capricious dismissals, which constitute a deprivation of due process.
Appellants and CMU would have the Court substitute its judgment for MERC’s, find the showing of interest was proper, and conclude that there is reasonable cause to believe that a decertification question exists. We decline the invitation. It is not our function, nor do we possess the special prowess demanded, to act as a super-labor board. Section 12 provides that a petition for decertification must comply with subsection (a), and any relevant MERC rules, in order to trigger the exercise of MERC’s duty under subsection (b) to determine whether there is reasonable cause to believe that a decertification election exists. In substance, MERC held that there had been noncompliance with subsection (a) and accordingly it did not proceed to subsection (b). As noted earlier, MERC rule 43.1 requires that the petition be supported by a showing of interest of 30 percent or more of the bargaining unit. Further, MERC has provided by rule 43.2 that "The determination with respect to the statutory 30% * * * showing of interest is an administrative action and shall be made exclusively by the board or its agent.” 1968 AACS R 423.443.2. This rule makes express what is implicit in § 12, and we believe it our duty to respect the solemn expression of legislative will.
Absent a showing that MERC’s discretionary decision is so perverse or palpably wrong as to effectively amount to a breach of its statutory duty, the Court will not set MERC’s determination aside. In the instant case, MERC determined that the showing of interest documents must contain language indicating in positive terms that 30 percent or more of the particular bargaining unit no longer considers the existing certified bargaining representative as their representative. MERC found the effect of the appellants’ showing of interest as required in subsection (a) was tantamount to a request for an election — the terms were neutral, and nothing more. We cannot say that this determination constitutes so clear a showing of error as to require reversal.
Affirmed.
The terms "showing of interest”, as they relate to decertification petitions in labor questions mean written evidence to support the allegation of a petition, signed by 30 percent or more of the bargaining unit members.
MCLA 423.212; MSA 17.455(12).
A significant portion of the MERC opinion is set out here for the convenience of the reader:
"In the instant case the showing of interest documents submitted contained a number of signatures subscribed to the following language:
T am in favor of having an election to determine whether or not Central Michigan University Faculty Association should be my collective bargaining agent.’
After a complete review of the pertinent law and precedents we hereby affirm the determination made by the Director. We find that the showing of interest documents do not contain the affirmative allegations required within Section 12(a) of PERA, but merely request an election to be conducted. A showing of interest that merely requests an election is not in compliance with the statute. Detroit Board of Education, 1966 MERC Lab Op 393.
"In this case the petition submitted does not indicate in any manner that the Central Michigan University Faculty Association is no longer the representative. The language used merely asserts that the signatories are in favor (or find no fault) with the opportunity of having an election.2
See NLRB v Gissel Packing Co, 395 US 575 [89 S Ct 1918; 23 L Ed 2d 547] 71 LRRM 2481 (1969); NLRB v Swan Super Cleaners, Inc, 384 F2d 609, 66 LRRM 2391 (CA 6, 1967); Dayco Corp v NLRB, 382 F2d 577; 65 LRRM 3092 (CA 6, 1967).
Here, at most, the language indicates that the signatories were interested in an election and not that anyone was interested in decertifying or electing a new collective bargaining agent. Pursuant to Section 12(a) of the Act, a decertification petitioner must establish a showing of interest that the current collective bargaining agent 'is no longer a representative as defined in Section 11.’
"We find no merit in the Decertification Petitioner’s contention that the 'intention’ of the signatories was abundantly clear. While it would not effectuate the policies of the Act to require that the strict statutory language of Section 12(a) be complied with, there must be an affirmative indication in the decertification petition or card that the individual no longer desires to be represented by the current collective bargaining agent.”
CMU’s contention that the Administrative Procedures Act, MCLA 24.201; MSA 3.560(101), et seq., requires MERC to hold a hearing before dismissing a decertification petition is meritless. The action taken does not involve a contested case within the meaning of the APA. Kelly Downs, Inc v Racing Commission, 60 Mich App 539; 231 NW2d 443 (1975).
In light of our decision in this case, the request for stay of proceedings in district court on a matter involving collection of agency shop representation fees by CMUFA is moot.
Section 11 provides that a representative designated or selected by a unit majority "shall be the exclusive representatives of all the public employees in such unit for the purposes of collective bargaining.”
MERC uses the terms petition and showing of interest documents interchangeably in its opinion.
See Intertype Co, v NLRB, 401 F2d 41 (CA 4, 1968). Also see, 48 Am Jur 2d, Labor and Labor Relations, § 444, p 324:
"In order to determine whether the circumstances justify holding an election, the NLRB’s rules require the petitioner to supply evidence in support of his petition. This requirement, sometimes called a showing of interest, is purely an administrative determination not subject to challenge by any of the parties.”
Although MERC stated in its opinion below that the director’s determination "was purely administrative in nature requiring no further review”, MERC nevertheless permitted the parties to file legal briefs and issued its opinion and order. Article 6, § 28 of the 1963 Constitution provides that: "All final decisions, findings, rulings and orders of any administrative officer or agency existing under the constitution or by law, which are judicial or quasi-judicial and affect private rights or licenses, shall be subject to direct review by the courts as provided by law. This review shall include, as a minimum, the determination whether such final decisions, findings, rulings and orders are authorized by law * * * .” See MCLA 423.23(e); MSA 17.454(25)(e).
The Court strongly urges MERC to provide examples, by rule or otherwise, of showing of interest documents which contain language sufficient to justify the exercise of MERC’s duty to determine whether there is reasonable cause to believe that a question of representation exists. Had such rule or examples been extant, the present appeal and its expense to the litigants would have been unnecessary. | [
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Bashara, P. J.
This is an appeal from the granting of the intervening defendant’s motion for accelerated judgment pursuant to GCR 1963, 116.1(3).
In 1971 the Flint Police Chief was under pressure to reduce his police force due to a termination of a Federal grant. The plaintiff, the Genesee County Prosecutor, entered into an oral agreement with the police chief to select patrolmen for the prosecutor’s staff. The agreement provided that the plaintiff would supervise the patrolmen and reimburse the City of Flint for their pay.
Subsequently, the City of Flint entered into a collective bargaining agreement with the Flint Police Patrolmen’s Association (FPPA). A patrolman, thereafter, brought a grievance alleging that the patrolmen on the prosecutor’s staff were performing detective functions while being paid as patrolmen. The grievance went to arbitration between the City of Flint and the FPPA. The plaintiff alleges that he was neither informed of the arbitration proceeding nor a party to it. The arbitration panel ruled that the patrolmen on the prosecutor’s staff were performing the work of detectives and ordered that they be replaced by detectives.
The plaintiff filed a motion and complaint seeking a temporary restraining order against the City of Flint from enforcing the order of the arbitration panel. The theory proposed was that the patrol men were employees of the county and, therefore, not covered by the collective bargaining agreement between the City of Flint and the FPPA. The FPPA filed a motion to intervene and a motion for accelerated judgment pursuant to GCR 1963, 116.1(3), on the ground that the plaintiff lacked legal capacity to sue. The FPPA’s position was that the plaintiff lacked standing to attack an arbitration award construing the terms of a collective bargaining agreement between the City of Flint and the FPPA. The trial judge agreed and granted the FPPA’s motions to intervene and for accelerated judgment, dissolved the temporary restraining order, and dismissed the complaint.
The issue is whether the plaintiff lacked capacity to attack the arbitration award. One not a party to an arbitration is not bound by the award. Ford Motor Co v Wayne Circuit Judge, 247 Mich 538; 226 NW 218 (1929). It follows that a nonparticipant has standing to attack an arbitration award that makes determinations concerning its property or contractual rights. We agree with this well established rule. See Orion Shipping & Trading Co v Eastern States Petroleum Corp, 312 F2d 299 (CA 2, 1963), cert den 373 US 949; 83 S Ct 1679; 10 L Ed 2d 705 (1963), Sloan v Journal Publishing Co, 213 Or 324; 324 P2d 449 (1958), Carpenters’ Union v Citizens’ Committee to Enforce Landis Award, 333 Ill 225; 164 NE 393 (1928). We, therefore, conclude that the plaintiff has the legal capacity to maintain this action.
On the limited record before us, we refuse to rule on the merits of the remaining issues raised in plaintiff’s brief.
Reversed and remanded for trial. Costs to abide the outcome at trial. | [
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R. B. Burns, J.
Plaintiff brings an original civil action seeking a writ of superintending control and requesting us to vacate a judgment of the court below and declare a mistrial.
Plaintiff’s complaint evolves from the actions of a Recorder’s Court Judge in the case of People v Hibbitt, Recorder’s Court No. 73 00649. On the evening of May 31, 1973, the jury informed the court that it had reached a verdict. The judge excused the jury until the next morning, at which time the foreman announced to the court that they had found the defendant not guilty by reason of insanity. One juror remained seated during the swearing, and indicated upon the poll of the jury that she did not agree with the verdict. After eliciting the information that she had voted with the majority on the preceding evening, the court bound her to this previous vote over the strenuous objection of the prosecutor. The court then ac cepted the verdict, excused the jury, and committed the defendant to the care of the Department of Mental Health.
It is apparent from the great weight of authority that it was clearly erroneous for the court below to accept this nonunanimous verdict. There was no stipulation in this case pursuant to GCR 1963, 512.1 that a stated majority less than unanimity would be allowed to render a verdict. The clear language of GCR 1963, 512.2 provides that "If any juror expresses disagreement on such poll * * * the jury shall be sent out for further deliberation * * * ”. In People v Fleish, 306 Mich 8, 14; 9 NW2d 905, 907 (1943), the Supreme Court stated that a juror could recant a previous assent to a verdict at any time prior to his express in-court assent at the polling. See also People v Pizzino, 313 Mich 97, 105; 20 NW2d 824, 827 (1945), Stewart v People, 23 Mich 63, 78 (1871). The court should have instructed the jury to deliberate further or in the alternative determined if the jury was unable to reach a verdict.
Under GCR 1963, 820.1(7), this Court, in its discretion, may "[g]ive any judgment and make any order which ought to have been given or made, and make such other and further orders and grant such relief, as the case may require * * * >>
It is obvious that we cannot instruct the jury to deliberate further. However, we can determine that the jury could not reach a verdict and order a mistrial.
The Court hereby sua sponte declares a mistrial because the jury was unable to reach a verdict. The cause will be remanded to the trial court for a new trial.
Reversed and remanded for a new trial.
Danhof, P. J., concurred. | [
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Per Curiam.
Plaintiff brought suit against defendants in Wayne County Circuit Court by filing a complaint on August 16, 1969. Defendants filed answers on October 16 and 21, 1969. On July 12, 1971, the trial judge dismissed plaintiffs cause of action for lack of progress. Specifically, dismissal was pursuant to Wayne County Circuit Court Rule 17.1, which requires the case to be noticed for trial, by filing an "at issue” praecipe, within seven months of the filing of the answer. On August 8, 1973, plaintiff moved to reinstate his dismissed action. The trial judge entered an order on December 11, 1973, granting plaintiffs motion, from which defendant Bacon appeals by leave granted.
The reinstatement of a case which has been dismissed for no progress rests within the sound discretion of the trial court. This Court will not disturb that determination unless an abuse of discretion is plain, Reynolds v Dobbertin, 366 Mich 162; 113 NW2d 888 (1962), Prine v Hatfield, 5 Mich App 57, 59; 145 NW2d 809 (1966), Corley v Krawczak, 16 Mich App 176, 178; 167 NW2d 783 (1969). Appellate review is limited to ascertaining whether or not there was any justification for the lower court’s decision, Hurt v Cambridge, 21 Mich App 652; 176 NW2d 450 (1970). Here, all the relevant factors pointed toward reinstatement, and we affirm the trial court’s determination.
Plaintiffs cause of action was dismissed for no progress due to plaintiffs failure to notice the case for trial. Under the local court rules in effect at the time, defendants had an equal right to praecipe for trial. Defendants at all times had a remedy to any delay by simply noticing the case for trial. As summarized in Hurt v Cambridge, supra, at 661, this factor weighs heavily in favor of reinstatement:
"Both Abe Stein Co v Wood, supra, [151 Mich 657; 115 NW 1046 (1908)], and the Sayre case [199 Mich 414; 165 NW 859 (1917)], appear to require the conclusion that it is an abuse of discretion for a trial court to deny removal of a case from the no-progress docket, or to deny reinstatement after dismissal, solely on the ground that plaintiff failed to praecipe for trial. We need not, however, decide whether defendant’s failure in this case to notice for trial, standing alone, required removal of the case from the no-progress docket. We hold only that defendant’s acquiescence in the year’s delay was one among other relevant circumstances to be considered upon plaintiff’s motion to remove.”
A second important factor is the reason for plaintiff’s failure to notice the case for trial. Here, counsel for plaintiff indicated that his law partner died in October, 1970, causing great confusion as he had to assume over 100 active case files. The trial judge indicated in his reinstatement order that good cause for the delay had been shown, and we agree. The test which has been applied is whether the failure to praecipe was deliberate or unexplained, Hurt v Cambridge, supra, at 663. The case here fits neither category, and this factor also points toward ordering reinstatement.
The whole purpose of the no progress dismissals is to permit "the court upon its own initiative to clean up the deadwood which accumulates in the circuit courts”, Robinson v Washtenaw Circuit Judge, 242 Mich 548, 550; 219 NW 661 (1928). Therefore, when a plaintiff is in fact prosecuting his or her claim with due diligence, the policy of the local court rule will not be furthered by denying reinstatement, Hurt v Cambridge, supra, at 664. In the present case, plaintiff indeed was vigorously pursuing his claim when the case was dismissed. Plaintiff filed interrogatories to defendants on February 2, 1970 and June 30, 1971, answers to which were filed on February 20 and April 6, 1970, and August 23, 1971. Plaintiff filed depositions of two witnesses on July 28, 1971. Thus, discovery was taking place all during the time after the complaint was filed and prior to dismissal. In addition, plaintiff filed two discovery matters after dismissal, lending credibility to his claim that he never received actual notice of the dismissal. It is clear that plaintiff was diligently pursuing this lawsuit at the time it was dismissed, a factor strongly in favor of reinstatement.
The final consideration is the amount of prejudice to the defendants due to the plaintiff’s lack of initiative in pursuing his or her claim. The defendants must show actual prejudice which can be charged to the plaintiff’s delay, Hurt v Cambridge, supra, at 666. In the present case, the defendant appealing here claims that it cannot locate an important witness due to the long delays. We must reject that allegation as a showing of actual prejudice, for there is no indication that the defendants argued that point at the reinstatement hearing. An argument not presented to the trial judge will not ordinarily be considered on appeal, particularly where the appellant seeks review of the manner in which the judge exercised his discretion, Hartman v Roberts-Walby Enterprises, Inc, 17 Mich App 724, 732; 170 NW2d 292 (1969). This factor does not weigh against reinstatement.
In conclusion, we find that all of the relevant factors support the trial judge’s decision to reinstate plaintiffs cause of action. We reach the same result as in Hurt v Cambridge, supra, at 664, where it was summarized:
"We conclude that sufficient justification for removal had been shown. Plaintiff should not have suffered the 'drastic sanction’ * * * of dismissal with prejudice because of her counsel’s inadvertent failure to praecipe for trial. In this regard, we are persuaded that the policy of the law favoring disposition of litigation on the merits required removal of the case from the no-progress calendar.”
Defendant also contends on appeal that the provisions of Wayne County Circuit Court Rule 17.5 were not followed when the plaintiff moved to reinstate his action. However, in its answer to the motion to reinstate, defendant only alleged noncompliance with the Wayne County Circuit Court Rules in plaintiffs failure to file a brief in support of his motion. That brief was subsequently filed without objection, and we find no other issues in this regard that are preserved for appeal.
Affirmed, costs of this appeal to plaintiff.
Wayne County Circuit Court Rule 6.3 was effective March 21,1965 and provided as follows:
"An 'AT ISSUE PRAECIPE’ shall be filed by either party, with the Clerk of the Court and a copy served on the attorneys of record or parties in pro per, after the answer to the complaint has been filed.”
That rule became Wayne County Circuit Court Rule 9.8 on November 1, 1970, but the substance was unchanged until a revision became effective November 7, 1973. | [
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J. H. Gillis, J.
Defendant was found guilty by a jury of second-degree murder, contrary to MCLA 750.317; MSA 28.549, and two counts of assault with intent to commit murder, contrary to MCLA 750.83; MSA 28.278. He was sentenced to three identical concurrent terms of 20 to 40 years in prison and appeals as of right.
A brief discussion of the facts is necessary for an understanding of this case. On February 12, 1973, Samuel Curry and Jackie Terry ran into the defendant, Andre Fields, on the street. Curry testified at trial that he had loaned money to Fields on several occasions, which Fields refused to repay. This apparently was the . cause of the argument which ensued, culminating in a fighting incident between Andre Fields and Jackie Terry. Curry testified that Andre Fields pulled a knife, and that he, Curry, also pulled a knife and cut at Fields. The incident broke up with the defendant telling Curry that he "would be back”.
Thereafter, Samuel Curry, Jackie Terry and Gregory Spottsville went to the Davis Food Center where Curry and Terry were employees. Approximately 10 to 20 minutes later, the defendant, Andre Fields, and his brother, Cyrano Fields, entered the Davis Food Market, armed with a shotgun and a pistol respectively. Iva Davis, the proprietor of the grocery store, was also present, as was Richard Spottsville, Gregory’s brother.
Cyrano Fields went directly to Samuel Curry and asked him "if he was ready to die”. He then pointed the pistol at Curry and shot him. At about the same time defendant Andre Fields shot Jackie Terry and Gregory Spottsville. Jackie Terry died from the shotgun wound to his chest.
Defendant was charged with first-degree murder, contrary to MCLA 750.316; MSA 28.548, in the killing of Jackie Terry, and assault with intent to commit murder in the shooting of Gregory Spottsville. He was also charged with assault with intent to commit murder in the shooting of Samuel Curry as an aider and abettor.
Defendant’s first assignment of error is that the evidence produced at trial was not sufficient to warrant instructing the jury on first-degree murder. We do not agree. This issue was considered recently in the case of People v Berthiaume, 59 Mich App 451, 229 NW2d 497 (1975), where the following standard of review was set forth:
"[W]e must determine (1) whether taking the evidence in a light most favorable to the state, there was any evidence from which a jury could reasonably infer premeditation and (2) whether there was sufficient time to allow the defendant an opportunity for a 'second look’ prior to the shooting.” 59 Mich App at 456.
Also to be considered are the following matters: the prior relationship between the parties establishing motive, whether the weapon was obtained in preparation for the homicide, and the immediate circumstances of the killing and defendant’s post-homicidal conduct. People v Gill, 43 Mich App 598, 602-603; 204 NW2d 699 (1972), People v Morrin, 31 Mich App 301, 324; 187 NW2d 434, 446 (1971).
Applying these criteria to the case at bar, we believe that there was sufficient evidence to merit instructing the jury on first-degree murder. It should be recalled that after the encounter on the street between the defendant and Curry and Terry, the defendant told Curry he "would be back”. Defendant could have stayed away after this encounter, but instead, he and his brother returned, both bearing firearms. Viewing this evidence in the light most favorable to the prosecution, it is possible to infer that this activity evidenced premeditation or the conception of a design or plan to kill.
Defendant’s next assignment of error is that the trial court erred in that its instructions to the jury pertaining to first-degree murder were vague and incomplete, in that the terms "premeditation” and "deliberation” were not elaborated upon. The jury was instructed thusly:
"Murder is divided, as we have said, into two degrees —first and second degree. The difference between murder in the first degree and murder in the second, is that in murder in the first degree there must be a premeditation and deliberation and such a lapse of time as will give the mind time to calculate the purpose and intent of the killing.”
We have reviewed this instruction and the other references to first-degree murder in the instructions and find that it is adequate under People v Bodley, 38 Mich App 27, 31; 195 NW2d 803 (1972). It should be noted, also, that the particular instruction on first-degree murder was requested by defense counsel and not later objected to by him. We find no miscarriage of justice.
Next defendant contends that the trial court erred in its instructions to the jury on manslaughter. The instruction objected to in this instance is similar to the one that was rejected by another panel of this Court in People v White, 15 Mich App 527, 529; 166 NW2d 639 (1969). However, we feel that this case is somewhat different from White. In this case the judge instructed the jury as follows:
"If a man kills another suddenly and without provocation, the law implies malice and it is murder. If the provocation was such as must have greatly provoked him, the killing would be manslaughter only.
"The instrument with which the killing was done may be taken into consideration. If inflicted with a deadly weapon, the provocation must be great to make it manslaughter. The amount of resentment must bear a reasonable proportion to the provocation to reduce the offense to manslaughter. To make it manslaughter, it is also necessary that the killing be done immediately upon the happening of the provocation. If sufficient time elapses for passion to subside and reason to interpose, the killing is deliberate and the crime murder no matter how great the provocation.
" * * * if the element of malice is absent and the killing was committed under the influence of passion, or in the heat of blood produced by an adequate or reasonable provocation, or before a reasonable time had elapsed for the blood to cool, and as the result of temporary excitement by which the control of reason was disturbed, the offense is manslaughter and not murder.”
At the outset it should be noted that these instructions were part of the instructions requested by defense counsel and were not objected to by him. In White, supra, the instruction was objected to when the jury requested a clarification "regarding a lapse of time after provocation constituting malice”. 15 Mich App at 529.
Since in this case there was no objection to the instruction, we will only reverse if there has been a miscarriage of justice. MCLA 769.26; MSA 28.1096, People v Bodley, supra, 38 Mich App at 30.
Jury instructions are to be considered in their entirety, not by isolated excerpts. People v Frank Johnson, 58 Mich App 1; 226 NW2d 730 (1975), People v Hodo, 51 Mich App 628; 215 NW2d 733 (1974), People v Roberson, 44 Mich App 105; 205 NW2d 50 (1972).
The term "immediately” has been defined as "without interval of time” or "without delay”. Black’s Law Dictionary (4th ed), p 884, Webster’s Third New International Dictionary, p 1129. While it is true that the use of the term "immediately”, standing alone, would seem to preclude any interval of time between the provocation and the killing, the instructions must be read as a whole.
The very next sentence in the instructions talks in terms of "sufficient time elaps[ing] for passion to subside and reason to interpose”. Further on in the instructions the trial judge spoke in terms of "a reasonable time * * * for the blood to cool”. Reading the instructions together, we do not believe that there was a miscarriage of justice.
Defendant’s fourth assignment of error is that the trial court erred in refusing to give the instruction requested by defendant on diminished mental capacity. The trial court did, however, give the following instruction:
"In determining whether an intention essential to a crime, or premeditation and deliberation of an intention to kill, has been proven beyond a reasonable doubt to have existed or occurred, you should consider all of the evidence regardless of which party produced it and all of the surrounding circumstances, including any evidence of a substantially reduced mental capacity of the defendant, and of anything else affecting his mental state. You must consider what affects, if any, his mental capacity, if diminished, had on his ability to form any of the specific mental states that are essential to the crimes charged, or the included offenses. When a specific mental state, such as an intent to kill, is essential to a particular crime, that particular crime cannot be committed unless such mental state existed. If it did not exist because of reduced mental capacity, or for any other reason, that crime was not committed. However, if that mental state did exist, and the other elements of the crime have also been proven beyond a reasonable doubt, then that crime was committed, and a substantially reduced intelligence because of a deficiency of mental capacity or the effect of any substance upon the brain not amounting to insanity would be no defense to that crime.”
Defendant was described by a psychologist at trial as having an IQ of 68, which represented a mild retardate level of intelligence. He was also described by a psychiatrist as having a mild mental deficiency and functioning at the level of a 10 or 11-year-old, although he was 19 years of age. Such evidence of diminished capacity is admissible as it relates to defendant’s ability to form the specific intent necessary to commit a particular crime. People v Lynch, 47 Mich App 8; 208 NW2d 656 (1973).
Our review of the instruction given leads us to conclude that it was adequate to convey to the jury the applicable standards on diminished legal capacity. Defendant’s proposed instruction may have been preferable, but that is not the question here. We find no error in this regard.
Defendant’s final assignment of error is that the trial court erred by failing to inform the jury on the requisite intent necessary to find defendant guilty of aiding and abetting another in the commission of the crime of assault with intent to commit murder.
This assignment of error has to do with the jury’s finding that defendant was guilty as an aider and abettor to his brother Cyrano’s assault with intent to commit the murder of Sam Curry, in violation of MCLA 767.39; MSA 28.979.
Assault with intent to commit murder is a specific intent crime. People v Phillips, 37 Mich App 242, 245; 194 NW2d 501 (1971). Therefore, the prosecution must prove beyond a Reasonable doubt that the defendant possessed the specific intent or that he aided and abetted in the perpetration of the crime, knowing that his co-participant had the necessary specific intent. People v Sharp, 57 Mich App 624, 626; 226 NW2d 590 (1975). This intent may be inferred by the jury from circumstantial evidence. People v Wright, 44 Mich App 111; 205 NW2d 62 (1972). See also People v Palmer, 392 Mich 370, 378-379; 220 NW2d 393 (1974).
After reviewing the lengthy instructions relating to assault with intent to commit murder and aiding and abetting, we believe that they adequately explain the principles involved.
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Per Curiam.
On June 25, 1972, plaintiff, Zoe Pappas, was a passenger on a motorcycle being driven by its owner. The motorcycle was struck by an uninsured motorist, and plaintiff sustained serious injuries. Plaintiff brought suit against Central National Insurance Group of Omaha, claiming coverage under the uninsured motorists section of a policy on the motorcycle, issued to the owner as the named insured. The trial judge granted defendant’s motion for summary judgment on grounds that passengers were not extended such coverage under the terms of the policy. An appeal as of right was taken from that ruling.
Under the Central policy, "the insured” was uniformly defined as the named insured, his spouse, and his children. The "liability” portion of the policy provided that Central would pay all sums "the insured” should become legally obligated to pay as damages because of bodily injuries to various classes of persons, one of which was passengers. Under the uninsured motorists provisions, passengers were not covered. Central agreed only to pay all sums which "the insured” should become legally entitled to recover as damages from the owner or operator of an uninsured automobile.
Plaintiff admits that the terms of the Central policy do not provide uninsured motorists coverage for passengers. She contends instead that the "exclusion” of passengers from that section of the policy is void as contrary to the public policy expressed in certain Michigan statutes. We cannot agree.
Insurance companies issuing policies to citizens of this state are required to provide uninsured motorists coverage. MCLA 500.3010; MSA 24.13010 provides as follows:
"No automobile liability or motor vehicle liability policy * * * shall be delivered or issued for delivery in this state * * * unless coverage is provided * * * for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles * * * unless the named insured rejects such coverage in writing.” (Emphasis added.)
Plaintiff is correct in her assertion that if a particular policy fails to include uninsured motorists coverage for "persons insured thereunder” it shall be valid but shall be deemed to include those persons within that coverage, Blakeslee v Farm Bureau Mutual Insurance Co, 388 Mich 464; 201 NW2d 786 (1972); MCLA 500.3012; MSA 24.13012. Our point of disagreement comes in defining the phrase "persons insured thereunder” as used in the statute.
This Court has recently discussed the statutory language in the case of Roach v Central National Insurance Co of Omaha, 60 Mich App 40; 230 NW2d 297 (1975). In that case permissive users of the vehicle were "insured” under the liability portion of the policy. That is, the company agreed to pay all sums that such users might become legally obligated to pay to third parties through the use of the insured vehicle. The Roach Court held that an attempt to exclude these permissive users from uninsured motorist coverage was void, stating:
"In the case at bar, the defendant is attempting to exclude a class, required to be insured under the liability policy, by redefining insured under the uninsured motorist endorsement of the insurance policy. This it cannot do.
"The statute requires an insurance company to provide uninsured motorist coverage in a motor vehicle liability policy for the protection of persons insured thereunder. 'Persons insured thereunder’ refers to those persons insured in the liability policy.
"The clear purpose and the mandatory language of the statute require that uninsured motorist coverage must be provided to the same persons included as insureds in the liability policy.” 60 Mich App, at pp 46, 47. (Emphasis added.)
In the present case, passengers are not "insured” under the liability section of the policy. Central has not agreed to assume any liabilities passengers may incur with respect to third parties. Passengers are merely mentioned in the policy as potential claimants, in the same category as pedestrians or drivers of other cars injured by the negligence of "the insured”. Plaintiff surely cannot argue that those other classes of persons also must be given uninsured motorists coverage, for the burden would be too great. The Legislature has seen fit to limit the scope of the statute to persons insured under the liability provisions of an insurance policy, and we have neither the power nor the inclination to extend it.
Affirmed, costs of this appeal to appellees.
The actual appellant here was another insurance company-defendant, Farmers Insurance Group. By an amended complaint, plaintiff attempted to recover from Farmers under an insurance policy issued to her father. That policy extended uninsured motorists coverage to the whole Pappas family, but included an "other insurance” exclusion. Farmers argued below that it was not liable here because plaintiff was covered under the Central policy, bringing into play the "other insurance” exclusion.
In the order granting defendant Central’s motion for summary judgment, plaintiff was granted summary judgment against Farmers. Since Farmers alone filed the claim of appeal, plaintiff is technically an appellee here. However, since plaintiff adopts Farmer’s brief as her own, and because purely legal issues are involved here, we shall treat this case as though plaintiff were simply appealing the summary judgment in favor of Central. | [
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Danhof, P. J.
Defendant was convicted by a jury of possession with intent to deliver the controlled substance marijuana, MCLA 335.341(1)(c); MSA 18.1070(41)(1)(c). He was sentenced to nine months in jail, five years probation, and fined $2,000; and he appeals as of right. We affirm.
Two undercover police officers of the Petoskey police department picked up a hitchhiker shortly past midnight on July 10, 1972. The hitchhiker told them that marijuana could be purchased at a certain house. The officers proceeded to that house where they were greeted by the codefendant in this case, who, in the presence of the defendant, confirmed the availability of the controlled substance and agreed to a price. The officers returned at 2:30 a.m., purchased a quantity of marijuana for $150, and arranged to return later to purchase more.
At 8 a.m. on the same day, the officers returned and agreed with the two defendants to purchase nine pounds of marijuana. The defendants produced nine bags which had been placed in a cardboard box and a paper grocery bag. When the defendants offered to assist the officers to carry the marijuana to their car, they were both placed under arrest.
The only issue of significance raised by the defendant on appeal involves his contention that the trial court erred by instructing the jury that they must consider the principal charge before they could consider lesser included offenses. In support of this argument, defendant cites People v Harmon, 54 Mich App 393; 221 NW2d 176 (1974), which was based upon People v Ray, 43 Mich App 45; 204 NW2d 38 (1972). This contention reflects some confusion over the rule formulated in Ray and applied in Harmon which may be clarified by an examination of those decisions and subsequent decisions of this Court refining that rule.
In Ray, the trial court instructed the jury in part:
" 'If you find the defendant not guilty of the first charge, then go to the second charge. You don’t have to vote on all of them. If you find him guilty of the first charge, there is no need to go to the other charges.
" 'The Court: Well you have to either keep voting on the ñrst charge until you either all ñnd him not guilty, or all ñnd him guilty. ’ ” (Emphasis in original.) 43 Mich App 48.
Defendant Ray objected to this charge, contending "that the emphasized portion of the court’s instruction, by requiring unanimous agreement on defendant’s innocence of the greater charge before they could consider the lesser charges was unduly coercive and deprived defendant of a fair trial”. This Court accepted the defendant’s contention and held that, "the requirement of unanimous agreement on defendant’s innocence of the greater charge before discussion of the lesser charges is permitted is coercive, unduly restrictive and reversible”.
Thus, it is apparent that in Ray, the Court found reversible error in the trial court’s insistence that unanimous agreement be reached before other offenses were considered. Reversible error was not necessarily found in that part of the infirm instruction relating to the order in which the various possible verdicts were to be considered.
This distinction is also evident in People v Harmon, supra. In that case, the trial court had instructed the jury in a supplemental charge:
" 'If you find that he did commit the act upon — of rape * * * beyond a reasonable doubt, then, he is guilty of the crime charged. Before you can go or consider the lesser included offenses, you must ñrst then determine that he did not commit that crime. If you consider that and Gnd and are satisñed from your deliberations that he did not commit the crime as charged, then you can consider the lesser included offenses and only then. That would be the assault with intent to commit rape, assault and battery, or simple assault. If you are not satisfied beyond a reasonable doubt that he committed any of those acts, then, the verdict would be not guilty.’ (Emphasis added.)” 54 Mich App 394.
In finding this instruction reversibly erroneous, the Court had occasion to discuss the rationale of the Ray decision:
”Ray seeks to prevent those jurors opposed to a defendant’s conviction on a higher charge from being coerced into voting for conviction by an instruction requiring acquittal of that higher charge before lesser offenses can even be considered. For example, if the jury is considering the charge of assault with intent to commit rape, and juror A is opposed to conviction, he may be coerced into changing his vote to guilty by the prospect that the lesser included offenses of assault and battery and simple assault will not even be considered unless all the remaining 11 jurors agree to acquit the defendant of assault with intent to commit rape.”
Again, the principal flaw in this instruction was held to be the requirement that all of the jurors reach agreement on the greater charge before lesser offenses could be considered.
This distinction is reinforced by consideration of those decisions which cite Ray, but which do not find reversible error in the complained-of instruction. In People v James, 51 Mich App 777, 786; 216 NW2d 473 (1974), the defendant relied upon Ray in arguing that the trial court’s instruction was coercive in that it unduly restricted the jury’s method of deliberation. This argument was rejected by this Court:
"Read in their entirety, the instructions on lesser included offenses do not support defendant’s position. Contrary to the situation presented in Ray, there was no 'requirement of unanimous agreement on defendant’s innocence of the greater charge before discussion of the lesser charges (was) permitted ***.’”
A similar argument was raised in People v Bates, 55 Mich App 1, 6; 222 NW2d 6 (1974). This Court discussed the lower court’s instruction in relation to the Ray rule on unanimity:
"The trial court in the present case indicated that the jury should deliberate initially on the major charge, then weigh the lesser included offenses, and finally consider an acquittal. This instruction did not impose a requirement of unanimous agreement at each stage of the jury’s deliberation. The trial court merely indicated a logical method whereby the various possible verdicts would be considered in an orderly sequence. This instruction, to which no objection was made at trial, is not reversibly erroneous.”
It thus becomes clear that the reported cases have involved two defects in the charge on lesser included offenses; one of them reversibly erroneous, and the other not necessarily so. Although it is not the law in this state that a jury must consider possible verdicts in any particular order, an instruction to this effect, although undesirable and expressly discouraged, is not reversibly erroneous. It is only when a jury is instructed that they must first decide the greater charge and reach unanimous agreement on it before they can even consider lesser offenses that reversible error arises. Failure to recognize this distinction has led to the mistaken conclusion, reached by the defendant in the present case, that any time a trial judge mentions a sequence by which the jury might consider possible verdicts, the instruction becomes coercive and produces reversible error.
This distinction appears in the recent decision in People v Freeman, 57 Mich App 90, 91; 225 NW2d 171 (1974). In that case, the Court considered the following instruction:
" 'Now, my instruction to you is that when you undertake to resolve these matters from the evidence you have heard in accordance with this instruction that you will first direct yourself to the issue that I have just indicated, that being an issue of whether or not the prosecution has proved beyond a reasonable doubt that this defendant is guilty of armed robbery as I have described it. If you do not so find, then you must give consideration to the lesser included offenses that I am now going to describe for you.’ (Emphasis supplied.)”
The Court observed that this instruction is "perilously close” to that condemned in Ray and Harmon, but concluded that the trial judge "did not expressly require a finding of not guilty before the lesser offenses could be considered”. All that he did do, was to direct that the principal offense be considered first. Of course, there is no requirement to that effect; "How the jury proceeds in its sacrosanct jury room is not ours to prescribe.” Nevertheless, the instruction "was not reversibly erroneous” although "similar language is better avoided”.
In the present case, the trial court instructed the jury in the following language deemed objectionable by the defendant:
"If you decide that your verdict is not guilty of the offense of possession and delivery of marijuana as it relates to one or both of the defendants, you may then consider if the people have proved the included offense of possession of marijuana.”
This instruction, especially when read as part of the entire charge, does not require unanimous agreement on the principal charge before any attention can be given to the lesser offense. Rather, it suggests that if, at any time, the jury were to decide that the defendant is not guilty of the principal offense, then the jury "may” consider the lesser offense. The jury was not told that they "must” consider the lesser charge, as they were in Freeman; there is even less of a coercive tendency in the language used in the present case than there was in that used in Freeman. The trial court merely indicated to the jury that there was a lesser offense which they may want to consider in the event that they determined that the defendant should not be convicted on the greater charge. No rigid pattern forcing each juror to come to a final decision at each step was imposed by the trial court’s comment. No fixed procedure governing the jury’s deliberation was required.
We reiterate the admonition in Freeman to avoid any attempt to structure the jury’s deliberative process. However, we conclude that the language used in the present case did not constitute reversible error.
The remaining issues raised by the defendant are of little merit. Defendant argues that the trial court erred by denying his motion for a separate trial. The granting or denial of a separate trial is discretionary in the trial court. MCLA 768.5; MSA 28.1028. People v Schram, 378 Mich 145; 142 NW2d 662 (1966). Defendant has not shown prejudice to any substantial right. People v Foster, 51 Mich App 213; 214 NW2d 723 (1974), lv den 392 Mich 778 (1974). The trial court did not abuse its discretion under the circumstances of this case. People v Patton, 15 Mich App 198, 201; 166 NW2d 284 (1968).
During the charge to the jury, the trial court read the information and the statute. Thus, the instruction did not omit an essential element of the crime, contrary to defendant’s assertion on appeal. People v Wheat, 55 Mich App 559, 562-563; 223 NW2d 73 (1974). Furthermore, not only did defendant’s trial counsel fail to preserve the question for appeal by timely objection, he affirmatively expressed satisfaction with the instruction. GCR 1963, 516.2.
Affirmed.
Bashara, J., concurred.
The distinction has recently been recognized by a panel of this Court over which Judge V. J. Brennan, the author of the opinion in People v Ray, supra presided. While approving the decision in Ray, the panel in People v Bankston, 61 Mich App 275; 232 NW2d 381 (1975), quoted with approval from People v Bates, supra, to indicate that an instruction which does not include "the coercive requirement of unanimous agreement” is "factually distinguishable” from the instruction found in Ray. | [
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J. H. Gillis, J.
On November 29, 1973 a jury found defendant guilty of delivering a controlled substance (heroin), contrary to MCLA 335.341(l)(a); MSA 18.1070(41)(l)(a). He received a 13-to-20 year jail sentence, and appeals as of right.
The sole issue we deal with on appeal is whether defendant received effective assistance from his trial counsel. Normally, when defendant seeks to challenge the competency of his trial attorney, he must first file a motion for a new trial and an evidentiary hearing. People v Ginther, 390 Mich 436; 212 NW2d 922 (1973), People v Moore, 391 Mich 426; 216 NW2d 770 (1974). In the instant case, defendant’s trial counsel filed a motion for a new trial, but it is unclear upon what ground this motion rested. The trial judge temporarily denied the motion because no trial transcripts were available at that time. The motion was never renewed. As stated earlier, this failure to renew the motion would usually preclude review. However, in Ginther, supra, the Court recognized an exception to this rule by holding that a motion for a new trial is required only when defendant’s assertion of incompetence "depends on facts not of record”. Because, in the instant case, there is substantial support in the record for defendant’s contention, we feel that his failure to renew his motion does not bar our review.
Turning now to the merits of this case, it is first necessary to give a detailed statement of its under lying facts in order to put defendant’s allegation in its proper perspective.
On April 18, 1973, the prosecution filed an information charging defendant with the unlawful sale of heroin. According to the prosecutor’s theory of the case, defendant sold $10 worth of heroin to one Robert Roach, a police informer, on February 27, 1973. Prior to the sale, Roach had been searched at his own home by the police, he had been wired with a transmitting device, and he had been given $25. Roach then drove in his own car to defendant’s house, followed by the police in a separate unmarked auto. Roach entered defendant’s house and allegedly purchased $10 worth of heroin. The transmitting device malfunctioned; the police were unable to see or hear anything that occurred in the Lewis’ home. After the alleged purchase, Roach drove back to his house in his own car and then gave the police $15 and some heroin.
By April 30, 1973, defendant had been arraigned, a preliminary examination had been held, and assigned counsel had filed an appearance. On May 9, 1973, defendant was granted bail and trial was set for August 1. On July 12, assigned counsel filed a motion for the "production of exculpatory evidence”, said motion being unsupported by a brief.
On August 2, defendant fled before the second day of his trial could begin. A mistrial was then declared. Soon afterwards, defendant was rearrested and trial was reset for November 27. On November 13, defense counsel made a motion for,a' polygraph test of defendant at state expense "because my client informs me he is completely innocent”. The motion was denied, and on November 27, defendant’s trial began anew.
On the morning of November 28, defense counsel made a motion for a mistrial on the basis that he had forgotten to file a notice of alibi. Defense counsel admitted that defendant had informed him of the alibi in April. He also admitted that he and defendant’s wife had discussed the alibi in "May or June”. The prosecutor "vaguely” remembered discussing the alibi with defense counsel prior to the aborted August 1 trial. Defense counsel stated that he only remembered defendant telling him about the alibi back in April, and claimed that defendant did not give him the names of the potential alibi witnesses. He further stated that although he had spoken many times with defendant since April, defendant did not give him the names of the alibi witnesses until that morning, November 28. Counsel did not claim to have asked for the names. The trial judge denied the motion for a mistrial, but waived the notice requirement and allowed defense counsel the remainder of the day to produce the alibi witnesses.
At this juncture, it is appropriate to detail the particulars of defendant’s alibi defense. Essentially, defendant contends that on the date in question, he, his cousin Michael Holbrook, and his brother-in-law Allen Jones left Flint at approximately 10:30 a.m. to visit a cousin, Clyde Anderson, in Saginaw. The four men remained together in Saginaw until 3:30 p.m. At that time defendant, Holbrook, and Jones left Saginaw and returned to Flint. Defendant and Holbrook then dropped Jones off and proceeded to Holbrook’s house, where they remained until 9 p.m. Defendant’s wife, Modie Lewis, concurred in this version of the story. She also stated that Roach came to their house at 6:30 p.m., asked for heroin, and was told that they had none. According to Ms. Lewis, Roach left soon afterwards. This alibi, if effectively set forth and verified by all the witnesses at trial, would have presented a direct conflict with the prosecution’s theory that defendant sold heroin to Robert Roach at 6:30 p.m. the same day.
On the morning of November 29, defendant’s trial began again. Defense counsel called Modie Lewis to the stand. She testified that she had attempted to get in touch with Michael Holbrook the previous day, and that a friend of his told her that Michael was now in the army and stationed in California. She further testified that defendant’s brother-in-law, Allen Jones, had died a few days after the alleged sale occurred. A death certificate was introduced into evidence to verify this. No mention ;was made of the Saginaw cousin, Clyde Anderson. This testimony is the sole evidence in the record relating to any effort to contact the alibi witnesses.
After Modie Lewis testified, defense counsel put James Siebel, a General Motors’ employee, on the stand. Siebel testified that he was in charge of the employees’ work records at a certain General Motors’ plant, and that Michael Holbrook was an employee at that plant. In response to a question from defense counsel, Siebel stated that Holbrook had worked from 6:30 a.m. to 3 p.m. on February 27, 1973, the day he supposedly spent in defendant’s company.
It is fairly obvious that Siebel’s testimony severely damaged defendant’s attempt at an alibi defense. While there are feasible explanations to negate the damaging effect of this testimony,* ** on its face it destroyed defendant’s credibility. The only explanation that this Court can devise for defense counsel’s introduction of this testimony is that defense counsel did not know what this witness would say on the stand. Under the strange circumstances of this case, that explanation seems consistent.
The issue we must decide then is whether, on the facts of this case, defendant was denied the effective assistance of counsel.
The question of what constitutes, "effective assistance of counsel” is a difficult one; the law in this area is in constant evolution. Different jurisdictions employ different standards. In Michigan, a standard was first put forward 7in People v Degraffenreid, 19 Mich App 702; 173 NW2d 317 (1969). In Degraffenreid, supra, the Court held that the Sixth Amendment right to counsel guaranteed defendant only that his trial would not be a "sham, farce or mockery of justice,” and that he would receive some sort of minimal assistance of counsel. Degraffenreid, supra, did recognize that oftentimes defense counsel will make a "serious mistake” in a specific case, even though that attorney has otherwise adequately represented defendant. In certain cases where such a mistake has occurred, defendant will be entitled to retrial.* ****** This right to retrial is not based on the Sixth Amendment right to counsel, but rather on the constitutional right to a fair trial, and on appellate courts’ power to control the administration of justice.
In Beasley v United States, 491 F2d 687 (CA 6, 1974), the Sixth Circuit rejected the "farce and mockery of justice” test. It joined itself with a growing number of jurisdictions in holding that the Sixth Amendment requires " * * * counsel reasonably likely to render and rendering reasonably effective assistance”. Beasley, supra, at 696. In doing so, the court recognized that phrases such as "farce or mockery of justice”, and for that matter "reasonably effective assistance” mean nothing in the abstract. What was important was to look at each case individually, and to decide whether defendant had received a fair trial.
The Beasley court did indicate that defendant was denied effective assistance if defense counsel "deprive[d] a criminal defendant of a substantial defense by his own ineffectiveness or incompetence”. Beasley, supra, found an obligation on defense counsel’s part to "investigate all apparently substantial defenses available to the defendant and * * * assert them in a proper and timely manner”.
The requirement of Beasley, supra, that defense counsel investigate potential defenses and assert them is a duty that numerous jurisdictions recognize. The rationale of these cases is irrefutable. The importance of defense counsel’s pretrial investigation and preparation cannot be overemphasized. The court in Moore v United States, 432 F2d 730 (CA 3, 1970), effectively enunciated the policy behind the requirements of adequate preparation and investigation:
"Adequate preparation for trial often may be a more important element in the effective assistance of counsel to which a defendant is entitled than the forensic skill exhibited in the courtroom. (Moore, supra, at 735.)
"The exercise of the utmost skill during the trial is not enough if counsel has neglected the necessary investigation and preparation of the case or failed to interview essential witnesses or to arrange for their attendance. Such omissions, of course, will rarely be visible on the surface of the trial”. (Id at 739.)
We now hold that when defendant is able to show this Court that defense counsel, through failure to investigate and prepare a substantial defense, has deprived defendant of that substantial defense, defendant shall have made a prima facie showing of incompetence.
Returning to the record in the instant case, we find, "as is typical in cases raising a claim of ineffectiveness, [it] poses more questions about defense counsel’s competency than it answers.” United States v DeCoster, 487 F2d 1197, 1201 (US App DC, 1973). Since we remand for an evidentiary hearing on this matter, we find it necessary to discuss the principles we think ought to control the "questions posed”.
As stated before, defendant is entitled to have defense counsel investigate, prepare, and assert all substantial defenses. The trial judge, at the evidentiary hearing, must decide whether defendant sought to avail himself of this right, and if he did so, whether the defense was indeed "substantial”.
The record here clearly reveals that defense counsel did not adequately investigate, prepare, and assert the alibi defense. If anything, he destroyed it. The important question, unanswered by the record, is whether defendant made a good faith effort to convey to his counsel the fact that he wanted the alibi asserted. Defendant is not free to sit back and not inform his attorney of possible defenses, and then claim that counsel’s failure to assert those defenses is evidence of incompetence. People v Luster, 44 Mich App 38; 205 NW2d 78 (1972), State v Robinson, 302 So 2d 270 (La, 1974). In deciding this question, the trial judge should examine whether defense counsel made himself available to defendant, what effort defendant made to communicate with defense counsel, and whether defendant was reasonably under the impression that defense counsel was going to assert the alibi.
If the trial judge finds that defendant did indeed make a good faith attempt to communicate the alibi defense to defense counsel, the trial judge need only then decide whether the defense was "substantial”. By "substantial”, we mean whether either Michael Holbrook or Clyde Anderson is willing to verify defendant’s version. If either of the two witnesses’ stories accords with defendant’s, defendant is entitled to a new trial. The trial judge may not make any judgment as to whether he thinks the witnesses are in fact telling the truth, for that is a function of the jury upon retrial. McQueen v Swenson, 498 F2d 207 (CA 8, 1974). On the other hand, if both witnesses refute defendant’s contention that he was with them on the day in question, no retrial is necessary, because defendant would not have been deprived of a "substantial” defense.
Defendant’s other allegation of error is correct, but harmless.
Remanded for proceedings not inconsistent with this opinion.
People v Ginther, 390 Mich 436, 442-443; 212 NW2d 922, 925 (1973).
Robert Roach, the only eyewitness to the alleged sale, is an admitted transvestite who has suffered three gross indecency convictions, as well as a breaking and entering conviction and a carrying a concealed weapon conviction. On the night in question, Roach was dressed as a woman and wore the transmitting device in his brassiere. He went under the alias of Mandy Ross.
Robert Roach was the only person to testify at the preliminary examination.
MCLA 768.20; MSA 28.1043 requires defendant to file a notice, prior to trial, listing all alibi witnesses he intends to call.
While this Court can merely guess, it appears that defense counsel was attempting to show that if Holbrook was not at work on February 27, this fact would at least inferentially support defendant’s claim that Holbrook was with him.
It is possible, for example, that either General Motors’ records were inaccurate or that Michael Holbrook was defrauding General Motors by having another person "punch” him in.
For a comprehensive discussion of the historical and constitutional underpinnings of various standards used to evaluate a "competency of counsel” claim, see People v Strodder, 394 Mich 193, 210-218; 229 NW2d 318 (1975, Williams, J. concurring), and Waltz, Inadequacy of Trial Defense Representation as a Ground for Post-Conviction Relief, 59 NWU L Rev 289 (1964).
In People v Degraffenreid, 19 Mich App 702, 710; 173 NW2d 317, 321 (1969), the Court relied on a quote from Williams v Beto, 354 F2d 698, 704 (CA 5, 1963) in setting forth the applicable standard: "It is the general rule that relief from a final conviction on the ground of incompetent or ineffective counsel will be granted only when the trial was a farce, or a mockery of justice, or was shocking to the conscience of the reviewing court, or the purported representation was only perfunctory, in bad faith, a sham, a pretense, or without adequate opportunity for conference and preparation.”
"In deciding whether to grant a new trial because of a serious mistake a court applies concepts akin to those implicit in the harmless error rule, balancing the public interest in avoiding purposeless retrials against the defendant’s interest in having all his rights recognized and asserted. Ordinarily a new trial will not be granted unless it appears that if a new trial is ordered during the conduct of which the mistake is not repeated the defendant may very well be acquitted.” Degraffenreid, supra, at 718; 173 NW2d 326.
Idat 715; 173 NW2d 324.
Beasley v United States, 491 F2d 687, 696 (CA 6, 1974).
Id at 696 (Citations omitted.)
See, McQueen v Swenson, 498 F2d 207 (CA 8, 1974), United States v DeCoster, 487 F2d 1197 (US App DC, 1973), Johns v Perini, 462 F2d 1308 (CA 6, 1972), Coles v Peyton, 389 F2d 224 (CA 4, 1968), Moore v United States, 432 F2d 730 (CA 3, 1970), Roberts v Dutton, 368 F2d 465 (CA 5, 1966), People v Ibarra, 60 Cal 2d 460; 34 Cal Rptr 863; 386 P2d 487 (1963), Thomas v State, 516 SW2d 761 (Mo App, 1974), People v White, 182 Colo 417; 514 P2d 69 (1973), Risher v State, 523 P2d 421 (Alaska, 1974).
We note that defense counsel’s "petition for fees” contained no reference to any conference held with defendant. While this fact, taken alone, is not sufficient to raise an inference of ineffective assistance, we think it has probative value. People v Vaughn, 31 Mich App 599, 603; 188 NW2d 53, 55 (1971).
Should retrial be necessary, special heed should be paid to the mandates of People v Falkner, 389 Mich 682, 695; 209 NW2d 193, 199 (1973):
"We hold that in the examination or cross-examination of any witness, no inquiry may be made regarding prior arrests or charges against such witnesses which did not result in conviction; neither may such witness be examined with reference to higher original charges which have not resulted in conviction, whether by plea or trial.” | [
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Allen, P. J.
The Secretary of State appeals from the lower court’s denial of a motion to set aside a default judgment in this action involving the motor vehicle accident claims fund. MCLA 257.1101; MSA 9.2801, et seq. The following chronological sequence aptly exposes the pertinent facts:
May 20, 1970 — Plaintiff was injured while riding in a motor vehicle that collided with an automobile owned and operated by defendant, an uninsured motorist;
December 2, 1970 — Plaintiff notified the Secretary of State of his intention to file a claim against the motor vehicle accident claims fund;
May 22, 1973 — Plaintiff filed suit against defendant;
July 12, 1973 — Plaintiff forwarded copies of the summons and complaint to the Secretary of State;
August 11, 1973 — An affidavit and default was entered against the defendant;
June 17, 1974 — Plaintiff gave written notice of the default to the Secretary of State;
June 26, 1974 — The lower court entered a default judgment against the defendant;
July 5, 1974 — The Secretary of State appeared and filed an answer;
July 29, 1974 — The Secretary of State moved to set aside the default judgment;
November 6, 1974 — The court entered its order denying the motion.
The gravamen of this cause centers around the construction of § 8 of the Motor Vehicle Accident Claims Act:
"(1) Section 7 does not apply in the case of a judgment entered in an action in which the defendant did not enter an appearance, did not file an answer, or did not appear in person or by counsel at the trial, or judgment was entered upon the consent or with the agreement of the defendant, unless the secretary has been given notice in writing of the failure, consent or agreement and has been afforded an opportunity to take such action as he may deem advisable under subsection (2).
"(2) Where the secretary is served with notice in writing under this section, he may enter an appearance within 30 days, file an answer, make payment into court, appear by counsel at the trial or take such other action as he may deem appropriate on behalf and in the name of the defendant, and thereupon, on behalf and in the name of the defendant, may conduct his defense, and may consent to judgment in such amount as he may deem proper in all the circumstances, and all acts done in accordance therewith shall be deemed to be the acts of the defendants.
"(3) Where pleadings have been closed, the secretary, upon giving notice to the court and to all proper parties to the action that he intends to defend the action on behalf and in the name of the defendant, may reopen the pleadings upon praecipe.” MCLA 257.1108; MSA 9.2808.
The Secretary of State takes the position that subsection 2, supra, requires a lapse of 30 days between written notice of default and entry of default judgment so as to afford the Secretary an opportunity to appear and answer. It follows that entry of the default judgment nine days after notice is contrary to § 8(2); the Secretary appeared within 30 days, and is not liable to compensate plaintiff.
Plaintiff views § 8 in a different light. He maintains that where pleadings have been closed § 8(3) requires the Secretary to reopen the pleading via praecipe within 30 days of the default judgment. Since the Secretary of State failed to file a praecipe within 30 days of the default judgment, the lower court correctly denied the motion to set the judgment aside.
The Court is convinced that neither position accurately reflects the substance of § 8 as applied to the instant case. Under § 8(1) a claimant against the "fund” must give written notice of an uninsured motorist’s default to the Secretary of State. June 17, 1974, plaintiff notified the Secretary of State in writing of the defendant’s default. Section 8(2) affords the Secretary of State 30 days from receipt of notice to appear and take whatever action he deems advisable. The Secretary of State made an appearance and filed an answer on July 5, 1974. Between the notice and appearance — June 26, 1974 — a default judgment was entered. Since one can hardly intervene in a suit where pleadings are closed, we look to § 8(3) for guidance.
Where pleadings are closed, §8(3) requires the Secretary of State to notify the court and proper parties of his intent to defend. No time deadline is found in § 8(3); it is reasonable that the same 30-day limitation in § 8(2) is applicable as well. In the instant case, although the default judgment rendered the subsequent appearance and answer by the Secretary of State ineffective under § 8(2), this Court opines the Secretary of State’s action sufficed to apprise the court and plaintiff of his intent to defend under § 8(3). Moreover, since the action taken by the Secretary on July 5, 1974, came within 30 days of the initial notice of default, such action effectively nullified the default judgment as to the Secretary of State, and his subsequent motion to set aside the default judgment on July 29, 1974, was unnecessary.
Nonetheless, the pleadings must be reopened in order for the Secretary of State to defend the action. The mechanism for reopening under § 8(3) is by praecipe. Whether vel non the praecipe is filed within the 30 days is of no consequence here, since the Secretary of State’s action on July 5, 1974, satisfied the time limitation of § 8, and nullified the judgment as to him. As to the Secretary of State, the case is ready for trial.
Reversed and remanded for futher proceedings not inconsistent with this opinion. No cost, a public question.
Section 7 of the Motor Vehicle Accident Claims Act provides for payment by the Secretary of State of a judgment against an uninsured motorist.
Thyne v Beggs, 62 Mich App 353; 233 NW2d 278 (1975). In Thyne, the Secretary of State received notice of default on May 7, 1974. Default judgment was entered on May 20, 1974, and the Secretary of State "chose to become a party” to the action by moving to set aside the judgment on June 5, 1974. The lower court denied the motion, and a panel of this Court reversed: "Without affecting its validity as to defendant * * * we hold that the default judgment is a nullity as to the Secretary of State.” 62 Mich App at 354.
The motion to set aside the default judgment on July 29, 1974 sufficed in lieu of praecipe as a mechanism for reopening the pleadings.
The language in Forsee v Kohari, 16 Mich App 505, 510; 168 NW2d 455 (1969), lends credence to this Court’s position: "We find no limitation in § 8 as to times when the Secretary may not reopen the pleadings * * * provided he acts within 30 days * * * .” (Emphasis supplied.) Cf. Seffens v Muradian, 17 Mich App 455; 169 NW2d 657 (1969), held: the trial court erred in not allowing Secretary of State to reopen pleadings once judgment was entered, where first notice as required by § 8 was not given until after the consent judgment. | [
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M. J. Kelly, J.
Suit was brought under the nuisance abatement statute, MCLA 600.3801; MSA 27A.3801. The charge was that The Little Foxes Men’s Club was being used for the purpose of prostitution. After a hearing, the trial judge ordered that the building be padlocked for one year. An order requiring the sale of the furniture, fix tures and contents of the building was stayed by this Court. In addition, the trial court issued an order restraining Ida Gladstone, Elizabeth Kristal and their servants, agents, employees, representatives and assignees from conducting, maintaining or permitting the use of the building for prostitution. Land contract vendee of the real estate, Maritza Adams, appeals.
Of the four defendants, only Gladstone and Kristal were personally served with process. Gladstone, the land contract vendor of the property, disclaimed any concern for the outcome of the case. In fact, her counsel left in the middle of the hearing.
One Richard Anderson rented the property from Maritza Adams and, it seems, Mr. Anderson owned and operated the club. The address given for Mr. Anderson on an application for a building permit proved fictitious. Process servers were unable to locate Richard Anderson and Maritza Adams. Defendant Adams is purchaser of the property under an unrecorded land contract and is the person who leased the property to the elusive Mr. Anderson. The land contract lists 24620 Roanoke, Oak Park, as the address of defendant Adams. When the police went to that address, the occupants disclaimed knowledge of Maritza Adams. No further attempts were made to notify defendant Adams of the pendency of this suit.
On appeal, defendant Maritza Adams claims that the statute here invoked is unconstitutionally violative of the due process clause of the Fourteenth Amendment to the US Constitution. The purported defect is that the statute "fails to require that timely notice and an opportunity to be heard be given to those persons who are known and whose interests are sought to be affected”. Plaintiffs contend that the nuisance abatement statute is in rem and that therefore efforts at obtaining personal jurisdiction are unnecessary. That very proposition was disavowed for due process purposes in Mullane v Central Hanover Bank & Trust Co, 339 US 306, 312, 313; 70 S Ct 652, 656; 94 L Ed 865, 872 (1950):
"[I]n any event we think that the requirements of the Fourteenth Amendment to the Federal Constitution do not depend upon a classification for which the standards are so elusive and confused generally and which, being primarily for state courts to define, may and do vary from state to state. Without disparaging the usefulness of distinctions between actions in rem and those in personam in many branches of law, or on other issues, or the reasoning which underlies them, we do not rest the power of the State to resort to constructive service in this proceeding upon how its courts or this Court may regard this historic antithesis.”
US Const, Am XIV, § 1 states that "[n]o [sjtate shall * * * deprive any person of * * * property, without due process of law * * * ". Against that explicit constitutional language, we must weigh the claim of plaintiff that personal service on defendant Gladstone is constitutionally sufficient as a predicate to adjudicating the property rights of defendant Adams.
Although Adams and Gladstone each have rights in the property upon which the club sits, the interests are not identical. Defendant Gladstone declined to participate in the trial court hearing. Adams is the real party in interest. The Legislature has provided, MCLA 600.3810(1); MSA 27A.3810G):
"An owner of the premises within the meaning of this chapter is deemed to be the grantee or vendee of the last recorded deed or contract which describes the premises, * * * and the naming of such person a party defendant gives the court authority to abate the nuisance * * *
Thus, the vendee has a statutorily recognized interest at stake. Although the statute speaks of the last "recorded” contract, the lack of recordation should not defeat defendant’s claim where, as here, plaintiff has actual knowledge of the land contract vendee.
We hold that the procedures here used to notify defendant Adams of the pendency of this action were inadequate under existing Michigan Law.
MCLA 600.3801; MSA 27A.3801, the statute relied on by plaintiff, reads in pertinent part:
"Any building * * * used for the purpose of * * * prostitution * * * is hereby declared a nuisance * * * and nuisances shall be enjoined and abated as hereinafter provided, and as provided in the court rules. ” (Emphasis ours.)
The court rule provision, GCR 1963, 782, sets forth the procedure that must be followed:
".1 Procedure to Abate Public’Nuisance. Actions to abate public nuisances are governed by the general rules of procedure and evidence for non-jury actions, except as provided in the statutes covering public nuisances, and in these special rules.
".2 Service of Process. In an action to abate a public nuisance, if service cannot be obtained under Rule 105 service may be had under Rule 106.”
The applicable means of serving process is set forth in GCR 1963, 105.1. Service of process of an individual may be made "by leaving a summons and a copy of the complaint with the defendant personally”. This plaintiff failed to do.
That is not to say that plaintiff is without remedy. Plaintiff’s relief lies in GCR 1963, 105.8:
"The court in which an action has been commenced may, in its discretion, allow service of process to be made upon a defendant in any other manner which is reasonably calculated to give him actual notice of the proceedings and an opportunity to be heard, if an order permitting such service is entered before service of process is made upon showing to the court that service of process cannot reasonably be made in the manner provided for under other rules.?’
If the trial court declines to exercise its discretion on the plaintiff’s behalf, plaintiff has another alternative. Pursuant to GCR 1963, 782.2, the inability to serve process under GCR 1963, 105 calls into play the' methods of serving process under GCR 1963, 106. All of these things plaintiff may do. Plaintiff may not, consistent with due process, proceed to lock up a defendant’s property without first diligently trying to give that defendant actual notice of the proceedings and an opportunity to be heard. We do not pass on the constitutionality of the statute; we hold inadequate the service of processes here attempted.
Our finding that appellant was not properly notified under the statute renders a discussion of the remaining allegation of error unnecessary.
Reversed. No costs, a public question being involved. | [
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Bronson, P. J.
Plaintiff-appellant, American Mutual Liability Insurance Company, is attempting by way of declaratory judgment to impose on defendant-appellee, Michigan Mutual Liability Company, the burden of satisfying a judgment owed to one Donald H. Barden for injuries he sustained in an industrial accident.
Barden was employed as a truck driver by the Graff Trucking Company. On October 19, 1962 in the course of his employment with Graff he delivered a truckload of paper pulp to the Kalamazoo Paper Company. While assisting a forklift operator —one Edward Shallhorn, a Kalamazoo employee— in unloading the bales of paper pulp, Barden was seriously injured.
Michigan Mutual, the workmen’s compensation carrier for Graff, paid workmen’s compensation benefits to Barden. Barden and his wife instituted an action in tort against Kalamazoo.
Kalamazoo was insured under a comprehensive general liability policy by American Mutual. American Mutual defended the Barden suit on behalf of Kalamazoo and settled for $125,000. Michigan Mutual obtained a protective order for reimbursement of the amount of workmen’s compensation benefits paid to Barden and was subsequently reimbursed.
Contemporaneous with its defense of the Barden complaint, American Mutual brought this declaratory judgment action against Michigan Mutual, alleging that an automobile liability insurance policy issued to Graff by Michigan Mutual provided coverage for Shallhorn, the Kalamazoo forklift operator. The pertinent portions of the Michigan Mutual automobile policy provide as follows:
"COVERAGE A — BODILY INJURY LIABILITY-AUTOMOBILE to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages * * * caused by accident and arising out of the ownership, maintenance or use of any automobile.
"HI. DEFINITION OF INSURED. The unqualified word insured includes the named insured * * * and (2) under coverage A and C any person while using an automobile or a hired automobile and any person or organization legally responsible for the use thereof, provided the actual use of the automobile is by the named insured or with his permission.”
American Mutual maintains that Shallhorn used the Graff truck with the permission of Graff (through its employee, Barden) and that Kalamazoo was an "organization legally responsible for the use thereof’ because it was Shallhorn’s employer. Accordingly, the argument continues, Kalamazoo was an "insured” within the meaning of that term in the Graff automobile policy issued by Michigan Mutual.
Michigan Mutual responds, inter alia, by citing the following exclusion provision contained in the automobile policy:
"This policyv does not apply: * * * (f) under coverage A and B, to any obligation for which the insured or any carrier as his insured may be held liable under any workmen’s compensation, unemployment compensation or disability benefits law, or any similar law; * * * (1) under coverage A, to bodily injury to or sickness, disease or death of any employee of the insured arising out of and in the course of (1) domestic employment by the insured, if benefits therefor are in whole or in part either payable or required to be provided under any workmen’s compensation law, or (2) other employment by the insured.”
Michigan Mutual contends that even if Kalamazoo is deemed to be an insured within the meaning of the automobile policy, Barden was in fact Kalamazoo’s employee for purposes of the unloading operation. Since Barden’s injury arose out of his employment with Kalamazoo, Michigan Mutual maintains that Kalamazoo is potentially "liable under * * * workmen’s compensation * * * law” and the above exclusion provision comes into play, rendering Michigan Mutual immune from any liability under the policy.
The trial judge agreed with Michigan Mutual and entered judgment in its behalf at the close of trial, holding that Barden was "in fact an employee of both the Graff Trucking Company and the Kalamazoo Paper Company for the purposes of the unloading operation”. Because of the "employee exclusion” clause, the trial judge concluded that "the policy of Michigan Mutual did not afford coverage to * * * the Kalamazoo Paper Company for the injuries suffered by Don Barden and the litigation arising out of said injuries”.
American Mutual appeals this decision of the trial judge and the findings of fact and conclusions of law upon which it depends. It is undisputed that if his determination that Barden was an employee of Kalamazoo at the time of the accident is upheld, the "employee exclusion” clause in the Michigan Mutual automobile policy will protect Michigan Mutual from liability.
American Mutual’s attack on the trial judge’s finding of an employment relationship between Barden and Kalamazoo is two-fold: (1) the finding that Barden was Kalamazoo’s employee is clearly erroneous; (2) Michigan Mutual is estopped from maintaining that Barden was Kalamazoo’s employee. We discuss each argument in turn.
I.
Since the trial judge sat as trier of fact in this case, his factual findings cannot be overturned unless we find them to be "clearly erroneous”. GCR 1963, 517.1. Put another way:
"We do not substitute our judgment in a non-jury case for that of the trial judge unless the facts clearly indicate an opposite result must be reached.” Leidig v Rockwood & Co, 48 Mich App 248, 252; 210 NW2d 257 (1973).
In order to determine whether an employment relationship existed between Barden and Kalamazoo, the trial judge consulted case law construing various provisions of the workmen’s compensation and employment security acts. This was entirely appropriate, especially given the prominence of the "employee exclusion” clause defined in terms of potential workmen’s compensation liability.
Our Supreme Court applies an "economic real ity” test to determine whether an employment relationship exists. Tata v Muskovitz, 354 Mich 695; 94 NW2d 71 (1959), Schulte v American Box Board Co, 358 Mich 21; 99 NW2d 367 (1959), Goodchild v Erickson, 375 Mich 289, 293; 134 NW2d 191 (1965). In Tata, supra, the Supreme Court adopted the views of Justice Talbot Smith as expressed in his dissent in Powell v Employment Security Commission, 345 Mich 455, 462 et seq.; 75 NW2d 874 (1956). Justice Smith elaborated on his conception of the economic reality test, concurring in Schulte, supra, at 33:
"This is not a matter of terminology, oral or written, but of the realities of the work performed. Control is a factor, as is payment of wages, hiring and firing, and the responsibilities for the maintenance of discipline, but the test of economic reality views these elements as a whole, assigning primacy to no single one.”
See, also, Cronk v Chevrolet Local Union 659, 32 Mich App 394, 399; 189 NW2d 16 (1971).
Considering the four factors listed by Justice Smith in light of the facts of the instant case, and "assigning primacy to no single one”, we conclude that the trial judge’s finding that Barden was Kalamazoo’s employee for purposes of the unloading operation is not clearly erroneous.
There was testimony that Kalamazoo did exercise control over the unloading process, in that Graff truck drivers followed the orders of the Kalamazoo forklift operators and the Kalamazoo shipping clerk. The assistance provided by the Graff drivers came at the request of Kalamazoo, because unloading the bales of pulp was a "two-man job”. Though Kalamazoo had no power to hire or fire Graff drivers, Kalamazoo could discipline a given driver by insisting that he not be allowed to deliver pulp in the future. Graff drivers were paid for the time they spent assisting in the unloading process. These payments were made indirectly by Kalamazoo through the tariffs established by Graff and approved by the Michigan Public Service Commission. See Renfroe v Higgins Rack Coating & Manufacturing Co, Inc, 17 Mich App 259, 266; 169 NW2d 326 (1969).
In terms of "economic reality”, Kalamazoo was Barden’s employer during the unloading process. Kalamazoo requested and received unloading assistance from Graff truck drivers, exercised control. over them, paid for their services and profited from their assistance, being spared the necessity of having an additional employee on hand to help the forklift operators unload the bales. Under these circumstances, the trial judge’s finding of a "dual employment” relationship, see Renfroe, supra, was not clearly erroneous because the facts do not show that an opposite result must be reached.
II.
American Mutual maintains, in the alternative, that Michigan Mutual should be estopped from asserting that Barden was a Kalamazoo employee at the time of the accident..
The suggestion is that because workmen’s compensation is the exclusive remedy for an employee who seeks to recover damages for a work-related injury from his employer, Barden could not have sued Kalamazoo in circuit court unless he was not a Kalamazoo employee. The fact that a settlement agreement was reached between Kalamazoo and Barden and approved by the circuit court is said to indicate that no one involved in the Barden-Kala mazoo suit considered Barden an employee of Kalamazoo. And because Michigan Mutual participated in the Barden-Kalamazoo action by obtaining a protective order to safeguard its subrogation rights, Michigan Mutual cannot now assert that Barden was a Kalamazoo employee. This general argument is supported by reference to three theories of estoppel.
The first is that Michigan Mutual refused a demand to defend Kalamazoo in the Barden-Kalamazoo lawsuit. This refusal, coupled with Kalamazoo’s reasonable settlement of the Barden claim, binds Michigan Mutual to the outcome and all attendant factual determinations of that case, just as a party would be bound. One necessary factual prerequisite to the maintenance of the BardenKalamazoo lawsuit was Barden’s employment status with Kalamazoo, i.e., that Barden was not a Kalamazoo employee. By refusing to defend, it is said that Michigan Mutual necessarily accepted the factual matrix of the Barden-Kalamazoo lawsuit, including the fact that Barden was not a Kalamazoo employee.
While it is generally true that an insurer’s wrongful refusal to defend an action against its insured will render the insurer liable for costs and attorneys’ fees, Cooley v Mid-Century Insurance Co, 52 Mich App 612; 218 NW2d 103 (1974), we need not decide whether a wrongful refusal to defend carries with it the additional penalties suggested by American Mutual. See Morrill v Gallagher, 370 Mich 578; 122 NW2d 687 (1963). There is nothing in the record before us to suggest that Michigan Mutual was ever requested to defend Kalamazoo in the Barden-Kalamazoo litigation. Absent a request, an insurer has no duty to defend an insured. Eastman v United States, 257 F Supp 315, 319 (SD Ind, 1966), Gribaldo, Jacobs, Jones & Associates v Agrippina Verisicherunges A G, 3 Cal 3d 434, 449; 91 Cal Rptr 6 (1970), Nationwide Mutual Insurance Co v General Accident, Fire & Life Assurance Corp, 23 Ohio App 2d 263; 262 NE2d 885, 887 (1970), Payton v St John, 188 So 2d 647, 652 (La App, 1966). Accordingly, Michigan Mutual could not be bound in any way by the Barden-Kalamazoo lawsuit on the ground that it failed to defend Kalamazoo.
The doctrine of res judicata is also urged by American Mutual in support of its claim that Michigan Mutual is estopped from alleging that Barden was a Kalamazoo employee. American Mutual suggests that one issue necessarily "decided” by the settlement of the Barden-Kalamazoo lawsuit was the fact that Barden was not a Kalamazoo employee. Michigan Mutual, because of its participation in the Barden-Kalamazoo suit, is said to be precluded from asserting the contrary in the present case.
An extended discussion of the law of res judicata is unnecessary. One requirement is that the subsequent case alleged to be barred by or merged in the prior case involved the same "cause of action” as the prior case. Tucker v Rohrback, 13 Mich 73 (1864), Sovereign v Sovereign, 354 Mich 150, 154; 92 NW2d 600 (1958). In order to determine whether the same cause of action is involved, we must decide:
"[W]hether the facts or the evidence essential to the maintenance of the two actions are identical. If they are, the doctrine of res judicata bars the subsequent action.”
Mango v Plymouth Township Board of Trustees, 33 Mich App 715, 718; 190 NW2d 285 (1971), Topps-Toeller v City of Lansing, 47 Mich App 720; 209 NW2d 843 (1973).
A comparison of the Barden-Kalamazoo case with the instant action confirms Michigan Mutual’s claim that they are quite different. The Bar-den-Kalamazoo lawsuit sounded in tort and was based on traditional negligence principles, requiring proof of duty, breach, proximate cause and the like. The present American Mutual-Michigan Mutual litigation is a declaratory judgment action seeking a judicial interpretation of an insurance policy. This case calls for different witnesses and different proofs to establish facts different from those involved in the Barden-Kalamazoo action. Since the two lawsuits do not involve the same facts or evidence, res judicata principles will not prevent Michigan Mutual from asserting that Bar-den is a Kalamazoo employee.
Finally, American Mutual turns to the law of collateral estoppel to prevent Michigan Mutual from using Barden’s employment status as a shield to avoid liability under the insurance policy. Collateral estoppel, a variant of res judicata, prohibits parties from relitigating those issues which have previously been decided between them. American Mutual asserts that the consent judgment entered in the Barden-Kalamazoo lawsuit conclusively established that Barden was not a Kalamazoo employee. Assuming once again for purposes of argument that Michigan Mutual actually participated sufficiently in the Barden-Kalamazoo dispute to warrant its being bound by the consent decree, the question becomes: What, if anything, is actually adjudicated between two parties to a consent judgment?
This is a question of first impression in Michigan. There is a split in other jurisdictions, though recent cases have refused to give collateral estoppel effect to consent judgments. For the reasons which follow, we are of the opinion that consent judgments should not be given collateral estoppel effect.
First, collateral estoppel rules do not require that a consent judgment bind a party to facts which were originally in issue in the action that was settled. A consent judgment reflects primarily the agreement of the parties. Dora v Lesinski, 351 Mich 579, 582; 88 NW2d 592 (1958). The action of the trial judge in signing a judgment based thereon is ministerial only. The parties have not litigated the matters put in issue, they have settled. The trial judge has not determined the matters put in issue, he has merely put his stamp of approval on the parties’ agreement disposing of those matters. But a judgment can be given collateral estoppel effect only as to those issues which were actually and necessarily adjudicated. Howell v Vito’s Trucking and Excavating Co, 386 Mich 37, 42; 191 NW2d 313 (1971). It follows that because the issues involved in the settled case were not actually adjudicated, one of the prerequisites to giving a judgment collateral estoppel effect is not satisfied. Thus, the answer to the question posed above is: Nothing is adjudicated between two parties to a consent judgment.
While the fact that a consent judgment does not satisfy the legal requirements of collateral estoppel is reason enough to reject American Mutual’s contention, there are also persuasive policy reasons for denying collateral estoppel status to consent decrees. The social interest in reducing in stances of costly litigation is undermined by a rule which provides drastic consequences for settlements. One will tend to avoid a settlement rather than be later bound in potentially far-reaching, and often unintended, ways by facts imbedded in an otherwise innoccuous settlement agreement. Because the application of the doctrine of collateral estoppel to consent judgments will in many cases be unforeseeable, consent judgments may become less desirable, thus impeding and embarrassing the settlement process. As Professor James puts it: "Any rule which tends to assure contest rather than compromise * * * probably tends, on balance, to increase rather than decrease litigation.”
Moreover, refusing to construe consent judgments as adjudicating the issues joined therein will not threaten any legitimate expectations of repose, since none of the parties to the consent judgment ever bargained for such protection. Nor will a rule giving collateral estoppel effect to consent judgments promote judicial consistency, since the judges are not deciding anything. In short,
"Where the parties to a consent judgment have not agreed to be * * * bound [collaterally upon a certain point], the rules pertaining to the effect of judgments do not require that they should be, and the relevant considerations of policy and expediency require that they should not be.”
We hold that Michigan Mutual is not collaterally estopped from maintaining that Barden was a Kalamazoo employee.
In conclusion, Michigan Mutual is not prohibited from claiming that Barden was Kalamazoo’s employee at the time of the accident. The trial judge’s decision to sustain this claim is not clearly erroneous and must be affirmed. Accordingly, the trial judge was correct in holding that the "employee exclusion” clause of the Michigan Mutual automo bile insurance policy applies to absolve Michigan Mutual from liability to American Mutual.
Affirmed. Costs to appellee.
The fact that Barden was injured by a "fellow servant” is no longer relevant. MCLA 418.827; MSA 17.237(827), MCLA 418.141; MSA 17.237(141). Indeed, workmen’s compensation would be Barden’s exclusive remedy. Sergeant v Kennedy, 352 Mich 494; 90 NW2d 447 (1958).
MCLA 418.131; MSA 17.237(131).
It is clear that the party to be estopped must have participated in the prior action for res judicata to apply. Jordan v CA Roberts Co, 379 Mich 235, 243; 150 NW2d 792 (1967).
Michigan Mutual’s participation in the Barden-Kalamazoo suit consisted of: 1) filing a motion to be joined as a party plaintiff or in the alternative to have a lien imposed on any recovery obtained by Barden in order to protect its rights as subrogee as to the amount of workmen’s compensation benefits already paid to Barden; 2) obtaining a protective order from the trial court which required reimbursement to Michigan Mutual out of the proceeds of the litigation and denying to Michigan Mutual both party status and the right to actively participate in the suit; 3) inclusion in the consent judgment of an order of reimbursement. We assume for purposes of this appeal, but do not decide, that Michigan Mutual "participated” in the BardenKalamazoo lawsuit for res judicata purposes. On this issue, see Bachelder v Brown, 47 Mich 366; 11 NW 200 (1882), Carpenter v Carpenter, 136 Mich 362; 99 NW 395 (1904), Walz v Reliance Insurance Co of Philadelphia, 221 Mich 345; 191 NW 236 (1922), Hedler v Manning, 252 Mich 195; 233 NW 223 (1930), Jones v Chambers, 353 Mich 674, 681-682; 91 NW2d 889 (1958).
For a summary of the applicable principles see Howell v Vito’s Trucking and Excavating Co, 386 Mich 37; 191 NW2d 313 (1971), Jacobson v Miller, 41 Mich 90; 1 NW 1013 (1879).
Had the two cases been identical, the fact that the Barden-Kala mazoo case was a consent judgment would not have rendered traditional res judicata analysis inapplicable. See Russell v White, 63 Mich 409, 412; 29 NW 865 (1866), Tudryck v Mutch, 320 Mich 99; 30 NW2d 518 (1948), Prawdzik v Heidema Bros, Inc, 352 Mich 102, 112; 89 NW2d 523 (1958), Knowlton v City of Port Huron, 355 Mich 448; 94 NW2d 824 (1959), Shank v Castle, 357 Mich 290, 296; 98 NW2d 579 (1959), In re Bizanes Estate, 363 Mich 396; 109 NW2d 823 (1961).
See Howell v Vito’s Trucking and Excavating Co, 386 Mich 37, 42; 191 NW2d 313 (1971).
See fn 2, supra.
Annotation, 2 ALR2d 514; James, Consent Judgments as Collateral Estoppel, Í08 U Pa L Rev 173, 174, footnotes 4 and 6 (1959).
In re Penn Central Transportation Co, 354 F Supp 759, 770 (ED Pa, 1972), Sealol Corp v Flexibox, Ltd, 242 F Supp 693 (D DC, 1965), Sleek v Butler Bros, 53 111 App 2d 7; 202 NE2d 64 (1964), People v Barenfeld, 203 Cal App 2d 166; 21 Cal Rptr 501 (1962), Eaton v Allen, 362 P2d 93 (Okla, 1961), Burgess v Consider H Willett, Inc, 311 Ky 745; 225 SW2d 315 (1949).
We have adopted and hereby acknowledge the analysis of Professor James as presented in his article, Consent Judgments as Collateral Estoppel, 108 U Pa L Rev 173 (1959).
Id., at 176.
Id, at 178-179.
It goes without saying that if the parties intend that the settlement is to bind them on certain issues of fact, and if this intention is reflected in the consent judgment, collateral estoppel will apply. See James, supra, at 180. The consent judgment involved here does not go so far.
James, Consent Judgments as Collateral Estoppel, 108 U Pa L Rev 173,191 (1959).
Id., at 185.
Id., at 185.
Id, at 186.
Id., at 193. This is the prevailing view of the commentators. See articles cited in James article, supra, at 174, footnote 6.
American Mutual also suggests that the doctrine of "equitable estoppel” will bar Michigan Mutual from taking a position on Bar-den’s employment status different from that implicit in the BardenKalamazoo lawsuit. Some of the cases cited in support of this argument are, strictly speaking, examples of the rule of collateral estoppel, where one party attempts to assert a claim against another inconsistent with a fact previously determined between them. See, e.g., Besonen v Campbell, 243 Mich 209; 220 NW 301 (1928), Chat-ham-Trenary Land Co v Swigart, 245 Mich 430; 222 NW 749 (1929), Michaelson v Simula, 264 Mich 457; 250 NW 264 (1933), Rodgers v Mikolajczak, 361 Mich 61; 105 NW2d 25 (1960), Burgess v Holder, 362 Mich 53; 106 NW2d 379 (1960). Other cited cases involve the principle that a party making a judicial admission by espousing one view before a court may not contradict that admission on a subsequent occasion. Hassberger r General Builders’ Supply Co, 213 Mich 489; 182 NW 27 (1921), Majewski r Martin Bros Barrel & Box Co, 230 Mich 548; 203 NW 102 (1925). Still others apply the doctrine of "election of remedies” which provides that once a party chooses one method of obtaining relief, he may not later select a different and inconsistent alternative. Mintz v Jacob, 163 Mich 280; 128 NW 211 (1910), Donovan v Curts, 245 Mich 348; 222 NW 743 (1929), Mertz v Mertz, 311 Mich 46; 18 NW2d 271 (1945), Morris v Ford Motor Co, 320 Mich 372; 31 NW2d 89 (1948).
These cases involve principles which are inapplicable to the facts before us. Michigan Mutual did not take any position at all in the Barden-Kalamazoo lawsuit. It merely sought to protect its subrogation rights by requesting a protective order. Its payment of workmen’s compensation benefits to Barden, while indicative of a belief that Barden was Graff’s employee, does not in the least constitute an admission that Barden was not also at the same time a Kalamazoo employee. Mere payment of benefits does not determine the rights of the parties, MCLA 418.831; MSA 17.237(831). Moreover, Kalamazoo, as Barden’s employer, might be liable for workmen’s compensation benefits along with Graff. MCLA 418.435; MSA 17.237(435), Renfroe v Higgins Rack Coating & Manufacturing Co, Inc, 17 Mich App 259; 169 NW2d 326 (1969). Since no facts were adjudicated in the BardenKalamazoo lawsuit, and since Michigan Mutual did not, and in fact was ordered not to, take part in that case, there is no basis for estoppel, be it "equitable” or otherwise. | [
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McGregor, J.
Previously, we held that plaintiffs’ cause of action for breach of warranty sounded in tort under Michigan law and that, by application of our "borrowing” statute, the 2-year Indiana statute of limitations pertaining to tort claims barred the plaintiffs’ suit. However, our Supreme Court vacated our order and remanded the case back to us for reconsideration and determination of whether Indiana would apply the 4- year limitation period established by UCC § 2-725 or the 2-year limitation period applicable to actions for injuries to persons or property. Therefore, we will now attempt to make that determination and reconsider this action in light thereof.
At the outset, we are confronted with a major obstacle. Neither Indiana’s highest court nor the Federal courts in applying Indiana law have decided the issue presented. Thus, we have at least two possible options: (1) either we could attempt to predict what the Indiana Supreme Court would decide if this issué were presented and thereby, in effect, create limited precedent for the Indiana courts, or (2) we could simply state that, since Indiana’s highest court has not decided this issue, there is no Indiana law to apply and that, as a result, Michigan law will apply. While the choice of either option has merit, we believe that in light of our Supreme Court’s directive, the proper course is to pursue the first option and to predict what limitations period the Indiana Supreme Court would apply.
In making this prediction, we note that the Indiana Court of Appeals, applying Indiana law, has had an opportunity to discuss the priority of the UCC’s limitations period for breach of warranty vis-a-vis another statutory limitations period.
In Helvey v Wabash County REMC, 278 NE2d 608 (Ind, 1972), the plaintiff brought an action for breach of express and implied warranties against the defendants for damages caused to household appliances by the furnishing of electricity at excessive voltage. The electric company defended on the basis that the UCC’s 4-year statute of limitations applied and that more than 4 years had accrued since the accident occurred. The plaintiff countered by arguing that electrical energy is not a transaction in goods under the UCC, but rather, a furnishing of a service, and that as a result, Indiana’s 6-year statute of limitations on contract actions should apply. In deciding the issues presented in favor of the defendant, the Indiana Court of Appeals made the following statement:
"We further take note that one of the principle underlying purposes in adoption of the Uniform Commercial Code is 'to make uniform the law among the various jurisdictions.’ IC 1971, 26-1-1-102(2)(c), Ind Ann Stat § 19-1-102(2)(c) (Burns 1914). With this in mind, we rely upon the authority of Gardiner v Philadelphia Gas Works (1964), 413 Pa 415, 197 A2d 612 wherein natural gas was determined to be goods within the scope of the Uniform Commercial Code, therefore, the four-year statute of limitations was applicable.” 278 NE2d at 610.
The Indiana court, in further discounting Helvey’s claim that the Indiana 6-year statute applies, made the following observation which is relevant to the case before us:
"Helvey further argues that electricity not being goods under the purview of the Uniform Commercial Code, the previously mentioned six-year statute of limitations necessarily applies. REMC counters this argument, and we believe correctly, that the two-year statute of limitations for damage to personal property (IC 1971 34-1-2-2, Ind Ann Stat § 2-602 [Burns 1967]) would be applicable.” (Emphasis added.) 278 NE2d at 610.
We interpret this statement to mean that if the transaction is not covered by the UCC, then the Indiana courts would apply their 2-year statute of limitations; on the other hand, if the transaction is covered by the UCC, then the Indiana courts would apply the 4-year statute of limitations contained therein.
We believe that the Indiana courts would hold that the present controversy is under the purview of the Uniform Commercial Code and that, as a result, they would apply its 4-year statute of limitations to this action. We reach this result for two reasons. First, the Court in Helvey noted that one of the principal underlying purposes of the UCC is "to make uniform the law among the various jurisdictions”, and that by applying the UCC’s provisions concerning breaches of express and implied warranties in cases similar to the present case, that purpose would be furthered. Secondly, the Helvey court cited the Gardiner case with approval. This case held that the 4-year statute of limitations of the Uniform Commercial Code prevailed over Pennsylvania’s general 2-year statute of limitations pertaining to tort actions. In relying on this single Indiana Court of Appeals decision, we reiterate the fact that we could find no decisions by the Indiana Supreme Court or the Federal courts which would be of useful guidance in determining the issue presented.
However, having decided that Indiana would apply the UCC’s 4-year statute of limitations to the facts presented, our inquiry is not ended. This is because the same section of the UCC which provides for the 4-year statute of limitations also provides for the determination of when that limitation period commences to run. UCC § 2-725 provides in part:
"(2) A cause of action accrues when the breach oc curs, regardless of the aggrieved party’s lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered.”
Therefore, under UCC 2-725(2), the breach of warranty in the instant case occurred when the goods were delivered to the plaintiff on August 27, 1968, and as a result, plaintiffs cause of action accrued as of that date, thereby triggering the beginning of the 4-year statute of limitations.
This accrual provision becomes important because Michigan has adopted the Uniform Statute of Limitations on Foreign Claims Act, which provides in part:
"(1) As used in this section, 'claim’ means any right of action which may be asserted in a civil action or proceeding and includes, but is not limited to, a right of action created by statute.
"(2) The period of limitation applicable to a claim accruing outside of this state shall be either that pre scribed by the law of the place where the claim accrued or by the law of this state, whichever bars the claim.”
Thus, we must apply either the Indiana 4-year statute of limitations or the relevant Michigan statute of limitations, whichever bars the claim.
In determining the relevant Michigan statute, it is important to note that the "borrowing” statute uses the term "claim” and defines it as "any right of action which may be asserted in a civil action”. Under Michigan law a right of action for breach of warranty is treated as a tort claim and, therefore, the Michigan courts would presumably apply the general 3-year statute of limitations for an action instituted to recover for personal injuries. See State Mutual Cyclone Insurance Co v O & A Electric Cooperative, 381 Mich 318; 161 NW2d 573 (1968).
On this basis, it appears that the application of the shorter Michigan 3-year statute of limitations is warranted by the facts of the instant case.
The crucial question that now arises is on what date should the Michigan 3-year statute of limitations have begun running. If it commenced to run on the accrual date provided by Indiana law under UCC-2-725 (August 27, 1968), plaintiffs’ action will then be barred, as their action was not commenced until July 6, 1972, more than three years later.
On the other hand, MCLA 600.5833; MSA 27A.5833 provides that a claim based on breach of warranty of quality or fitness accrues at the time that the breach of the warranty is discovered or reasonably should be discovered. See Parrish v B F Goodrich Co, 46 Mich App 85; 207 NW2d 422 (1973). Thus, plaintiffs’ breach of warranty claim presumably was discovered on the date of the accident, July 15, 1969, and, applying Michigan law to the facts, the 3-year statute of limitations would not bar this claim as this suit was commenced within 3 years of this accrual date.
In Parrish, supra, our Court held that MCLA 600.5833 should be considered as the tolling statute when read in conjunction with UCC 2-725. The Court stated:
"We also note that the enactment of the commercial code, effective in Michigan on January 1, 1964, did not operate to repeal MCLA 600.5833, supra. See MCLA 440.9991; MSA 19.9991, and MCLA 440.9992; MSA 19.9992. Therefore, reconcilation of the two statutes is in order.
"MCLA 440.2725, supra, also provides:
" '(4) This section does not alter the law on tolling of the statute of limitations * * * . ’
"We think the language of the commercial code to the effect that a breach of warranty occurs at delivery should be used to determine where the cause of action accrued, not when. There has been a longstanding policy in Michigan that the statute of limitations should not expire before damage has been suffered. Felt v Reynolds Rotary Fruit Evaporating Co, 52 Mich 602 (1884). That policy led to the enactment of MCLA 600.5833, supra, which now should be read as a tolling statute, unaffected by the subsequent language of the commercial code. The effect of such an interpretation leads to the conclusion that the causes of action in this case accrued in Michigan where the potential liability for breach of warranty occurred, but that the limitations period did not begin to run until the damage was suffered.” 46 Mich App at 91.
We note, however, that in Parrish, supra, the breach of warranty occurred in Michigan, whereas in the present case, the breach occurred in Indiana which has no statute similar to MCLA 600.5833, supra.
Thus we are presented with the narrow issue of whether a Michigan court, when applying another state’s law under the doctrine of lex loci delicti, can nevertheless apply the tolling provisions of MCLA 600.5833, supra, to delay the running of the statute of limitations.
A similar issue was presented in DeVito v Blenc, 47 Mich App 524; 209 NW2d 728 (1973). There, the plaintiff was injured in an automobile accident which occurred in Ontario. Ontario’s 1-year statute of limitations, if directly applied, would have barred plaintiffs suit. However, at the time of the accident, plaintiff was a minor and therefore under a disability to sue in Michigan. The Court relied upon the tolling provisions of MCLA 600.5851; MSA 27A.5851, which prevented the period of limitations from running against someone under disability until that disability was removed. Thus, the shorter Ontario period did not commence to run until plaintiff reached her majority, and since she commenced her action in Michigan within 1 year of attaining her majority, she was not barred. The Court refused to apply Ontario law, which made no such dispensation for a minor, relying on the fact that Michigan courts historically have favored the protection of minors.
This issue could also have arisen in Hill v Clark Equipment Co, 42 Mich App 405; 202 NW2d 530 (1972). However, since insanity — a disability under the same Michigan statute relied on in DeVito— also tolled the statute of limitations during plaintiffs period of insanity under Alabama law, this issue was not fully discussed.
Relying on these decisions, we hold that, although the claim in the instant case arose at the time of the delivery, the statute of limitations was tolled until the date of the accident by MCLA 600.5833, supra, and that, as a result, plaintiffs suit was timely commenced. We do so by reason of Michigan’s strong public policy, as expressed in Parrish, supra, of protecting the rights of injured persons under the provisions of this tolling statute.
We also reach the same result in this case under the Uniform Statute of Limitations on Foreign Claims Act. We interpret § 2 of that act to mean that the courts should first apply the applicable foreign statute of limitations, including its tolling provisions, and then apply the applicable forum statute of limitations, including its tolling provisions. After these determinations are made, if either bars the claim, then that statute of limitations is applied and the case is dismissed; if neither bars the claim, then the action is maintainable. This interpretation follows from the fact that the "borrowing” statute provides that the applicable period of limitations is the one which bars the claim, and not necessarily the one with the shorter time period. Furthermore, it provides that the periods of limitations to be considered are those prescribed by the law of each state. The law of a state prescribing a period of limitations necessarily incorporates the applicable tolling provisions present under that state’s law. As a result, the tolling provisions of each state must be considered in determining whether that state’s period of limitations would bar the claim and thereby cause a dismissal of the action under the provisions of the "borrowing” statute.
Thus, under the facts of the instant case, applying the 3-year Michigan statute of limitations with its tolling provisions, the suit was timely commenced, as it was brought within 3 years of the accident. Likewise, applying the Indiana 4-year statute of limitations to these facts, the suit was also maintainable as it was brought within 4 years of the delivery date.
This decision, however, does not affect our previous decision that the Indiana 2-year statute of limitations barred plaintiffs’ count alleging negligence. We rely on our reasoning in that previous decision. Furthermore, we do not now decide whether Indiana requires privity of contract between the parties in a breach of warranty action under its vérsion of the Uniform Commercial Code. See e.g., Hart v Goodyear Tire & Rubber Co, 214 F Supp 817 (ND Ind, 1963), Withers v Sterling Drug, Inc, 319 F Supp 878 (SD Ind, 1970). All we hold is that, in this case, the plaintiffs’ alleged causes of action for breach of warranty are not barred by either the Michigan or Indiana statutes of limitations.
Reversed and remanded.
Waldron v Armstrong Rubber Co, 54 Mich App 154; 220 NW2d 738 (1974). Relevant facts of this case are contained therein.
MCLA 600.5861; MSA 27A.5861.
393 Mich 760; 223 NW2d 295 (1974).
IC 1971, 26-1-2-725; Ind Ann Stat 26-1-2-725.
IC 1971, 34-1-2-2; Ind Ann Stat 34-1-2-2.
It should now be noted that the Gardiner case cited by the Indiana Court of Appeals was also cited by our Supreme Court in remanding this case to the Court of Appeals.
We are assuming, of course, that under the facts of this case, the Indiana courts would apply the UCC’s accrual provisions. We do so for the reason that we again could discover no Indiana statute or precedent which would direct us to reach a contrary result under these facts. Further, we could discover no Indiana precedent which would direct us to construe the present case as one arising under the "explicitly extends to future performance” provision of UCC 2-725. Although the Helvey court assumed that the action accrued at the time of the injury, we do not believe that the facts of that case allow us to divert from the statutory language of the UCC in the present case. In Helvey, it can be strongly argued that the delivery of the electricity and the injury occurred at the same time and that, as a result, this issue would not be presented. Nor do we believe that precode decisions in Indiana furnish sufficient precedent in light of the Indiana court’s desire to promote the purposes of uniformity underlying the code.
Popularly known as the “borrowing” statute. See footnote 2.
MCLA 600.5805(7); MSA 27A.5805(7).
We are aware that the Sixth Circuit Court of Appeals has reached the opposite conclusion. See Reid v Volkswagon of America, Inc, 512 F2d 1294 (CA 6, 1975). However, we believe that Michigan case law to date is more supportive of the position we have taken. Additionally, by opting for the 3-year statute of limitations, we avoid the necessity of another remand for consideration of the issues subsequently presented, should our Supreme Court ultimately decide to follow our reasoning.
We also note that, if this suit had been commenced in an Indiana court, that court would apply the 4-year statute of limitations prescribed by Indiana law, regardless of where the claim accrued. See Horvath v Davidson, 264 NE2d 328 (Ind, 1970). | [
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N. J. Kaufman, J.
On October 17, 1974, after a bench trial in Kent County Circuit Court, defendant was found guilty of carrying a concealed weapon in a motor vehicle, MCLA 750.227; MSA 28.424. He was subsequently sentenced to a term of from 3 to 5 years and now appeals of right.
The sole issue to be decided on appeal is whether the trial court committed error by denying defense motions to suppress the gun which the police took from defendant and which served as the basis for his conviction. The gun was discovered when police frisked defendant after they had stopped the car in which he was riding. Defendant contends that the evidence should have been suppressed because the police had insufficient cause to stop the car and to frisk defendant. Evidence at a pre-trial suppression hearing and at trial, prior to defendant’s motion at the close of testimony, indicated that the Grand Rapids police, in stopping the car, were acting on a belief that an escaped prisoner was in the car.
The events precipitating defendant’s arrest began when the Bay County Sheriffs office informed the Kent County Sheriffs office that an individual named Freddie Tompkins had escaped from Jackson Prison and might be in Grand Rapids where he was the leader of a motorcycle club, the Outlaws. The Bay County officials had received this information from an unnamed "reliable informant”. A picture, physical description and rap sheet of Tompkins was sent to the Kent County Sheriffs office which, in turn, forwarded the information to the Grand Rapids police.
According to the information supplied to the Grand Rapids police, Tompkins was described as being 5 feet 7 inches, weighing 150 pounds and as having a small build, fair complexion, brown hair, blue eyes and tatoos on both arms. The Bay County officials indicated that Tompkins might have a beard or moustache.
This description was distributed to Grand Rapids police officers on July 15, 1974. At this time, the Grand Rapids police verified the fact that Tompkins hád, in fact, escaped from Jackson. Two days later, Officer Kropewnicki, while on patrol, spotted a man whom he thought was Tompkins. The suspect was riding in the back seat of a car for which Officer Kropewnicki had been looking. The officer testified that he was looking for this car because, a month earlier, it had been used by the Outlaw Motorcycle Club in a matter which he had investigated. Officer Kropewnicki based his suspicion that the rear-seat passenger was Tompkins on the prior use of the car by the Outlaws and on the fact that the suspect had "medium length brownish hair”, a moustache, and a thin build. The officer had seen a picture of the escapee two days earlier.
Officer Kropewnicki, however, felt that his view of the man in the rear seat was not good enough to justify his stopping the car and arresting the suspect. Because of this, he requested help from Officers Price and Crace who had also seen Tompkins’ picture and might verify his suspicion. Price and Crace, who were on plain-clothes duty, followed the suspect car to a party store and watched its three occupants enter and leave the store. They were some 150 yards away at this point. Officer Price testified that he could not make a determination from that distance and that he relied on Officer Crace, who was looking at the three men through binoculars. Officer Crace denied that he was using binoculars and testified that he could not distinctly make out any facial features, height, weight, or age. Crace, in determining that the suspect might be Tompkins, relied on the suspect’s hair length and moustache, viewed in light of the connection of the car with the Outlaws and of Officer Kropewnicki’s suspicion.
When the car left the party store, a marked police car joined the others^ and on orders from Kropewnicki pulled it over. Officer Price testified that, at this point, three officers approached the car with drawn guns. Each ordered a different occupant out of the car. Officer Price asked defend ant, the passenger in the front seat, to step out of the car. At this point, Officer Price claimed he saw a bulge in defendant’s waistband and, believing that defendant might have a gun, frisked that part of his body. The officer stated that he carried his gun in the same place when on plain-clothes duty. Upon discovering a gun, Price conducted a full pat down of defendant, then placed him under arrest. The other officers had discovered that the suspect in the rear seat was not Tompkins and released him and the driver.
Our initial determination is whether the police had sufficient cause to stop the car in which defendant was a passenger. In People v Whalen, 390 Mich 672, 682; 213 NW2d 116 (1973), the Supreme Court established rules "with respect to the stopping, searching and seizing of motor vehicles and their contents:
"1. Reasonableness is the test that is to be applied for both the stop of, and the search of moving motor vehicles.
"2. Said reasonableness will be determined from the facts and circumstances of each case.
"3. Fewer foundation facts are necessary to support a finding of reasonableness when moving vehicles are involved, than if a house or a home were involved.
"4. A stop of a motor vehicle for investigatory purposes may be based upon fewer facts than those necessary to support a ñnding of reasonableness where both a stop and a search is conducted by the police. ” (Emphasis supplied.)
The Supreme Court did not detail the parameters of "reasonableness” of investigatory stops. By the very nature of the rules, they must be interpreted on a case-by-case basis. In People v Whalen, supra, the Court found reasonable a stop made pursuant to a tip from an eyewitness to a robbery which had occurred shortly before the stop. The witness gave police a description of the robbers and of their car. The police stopped the car in which defendant was riding when it and its passengers fit the description.
In People v Parisi, 393 Mich 31; 222 NW2d 757 (1974), the Court found the stop to have been unreasonable. There, a policeman stopped defendant’s car because it was going 25 mph in a 45 mph zone, because he felt the occupants were violating a local curfew, and because of a concern that the occupants were "sleeping or ill”. Id. at 35. The Court noted that no minimum speed laws had been broken and that the curfew did not apply to occupants of autos. As such, there was not "suspicious activity” enough to justify the stop. Id. at 37. Further:
"The factual foundations for the decisions in Terry v Ohio, 392 US 1; 88 S Ct 1868; 20 L Ed 2d 889 (1968), and Adams v Williams, 407 US 143; 92 S Ct 1921; 32 L Ed 2d 612 (1972), are not present here.”
Terry v Ohio, 392 US 1; 88 S Ct 1868; 20 L Ed 2d 889 (1968), and Adams v Williams, 407 US 143; 92 S Ct 1921; 32 L Ed 2d 612 (1972), which applied the Terry standards to determining the validity of a stop as well as of a frisk, provide some guidance. In Terry, the Court held that the actions of police oificers would be measured by an "objective standard”:
"would the facts available to the officer at the moment of the seizure or the search 'warrant a man of reasonable caution in the belief that the action taken was appropriate?” (Citations omitted.) 392 US 1 at 21-22.
See also Adams v Williams, supra at 145-146. In justifying a stop, the police must "be able to point to specific and articulable facts which, taken together with rational inferences from those facts, reasonably warrant” the stop. Terry, supra at 21.
Probable cause to arrest is not necessary for an investigatory stop. What is necessary is a reasonable belief "that criminal activity may be afoot”. Id. at 30. (Emphasis supplied.) As one commentator notes, in relation to statutes which authorize investigatory stops:
"Probable cause is the officer’s reasonable belief — the probability under the circumstances. The basis for detention under the stop and frisk statute is reasonable suspicion — the possibility under the circumstances.” (Emphasis in original.) Stern, Stop and Frisk: An Historical Answer to a Modern Problem, 58 J Crim L C P S 532, 536 (1967).
See also LeFave, "Street Encounters” and the Constitution: Terry, Sibron, Peters & Beyond, 67 Mich L Rev 39, 62-84 (1968).
Courts generally view the investigatory stop as a device necessary to the detection of crime, both committed and planned. See Tiffany, McIntyre and Rotenburg: Detection of Crime: Stopping & Questioning, Search & Seizure, Encouragement & Entrapment (Little Brown & Co, 1967), pp 9-10. Considerable discretion has been given in the investiga.tory aspect of police work. The Michigan Supreme Court in People v Whalen, 390 Mich 672, 680; 213 NW2d 116 (1973), quoted the oft-cited language of Justice Rehnquist in Adams v Williams (at 145):
"The Fourth Amendment does not require a policeman who lacks the precise level of information neces sary for probable cause to arrest to simply shrug his shoulders and allow a crime to occur or a criminal to escape. On the contrary, Terry recognizes that it may be the essence of good police work to adopt an intermediate response.”
Although the majority in Adams did not expressly acknowledge it, Terry also recognizes thát "good police work” is also characterized by the avoidance of intrusions upon personal privacy in violation of the Fourth Amendment.
Thus, in adjudging police behavior, a court must examine three important factors: (1) nature and source of the information on which the stop is based, (2) the experience of the police officers involved, and (3) the degree of intrusion involved in the stop. Reasonableness may be determined by weighing the experience and information against the degree of intrusion.
We find that the investigatory stop of the car in which defendant was riding was reasonable. We find that the reasonableness of this stop stems from the fact that an individual who might fit the escapee’s description was riding in a car known to be used by a gang which he led and whose aid he might seek. The fact that Tompkins had escaped was verified by the police. The officers knew from information provided by a reliable source that Tompkins was a leader of a Grand Rapids motorcycle gang. It would seem reasonable to conclude that an escaped prisoner would seek the safety of an area well known to him and of friends who might conceal him. Officer Kropewnicki had personal knowledge that the car in question had recently been used by Tompkins’ motorcycle gang. All three of the investigating officers had seen Tompkins’ picture and physical identification within two days of the stop, and all were experi enced in police work. Their inability to obtain a precise view of the suspect is attributable to their fear of approaching close enough to alarm the suspect and to cause the occupants of the car to flee. The temporary stop of this vehicle did not amount to a degree of intrusion great enough to contravene prudent police activity based on a reasonable belief that criminal activity might be occurring.
Having found the investigatory stop to have been reasonable, we must determine whether the subsequent frisk of defendant was also reasonable. We find that it was. The Supreme Court in Adams v Williams, supra, at 146, summarized the Terry standards for a protective frisk after a reasonable stop:
"The Court recognized in Terry that the policeman making a reasonable investigatory stop should not be denied the opportunity to protect himself from attack by a hostile suspect. 'When an officer is justified in believing that the individual whose suspicious behavior he is investigating at close range is armed and presently dangerous to the officer or to others,’ he may conduct a limited protective search for concealed weapons. 392 U.S., at 24. The purpose of this limited search is not to discover evidence of crime, but to allow the officer to pursue his investigation without fear of violence * * * . So long as the officer is entitled to make a forcible stop, and has reason to believe that the suspect is armed and dangerous, he may conduct a weapons search limited in scope to this protective purpose. Id., at 30.” (Footnote omitted.)
At the time defendant was ordered out of the car, the arresting officer did not yet know that the suspect was not Tompkins. It was appropriate for the police to get all of the occupants out of the car so that none might help the escapee or, on the other hand, be accidentally injured when the police attempted to subdue him. The arresting officer stated that, when in plain clothes, he carried his service revolver in his waistband. He, therefore, immediately viewed the bulge in defendant’s waistband as a threat. From these facts we find this view and the resultant frisk to have been reasonable. As such, the gun was legally seized, and the court’s refusal to suppress it was correct.
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V. J. Brennan, J.
The plaintiffs, Flora and Samuel Motley, appeal from a judgment of no cause of action entered upon a jury verdict on March 27, 1974, in Oakland County Circuit Court. We reverse.
On January 18, 1970, between 2:30 a.m. and 3 a.m., plaintiff Flora Motley, while proceeding west on M-59 in Oakland County, collided with an automobile driven by one Turpin. Plaintiff testified that she had consumed four alcoholic drinks during the preceding four hours. The plaintiff’s auto and the Turpin auto were immobilized by the collision and blocked the east-bound lane on the two-lane highway.
Shortly after the collision, a Mr. Mitchell came upon the scene and stopped to render assistance. Mitchell parked on the north side of the highway just west of the disabled vehicles, turned on his four-way flashers, and approached plaintiff’s vehicle. Finding plaintiff shaken, but not visibly injured, Mitchell advised her to remain in the car, and he proceeded to direct traffic with his flashlight. The night was cold and there was blowing snow. Other drivers stopped to render assistance. One man stationed himself on the south side of the highway with Mr. Mitchell and another stationed himself on the north side of the highway to assist in directing traffic with flashlights. A pickup truck stopped, and Turpin took refuge therein. The truck’s cab lights were illuminated.
A period of from 5 to 20 minutes elapsed, during which an undetermined number of vehicles passed the scene without incident. Defendant Robinette then came upon the scene proceeding east, travelling at an estimated 45-50 miles per hour and struck plaintiffs car, injuring plaintiff and causing further damage to her vehicle.
In a prior action, plaintiff was held to be liable to Turpin for damages caused by the first collision. Plaintiffs insurer settled defendant’s claim against plaintiff. The instant case is plaintiffs countersuit against defendant.
At the close of plaintiffs proofs, defendant moved for directed verdict on the grounds that subsequent negligence was not properly before the court because it did not appear in the pleadings and because there were insufficient proofs on the elements of subsequent negligence. The trial court agreed with defendant’s contention and defendant thereupon rested without offering any proofs. The plaintiff requested that should the court instruct the jury on contributory negligence, they also be read Standard Jury Instruction 14.01 dealing with subsequent negligence. The court refused and plaintiff objected. The court also read Standard Jury Instruction 13.02 which instructs on the standard of care to be exercised by one whose abilities are impaired by voluntary intoxication. The plaintiff objected to this instruction as well. The jury returned a verdict of no cause of action.
The plaintiff brings two allegations of error on appeal: 1) that it was error for the trial judge to refuse to give instructions on the issue of subsequent negligence, and 2) that it was error for the judge to read Standard Jury Instruction 13.02 relative to one who "voluntarily impairs her driving”.
The plaintiff requested Standard Jury Instruction 14.01 be given, which reads as follows:
"Even though you find plaintiff by her own negligence placed herself in a position of danger, that will not defeat plaintiff’s claim for damages if defendant failed to use ordinary care with the means at hand after defendant knew or should have known of plaintiffs danger.”
The Note On Use accompanying Standard Jury Instruction 14.01 states:
"This instruction should be used only where there is evidence of plaintiffs precedent negligence, placing him in a position of danger. If the negligence of a plaintiff is concurrent with the negligence of a defendant, the instruction is not applicable.”
The trial judge apparently ruled that the negligence of the plaintiff was concurrent as a matter of law. He stated:
"The Court finds that the plaintiff was able to remove herself from the peril and did not do so. There is no testimony why she did not, there was some testimony that the driver’s door was jammed or stuck or couldn’t get it open, but there was no indication of injury, no indication that she couldn’t go out go out (sic) the passenger’s side of the car. The plaintiff was well aware of M-59, well aware that was a main thoroughfare and should have removed herself from the car after the accident, and that is one of the prerequisites for subsequent negligence.”
We find that a brief review of the doctrine of subsequent negligence, or "last clear chance” as it is called in many jurisdictions, is here required.
While contributory negligence and subsequent negligence are often closely related in the facts of a particular case, they proceed on entirely different rationales and serve distinctly different policies. Contributory negligence bars a plaintiff’s recovery on the theory that a plaintiff should not be allowed to recover for an injury of which he is partly the cause. Klein v Detroit Metallic Casket Co, 336 Mich 157; 57 NW2d 477 (1953). Contributory negligence can be quite harsh if the negligence of the defendant is relatively great compared with the negligence of the plaintiff. Black v Bennett, 335 Mich 197; 55 NW2d 795 (1952), Wieczorek v Merskin, 308 Mich 145; 13 NW2d 239 (1944), Mogill v Resnick, 263 Mich 103; 248 NW 562 (1933), Grabowski v Seyler, 261 Mich 473; 246 NW 189 (1933).
Subsequent negligence, on the other hand, provides that where two parties are negligent, and the risk of injury is imminent, and one party is in a position to avoid the injury while the other is not, the party who has the "last clear chance” to avoid the injury has a duty to do so, the breach of which will give rise to his liability in negligence. Krouse v Southern Michigan R Co, 215 Mich 139; 183 NW 768 (1921), see James, Last Clear Chance: A Transitional Doctrine, 47 Yale L J 704 (1938), and MacIntyre, The Rationale of Last Clear Chance, 53 Harv L Rev 1225 (1940). The doctrine is inapplicable where each party had an equal opportunity to avoid the injury up to the instant preceding the injury, because then it cannot be said that either party had the "last clear chance” to avoid the injury. Thus, it is said, subsequent negligence does not apply where the negligence of the parties is concurrent, because the plaintiffs concurrent negligence will constitute contributory negligence and thus bar his recovery. Schmid v Morehead, 333 Mich 611; 53 NW2d 570 (1952), Davidson v Detroit, 307 Mich 420; 12 NW2d 413 (1943), Routt v Berridge, 294 Mich 666; 293 NW 900 (1940).
Much of the controversy in the cases turns on the question of what kinds of negligence should be said to continue, and when it can be said to cease to operate as the proximate cause of the injury. If the court finds the negligence to continue to operate, this will amount to a finding of concurrent negligence. If, on the other hand, the court finds the negligence of the plaintiff had ceased to operate as a proximate cause, the subsequent negligence of defendant becomes an issue. Conant v Bosworth, 332 Mich 51; 50 NW2d 842 (1952), Gallagher v Walter, 299 Mich 69; 299 NW 811 (1941), Howell v Hakes, 251 Mich 372; 232 NW 216 (1930).
The Michigan Supreme Court has laid down the elements of subsequent negligence. The elements are as follows:
1. Plaintiff’s negligence has put him in a position of danger.
2. Plaintiff’s negligence has ceased to operate as the proximate cause of the accident.
3. Defendant discovered plaintiffs peril or should by the exercise of ordinary care have discovered plaintiffs peril.
4. Defendant by use of the means at hand had time to avert the threatened injury. Davidson v Detroit, 307 Mich 420, 430; 12 NW2d 413, 416-417 (1943).
In the instant case no one disputes that the negligence of plaintiff pursuant to the collision with Turpin had ceased to operate when her vehi cle came to rest on M-59. The trial court, however, found the plaintiffs act of remaining in the vehicle, rather than removing herself from the zone of danger, constituted negligence which continued to operate up to the moment of impact and therefore found subsequent negligence not to be an issue in the case; hence, his refusal to charge the jury thereon. We respectfully disagree with the trial judge.
The record contains evidence that the plaintiffs door was jammed, that she attempted to get it open, and asked for help in so doing. A question of fact is presented, therefore, as to whether plaintiff was, in truth, unable to extricate herself from her predicament. If the trier of fact answers this question in the negative, there can be no concurrent negligence and the jury should be charged on subsequent negligence. The issue should have been submitted to the jury.
Further, if the trier of fact determines that the plaintiff could have exited from her vehicle, the next question is whether a failure to do so constitutes negligence. Plaintiff was shaken; passersby were directing traffic with flashlights; she was advised by one who had taken charge of the situation to stay in the car. Whether a reasonably prudent person under the same or similar circumstances would have chosen to remain in the car or exited to seek shelter in a nearby vehicle is' a question of fact for the jury. We cannot say, as a matter of law, that the record is insufficient to support a finding that plaintiff acted reasonably in remaining in her vehicle. If the jury determines that the plaintiff was not negligent in remaining in her vehicle, the issue of subsequent negligence must be considered and the jury should be so charged.
If the trier of fact determines that plaintiff was able to exit from her vehicle, and was negligent for failure to do so, subsequent negligence remains an issue because we are still left with the classic "last clear chance” situation. The question then becomes, as between plaintiff and defendant, was one in a position to avoid the injury when the parties discovered, or should have discovered, the immediate peril of the situation. There is no dispute as to whether plaintiff could have avoided the property damage caused by defendant, because plaintiff’s car was disabled. But, could she have avoided her personal injuries? After discovering, or after she should have discovered, that defendant was "helpless” by being unable to stop, if plaintiff could have avoided injury by leaping from the car prior to impact, in the exercise of ordinary care, her failure to do so would be concurrent negligence. The test of concurrent negligence is not whether plaintiff could have avoided being in a dangerous situation. If this were the case, arguably all contributory negligence would be concurrent. The test is whether, up to the moment of injury, plaintiff had as much opportunity as did defendant to avoid the accident. If so, the negligence is concurrent, and plaintiff cannot recover. If, on the other hand, defendant discovered or should have discovered plaintiff’s peril, and if he, in the exercise of ordinary care, could have avoided the injury, he will be liable (his liability being in simple negligence if plaintiff was not negligent, and his liability being for subsequent negligence if plaintiff was negligent) unless of course it is found that up to the moment of injury plaintiff had an equal opportunity to avoid the injury. Thus, the point at which the question of subsequent negligence becomes material is that point when the parties discovered or should have discovered each other’s predicament, and not some anterior point in time.
Cases dealing specifically with collisions between moving vehicles and disabled vehicles are relatively few. See Annotation, Applicability of Last Clear Chance Doctrine To Collision Between Moving and Stalled, Parked, or Standing Motor Vehicle, 34 ALR3d 570. In a minority of such cases, the occupant of the stalled vehicle was held to have the last clear chance to avoid the injury. Robards v American Automobile Ins Co, 128 So 2d 44 (LA App 1961), Guillotte v Firemen’s Ins Co of Newark, NJ, 207 So 2d 783 (LA App 1967), see Gibbs v Mikesell, 183 Kan 123; 325 P2d 359 (1958). In the majority of such cases, however, the issue was whether the driver of the moving vehicle had the last clear chance of avoiding the injury.
In Summers v Randall, 123 Cal App 2d 113; 266 P2d 217 (1954), the plaintiff exited from a disabled vehicle and was killed by defendant’s truck. The California Court of Appeals held that a jury could have found that plaintiff was negligent in getting out of the car and having gotten on the highway, thereby putting herself into a position from which she could not have escaped by the exercise of ordinary care.
"As it turned out, she would have been safer if she had remained in the car, which was a circumstance for a jury to consider in deciding whether she was negligent in alighting onto the middle lane of traffic.” Summers, supra, at 117; 266 P2d at 219.
In West v Jack Cooper Transport Co, 381 SW2d 872 (Mo 1964) (applying Kansas law), plaintiff was held not to have a duty as a matter of law of getting out of his stalled vehicle during the 20 or 30 seconds that elapsed prior to the actual colli sion or during the 5 seconds that defendant’s truck was skidding down the hill toward him, since plaintiff’s reactions could not have been considered entirely normal after his experience of spinning and sliding down the hill.
This Court held in Fessenden v Roadway Express, 46 Mich App 276; 208 NW2d 78 (1973), that where weather was damp and foggy and defendant was unable to see more than one car length in front of him, and defendant was proceeding at a speed of 40 to 50 miles per hour, and defendant was suddenly confronted with plaintiff’s automobile sitting crossways in his lane with no lights on, the trial judge erred when he found that there was not sufficient evidence to establish that plaintiff’s negligence had come to rest and removed from the jury the question of subsequent negligence.
The Michigan Supreme Court in Krouse v Southern Michigan R Co, 215 Mich 139; 183 NW 768 (1921), upheld the trial court in its finding that plaintiff’s negligence was concurrent when plaintiff remained in a stalled automobile on a railroad track after seeing an approaching train some 800 feet away. The Court stated that plaintiff "introduced through her own inaction the negligent act of remaining in a place of danger when she could have just as well have stepped to a place of safety”. Krouse, supra, at 145; 183 NW at 770. The Court stated that the rule of subsequent negligence applies where "the plaintiff cannot, and the defendant can, prevent the injury”. Krouse, supra, at 147; 183 NW at 771.
The case of Shafkind v Kroll, 367 Mich 42; 116 NW2d 58 (1962), concerned a collision between a motorist and a bicyclist where the evidence showed that neither had seen the other prior to the moment of impact. There the Court upheld the trial court in its refusal to charge the jury on the issue of subsequent negligence.
In the case at bar a difficult fact question is presented. In the few seconds remaining after the plaintiff and defendant discovered or should have discovered the imminence of a collision, did either have an opportunity to avoid the injury? If plaintiff did, she cannot recover, because her failure to avoid the injury would constitute concurrent and contributory negligence. If plaintiff did not, but defendant did, have such an opportunity, plaintiff can recover. Such a difficult question of fact should be resolved by the jury. We think that the evidence in the record, if believed by the trier of fact, could reasonably support a finding of defendant’s liability based on subsequent negligence, and that it was therefore reversible error for the trial judge to refuse to charge the jury on subsequent negligence.
Where, as in the instant case, the concurrent negligence of the plaintiff is a question of fact, reliance by a trial judge on Standard Jury Instruction 14.01 without more will mislead the jury, because it would seem to authorize recovery by the plaintiff whether or not plaintiff is concurrently negligent. On the other hand, if a trial judge refuses to read Standard Jury Instruction' 14.01 or otherwise charge on subsequent negligence, the question of concurrent negligence is taken out of the hands of the jury, and the jury is directed, in effect, not to consider a theory of recovery based on subsequent negligence. Whether plaintiff’s action or inaction was negligent, and if so, whether it continued up to the moment of impact, are crucial questions of fact which should be left to the jury.
An example of a suitable instruction in a sitúa tion where concurrent negligence of the plaintiff is a question for the jury is to be found in LaCroix v Grand Trunk Western R Co, 379 Mich 417, 437; 152 NW2d 656, 665 (1967):
" 'Whether Mr. LaCroix’s injuries were due solely to the negligence of defendant’s engine crew without contributory negligence on his part, or, on the other hand, were due to the subsequent negligence of the engine crew after Mr. LaCroix’s negligence had placed him in a position of peril and then ceased to operate as a proximate cause of the ensuing injuries, in either event Mr. LaCroix would be entitled to recovery. If defendant’s engine crew discovered, or in the exercise of due care should have discovered, Mr. LaCroix in a position of peril in sufficient time to be able by the exercise of due care and diligence in the use of the means at hand to avoid injury to him but failed to exercise such care and use such means with the result that he was injured by reason of such neglect of the engine crew, then the railroad is liable to him for damages regardless of whether he came into such position of peril without fault or negligence on his part or through his own negligence [in violating a statute or otherwise] which had ceased to operate as a proximate cause of the ensuing injury.’
Plaintiffs second allegation of error is that the judge erred in giving Standard Jury Instruction 13.02. We disagree. Plaintiff testified that she had consumed four drinks. The jury was not compelled to believe her, even if such testimony was uncontroverted, since she was an interested party. Barr v Guelph Patent Cask Co, 129 Mich 278; 88 NW 640 (1902). The jury could well have inferred that plaintiff’s estimate of her libation was low, and that she was more intoxicated than she claimed. The trier of fact could reasonably conclude that plaintiffs decision to remain in the car after the first collision, if negligent, was influenced by her inebriation, and likewise, that her inability to leap from the car as defendant approached was due, in part at least, to her state of intoxication. Since these questions bear on the issue of plaintiff’s possible concurrent negligence, we think the trial judge was correct in reading Standard Jury Instruction 13.02.
Reversed and remanded.
D. E. Holbrook, Jr., J., concurs in the result only.
This is the same suggestion we made in Zeni v Anderson, 56 Mich App 283, 302; 224 NW2d 310, 320-321 (1974), lv granted, 393 Mich 804 (1974), where the issue of the concurrent negligence of the plaintiff was held to be a question of fact for the trier of fact. | [
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V. J. Brennan, J.
Judgment was entered on October 12, 1974 in Macomb County Circuit Court declaring Ordinance No. 57 of defendant township to be an invalid exercise of police power. Defendant appeals.
Plaintiffs are residents of the Township of Shelby and owners of certain residential real property therein. Defendant is a municipal corporation organized under the laws of the State of Michigan and situated in Macomb County.
On December 4, 1973, defendant adopted Ordinance No. 57, effective January 11, 1974, providing that concrete sidewalks may be required whenever a building permit is issued for a principal structure to be constructed. No public hearings were held as prescribed by MCLA 41.932; MSA 9.587(2), prior to the adoption of the ordinance. Plaintiffs brought suit contending that such noncompliance with MCLA 41.932; MSA 9.587(2), rendered the ordinance invalid. The trial court agreed, and entered judgment accordingly.
The defendant appeals, contending that the ordinance is a valid exercise of police power by a township, citing a number of statutes which, it is contended, grant the requisite authority. Further, defendant argues, a liberal construction of cited statutes is mandated by the Michigan Constitution. Const 1963, art 7, § 34. Plaintiffs contend that the only applicable statute is MCLA 41.931 et seq.; MSA 9.587(1) et seq., which requires notice and a public meeting.
The question, therefore, is whether there is enabling authority for the adoption of an ordinance by a township requiring construction of sidewalks on residential streets in a statute which does not require notice and a public meeting.
Defendant first contends that such authority is found in MCLA 41.411 et seq.; MSA 5.2411 et seq. This statute, known as the township and village public improvement act, was first enacted in 1923, and authorized townships to make various improvements, including sidewalks, upon the filing of petitions signed by record owners of not less than 65 percent of the land affected. The Michigan Supreme Court in Macomb Building Co v Clinton Twp, 309 Mich 236, 239; 15 NW2d 141, 142 (1944), held that the "signature of the owners of 65 percent of the property is jurisdictional”. The plain meaning of the statute is that it authorizes townships to provide various public improvements when the required number of landowners initiate proceedings by petition. The statute cannot be read as authorizing a township to proceed sua sponte to make public improvements. This statute, therefore, is inapplicable to the case at bar.
Defendant next contends that authority for adoption of Ordinance No. 57 can be found in MCLA 41.401 et seq.; MSA 9.570(1) et seq. This statute provides for the installation by townships of sidewalks along the sides of highways and elevated structures for foot travel over highways and authorizes payment therefor out of the contingent fund or general fund of the townships. There is no provision for public hearings and no requirement of initiatory petitions by any owners of affected land. Defendant would have us read this statute as providing the requisite enabling authority for townships of this state to require sidewalks to be built on residential streets and to assess the owners of affected land for the cost thereof, without the necessity of any public notice or hearings. This would require that we read "highways” as a generic term including residential streets, and the language authorizing payment out of general funds as suggesting only one alternative for financing, leaving as a possibility assessments against landowners. It is true, as defendant contends, that the term "highways” was used to refer to all ways open to public travel in Detroit International Bridge Co v American Seed Co, 249 Mich 289, 295; 228 NW 791 (1930). In that case, a landowner appealed from an order of condemnation asserting that the proposed highway bridge would not be used solely for public purposes. To this contention the Michigan Supreme Court replied that a toll road or bridge is a highway, and land may be taken for it under the power of eminent domain. Thus, in contradistinction to private ways, all public ways are highways "without distinction”. Such language can hardly be said to warrant an inference that the Legislature does not intend to make distinctions between bridges, highways, county roads, and residential streets. We do not think the Legislature intended MCLA 41.401 et seq.; MSA 9.570(1) et seq., to refer to all public ways without distinction.
Defendant contends that the word "may” is permissive in contradistinction to mandatory. We think that the word "may” in MCLA 41.402; MSA 9.570(2) operates simply to grant authority to the township. We hold, therefore, that the phrase "may provide that the cost of improvement shall be paid * * * ” must be construed as saying, "is hereby authorized to provide that the cost of the improvement shall be paid * * * ”. The statute should not be understood as saying that townships are authorized to provide that improvements be paid for in any manner they may choose. The Michigan Supreme Court was faced with this issue in Sebewaing Industries, Inc, v Village of Sebewaing, 337 Mich 530; 60 NW2d 444 (1953). There the Village of Sebewaing sought to purchase equipment for an electric plant without following either of two methods prescribed by statute, arguing that they could, in their exercise of discretion, use other acceptable alternatives. The Court rejected this reasoning, citing the maxim expressio unius est exclusio alterius, the expression of one thing implies the exclusion of other similar things. "When a statute creates an entity, grants it powers and prescribes the mode of their exercise, that mode must be followed and none other.” Sebewaing, supra, at 545; 60 NW2d at 447.
The trial judge in the instant case held that MCLA 41.401 et seq.; MSA 9.570(1) et seq., applies to main or arterial roads. We agree. The Legislature apparently desired to enable townships to construct sidewalks and overpasses for pedestrians where large highways had been constructed and had tended to divide hitherto social and economic units in the townships. School children, for example, might find it necessary to cross such a new highway to get to school. Sidewalks and pedestrian overpasses were needed. Further, since no definable property could be said to benefit more than others, the Legislature provided for payment out of general funds rather than from assessments against particular properties. Thus, there was no provision made in the statute for public hearings or petitions by owners of affected property. We hold, therefore, that MCLA 41.401 et seq.; MSA 9.570(1) et seq., applies to main or arterial roads where sidewalks and pedestrian overpasses serve the needs of citizens beyond the contiguous properties involved, and where no fair assessment of benefited properties can be made. Defendants cannot, therefore, rely on this statute as granting enabling authority to townships for requiring the construction of sidewalks on residential streets and for assessing affected properties therefor.
Since the Legislature apparently did not regard MCLA 41.401 et seq.; MSA 9.570(1) et seq., enacted in 1957, as providing enabling authority for townships to require sidewalks on residential streets sua sponte, MCLA 41.931 et seq.; MSA 9.587(1) et seq., was enacted in 1966 expressly granting to townships authority to proceed on their own initiative to build sidewalks "in any designated area within the township”. MCLA 41.932; MSA 9.587(2) provides that a public meeting be held after notice to "all property owners involved”. Plaintiffs contend that this is the only applicable statute to the case at bar. We agree. The Legislature did not see fit to require approval of the property owners, choosing instead to leave the final determination to the township board. We think that the Legislature provided for a public meeting, however, not as a mere formality, but as a means of obviating the dangers of secret or ill-advised decisions of the board. This procedure should have been followed in the instant case.
The township officials are not to be faulted for their desire to promote the public safety and welfare of their growing and populous township by requiring sidewalks to be built, but we cannot find any policy reason whatever for holding that it may be done without first holding a public meeting pursuant to MCLA 41.932; MSA 9.587(2).
We find that the other statutes on which defendant relies for enabling authority in this matter are inapplicable and do not merit discussion. We hold that Ordinance No. 57 of the Township of Shelby is an invalid exercise of township police power because of noncompliance with MCLA 41.932; MSA 9.587(2).
Affirmed. | [
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M. J. Kelly, J.
On March 28, 1974, a combination of suspicious circumstances caused William Morgan to purchase a tape-recording device and attach it to the telephone line in his own home so that all incoming and outgoing calls would be recorded. He was interested in his wife’s conversations. Upon listening to the first tape, he discovered that his wife had discussed with her close friend the possibility of having Mr. Morgan murdered. During the course of the conversation, mention was made of a prospective "hit man” from Chicago. Mr. Morgan took this tape to Detective Jack Morton at the Detroit police homicide division.
Detective Morton then approached Mrs. Morgan and suggested that she had been engaged in a criminal conspiracy to commit murder. He offered her immunity from prosecution if she would cooperate in the police attempt to identify the hired gunman. Mrs. Morgan agreed. However, through several weeks, follow-up was unproductive. The supposed conspiracy appeared unsupported in fact and the detective considered the case closed.
Toward the end of April, Mrs. Morgan received phone calls from a person who identified himself as the man from Chicago. The caller sought reimbursement of expenses incurred in . trips to Detroit claiming he had come to Detroit prepared to kill Mr. Morgan but had been unable to contact Mrs. Morgan. At any rate, the caller wanted money, Mrs. Morgan declined, and the caller threatened her. Then the Morgan home was firebombed.
After discussing the matter with her husband, Mrs. Morgan called Detective Morton. He suggested that Mrs. Morgan feign renewed interest in the murder plot so as to identify the hit man who, the officer surmised, was behind the firebombing. Thereafter, Mrs. Morgan made and received a number of phone calls which were recorded by her husband and Detective Morton with her knowledge. The outgrowth is that defendants stand charged with conspiring, MCLA 750.157a(a); MSA 28.354(l)(a), to commit the crime of first-degree murder, MCLA 750.316; MSA 28.548.
Defendants brought a motion to suppress the evidentiary use of the tape recordings. The motion was granted and the people appeal upon leave granted.
Two distinct sets of tapes are involved. There are the pre-firebombing tapes, which were made by Mr. Morgan without the knowledge of his wife or the police. There are also the post-firebombing tapes made with the purported consent of Mrs. Morgan and with the approval of the police. The two sets shall be discussed separately because, in our view, they necessitate different legal analysis. There are three essential theories for suppression by defendants.
They are:
I. That the tapes were obtained in violation of Const 1963, art 1, § 11, in that no search warrant was procured as required by People v Beavers, 393 Mich 554; 227 NW2d 511 (1975).
II. That the tapes were obtained in violation of the Michigan wiretapping act, MCLA 750.539a et seq.; MSA 28.807(1) et seq.
III. That the tapes were obtained in violation of US Const, Am IV and Const 1963, art 1, § 11, in that there was no voluntary consent by Mrs. Morgan to the warrantless search of her telephonic communications.
I
Defendants argue that the people were required to first obtain search warrants before they could lawfully tape conversations between Mrs. Morgan and the alleged co-conspirators. Reliance is placed on People v Beavers, 393 Mich 554; 227 NW2d 511 (1975), where the Supreme Court ruled that participant monitoring requires prior procurement of a search warrant. The Beavers opinion does not squarely control this case, because the Beavers Court specifically distinguished participant monitoring from recording by a participant. The Beavers Court noted:
"Where the phrase 'participant monitoring’ appears, we specifically refer to the use of an electronic device by a participant of a conversation which transmits the exchange to a third party. We do not address those situations which include a participant himself recording the conversation or the use of an electronic device by a third party only to eavesdrop upon a conversation between two parties, one of whom is cooperating with the authorities.” 393 Mich at 562, 563, fn 2. (Emphasis in original.)
This case, unlike Beavers, involves third-party recording and participant recording. As seen above, the Beavers Court did not attempt to pass on the situation in the case at bar. The distinction is fine. We conclude that Beavers’ ratio decidendi is equally applicable to the present fact situation. At present, a search warrant appears required before the conduct here described may be legitimized. The more critical question is whether the Beavers opinion is to be applied where, as here, the police conduct precedes Beavers and the trial follows.
The question arises because of the explicit holding: "The decision today is to be applied prospectively.” 393 Mich at 568. The people’s claim is that Beavers applies only to post-leavers police conduct while defendants claim that the date of trial is dispositive. Three factors have been used to determine when a new rule of constitutional or criminal law is to take effect. The factors are: the purpose of the new rule, the general reliance on the old rule, and the effect on the administration of justice. Linkletter v Walker; 381 US 618; 85 S Ct 1731; 14 L Ed 2d 601 (1965), People v Hampton, 384 Mich 669; 187 NW2d 404 (1971).
Consent searches have traditionally been viewed as exempt from the warrant requirement. Schneckloth v Bustamonte, 412 US 218; 93 S Ct 2041; 36 L Ed 2d 854 (1973), Vale v Louisiana, 399 US 30; 90 S Ct 1969; 26 L Ed 2d 409 (1970), People v Chism, 390 Mich 104; 211 NW2d 193 (1973). Police reliance on pre-Beavers law is reasonable. In fact, at the time of the recordings, this Court had affirmed the conviction of Beavers. We are not prepared to require that lay police not only appreciate the nuances of existing law but also successfully prognosticate change. We hold that the crucial date is that of the police conduct.
In Desist v United States, 394 US 244; 89 S Ct 1030; 22 L Ed 2d 248 (1969), the Court faced the question of how to apply the comparable case of Katz v United States, 389 US 347; 88 S Ct 507; 19 L Ed 2d 576 (1967). The Court noted the nonretroactivity usually accorded search-and-seizure cases (394 US at 250; 89 S Ct at 1034; 22 L Ed 2d at 255) and concluded that Katz was to be applied to cases only where the police conduct occurred after the decisional date of Katz.
The case most favorable to defendant, Johnson v New Jersey, 384 US 719; 86 S Ct 1772; 16 L Ed 2d 882 (1966), applied Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR 3d 974 (1966), to cases awaiting trial as of the decisional date of Miranda. Johnson was severely restricted by Michigan v Tucker, 417 US 433; 94 S Ct 2357; 41 L Ed 2d 182 (1974), where the Court said:
"Just as the law does not require that a defendant receive a perfect trial, only a fair one, it cannot realistically require that policemen investigating serious crimes make no errors whatsoever. The pressures of law enforcement and the vagaries of human nature would make such an expectation unrealistic. Before we penalize police error, therefore, we must consider whether the sanction serves a valid and useful purpose.
"We have recently said, in a search-and-seizure context, that the exclusionary rule’s 'prime purpose is to deter future unlawful police conduct and thereby effectuate the guarantee of the Fourth Amendment against unreasonable searches and seizures.’ United States v Calandra, 414 US 338, 347 [94 S Ct 613; 38 L Ed 2d 561] (1974). We then continued:
"' "The rule is calculated to prevent, not to repair. Its purpose is to deter — to compel respect for the constitutional guaranty in the only effectively available way —by removing the incentive to disregard it.” Elkins v United States, 364 US 206, 217 [80 S Ct 1437; 4 L Ed 2d 1669] (1960).’ Ibid In a proper case this rationale would seem applicable to the Fifth Amendment context as well.
"The deterrent purpose of the exclusionary rule necessarily assumes that the police have engaged in willful, or at the very least, negligent conduct which has deprived the defendant of some right. By refusing to admit evidence gained as a result of such conduct, the courts hope to instill in those particular investigating officers, or in their future counterparts, a greater degree of care towards the right of an accused. Where the official action was pursued in complete good faith, however, the deterrence rationale loses much of its force.” 417 US at 446.
We therefore conclude that People v Beavers, supra, is to be applied to police conduct occurring after its decisional date. In the instant case, the conversations were all recorded prior to Beavers. The introduction of those tapes at the trial of defendants is not proscribed.
II
Defendants also claim that the tapes are inadmissible because they were obtained in violation of the Michigan eavesdropping statute, MCLA 750.539a et seq.; MSA 28.807(1) et seq. The pertinent provisions read:
"Any person * * * who wilfully uses any device to eavesdrop upon the conversation without the consent of all parties thereto, or who knowingly aids, employs or procures another person to do the same in violation of , this section, is guilty of a felony * * * .” MCLA 750.539c; MSA 28.807(3).
"Any person who installs in any private place, without the consent of the person or persons entitled to privacy there, any device for * * * eavesdropping upon the sounds or events in such place, or uses any such unauthorized installation, is guilty of a felony * * * .” MCLA 750.539d; MSA 28.807(4).
"Any person who uses or divulges any information which he knows or reasonably should know was obtained in violation of sections 539b, 539c or 539d is guilty of a felony * * * .” MCLA 750.539e; MSA 28.807(5).
"This act shall not be construed to prohibit: (a) Eavesdropping or surveillance not otherwise prohibited by law by a peace officer or his agent of this state or federal government while in the performance of his duties.” MCLA 750.593g(a); MSA 28.807(7)(a).
Of the initial tape recordings made by Mr. Morgan, two things are clear: neither party to the conversation consented to his intervention and there was absolutely no police involvement. It thus appears that Mr. Morgan’s interception of the first calls was in violation of MCLA 750.539c; MSA 28.807(3). However, statutory violations do not call into play the per se exclusionary rule applicable to constitutionally defective searches and seizures. People v Burdo, 56 Mich App 48; 223 NW2d 358 (1974). The Court in Burdo recognized the issue as one of public policy and concluded that suppression was not necessary to protect the basic rights of the defendant. The Court also noted the potential civil liability for the statutory violation. See also People v Mordell, 55 Mich App 462; 223 NW2d 10 (1974).
The evidence initially gathered by Mr. Morgan in violation of the statute need not be suppressed. The Legislature provided for criminal sanctions against the interceptor and created civil liability for actual and punitive damages. MCLA 750.539h (b) and (c); MSA 28.807(8)(b) and (c). The Legislature did not enact an exclusionary rule. We will not judicially create a remedy that the Legislature chose not to create.
As to those conversations taped after Mr. Morgan went to the police, there is no .statutory violation at all. From April 2, 1974 (the day Detective Morton confronted Mrs. Morgan) on, the tapes were made by the Morgans at the request of the detective. According to the explicit language of MCLA 750.539g (a); MSA 28.807(7)(a), the act does not prohibit the activity here in issue if the surveillance was "not otherwise prohibited by law”, i.e., if the techniques used were not constitutionally offensive. There being no independent statutory grounds for suppression, the admissibility of the tapes must rise or fall on the pre-Beavers constitutionality of the search.
The pre-firebombing tapes by Mr. Morgan were made by him solely in his capacity as a private citizen, and not as an agent for the police. It is well settled that constitutional search and seizure provisions proscribe only governmental actions. Burdeau v McDowell, 256 US 465; 41 S Ct 574; 65 L Ed 1048 (1921). People v Harry James Smith, 31 Mich App 366; 188 NW2d 16 (1971). Neither the state nor Federal constitution requires suppression of the recording of March 28, 1974. By ordering suppression of that tape the trial court was in error.
Ill
This brings us to the heart of the matter. Twenty-seven of the twenty-eight tapes sought to be introduced into evidence by the prosecution were made after the firebombing incident. Since these recordings were made without the benefit of a search warrant, the consent of Mrs. Morgan, as a party to the conversations, was essential.
Mrs. Morgan testified at the suppression hearing that Detective Morton had asked her to pursue the murder plot and indicated that she would not be charged with a crime. She said she was never worried about being charged with a crime because she felt that no crime had been committed.
Mrs. Morgan also testified that two days before the firebombing, she received a telephone call from a man who said he was from Chicago, that he had been to Detroit twice to do a job, and that he wanted his money; that if he did not receive the money "he would take me right along with Mrs. Wade” (one of the defendants). Two days later a firebomb was thrown through the kitchen window and landed behind her. One of the children received cuts on the face from the bomb.
Mrs. Morgan called Detective Morton and asked him to come to her house. She testified that Mr. Morgan was recording all phone calls, both incoming and outgoing, with her consent, and that she requested Detective Morton to help her record phone conversations. She also stated that she wanted Detective Morton to do this, and that no one forced her to do so.
After hearing Mrs. Morgan’s testimony, as well as that of Mr. Morgan and Detective Morton, the trial judge ordered the tapes suppressed for lack of valid consent. He held that because the police promised Mrs. Morgan immunity from prosecution if she cooperated, and because her cooperation resulted in the arrest of a very close friend (Mrs. Wade had been her friend for seven years) her consent was the result of coercion. The judge relied principally on Weiss v United States, 308 US 321; 60 S Ct 269; 84 L Ed 298 (1939), in making this determination. In Weiss, the government intercepted a number of telephone messages in violation of § 605 of the Federal Communications Act of 1934. Those recordings could not be used to convict Mr. Weiss unless, according to the act, they were "authorized by the sender”. No pre-interception authorization had been obtained in Weiss. In an attempt to establish "authorization”, the government informed certain co-conspirators of the tapes, discontinued the prosecution of one co-conspirator, paid salaries to other co-conspirators and generally treated the co-conspirators leniently. In exchange, the co-conspirators retroactively "authorized” interception. The Supreme Court held that the nunc pro tunc authorization was invalid.
In the instant case, it is the U. S. Constitution, not a Federal statute, which must be construed. More significantly, we deal with Mrs. Morgan’s promise to permit recordation of future conversations. We do not deal with governmental activities illegal at their inception. In United States v Dowdy, 479 F2d 213 (CA 4, 1973), one Cohen, under threat of prosecution, agreed to permit government agents to listen in on conversations he held with defendant. Much as in the instant case, the co-conspirator became a government witness and deliberately sought to record a conversation which incriminated the defendant. He succeeded. We think that the disposition of the instant case is controlled by United States v Dowdy, supra:
"Defendant’s first claim with respect to the recordings and the transcriptions is that his rights under the fourth amendment were violated. We think the complete answer to this contention is United States v White, 401 US 745; 91 S Ct 1122; 28 L Ed 2d 453 (1971) (plurality opinion), which held that the fourth amendment requires no prior judicial authorization for governmental electronic recording of a private conversation where one of the parties to the conversation has consented to the surveillance. Since Cohen consented to each recording, it follows that each recording and the transcriptions made from some did not violate defend ant’s fourth amendment rights and were therefore admissible into evidence.
"We reject defendant’s argument that Cohen’s consent was not freely and voluntarily given since it was extended under the pressure of a potential indictment and in return for a promise of immunity. Three circuits have rejected this argument, United States v Silva, 449 F2d 145, 146 (CA 1, 1971), cert denied 405 US 918; 92 S Ct 942; 30 L Ed 2d 787 (1972), United States v Jones, 433 F2d 1176 (D C Cir, 1970), cert denied 402 US 950; 91 S Ct 1613; 29 L Ed 2d 120 (1951), Good v United States, 378 F2d 934 (CA 9, 1967), and we agree.” 479 F2d at 229.
The trial judge’s ruling suppressing the evidence on the grounds that Mrs. Morgan’s consent was not voluntary is clearly erroneous. The order granting defendants’ motion to suppress is reversed and the cause remanded for trial. | [
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D. E. Holbrook, J.
This case involves a dispute between two factions of the St. Simon Romanian Orthodox Church. The plaintiffs represent the Romanian Orthodox Episcopate of America (hereafter called Episcopate) headed by Bishop Valerian Trifa. The defendants are represented by Father Mihai Iancu who is the leader of the St. Simon Independent Romanian Orthodox Church which separated from the Episcopate. Originally, the Articles of Association of St. Simon Romanian Orthodox Church provided that the church membership would worship and labor together accord ing to the discipline, rules and. usage of the Romanian Orthodox Church in the United States of America as from time to time authorized and declared by the Romanian Orthodox Episcopate. On March 25, 1973, the majority of the parish voted to become independent from the Episcopate due to their discontent with Bishop Trifa and this resulted in a splitting of the parish membership into two groups.
As a result of this division, the issue arose as to which group was entitled to the use and control of the church buildings and assets. On January 17, 1974, plaintiffs filed a suit in Wayne County Circuit Court to recover the church property and restrain Father Iancu, who had been defrocked by Bishop Trifa, from functioning as a priest or using the church assets. After a bench trial, the trial judge held that the church was hierarchal and not congregational in nature and that a schism had developed within the church. As the constitution and by-laws of the Episcopate provided that the group which recognized the jurisdiction of the Episcopate was entitled to the church property, the trial judge held that plaintiffs were entitled to the property as it existed on March 25, 1973.
A better understanding of this case is possible by reviewing the historical background of the church.
In 1941, when the parish was incorporated as an ecclesiastical corporation, the Mother Church in Romania did not have a bishop in America and formal recognition was not granted for that reason.
The Romanian Orthodox Missionary Episcopate of America came into existence in 1929. The Bishop of the Episcopate was Bishop Morusco who was kept in forced domicile in Romania and was not allowed to return to the United States to join his diocese. The Romanian Patriarch appointed one Nica to replace Bishop Morusco in 1948, however, he remained in Paris, when he did not get the authorization to come to the United States.
In 1950, an American citizen named Moldovan was called to Romania and ordained as a bishop by the Romanian Patriarch and the Synod of Bishops.. He was sent back to the United States to head the Romanian Orthodox Missionary Episcopate of America. When he attempted to take charge of the Episcopate, its members contested the authority of the Holy Synod. They believed that they were autonomous and could elect their own bishop. In Romanian Orthodox Missionary Episcopate of America v Trutza, 205 F2d 107 (CA 6, 1953), cert den, 346 US 915; 74 S Ct 274; 98 L Ed 410 (1953), the Court determined that the Episcopate, in fact, was autonomous and the Episcopate changed its name to the Romanian Orthodox Episcopate of America. All the parishes, including St. Simon, voluntarily submitted themselves to this autonomy. By submitting to this autonomy, to its constitution and by-laws, they established a hierarchal church with canonical and administrative jurisdiction. The Court also determined that the existing Episcopate had full authority to control its property without interference from the Romanian Patriarch.,
Valerian Trifa was born in Romania where he studied theology. He was a lay missionary for many years in his native country and left Romania in 1941. In 1952, he went through the steps necessary for becoming a bishop. He was ordained a deacon, a priest and then a bishop during a three-week period. This rapid rise is very rare and Bishop Trifa stated that he only remembers it happening once before. This was in Romania during the 1930’s.
Father Iancu also studied in Romania and was ordained a priest there in 1958. He came to America in 1970 as a political refugee and went to the St. Simon Church to fill a vacancy after meeting with Bishop Trifa. He was appointed the administrator of the church and was under the supervision of Bishop Trifa. He was subject to the constitution and by-laws of the Episcopate. Father Iancu was very popular with the parish and the church’s membership grew considerably. Also, substantial improvements were made to the church building which had been in need of repair.
A dispute arose between Bishop Trifa and Father Iancu. It appeared that Father Iancu might be relieved of his position by Bishop Trifa. At the annual membership meeting of St. Simon Church held on January 28, 1973, Father Iancu was appointed permanent priest for the parish. This apparently was an effort to prevent Bishop Trifa from removing him. The membership also approved a resolution that in the event the Episcopate should replace Father Iancu, the parish would withdraw from the Episcopate and become independent. When Bishop Trifa was notified of these proceedings, he relieved Father Iancu as administrator of St. Simon Church. A general meeting of the membership of St. Simon was called for March 25, 1973, and they voted to leave the jurisdiction of Bishop Trifa and establish an independent church.
Subsequently, Bishop Trifa had Father Iancu defrocked. However, Father Iancu and his followers remained in control of the church properties and assets.
The defendant raises two issues on appeal. How ever, there is only one issue to be decided by this Court — did the trial court err in granting the property of St. Simon parish to those parishioners who remained faithful to the Romanian Orthodox Episcopate of America? The defendant asserts that this Court cannot determine whether or not there was a schism in the St. Simon Church and cannot award the property based upon the by-laws of the Episcopate since to do this involves this Court in ecclesiastical matters. The plaintiffs maintain that since a schism has arisen in the parish, under the by-laws of the Episcopate, those members who are faithful to the Episcopate are entitled to the church’s property.
On February 21, 1971, when Father Iancu was appointed parish administrator by Bishop Trifa, he took the following oath:
"Upon being entrusted with the administration of the parish, I voluntarily declare to recognize and submit to the canonical and administrative jurisdiction of the Romanian Orthodox Episcopate of America and to its Bishop Valerian D. Trifa and to his legal and canonic successor, and that I will not recognize the authority of any other church organization or person and I will not permit the parish to which I am entrusted to submit itself under any other jurisdiction. In fulfilling my mission, I will work in accordance with the Constitution and By-laws of the Romanian Orthodox Episcopate of America and will abide totally to the decision of the Episcopate Congress and to the Episcopal Council, so help me God. ” (Emphasis supplied.)
Father Iancu clearly violated this oath. He declared that he would submit to the jurisdiction of the Episcopate and Bishop Trifa and would not recognize any other church organization. In addition, he declared that he would not permit the parish to submit itself under any other jurisdic tion. However, Father Iancu participated with members of the parish in getting the parish of St. Simon to split with the Episcopate and had himself elected priest for life. This group called itself the St. Simon Independent Romanian Orthodox Church and claims to be no longer under the jurisdiction of the Episcopate but under the jurisdiction of the Romanian Orthodox Church of Western Europe. Thus, the group of parishioners led by Father Iancu have established a new church under a different jurisdiction. The defendants assert that because the Romanian Orthodox Church of Western Europe is under the jurisdiction of the Romanian Holy Synod, they have not split from the Mother Church and have a right of control over St. Simon’s property. Defendants claim that this is not a case where the majority members of a church change orthodoxy and try to take the church property from the minority. We do not agree. The United States Court of Appeals held that the Romanian Orthodox Episcopate of America was autonomous from the Romanian Orthodox Church. When the St. Simon Church adopted the constitution and by-laws of the Romanian Orthodox Episcopate of America, St. Simon and the Romanian Orthodox Episcopate of America were autonomous of the Romanian Orthodox Church and, therefore, this is a case where the rule of the faithful minority is applicable. The Articles of Incorporation of the St. Simon Church state as follows:
" 'St. Simon’ Romanian Orthodox Church.
"We, the undersigned, desiring to become incorporated under the provisions of Art No. 327 P.A. 1931, do hereby make, execute and adopt the following articles of association, to-wit:
"First, The name assumed by this corporation and by which is [sic] shall be known in law, is 'St. Simon’ Romanian Orthodox Church.
"Second, The location of said church shall be in the City of Highland Park, county of Wayne and state of Michigan; Post office address-John R,--
"Third, The time for which said corporation shall be created shall be perpetual.
"Fourth, The members of said church or society shall worship and labor together according to the discipline, rules and usage of the Romanian Orthodox Church in the United States of America as from time to time authorized and declared by the Romanian Orthodox Episcopate. ” (Emphasis supplied.)
Thus, the St. Simon parish was incorporated and entered into an association with the Episcopate with full knowledge of its discipline, rules and usage and agreed to be bound thereby.
Although Father Iancu declared in his oath that he would work in accordance with the constitution and by-laws of the Romanian Orthodox Episcopate of America, his refusal to give up the St. Simon Church property indicates that he did not follow his oath. A review of the constitution and by-laws of the Romanian Orthodox Episcopate of America clearly states what is to be done with church property in the case of a schism. Article IX of the by-laws provide in part as follows:
"Section 1.
"The parish is the community of the faithful in a specified geographical area under the jurisdiction of the Romanian Orthodox Episcopate, having a priest as spiritual leader, and being administered by a parish council duly elected by its general assembly.
"Section 6.
"The assets of the parish shall be administered by the parish council in accordance with the Episcopate By Laws and the laws of the state in which the parish is located.
"Section 10.
"In the event of the dissolution of a parish, title to all of its properties, real and personal, including documents, religious objects, vestments, works of art, and any other articles used in conjunction with and for the purposes of the parish shall pass to the patrimony of the Episcopate.
"Section 11.
"In case of a schism within the parish, or departure from the Orthodox faith, the party or group recognizing the jurisdiction of the Episcopate shall be entitled to complete control of all parish property of every kind, nature and description. ” (Emphasis supplied.)
No one disputes the fact that Father Iancu and his followers could leave the Episcopate and establish an independent church. However, where they have created an independent church under the jurisdiction of another authority, then they have no right to keep the property and it should go to the "faithful minority”.
The right of the "faithful minority” has been recognized in Michigan. In Fuchs v Meisel, 102 Mich 357, 373-374; 60 NW 773 (1894), the Michigan Supreme Court stated:
"In the freedom of conscience and the right to worship allowed in this country, the defendants and the members of this church undoubtedly possessed the right to withdraw from it, with or without reason. But they could not take with them, for their own purposes, or transfer to any other religious body, the property dedicated to and conveyed for the worship of God under the discipline of this religious association; nor could they prevent its use by those who chose to remain in the church, and who represent the regular church organization. ” (Emphasis supplied.)
See also, Immanuel Evangelical Lutheran Church v Fromm, 367 Mich 575, 588; 116 NW2d 766 (1962), Macedono-Bulgarian Orthodox Church St. Clement Ohridski v Macedonian Patriotic Organization Fatherland, 27 Mich App 713, 725; 184 NW2d 233 (1970), Holwerda v Hoeksema, 232 Mich 648, 655; 206 NW 564 (1925), Davis v Scher, 356 Mich 291; 97 NW2d 137 (1959).
In Davis, supra, at 298, the Court said:
"The weight of authority in Michigan is to the effect that the majority faction of a local congregation or society, being one part of a large church unit, however regular its action or procedure in other respects, may not, as against a faithful minority, divert the property of the society to another denomination or to the support of doctrines fundamentally opposed to the characteristic doctrines of the society, although the property is subject to no expressed trust.”
Affirmed, costs to plaintiffs. | [
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Bashara, J.
Defendant appeals his conviction by a jury of first-degree murder and armed robbery. The prosecution sought to establish that defendant and his codefendant, Lee Chester Butts, killed the victim during the course of an armed robbery.
While instructing the jury, the trial court referred to the weapon used to kill the victim as the "murder weapon”. Defendant urges that such reference effectively negated the presumption of innocence by establishing in the minds of the jurors that a murder had been committed. However, the defense theory at trial did not refute the allegation that a murder had been committed. Rather, the defendant contended that he was not present at the scene of the crime at the time it was perpetrated. Consequently, we fail to perceive how the trial court’s choice of terms prejudiced defendant’s case.
Similarly, we find no merit in defendant’s contention that the trial court depreciated the presumption of innocence by other specified statements in the jury instructions. To the contrary, when read in their entirety, the instructions are replete with statements placing the burden of proof upon the prosection and emphasizing that defendant was not required to prove anything. This allegation of prejudice cannot be established by extracting selected statements from the context of the instructions, which must be read and assessed as a whole. See People v Frank Johnson, 58 Mich App 1; 226 NW2d 730 (1975), People v Musser, 53 Mich App 683; 219 NW2d 781 (1974), lv den, 392 Mich 798 (1974).
Defendant maintains that the trial court’s instruction on first-degree murder is reversibly erroneous. Essentially, that instruction enjoined the jury to find guilt if they concluded that the victim was "killed” by an act committed in the perpetration of the armed robbery.
This issue has resulted in diametric opinions from this Court. Compare People v Till, 80 Mich App 16; 263 NW2d 586 (1977), with People v Fountain, 71 Mich App 491; 248 NW2d 589 (1976). We subscribe to the conclusion expressed in Till and, therefore, find no reversible error in the import of the trial court’s instruction.
We also are of the opinion that the common-law felony-murder rule has been a part of Michigan’s jurisprudence since admission to statehood and from that time has governed the application of the first-degree murder statute. A rule with such his torical foundation, especially in the area of criminal law, should not be modified except by legislative enactment. To do otherwise would, as long ago recognized, deviate from that "safe and necessary rule that criminal law should not be tampered with except by legislation”. In the Matter of Eugene Lamphere, 61 Mich 105, 108-109; 27 NW 882 (1886).
Another instructional error is claimed by defendant regarding the alibi defense raised at trial. He contends that the trial court’s instruction impermissibly shifted the burden of proving the alibi to defendant and failed to properly advise the jury that, even if the alibi fell short of establishing a perfect defense, it could also operate to raise a reasonable doubt as to defendant’s guilt.
An evaluation of the alibi instruction supports neither of defendant’s contentions. Throughout, the trial court emphasized that the burden of proving defendant’s guilt was upon the prosecution. Further, the trial court advised the jury that, if the evidence established the alibi, the defendant must be found not guilty. The instruction also informed the jury that if the perfect defense was not found, to convict the defendant they must, nevertheless, find from the prosecution’s evidence that the defendant was proved guilty beyond a reasonable doubt. This latter finding must necessarily encompass a conclusion beyond a reasonable doubt that the defendant was present at the scene of the crime at the time it was committed.
Our assessment of the alibi instruction discloses that all of the operative characteristics of the defense suggested by the proposed Criminal Jury Instructions were covered by the trial court. From our observations, the proposed instructions appear to succinctly and clearly state the appropriate law on the topics covered, and we would urge the trial courts to make use of them. Extensive use would provide the essential information necessary to facilitate a comprehensive analysis of their value in the criminal litigation context.
Defendant’s remaining contention, warranting brief discussion, concerns his conviction of both first-degree murder and armed robbery. Since the latter is a necessary element of the former under the prosecution’s theory of the case, the armed robbery conviction must be vacated. See People v Stewart (On Rehearing), 400 Mich 540; 256 NW2d 31 (1977). Defendant’s other contentions do not merit discussion.
Accordingly, defendant’s conviction of first-degree murder is affirmed, and the conviction of armed robbery is vacated.
Beasley, P. J., concurred.
MCLA 750.316; MSA 28.548.
MCLA 750.529; MSA 28.797. | [
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Per Curiam.
Defendant was tried by jury and convicted of statutory rape. MCLA 750.520; MSA 28.788. Thereafter sentenced to a prison term of not less than 10 nor more than 20 years, defendant appeals as of right.
While defendant raises numerous issues on appeal one is dispositive and mandates reversal.
During the course of the trial the prosecutor asked: (1) defendant’s wife if she was a "God fearing woman”; (2) defendant’s sister if the defendant was a "religious man”; and (3) defendant’s mother if defendant was a "God fearing man”.
Questions such as the above are of the nature condemned and held to be reversible error in People v Hall, 391 Mich 175; 215 NW2d 166 (1974), and People v Bouchee, 400 Mich 253; 253 NW2d 626 (1977). Nor can defendant’s conviction be saved by People v Burton, 401 Mich 415, 418; 258 NW2d 58 (1977), where swift action on the part of the trial judge cured any error. Unlike Burton, supra, nothing was done by the trial judge, in the instant case, to correct the obviously improper questions by the prosecutor.
Resolution of the foregoing issue being dispositive, discussion of defendant’s remaining allegations of error is rendered unnecessary.
Reversed and remanded for a new trial. | [
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R. B. Burns, J.
In these consolidated cases plaintiffs Armstrong (hereinafter plaintiffs) seek damages and other relief against defendants Ross Township, the township building inspector, and members of the township board, planning commission, and zoning board of appeals, alleging abuse of zoning power and violation of civil rights. Defendants’ motions for summary judgment as to liability for damages were denied, except for Ross Township’s alleged liability under 42 USC 1983. We granted defendants’ applications for leave to appeal, and affirm in part and reverse in part.
In case 31282 plaintiffs allege defendants conspired to harass them and destroy their business. They own a machine shop in Ross Township and applied to the building inspector for a building permit so that they could expand. They further allege that despite their entitlement to the permit it was wrongfully and in bad faith refused. Plaintiffs allege that they applied for a special use exception to the zoning board of appeals, which was biased and predisposed not to grant the exception, and denied the application for reasons not supported by the record, despite having given similar exceptions to other nearby machine shops. Plaintiffs allege that the planning commission met in secret session without notice to plaintiffs and recommended rezoning their property so as to block expansion of the shop and that the township board followed the allegedly unlawful recommendation and rezoned the property. The rezoning is alleged to be arbitrary, capricious, discriminatory, confiscatory, and unrelated to the health, safety, welfare or morals of the community.
In case 31283 plaintiffs Armstrong allege that they asked the building inspector whether a restaurant would be a permitted use on their land, and were advised that it would be. They allege that in reliance upon that representation they filled the property, constructed a fence, and submitted plans in application for a building permit at a cost of over $17,000. They further allege that notwithstanding plaintiffs’ right to a permit, the building inspector stalled the permit while conspiring with the planning commission and township board to rezone the property so as to exclude the intended use and that the planning commission initiated rezoning without a formal petition, and the township board rezoned the property without complying with statutory procedural requirements. The rezoning is alleged to be arbitrary, capricious, discriminatory, and unrelated to the health, safety, welfare or morals of the community. As commercial property, its highest use, plaintiffs allege that the land is worth $50,000; as rezoned, only $10,000.
Defendants moved for summary judgment under GCR 1963, 117.2(3). The motion was based on the deposition of Mr. Armstrong, but no affidavits were submitted by defendants. This lack of affidavits is fatal to the motion even absent objection by plaintiffs at the trial court level. GCR 1963, 117.3, Creech v Consumers Power Co, 59 Mich App 167, 170; 229 NW2d 358, 360 (1975). Consequently we do not reach the merits of the motions on appeal.
Defendants also moved for summary judgment for failure of plaintiffs to state a claim upon which relief can be granted. GCR 1963, 117.2(1). On review of such a motion we "accept as true all of plaintiff [s’] factual allegations as well as any conclusions which can reasonably be drawn therefrom”, Van Liere v State Highway Department, 59 Mich App 133, 137; 229 NW2d 369, 371 (1975), and determine "whether plaintiff [s’] claim, on the pleadings, is so clearly unenforceable as a matter of law that no factual development can possibly justify a right to recovery”, Crowther v Ross Chemical & Manufacturing Co, 42 Mich App 426, 431; 202 NW2d 577, 580 (1972). Where immunity from suit is an issue the complaint must plead facts in avoidance of immunity. Dionne v City of Trenton, 79 Mich App 239, 242; 261 NW2d 273, 275 (1977).
We turn initially to the alleged liability of Ross Township for damages for alleged abuse of zoning power by its officials. As a governmental agency engaged in the discharge of governmental functions the township is immune from tort liability by statute. MCLA 691.1407; MSA 3.996(107). Although the sovereign immunity act provides several exceptions to the immunity doctrine, none apply here.
In Buckeye Union Fire Insurance Co v Michigan, 383 Mich 630, 640-644; 178 NW2d 476, 482-483 (1970), the Supreme Court held that the Legislature’s power to grant governmental agencies sovereign immunity is limited by the constitutional provision prohibiting the taking of private property for public use without compensation. Const 1963, art 10, § 2. In Tamulion v State Waterways Commission, 50 Mich App 60, 66-67; 212 NW2d 828, 831 (1973), this Court recognized that a compensatory obligation arises under the constitu tion, not in tort, for inverse condemnation, and that sovereign immunity does not insulate the state from liability thereon.
A township may not so restrictively zone property as to confiscate it. Property is not confiscated unless the ordinance "would preclude its use for any purpose to which it is reasonably adapted”. Kirk v Tyrone Twp, 398 Mich 429, 444; 247 NW2d 848, 854-855 (1976), Kropf v Sterling Heights, 391 Mich 139, 163; 215 NW2d 179, 189 (1974). Mere disparity in value between uses, Brae Burn, Inc v Bloomfield Hills, 350 Mich 425, 433; 86 NW2d 166, 170 (1957), Reibel v Birmingham, 23 Mich App 732, 738; 179 NW2d 243, 246 (1970), or depreciation in value caused by rezoning, Lamb v City of Monroe, 358 Mich 136, 144; 99 NW2d 566, 570 (1959), will not justify a finding of confiscation.
Each of the complaints alleges in conclusional terms confiscation, but in evaluating the complaint we ignore conclusions and look to the facts alleged. Binder v Consumers Power Co, 77 Mich App 343, 346-347; 258 NW2d 221, 224 (1977). In each case we find plaintiffs have pled depreciation in value, not confiscation. In case 31282 plaintiffs indicate that the property has a working machine shop. In case 31283 plaintiffs admit the property has value as rezoned, albeit a substantial depreciation has occurred. Plaintiffs’ loss suffered in reliance upon the building inspector’s representation sounds in tort, not inverse condemnation. Since neither complaint alleges facts in avoidance of immunity, Ross Township’s motion for summary judgment should have been granted.
We next turn to the alleged liability of the township officials for damages, first under state law, then under 42 USC 1983.
Under state law government officials may be held liable for negligent performance of ministerial duties, but are immune from suit for injuries caused by discretionary acts within the scope of their authority, even if done maliciously. Sherbutte v Marine City, 374 Mich 48, 54; 130 NW2d 920, 923 (1964), Walkowski v Macomb County Sheriff, 64 Mich App 460; 236 NW2d 516 (1975). The justification for immunity for discretionary acts is that the exercise of discretion should not be influenced by even the possibility of unsuccessful litigation against the official. Sherbutte v Marine City, supra.
Since almost any act involves some discretion, the distinction between ministerial and discretionary acts is one of degree. Prosser, Torts (4th ed), § 132, p 990. By discretionary is meant actions of a legislative, executive or judicial character. Sherbutte v Marine City, supra, see Pawlowski v Jenks, 115 Mich 275; 73 NW 238 (1897), Amperse v Winslow, 75 Mich 234; 42 NW 823 (1889), Walkowski v Macomb County Sheriff, supra. The decision of a drain commissioner to issue partial payments for drain construction, People, for use of Lapeer County Bank v O’Connell, 214 Mich 410; 183 NW 195 (1921), and a police officer to arrest, Sherbutte v Marine City, supra, are considered ministerial.
The decisions of the township board, planning commission, and zoning board of appeals involve discretion, weighing the rights of the individual against the public interest. If such officials were subjected to the worry of defending themselves against suit for damages by individuals against whose interest they decide, the exercise of discretion might well be influenced. These officials are immune from suit under state law. However, the range of discretion of a building inspector in deciding whether applicants are entitled to a building permit is narrow, akin to that of a drain commissioner or police officer. The act is ministerial. Plaintiffs allege the building inspector in each case intentionally denied building permits to which they were entitled. Plaintiffs have pled facts in avoidance of immunity as to this official under state law.
Immunity from suit under 42 USC 1983 turns upon the existence of an analogous immunity provision at common law coupled with a weighing of the need for immunity as against the need to compensate plaintiffs for violation of civil rights. See, e.g., Imbler v Pachtman, 424 US 409; 96 S Ct 984; 47 L Ed 2d 128 (1976), Wood v Strickland, 420 US 308; 95 S Ct 992; 43 L Ed 2d 214 (1975), Scheuer v Rhoades, 416 US 232; 94 S Ct 1683; 40 L Ed 2d 90 (1974). Absolute immunity from suit has been accorded only to those officials exercising the very widest discretion and with the greatest need to be free of the possible influence of litigation. See Imbler v Pachtman, supra (prosecuting attorneys), Pierson v Ray, 386 US 547; 87 S Ct 1213; 18 L Ed 2d 288 (1967) (judges), Tenney v Brandhove, 341 US 367; 71 S Ct 783; 95 L Ed 1019 (1951) (state legislators). Executive officials enjoy only a qualified immunity, dependent upon the scope of discretion, responsibilities of the office, and circumstances as they reasonably appeared at the time of the action. Reasonable grounds for action and good faith belief in the propriety of the action are the basis for immunity. Scheuer v Rhoades, supra. In Woods v Strickland, supra, the Supreme Court found only a qualified immunity available to school board members in the exercise of legislative and judicial powers. State law generally accorded such officials immunity from tort liability for actions taken in good faith without malice. The Supreme Court adapted this immunity doctrine to the Federal context and held that school board members were not immune if they knew or reasonably should have known that the action they took would violate constitutional rights, or if they took the action with malicious intention to cause a deprivation of constitutional rights. The same test was held applicable in a suit against a hospital superintendent who allegedly wrongfully refused to release a patient from a mental hospital. O’Connor v Donaldson, 422 US 563; 95 S Ct 2486; 45 L Ed 2d 396 (1975).
The majority rule as to tort liability of lower governmental officials is that they are immune from liability only if they act in good faith without malice. Prosser, Torts (4th ed), § 132, p 989. This is the same test of immunity applicable to school board members from which the Supreme Court fashioned an immunity doctrine for such officials under 42 USC 1983. Woods v Strickland, supra. The discretion exercised by a township board, planning commission, and zoning board of appeals is more closely akin to that of school board members than that of state legislators. Thus, we find those officials had only a qualified immunity from suit, the scope of which is that set forth by the Supreme Court in Woods.
In each complaint plaintiffs allege the above officials acted unlawfully, in bad faith and with malice to deprive them of unrestricted enjoyment of their property. Plaintiffs have pled facts in avoidance of immunity for violation of civil rights under 42 USC 1983.
The Michigan rule that officials are not immune from liability for ministerial acts is in accord with that of other states. Prosser, Torts (4th ed), § 132, pp 989-990. Consequently there is no immunity under 42 USC 1983 for such acts. Cf. Pierson v Ray, supra (police officers). Therefore, the building inspector enjoys no immunity under 42 USC 1983.
We express no opinion on the merits of plaintiffs’ claims and remand without prejudice to defendant’s ability to bring a proper motion for summary judgment under GCR 1963, 117.2(3).
Reversed in part, affirmed in part, and remanded for proceedings consistent with this opinion.
No costs, neither side prevailing in full. | [
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Beasley, P. J.
On May 12, 1972, while waiting on the fairway to hit his second shot on the eighth hole of Detroit’s Rouge Park Golf Course, plaintiff-appellant, Roland R. Johnson, was struck in the eye by a golf ball, hit and hooked to the left by Robert H. Scheuer, from the tee area for the seventh hole.
Plaintiffs seek damages against defendant City of Detroit for personal injuries, including loss of vision in one eye, claiming defendant city maintained and operated an unsafe and dangerous golf course. Plaintiffs’ opening statement says that while the initial design of the golf course was satisfactory when it was built about 1928, that changes in the golf balls, the golf clubs and the ability of golfers make placing of the parallel adjoining fairways for the seventh and eighth holes, which are separated by rough of a width of only about 15 feet, dangerous and unsafe. Plaintiffs claim defendant should have taken steps to correct this condition either by redesigning the two holes, by planting shrubs and trees which would grow into a natural barrier, by erecting a protective screen as an additional barrier between the two fairways, or by placing warning signs, or by all of these measures.
After a two-day trial in July, 1976, a jury found no cause of action in favor of defendant city. Plaintiff appeals as of right. We reverse and remand for a new trial for the following reasons.
Plaintiff’s first issue is that the trial court erred when it declined to allow plaintiff’s expert to testify. The expert testimony was offered in the following context. After paying the usual green fees, plaintiff began to play a round of golf at Rouge Park Golf Course which is operated by defendant. At the eighth tee, plaintiff’s drive came to rest about 250 yards down the fairway and off to the left. Then, while waiting to take his second shot, plaintiff was struck on the head by a ball hit from the seventh tee.
Although running in opposite directions, the seventh and eighth holes have contiguous fairways; 10 to 15 feet of rough separated the two fairways at the point where plaintiff was struck. In addition, testimony was offered to show that the layout of the seventh fairway would encourage golfers to play down the left side even though it is claimed that the common tendency of golfers is to slice to the right. Since the left side of the seventh fairway was the portion closest to the eighth fairway, playing down that side would increase the possibility of overlap between the areas in which drives would land from the respective tees.
The design and maintenance of these two fair ways form the basis of plaintiffs allegations of defendant’s negligence. Plaintiff sought to introduce expert testimony to show negligence both in the design of the two fairways, as applied to present day golfing conditions, and in the failure of defendant, while maintaining the course, to provide protective screening or shrubbery between the two fairways.
The expert offered by plaintiff was William New-comb of Ann Arbor. Extensive credentials were presented for Mr. Newcomb in regard to both his academic achievements and his actual experience with golfing, golf courses, and golf course design. Among other things, the evidence indicated that he had a Bachelor of Arts degree in architecture and a Master of Arts degree in landscape architecture from the University of Michigan. Golf course design was the subject of his master’s thesis and of the courses he taught at both Michigan State University and the University of Michigan. As a golfer himself, Mr. Newcomb won the Michigan State Amateur championship in 1967 and coached the University of Michigan golf team. In addition, as a golf course architect and contractor, since 1965 he had designed over 50 golf courses and had redesigned some 20 more. It is clear that in golfing circles, Mr. Newcomb is a well-known and well-respected member.
The defendant opposed introduction of Mr. New-comb’s testimony on the ground that the absence of commonly accepted standards in the field precluded Mr. Newcomb from being considered an "expert”. The defendant also argued that the testimony was unnecessary because the person who actually hit the drive had given a deposition in which he said that he was not trying to hit down the left side of the fairway and that he was not influenced by the layout of the seventh fairway in any of the ways that plaintiff alleged. Finally, the defendant argued that the testimony was unnecessary because both the alleged negligence and the proposed remedies were well within the understanding of the jury without such assistance.
Before, during and after plaintiff’s offer of proof, the trial court ruled that the expert testimony would not be admissible. The plaintiff’s evidence, therefore, consisted of his own testimony and that of various employees of defendant whom he called under the adverse party statute. The defendant introduced some of the deposition of the person who had hit the drive. The jury then returned its verdict of no cause of action.
In general, it is true that it is within a trial court’s discretion to admit or exclude expert testimony and that an exercise of that discretion will not be reversed except where it is clearly abused. The uncontroverted evidence indicates that by education and experience, Mr. Newcomb qualifies as an expert in the design and construction of golf courses. To the extent, if any, that the trial judge’s various rulings may be interpreted to hold otherwise, they are in error and constitute an abuse of his discretion.
The court rules provide:
".1 Harmless Error. No error in either the admission or the exclusion of evidence and no error or defect in any ruling or order or in anything done or omitted by the court or by any of the parties is ground for granting a new trial or for setting aside a verdict or for vacating, modifying, or otherwise disturbing a judgment or order, unless refusal to take such action appears to the court inconsistent with substantial justice. The court at every stage of the proceeding shall construe these rules to secure the just, speedy, and inexpensive determination of every action so as to avoid the consequence of any error or defect in the proceeding which does not affect the substantial rights of the parties.” GCR 1963, 529.1.
However, this Court has not hesitated to reverse when abuse of discretion has resulted in a denial of substantial justice. In particular, when competent, material, and relevant evidence on an essential issue has been excluded, when the party offering the evidence has received an adverse factual determination of that issue, and when consideration of the excluded testimony might have resulted in a different finding, this Court has held the exclusion to be reversible error.
The first portion of the New York Central analysis examines the evidence itself. In the context of expert testimony, the special test is that three criteria must be satisfied: (1) there must be an expert; (2) there must be facts in evidence which require or are subject to examination and analysis by a competent expert; and (3) there must be knowledge in a particular area that belongs more to an expert than to the common man. O’Dowd v Linehan.
Here, the offered expert testified that, although there were no published standards regarding the internal design of golf courses, there were, he thought, "some common accepted standards”. In addition, he testified:
"Q [by Mr. Brochert, plaintiff’s attorney] Are these standards, these unwritten standards, are they generally accepted throughout the community of design or people within the field of golf course design?
"A I think they accept certain numbers or certain widths that are acceptable or unacceptable.
"Q And that is in the layout what we are talking about here, specifically the separation of fairways?
"A Yes.”
Mr. Newcomb, in the context of his credentials and these standards, satisfies the first requirement of O’Dowd, supra, that there be an expert. The second requirement of O’Dowd, supra, that there be facts in evidence which are subject to an expert’s analysis, is also satisfied both in the offer of proof regarding Mr. Newcomb, and in the other testimony concerning the golf course in question. Finally, the last requirement of O’Dowd, supra, regarding the need for the expert testimony, is satisfied in this case. It is true, as asserted by defendant, that the remedies proposed by the expert appear in large part to be based upon common sense. However, we also note that an answer or solution often appears obvious after it has been pointed out. We also note that, in this case, the record indicates that six of the jurors had no golfing experience. Finally, we note that at least one of the suggested remedies, that of changing the design of the holes, was exactly in the area of the offered expertise. In addition, since it is dependent upon such factors as golfers’ average driving distance, etc., it is a remedy that cannot be said to relate solely to common sense and knowledge. Thus, we conclude that there was knowledge which belonged more to the offered expert than to the common man.
With the O'Dowd test satisfied, New York Central would then have us look to the actual jury verdict and to the effect the excluded testimony might have had. Neither consideration requires extended discussion. The jury verdict was adverse and the excluded testimony, as presented in the offer of proof, might well have changed the result.
Having reviewed all the considerations under New York Central for examining an exercise of judicial discretion in excluding evidence, we hold that the trial court committed reversible error when it declined to allow plaintiff’s offered expert to testify. We, therefore, reverse and remand for a new trial.
Reversed and remanded.
Originally, Robert H. Scheuer was a defendant in this case. Plaintiff settled his case against Scheuer for $5,000 after his discovery deposition had been taken. Prior to trial, Scheuer died and excerpts from his deposition were read to the jury as part of defendant City of Detroit’s case.
Coger v Mackinaw Products Co, 48 Mich App 113; 210 NW2d 124 (1973).
See, 2 Wigmore on Evidence (3d ed), § 555, p 634, as follows:
“(2) It follows that there are no ñxed classes of expert persons, in which a witness finds himself and remains permanently. A person may be sufficiently skilled upon one question and totally unskilled upon the next. He may be competent to say whether the deceased had gray hair, and incompetent to say what killed the deceased; competent to say whether the deceased was asphyxiated, and incompetent to distinguish between coal-gas and water-gas; competent to say whether a hatchet was sharp, and incompetent to say whether a stain upon it was human blood. Since experiential capacity is always relative to the matter in hand, the witness may, from question to question, enter or leave the class of persons fitted to answer, and the distinction depends on the kind of subject primarily, not on the kind of person.
"It is thus a mistake to think of experiential qualifications as sharply marked off into defined classes. Since the change of a trifling feature in the general fact asked about may render the competent witness now incompetent, it is obvious that an accurate classification of topics with reference to experiential qualifications would involve divisions and subdivisions too numerous to conceive, and not of practical use.” (Emphasis in original.)
New York Central R Co v Michigan Milk Producers Ass’n, 3 Mich App 648, 652; 143 NW2d 590 (1966), Central Fabricators, Inc v Big Dutchman Division of US Industries, Inc, 62 Mich App 123, 130-131; 233 NW2d 212 (1975) (citing New York Central, supra).
385 Mich 491, 509-510; 189 NW2d 333 (1971).
See also, Farr v Wheeler Mfg Corp, 24 Mich App 379; 180 NW2d 311 (1970).
Confer McNally v Colwell, 91 Mich 527; 52 NW 70 (1892), wherein the Court ruled that the prudent method of putting out a fire in a sawmill was not a subject for expert testimony; the Court noted that the jury was all from lumbering country. | [
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Allen, J.
Where a prior land contract for undeveloped farmland containing an 8% annual interest charge is cancelled and, at the request of the land contract purchasers, there is substituted a second mortgage on the purchasers’ homestead containing an 8% annual interest charge, is the second mortgage in violation of MCLA 438.31c; MSA 19.15(lc) of the state usury laws? On July 27, 1977, the trial court held there was no violation and defendants could proceed to a public sale of plaintiffs’ residence. Plaintiffs appeal of right.
Plaintiff Roger Bebee, a real estate broker, was employed by defendants to sell farmlands known as the Old Ed Grettenberger Farm which defendants had acquired by inheritance. When Roger Bebee purchased the property himself he was credited with a $7,000 commission on the sale and, on November 5, 1973, the parties entered into a land contract for $70,000, with $12,000 paid down and the balance of $58,000 to be paid at 8% interest in monthly installments of $410. Payment in full was required by November 5, 1978. In May, 1974, when $48,000 remained due on the contract, plaintiffs requested a deed from defendants in order to obtain a first mortgage loan of $175,000 from the First State Savings Association for the purpose of developing the farm for commercial purposes. On May 31, 1974, defendants gave the deed as requested and, in return for the deed so given them, the plaintiffs gave a second mortgage on their home at 6616 Old River Trail, Lansing, for $48,000 at 8% annual interest and monthly payments of $410. The entire balance was payable December 31, 1979, but $5,000 was payable September 10, 1974, and an additional $5,000 December 31, 1974.
Plaintiffs’ commercial venture failed and the loan association foreclosed on the first mortgage. When plaintiffs likewise defaulted on the promissory note secured by the second mortgage on their residence the defendants commenced foreclosure by advertisement. At that time the balance due on principal and interest on the second mortgage was $36,025.04. Plaintiffs served on defendants a notice of rescission under the Truth in Lending Act and filed the present lawsuit claiming, among other things, that the interest rate on the second mortgage on plaintiffs’ residence was usurious because it exceeded 7%. In March 1977, plaintiffs obtained an ex parte injunction on the foreclosure sale and, in June 1977, defendants filed a motion for summary judgment. Following a hearing, the trial court granted defendants’ motion and dissolved the injunction, saying:
"It would lead to an absurd result, under these circumstances, to construe the statute as permitting an 8% interest rate on the land contract, but prohibiting that same interest rate as usurious merely because the subsequent transaction involved a second mortgage. And it would create an injustice to construe the statute as permitting plaintiffs to avoid payment of the note as a result of a change in the security interest that was made at their request and for their benefit. Such a result would not carry out the purpose of the statute, which is to prevent excessive interest rates.”
Section 1 of the state usury law as amended, MCLA 438.31; MSA 19.15(1) provides that the rate of interest shall not exceed 7%. Subsections (2) (5) and (6) of § 1(c) provide for certain exceptions to the 7% limitation. These read:
"(2) For the period ending on December 31, 1981, it is lawful for the parties to a note, bond, or other evidence of indebtedness, executed after August 11, 1969, the bona ñde primary security for which is a ñrst lien against real property, or a land lease if the tenant owns a majority interest in the improvements thereon, or the parties to a land contract, to agree in writing for the payment of any rate of interest, but no such note, mortgage, contract, or other evidence of indebtedness shall provide that the rate of interest initially effective may be increased for any reason whatsoever * * * .
"(5) The provisions of subsection (2) shall apply only to loans made by lenders approved as a mortgagee under the national housing act or regulated by the state, or by a federal agency, who are authorized by state or federal law to make such loans.
"(6) Notwithstanding subsection (5), lenders or vendors not qualiñed to make loans under subsection (5) may make, or may have made, mortgage loans and land contracts speciñed in subsection (2) on or after August 16, 1971, which mortgage loans and land contracts provide for a rate of interest not to exceed 11% per annum, which interest shall be inclusive of all amounts defined as the "finance charge” in the federal truth in lending act (Public Act 90-321), and the regulations promulgated thereunder.” MCLA 438.31c; MSA 19.15(lc). (Emphasis supplied.)
We must first decide which of two conflicting interpretations to place on the above provisions. Plaintiffs interpret subsection (2) to mean that interest on any loan secured by a second mortgage on real property may not exceed 7%. Defendants contend that subsection (6) contains an exception to the 7% limitation for lenders who are not banks. As interpreted by defendants, non-banks under subsection (6) may charge up to 11% on all loans secured by real property whether or not the security is a first or second mortgage. The trial court adopted defendants’ interpretation. We reject defendants’ interpretation. Subsection (6) permits non-bank lenders to make "mortgage loans and land contracts speciñed in subsection (2) * * * [at] * * * a rate of interest not to exceed 11% per annum”. (Emphasis supplied.) But subsection (2) specifies only land contracts and first mortgages. Thus, as to these, non-bank lenders may charge up to 11% but, as to second mortgages, both banks and non-bank lenders are uniformly limited to 7%.
Support for our interpretation is found in Smith v Department of Commerce, Corporation & Securities Bureau, 79 Mich App 107; 261 NW2d 228 (1977). In that case plaintiff Smith attempted to file articles of incorporation for a non-bank lending corporation to be known as the Freedom Mortgage Company whose purpose was to provide second mortgage loans on single-family dwellings in excess of 7% interest per annum. The Corporation and Securities Bureau refused to file the articles, on grounds that the rate of interest to be charged on second mortgages exceeded 7%. This Court affirmed and, in so doing, also held that the statutory classification scheme which mandates lower rates of interest on second mortgages than on first mortgages was not an unreasonable classification. The clear implication of Smith is that all second mortgages are restricted to a maximum interest rate of 7%.
Having determined that the interest rate charged on the second mortgage exceeds the statutory permissible rate, we must now decide whether, under the special circumstances of this case, the 8% interest charge is usury. On this issue the equities clearly favor defendants. Unfortunately, the law favors the plaintiffs. Perhaps if the second mortgage were but an alter ego substitution for the earlier land contract, we might find no violation of the statute. However, in at least the five respects footnoted below, 23 45the terms of the promissory note secured by the second mortgage differ from the terms of the land contract. We find the differences substantial and meaningful. Thus, contrary to defendants’ claim, we hold that the second mortgage is not merely the alter ego of the land contract or a "same transaction”. Hence the doctrine of "same transaction” does not validate the interest rate on the second mortgage on the basis of the valid interest rate under the land contract. The clear language of the statute evidences a legislative intent to forbid interest rates on second mortgages which exceed 7%. Despite the equities in defendants’ favor we hold that the legislative intent was violated, though unintentionally, in the situation before us. Though blameless, the interest rate charged by defendants on the second mortgage contract was usurious under the statute. To this extent the trial court erred.
However, the trial court did not err in dissolving the injunction which prohibited foreclosure on plaintiffs’ residence. The penalty for charging a usurious rate is the barring of the seller from recovery of any interest and the buyer is entitled to recover his attorney fees and court costs from the seller. MCLA 438.32; MSA 19.15(2). Usurious interest already freely and voluntarily paid by the buyer cannot be recovered but usurious interest remaining due and payable may not be collected. Wright v First National Bank of Monroe, 297 Mich 315, 328; 297 NW 505 (1941). The main contract itself is not declared void. Sienkiewicz v Leonard Mortgage Co, 59 Mich App 154, 157; 229 NW2d 352 (1975). Defendants are entitled to repayment of the principal remaining due on the promissory note and are also entitled to proceed to enforce the second mortgage by foreclosure.
Reversed in part, affirmed in part. Plaintiffs to recover costs and attorney fees as prescribed by MCLA 438.32; MSA 19.15(2)._
Plaintiffs also gave a second mortgage on the farm on which the First State Savings Association had taken the first mortgage.
Consumer Credit Protection Act, 15 USCA 1601 et seq. Count II of plaintiffs’ complaint alleged violation of the Truth in Lending Act, 15 USCA 1601 et seq., and Count I alleged violation of the Michigan usury law. The appeal in the instant case is taken on the trial court’s ruling as to Count I only.
(1) The realty securing the indebtedness is different.
(2) The parties are different. Nancy Bebee was not a named party on the land contract but is a signatory on the promissory note and second mortgage.
(3) The scheduled payments are different. Both the land contract and second mortgage called for payments of $410 per month, but the promissory note also required a payment of $5,000 by September 10, 1974, and an additional $5,000 by December 31, 1974.
(4) The date for payment in full is different. Under the contract, payment in full was required by November 5, 1978, but under the note, payment in full was extended until December 31, 1979.
(5) The legal relationship between the parties is different. Under the land contract the relationship is one between vendor and vendee but under a mortgage it is one of mortgagor and mortgagee. The time period for foreclosure and for redemption substantially differs.
The trial court’s opinion was made without benefit of Smith v Department of Commerce, Corporation & Securities Bureau, supra, in which the statute was construed as limiting all second mortgages to 7% interest. | [
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P. R. Mahinske, J.
Plaintiffs Thayer and Perkowski were among over 100 mentally retarded individuals for whom guardianship hearings were held by defendant on October 1, 1976, at the Oakdale Center for Developmental Disabilities. These hearings began at approximately 10:30 a.m. and were completed at 11:45 a.m. the same day. Plaintiffs alleged that the manner in which the hearings were held, at this institution and at other state institutions at other times by defendant, violated the new Mental Health Code, MCLA 330.1001 et seq.; MSA 14.800(1) et seq. Plaintiffs sought an order of superintending control pursuant to GCR 1963, 711, requiring defendant to rehear all guardianship petitions for persons affected, and to hold all future hearings in compliance with the Mental Health Code. The Wayne County Circuit Court declined to exercise superintending control and granted defendant’s motion for summary judgment. We reverse and remand for further proceedings.
Plaintiffs Thayer and Perkowski have been residents of Oakdale Center for over 20 years. They and other mentally retarded persons were admitted to state institutions under the former mental health law, which allowed commitment by the court upon a sufficient showing of mental disease. Under the new mental health law, however, there are two types of admission to institutions for the mentally retarded: (1) administrative admission, MCLA 330.1509 et seq.; MSA 14.800(509) et seq.; and (2) judicial admission, MCLA 330.1515 et seq.; MSA 14.800(515) et seq. Judicial admission is limited to persons who can reasonably be expected to physically injure themselves or others and who have overtly acted in a manner which supports this expectation. Administrative admission for adults may be executed by the individual himself if he is competent to do so, or by the individual’s guardian, MCLA 330.1509(2); MSA 14.800(509X2), providing the guardian has been specifically empowered to do so by the probate court, MCLA 330.1622(2); MSA 14.800(622)(2). These provisions radically alter the former statutes.
To the extent that the procedures followed in the original admissions of plaintiffs and other mentally retarded individuals did not comport with the new Mental Health Code, redeterminations were required. MCLA 330.2104; MSA 14.800(1104) provides:
"As soon as practicable after this act shall take effect but no later than 2 years after this act shall take effect, all actions then having legal effect under any provision of the acts and parts of acts repealed by this act and which are inconsistent with any provision of this act shall be redetermined and made consistent with the provisions of this act.”
It is against this background that the guardianship hearings for plaintiffs Thayer and Perkowski took place. The entire transcript of plaintiff Perkowski’s hearing was as follows:
"MR. RADER: In the matter of Walter Perkowski.
"THE WITNESS: Walter Perkowski is currently a resident of Oakdale Center. He needs constant supervision on a daily basis and he cannot take care of basic needs. I would recommend that a guardian be appointed.
"THE COURT: Has the ward been served, Lois?
"THE CLERK: Yes, he has.
"THE COURT: I will appoint Mary Ann Lukasik as the plenary guardian and authorize administrative admission. Are there any members of the family that wish to be heard here? There appears to be none. Okay, call the next case.”
The circuit court was asked to decide if the above hearing complied with the requirements of the new mental health law. We find that the circuit judge abused his discretion in refusing to answer this question. The process of seeking an order of superintending control is not an appeal. It is a new lawsuit, with different parties and different purposes. People v Flint Municipal Judge, 383 Mich 429, 432; 175 NW2d 750 (1970). It is an original civil action designed to require the defendant to perform a clear legal duty — in the instant case, to conduct guardianship hearings in accord with the state Mental Health Code.
The Mental Health Code provides safeguards designed to protect the substantive rights of the mentally retarded. Section 618, MCLA 330.1618(1); MSA 14.800(618)(1) imposes certain duties on the probate judge:
"The court, at a hearing convened under this chapter for the appointment of a guardian, shall:
(a) Inquire into the nature and extent of the general intellectual functioning of the individual asserted to need a guardian.
(b) Determine the extent of the impairment in his adaptive behavior.
(c) Ascertain his capacity to care for himself and his estate.”
In addition, § 628 of the act, MCLA 330.1628(2); MSA 14.800(628) provides:
"Prior to the appointment, the court shall make a reasonable effort to question the mentally retarded person concerning his preference regarding the person to be appointed guardian, and any preference indicated shall be given due consideration by the court.”
Plaintiff Perkowski’s hearing did not comply with these statutory mandates.
In testing defendant’s motion for summary judgment the circuit court was required to accept as true all well-pleaded factual allegations in plaintiffs’ complaint. GCR 1963, 117.2(1); Borman’s, Inc v Lake State Development Co, 60 Mich App 175, 179; 230 NW2d 363 (1975). Here plaintiffs alleged that defendant acted contrary to the Mental Health Code as to all members of a specified class. They also asserted the absence of any other plain, speedy and adequate remedy available to the class as a whole. These allegations, if proven, taken together with those concerning violations by defendant of specific statutory provisions, did state a claim upon which an order of superintending control could issue. See Cahill v Fifteenth District Judge, 393 Mich 137; 224 NW2d 24 (1974). Despite plaintiffs’ access to the avenue of individual appeals, such avenue would not support relief for the complaining class as a whole. Furthermore, it would not allow the circuit court to address and resolve the objections regarding the generalized practices of the probate judge.
For the above reasons we find that the circuit court’s dismissal of plaintiffs’ complaint was erroneous. On remand the circuit court shall hear and determine the question of whether or not the hearings held by defendant comported with the mandates of MCLA 330.1618(1) and MCLA 330.1628(2), and with other Mental Health Code provisions of which plaintiffs have alleged violations. The court shall comply with GCR 1963, 517.1. If the court finds the hearings were not held in accordance with statutory requirements, the court shall order rehearings of the guardianship petitions for those individuals affected, and shall order that future hearings held by defendant shall adhere to the procedures outlined in the Mental Health Code.
Reversed and remanded for further proceedings consistent with this opinion.
Bashara, J., concurred. | [
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T. M. Burns, J.
The Village of Wolverine Lake appeals from the Oakland Circuit Court’s affirmance of the State Boundary Commission’s decision on two petitions for incorporation of a home rule city. Both Commerce Township and Wolverine Lake submitted petitions to the State Boundary Commission for the creation of cities from the present township and village. MCLA 123.1007; MSA 5.2242(7). After appropriate proceedings the State Boundary Commission granted Commerce Township’s petition for incorporation as a new home rule city but adjusted the boundaries of the new City of Commerce to include all of the Village of Wolverine Lake. Wolverine Lake’s petition for incorporation was denied.
I
Wolverine Lake first contends that the State Boundary Commission has adopted a "rule” within the meaning of the Administrative Procedures Act of 1969, MCLA 24.207; MSA 3.560(107), disfavoring the creation or expansion of small cities within the metropolitan area of Wayne, Oakland and Ma-comb counties without complying with the procedures mandated by the APA. MCLA 24.241, 24.242; MSA 3.560(141), 3.560(142).
The definition of a rule and exclusions from that definition, one of which is applicable here, are contained in § 7 of the APA,
" 'Rule’ means an agency regulation, statement, standard, policy, ruling or instruction of general applicability, which implements or applies law enforced or administered by the agency, or which prescribes the orga nization, procedure or practice of the agency, including the amendment, suspension or recission thereof, but does not include the following:
"(j) a decision by an agency to exercise or not to exercise a permissive statutory power, although private rights or interests are affected thereby.” MCLA 24.207; MSA 3.560(107).
If the disfavor of the SBC for small communities within the larger metropolitan area follows from the statutory authority, then it is the exercise of a permissive statutory power and is not a rule requiring formal adoption under the APA. The criteria set forth in MCLA 123.1009; MSA 5.2242(9) implicitly require the SBC to look with favor on a larger community. The criteria include "past and probable future urban growth”, "probable future needs for services”, "practicability of supplying such services”, "the probable effect * * * on the cost and adequacy of services in the area to be incorporated and on the remaining portion of the unit from which the area will be detached”, and "the financial ability of the incorporating municipality to maintain urban type services in the area”.
With the emphasis on future growth and ability to provide services, it is inevitable that the Boundary Commission will favor a municipality with open space and a large tax base relative to population. Since two of the factors are "assessed valuation” and ability "to maintain urban type services” a small community made up principally of residential land use cannot compare favorably with a larger community that has an industrial tax base. This bias against small communities rises as much from the statute as it does from the Boundary Commission "policy”, but this legislative choice is a political one and not subject to judicial review.
Having its basis in the "permissive statutory power”, the actions of the SBC do not constitute the adoption of a rule which requires compliance with the APA.
II
Wolverine Lake also contends that MCLA 123.1001 et seq.; MSA 5.2242(1) et seq. which created the State Boundary Commission is unconstitutional because it delegates legislative authority to an administrative agency without sufficient guidance for the exercise of the discretion granted. This Court has rejected the argument in Midland Twp v State Boundary Commission, 64 Mich App 700; 236 NW2d 551 (1975), leave granted, 397 Mich 810 (1976), and Novi Twp v State Boundary Commission, 67 Mich App 596; 242 NW2d 449 (1976), leave granted, 397 Mich 810 (1976). Both cases are presently before the Supreme Court. Until that Court decides the issue, the challenge made here will not be well taken.
III
Apart from the constitutionality of the authority of the State Boundary Commission to act on petitions generally, Wolverine Lake claims that the authority to revise boundaries, granted to the Commission in MCLA 123.1010; MSA 5.2242(10), is unconstitutional for lack of standards to guide the decision. Before this position could be accepted it would be necessary to construe the act so that the criteria of § 9, MCLA 123.1009; MSA 5.2242(9), do not guide the Commission’s decision to revise boundaries.
In reviewing this claim the Court must read the act as a whole and in a manner consistent with validity, not invalidity, if possible. Department of Natural Resources v Seaman, 396 Mich 299, 309; 240 NW2d 206 (1976).
Examining the act as a whole, principally §§ 8 through 10, MCLA 123.1008-123.1010; MSA 5.2242(8)-5.2242(10), a certain ambiguity appears. By § 8(1) the Commission is ordered to review petitions for proposed incorporation in light of the criteria of § 9. By contrast, § 10(1) allows the Commission to "deny the proposed incorporation, approve the petition or revise the boundaries of the area proposed for incorporation and approve the proposal as revised” without making a specific reference to the criteria of § 9.
The act may be construed as valid if the criteria of § 9 governed not only the "review” function of § 8(1) but also the decisional function of § 10(1). It would be sheer folly to read the legislation as requiring the Commission to review the petition in light of specific legislative standards but leave the decision after this controlled review to the whim and caprice of the Commission. This is not what the Legislature intended. The criteria of § 9 governed the Commission’s decision under § 10(1). The Commission applied these standards in this case.
IV
Wolverine Lake’s last contention is that the Commission’s action on these petitions is not supported by competent, material and substantial evidence on the whole record.
After examining the whole record, both the evidence in support of the Commission’s ruling and that against it, Michigan Employment Relations Commission v Detroit Symphony Orchestra, Inc, 393 Mich 116; 223 NW2d 283 (1974), it cannot be said that the Commission’s conclusions are unsupported. The testimony of witnesses plus the documentary proof shows that Wolverine Lake cannot remain a viable community, supplying its citizens with the level of services required, unless an additional tax base is acquired. This acquisition can only come with a corresponding detriment to the larger community of which it is a part. The Commission’s decision to create this larger community is supported by the record.
Affirmed. Public question, no costs.
Commerce Township’s petition to the State Boundary Commission did not ask for the boundary adjustment to be made and left unaffected those areas already existing in the Village of Wolverine Lake, the City of Walled Lake, and the City of Wixom.
The Wolverine Lake petition sought incorporation of a new city with a proposed boundary adjustment to include portions of Commerce Township.
The basis of Wolverine Lake’s claim is found in the summary of proceedings, findings of fact and order of the Commission. In the Commerce Township petition order the Commission stated, "28. The Commission finds that it denied the proposed incorporation of the Village of Wolverine Lake on the grounds that it was an integral part of Commerce Township, that it did not favor the proliferation of more and more small communities several square miles in size within the Greater Detroit Metropolitan Area, and that it would not only be harmful to its residents but would be detrimental to the development of the larger community of which it is a part.” In the Wolverine Lake order the Commission stated, "29. The Commission finds that it has not favored the proliferation of more and more small communities several square miles in size within the Greater Detroit Metropolitan Area.”
Seaman also requires that the legislative standards to guide administrative action must be as precise as possible. Wolverine Lake contends there are no standards. If § 9 applies, it supplies sufficient standards.
This is the standard of review for both the circuit court and this Court. Const 1963, art 6, § 28; MCLA 24.306(l)(d); MSA 3.560(206)(l)(d). | [
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Per Curiam.
Defendants were convicted by a jury of armed robbery, contrary to MCLA 750.529; MSA 28.797, and sentenced to a term of from 3-1/2 to 20 years imprisonment. They appeal as of right.
Defendants contend that the trial court erred by denying their motion to dismiss based on the prosecutor’s failure to produce a res gestae witness. We find that the trial court erred in submitting the issue of due diligence to the jury because as a matter of law it could not have found due diligence, People v Yarborough, 61 Mich App 303; 232 NW2d 394 (1975). However, defendants’ requested remedy was an instruction that the jury could draw unfavorable inferences from the prosecutor’s failure to produce the witness. The trial court complied with that request. Defendants did not, thereafter, request further relief. We construe the totality of circumstances as equivalent to a waiver of any previous objection. Defendants were satisfied with this remedy at trial; they cannot now seek alternative forms of relief in this Court.
Defendants next allege that the trial court erred by refusing to grant defendants’ motion for a directed verdict. As the prosecutor produced some evidence establishing each of the three elements of armed robbery, defendants’ motion was properly denied. People v Garcia, 398 Mich 250; 247 NW2d 547 (1976), People v Trotter, 76 Mich App 260; 256 NW2d 585 (1977).
Defendants also challenge the trial court’s decision to direct a more restrictive question to the prospective jury panel at voir dire than that specifically requested by defense counsel. The trial court would not have been inconvenienced to ask the broader question; nevertheless, its refusal cannot be termed an abuse of discretion. People v Harrell, 398 Mich 384; 247 NW2d 829 (1976).
Defendants’ allegation that the trial court erred in its instruction to the jury on the defense of intoxication is frivolous. The instruction was modeled after the Michigan Criminal Jury Instructions on specific intent and the defense of intoxication and clearly satisfies the criteria of People v Crittle, 390 Mich 367; 212 NW2d 196 (1973).
Defendants’ final assertion of error is without merit. Defendant Thompson sought to introduce evidence of his history of alcoholism in order to support his defense of intoxication. The trial court excluded the testimony, stating that the proposed evidence did not tend to support the defendants’ contention that they were intoxicated at the time the offense occurred. Although the question is a close one, we cannot say that the trial court abused its discretion in excluding this testimony. People v Ebejer, 66 Mich App 333; 239 NW2d 604 (1976). The proffered witnesses could not testify regarding the defendants’ state of mind or degree of intoxication on the day of the crime. Since intoxication rather than alcoholism was the defense in this case, it was not unreasonable for the trial court to conclude that such lack of knowledge precluded the possibility of relevant testimony tending to bolster the defense.
Finding no reversible error, we therefore affirm.
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After Remand
J. H. Gillis, J.
Defendant pled guilty to armed robbery, MCLA 750.529; MSA 28.797, and assault with intent to commit rape, MCLA 750.85; MSA 28.280. He was sentenced to terms of from 20 to 40 years for the armed robbery and from 6 to 10 years for the assault. Defendant appealed as of right from the denial of his motion to withdraw his pleas. We remanded this case to the circuit court for an evidentiary hearing in order to determine if the trial judge made a statement that could have been fairly interpreted by the defendant to be a promise of leniency that went unfulfilled. We also retained jurisdiction.
Upon remand, the circuit court found no such promise and denied the motion to withdraw the pleas.
Defendant claims that his pleas were given in exchange for the promise not to sentence him for a term of greater than 20 years. Defendant’s argument must be rejected for two reasons.
First, the record does not support defendant’s contention. Defense counsel admitted that the trial judge would not state a specific number of years as a maximum sentence. In response to defense counsel’s request, the trial judge stated that normally someone convicted of armed robbery would receive a sentence of 15 or 20 years. It was defense counsel’s impression that if defendant pled guilty, he would receive a similar maximum sentence. This was a conclusion based on defense counsel’s own experience rather than a representation by the trial judge. He relayed this false impression to the defendant who relied upon it. A defendant’s mistaken belief that the trial court is going to be lenient in sentencing him upon acceptance of defendant’s plea of guilty is not sufficient reason to set aside the guilty plea. People v Bolden, 78 Mich App 120; 259 NW2d 389 (1977), People v Michael Williams, 36 Mich App 188; 193 NW2d 387 (1971).
Secondly, when a defendant pleads guilty to a criminal charge and then appeals claiming that the plea was based on the defendant’s belief that he had been promised a lesser sentence than the one actually received, the Court of Appeals should not substitute its judgment for that of the circuit court where the circuit court has held an evidentiary hearing and has decided that the plea should be upheld. People v Hall, 399 Mich 288; 249 NW2d 62 (1976), People v Bolden, supra.
Affirmed.
Beasley, J., concurred. | [
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A. E. Keyes, J.
Plaintiff appeals as of right from the entry on May 25, 1976, of a summary judgment in favor of defendants Chambers. In a complaint filed December 11, 1974, plaintiff had alleged that she sustained injuries when she fell after slipping on a piece of sheet-metal-like material in her backyard on December 19, 1971. Plaintiff alleged that the piece of metal was part of a shed belonging to either the Chambers or Woods which had blown down in a storm.
On December 17, 1975, the Chambers moved for summary judgment under GCR 1963, 117.2(3). This motion was supported by affidavits made by the Chambers. Plaintiff responded with an opposing affidavit.
In its opinion granting summary judgment the circuit court noted that defendants’ motion rested on their claim that:
"Their affidavits simply assert that every piece of their shed which was blown away * * * was retrieved and disposed of so that, in effect, they could not have had any causal relationship to Plaintiffs injury * * * . In essence, the Chambers’ motion and affidavits assert that there is lacking an essential element of Plaintiffs claim — causation—and that Plaintiff is unable to supply that missing element.”
As this Court has recently pointed out in Schram v LaRowe, 74 Mich App 555, 556; 254 NW2d 333 (1977), another case involving this very incident:
"Plaintiff fell after slipping on a piece of metal she claims came from defendants’ shed, which had fallen down some time before plaintiffs fall. Defendants claimed that the piece of metal did not and could not have come from their shed. The trial court agreed with the defendants.
"Factual and proximate causation are material facts in a negligence action. Plaintiff alleged that she slipped on a piece of metal that came from defendants’ shed. Defendants denied that the piece of metal came from their shed. There was thus a genuine issue.”
Based solely on the pleadings, therefore, a summary judgment would have been improper. When the moving party supports his motion under GCR 1963, 117.2(3) with affidavits, however, a different result may obtain. Durant v Stahlin, 375 Mich 628, 638; 135 NW2d 392 (1965) reads:
"The basic rule in summary judgment matters is simple. Its application is often difficult. When properly challenged, plaintiff must establish that he has a case on the law and that there are some evidentiary proofs to support his allegations as to any material fact.
"In a summary judgment proceeding, an affidavit is employed as a voluntary statement made ex parte. The function of affidavits by the defendant is to establish affirmatively under oath that there is no basis in fact to support plaintiffs claims. In the case of plaintiffs counter affidavits, they should establish that there is some evidence as to material facts upon which to proceed to trial. There is no question of the relative weight to be given the evidence. The party opposing the motion is given the benefit of all doubt. If he produces some evidence, the motion is denied. * * * .
"Using the language of GCR 1963, 117.3, the question is whether the affidavits 'together with the pleadings, depositions, admissions, and documentary evidence then filed in the action’ present a genuine issue as to any material fact.”
More recently, in Baker v City of Detroit, 73 Mich App 67, 72, 74-75; 250 NW2d 543 (1976), this Court stated:
" * * * two grounds * * * arguably support the grant of summary judgment below, * * * a judge, in ruling on either of the grounds, is not permitted to make factual findings. Thus, if fact-finding occurred, we must reverse.
"Decisional law imposes a duty on a judge hearing a motion for summary judgment grounded on the absence of a genuine issue of material fact to view the facts in a light according every reasonable doubt to the party opposing the motion.”
Therefore, it is clearly improper for the trial court to resolve a disputed factual question in deciding a motion such as the one involved here. Nor is it the trial court’s function to look at the credibility of the parties or to weigh the conflicting evidence. Only if no evidence putting the fact of causation into dispute was forthcoming from the plaintiff, in response to defendants’ motion and affidavits, would the grant of summary judgment have been proper. Here the circuit court stated that:
"If the Court is satisfied, after considering Plaintiffs response to the motion and affidavits, that the proof of the missing element cannot be supplied by Plaintiff because she has not and cannot support her allegations with anything tending to connect the Chambers with her injury, then summary judgment is proper. This Court believes that such is, in fact, the case here. There is nothing in this record to indicate that anyone exists who can testify to any fact which would tend to link the Chambers to the piece of metal on which Plaintiff fell.”
Both parties agree that the Chambers owned a shed which was damaged in a wind storm a few days prior to plaintiffs fall. Plaintiffs affidavit relies in part on the observations of Mrs. John M. LaRose as related in her deposition testimony. Plaintiff does not assert any personal knowledge of where the piece of material upon which she slipped came from. A fair reading of the LaRose deposition does not support an inference that the piece of material came from defendants’ shed. Plaintiff has been unable to produce the piece of material upon which she slipped.
In our view plaintiff has not proffered any admissible evidence which puts causation into dispute, nothing from which a reasonable inference could be drawn supporting plaintiffs claim. This failure to produce any such evidence in response to defendants’ motion under GCR 1963, 117.2(3) is fatal to the plaintiff, and the grant of summary judgment was proper.
Affirmed. Costs to defendants.
Danhof, C. J., concurred.
We note that in the lower court opinion quoted in Schram v LaRowe, supra, at 558, the court imposed a burden of showing negligence by a preponderance of the evidence in deciding on the summary judgment motion. | [
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Per Curiam.
Defendant appeals his plea-based conviction of armed robbery, MCLA 750.529; MSA 28.797, arguing that the lower court failed to advise him of ramifications involving the habitual offender statute and probation or parole violation which attend a plea of guilty. GCR 1963, 785.7(l)(c),(e).
Regarding the habitual offender statute, the defendant can in no way be subject to its penalties since in the plea agreement the prosecutor expressly waived any right to proceed against defendant under the above statute. The prosecutor does not argue otherwise on appeal.
With regard to probation and parole, we note that "Rule 785.7 does not require literal or rote compliance”, Guilty Plea Cases, 395 Mich 96, 119; 235 NW2d 132 (1975), and that at the time of plea taking defendant — by his later admission — knew the effects of a guilty plea:
"THE COURT: Mr. Williams, you are here today for sentencing as a result of you having pled guilty to the crime of armed robbery. Is that correct:
"DEFENDANT: Yes, sir.
"THE COURT: And you understand the maximum for that sentence is life imprisonment?
"DEFENDANT: Yes, sir.
"THE COURT: Now, you understand, it being an armed robbery, that you must go to prison for a period of time, that you cannot go on probation, as I interpret the statute, for a minimum of two years?
"DEFENDANT: Yes.
"THE COURT: Now, were you on parole or probation at the time that you committed this crime?
"DEFENDANT: Yes, sir, I was.
"THE COURT: You understood at the time that you pled guilty that by pleading guilty to this charge you were, of course, confessing an automatic violation of that parole?
"DEFENDANT: Yes.
"THE COURT: And you would be punished for that too?
"DEFENDANT: Yes.
"THE COURT: Pardon?
"DEFENDANT: Yes, sir.”
We hold under the present facts that the lower court substantially complied with GCR 1963, 785.7. Guilty Plea Cases, supra.
Affirmed. | [
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Allen, J.
This appeal raises the basic issue of whether the constitutional protection against unreasonable searches and seizures requires suppression of evidence clearly visible in a backyard garden area where an investigative officer, without first obtaining a warrant, seizes 54 plants of growing marijuana. Defendant was charged with manufacturing marijuana in violation of MCLA 335.341(l)(c); MSA 18.1070(41)(l)(c). Following denial of his • motion to suppress, based upon the Fourth Amendment prohibition against unreasonable searches and seizures, defendant was tried by a jury and found guilty. On July 2, 1976, he was sentenced to one year probation and 15 days imprisonment in the county jail and he appeals as a matter of right.
Facts
Defendant and his family were renters of the lower floor of a two-story house in Holt, Michigan. The upper floor was rented to John Jewett and his family. Adjoining the house, which faced west on Aurelius Road, was a backyard area containing two gardens some 20 to 50 feet apart. The two gardens had been plowed by the landlord who informed the tenants to choose the one each wanted. The Jewett family chose the garden in the north side of the yard and defendant’s family used the south garden. Between the back entrance of the house and the garden was an open lawn area over which one must walk in order to reach the gardens. This area was shared in common by the two tenants. The backyard was enclosed on the north, south and east sides by a fence. In back of the gardens at the rear (east end) of the yard was a large weed patch. On the afternoon of July 23, 1975, following an argument with defendant, Jewett flagged down a cruising patrol car driven by Corporal Robert Siegrist of the Ingham County Sheriff’s Department. After informing the officer that he believed marijuana was growing in his neighbor’s garden, Jewett led the officer into the backyard area for the purpose of investigation. When Siegrist was approximately 15 feet from the Hopko garden he saw what appeared to be a marijuana plant growing at the end of a row of corn and sunflowers. Closer examination disclosed other marijuana plants spaced some 10 to 12 inches apart between the corn and sunflowers. Wishing to confirm his determination, Officer Siegrist telephoned the Tri-County Metro Narcotics Squad for assistance. Within a few minutes Detective Wesley Shaw of the narcotics squad arrived and, upon examining the garden area, found what he concluded to be marijuana growing among the corn and sunflowers in the Hopko garden. Whereupon Officer Siegrist, his suspicions confirmed, cut 54 plants ranging in height from 8 inches to 4-1/2 feet from defendant’s garden. Officer Siegrist continued his on-the-scene investigation by contacting defendant who had remained inside his downstairs apartment during the search and seizure. When asked by Siegrist which garden was his, defendant pointed to the garden from which the marijuana plants were taken. The plants were sent to the State Police Crime Laboratory and were found to be marijuana. Later, a warrant was issued for defendant’s arrest.
Issues
The principal question raised in this appeal is whether a backyard area which is divided into two separate gardens shared by joint tenants as aforesaid is covered by the constitutional search and seizure guarantees. The question is one of first impression in this jurisdiction. Should the answer to this question be "yes”, the people argue that the seizure is still permissible under the "plain view” doctrine — a recognized exception to the rule that a warrant is required. In rebuttal defendant argues that the plain view doctrine is inapplicable since, under this doctrine, the discovery of the evidence must be inadvertent. People v Heard, 65 Mich App 494; 237 NW2d 525 (1975), Coolidge v New Hampshire, 403 US 443, 469; 91 S Ct 2022, 2040; 29 L Ed 2d 564, 585 (1971). Defendant contends that the inadvertence is missing since the officer knew what he was looking for when he entered the backyard area.
In its opinion the trial court noted that if a warrantless search occurred which was not justified under the plain view rule, it still could be validated as a consent search since consent to search defendant’s garden was given by a cotenant. Defendant argues that as to this issue the trial court erred since in cases of "third party consent” it must appear that the person consenting has common authority, viz: mutual use of the property searched. United States v Matlock, 415 US 164, 178; 94 S Ct 988, 997; 39 L Ed 2d 242, 253-254 (1974), People v Flowers, 23 Mich App 523; 179 NW2d 56 (1970). In the present case the record is clear that Jewett had no authority to enter upon or to use defendant’s garden.
The Search
The first standard for determining whether a warrant for a search and seizure is required is whether the individual affected holds a reasonable expectation of privacy in the area searched.
" 'whenever an individual may harbor a reasonable expectation of privacy,” * * * he is entitled to be free from unreasonable governmental intrusion.’ ” United States v Dionisio, 410 US 1, 8; 93 S Ct 764, 769; 35 L Ed 2d 67, 76 (1973).
"[T]here has evolved a test, applied by the courts, to determine whether or not a search, by Fourth Amendment standards, has indeed taken place. Simply put, if an individual has a reasonable expectation of privacy in the area searched, or the materials seized, a search has been conducted. 'What a person knowingly exposes to the public, even in his own home or office, is not a subject of Fourth Amendment protection.’ ” Katz v United States, 389 US 347, 351; 88 S Ct 507; 19 L Ed 2d 576 (1967), cited in People v Whalen, 390 Mich 672, 677; 213 NW2d 116 (1973).
The instant case is unique in that the defendant did not occupy the house or garden alone. Instead, he shared the backyard area with a cotenant. Given these circumstances we conclude that defendant had a qualified but not total expectation of privacy. As to the public in general his expectation of privacy was total. As such, he was protected from any entry by uninvited third parties. We also find that defendant could reasonably expect that his cotenant, sans invitation, would not enter upon defendant’s garden plot or invite others to do so. But we do not believe that defendant could reasonably expect his cotenant to shut his eyes to what could obviously be observed from the cotenant’s garden plot. Nor could he reasonably expect privacy from what invitees of the cotenant could observe, while standing on the cotenant’s garden or that part of the lawn area which was shared in common. Though the Fourth Amendment umbrella would protect defendant from even the co-tenant’s or his invitees’ warrantless entry upon defendant’s own garden for the purpose of digging for suspected buried contraband, its shadow does not extend so wide as to shroud from view 4-foot high plants which could clearly be observed and identified by the cotenant or his invitees from the vantage point of the cotenant’s garden area or the shared-in-common yard area.
Application of this principle of law to the facts in this case leads us to conclude that the defendant’s reasonable expectancy of privacy was in no way violated. The officer did not enter the curtilage uninvited. He came at the request of the cotenant who had every right to invite him to the backyard area. Upon entering the backyard the officer, while still standing upon the lawn area through which it was necessary to walk in order to reach either garden, observed what he believed to be marijuana. The lawn area from which the officer’s observation was made was shared in common by the two tenants. From this vantage point the officer could clearly see at least one 4-1/2 foot marijuana plant extending above the corn and sunflowers. While the defendant had total privacy from an officer’s intrusion onto defendant’s own garden area and then discovering marijuana, he had no privacy from his cotenant Jewett or Jewett’s invitees observing what was clearly visible either from the lawn area or from Jewett’s own garden plot. Therefore, no "search” within the meaning of the Fourth Amendment occurred. People v Whalen, 390 Mich 672; 213 NW2d 116 (1973).
In People v E, 38 App Div 2d 394; 330 NYS2d 3 (1972), aff'd, 30 NY2d 884; 335 NYS2d 435 (1972), the manager of a building containing two separate apartments, while collecting rent from the upstairs, had observed defendants smoking marijuana and had also seen a scale and other drugs. He promptly called the police whom he admitted to the vestibule and staircase. Upon entering the building the officers climbed the stairs finding the apartment door open. Looking through the open door they observed the defendants and, on a table, a scale containing marijuana and marijuana in packages. Without a warrant the officers entered the apartment, confiscated the marijuana and arrested the occupants. The court rejected the defendants’ claim of a Fourth Amendment violation. The similarities between People v E and the instant case are striking. Each involved two separate apartments within a single building. In each, a third party who was entitled to be on the premises, upon first observing what he believed to be a criminal violation, invited the police on the premises. In each, the police, while lawfully upon a part of the premises and without first intruding onto defendant’s property, observed a felony in progress.
Because the prosecution stipulated at trial that the garden from which the plants were removed was within the curtilage of the home, defendant argues that this stipulation per se confers upon him a reasonable expectation of total and exclusive privacy. At least three cases have so held. Vidaurri v Superior Court of San Diego County, 13 Cal App 3d 550, 553; 91 Cal Rptr 704, 706 (1970), Wattenburg v United States, 388 F2d 853, 857-858 (CA 9, 1968), People v Killebrew, 76 Mich App 215; 256 NW2d 581 (1977). These cases are clearly distinguishable. In Vidaurri, an agriculture inspector searching for the Wooly White Fly pest, but without a warrant to search the premises, called at defendant’s single-family home. When no one answered he proceeded to open an unlocked gate and enter the backyard. His look at the citrus trees failed to reveal the insect but he did see what he believed was a marijuana plant, and plucked a leaf. The court held the evidence should be suppressed since the inspector had no authority to enter the premises to search for the pest. In the instant case, the officer was invited on the premises by a cotenant who had every right to take him into the backyard. Furthermore, as is noted in United States v Romano, 388 F Supp 101 (ED Pa, 1975), the advent of the multiple-dwelling units has significantly modified the protections afforded under curtilage.
In Wattenburg, supra, defendants were the owner-occupant and tenant of a motel known as Hideaway Lodge. They had cut from government lands some 1,000 Christmas trees which they placed in a stockpile only 35 feet from the lodge and 5 feet from the parking area used by patrons and employees of the lodge. Without obtaining permission from the lodge owner or any of his employees, government agents moved in cutting "matches” from some of the stockpiled trees to match with stump cuts found on the government lands. The court held that the stockpile was within the curtilage of the Wattenburg home and "therefore, at least as to him, protected by the Fourth Amendment”. Again, we distinguish this case for the reason that, although a multiple dwelling was involved, no one gave the agents authority to enter the motel yard. Had the government agents been invited upon the property by a weekend renter at the motel whose suspicion had been aroused by seeing what was clearly visible, a factual situation similar to the instant case would have been presented.
The Seizure
To this point, we have established that the plants were discovered without a violation of defendant’s Fourth Amendment rights because no "search” occurred. But does it necessarily follow that where no search occurs, a seizure is automatically justified? The landmark case, Coolidge v New Hampshire, 403 US 443; 91 S Ct 2022; 29 L Ed 2d 564 (1971), suggests that something more than "no search involved” is required.
"The limits on the [plain view] doctrine are implicit in the statement of its rationale. The first of these is that plain view alone is never enough to justify the warrantless seizure of evidence. This is simply a corollary of the familiar principle discussed above, that no amount of probable cause can justify a warrantless search or seizure absent 'exigent circumstances’. Incontrovertible testimony of the senses that an incriminating object is on premises belonging to a criminal suspect may establish the fullest possible measure of probable cause. But even where the object is contraband, this Court has repeatedly stated and enforced the basic rule that the police may not enter and make a warrant-less seizure.” (Emphasis in original.) 403 US at 468.
The officer in the present case occupied the same position he would have found himself in if he had made a "plain view” discovery, i.e., he had discovered contraband without conducting a Fourth Amendment "search”. Other cases have modified the restrictions of Coolidge. But, after excluding vehicle and open field warrantless seizures situations, has the law moved so far as to validate a seizure whenever, as here, contraband is discovered without violating a reasonable expectation of privacy? In People v Hunt, supra, the defendant was arrested at the time of the seizure and the seizure was validated as a seizure incident to arrest. However, the recent case of People v Chapman, 73 Mich App 547; 252 NW2d 511 (1977), suggests that, in some circumstances, officers may seize contraband located on private property provided the officers were properly on the private property and the contraband was in obvious sight. In that case, firemen had responded to a fire at defendant’s home. In the course of fighting the fire, the fire chief entered the garage where he saw a deer hanging from a stringer and a doe and buck head lying on cement blocks. Suspecting illegal possession, the chief had one Badder, a fireman and part-time policeman, stand guard while the chief called a conservation officer. When the conservation officer arrived Badder gave him the doe. Defendant’s motion to suppress the evidence on the ground of a prohibited Fourth Amendment seizure was rejected, our Court saying:
"When Badder saw the deer in the garage, what he saw was a possible misdemeanor being committed in his presence. People v Kuntze, 371 Mich 419, 427; 124 NW2d 269 (1963). He had a right to seize the evidence of the crime, and he did so by standing guard at the door and permitting no one to enter the garage. There was no need for him to physically pick up the deer and carry them into the street before turning them over to the conservation officer. Since the deer were in the possession of a police officer when the conservation officer arrived on the scene, no Fourth Amendment violation occurred when they were turned over to him. We conclude that the trial court correctly denied defendant’s motion to suppress.” Chapman, supra, at 553.
We do not go so far as to hold that in every situation where contraband is discovered without a search, a warrantless seizure is permissible. However, we fail to find a meaningful distinction between the instant case and the situation described in Chapman. If the fireman could seize the doe because he saw a possible misdemeanor being committed in his presence, so too could the officer in the present case make a warrantless seizure upon seeing a possible felony being committed in his presence.
We do not base our conclusion upon Chapman alone. One other factor influences our decision. Though marijuana plants, unlike automobiles, do not run away, they are nevertheless quickly removed by pulling them from the ground. Thus, to a certain extent, exigent circumstances existed. Since defendant was present in his downstairs apartment all during the time the two officers were conducting the investigation, the danger existed that had the officers left to obtain a warrant, the defendant could remove the evidence. Although one officer could have remained on guard while the other went for a warrant, such a requirement would be unreasonable on these facts. A similar argument could have been made in Chapman, supra, and People v E, supra.
We hold that the marijuana was discovered without a Fourth Amendment search and that the subsequent warrantless seizure was proper in this case.
Affirmed.
US Const, Am IV, Const 1963, art 1, § 11.
"Plaintiff argues that the plain view exception to the warrant requirement applies here; that is, that the typewriter fell within the plain view of officers who had a right to be in the position to have that view. People v Whalen, 390 Mich 672; 213 NW2d 116 (1973). There are, however, important limitations on the plain view doctrine. Coolidge v New Hampshire, 403 US 443; 91 S Ct 2022; 29 L Ed 2d 564 (1971). The officer, of course, must be lawfully in the position from which evidence comes within his plain view. There are also further limitations. One, plain view alone is never enough to justify the warrantless seizure of evidence — there must be 'exigent circumstances’. Two, the discovery of evidence in plain view must be inadvertent. Coolidge v New Hampshire, supra, People v Harden, 54 Mich App 353; 220 NW2d 785 (1974).” Heard at 498.
The record of trial discloses that about a month before the incident in question, cotenant Jewett had invited his brother-in-law to visit and during such visit the brother-in-law, a garden enthusiast, while standing on Jewett’s garden, observed the plants in question and, after discussion with Jewett, concluded the plants were marijuana.
As has been stated earlier, the officer was some 15 feet distant from defendant’s garden when he first observed what appeared to him to be marijuana.
People v E, supra, also relied upon the fact that marijuana in packages was easily destructible and hence exigent circumstances justified immediate seizure. We would note, however, that in the instant case the marijuana plants could have been easily pulled from the garden by the defendant during the time the police left to secure a warrant. If it be argued that one of the officers in the present case could have remained while the other sought a warrant, so too could one of the two patrolmen in E.
Curtilage has been defined as an enclosed space of ground surrounding a dwelling house. Black’s Law Dictionary (Revised 4th ed), p 460, United States v Romano, 388 F Supp 101, 104 (ED Pa, 1975).
"The concept of curtilage has been significantly modified when applied to a multiple dwelling. The Second Circuit, in United States v Conti, 361 F2d 153, 157 (CA 2, 1966), vacated on other grounds, 390 US 204; 88 S Ct 899; 19 L Ed 2d 1035 (1968), and United States v Miguel, 340 F2d 812, 814 (CA 2, 1965), held that the lobby and hallways of a multiple dwelling, used in common by all the tenants, is not within the curtilage of the individual tenant.” (Emphasis supplied.) United States v Romano, supra, at 104. One Michigan case has reached the opposite conclusion. People v Killebrew, 76 Mich App 215; 256 NW2d 581 (1977). But Killebrew is similarly distinguishable because the police were not voluntarily invited onto the premises.
In two recent decisions by this Court, discovery of contraband on private property was sustained on grounds that since the officers had a right to be where they were and could see contraband in plain view no "search” in Fourth Amendment terms occurred. People v Washington, 77 Mich App 598; 259 NW2d 151 (1977) — discovery of heroin in an apartment by officers responding to a call to render emergency medical aid to the defendant, People v Hunt, 77 Mich App 590; 259 NW2d 147 (1977) — discovery of heroin in a filling station restroom by officers responding to a call from station attendant.
A warrantless seizure of contraband in an automobile in plain view of an officer who was lawfully in place when he first observed the contraband has been upheld partly on the theory that the automobile could be driven away and partly on the rationale an automobile search is less intrusive than a search of one’s person or of a building. Carroll v United States, 267 US 132; 45 S Ct 280; 69 L Ed 543 (1925), Chambers v Maroney, 399 US 42, 49; 90 S Ct 1975, 1980; 26 L Ed 2d 419, 427 (1970), Cardwell v Lewis, 417 US 583; 94 S Ct 2464; 41 L Ed 2d 325 (1974), People v Whalen, 390 Mich 672, 677; 213 NW2d 116 (1973), People v Hunter, 72 Mich App 191; 249 NW2d 351 (1976). Likewise, contraband found in an "open field” as contrasted with the curtilage may be seized without warrant when found in clear view. United States v Pruitt, 464 F2d 494, 496 (CA 9, 1972), Hester v United States, 265 US 57; 44 S Ct 445; 68 L Ed 898 (1924).
See, footnote 8.
Chapman relies upon Harris v United States, 390 US 234; 88 S Ct 992; 19 L Ed 2d 1067 (1968), which stated without qualification that officers could seize anything they lawfully saw. Chapman did not recognize the statement in Coolidge v New Hampshire, supra, that a warrant is required to effect a seizure on private property even if the object is in plain view.
For present purposes, we rely upon this part of Chapman, not its broader assertion that officers may seize anything they lawfully see. See, fn 11, supra. | [
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D. E. Holbrook, Jr., J.
On July 26, 1975, the plaintiff, a passenger on a 1975 Honda two-wheel motorcycle owned and operated by one Walter Miller, was injured when the motorcycle was involved in an accident, there being no other vehicles involved. The plaintiff sues the defendant who is the no-fault automobile insurance carrier on plaintiff’s father’s motor vehicles. Defendant contends that plaintiff may not recover under the provisions of the no-fault insurance statute since MCLA 500.3101(2); MSA 24.13101(2) defines a motor vehicle for no-fault insurance purposes as follows:
" 'Motor vehicle’ as used in this chapter, except for section 3103, means a vehicle, including a trailer, operated or designed for operation upon a public highway by power other than muscular power which has more than 2 wheels.”
Plaintiff contends that this definition and classification is unconstitutional since it excludes motorcycles and therefore constitutes a denial of equal protection of the law under both the 14th Amendment to the United States Constitution and article 1, § 2 of the Michigan Constitution of 1963.
Defendant was granted summary judgment by the trial court based upon its contention as stated above. Plaintiff appeals.
Since the no-fault act, MCLA 500.3101, et seq.; MSA 24.13101 et seq., is reform legislation, Shavers v Attorney General, 65 Mich App 355; 237 NW2d 325 (1975), of a social and economic nature we review plaintiffs claim of lack of equal protection under the "traditional” equal protection test. Manistee Bank & Trust Co v McGowan, 394 Mich 655; 232 NW2d 636 (1975). Under such test the burden is on the person challenging the classification to show that it is without reasonable justification. It has been said that a statutory discrimination will not be set aside if any state of facts reasonably may be conceived to justify it. Moreover, a classification will stand unless it is shown to be "essentially arbitrary”. Few statutes have been found so wanting in rationality as to fail to satisfy the "essentially arbitrary” test. Manistee Bank v McGowan, supra, at 668.
The basic purpose of no-fault is to ensure the compensation of persons injured in automobile accidents. O’Donnell v State Farm Mutual Automobile Insurance Co, 70 Mich App 487, 495; 245 NW2d 801 (1976). The act accomplishes this purpose. Occupants of motor vehicles are protected under MCLA 500.3105; MSA 24.13105 and nonoccupants of motor vehicles under MCLA 500.3115; MSA 24.13115. The only requirement for recovery being that there be a motor vehicle involved in the accident.
A motorcyclist or a passenger on a motorcycle can recover for personal injury if involved in a collision with a motor vehicle but his or her right of recovery is from the insurer of the owner, registrant or operator of the motor vehicle involved in the accident, MCLA 500.3115; MSA 24.13115, and not the motorcyclist’s or passenger’s own automobile insurance carrier. Underhill v Safeco Insurance Co, 76 Mich App 13; 255 NW2d 349 (1976). Here plaintiff seeks to recover from her father’s insurance carrier, which would not be allowed, under the statute, even if there had been an automobile involved in the instant accident.
While motorcycles are not included within the definition of "motor vehicle” in the act, since a motor vehicle is a vehicle having more than two wheels, such exclusion is reasonable and not "essentially arbitrary” in view of the purpose of the act. Not only are all members of the class intended to be protected in fact protected but the exclusion of motorcycles reduces the overall cost of the no-fault program. The latter is a proper legislative motivation and constitutional. Shavers v Attorney General, supra.
Appellant has failed to sustain her burden that the classification is "essentially arbitrary” and does not bear a rational relation to the object of the legislation. We therefore hold that the classifications set forth in MCLA 500.3101(2); MSA 24.13101(2), MCLA 500.3105(1); MSA 24.13105(1), under the "traditional” equal protection test, have a rational basis, are not "essentially arbitrary” and are constitutional. Drivers or passengers of motorcycles involved in single-motorcycle accidents or for that matter those involved in two-motorcycle collisions are not entitled to recover under the no-fault act. Plaintiff is left with her basic tort remedies for damages arising out of the accident.
Affirmed. No costs, constitutionality and interpretation of a statute being involved.
"(1) Under personal protection insurance an insurer is liable to pay benefits for accidental bodily injury arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle, subject to the provisions of this chapter.” | [
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J. H. Gillis, J.
Plaintiff brings this delayed appeal from an order entered on May 12, 1976, by the Circuit Court of Isabella County finding no cause of action on his complaint.
Plaintiff sold defendant a business known as the Avalon Bar located in Mt. Pleasant in October of 1968. The building which housed the bar and the land upon which it was situated were sold pursuant to a land contract. The business entity, inventory and liquor license were transferred under a bill of sale accompanied by a note and security agreement.
Defendant fell in arrears in his payments on the land contract and plaintiff recovered possession of the property through district court summary proceedings in July of 1975.
Plaintiff then requested the defendant to reassign the liquor license that was sold with the business in accordance with the security agreement executed between the parties. Defendant refused to do so. Accordingly, plaintiff commenced an equitable action in circuit court to compel the defendant to reassign the liquor license to him. Defendant answered the action by claiming that the land contract and the bill of sale along with the security agreement were one transaction, and an action on one was an action on both. Therefore plaintiff had made an election of remedies by declaring the contract forfeited in the district court proceedings, and was precluded from bringing any further actions on the forfeited contract.
In support of his contention, defendant relies on MCLA 600.5750; MSA 27A.5750 and Gruskin v Fisher, 70 Mich App 117; 245 NW2d 427 (1976), which held that MCLA 600.5750 contains no clear and expressed legislative intention to abrogate the common-law rule that a vendor after declaring a forfeiture of a land contract may not subsequently resort to remedies which affirm the contract and seek to recover under it.
The circuit court adopted defendant’s position and ordered the plaintiffs complaint dismissed.
Plaintiff appeals this order contending there were two contracts involved: 1) a land contract for the sale of the real property, and 2) a bill of sale accompanied by a note and a security agreement for the sale of the business, inventory and liquor license. Hence, an action on the later contract would not be barred by earlier action on the former contract.
In order to decide the question presented, we must determine how many contracts evolved from the sale.
A review of the record reveals that the following agreements were presented into evidence:
1) A preliminary sales agreement describing the terms of the sale,
2) A land contract calling for the sale of the property and the building attached thereto,
3) A bill of sale for the personal property subject to a security agreement,
4) A security agreement which covers the personal property listed in (3), which also contains the following provision:
"AS A FURTHER CONSIDERATION for the Bill of Sale the debtors agree that in the event of default of the conditions of the payment herein or in the Land Contract executed by the parties simultaneously herewith, they will re-assign to the sellers all interest in the SDM and Tavern licenses, or any extensions or renewals thereof with the approval of the Michigan Liquor Control Commission.”
These agreements are tied together by mutual default clauses and by the fact that they do arise from the same transaction. These facts do not establish that only one contract was contemplated and executed by the parties. On their face, the documents presented are separate and distinct contracts, one for the sale of real property, and one for the sale of personalty. To conclude other wise would violate the clear written intent of the parties.
Based upon the practicalities of the situation, it is quite clear that the plaintiff bargained for the reassignment provision to avoid being left in the undesirable position of owning the land, building and bar fixtures without a liquor license. Such a provision is clearly authorized by MCLA 440.9501; MSA 19.9501. This statute has been construed by this Court in Michigan National Bank v Marston, 29 Mich App 99; 185 NW2d 47 (1970), where it was held that the Uniform Commercial Code, as adopted in the state, was intended to broaden the options open to a creditor after default rather than to limit them under the old theory of election of remedies.
Accordingly, we conclude that the parties intended to, and did in fact, enter into two separate agreements in effectuating the sale of the Avalon Bar. The summary proceedings resulting in the forfeiture of the land contract did not bar a subsequent action on the bill of sale, promissory note and security agreement. The trial court erred in failing to entertain plaintiff’s suit.
Reversed and remanded for proceedings consistent with this opinion. Costs to appellant.
The security agreement provisions read as follows:
"A Land Contract of even date is executed between the parties covering land and the building in which are located the property described in this Security Agreement and it is agreed that a default in the payment of any sums due under the terms of said Land Contract shall be considered as a default under the terms of this Security Agreement, and it is further agreed that this Security Agreement will remain in full force and effect until full payment of principal and interest under the terms of said Land Contract.”
The land contract contained the following clause:
“The Buyer shall have possession of the premises above described under this contract on October 4th, 1968, and shall be entitled to retain possession thereof only so long as there is no default on his part in carrying out the terms and conditions hereof plus the terms and conditions of a certain Security Agreement of even date executed between the parties hereto and covering the items of property other than real property involved in the sale of the business operation known as the Avalon Bar in Mount Pleasant, Michigan.”
The preliminary sales agreement contained the following paragraph:
"It is expressly agreed by the parties hereto that any default under either promissory note mentioned herein or under the Land Contract to be entered into, shall constitute default on both of the others, irrespective of the fact that any grace period on one or the other may not have expired, and the Seller may, under the terms of the notes, declare the entire remaining balance due and look to their security and take such other action as is necessary to obtain possession of the premises. In the event of default, the Buyer agrees to execute such documents as shall be necessary to re-assign all liquor licenses to Seller.”
MCLA 440.9501; MSA 19.9501 reads:
"When a debtor is in default under a security agreement, a secured party has the rights and remedies provided in this part and except as limited by subsection (3) those provided in the security agreement. He may reduce his claim to judgment, foreclose or otherwise enforce the security interest by any available judicial procedure. If the collateral is documents the secured party may proceed either as to the documents, or as to the goods covered thereby. A secured party in possession has the rights, remedies and duties provided in section 9207. The rights and remedies referred to in this subsection are cumulative.” (Emphasis added.) | [
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Per Curiam.
Plaintiff, although temporarily unemployed at the time of his May 22, 1974, automobile accident, filed for work loss benefits under his no-fault insurance policy with defendant. Defendant denied the claim. In circuit court, briefs were filed both on the meaning of the applicable section of the original no-fault statute and on the retroactivity of an amendment to the section here involved. The trial court granted summary judgment to the defendant based on a holding that the amendment did not apply retroactively. Plaintiff appeals as of right, and we reverse and remand for further proceedings.
The facts are not in dispute. Plaintiff was covered by an insurance policy issued by defendant which included work loss coverage as required by the statute. The May 22, 1974, automobile accident resulted in plaintiff, a passenger, receiving disabling injuries such that, until January, 1975, he was unable to drive a truck. Formerly plaintiff had been employed as a truck driver, but he had been laid off at the time of the accident. Wages and prior earnings also are not disputed. The sole question is plaintiffs eligibility.
The original statutory provision in regard to work loss benefits was, in pertinent part, as follows:
"Work loss consisting of loss of income from work an injured person would have performed during the first 3 years after the date of the accident if he had not been injured and expenses not exceeding $20.00 per day, reasonably incurred in obtaining ordinary and necessary services in lieu of those that, if he had not been injured, an injured person would have performed during the first 3 years after the date of the accident, not for income but for the benefit of himself or of his dependent.”
This quoted language gives rise to the first issue. Both sides agree that this language is patterned in large part on the uniform motor vehicle reparation act. The drafters of the uniform act made clear their intentions regarding § 3107 as follows:
" 'Work loss’, as are the other components of loss, is restricted to accrued loss, and thus covers only actual loss of earnings as contrasted to loss of earning capacity. Thus, an unemployed person suffers no work loss from injury until the time he would have been employed but for his injury.”
Ordinarily, we would assume the Michigan Leg islature, in adopting the language of the uniform act, was familiar with the intention ascribed by the drafters and would conclude that § 3107(b) did not initially cover unemployed workers, at least until they returned to work. However, the subsequent legislative history of the amendment to the Michigan statute casts doubt upon this assumption.
When questions arose as to the desirability of excluding from coverage those temporarily unemployed, the Legislature, with promptness, undertook hearings preliminary to amending the statute. In the legislative analysis dated November 21, 1975, which accompanied House Bill 4221, which is the amendment to the provision in question, the following appears:
"However, there is no concise definition of 'loss of income’ in the law.
"This has given rise to certain problems in connection with persons who are seasonally employed or temporarily unemployed as a result of lay-offs, and who are disabled as a result of an auto accident. In the case of a worker who is unemployed at the time of an accident or during the period of disability, the law might be construed as providing for no work loss benefits since the worker would have had no income at that time, had he/ she not been injured. In addition, disabled workers are not entitled to unemployment compensation since benefits are not payable to a person who is unable to work. An unemployed worker who is disabled in an auto accident may thus find him/herself without benefits of either sort.
"The manner in which the Bill addresses itself to the problem:
"The Bill would clarify procedures for calculating work loss benefits for an injured person who is temporarily unemployed at the time of the accident or during the period of disability. The calculation of work loss benefits would be based upon earned income for the last month employed full-time preceding the accident.”
In addition, the same analysis noted that an argument against the amendment was the fact that it was unnecessary because some insurers were already paying benefits to persons unemployed at the time of the injury.
Thus, ascertaining the legislative intent is a difficult question in this case. As a general rule, legislative intent is determined as of the time of original passage rather than at the time of an amendment. However, an amendment enacted soon after controversies arise in regard to a statute can be taken as a legislative interpretation of the original act rather than as a substantial change of it. In view of the alacrity with which the Legislature enacted the amendment, we would believe that failure to include the language of the amendment in the original § 3107(b) was largely an oversight. The amendment provides as follows:
"Sec. 3107a. Subject to the provisions of Section 3107(b), work loss for an injured person who is temporarily unemployed at the time of the accident or during the period of disability shall be based on earned income for the last month employed full time preceding the accident.”
Thus, if it was an oversight, we would be inclined to believe the Legislature intended the amendment (§ 3107a) to have retroactive effect to the effective date of the no-fault statute. In so ruling, it becomes unnecessary to reach a decision regarding the meaning of the original statute. Consequently, we apply the measure contained in the amendment to determine appellant’s benefits.
Reversed and remanded for proceedings consistent with this opinion.
MCLA 500.3107(a), (b); MSA 24.13107(a), (b), effective October 1, 1973.
MCLA 500.3107a; MSA 24.13107(1) (1975 PA 311, effective December 22, 1975).
MCLA 500.3105; MSA 24.13105; MCLA 500.3107; MSA 24.13107.
MCLA 500.3107(b); MSA 24.13107(b).
13 Uniform Laws Annotated 358, 362; comments to § l(5)(ii) of the uniform act. The language of § l(5)(ii) of the uniform act is almost verbatim with § 500.3107(b) of the Michigan no-fault statute.
Second Analysis of House Bill 4221 (as passed by House), dated November 21, 1975.
Detroit Edison Co v Department of Revenue, 320 Mich 506; 31 NW2d 809 (1948).
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M. J. Kelly, J.
Two cases are consolidated for this appeal.
Initially, plaintiff appeals by leave granted (Docket No. 77-41) from a November 3, 1976, Oakland County Circuit Court order that defendants refer plaintiff’s application for a Class C liquor license to the planning commission and police department, and then to reconsider the application. This Court on April 11, 1977, restrained defendants from depleting the remaining quota of available liquor licenses pending further order of the Court.
Plaintiff also appeals from the trial court’s final order of June 9, 1977 (Docket #77-2411) dismissing plaintiff’s complaint for superintending control. This Court ordered the cases (77-41 & 77-2411) consolidated on July 7, 1977. The parties raise no issues in case No. 77-2411 that were not raised in case No. 77-41.
On June 27, 1975, plaintiff applied to the Michigan Liquor Control Commission (MLCC) for a Class C liquor license to be used at its Orchard Mall location in West Bloomfield Township. This application was referred by the MLCC to the West Bloomfield Township Board for its consideration.
The. board resolution outlining procedures for license determinations provides that the board shall refer all applications to the planning commission and the police department before reaching a decision. At trial, the township clerk testified that plaintiff’s application had never been referred to the planning commission or to the police department. The attorney for the township, however, stipulated that the planning commission and the police department would not have objected to approval of the application. Local approval was ultimately denied.
The township clerk further testified that the basis for the decision was that there was already one establishment in the mall which had a liquor license. It was also the consensus of the seven board members that there were already too many licensed establishments in the area. She admitted that the "one license per mall” policy was not contained in the township resolution and that no study had been done to support the reasonableness of such a policy. According to the concise statement of facts, approval was denied because the area in and around the mall was "saturated” with taverns and bars. Only two establishments in the area had Class C licenses in June of 1975.
In June of 1976 the plaintiff reapplied, this time for a "tavern” license. Once again, the application was referred to the West Bloomfield Township Board. On July 20, 1976, the chairman of the township liquor license committee informed the plaintiff that the "one license per mall” policy had not changed. The board was also concerned about the concentration of taverns and bars in any given area of the township and felt that the intersection where Orchard Mall is located "had reached the saturation point”. Plaintiff’s attorneys appeared before the township board on September 7, 1976. Their attempt to seek review of the denial resulted in a reaffirmation of the denial.
On May 2, 1977, the township adopted new "liquor establishment requirements” with regard to local approval of liquor licenses. On May 18, 1977, plaintiff’s original application again came before the board after being referred to the planning commission and police department in compliance with the lower court order of November 3, 1976. The application was denied a second time.
After denying plaintiff’s original application, the board approved the transfer of an existing Class C license to Bloomfield Charlie’s which bordered Orchard Mall. Also approved after June of 1975 was the granting of a new license to a bowling alley south of the Maple-Orchard Lake intersection, plaintiff being north. The application for the bowling alley had been submitted in 1972.
On appeal plaintiff challenges the township board resolution, which provides that the board shall have unlimited discretion concerning the approval of a new liquor license, as unconstitutionally overbroad. Furthermore, plaintiff claims the township board acted arbitrarily and capriciously in disapproving its application.
The Michigan Supreme Court has stated:
"[T]he power of the local communities to control alcoholic beverage traffic is extremely broad but does not permit local legislative bodies to act arbitrarily and capriciously and further, when the local bodies conduct themselves in such a manner their actions are reviewable by the courts.”
Bundo v Walled Lake, 395 Mich 679, 700-701; 238 NW2d 154, 164 (1976). See MCLA 436.17; MSA 18.988. Plaintiff, however, must establish a showing of an abuse of discretion or an arbitrary exercise of power on the part of the township board. 395 Mich at 701.
The phrase "one license per mall” is impermissibly vague since what constitutes a mall is not defined. Furthermore, the township was required to publish the resolution under MCLA 42.8; MSA 5.46(8), and failed to do so. Cf. Mallchok v Liquor Control Commission, 72 Mich App 341; 249 NW2d 415 (1976). A record or certified copy of a published resolution would have provided "prima facie evidence of the existence and validity of such * * * resolution * * * ”. MCLA 600.2116; MSA 27A.2116. Since the township has failed to publish as required by law, we hold it has failed to establish a prima facie case of the existence and validity of the resolution. The failure to publish renders the resolution ineffective.
The township denied the instant license relying on the resolution and also because the area had become "saturated”. There is no evidence concerning what constitutes a saturated area. We, therefore, reverse and remand the case for further proceedings before the township board, and if denial results, for the board to provide a statement of reasons for denial of the license other than the "one license per mall” argument, and for a definition of "saturated area”.
On remand, the board does not have to justify further the two liquor licenses which were given to other establishments in the same area after plaintiff was denied a license. The license given to Bloomfield Charlie’s, aside from not being within the same mall, was a transfer of an existing license, and, therefore, inapplicable to the instant issue.
Furthermore, the liquor license granted to the bowling alley, some distance away from the Orchard Mall, was applied for by the bowling alley prior to plaintiff’s instant application. The granting of that license also has little bearing on this case.
Reversed and remanded. Costs to the prevailing party on remand.
D. E. Holbrook, Jr., J., concurred. | [
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Per Curiam.
Defendant was convicted by a jury of carnal knowledge of a female over the age of 16 under the old rape statute, MCLA 750.520; MSA 28.788. The offense involved the alleged rape of a downtown Detroit motel lifeguard on February 2, 1975. Defendant was sentenced to a term of not less than 24 nor more than 30 years in prison. He appeals as of right.
Defendant first claims that where, at preliminary examination, the magistrate suppresses a pretrial photographic show-up and a corporeal lineup, that it is error for the trial court to admit such evidence at trial.
The record indicates that the trial court ruled fully on the objection when it was raised by defendant at trial, as follows:
"The Court is satisfied that a full reading of the Examination transcript makes it plain that Judge Heading was asking each side whether they wanted it suppressed or not on the motion of Mr. Feinberg. And that his words, when he first inquired was, 'Do you want that testimony suppressed now or not?’ And the Defense indicated that it did. The prosecution originally objected. The Court indicated, 'Well, now the testimony is in Court. She pointed him out. There is the man.’ The Court went on to say that she identified him in Court without the show-up. He asked the Prosecutor, 'Do you want the show-up in or out?’ The Prosecutor said, 'It doesn’t matter.’ The Court said to Mr. Feinberg, 'Do you want it suppressed?’ Mr. Feinberg said, 'Yes.’ The Court said, 'All right. It is suppressed.’ And went on to bind the Defendant over based upon the in-court identification.
"I think that what’s clear from the examination transcript is that Judge Heading suppressed it for purposes of his decision and that he did not rely upon it. I think that it is more than foolish for anyone to think that the somewhat cavalier manner in which it was handled at the Examination is in any way an order to suppress the line-up identification for purposes of trial. I think that Michigan law is clear that a motion to suppress has to be brought prior to trial. There’s been no motion before me. There’s no order in the file indicating that the line-up is suppressed for purposes of trial. And I think for counsel to have relied upon that rather spur of the moment decision by the Examining Magistrate is misguided to say the least. And certainly this Court is not bound by that there having been no further motions or hearings or orders. The objection is overruled.”
Careful reading of the preliminary examination transcript indicates that defendant is wrong in claiming suppression of the photographic show-up; no objection was raised at preliminary examination to the photographic show-up evidence. It seems clear that neither did the examining magistrate intend nor did defense counsel believe that the photographic show-up evidence had been suppressed.
With respect to the corporeal lineup, careful review of the preliminary examination transcript does not indicate that the question of admissibility of the corporeal lineup evidence was fully and fairly presented. As the trial court noted, treatment of that question was rather cavalier. The admissibility of the corporeal lineup evidence was not fully and fairly presented for determination at the preliminary examination. Consequently, we find no error in admission of this evidence by the trial court.
Further support for denying defendant’s claim for reversal in this connection is the fact that there was no motion before trial to suppress the lineup evidence. Although at trial, defense counsel claimed that he was unfairly surprised and prejudiced by the refusal of the trial court to apply the alleged ruling of the magistrate, the record indicates that he did not seek an adjournment to afford additional time to prepare this defense, even though earlier in the proceedings the trial court had indicated a willingness to adjourn the trial for some three weeks so that notice of an alleged alibi defense could be given. We conclude that the trial court did not err in finding that it was not bound by the alleged decision of the magistrate.
Defendant also claims that he was improperly denied assistance of counsel at both the pretrial photographic show-up and the corporeal lineup and that the procedures followed in both instances were so impermissibly suggestive as to taint the in-court identification of defendant and to make admission of such evidence reversible error. Review of the record does not indicate any challenge to the photo show-up previous to the preliminary examination, during preliminary examination, nor any pretrial motion to suppress the photo show-up identification. In fact, the first challenge to the photo show-up is raised on appeal. Therefore, the issue has not been preserved for appeal. Furthermore, the record indicates that attempts were made by the police to contact defendant for the purpose of having him appear for a corporeal lineup. When no response was made, the photo show-up was held instead. This was at a time when defendant was not in custody. Under these circumstances, he had no right to be represented by counsel at that show-up procedure and, further, there has been no showing that the procedure followed at the photo show-up was impermissibly suggestive. His claim of error as to the photo show-up is without merit.
As to defendant’s claim that he was denied assistance of counsel at the corporeal lineup, that claim is not supported by the record. The claim was first raised following trial. Trial counsel for defendant at no time, during preliminary examination or at trial, claimed that he had been excluded from the lineup. Furthermore, there is in the court file a voucher for expenses which indicates a charge for an appearance by appointed counsel at the lineup.
We also hold, considering the totality of the circumstances, that defendant’s claim that the lineup procedure was improper, where defendant was the only participant in the lineup whose photo had been included in a previous photo show-up, is without merit.
Defendant also claims that the trial court erred in not sua sponte granting an adjournment so that a notice of alibi defense could be given.
The record indicates clearly that the trial court recognized his discretion to grant an adjournment. It does not indicate that an adjournment was requested. We hold that the trial court was not required sua sponte to grant an adjournment where defendant was offered the opportunity to request an adjournment and failed to do so.
Defendant next contends that it was an abuse of the trial court’s discretion to refuse to grant a jury request to rehear certain portions of testimony.
The jury requested: "Original testimony from Plaintiff [complaining witness] on the description of the accused.” The trial court was uncertain what the jury wanted. He noted that the complaining witness’s testimony had included at "a mini mal number” probably "four or five references” pertaining to descriptions.
Both counsel concurred in the trial court’s feeling that the request should be denied at that time, with the understanding that if the jury could not resolve the matter among themselves, they could repeat the request later. The trial court told the jury:
"Members of the jury, you’ve requested that some testimony be repeated for you. At this time I’m denying your request and asking that you try to resolve the matter among yourselves. And I’m doing so because I don’t wish to highlight part of the testimony to the exclusion of other testimony. So, I’ll ask that you please do your best.”
As a general rule, both the reading of testimony to a deliberating jury in response to its request and the extent of the reading are matters within the discretion of the trial court. However, that discretion is limited somewhat by People v Howe, 392 Mich 670; 221 NW2d 350 (1974), in which it was held that a trial court must exercise its discretion to assure fairness, refusing only unreasonable requests, and that the trial court cannot refuse to grant a jury’s request simply for fear of unduly emphasizing the testimony of one witness. The Howe Court also held that the jury must be informed that their request would again be considered if they continued to find it necessary to rehear the testimony.
It appears from the record in the instant case that the trial court found that the jury’s request was ambiguous and asked for too much and was, therefore, unreasonable. For that reason he denied it. That he did not intend to foreclose a repeat of the request is evidenced by his remarks to trial counsel that: "If they come back with a like request at a later point my inclination at this juncture would be to then seek to have them pinpoint what they’re asking for and see if I think we can fairly respond or not.” We note also that trial counsel for defendant agreed to this approach.
The trial court told the jury that "at this time” he was denying their request and that they should "try to resolve the matter” among themselves. This was an indication to the jury that they could again raise the matter if they were unable to resolve the problem among themselves.
Finally, defendant claims that certain conduct of the prosecutor deprived defendant of a fair trial and resulted in reversible error. We do not agree.
Affirmed.
In People v Gray, 393 Mich 1; 222 NW2d 515 (1974), the Supreme Court said that where a Walker hearing was held, no good purpose is served by relitigating the question of voluntariness if that matter has been fully and fairly presented for determination.
People v Palmer, 47 Mich App 512, 515-516; 209 NW2d 710 (1973).
People v Morton, 77 Mich App 240; 258 NW2d 193 (1977).
Klein v Waggenheim, 379 Mich 558; 153 NW2d 663 (1967), People v Walker, 371 Mich 599; 124 NW2d 761 (1963).
Kelin v Waggenheim, supra, fn 4. | [
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Bashara, P. J.
Plaintiff appeals from a trial court judgment granting injunctive relief against defendant, prohibiting pertain conduct alleged by plaintiff to be in violation of the Michigan Liquor Control Act. The contention of plaintiff is that the scope of the injunction’s prohibition does not enjoin all of the defendant’s allegedly unlawful conduct.
Defendant cross-appeals from the judgment. Its primary contention is that plaintiff lacked standing to maintain the action for injunctive relief. To sustain the argument, defendant asserts that plaintiff lacks any interest affected by the alleged unlawful conduct, and that plaintiff has failed to establish any basis upon which equity jurisdiction can be founded. Additionally, defendant contends that the conduct of which plaintiff complains is not violative of § 26c of the act.
This case was submitted to the trial court by stipulation of facts, which were adopted by the trial court. Those facts disclose that the defendant is in the business of operating a catering hall. That facility is rented to various persons and organizations for use in holding wedding receptions, banquets, and similar social gatherings. As part of its business services to those lessees, defendant provides food, a bartender, and assorted nonalcoholic beverages, some of which are used in conjunction with liquor, for an agreed upon price per person.
Any alcoholic beverages consumed on defendant’s premises by the lessees or their guests are furnished by the lessees. The lessees purchase the liquor, not from defendant, but from licensees under the act. Defendant does not sell liquor, derives no profit from its sale by others, nor is it licensed to do so under the act.
Proceedings were initiated by plaintiff, a nonprofit corporation whose members are licensees under the act, to enjoin the operation of defend ant’s business insofar as it permitted the consumption of liquor on its premises. Suit was predicated upon allegations that such business activity violates § 26c of the act and injures the property rights of plaintiffs members in their liquor licenses.
Initially, we analyze the defendant’s contentions relative to plaintiffs standing to maintain the action and the existence of a basis for equity jurisdiction.
In the context of this case questions of standing and jurisdiction are closely related. Indeed, much of defendant’s argument denominated as pertinent to standing is actually aimed at the existence of equity jurisdiction. Therefore, the distinction should be clarified.
Standing is the legal term used to denote the existence of a party’s interest in the outcome of the litigation; an interest that will assure sincere and vigorous advocacy. Sierra Club v Morton, 405 US 727, 731-732; 92 S Ct 1361, 1364; 31 L Ed 2d 636, 641 (1972). Conceptually, standing was adeptly described by the Sierra Club Court in the following terminology:
"Whether a party has a sufficient stake in an otherwise justiciable controversy to obtain judicial resolution of that controversy is what has traditionally been referred to as the question of standing to sue. * * * [T]he question of standing depends upon whether the party has alleged such a 'personal stake in the outcome of the controversy,’ Baker v Carr, 369 US 186, 204, 82 S Ct 691, 703, 7 L Ed 2d 663, as to ensure that 'the dispute sought to be adjudicated will be presented in an adversary context and in a form historically viewed as capable of judicial resolution.’ Flast v Cohen, 392 US 83; 101, 88 S Ct 1942, 1953; 20 L Ed 2d 947.” Id.
See also Warth v Seldin, 422 US 490, 499; 95 S Ct 2197, 2205; 45 L Ed 2d 343, 354 (1975), and United States v SCRAP, 412 US 669, 687; 93 S Ct 2405, 2416; 37 L Ed 2d 254, 269 (1973).
Accordingly, the threshold question is whether plaintiff has an interest in the outcome of this litigation sufficient to invoke the controversy-resolving powers of the judiciary. The stipulation of facts discloses that plaintiff does not have a liquor license, nor is it engaged in any commercial activity that will be affected by the outcome of this litigation. As a corporation, a separate legal entity, plaintiff possesses no interest that we are able to discern that confers upon it the requisite standing to maintain this action.
Relying upon White Lake Improvement Assoc v City of Whitehall, 22 Mich App 262; 177 NW2d 473 (1970), plaintiff asserts that the commercial interests of its members constitute a sufficient basis to conclude that it has standing as a representative. In the White Lake case a non-profit corporation was held to have standing to represent its riparian landowner-members in a suit to enjoin the pollution of a lake. Id. at 271-274. This conclusion was obtained notwithstanding that the association itself was not a riparian landowner.
A circumstance in the White Lake case that distinguishes it from the facts before us is that the association in the former was constituted for solely representative purposes. Id. at 272; 177 NW2d at 477. In the case under review the facts indicate that plaintiff’s corporate purpose is unrelated to that of a litigation representative. Further, the cases upon which White Lake was premised involved associations that acted as a class representative or sought to establish rights in which they had a direct interest, or without which their existence would terminate. None of these factors characterize plaintiffs position in the instant litigation.
More importantly, since economic utilization of judicial resources is a principal objective of representative litigation, it becomes paramount that the outcome of the adjudication be binding upon those represented. Consistent with our conception of procedural due process, this imports that those whose rights are to be determined by litigation be given notice of its pendency and an opportunity to participate personally or through a class representative. See, e.g., Mullane v Central Hanover Bank & Trust Co, 339 US 306, 313; 70 S Ct 652, 656; 94 L Ed 865, 872-873 (1950).
The stipulation of facts indicates that plaintiff does not know whether any of its members has knowledge of the pendency of this litigation. Concomitantly, if plaintiff seeks to adjudicate the alleged property interests of its members by this action, the binding effect upon its members under the foregoing principle would be tenuous, at best. Consequently, since the plaintiff has neither a direct interest in the cause of action nor a properly constituted representative position, we must conclude that the requisite standing to pursue this litigation is absent.
Should plaintiff establish standing to maintain this action by assuming a proper representative status, under the facts shown by the record, equitable relief would nevertheless remain unavailable. Such result would obtain because of the absence of any grounds upon which the invocation of equity jurisdiction can be founded. Even if a party has standing to maintain a suit for injunctive relief, he must additionally allege and establish a basis for equity jurisdiction.
Violations of the act are, by the terms of § 50, deemed to be crimes. As a well-established general rule, only in the cases of public or private nui sanee or injury to property rights will equity jurisdiction be available to enjoin criminal violations. See e.g. State ex rel Washtenaw County Prosecuting Attorney v Western Union Telegraph Co, 336 Mich 84, 90; 57 NW2d 537, 540 (1953), Glover v Malloska, 238 Mich 216, 220; 213 NW 107, 108 (1927), Village of St Johns v McFarlan, 33 Mich 72; 20 AR 671 (1875). No allegations of nuisánce were made by plaintiff, nor does the act declare violations to be a nuisance. However, the interests of plaintiff’s members in their liquor licenses may constitute sufficient property rights to invoke equity jurisdiction. But we need not decide that issue.
Assuming, arguendo, the existence of. standing and property rights, the record is devoid of any evidentiary basis for finding that defendant’s alleged violations of the act resulted in any injury to those interests. Mere conclusory allegations are insufficient. Plaintiff must show, as a pre-condition to obtaining equitable relief, that the injury was "directly traceable” to the alleged unlawful conduct of defendant. Glover v Malloska, supra at 221.
This requirement of direct traceability was reasserted in United-Detroit Theaters Corp v Colonial Theatrical Enterprise Inc, 280 Mich 425, 430-431; 273 NW 756, 757 (1937). There, the Supreme Court reversed an order for injunctive relief because the record failed to show an injury to plaintiff’s property interest in their business. Id.
Accordingly, we conclude that the trial court erred in granting injunctive relief to the plaintiff. Further, it is our conclusion that the action should have been dismissed because plaintiff lacked standing to maintain the suit. Consequently, we need not reach an evaluation of the trial court’s interpretation of § 26c of the act.
Reversed and dismissed. Costs to defendant.
D. E. Holbrook, J., concurred.
MCLA 436.1, et seq; MSA 18.971, et seq.
MCLA 436.26c; MSA 18.997(3). This section states as follows:
"No person shall maintain, operate, lease or otherwise furnish to other persons any premises or place which is not licensed under this act, wherein such other persons may engage in the drinking of alcoholic beverages, for a fee or for any other consideration including the sale of food, mixers, ice or other fluids used with alcoholic drinks or the storage of alcoholic liquors: Provided, That the provisions of this section shall not apply to any hotel nor to any licensee under the provisions of this act: Provided further, That the provisions of this section shall not be construed to repeal or amend the provisions of section 26b of this act.”
Plaintiffs corporate purpose is stated in its articles of incorporation to be as follows:
"Article II — The purpose or purposes of this corporation are as follows: The purpose of educating licensees of the Michigan Liquor Control Commission as to their responsibilities to the public from a moral, ethical and civic standpoint of view and for the purpose of mutual benefit that accrues from such an understanding.”
See White Lake Improvement Assoc v City of Whitehall, 22 Mich App 262, 273-274 and fn 12 and 14; 177 NW2d 473, 477-478 (1970).
For example, in the cases reported in White Lake, at 274, fn 14 the association brought suit as a class action in Smith v Board of Education of Morrilton School District No 32, 365 F2d 770, 777 (CA 8, 1966), and litigated rights essential to its organizational existence or in which it had a direct interest, in the cases of Louisiana v NAACP, 366 US 293, 294; 81 S Ct 1333, 1334; 6 L Ed 2d 301, 303 (1961), and NAACP v Button, 371 US 415, 428-429; 83 S Ct 328, 335; 9 L Ed 2d 405, 415 (1963), respectively. See also NAACP v Alabama, 357 US 449, 459; 78 S Ct 1163, 1170; 2 L Ed 2d 1488, 1489 (1958).
One means of instituting representative litigation is provided by the court rule governing class actions. See GCR 1963, 208. This rule enables the court to assure that all those who are to be bound by the judgment receive proper notice of the litigation. Rule 208.4 provides:
"Protective Orders. The court at any stage of an action under sub-rules 208.1 or 208.2 may require such security and impose such terms as shall fairly and adequately protect the interests of the class or association in whose behalf the action is brought or defended. It may order that notice be given, in such manner as it may direct, of the pendency of the action, of a proposed settlement of entry of judgment, or any other proceedings in the action, including notice to the absent persons that they may come and present claims and defenses if they so desire. Whenever the representation appears to the court inadequate fairly to protect the interests of absent persons who may be bound by the judgment, the court may at any time prior to judgment order an amendment of the pleadings, eliminating therefrom all reference to representation of absent persons, and the court shall order entry of judgment in such form as to affect only the parties to the action and those adequately represented.”
MCLA 436.50; MSA 18.1021, which states as follows:
"PENALTIES. Any person, other than persons required to be licensed under this act, who shall violate any of the provisions of this act shall be guilty of a misdemeanor.
"Any licensee who shall violate any of the provisions of this act, or any rule or regulation of the commission promulgated hereunder, shall be guilty of a misdemeanor, punishable by imprisonment in the county jail not more than 6 months or by a fine of not more than 500 dollars, or both, in the discretion of the court.
"Any person, who shall do any act for which a license is required under this act without first obtaining said license or any person who shall sell any alcoholic liquor in any county which shall have prohibited the sale of alcoholic liquor under the provisions of section 57 hereof, shall be guilty of a felony, punishable by imprisonment in the state prison not more than 1 year or by a fine of not more than 1,000 dollars, or both, in the discretion of the court.
“It is the intent of the legislature that the court, in imposing punishment under the provisions of this section, should discriminate between casual or slight violations and habitual sales of alcoholic liquor or attempts to commercialize violations of this act or any of the rules or regulations of the commission promulgated hereunder.” | [
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Per Curiam.
Plaintiff appeals from a decision of the Workmen’s Compensation Appeal Board affirming a referee’s order denying his claim for permanent disability benefits.
While working for defendant, Copper Range Mining Company, plaintiff sustained an injury to his right leg, necessitating its amputation seven inches below the knee. Thereafter, at Copper Range’s expense, plaintiff attended college, earning a degree in secondary education. After teaching for two years, plaintiff incurred a period of unemployment as a consequence of the declining job market for teachers.
A claim for workmen’s compensation was filed by plaintiff, which included a request for permanent disability benefits due to an alleged loss of industrial use of both legs. Plaintiff testified that because of the partial amputation of his right leg, greater stress was placed upon his left leg. It was his testimony that the increased stress caused his left leg to tire rapidly and sustain severe and painful muscular cramps. Thus, his ambulatory capability was significantly reduced to a point where, according to plaintiff’s claim, neither leg could be used in industry. Plaintiff also complained of substantial pain in his partially amputated leg whenever he stood or walked for any period of time in excess of one-half hour.
The deposition testimony of an examining physician was offered by plaintiff. Although the physician concluded that plaintiff had lost the industrial use of both legs, on cross-examination, he stated that no objective symptoms of any problem in either leg, other than the amputation itself, were observable. After quoting excerpts of this testimony and that of plaintiff, the board concluded that plaintiff’s left leg became "tired” when used for an unspecified period of time. The board further concluded that such a condition was insufficient to establish loss of industrial use.
It is plaintiff’s contention that the board used an erroneous legal standard in reaching its conclusion. In support of his position, plaintiff relies exclusively upon Burke v Ontonagon County Road Commission, 391 Mich 103; 214 NW2d 797 (1974).
So long as the board has not misapplied the governing law, its factual determinations, if supported by any evidence, are conclusive upon this reviewing Court. Thornton v Luria-Dumes Co-Venture, 347 Mich 160; 79 NW2d 457 (1956). This is the standard by which we must evaluate the board’s factual determination that plaintiff has not lost the industrial use of both legs.
Burke firmly established that an employment-related injury directly to both legs need not be found to support a finding of loss of industrial use. Any employment-related injury that is found to prevent the use of both legs in industry will satisfy the statutory requirement for disability benefits. Burke, supra, at 114; 214 NW2d at 802. However, as the plain language of the statute mandates, the loss of use of both legs in industry must be "[permanent and total”.
In the Burke decision the Court expressly approved this Court’s opinion in Lockwood v Continental Motors Corp, 27 Mich App 597; 183 NW2d 807 (1970). Lockwood adopted, in turn, from Hutsko v Chrysler Corp, 381 Mich 99; 158 NW2d 874 (1968), the standard to measure for loss of industrial use. Loss of industrial use is functionally equivalent to actual physical loss, as by destruction or amputation. Lockwood, supra, at 607; 183 NW2d at 812.
In the case under review there was testimony that plaintiff was sufficiently mobile to work as a teacher for two years. Further, plaintiff testified that he has the requisite mobility to work as a substitute teacher and take accounting courses to enhance his opportunity for gainful employment. While the testimony establishes that ambulation has been made more difficult for plaintiff by his unfortunate accident, we conclude that the board’s finding is supportable from the record and in accord with the applicable legal principles. The plaintiff failed to establish that permanent and total loss of industrial use contemplated by the statute.
Affirmed.
See MCLA 418.361(2); MSA 17.237(361X2).
MCLA 418.361(2)(g); MSA 17.237(361)(2)(g).
Loss of industrial use is a question of fact. Miller v Sullivan Milk Products, Inc, 385 Mich 659; 189 NW2d 304 (1971).
An exception arises where the injury is such that it affects all functions and activities of the body in more or less the same manner. See Triplett v Chrysler Corp, 394 Mich 518; 232 NW2d 168 (1975).
MCLA 418.361(2)(g); MSA 17.237(361)(2)(g). | [
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D. R. Freeman, J.
Appellant Frazier was convicted of armed robbery, MCLA 750.529; MSA 28.797, by a Calhoun County jury. At his trial, the defendant admitted taking the victim’s automobile. However, he raised a necessity duress defense claiming he took the vehicle, in escape, as he feared for his life and was pursued by an armed assailant.
Upon cross-examination the prosecution inquired if, at the time of arrest, the defendant had told the police about being under duress. The trial court allowed the question, believing it was proper under People v Luther, 394 Mich 619, 623-624; 232 NW2d 184, 187 (1975), a case enumerating those indicia which render a duress defense successful and which declares any immediate report upon apprehension by a prison escapee as relevant to a defense of necessity duress. Defendant Frazier was silent about any duress at the time of his arrest, and the prosecution attempted to impeach his credibility by alluding to this fact upon cross-examination.
In Doyle v Ohio, 426 US 610, 616, 617; 96 S Ct 2240, 2244; 49 L Ed 2d 91, 102 (1976), the defendant raised an alibi defense. The Supreme Court held that the prosecution’s attempt to impeach the credibility of a defendant who took the stand by pointing out he had not spoken about any alibi when arrested was violative of the defendant’s Fifth and Fourteenth Amendments’ self-incrimination and due process protections.
Michigan adopted a similar rule several years earlier in People v Bobo, 390 Mich 355, 359; 212 NW2d 190, 192 (1973), a case wherein the defendant alleged that prior to arrest he saw two potential suspects run past him, although he did not mention this at the time of his arrest. The prosecution attempted to impeach the defendant asserting his prior silence was materially inconsistent with his present defense; the Michigan Supreme Court refuted this:
"We will not condone conduct which directly or indi rectly restricts the exercise of the constitutional right to remain silent in the face of accusation. 'Nonutterances’ are not statements. The fact that a witness did not make a statement may be shown only to contradict his assertion that he did.”
The Bobo rule has been applied under similar facts where an alibi defense was involved. People v Norris, 74 Mich App 361, 364-365; 253 NW2d 767, 768 (1977).
Along with Bobo’s holding that "nonutterances are not statements”, there seems to be at least two additional reasons for holding such a means of impeachment unconstitutional. First, as the Supreme Court said in Doyle, 426 US at 617; 96 S Ct at 2244; 49 L Ed 2d at 97 (1976):
"Silence in the wake of these (Miranda) warnings may be nothing more than the arrestee’s exercise of these Miranda rights. Thus, every post-arrest silence is insolubly ambiguous because of what the State is required to advise the person arrested.” (Emphasis supplied.)
Secondly, were we to hold otherwise, it would be incumbent upon a defendant to raise defenses upon apprehension or arrest. Accused persons have no duty to explain to the police defenses; to hold otherwise would erode the principle of innocence being presumed until a showing of guilt beyond a reasonable doubt as it would require a defendant to immediately answer the merest of suspicions or suffer the penalty of impeachment for silence. See People v Bobo, 390 Mich 355, 358, fn 4; 212 NW2d 190, 192, fn 4 (1973).
It is the contention of the prosecutor that the Doyle and Bobo decisions should not be extended to a necessity duress defense under the facts here because People v Luther, supra, renders relevant, to that defense, evidence of immediately reporting to the proper authorities the threat in question. If the defendant has failed to present evidence of prompt reporting to support the defense, it is not for the prosecution to fill in the breach by making reference to or inquiring about the defendant’s exercise of his constitutional right to remain silent at the time of arrest. For, if a defendant fails to present evidence of a reporting of the threat to authorities, then, simply less evidence will go to the jury to substantiate the defense.
Given that "the danger is that the jury is likely to assign much more weight to the defendant’s previous silence than is warranted”, United States v Hale, 442 US 171, 180; 95 S Ct 2133, 2138; 45 L Ed 2d 99, 197 (1975), and given the evidence in this case, we cannot say the constitutional error is harmless beyond a reasonable doubt as required by Chapman v California, 386 US 18, 24; 87 S Ct 824, 826; 17 L Ed 2d 705, 710 (1967), People v Robinson, 386 Mich 551; 194 NW2d 709 (1972), People v Swan, 56 Mich App 22; 223 NW2d 346 (1974).
We agree with appellant Curtis Frazier that he has been denied his right to remain silent under the Michigan and Federal constitutions. Accordingly, we reverse and remand for a new trial.
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR3d 974 (1966). | [
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N. J. Kaufman, J.
Defendants Martin Oil Service and Arthur Csokasy secured a directed verdict of no cause of action on plaintiffs’ claim of negligence. Plaintiffs appeal as of right. As there was no dispute as to the facts of the case, plaintiffs filed a stipulation as to the record on appeal. (Appendix A.)
The incident that brought about this lawsuit occurred during the early morning hours of January 12, 1969. At about 1 a.m., defendant Csokasy was working in his Martin Oil service\ station at the intersection of Joy and Dexter in Detroit when a group of young men drove into the station. Three of the group entered the office of the station and one of the young men told Csokasy that his car had run out of gas down the street.
Csokasy initially refused to give the group any gas because they did not produce the required red can. He also noticed that the person who asked for gas was "hipped up, dancing around”. One of the group later admitted that they were all intoxicated. The person who originally requested the gas persisted, however, and pointed out a blue oil can. Defendant Csokasy continued to refuse service until the person "started putting his hand in his pocket” and asked "are you going to put gas in there?” Thereupon, Csokasy put one or two gallons of gas in the can and was given a six-dollar ring for security.
About 20 minutes later, the young men set fire to the Soul Expression dance hall a short distance from the station. The men had been denied admission to the hall before their trip to defendant Csokasy’s gas station. Plaintiffs were injured in the fire.
Substantively, the only question before this Court on appeal is whether defendants owed a duty to plaintiffs, or phrased differently, were the injured parties foreseeable plaintiffs on the facts of this case. A prominent commentator has noted that the Restatement of Torts holds "that there is no duty, and hence no negligence, and so never any liability, to the unforeseeable plaintiff’. Prosser, Torts (4th ed), p 255. Procedurally, it is necessary to decide whether the trial court could grant a directed verdict to defendants if it found no duty owed, or whether that issue (as well as the issues of proximate cause and foreseeability of the harm) had to be submitted to the jury.
The threshold element in a negligence case is that there must exist:
"1. A duty, or obligation, recognized by the law, requiring the actor to conform to a certain standard of conduct, for the protection of others against unreasonable risks.” (Footnote omitted.) Prosser, supra, p 143.
Thus, unless defendants owed a duty to plaintiffs in this case, the negligence analysis can proceed no further. In Moning v Alfono, 400 Mich 425, 439; 254 NW2d 759 (1977), the Supreme Court noted, "In the Palsgraf [v Long Island R Co, 248 NY 889; 162 NE 99; 59 ALR 1253 (1928)] case, the New York Court of Appeals * * * concluded that no duty is owed to an unforeseeable plaintiff’. (Footnote omitted.) A preliminary question that must be answered before exploring the issue of duty is who decides whether a duty exists? Michigan cases have rather consistently held that the issue of duty is for the trial court to decide as a matter of law.
For example, the Supreme Court noted in Bonin v Gralewicz, 378 Mich 521, 527, fn; 146 NW2d 647 (1966):
"Prosser puts the matter this way:
" 'The determination of any question of duty — that is, whether the defendant stands in such a relation to the plaintiff that the law will impose upon him any obligation of reasonable conduct for the benefit of the plaintiff [is for the court]. This issue is one of law, and is never for the jury. * * * ’
"Prosser, Torts (3d ed), §52 * * * .”
See also Farwell v Keaton, 396 Mich 281, 286; 240 NW2d 217 (1976), concluding: "The existence of a duty is ordinarily a question of law”, and Moning v Alfono, supra, at 436-437, noting that "we all agree that the duty question is solely for the court to decide”.
The stricture that "the issue of duty is a matter of law” is not without its modifications, however. The Supreme Court has just as consistently held that the existence of facts which give rise to a duty is for the jury to decide. In Farwell, supra, at 286-287, the Supreme Court explained:
"The existence of a duty is ordinarily a question of law. However, there are factual circumstances which give rise to a duty. The existence of those facts must be determined by a jury. In Bonin v Gralewicz, 378 Mich 421, 526-527; 146 NW2d 647 (1966), this Court reversed a directed verdict of no cause of action where the trial court had determined as a matter of law that the proofs were insufficient to establish a duty of care:
" 'Usually, in negligence cases, whether a duty is owed by the defendant to the plaintiff does not require resolution of fact issues. However, in some cases, as in this one, fact issues arise. When they do, they must be submitted to the jury, our traditional finders of fact, for ultimate resolution, and they must be accompanied by an appropriate conditional instruction regarding defendant’s duty, conditioned upon the jury’s resolution of the fact dispute.’
"This same rule was stated more recently in Davis v Thornton, 384 Mich 138, 142; 180 NW2d 11 (1970). '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.’ ” (Footnote omitted.)
As in this case there were no disputed issues of fact, there was no need to submit any portion of the duty issue to the jury. Therefore, if the trial court was not in error in its disposition of the substantive issue, it was not in error in granting the directed verdicts of no cause of action.
We turn then, to the question of whether defendants owed plaintiffs a duty. The viewpoint has already been expressed that the answer to that question lies, in large measure, in determining whether defendants could have foreseen that these plaintiffs would be injured by their actions. On the facts of this case, we find that the plaintiffs were not foreseeable and therefore affirm the trial court’s grant of directed verdicts of no cause of action.
Assuming the truth of the young men’s story— that their car had run out of gas — we hold that it should have been foreseen by defendants that giving a group of intoxicated individuals the means to propel a dangerous instrumentality (a motor vehicle) is likely to result in personal injury and/or property damage as a result of the use of the instrumentality. In other words, defendant would owe a duty to people injured by the vehicle (either in other automobiles or in a pedestrian capacity) and property damage caused by the vehicle. Here, however, the vehicle did not cause the injury. To hold that defendants are liable for injuries stemming from an arson, on these facts— where there is no testimony to indicate that defendants should have been aware that an arson was planned — would effectively end the practice of selling gasoline in containers, for use in emergencies and for other proper uses. There is nothing to suggest that nonintoxicated persons are less likely to commit arson than intoxicated persons. Thus, if we are to hold service stations responsible for arsons committed by persons using their gasoline, even if they have no notice of the intention of those persons, then for every person who asks for gasoline in a container, the service station will have to weigh the risk of liability without sufficient knowledge to make an intelligent decision. To be safe, then, service of that sort will be curtailed, if not eliminated outright. We do not find such an extension of the foreseeability doctrine to be a desired result on these facts and we cannot so hold as a matter of law.
In the other cases previously cited, where a duty was found, thus prompting the consideration of the other elements which comprise a negligence action, there were sufficient facts to indicate that plaintiffs were foreseeable.
In Bonin, supra, defendant was aware that his grandchildren were being dressed for the outside. Therefore, defendant could have foreseen those children as potential plaintiffs if he neglected to exercise due care. A duty of care to those potential plaintiffs was owed.
In Davis, supra, defendant was aware of the type of neighborhood his vehicle was left in. So by leaving his keys in the car and the doors unlocked, it was foreseeable that the car would be used for "joyriding” and that a person could be injured by the vehicle while it was being joyridden. A duty of care to that group of potential plaintiffs was owed.
In Farwell, supra, defendant was aware that the plaintiff’s decedent was badly injured at the time defendant found him. It was certainly foreseeable to defendant that if he did not exercise due care in obtaining prompt medical assistance, that further injury would befall plaintiff’s decedent. Clearly, a duty of care to that potential plaintiff was owed.
Finally, in Moning, supra, defendant was aware of the dangerous propensities of slingshots and was aware that he was selling to a minor who could not be trusted to use the same standard of care as would an adult. Thus, it was foreseeable that a mishandled slingshot could cause direct injury to a person. When combined with the fact that children usually play with other children, it is clear that a duty of care was owed by defendant to at least that class of potential plaintiffs (the playmates of purchasers of the slingshots).
The factual situation in this case differs from the cases cited above. Thus we repeat, the plaintiffs in this case were not foreseeable to defendants as a matter of law; therefore, no duty attached — as a matter of law. As no duty was owed to plaintiffs by defendants, defendants’ conduct could not be negligent. Therefore, we affirm the trial court.
Affirmed.
Appendix A
"Stipulation As To Record On Appeal
It Is Hereby Stipulated * * * that the [factual] record on appeal shall constitute the following pleadings:
"Deposition of Arthur Csokasy dated 5/26/72
"Deposition of Ronald Robinson dated 6/9/76
"Transcript of Judge Richard D. Dunn’s Opinion”.
The other defendants originally involved in the lawsuit settled with plaintiffs during trial.
That precise admission came from a deposition not part of the settled record. However, substantially the same impression may be garnered from defendant Csokasy’s deposition which is part of the settled record.
Black’s Law Dictionary, 4th ed, p 777 defines "Foreseeability” as "the ability to see or know in advance, hence, the reasonable anticipation that harm or injury is a likely result of acts or omissions”.
The imprecision of the Davis language is due in large measure to a tendency of some courts toward incautious generalization which "obscures the separate issues in a negligence case (duty, proximate cause and general and specific standard of care) * * * [by] combining] and staffing) them together in terms of whether there is a duty to refrain from particular conduct.” Moning v Aliono, supra at 432-433. | [
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D. C. Riley, P. J.
This is a suit seeking enforcement of a security interest and payment for goods sold on a non-interest-bearing promissory note and on open account. Following plaintiffs opening statement, the trial court on defendants’ motion dismissed the cause with prejudice because plaintiff Thomas Industries, a foreign corporation manufacturing lighting products, had transacted business in Michigan without a certificate of authority. MCLA 450.2011; MSA 21.200(1011), MCLA 600.2021; MSA 27A.2021.
On appeal, plaintiff initially claims that the paucity of facts garnered below prevented the lower court from properly determining whether Thomas had conducted business in Michigan within the meaning of MCLA 450.2012(1); MSA 21.200(1012X1). Although we readily admit that the record might have been better developed, we would not fault the lower court for refusing to conduct an additional evidentiary hearing. The facts before the trial court — deposition testimony of three Thomas employees — provided ample grist for judicial decision. Having been apprised well in advance of trial that defendants would assert plaintiffs noncompliance with the domestication statute, Thomas should have been prepared to offer at trial whatever contrary evidence it may have possessed. Since the extent of Thomas’s operations in Michigan were not facts "peculiarly within the pleader’s [i.e., the defendant’s] knowledge”, GCR 1963, 112.1, plaintiff cannot invoke the cited court rule to forestall resolution of the remaining appellate issues.
Thomas next argues that it had no obligation to obtain a certificate of authority before commencing suit.
Labeling the transactions at bar as wholly involving interstate commerce, Thomas arrays the following facts: 1) the promissory note recited that the same was payable at Hopkinsville, Kentucky; 2) the security agreement was "executed pursuant to the Uniform Commercial Code as adopted by the state of Kentucky”; and 3) there was no evidence below that Thomas maintained an office or inventory in Michigan, that Thomas’s salesmen had authority to bind it contractually in local acceptance of solicited orders, that Thomas dealt with customers of defendant or of other Michigan retailers, or that Thomas installed its equipment in Michigan.
In response, defendants assemble other facts of record: 1) Thomas engaged in extensive sales in Michigan; 2) it employed a territory manager — a resident of Livonia, Michigan — whose responsibilities included representing Thomas’s Residential Lighting Division in northeastern Michigan, a region encompassing not only the "Great Lakes-Metropolitan Detroit area” but also the "upper territory of counties and Upper Peninsula”; 3) it divided Michigan into sales zones and regions; 4) it considered business accounts in Michigan as distributors; 5) it promoted a standard, identifiable concept of storefront and decor image among Michigan distributors; 6) it engaged in programs of cooperative advertising, inventory exchange and defective-goods replacement with Michigan distributors; 7) it imposed regulations coincident with these programs on Michigan distributors; and 8) it extended credit in Michigan, the promissory note having been executed in Mt. Clemens.
Section 1012(1) of the Michigan Business Corporation Act, as amended, defines by exclusion those activities which will and will not be deemed transacting business:
"SEC. 1012. (1) Without excluding other activities which may not constitute transacting business in this state, a foreign corporation is not considered to be transacting business in this state, for the purposes of this act, solely because it is carrying on in this state any 1 or more of the following activities:
(a) Maintaining or defending an action or suit or an administrative or arbitrative proceeding, or effecting the settlement thereof or the settlement of a claim or dispute.
(b) Holding meetings of its directors or shareholders or carrying on any other activities concerning its internal affairs.
(c) Maintaining a bank account.
(d) Maintaining an office or agency for the transfer, exchange, and registration of its securities, or appointing and maintaining a trustee or depository with relation to its securities.
(e) Effecting sales through an independent contractor.
(f) Soliciting or procuring orders, whether by mail or through employees or agents or otherwise, where such orders require acceptance without this state before becoming binding contracts.
(g) Borrowing money, with or without security.
(h) Securing or collecting debts or enforcing any right in property securing the same.
(i) Transacting any business in interstate commerce.
(j) Conducting an isolated transaction not in the course of a number of repeated transactions of like nature.” MCLA 450.2012(1); MSA 21.200(1012X1).
While § 1012(1) has no exact counterpart under prior law, it does embody certain settled principles. Where, for example, a foreign corporation transacts any business in interstate commerce, MCLA 450.2012(l)(i); MSA 21.200(1012)0), or conducts "an isolated transaction not in the course of a number of repeated transactions of like nature”, MCLA 450.2012(l)(j); MSA 21.200(1012X1)0), it is not doing business in Michigan for purposes of the act. See Long Manufacturing Co, Inc v Wright-Way Farm Service, Inc, 391 Mich 82; 214 NW2d 816 (1974).
On the other hand, where the things done are " 'of a character indicative of an intention on the part of the corporation to carry on its business in the state * * * [i.e., evincing] a continuity of act and purpose.’ 17 Fletcher Cyclopedia Corporations (1960 rev ed), § 8466, pp 554-555”, Long, supra at 88-89, then the foreign corporation can be said to have transacted business in Michigan.
With Long and its forebears as our guiding light, we affirm the lower court’s conclusion that Thomas had transacted business in Michigan within the purview of the present domestication statute. The record discloses not an isolated sale but a continuous and systematic program of fostering intrastate sales. Long, supra at 92. Thomas offered a cooperative advertising program to its Michigan distributors under which each would contribute $1500 semiannually to promote intrastate sales to Michigan tradesmen or residents, cf. Eli Lilly & Co v Sav-On-Drugs, Inc, 366 US 276, 281; 81 S Ct 1316, 1319; 6 L Ed 2d 288, 293 (1961), and Behlen Manufacturing Co v Andries-Butler Inc, 52 Mich App 317, 320; 217 NW2d 125 (1974); it employed a resident salesman, apparently full time, whose established territory covered large portions of the state, cf Long, supra at 92; and it encouraged an identifiable architectural image for its lighting centers in much the same way as do many national fast food chains.
Although we are mindful that a foreign seller of goods may, without domesticating, prescribe " 'exactions in regard to the price to be charged, and the manner of reselling’ ”, The W T Rawleigh Co v Trerice, 224 Mich 420, 426; 195 NW 79 (1923), quoting W T Rawleigh Medical Co v Holcomb, 126 Ark 597; 191 SW 215 (1917), we also recognize that Trerice, unlike the present case, did not involve the foreign corporation’s payment of "expenses incurred by * * * [the Michigan distributor] in his business”. 224 Mich at 425.
We also observe that nowhere in its appellate brief does Thomas expressly deny involvement in intrastate sales; rather it shrouds its claims with qualifications suggesting that defendants have "shown no aspect of the transaction sued upon which constitutes the conduct by plaintiif of intrastate business under the case law cited”. (Appellant’s brief at 22; emphasis in original.) Neither Long, supra, nor MCLA 450.2012(1); MSA 21.200(1012X1) comprehend so circumscribed an inquiry. The test, as noted, is whether the corporation, as evidenced by its overall operations in the state, displayed that continuity of act and purpose expressive of an intent to do business in Michigan. Accordingly, we hold that for purposes of the Business Corporation Act Thomas conducted business in Michigan without a certificate of authority. That Thomas also engaged in interstate activity within Michigan does not obviate its duty of compliance with the domestication statute. Eli Lilly, supra, Behlen, supra.
Lastly, Thomas maintains that even if it had transacted intrastate business, the lower court should not have dismissed the case with prejudice unless first according plaintiff an opportunity to register in Michigan.
To resolve this question, three statutes must be examined:
"SEC. 1011. A foreign corporation shall not transact business in this state until it has procured a certificate of authority so to do from the administrator. * * * .” MCLA 450.2011; MSA 21.200(1011).
"SEC. 1051. (1) A foreign corporation transacting business in this state without a certificate of authority shall not maintain an action or proceeding in any court of this state, until the corporation has obtained a certificate of authority. An action commenced by a foreign corporation having no certificate of authority shall not be dismissed if a certificate of authority has been obtained before the order of dismissal.
"(2) Failure of a foreign corporation to obtain a certificate of authority to transact business in this state does not impair the validity of a contract or act of the corporation, and does not prevent the corporation from defending an action or proceeding in a court of this state.” MCLA 450.2051; MSA 21.200(1051).
"SEC. 2021. When, by the laws of this state, any act is forbidden to be done by any corporation, or by any association of individuals, without express authority by law, and such act was done by a foreign corporation, the foreign corporation shall not maintain any action founded upon such act, or upon any liability or obligation, express or implied, arising out of, or made or entered into in consideration of such act.” MCLA 600.2021; MSA 27A.2021.
In Lake States Engineering Corp v Lawrence Seaway Corp, 15 Mich App 637; 167 NW2d 320 (1969), Judge, now Justice, Levin, writing for a unanimous panel, interpreted MCLA 450.95; MSA 21.96 (since repealed by 1974 PA 140, § 2). Referring to the combined operation of MCLA 450.95; MSA 21.96 and MCLA 600.2021; MSA 27A.2021, Justice Levin observed:
"The legislature has deliberately decided to declare a forfeiture in the belief that the in terrorem effect of such a forfeiture will tend to compel compliance with the statutory provisions requiring foreign corporations to register and pay taxes comparable to those imposed on domestic corporations. That being the legislative decision our duty is to enforce it even though in a given case the amount of the forfeiture may appear quantitatively or relatively large. Cf. Dawn Construction Co. v. Paris Home Builders, Inc. (1960), 360 Mich 281, 285 [103 NW2d 410]; Bilt-More Homes, Inc. v. French (1964), 373 Mich 693 [130 NW2d 907].
"Nor does Lake States’ compliance with Michigan’s requirements after it committed all the acts upon which it declares in its complaint enable Lake States to maintain this action. [MCLA 600.2021; MSA 27A.2021] provides that an action may not be maintained based upon the commission of unlawful acts of the kind described in that section. Lake States’ acts were of that kind. Lake States’ subsequent qualiñcation did not make those unlawful acts lawful
"Allowing anyone who deals with an unqualified foreign corporation to avail itself of the bar to suits by such corporation serves the public as a whole by providing a most effective deterrent to avoidance of State taxation and regulation of foreign corporations.” 15 Mich App at 646-647, 655. (Footnotes omitted; emphasis added.)
In response to Lake States, Professor Stanley Siegel, Reporter to the Law Revision Commission that initially drafted the Business Corporation Act, has stated:
"Prior Michigan Law (MCLA Sec. 450.95) invalidated contracts of noncomplying foreign corporations. Subsection (2) [of Section 1051] specifically reverses that rule, thereby reversing the decision in Lake State [sic] Engineering Corp. v. Lawrence Seaway Corp., 15 Mich. App. 637, 167 N.W. 2d 320 (1969).”
Siegel, The Michigan Business Corporation Act with Explanations, Practice Checklists and Forms (Midwest Business Planners, Ann Arbor, 1972), Comment to Section 1051, p 214. See also, Michigan Law Revision Commission, 5th Annual Report (Supp: Business Corporation Act, 1970), p 289:
"MCLA 450.95 invalidates contracts of noncomplying foreign corporations. This remedy is often perverse. It is rejected in (b) [now MCLA 450.2051(2); MSA 21.200(1051X2)] consistent with most recent revisions.”
We agree with Professor Siegel and the Law Revision Commission to the extent these scholars suggest that MCLA 450.2051(2); MSA 21.200(1051)(2) precludes the invalidation of contracts of noncomplying foreign corporations. It is quite another matter, however, to hold that the provision necessarily deprives the lower courts of their traditional discretion to dismiss a suit with prejudice. See Reed v Burton Abstract & Title Co, 344 Mich 375, 384-385; 73 NW2d 828 (1955), and Central Contracting Co, Inc v Goldman, 48 Mich App 604, 608; 210 NW2d 901 (1973).
To be sure, Thomas’s contracts with defendants remain valid; they may be enforced in any state (other than Michigan) where Thomas can invoke jurisdiction over defendants. But by dint of MCLA 450.2051(1); MSA 21.200(1051X1) and MCLA 600.2021; MSA 27A.2021, an uncertified foreign corporation, transacting Michigan business, may not command enforcement of its intrastate contracts once the lower court unabusively exercises its discretionary authority to dismiss with prejudice.
In our view the enactment of MCLA 450.2051(2); MSA 21.200(1051X2) does not reverse Lake States, supra, in its entirety. Instead, by permitting compliance at any time prior to dismissal, the provision mitigates the harsh, perhaps "perverse”, result of voiding the contracts of foreign corporations. Following the adoption of this provision, the in terrorem effect of MCLA 600.2021; MSA 27A.2021 remains (albeit in modified form): If a foreign corporation transacts intrastate business in Michigan without a certificate of authority, it does so at the risk that a lower court, exercising its discretion, may properly dismiss the cause with prejudice and thus foreclose suit in Michigan.
We have examined the lower court record with care and discern no abuse of trial-court discretion in its irrevocable dismissal of plaintiff’s suit. Prompted by an unfounded belief that it was exempt from the domestication statute, Thomas never complied with the statute’s requirements. Compare Central Contracting, supra at 606. The plaintiff took a calculated risk, but lost. Its difficulties are thus of its own. making. Others should pay heed.
Affirmed. Costs to defendants.
On this point, the record discloses the following colloquy:
"THE COURT: I believe, when we had a discussion in chambers prior to commencing this morning, you indicated that plaintiff, Thomas Industries, has sales of, what was it? Three quarters of a million?
"MR. EVANS [Plaintiffs attorney]: I made no comment. I think Mr. Donovan [Defendants’ attorney] had a figure and I am not in a position to rebut that.
"THE COURT: Well, let me ask this: did it come out in the deposition? I recall some discussion of that and I recall your words, 'No question we do — ’
"MR. EVANS: 'A lot of business.’
"THE COURT: ' — a lot of business in Michigan.’
"MR. EVANS: Yes. There are a lot of sales to business firms that are retailers of lighting fixtures which businesses are independent retailers and are not divisions or extensions of the seller corporation which is principally located in Kentucky.”
Thomas’s "local salesman” replaces goods found to be defective. The record, however, does not reveal whether the salesman maintains an inventory in Michigan for replacement of defective goods.
1973 PA 98 § 1 amended § 1012(1) by adding the word "solely” to avoid the implication that all the activities listed may be carried on without their constituting the transacting of business. See, Michigan Law Revision Commission, 8th Annual Report (1973), p 9.
At the deposition of one Thomas employee, the deponent agreed that Thomas’s concept of an identifiable architectural image (mansard roof with dormers and an outdoor lantern) is based on the same principle as that of the McDonald’s hamburger chain.
In germane part, MCLA 450.95; MSA 21.96 provided:
"No foreign corporation shall be capable of making a valid contract in this state until it shall have fully complied with the requirements of the laws of this state with respect thereto, and at the time holds an unrevoked certificate to that effect from the Michigan corporation and securities commission.” | [
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D. E. Holbrook, Jr., J.
The instant appeal arises from a non-jury paternity suit following which the trial court entered an order of filiation.
During the course of trial the defendant attempted to present the testimony of three witnesses tending to establish the defense of "alibi”. Following objection by the prosecutor, the trial court ruled such evidence to be inadmissible since defendant had not complied with the notice requirement of the "alibi” statute. MCLA 768.20; MSA 28.1043.
In People v McFadden, 347 Mich 357; 79 NW2d 869 (1956), the Supreme Court held that notice of alibi was required in bastardy proceedings. Since that decision, however, in 1974 the Legislature amended the "alibi” statute limiting the same to "felony” cases. The pertinent portion of such amended statute reads as follows:
"If a defendant in a felony case proposes to offer in his defense testimony to establish an alibi * * * the defendant shall * * * file and serve upon the prosecuting attorney a notice in writing of his intention to claim that defense * * * .”
The prior statute, the one in effect at the time of McFadden, supra, applied to criminal cases not cognizable by a justice of the peace. The Court in McFadden, supra, found bastardy proceedings to be quasi-criminal in nature, held that such cases were not cognizable by a justice of the peace and further held that a defendant in such a proceeding, being entitled to the protection of provisions of the Code of Criminal Procedure, must comply with applicable provisions thereof that are prescribed for the benefit of the public, including notice of the defense of "alibi”, and that the defendant in such proceedings must give notice of his intent to claim the defense in order to introduce evidence thereof at trial.
In MCLA 750.7; MSA 28.197, the term "felony” is defined as follows:
" * * * an offense for which the offender, on conviction may be punished by death, or by imprisonment in state prison.”
That the offender in a paternity suit cannot be so punished is not subject to question. Moreover, statutes which refer to the same class of persons or things or share a common objective must be interpreted to be complementary and not contradictory. Palmer v State Land Office Board, 304 Mich 628; 8 NW2d 664 (1943). Reichert v Peoples State Bank for Savings, 265 Mich 668; 252 NW 484 (1934). Further, the Legislature when enacting or amending a statute must be presumed to have knowledge of existing statutes and laws.
We hold, therefore, because a finding that one is the father of an illegitimate child permits neither a penalty of death nor imprisonment in a state prison that the defendant is no longer required to give notice of his intent to claim "alibi” as a defense in a paternity action.
Reversed and remanded for a new trial. | [
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Bronson, J.
Loretta E. Rogoski filed a complaint alleging that defendants conspired to perpetrate a fraud upon her by agreeing that Elden Nedeau, an assessor for the City of Muskegon, would give false testimony concerning the value of Mrs. Rogoski’s property in a previous condemnation proceeding. The trial court summarily dismissed the suit, holding that, if it was characterized as an independent action for damages it failed to state a cause of action and, if the suit was characterized as an equitable action to set aside the previous judgment, it had to fail because it was untimely and plaintiff had not exhausted his legal remedies. Thereafter, plaintiff filed a motion under this controversy’s entitlement seeking relief from judgment based upon GCR 1963, 528.3(3). This motion was denied by order of the circuit court dated September 22, 1980. Plaintiff now appeals as of right.
The procedural history of this case is highly relevant to a full understanding of the matter. Set forth below are the salient facts.
In the original condemnation proceeding, Judge John H. Piercey tried the matter without a jury. On July 10, 1973, a judgment awarding Loretta Rogoski $18,500 for the property in dispute, along with costs, was entered in Muskegon County Circuit Court case file No. C-5442. No effort was ever made to appeal this judgment.
The instant action was commenced on December 13, 1977, and alleged that Mrs. Rogoski became aware that the city’s appraiser, defendant Nedeau, had given false testimony and withheld information from the court in the original condemnation proceeding. Plaintiff sought special and punitive damages in the combined amount of some $28,000. This action was denominated 77-11426-CZ by the Muskegon County Circuit Court.
Defendants filed motions for summary and accelerated judgment. These motions were initially denied by a visiting district court judge. However, upon rehearing, the Honorable R. Max Daniels dismissed the action by order entered sometime in June, 1979, for the reasons stated in the first paragraph of this opinion.
Plaintiff then sought leave to file a delayed appeal in this Court. By order dated January 25, 1980, this Court denied plaintiff’s application, "but without prejudice to plaintiff’s right to pursue a motion for relief from judgment pursuant to GCR 1963, 528.3”. Plaintiff then brought a motion for relief in this Court. This motion was treated as an application for rehearing, and by order dated March 26, 1980, a rehearing was denied but once again without prejudice to plaintiff’s "right to pursue a motion for relief from judgment in the trial court” (Emphasis in the original.)
On September 9, 1980, plaintiff filed motions for relief from judgment in respect to the original condemnation action (C-5442) and the subsequent action alleging fraud (77-11425-CZ). In the latter case, the one under consideration here, Judge Daniels denied the motion in an order dated September 22, 1980. Judge Piercey also denied the motion in respect to the original condemnation proceeding. In an opinion dated November 18, 1980, Judge Piercey stated that he continued to believe the $18,500 awarded Mrs. Rogoski for her property was fair, and that plaintiff had failed to make a prima facie showing of fraud upon the court sufficient to warrant an evidentiary hearing. From the materials at hand, we are unable to ascertain whether plaintiff has appealed this decision.
Plaintiff relies on the following portion of GCR 1963, 528.3 for the proposition that he is entitled to relief from the original condemnation action via this proceeding:
"This rule does not limit the power of a court to entertain an independent action to relieve a party from a judgment, order, or proceeding, or to grant relief to a defendant not actually personally notified as provided in sub-rule 528.2 above, or to set aside a judgment for fraud upon the court.”
The portion of GCR 1963, 528.3, above, allows an independent action based in equity to relieve a litigant from the effects of a judgment or order. However, in this action plaintiff is seeking more than mere relief from judgment, that is, the setting aside of the previous judgment in the condemnation proceeding. Instead, plaintiff seeks damages from defendants on an independent theory of recovery, to-wit: fraud and conspiracy to defraud. The committee comment on GCR 1963, 528.3 clearly states that the court rule creates no substantive law but merely prescribes the practice to follow for litigants seeking relief. See Kita v Ma-tuszak, 55 Mich App 288, 294-295; 222 NW2d 216 (1974), lv den 393 Mich 769 (1974). Plaintiff cites us no cases indicating that the substantive law of Michigan has ever allowed an independent action for damages on facts like those presented in the case at bar, and our research uncovers none.
Assuming, arguendo, that the rule allows an independent cause of action for damages in an appropriate case, we would still hold that plaintiff has failed to state a claim upon which relief can be granted. GCR 1963, 117.2(1). Whether a civil action can be brought to secure damages for conspiracy to commit perjury is an issue of first impression within this state, but we believe the general rule stated in 60 Am Jur 2d, Perjury, § 75, pp 1012-1013, is also the law of Michigan:
"It is the general rule that no civil action for damages lies for false testimony, or for subornation of false testimony. Thus, it has been held that false testimony in a criminal action that results in a conviction of the plaintiff does not furnish the basis of a civil suit to recover damages, and that no action for damages lies for false testimony in a civil suit whereby the plaintiff fails to recover a judgment, or a judgment is rendered against him. Likewise, one to whom an interest in a prospective judgment has been assigned has no right of action for the loss of the judgment to his assignor by reason of false testimony given by the defendant. And it has been held that if the parties to an action for giving false testimony are the same as those to the action in which the testimony was given, there can be no recovery; in such an action, estoppel by judgment would appear to be a complete defense. Otherwise, it is said, there would be no end of litigation.
"It is also the general rule that no civil action for damages lies for conspiracy to give, or to procure the giving of, false testimony. Liability for conspiring to give false testimony has been upheld, however, where the plaintiff and the defendants were not parties to the action in which the false testimony was given. Also, in several cases it has been held or recognized that an action will lie where the perjury was a means to, or a step in, the accomplishment of some larger actionable conspiracy.” (Footnotes omitted.)
See also 70 CJS, Perjury, § 93, p 559; Anno: Testimony of Witness as Basis of Civil Action for Damages, 54 ALR2d 1298, § 7.
The common law of England recognized no cause of action based upon a witness’s false testimony. In Damport v Sympson, 78 Eng Rep 769 (1598), the King’s Bench rejected plaintiffs cause of action seeking damages for defendant’s allegedly perjured testimony in respect to the value of certain personalty in issue in an earlier proceeding. The King’s Bench stated that no precedent allowing such a suit could be found, and it would not create a new cause of action. See also Harding v Bodman, 123 Eng Rep 1064 (1618).
By Const 1963, art 3, § 7, the English common law, so far as it is not repugnant to the Federal and state constitutions and statute, remains in full force and effect. See Stout v Keyes, 2 Doug 184 (Mich, 1845). Michigan has neither constitutional nor statutory authority in conflict with the common law as regards a civil cause of action for the giving of perjured testimony. Thus, pursuant to the common law, no such cause of action exists in Michigan.
Were we to construe plaintiff’s second suit merely as one seeking relief from the earlier judgment, the result would be no different. The portion of GCR 1963, 528.3 which plaintiff’s action proceeds under only entitles a litigant to relief from a judgment procured by extrinsic fraud. Extrinsic fraud is a fraud which actually prevents the losing party from having an adversary trial on a significant issue. Fawcett v Atherton, 298 Mich 362, 365; 299 NW 108 (1941). Perjury has been held to be an intrinsic fraud only. Atherton, supra, Beatty v Brooking, 9 Mich App 579, 584; 157 NW2d 793 (1968), Kita, supra. In Atherton, the Supreme Court explained that, while perjury constitutes a fraud in obtaining a judgment, it does not prevent an adversary trial. The litigant confronted with perjury in court has the opportunity to rebut the perjured testimony through his own case. As Ath-erton states, while the rule may seem harsh in individual cases, litigation must have some finality and, if allegedly perjured testimony could serve as the basis for a new action to set aside a judgment, litigation of a dispute could go on ad inñnitum.
This does not mean that a litigant is never entitled to relief from a judgment obtained by intrinsic fraud. However, this relief cannot be by independent action but, rather, must be by motion in the case in which the adverse judgment was rendered. GCR 1963, 528.3(3), which provides for relief from judgment for an intrinsic fraud, is limited by later provisions of the rule to cases where the party seeking relief brings a motion within a reasonable time not to exceed one year after the judgment is taken. Thus, even if plaintiffs case is construed solely as one attempting to set aside a prior judgment, the theory under which plaintiff proceeds — intrinsic fraud — is not grounds for relief from a prior judgment via an independent action.
The trial court most ably analyzed the procedural posture of this cause and correctly resolved the issues raised. We do not address plaintiffs other issues since we conclude this action is barred. Nor do we address the prospects for success should plaintiff choose to appeal Judge Pier-cey’s order in the original condemnation proceeding denying his motion for relief from judgment.
Affirmed. Defendants-appellees may tax costs.
Mrs. Rogoski died on July 3, 1979, and her personal representative, Alexis J. Rogoski, has been substituted as the named plaintiff by order of this Court.
See also 11 Wright & Miller, Federal Practice & Procedure, § 2870, pp 256-257, where the authors discuss the question of whether an independent action to set aside a judgment can be brought on the basis of perjured testimony under FR Civ P 60(b), from which GCR 1963, 528.3 is derived. The authors note that mere perjury by a witness is not generally considered a "fraud upon the court”.
Allen v Allen, 341 Mich 543; 67 NW2d 805 (1954), cited by plaintiff, seemingly conflicts with the proposition that perjury constitutes a mere intrinsic fraud on the court. Allen explicitly found that plaintiff’s perjury in a divorce action was an extrinsic fraud working a fraud upon the court. A brief review of Allen shows that it is quite unlike this case. In Allen, plaintiff was pregnant by a man not her husband at the time she obtained the divorce. Under the then prevailing divorce law, a party’s marital misconduct was an absolute bar to that party’s ability to obtain a divorce. Had the trial court known of plaintiff’s misconduct, by law it would have been powerless to grant the divorce. Plaintiff obtained the divorce by pro confesso decree and the court was not apprised of the truth. The perjury in Allen, then, actually did prevent the court from considering a significant legal issue which affected its power to grant the relief sought. Even if the perjury in Allen was mischaracterized by the Court, it is to be noted that relief in that case was sought through a motion to set aside the divorce decree entered in that cause, rather than through an independent action.
We do not address the issue of whether the one-year limitations period imposed by GCR 1963, 528.3 may be tolled until a party learns of the perjury. Plaintiff admits in his brief that the alleged perjury was discovered in January, 1974, yet this action was not filed until December, 1977. .
We have stated that GCR 1963, 528.3(3) does not allow for relief by an independent action. This broad statement should be qualified to some extent. That is, we do not address whether an independent action would be an appropriate means of seeking relief on the basis of intrinsic fraud if the action were brought within the one-year limitations period imposed by the rule. | [
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Per Curiam.
On April 9, 1980, defendant was convicted by a Bay County Circuit Court jury of larceny over $100 in violation of MCL 750.356; MSA 28.588. Defendant was sentenced to five years probation, the first six months of which to be spent in jail. Defendant appeals as of right.
At trial, the security manager for the K-mart store located in Hampton Square Mall testified that he apprehended defendant and a woman companion for shoplifting on August 11, 1979. The security manager further testified in detail concerning how the women concealed a color television set, curtains, and $282 worth of women’s clothing in an empty "hot cycle” box and in a clothes hamper during the 45 minutes he observed them. Other store employees testified to finding the "hot cycle” which had been removed from its box in the furniture department and to finding the clothes hangers from the women’s clothing in a garbage pail inside the store in accordance with the security manager’s observations and testimony. Defendant’s companion paid only $13.48 for the "hot cycle” box in which the color television and the curtains were hidden. Defendant paid only $10.88 for the clothes hamper in which the women’s clothing was hidden.
Defendant’s claims of error concern the testimony of Officer Reynolds, the arresting officer. Officer Reynolds testified that security manager Wood’s report gave defendant’s name as Anna Garcia and gave defendant’s birth date. Officer Reynolds indicated that defendant had no identification with her and, when asked for her full name, that she initially gave him the name Anna Garcia. Defendant objected to this question and answer claiming a Miranda violation since defendant had not been given her rights prior to being asked for her name. The objection was overruled. A discussion outside the presence of the jury followed in which defense counsel indicated that, without waiving the prior Miranda objection, there would be no objection to the prosecution’s asking Officer Reynolds if he subsequently learned "from another source” that defendant’s name was Annette Cuel-lar and that defendant then admitted to him that Annette Cuellar was her name. The jury was then brought back into the courtroom and this testimony was taken without objection. On cross-examination, Officer Reynolds testified that Anna Garcia was defendant’s maiden name.
Defendant’s claim of a Miranda violation is without merit. The trial court was correct in holding that the simple asking of defendant’s name was not interrogation or an investigative type question requiring the giving of Miranda rights, "[interrogation can extend only to words or actions on the part of police officers that they should have known were reasonably likely to elicit an incriminating response.” (Emphasis in original.) Rhode Island v Innis, 446 US 291, 302; 100 S Ct 1682; 64 L Ed 2d 297 (1980). Asking defendant her name does not substantively concern the offense charged and does not amount to interrogation. Therefore, the question falls outside the parameters of the Miranda decision. Innis, supra, People v Scanlon, 74 Mich App 186, 189; 253 NW2d 704 (1977).
Defendant’s claim that the admission of Officer Reynolds’s testimony that he learned of defendant’s name "from another source” resulted in reversible error is also without merit. Defendant did not object to this testimony at trial. The function of an appellate court is restricted to the test of questions which have been raised in the court below and thus saved for review. Walls v Director of Institutional Services, 84 Mich App 355; 269 NW2d 599 (1978), Oakland County v Detroit, 81 Mich App 308; 265 NW2d 130 (1978). The lack of objection precludes reversal absent manifest injustice. People v Stinson, 88 Mich App 672; 278 NW2d 715 (1979), MRE 103(a)(1) and (d). We find no manifest injustice.
At the conclusion of a lengthy discussion outside the presence of the jury, the following agreement was reached by the prosecution, defense counsel and court delineating the questions to be asked Officer Reynolds by the prosecution:
"[The Prosecutor]: First, did — did she have any identification. Number two, did she initially go by the name Anna Garcia. Number three, * * * did you learn from another source that her name was Annette Marie Cuel-lar and then what occurred after you learned that and then I assume you would testify that you went in the room and asked Annette and she spoke right up and then the fifth question would be, did she later give you the name Annette Marie Cuellar? And that would be the questions.
"[Defense Counsel]: If those are the questions I have no — without waiving the earlier objections * * * I would say I have no objection to them. I also have no objections to the form of the question which leads the officer because I think that’s going to prevent us from getting to the question of a LEIN and alias and all this other business.
"The Court: All right. Very good. Are you ready for the jury, then?
"[Defense Counsel]: Yes, we’re ready.
"The Court: You may bring in the jury.”
The jury was brought back into the courtroom and Officer Reynolds testified in response to prosecution questioning exactly as was agreed:
”Q. Now, when Annette — the defendant was in the security room, did she have any identification?
"A. Not that I recall.
”Q. And did she initially give you the name Anna Garcia?
"A. Yes, she did.
”Q. And did you subsequently learn from another source that her name was Annette — Annette Cuellar?
"A. Yes, I did.
”Q. And what happened after that point?
"A. What do you mean? After I—
”Q. You learned this — did you go back into the security room?
'A. Okay. I went back into the room and I stated, Annette, as a question, Annette? And she answered up yes.
"Q. Okay. The defendant answered up?
'A. Yes.
”Q. Okay. And did you subsequently learn that her name was—
"A. Actually—
”Q. —from her that her name was Annette Cuellar?
"A. She admitted to me that her name was Annette Cuellar.
’’[The Prosecutor]: I have no further questions.”
This testimony established that defendant, Annette Cuellar, was the person identified as Anna Garcia in security manager Wood’s report.
The present case is distinguishable from the case of People v Albert Thompson, 101 Mich App 609; 300 NW2d 645 (1980), in which the trial court allowed the prosecutor, over objection, to question the defendant concerning his prior use of aliases for purposes of impeaching the defendant’s credi bility. Here, defendant did not testify. Additionally, the prosecution did not, as argued by defendant, imply that defendant was involved in other criminal conduct by some oblique reference to an alias of the defendant. The word "alias” was never mentioned at trial and the prosecution neither commented on defendant’s use of her maiden name during opening argument nor during closing argument.
The evidence against defendant was overwhelming and the single unobjected-to statement in question was insignificant in leading to her conviction. People v Bryan, 92 Mich App 208, 218; 284 NW2d 765 (1979). Thus, even if Officer Reynolds’s statement could be deemed error under Thompson, supra, the error was harmless and it would not warrant reversal. Thompson, supra, 614.
Affirmed.
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694 (1966).
Since defendant did not testify, there was no attempt to impeach her credibility. Therefore, we need not address the issue of whether the use of an alias is "highly probative” of a witness’s credibility. See People v Pace, 98 Mich App 714, 718; 296 NW2d 345 (1980), and People v Dietrich, 87 Mich App 116, 138-139; 274 NW2d 472 (1978), holding use of an alias highly probative. Cf. People v Thompson, supra, holding it is not. | [
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Per Curiam.
In August, 1975, plaintiff, a member of defendant Dearborn Indoor Racquet Club, filed the instant class action suit in Wayne County Circuit Court on behalf of himself and all males similarly situated. Defendants are the Dearborn Indoor Racquet Club, five other tennis clubs in the Wayne County area, the Michigan Indoor Tennis Association and Edward C. Roney, Jr., its presi dent. Suit against all defendants is based on the differential price charged for male and female memberships. In the case of the Dearborn Club the membership charge was $85 for males and $65 for females. Similar, though not identical, differential charges were made by the other five named defendant clubs. Plaintiff claims that the differential membership charge is in violation of the Michigan public accommodations act, 1931 PA 328, MCL 750.146 et seq.; MSA 28.343 et seq., is an illegal contract and constitutes a conspiracy in restraint of trade.
On December 1, 1975, defendants filed an omnibus motion to dismiss. May 4, 1976, the trial court dismissed the complaint as to all defendants except Dearborn Indoor Racquet Club. January 26, 1977, the remaining defendant, Dearborn Indoor Racquet Club (Dearborn Club) filed a motion for summary judgment. Following oral argument the trial judge granted the motion and on February 23, 1977, an order dismissing the case with prejudice was entered. Plaintiff moved for rehearing but the matter lay dormant for almost two years until February 26, 1979, when the Dearborn Club moved to dismiss plaintiff’s motion for rehearing. On June 15, 1979, the trial court denied plaintiff’s motion for rehearing and reaffirmed his earlier order granting summary judgment. From this order plaintiff appeals of right.
At a deposition hearing, plaintiff stated that he joined the Dearborn Club in June of 1975 but never played tennis there or, prior to instituting suit, had even entered the club building for the reason that the weather outside had been favorable. He stated he was not a member of the other defendant tennis clubs but had received mail from them soliciting his joining. He further stated that he had no knowledge of anyone who was denied access to the Dearborn Club or any of the other named clubs except through differential annual membership fees. He stated that his legal counsel in the instant action shared law offices with Martin K. Magid, plaintiff in a companion class action suit filed in Oakland County Circuit Court at the same time as the instant case. That case, encap-tioned Magid v Oak Park Racquet Club Associates, Ltd, is reported at 84 Mich App 522; 269 NW2d 661 (1978).
In support of the motion for summary judgment counsel for defendant Dearborn Club states that the differential membership fee was a marketing device to persuade women who did not work during the day to use the club during day hours. Counsel also argued by way of an affidavit from club management that the fee differential was justified by disparate costs of providing separate locker room, separate toilet and other gender-related facilities. In denying plaintiff’s motion for a rehearing the trial court indicated that summary judgment in favor of the Dearborn Club was granted because "the construction maintenance cost justified the differential fee”. The court further stated that a difference in the fee charged did not per se constitute discrimination and that "the use of the courts, the cost of the facility, and certainly the entire aim of the organization involved was in no way indirectly excluding or discriminating against men”.
Plaintiff’s complaint contains five counts. Count I alleges that charging a membership fee which is higher for men than for women violates § 146 of the Michigan public accommodations act, MCL 750.146; MSA 28.343. Count II alleges that certain advertising contained in brochures disseminated by the tennis clubs violates § 147 of the Michigan public accommodations act, MCL 750.147; MSA 28.344. Counts III and IV allege that the contracts between the class members and the clubs were illegal and the defendant Michigan Indoor Tennis Association conspired in restraint of trade. Count V contains class action allegations and seeks damages for members of the class of $3 million, plus treble damages of $9 million, plus punitive damages of $12 million.
Counts I, III and IV
In response to a question from this Court at oral argument, plaintiffs counsel stated that, except for the names of the parties and the dates, the allegations contained in Counts I, III and IV in the instant case were identical to the allegations found in Counts I, III and IV in Magid v Oak Park Racquet Club, supra. In that case a different panel of this Court held:
"As plaintiffs did not allege a withholding, refusal or denial of accommodations in Count I, summary judgment for failure to state a cause of action was proper.
"As we held above, plaintiffs’ membership contracts were not illegal as alleged in Count I. Therefore, there could be no unjust enrichment of defendants from allegedly illegal contracts. Count III was properly dismissed.
"An allegation of conspiracy, standing alone, is not actionable. Roche v Blair, 305 Mich 608; 9 NW2d 861 (1943); 16 Am Jur 2d, Conspiracy, § 44, at 150. Plaintiffs must allege a civil wrong resulting in damage caused by the defendants. Id. As stated above, any 'monetary discrimination’ against plaintiffs is not actionable. Therefore, the trial court did not err in holding that Count IV failed to state a cause of action.” 84 Mich App 522, 528, 529.
Though this Court has the option to disregard the prior opinion of a separate panel, we find no reason to do so in the instant case. The facts in the present case, are so similar to those in Magid "as to be nearly congruent”. Danyo v Great Lakes Steel Corp, 93 Mich App 91, 96; 286 NW2d 50 (1979). Accordingly, we hold that as to Counts I, III and IV Magid controls.
However, as to Count I, plaintiff does raise an issue which was not raised in Magid. Plaintiff contends that the Elliott-Larsen Civil Rights Act, MCL 37.2101 et seq.; MSA 3.548(101) et seq., has replaced the Michigan public accommodations act and further, that even if it has not replaced the former statute, Elliott-Larsen should be applied retroactively. We disagree on both grounds. Elliott-Larsen did not become effectiye until almost two years after plaintiff initiated the present action. Furthermore, it does not repeal or replace any part of the public accommodations act. See MCL 37.2804; MSA 3.548(804). A statute is not applied retroactively unless the Legislature clearly and unequivocally expresses that intent. Fletcher v Aetna Casualty & Surety Co, 80 Mich App 439, 445; 264 NW2d 19 (1978), aff'd 409 Mich 1 (1980). No section of the statute states or remotely suggests that it is to be retroactively applied.
Plaintiff also raises an issue, not addressed in Magid, that the trial court improperly based its decision on the assumption that plaintiff was a member of the Dearborn Club only for the purpose of bringing suit. While the court did suggest such fact in ruling on the motion for summary judgment, at the motion for rehearing the court denied any such assumption.
Count II
Section 147 of the public accommodations act reads in relevant part:
"Any person * * * who shall directly or indirectly refuse, withhold from or deny to any person any of the accommodations, advantages, facilities and privileges thereof or directly or indirectly publish * * * any written or printed communications * * * to the effect that any of the accommodations, advantages, facilities and privileges of any such places shall be refused, withheld from or denied to any person on account of * * * sex * * * or that any particular * * * sex * * * is not welcome, objectionable or not acceptable, not desired or solicited, shall * * * be deemed guilty of a misdemeanor * * *; and every person being an owner * * * and who violates any of the provisions of this section, shall be liable to the injured party, in treble damages sustained, to be recovered in a civil action.” (Emphasis supplied.)
In Magid, supra, the defendant tennis clubs had refused to furnish plaintiff with copies of the advertising materials which described the alleged differential rates and privileges. Because the advertising was unavailable, this Court reversed the trial court’s grant of summary judgment and remanded to determine:
"[W]hether defendants advertised that plaintiffs would be refused and/or were unwelcome or unsolicited. This was not addressed by the trial court and must be decided on remand.” Id., 528.
In the case before us copies of all advertising material of the Dearborn Club were attached to the affidavit of Ted Jax, the club manager. In response to the Jax affidavit the plaintiff filed his own affidavit to which he attached copies of the advertising material in dispute. Thus, as to Count II, we have the alleged printed communications which the Dearborn Club published, circulated or mailed, and can ourselves determine without remand whether § 147 has been violated.
The language "with uniform prices” which is found in § 146 does not appear in § 147. Therefore, the advertised price differential does not in itself constitute a violation of the statute. Violation occurs if the advertising states or fairly implies that the club facilities are denied, withheld, or refused on account of sex, or that any particular sex is not acceptable, welcome, or solicited. We have carefully examined the brochures and advertising material and find nothing therein which states or implies a withholding or denial of club facilities. To the contrary, the price differential is designed to encourage membership and make the club facilities more available to both sexes. At the deposition hearing plaintiff conceded that the purpose of the advertising was to encourage both male and female membership.
"Q. (By Mr. Ufer, continuing): What is your opinion as to the purpose of that advertisement? Is it to encourage male membership in the club?
"A It is to encourage membership.
''Q. Is it to encourage male membership?
'A Membership-at-large.
"Q. Male and female?
"A. Male, female, whatever.
"Q. It is to encourage membership on an equal basis?
"A. Not an equal basis.
”Q. Aside from the rate differential?
"A. Aside from that, I would speculate that it is fair.”
There being no evidence that plaintiff was not welcome, not desired or not solicited or that the club facilities were denied or withheld, we conclude that summary judgment was properly entered for defendant on Count II.
Count V
The final issue concerns the propriety of the trial court’s rulings on the maintenance of a class action. The trial court ruled that plaintiff might maintain a class action against the defendant club of which plaintiff was a member. Defendant Dear-born Club has filed a cross-appeal on this issue. The trial court also held that plaintiff could not maintain a class action against the five defendants of which he was not a member. From this ruling plaintiff has appealed.
As to the ruling that plaintiff might maintain a class action against the Dearborn Club, we find no error. However, the matter becomes moot in view of the fact that, though the class action was proper, summary judgment was properly granted in favor of the Dearborn Club as to Counts I, II, III and IV.
Did the trial court err when it dismissed the class actions against the five defendants of which plaintiff was not a member? We think not. Clearly, plaintiff has no cause of action under § 146 against a club of which he is not a member. Further, one may not sue in a class action a defendant whom one could not sue individually. Stutelberg v Practical Management Co, 70 Mich App 325, 341; 245 NW2d 737 (1976), Magid, supra, 531. Theoretically plaintiff may maintain a class action suit under § 147 against clubs of which he is not a member. He claims he received published material to the effect he would not be welcome or acceptable at those clubs. Thus, plaintiff would have standing to sue those defendants if the publications were a violation of the statute. But, as discussed in Count II, the publications were not a violation of the statute. Thus, although plaintiff would have standing to assert his claims against defendants of which he was not a member, he has failed to assert a valid cause of action against them. Accordingly, the trial court properly dismissed the class action against the five named clubs.
Affirmed. Costs to defendants.
In his brief plaintiff explains that "[t]he instant case was put on the 'back burner’ while several issues common to both cases were before this court” and "[wjhile the court addressed some of the issues raised herein in Magid, appellant is again submitting the issues not only because they are present in this case, but because appellant feels that he can shed additional light on them.”
1976 PA 453, effective March 31, 1977.
"I stated at that time briefly on the record that I did not make a finding of fact as to whether or not the plaintiff, Mr. Tucich, joined this club for the sole purpose of bringing this law suit. Certainly based on what has been before me, one might arrive at that conclusion, but it would only be conjecture since there has been no testimony and no allegation of fact other than Mr. Tucich’s own Affidavit, and, therefore, I can make no finding at that time, and would attempt to make no finding.” | [
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Per Curiam.
On January 16, 1980, defendant was convicted of attempted larceny by false pretenses, MCL 750.218; MSA 28.415 and MCL 750.92; MSA 28.287. On February 5, 1980, he was sentenced to three years probation with the first six months to be served in the Detroit House of Corrections. Defendant appeals his conviction as of right, raising two issues for our consideration.
Defendant was charged with falsely representing himself to be the owner of a black leather jacket which in fact belonged to J. L. Hudson Company. It was alleged that defendant sought to exchange this black leather jacket for a brown leather jacket.
The prosecution’s case was presented primarily through the testimony of two witnesses, a salesperson in the men’s clothing department at Hudson’s and a plain-clothes store detective. The prosecutor accurately summarized the evidence as follows:
"/Assistant Prosecutor]: Your Honor, the defendant comes into a department of a store carrying a silver bag. With that bag over his shoulder, he has a conversation with a sales person relative to a refund on a leather jacket. The clerk tells this defendant at that time that he has to have the sales receipt. The defendant then goes — we have certain people seeing things— but the defendant then goes, selects a leather jacket that belongs to that store and places it next to his garment bag, flips it over, carries it up to the counter, places it on the bottom and then carries it up to the top, then has a conversation about an equal exchange with the clerk. The exchange then goes on or the clerk has a conversation relative to the exchange and she gets permission to do so. The exchange then goes on to some extent. The clerk takes that jacket, places it on the rack. The defendant waits there. There is a picking of another jacket to exchange it with and then the defendant is arrested.”
Defendant’s first contention is that the trial judge erred in denying his motion for a directed verdict based on the prosecution’s alleged failure to prove that defendant falsely represented himself to be the owner of the black leather jacket.
Due process requires that, before a defendant can be convicted of a criminal offense, the prosecutor introduce sufficient evidence which could justify a trier of fact in reasonably concluding that the defendant is guilty beyond a reasonable doubt. People v Hampton, 407 Mich 354, 368; 285 NW2d 284 (1979). The standard of appellate review when a directed verdict has been denied is essentially the same, although the evidence must be viewed in a light most favorable to the prosecution. People v Hampton, supra. Defendant argues that a rational trier of fact could not have found that defendant falsely represented himself to be the owner of the black leather jacket unless an impermissible "inference upon an inference” was drawn. People v Atley, 392 Mich 298, 314-315; 220 NW2d 465 (1974).
Reasonable inferences may be drawn from established facts; it is the pyramiding of inferences which is impermissible. People v Clay, 95 Mich App 152, 159; 289 NW2d 888 (1980), citing People v Atley, supra, and People v McGregor, 45 Mich App 397; 206 NW2d 218 (1973). The fallacy of defendant’s argument lies in the fact that he has interpreted an inference drawn on circumstantial evidence as an inference upon an inference. The false pretense alleged in this case is that defendant represented himself to be the owner of the jacket when he was not. There is sufficient circumstantial evidence to infer the assertion of ownership. For example, there was the evidence produced that defendant was observed taking a jacket off a rack and placing it under his garment bag. This evidence was clearly inconsistent with the possibility that defendant was merely inquiring into refund and exchange policies. We find no error in the trial judge’s denial of defendant’s motion for a directed verdict.
Defendant’s next contention is that the trial judge abused his discretion in determining that the probative value of admitting evidence of defendant’s 1975 attempted armed robbery conviction for impeachment purposes outweighed its prejudicial impact.
The record indicates that initially the prosecu tion requested that evidence of defendant’s two prior felony convictions be admitted for the purpose of impeaching defendant’s credibility. The judge ruled that evidence of defendant’s 1971 larceny from a person conviction should be suppressed because of the number of years which had elapsed and the similarity to the crime charged. The judge did rule that evidence of the 1975 conviction for attempted armed robbery was admissible:
"However, the attempted robbery armed is a much more recent crime and while it does involve theft as does the essence of this crime, nevertheless, the Court feels the crimes are sufficiently dissimilar that the same criteria that I applied in the larceny, does not necessarily apply here and I think it would be unfair to our system of justice to deny the prosecution the right, for credibility only, of course, to bring out the fact that in 1975, he was convicted of attempted] robbery armed.”
MRE 609(a)(2) allows the use of evidence of prior convictions for impeachment if the trial judge determines that the probative value of admitting the evidence outweighs its prejudicial impact. The decision to allow impeachment by evidence of prior convictions is within the discretion of the trial court, People v Jackson, 391 Mich 323; 217 NW2d 22 (1974), and will not be reversed on appeal absent an abuse of discretion. People v Jones, 98 Mich App 421, 433; 296 NW2d 268 (1980). See also Spalding v Spalding, 355 Mich 382, 384-385; 94 NW2d 810 (1959) (defining abuse of discretion).
The factors which the judge must consider in making his determination on the admissibility of evidence of prior convictions for impeachment were set forth in People v Crawford, 83 Mich App 35, 39; 268 NW2d 275 (1978), and succinctly restated in People v Clay, supra, as follows:
"(1) the nature of the prior offense and its bearing on defendant’s credibility, (2) whether it is for substantially the same conduct for which defendant is on trial, with closely related offenses requiring close scrutiny due to the likelihood of prejudice, and (3) the effect on the decisional process if the defendant does not testify out of fear of impeachment.”
The record indicates the trial judge clearly recognized his duty to exercise his discretion and evaluate the probative versus the prejudicial effect of his decision. It is also clear that he considered factors one and two as set forth in People v Crawford, supra.
What is not clear from the record is whether the judge considered factor three, the effect if defendant does not testify out of fear of impeachment. During argument on the motion to suppress, defense counsel’s only argument to the court was that the prior crimes were similar. Defense counsel did not discuss the probability that, in the event that evidence of his prior convictions was admitted, defendant would not testify. It was only after the judge ruled that counsel announced his client’s intention not to take the stand.
In People v Jones, supra, this Court cited a recent federal court case, United States v Cook, 608 F2d 1175 (CA 9, 1979). In Cook, the defendant elected to remain silent after the court ruled that evidence of his prior convictions would be admissible for impeachment. On appeal, Cook asserted that the chilling effect of the court’s preliminary ruling changed the course of his trial and prejudiced his defense. In the course of reviewing and upholding the trial court’s ruling, the Court stated:
"In future cases to preserve the issue for review, a defendant must at least, by a statement of his attorney: (1) establish on the record that he will in fact take the stand and testify if his challenged prior convictions are excluded; and (2) sufficiently outline the nature of his testimony so that the trial court, and the reviewing court, can do the necessary balancing contemplated in Rule 609.” Id., 1186.
The judge in the instant case could not be expected to articulate his assessment of what effect defendant’s failure to testify would have on the decisional process when defendant did not indicate his intentions on the point. In People v Jones, supra, this Court held:
"Defense counsel did not assert that the defendant would testify if his record were suppressed, and neither defendant nor his lawyer said what his testimony would be. What could it be? * * * The trial judge referred to MRE 609 and permitted use, for impeachment, of defendant’s three convictions, all recent, because they involved theft, a kind of dishonesty which would be especially probative of where the truth lies in this case. We cannot say that the court’s ruling was wrong, much less an abuse of discretion, although the convictions were for the same or similar crimes.
"A judge who refers on the record to MRE 609(a) and quotes language in subparagraph (1) of that rule must be credited with recognition and performance of the function imposed upon him by subparagraph (2) of that rule when he decides the suppression motion.” Id., 434. (Emphasis added.)
Similarly, in the case at bar, the judge recognized his duty and weighed the various factors known to him. He allowed only one of the prior convictions, the one he considered to be dissimilar and most recent. The making of this ruling cannot be construed as an abuse of discretion.
Affirmed.
N. J. Kaufman, P.J., concurs in result only.
The elements of larceny by false pretenses are summarized in pertinent part as follows in CJI 23:7:01:
"[1] the defendant must have used a pretense or made a false statement relating to either past or then existing facts and circumstances. A pretense is any statement, device, trick, document, writing or object which is false.
"[2] at the time he made or used the pretense, the defendant must have known it to be false.
"[3] at the time he made or used the pretense, the defendant must have intended to defraud or cheat someone.
"[4] the person alleged to have been defrauded must have relied on the false pretense made by the defendant.
"[5] in so relying that person must have suffered the loss of some money or other valuable thing.
"[6] the property which was taken must have had a fair market value which exceeded, that is, was over, $100 at the time of the obtaining of the property.” (Footnotes omitted.)
See also People v Cage, 410 Mich 401; 301 NW2d 819 (1981).
Finally, because the charge involved an attempt, the prosecution must prove that the defendant performed an act beyond mere preparation towards committing the crime. See CJI 9:1:01(4). | [
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G. R. McDonald, J.
Defendant James B. Medrano was found guilty by a jury of criminal sexual conduct in the third degree, MCL 750.520d(l)(b); MSA 28.788(4)(l)(b), and was sentenced to 7-1/2 to 15 years in prison. He now appeals as of right.
The prosecution’s case was based primarily on the testimony of the complaining witness. She stated that on September 3, 1978, she voluntarily went on a motorcycle ride with defendant. Defendant drove to a park, where the two got off the motorcycle and walked to a tree near a clearing. There, defendant spread his coat on the ground, threatened complainant and removed her clothes. The two had sexual intercourse, during which defendant pulled up complainant’s bra and sucked on her breasts. Defendant denied coercing or threatening complainant, claiming that the sexual relations were consensual. After intercourse, the parties went to a restaurant for lunch and defendant took complainant home. There, blood was discovered on complainant’s pants.
Defendant initially claims on appeal that the trial court erred in refusing to suppress the admission into evidence of complainant’s blood-stained slacks and underpants. Defendant challenged the admission into evidence of these articles at a pretrial suppression hearing on relevancy grounds, arguing that the probative value of the items was outweighed by their inflammatory nature. The trial court considered the possible prejudice to be minimal and denied defendant’s motion.
MRE 401 defines "relevant evidence” as "evi dence having any tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence”. Here, the questions of whether penetration occurred and whether it was coerced were crucial to the determination of guilt or innocence. Complainant testified that she felt defendant’s penis within her vagina and that it was painful. She further indicated that the blood stains on her clothes were not there prior to intercourse and that they were unrelated to menstruation. The physician who examined complainant following the incident testified that he found a bruising of the posterior portion of the opening to the vagina, with blood oozing from that location. He stated that the injury was consistent with attempted forced entry.
The slacks and underpants corroborated the testimony of complainant and the examining physician. As evidence they made it more probable that forced penetration took place. Thus, it is clear that the items had probative value. While relevant evidence may be suppressed if its probative value is substantially outweighed by its prejudicial impact, admission is nonetheless a matter within the trial court’s discretion. MRE 403, People v Ingram, 36 Mich App 160, 162; 193 NW2d 342 (1971). Under the facts of this case we find no abuse of discretion.
Defendant also argues on appeal that the trial court erred in refusing to instruct on the offense of gross indecency, MCL 750.338b; MSA 28.570(2). While gross indecency is not a necessarily included lesser offense of third-degree criminal sexual conduct, the two offenses do have overlapping elements. Gross indecency may consist of oral or manual sexual acts committed without consent. People v Howell, 396 Mich 16; 238 NW2d 148 (1976). Third-degree criminal sexual conduct essentially involves nonconsensual sexual penetration. Therefore, gross indecency may be considered a cognate lesser included offense. See People v Ora Jones, 395 Mich 379; 236 NW2d 461 (1975). Complainant’s testimony that defendant sucked on her breast without consent would have supported a guilty verdict of gross indecency and an instruction on that offense would have been appropriate. Id.
Nonetheless, the lower court’s refusal to so instruct does not mandate reversal. Instructions were given on the lesser included offenses of attempted criminal sexual conduct in the third degree, MCL 750.520d(l)(b); MSA 28.788(4)(l)(b), MCL 750.92; MSA 28.287, as well as criminal sexual conduct in the fourth degree, MCL 750.520e(l)(a); MSA 28.788(5)(l)(a), yet the jury convicted defendant of the charged offense. We conclude that the jury had no reasonable doubt as to defendant’s guilt of the charged offense and that his conviction was not the result of the mere belief that he was guilty of some wrongdoing. The jury had ample opportunity to assuage any doubts by convicting defendant of one of the lesser offenses, but chose not to. Hence we perceive no prejudice in the trial court’s refusal to instruct on gross indecency. Cf., People v Herbert Ross, 73 Mich App 588, 592; 252 NW2d 526 (1977).
Defendant’s final claim on appeal is that the trial court erred in providing the jury with written portions of the jury instructions. During deliberations the jury requested written definitions of the charged and lesser included offenses. The court provided the attorneys with copies of the definitions, and all agreed that they were legally correct. Defendant argues on appeal that this procedure requires reversal, since it emphasized the offense elements to the detriment of other portions of the instructions. Defendant points out that the jurors did not receive additional instruction on the burden of proof and presumption of innocence, on circumstantial evidence, on the credibility of witnesses, on police officers as witnesses and on the defendant’s theory of the case.
The issue is one of first impression in Michigan. We note initially that the purpose of instructions is to enable the jury to understand and apply the law to the facts of the case. People v Lambert, 395 Mich 296, 304; 235 NW2d 338 (1975). There is no contention that the original oral charge did not adequately perform this function. However, the jury’s request reveals that its members were uncertain as to the definitions of the offenses and, perhaps, the differences between the offenses. It was within the trial court’s discretion to further instruct the jury. GCR 1963, 516.4, People v Johnson (On Rehearing), 71 Mich App 602, 607; 248 NW2d 633 (1976). Because the written definitions only functioned to aid the jury in following the earlier oral instructions, no prejudice to defendant is apparent. Cf., State v Frank, 284 NC 137; 200 SE2d 169 (1973). Neither the court rules nor case law specifically prohibit the use of written instruc tions. See 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 564. Therefore, we perceive no abuse of discretion in reinstructing in writing.
However, we do not intend this opinion to signal our general approval of the practice of providing juries with such written definitions. Specific rules outlining the proper procedure, as well as limits on the practice, are more appropriately left to the Supreme Court. While the use of written instructions has received approval in a majority of jurisdictions considering the question, the practice is not a matter beyond debate. 91 ALR3d 382. The usefulness of written instructions is obvious. Even in simple cases, instructions tend to be long and complex, and it may be unreasonable to expect oral instructions to be fully remembered. Access to written instructions could promote jury efficiency by saving the time spent in recollection and debate over what the instructions were. See Copeland v United States, 80 US App DC 308; 152 F2d 769 (1945). On the other hand, it is conceivable that written instructions might needlessly prolong deliberations. Jurors could endlessly reread a charge, debating real or imagined legal distinctions. Access could also cause undue weight to be given to particular portions of a charge. Because of a desire to make the written instructions identical to those given orally, delay in the commencement of the deliberations could result because of the time necessary to mechanically reproduce the oral charge. We conclude that, while written instructions may well serve as an important aid to the jury’s function, widespread use would best be preceded by definitive guidelines from the Supreme Court. Nonetheless, we perceive no prejudice to defendant through the use of written instructions in this case.
Affirmed.
People v Richardson, 409 Mich 126; 293 NW2d 332 (1980), does not mandate reversal in this case. In Richardson, jury rejection of the offense upon which the court refused to instruct could not be logically inferred from rejection of the lesser offenses actually instructed on. The defendant’s theory of the case was that he did not intend for his actions to cause the decedent serious bodily harm. Instruction on second-degree murder and voluntary manslaughter did not provide an outlet for the jurors had they accepted the defendant’s version of the incident. Here, defendant’s request for instruction on gross indecency was based on his theory that complainant consented to intercourse, but not to having her breast sucked. However, if the jury had believed that theory it could have convicted defendant of criminal sexual conduct in the fourth degree. | [
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D. C. Riley, J.
This appeal arises from a legal malpractice lawsuit instituted as a result of defendant Grant’s allegedly negligent defense of plaintiff corporation in a separate lawsuit for attorney fees by a law firm that had previously represented plaintiff. Defendant appeals the jury verdict in favor of the plaintiff for $5,000.
The events giving rise to this lawsuit began around 1970 when Basic Food became interested in acquiring a Detroit company and making it a subsidiary. Basic Food retained a law firm to represent its legal interest with respect to this acquisition. When the firm submitted its bill for legal services to Basic Food, a dispute arose and the law firm sued for unpaid attorney fees alleging that Basic Food was liable on a contract claim for $8,900 or, in the alternative, on a quantum meruit basis for $15,000 (later amended to $300,000).
In March, 1971, Basic Food retained defendant to defend it in the lawsuit for attorney fees. Basic Food’s chairman of the board sent defendant a retainer check and instructed him to "aggressively pursue our rights in this case”. The defendant filed an answer to the complaint against Basic Food, stating only that the allegations of the complaint were denied. Correspondence from the defendant to Basic Food’s chairman of the board indicates that they agreed that a counterclaim against the law firm for malpractice would be an effective means of forcing a settlement. Basic Food directed defendant to depose mémbers of the law firm so that the counterclaim could be filed prior to the running of the malpractice statute of limitations.
About a year later, defendant attempted to file a counterclaim against the law firm, but his motion for leave was denied. Defendant then filed a separate lawsuit against the law firm but a panel of this Court ruled that the statute of limitations had run.
During the two and one-half-year period between his retention as counsel and the time of trial, the defendant failed to take any depositions or discovery even though he had been repeatedly asked by Basic Food’s chairman when he would do so. Nor did he seek to depose an expert witness of the plaintiff even though he had been advised approximately a month before trial of plaintiffs intention to use this witness.
In the instant trial, defendant testified that he listed six witnesses on the pretrial statement that he had prepared for Basic Food. One of the witnesses listed was Basic Food’s chairman. The pretrial order issued by the pretrial judge indicated, however, that Basic Food would use only one witness, namely their chairman of the board. Shortly before trial, Basic Food’s chairman became ill and was, therefore, unable to testify at trial. During the course of trial, defendant did not attempt to amend his witness list so that others could testify for Basic Food in its chairman’s absence. Approximately ten days after the trial began, defendant attempted to call Basic Food’s treasurer to testify, but the trial judge disallowed this testimony since defendant had made no attempt to amend his pretrial statement to add the treasurer as a witness.
Defendant rested his case without having introduced any evidence on behalf of Basic Food. He subsequently attempted to call a witness who had been listed on Basic Food’s pretrial statement but the court refused to reopen defendant’s case.
Following the trial, the jury returned a verdict against Basic Food in the amount of $25,000. On appeal, this Court affirmed the judgment.
Basic Food thereupon instituted this suit against defendant for legal malpractice, contending that defendant’s failure to depose one of the plaintiffs principal employees despite repeated written promises to do so, his failure to file the counterclaim timely, his failure to investigate or ascertain the facts constituting the defense to the attorney fee suit, and his failure to engage in any discovery whatsoever, resulted in judgment against Basic Food in an amount greater than it should have been held justly liable for.
Defendant appeals the jury’s $5,000 verdict and the court’s denial of his motions for a directed verdict, judgment notwithstanding the verdict and new trial.
Defendant first contends that the judgment for plaintiff must be reversed since plaintiff failed to show that it would have prevailed in the prior litigation had the defendant not been negligent. The contention is that this so-called "case within a case” burden is an essential element of a claim for legal malpractice. Plaintiffs theory, on the other hand, is that the defendant is liable because his conduct maximized the chances of their opponent in the underlying suit and thus led to a higher damage award than would otherwise have been returned by the jury.
The precise question raised on appeal would appear to be an issue of first impression in Michigan. In an action against an attorney for negligence or breach of implied contract, the plaintiff has the burden of proving: (1) the existence of the attorney-client relationship; (2) the acts which are alleged to have constituted the negligence; (3) that the negligence was the proximate cause of the injury and; (4) the fact and extent of the injury alleged. 7 Am Jur 2d, Attorneys at Law, § 223, p 266. The standard of care of an attorney was stated in Eggleston v Boardman, 37 Mich 14, 16 (1877), as follows:
"Whenever an attorney or solicitor is retained in a cause, it becomes his implied duty to use and exercise reasonable skill, care, discretion and judgment in the conduct and management thereof.”
See also Babbitt v Bumpus, 73 Mich 331; 41 NW 417 (1889).
In the instant case, undoubtedly an attorney-client relationship existed. Further, evidence presented at trial by plaintiff showed that the defendant breached his duty of care by failing to make any pretrial discovery, failing to file a counterclaim timely as had been requested by his client, and by failing adequately to inform his client of its drastically increased exposure to liability. In addition, while defendant did seek to adjourn the trial upon learning that his sole witness would be unavailable, the defendant failed to mitigate the effects of the court’s denial of his request by attempting, for example, to procure the chairman’s testimony by deposition or to move to amend his witness list so that another witness could have filled the gap presented by the chairman’s illness.
The last two elements which must be established to make out a prima facie case of malpractice, proximate causation and damages, have proven to be problematic.
"The factor which has occasioned most difficulty to clients attempting to charge attorneys with liability for negligence in connection with litigation has been the necessity of proving that the damages claimed resulted from the alleged misconduct. The recovery sought is usually the value of the claim in suit in the proceeding in which the negligent act occurred, if the client was a plaintiff in that action, or, if he was a defendant, the amount of the judgment imposed upon him, and, in accordance with general rules as to proximate cause, it is generally held that before such recovery can be had the client must establish that, absent the act or omission complained of, the claim lost would have been recovered or the judgment suffered avoided. Accordingly, the client seeking recovery from his attorney is faced with the difficult task of proving two cases within a single proceeding.” 45 ALR2d 5, § 2, p 10.
As another commentator has stated the matter:
"A client’s burden of proving injury as a result of his attorney’s negligence is especially difficult to meet when the attorney’s conduct prevented the client from bringing his original cause of action or the attorney’s failure to appear caused judgment to be entered against him as a defendant. In addition to proving negligence, a client must show that but for his attorney’s negligence he would have been successful in the original litigation; in effect, he must prevail in two distinct suits.” Note: Attorney Malpractice, 63 Columbia L Rev 1292, 1307 (1963). (Emphasis added.)
We believe that the following language, quoted recently by the Wisconsin Supreme Court, will serve to remove some of the confusion surrounding a lawyer’s liability.
" ' "[A]n attorney must be held to undertake to use a reasonable degree of care and skill, and to possess to a reasonable extent the knowledge requisite to a proper performance of the duties of his profession, and, if injury results to the client as a proximate consequence of the lack of such knowledge or skill, or from the failure to exercise it, the client may recover damages to the extent of the injury sustained * * Gustavson v O’Brien, 87 Wis 2d 193, 199; 274 NW2d 627 (1979), quoting Malone v Gerth, 100 Wis 166; 75 NW 972 (1898). (Emphasis added.)
The Gustavson court went on in its opinion to distinguish cases where plaintiffs were required to prove a "suit within a suit” in order to recover damages based upon an attorney’s negligence.
"In Cosgrove [General Accident Fire & Life Assurance Corp, Ltd v Cosgrove, 257 Wis 25; 42 NW2d 155 (1950)] the lawyer’s failure to settle the bill of excep tions resulted in the client losing his right to appeal. The [Cosgrove] court said the client would have to show that he would have been successful on appeal in order to prove that the lawyer’s negligence had resulted in damage. Since loss of a right to appeal in itself has no value the court’s conclusion was consistent with the law on negligence. An appeal has value only if it can be won. ” Gustavson, supra, 199. (Emphasis added.)
From the authorities cited above, it would appear that the "suit within a suit” concept has vitality only in a limited number of situations, such as where an attorney’s negligence prevents the client from bringing a cause of action (such as where he allows the statute of limitations to run), where the attorney’s failure to appear causes judgment to be entered against his client or where the attorney’s negligence prevents an appeal from being perfected. In such cases, it is at least arguably true that the suit within a suit requirement serves to insure that the damages complained of due to the attorney’s negligence are more than mere speculation. The concept, however, is wholly without value in cases such as the one at bar, as the Gustavson court demonstrates. Rather, the attorney’s liability, as in other negligence cases, is for all damages directly and proximately caused by the attorney’s negligence. See Smith v Lewis, 13 Cal 3d 349; 118 Cal Rptr 621; 530 P2d 589 (1975) (holding that a client suing his lawyer for malpractice need not prove a suit within a suit).
In Professional Liability of Trial Lawyers: The Malpractice Question, published in 1979 by the American Bar Association, Section of Insurance, Negligence and Compensation Law, the commentator emphasizes that "the client’s injury might not be that there was an adverse judgment, but rather the amount of the judgment”.
We believe that the "suit within a suit” requirement should, as a matter of sound public policy, be limited to the types of cases we have described above. Requiring the plaintiff in all cases to show that he would have prevailed completely in the former action as a condition precedent to recovery in a subsequent malpractice action is a harsh requirement that would preclude otherwise meritorious claims. If the attorney’s negligence results in a verdict against his client that is larger than what would have been returned in the absence of his negligence, then the attorney should be held liable for the increased amount of the judgment.
We do not believe it is sufficient in the instant case to justify defendant’s inactions on the basis that they were mere errors of judgment. It is a well-settled principle that an attorney who "acts in good faith and in an honest belief that his acts and advice are well founded and in the best interest of his client” will not be held liable because his advice turns out to be poor. 7 Am Jur 2d, Attorneys at Law, § 201, p 250. See also Babbitt v Bumpus, supra, and Hodges v Carter, 239 NC 517; 80 SE2d 144 (1954). Even the Babbitt Court recognized, however, that a lawyer may be liable for errors of judgment that are "very gross”. 73 Mich 331, 338. We do not believe a lawyer can act with impunity and avoid malpractice liability merely because professional judgment of the attorney is at issue. Since everything an attorney does is based on his professional judgment, a contrary holding would seriously undercut the tort of legal malpractice. We, therefore, reject defendant’s claim that he was found liable for a mere error in judgment.
Finally, defendant contends the trial court erred when it denied his motion for a judgment notwithstanding the verdict or motion for a new trial.
The standard of review for judgment notwithstanding the verdict motions was recently summarized by this Court in Sabraw v Michigan Millers Mutual Ins Co, 87 Mich App 568, 571; 274 NW2d 838 (1978):
"A judgment notwithstanding the verdict on defendant’s motion is appropriate only if the evidence is insufficient as a matter of law to support a judgment for the plaintiff. Jackson v Fox, 69 Mich App 283; 244 NW2d 448 (1976). In making that determination, the court must give the plaintiff the benefit of every reasonable inference that could be drawn from the evidence. Kroll v Katz, 374 Mich 364; 132 NW2d 27 (1965). If reasonable men could honestly disagree as to whether the plaintiff has satisfied his burden of proof on the necessary elements of his cause of action, a judgment notwithstanding the verdict is improper. Kroll v Katz, supra, Jackson v Fox, supra. ”
Applying this test, the evidence adduced at trial certainly was not insufficient as a matter of law to support a judgment for the plaintiff. The record shows that plaintiff presented competent evidence with respect to each element of the tort of legal malpractice. Defendant’s claim, that the jury’s original verdict demonstrates that it found no damages, is without merit. The jury found damages, but it merely failed to cast its award of damages in a dollar amount. The trial court’s response to the original verdict addressed solely the improper form of the verdict. The trial court made no comment to the jury which compromised its determination of the factual merits of the case. The judge did not abuse his discretion when he directed the jury to resume their deliberations and return with a dollar figure to make a proper verdict. Alvarado v Scutt, 81 Mich App 421; 265 NW2d 357 (1978), lv den 403 Mich 807 (1978).
It is well settled that the granting or denying of a motion for new trial lies within the sound discretion of the trial judge and will not be disturbed on appeal unless a clear abuse of discretion is shown. Hegeman v Lucky Drug Stores, Inc, 28 Mich App 629; 184 NW2d 766 (1970), People v Alexander, 72 Mich App 91; 249 NW2d 307 (1976).
Defendant argues that he is entitled to a new trial because the trial judge did not give certain instructions which the defendant had requested. However, there was no evidence in the record to support defendant’s requests for instructions on plaintiffs alleged negligence, ratification or estop-pel. A party is only entitled to jury instructions on theories that are supported by the evidence. Instructions should not be given where there is no evidence to support them. Cryderman v Soo Line R Co, 78 Mich App 465; 260 NW2d 135 (1977).
The defendant’s challenge to the instruction given by the court on the requisite standard of care is also without merit. The refusal of the trial court to give a certain requested instruction is not error where the instruction given clearly states the applicable law. Tanis v Eding, 280 Mich 440; 273 NW 761 (1937). The trial court’s decision not to use the language of Babbitt, supra, in its charge was not erroneous since the charge given accurately stated the applicable law.
The trial judge did not abuse his discretion in denying defendant’s motion for new trial.
Affirmed.
At the final pretrial conference in the original suit that was held in September, 1973, the plaintiff law firm amended its complaint to raise the quantum meruit claim to $300,000. In his report by letter to Basic Food regarding this pretrial conference, defendant herein did not specifically inform plaintiff herein that their potential liability had been increased by such a large amount, although it was in the pretrial statement attached as an appendix. There is some testimony that would indicate that defendant herein did not inform his client of its drastically increased exposure to liability until approximately one week prior to trial.
A general tenet of the law of damages is the rule of certainty. The rule of certainty requires that proof of damages be based upon factual evidence, not on mere speculation. See Oleck, Cases on Damages, ch 6, p 132 etseq., (1962).
Many of the reported legal malpractice cases have been based upon an attorney’s failure timely to perfect an appeal or the failure to commence a lawsuit within the time prescribed by the applicable statute of limitations. In such cases, it would appear, as the Gustav-son court (Gustavson v O’Brien, 87 Wis-2d 193, 199; 274 NW2d 627 [1979]) observed, that the suit within a suit requirement has been imposed in order to satisfy the rule of certainty, thereby insuring that the claimed damages are more than mere guesswork. | [
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E. A. Quinnell, J.
Plaintiff appeals by leave granted from an order of the Workers’ Compensation Appeal Board (WCAB). The WCAB determined that plaintiff was disabled from his employment as a truck driver for the period of August 15, 1978, to July 11, 1979, inclusive. This judgment constituted a slight modification of the decision of the hearing referee who had found that plaintiff’s disability had ended on June 15, 1979. The WCAB also affirmed the hearing referee’s decision that defendant was not liable for the payment of benefits for those weeks in which plaintiff’s earnings at his second job as a teacher exceeded $240 per week. The underlying facts pertinent to this dispute follow.
Plaintiff has been employed as a teacher since 1968. Beginning in 1971, plaintiff also began working, during the summer recess, as a truck driver for defendant. The work with defendant included loading and unloading trucks, and processing and delivering freight. In late July or early August, 1978, plaintiff was injured when he attempted to lift open the back door of a truck. Plaintiff experienced pain across his lower back and groin. A hernia resulted, which was subsequently repaired and is not a factor in plaintiff’s claim of disability. However, plaintiff claims that his back is tender to this day, and he uses heat treatments and muscle relaxers to relieve the pain.
Despite his injury, plaintiff continued working until the end of the summer of 1978, at which time he returned to teaching. The injury has not interfered with his ability to teach. Moreover, from June, 1979, until March, 1980, plaintiff worked at both his teaching and trucking jobs. As to his job with defendant, the injury forced plaintiff to modify the manner in which he worked; he avoided heavy lifting and made use of a hi-lo. Plaintiff’s last day of work with defendant was April 4, 1980, at which time he was laid off. Plaintiff remains employed as a teacher. Other facts will be set forth where relevant to the specific issues raised by plaintiff.
Plaintiff’s sole meritorious claim on appeal is that the WCAB committed legal error in determining that he was not entitled to workers’ compensation benefits for those weeks in which his weekly earnings as a teacher exceeded $240. In reaching this determination, the WCAB relied upon the last sentence of MCL 418.371(1); MSA 17.237(371X1), which stated at the time of plaintiff’s injury: "The compensation payable, when added to his [the employee’s] wage earning capacity after the injury in the same or another employment, shall not exceed his average weekly earnings at the time of such injury.” The WCAB held that plaintiff had not established two simultaneous wage-earning capacities because, at the time of the accident, he had not been working both jobs at the same time but, rather, only worked for defendant while he was off summers from his teaching job.
This appeal raises an issue of first impression as no prior appellate decision has addressed the applicability of MCL 418.371(1); MSA 17.237(371X1) in a case in which at the time of the injury the plaintiff had two full-time jobs which were performed at different times of the year. Nonetheless, we believe that existing precedents provide us with substantial guidance and compel the reversal of the WCAB’s determination that MCL 418.371(1); MSA 17.237(371X1) is applicable here.
In Bowles v James Lumber Co, 345 Mich 292; 75 NW2d 822 (1956), in construing the precursor to the current statutory provisions, the Supreme Court interpreted the "another employment” phrase appearing in the statute as referrring only to employment which the employee has undertaken because his disability prevented him from continuing in the original job. In Bowles, the claimant suffered the loss of a thumb which disabled him in his part-time employment. However, this injury did not disable the claimant in his full-time job. The Court held that the claimant’s earnings in the full-time job could not be considered in determining the amount of compensation benefits payable as a result of the disability in the part-time job, reasoning that, since the employer’s liability could not be increased by taking into consideration the earnings on the other job, neither could the other earnings be used to decrease liability. See, also, Lahay v Hastings Lodge No 1965 BPOE, 398 Mich 467, 479-480; 247 NW2d 817 (1976) (part-time and full-time jobs performed concurrently, rather than in succession as here, which held MCL 418.371(1); MSA 17.237(371)(1) only applies to a worker who obtains substitute employment to replace the job from which he is disabled); Morris v Metals Engineering Manufacturing Co, 122 Mich App 404; 332 NW2d 495 (1983).
Workers’ compensation disability benefits are intended to compensate for a loss of wage-earning capacity, not the loss of wages. See, e.g., Sims v RD Brooks, Inc, 389 Mich 91, 93; 204 NW2d 139 (1973). Thus, in Hairston v Firestone Tire & Rubber Co, 404 Mich 104; 273 NW2d 400 (1978), where the claimant had two full-time jobs and wage-earning capacities, the Court held that where the claimant was injured on each and disabled from both he was entitled to full compensation from each employer. Clearly, then, plaintiffs impaired capacity as a truck driver is compensable regardless of the fact that plaintiff continues to teach.
Since defendant’s liability could not have been increased had the injury also disabled plaintiff as a teacher, since plaintiffs job as a teacher was not a substitute for his work as a truck driver but, rather, was an independent employment performed during his summers, beginning long before the injury, and since, as the WCAB implicitly found, plaintiff had two earning capacities at the time of the injury, only one of which was affected by the disability, we reverse the WCAB’s determination that MCL 418.371(1); MSA 17.237(371X1) applies here. We remand this case to the WCAB so that it may redetermine the weekly benefits to which plaintiff is entitled without applying MCL 418.371(1); MSA 17.237(371)(1).
We briefly address plaintiffs other claims on appeal. Plaintiff asserts that, in finding his recovery on July 11, 1979, the WCAB delegated its fact-finding responsibilities to the medical experts. This is simply not supported by the record. The WCAB’s opinion clearly weighs the medical testimony, as well as the other evidence, and concludes that plaintiff was disabled only until July 11, 1979.
In support of this contention, plaintiff cites Da tion v Ford Motor Co, 314 Mich 152, 157; 22 NW2d 252 (1946), in which the Supreme Court found unconstitutional a provision of the Worker’s Disability Compensation Act permitting the WCAB to appoint a three-member medical panel empowered to make conclusive findings concerning the employee’s physical condition. The Dation scheme is no longer in existence.
Plaintiff also argues that the holding of Sanford v Ryerson & Haynes, Inc, 396 Mich 630; 242 NW2d 393 (1976), has been violated since that case held that a finding of disability may be based solely on the claimant’s testimony. While we have no quarrel with this proposition, Sanford does not hold that the WCAB is conclusively bound by the employee’s claim of disability, regardless of the evidence to the contrary, as plaintiff here seems to argue. While lay testimony may not be ignored, it also need not be believed or adopted by the WCAB as dispositive. Kostamo v Marquette Iron Mining Co, 405 Mich 105, 131; 274 NW2d 411 (1979).
Plaintiff also argues that the WCAB’s conclusion that he was disabled from his employment with defendant only through July 11, 1979, as a consequence of a work-related injury is unsupported by the evidence. The WCAB’s findings of fact are conclusive in the absence of fraud if there is any competent evidence to support the findings. E.g., Fuchs v General Motors Corp, 118 Mich App 547, 552; 325 NW2d 489 (1982).
Plaintiff contends that the testimony of both medical experts establishes that strain on his back experienced during his employment with defendant aggravated an underlying congenital condition and resulted in disability. In fact, Dr. Francis Baker testified that, although plaintiff should not lift over 25 pounds, this was because of his congen ital back structure and not because of any injury sustained at work which caused a disability. While Dr. Gerald Benaderet believed that the lifting required by plaintiffs employment "further created” a back problem which disabled plaintiff, he agreed that plaintiff had a congenital back problem, and, for this reason alone, plaintiff would be unwise to do heavy lifting. Dr. Benaderet found plaintiff to be asymptomatic on November 30, 1979, and Dr. Baker found no objective indicia of disability on July 11, 1979. The WCAB’s findings are clearly supported by competent evidence and must be affirmed.
Affirmed in part, reversed in part, and remanded to the WCAB for proceedings consistent with this opinion. We do not retain jurisdiction. No costs, neither party having prevailed in full.
The current version of MCL 418.371(1); MSA 17.237(371X1) would not lead to a different result. The last sentence of this provision now reads: "The compensation payable, when added to the employee’s wage earning capacity after the personal injury in the same or other employments, shall not exceed the employee’s average weekly earnings at the time of the injury.”
The provision was embodied in MCL 412.11; MSA 17.161. | [
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Gribbs, J.
Defendant was convicted by a jury of armed robbery, MCL 750.529; MSA 28.797, and of breaking and entering with intent to commit larceny, MCL 750.110; MSA 28.305. He was sentenced to 10 to 20 years imprisonment for the armed robbery, and to 3 to 15 years for the breaking and entering, the sentences to run concurrently. Defendant appeals as of right. We affirm.
In the middle of the night two men awoke the victim in her bedroom, held a knife to her throat, smothered her with a pillow and demanded money. After tying the victim up with a telephone cord, the men took two television sets, a wedding ring, a remote control device, approximately $53, and her car keys. At 2:30 a.m. police officers observed two men, one of them defendant, in the vicinity of the victim’s house. The two men were observed carrying a television set in the victim’s backyard and garage. Defendant departed in the victim’s Mustang. The other man left in an Oldsmobile. Police pursued the cars and apprehended both men. Defendant had a remote control device and approximately $53 on his person. A television set was found in the back seat of the Mustang.
The victim was freed by the police. They searched her house and found the basement windows open, one of them broken, and a tire iron nearby. The victim testified that her windows had been secured and intact prior to her retiring for the night.
On appeal, defendant raises several issues, none of which require reversal.
Double Jeopardy
Defendant argues that his convictions of both armed robbery and breaking and entering with intent to commit larceny violate the double jeop ardy clauses of the United States and Michigan Constitutions.
Legal Double Jeopardy
The Double Jeopardy Clauses of the Michigan and the United States Constitutions protect against multiple prosecutions and multiple punishments for the "same offense”. North Carolina v Pearce, 395 US 711, 717; 89 S Ct 2072; 23 L Ed 2d 656 (1969); People v Wakeford, 418 Mich 95, 103; 341 NW2d 68 (1983). The inquiry under multiple punishment "legal” double jeopardy is whether or not two offenses are the same offense. Wakeford, supra, p 105, fn 9. Legal double jeopardy claims are resolved by ascertaining the intent of the Legislature. Wakeford, pp 105-106. Defendant claims that armed robbery and breaking and entering with intent to commit larceny are the same offense because of their overlapping larceny and intent to commit larceny elements.
Where, as in this case, two separate statutes are violated, legal double jeopardy analysis focuses on whether or not each statute requires proof of a fact which the other does not, notwithstanding substantial overlap of proofs offered to establish the crimes. Blockburger v United States, 284 US 299, 304; 52 S Ct 180; 76 L Ed 306 (1932); Iannelli v United States, 420 US 770; 95 S Ct 1284; 43 L Ed 2d 616 (1975); Wakeford, supra, p 106, fn 10. In other words, does each of the offenses require proof of an additional or different element? Blockburger, p 304.
Under this test, defendant’s two convictions do not violate the federal or state Double Jeopardy Clause. Breaking and entering does not require proof that a larceny occurred, only that it was intended, People v Blankenship, 108 Mich App 794; 310 NW2d 880 (1981), lv den 412 Mich 857 (1981); People v Flores, 92 Mich App 130; 284 NW2d 510 (1979), lv den 407 Mich 932 (1979), whereas armed robbery requires proof that a larceny occurred, but does not require proof of breaking and entering. People v Karasek, 63 Mich App 706, 710-711; 234 NW2d 761 (1975), lv den 395 Mich 800 (1975); see People v West, 122 Mich App 517; 332 NW2d 517 (1983). Under the legal double jeopardy test, defendant’s convictions and punishments are separate and distinct and do not twice place him in jeopardy.
Factual Double Jeopardy
"Factual” double jeopardy is an interpretive gloss placed on the Michigan Constitution’s Double Jeopardy Clause. Factual double jeopardy exists if, despite the violation of two separate and distinct statutes, the Legislature nevertheless intended that only a single conviction result. Wakeford, pp 105-109, and fn 9. Factual double jeopardy does not depend on whether or not most or all of the same evidence is utilized to convict, but looks to the legislative intent and statutory purpose. The "one single wrongful act” test suggested by previous Michigan case law has been disavowed. Wake-ford, pp 110-111. The factual double jeopardy doctrine simply asks whether the Legislature authorized multiple punishments under the circumstances. Wakeford, p 111. This Court has recently found such authorization for multiple punishments for breaking and entering with intent to commit larceny and armed robbery. People v Wise, 134 Mich App 82; 351 NW2d 255 (1984).
A claim of factual double jeopardy is difficult to sustain when two offenses are separate and distinct under the legal double jeopardy analysis. Wakeford, p 110, fn 14. When the offenses are separate under legal double jeopardy, a presumption in favor of multiple punishment arises. It can only be rebutted by the clearly expressed legislative intent that only a single conviction and punishment is authorized. Wakeford, p 110, fn 14. Conversely, when two offenses are the same under the legal double jeopardy test, a presumption against multiple convictions and punishments arises, which can be rebutted only by a clearly expressed legislative intent indicating otherwise. Wakeford, p 110, fn 14. Thus, claims of factual double jeopardy, like those of legal double jeopardy, are to be resolved by ascertaining the intent of the Legislature.
Our conclusion that defendant’s convictions are for two separate and distinct offenses under the legal double jeopardy analysis creates the presumption that the Legislature intended two convictions and punishments. Wakeford, p 110, fn 14. This presumption is not rebutted by a clearly expressed legislative intent authorizing only a single conviction and punishment. See People v Wise, supra. Defendant’s claim of factual double jeopardy is not sustained._
Defendant’s Theory of the Case
Defendant contends that the trial court’s failure to instruct sua sponte on defendant’s theory of the case constituted error.
GCR 1963, 516.7(a), as amended in 1980, provides that "[t]he court shall present to the jury the issues in the case and, if a party requests after the close of the evidence, that party’s theory of the case” (emphasis added).
This Court has held that, under GCR 1963, 516.7, failure of the trial court to instruct sua sponte on defendant’s theory of the case is not reversible error. People v Wilson, 122 Mich App 1; 329 NW2d 513 (1982), lv den 417 Mich 1085 (1983); People v Peery, 119 Mich App 207; 326 NW2d 451 (1982); People v Smith, 85 Mich App 404; 271 NW2d 252 (1978), rev’d on other grounds 406 Mich 945; 277 NW2d 642 (1979); People v Trammell, 70 Mich App 351; 247 NW2d 311 (1976).
Other panels have found reversible error for failure to instruct sua sponte on defendant’s theory, but under circumstances distinguishable from this case. In those cases, defendant’s theory mitigated, justified or negated an element of the charged offense. E.g., People v Hearn, 100 Mich App 749; 300 NW2d 396 (1980) (consent; CSC I); People v Stanley Jones, 69 Mich App 459; 245 NW2d 91 (1976), lv den 401 Mich 831 (1977) (accident; first degree murder); see also People v Gayton, 81 Mich App 390; 265 NW2d 344 (1978) (self defense; homicide). We interpret those cases as requiring a sua sponte instruction on defendant’s theory only if he presents a legally-recognized defense. People v Wilson, supra. Such is not the case here.
In this case, defendant’s testimony and "theory” was that he was not one of the men involved in the breaking and entering and robbery, that he was at the scene for other reasons, and that his incriminating statements to the police were involuntarily made. His theory did not encompass a legally-recognized defense reducing or negating his culpability. Defendant claimed he did not commit the offense. The trial was a credibility contest between defendant and the police who identified him as one of the perpetrators.
The trial court’s failure to instruct sua sponte on defendant’s theory of the case under the circumstances of this case was not error.
Ineffective Assistance of Counsel
Defendant contends that he was denied effective assistance of counsel by defense counsel’s failure to request an instruction on defendant’s theory of the case.
In Michigan, a two-prong analysis is applied to determine the merits of a claim of ineffective assistance of counsel: (1) constitutional 6th Amendment (did defense counsel perform at least as well as a lawyer with ordinary training and skill in criminal law and conscientiously protect his client’s interest?); and (2) nonconstitutional "serious mistake” (did defense counsel make a mistake so serious that, but for the mistake, defendant would have had a reasonably likely chance for acquittal?). People v Garcia, 398 Mich 250; 247 NW2d 547 (1976), reh den 399 Mich 1041 (1977); People v Coyle, 104 Mich App 636, 639; 305 NW2d 275 (1981), lv den 415 Mich 851 (1982).
Defendant raises only the second prong and contends that defense counsel’s failure to request the theory instruction was a "serious mistake”. We disagree. Even if defense counsel’s failure to request such an instruction was a mistake, it was not a mistake of such magnitude that it requires reversal. It did not create a real danger that defendant would be convicted erroneously. Garcia, supra.
Defendant’s position and testimony at trial was that he was innocently at the scene of the crime and was misidentified as one of the robbers. This was not a case which was factually complex, nor a case which involved a legal defense such as intoxication, mental illness, or self defense. An instruction on defendant’s theory would add little to the jury’s understanding of defendant’s theory. The trial involved a test of credibility between the police officers and defendant. A review of the record shows that the evidence supporting defendant’s conviction, if believed by the jury, was great. An instruction on defendant’s theory would not have given defendant a reasonably likely chance of acquittal. Garcia, supra, p 266.
Thus, defense counsel’s failure to request an instruction on defendant’s theory of the case was not a "serious mistake” and does not require reversal.
Jury Instructions
CJI 5:2:13
Defendant argues that the trial court’s refusal to give a requested cautionary instruction on the credibility of police witnesses, CJI 5:2:13, was error. He contends that the lack of this instruction, coupled with an instruction given that the jury could consider defendant’s interest in the outcome of the case, caused the jury to view defendant’s testimony in a different manner than the testimony of the police.
The omitted instruction provides:
"The fact that a witness is a police officer does not give his testimony any greater or lesser weight than the testimony of any other witness. You as jurors have the duty of [weighing/judging] the believability of the testimony of all witnesses and giving a witness’s testimony such weight as you believe it deserves under all of the circumstances you have observed, and this includes the testimony of police witnesses. Such testimony is to be judged by the same standards as any other testimony.” CJI 5:2:13.
A defendant has the right to have the jury pass on the evidence under proper instructions. People v Lambert, 395 Mich 296, 304; 235 NW2d 338 (1975); People v Bender, 124 Mich App 571, 574; 335 NW2d 85 (1983). However, no error results from the omission of an instruction if the instructions as a whole cover the substance of the omitted instruction. Bender, supra, p 575; People v Bradley, 62 Mich App 39; 233 NW2d 177 (1975). The instructions must be viewed in their entirety to determine if reversible error has occurred. People v Owens, 108 Mich App 600; 310 NW2d 819 (1981), lv den 412 Mich 866 (1981).
The trial court, although denying the request for CJI 5:2:13, instructed the jury as follows:
"In this case some police officers have offered testimony tending to show that the defendant was one of the persons who committed the crimes. In considering whether the prosecution has proved beyond a reasonable doubt that the defendant is the person or one of the persons who committed the crimes, you should consider the opportunity of a particular witness to observe the criminal acts and the person or persons committing them, including the length of time available for observing, whether or not the witness had occasion to see or know the defendant before the incident, the distance between the various parties, the light or lack of light at the time, the state of mind of the witness at the time, and any other circumstances which may have effected [sic] the opportunity of the witness to observe the person or persons committing the offense.”
The trial court also instructed the jury that they could consider defendant’s interest in the outcome of the case and the reasonableness of his testimony in light of all the evidence. This instruction was proper. People v Williams, 208 Mich 586; 175 NW 187 (1919); People v Nash, 61 Mich App 708, 715; 233 NW2d 153 (1975). We distinguish People v Beck, 96 Mich App 633, 637; 293 NW2d 657 (1980), where the court instructed on defendant’s interest in the outcome, but did not instruct the jury to view his testimony in light of all the evidence.
The court further instructed the jury that they were to consider the evidence and testimony of all witnesses, that the evidence should be considered without regard to which side produced it, that the defendant’s testimony was to be considered in the same light and with the same measurement as that of other witnesses, that the prosecution bears the burden of proving guilt beyond a reasonable doubt, and that the jury should consider the factors which could affect the witnesses’ observations.
Viewed in their entirety, the instructions did not create a danger that the jury would view defendant’s testimony differently from the testimony of the police. The omission of the requested instruction was not reversible error.
CJI 3:1:10
Defendant further argues that the trial court’s failure to give CJI 3:1:10(6) and (7) on circumstantial evidence constituted error. The trial court gave general instructions on circumstantial evidence, but omitted the following instruction:
"(6) Circumstantial evidence must be considered by the following rules:
"(A) The circumstances themselves must be believed.
"(B) The circumstances must be consistent with guilt and inconsistent with innocence.
"(C) The circumstances must be of such a conclusive nature and tendency that they convince you beyond a reasonable doubt of the defendant’s guilt.
"(7) If the evidence is open to two reasonable constructions, one indicating guilt and the other innocence, it is your duty to accept the construction indicating innocence.”
Defense counsel did not object to the court’s failure to give this specific instruction, but raised the omission as error in a motion for a new trial. When no objection is made to an alleged error in the instructions, a verdict will not be set aside on the basis of such error unless it has resulted in a miscarriage of justice. People v Trammell, 70 Mich App 351; 247 NW2d 311 (1976); MCL 768.29; MSA 28.1052; MCL 769.26; MSA 28.1096, see also GCR 1963, 516.2. A miscarriage of justice occurs when the erroneous or omitted instructions pertain to a basic and controlling issue in the case. People v Hall, 77 Mich App 456; 258 NW2d 517 (1977), lv den 402 Mich 909 (1978). We find that the omission of CJI 3:1:10(6) and (7) did not result in a miscarriage of justice. These instructions were not required in this case.
The giving of CJI 3:1:10(7) is confined to cases where the circumstantial evidence against the defendant is weak. People v Freeland, 101 Mich App 501; 300 NW2d 616 (1980), lv den 417 Mich 963 (1983). In situations where the "evidence fa voring defendant’s theory of innocence [is] not reasonable in comparison with the construction favoring guilt”, the instruction is to be omitted. Freeland, supra, p 505. Otherwise, use of this instruction would render it difficult to obtain convictions in cases involving circumstantial evidence. Freeland, supra; see People v Hatch, 126 Mich App 399; 337 NW2d 79 (1983); People v Peete, 113 Mich App 510; 317 NW2d 666 (1982). In this case, the evidence against defendant was substantial. He was observed carrying a television set in the victim’s backyard and garage, he was identified as the driver of the stolen Mustang, and he was found with stolen property on his person. The evidence against defendant was not weak, and the giving of CJI 3:1:10(7) was not required.
Furthermore, CJI 3:1:10(6) and (7) incorrectly suggest that a burden of proof other than that of beyond a reasonable doubt is involved whenever there is circumstantial evidence. People v Corbett, 97 Mich App 438; 296 NW2d 64 (1980), lv den 411 Mich 856 (1981). This Court has disapproved of these instructions:
"Strangely, considering the voluminous commentary generally, CJI does not provide commentary on CJI 3:1:10 and the source of the so-called rules in paragraph (6) is unknown. Regarding those rules, (6)(A) seems to be a truism that need not be stated in instructions; (6)(B) appears to be a repetition of paragraph (7), discussed below and, like (6)(C), disregards the direct evidence. Paragraphs (6) and (7) seem to say that, to convict, the jury must be satisfied of guilt beyond a reasonable doubt from the circumstantial evidence alone. That is entirely incorrect. When there is both direct and circumstantial evidence, all of it should be considered.” Corbett, supra, p 444.
We also note that CJI 3:1:10 was amended in 1982, and paragraph (6) was omitted. See CJI 4:2:02. This amendment, however, was not effective until February of 1983, eight months after defendant’s trial.
We find that the trial court’s failure to give CJI 3:1:10(6) and (7) does not require reversal of the jury verdict.
Aifirmed.
The Blockburger test should be applied only to double jeopardy claims involving two different statutes. The seminal cases analyzing multiple punishment double jeopardy for violation of a single statute were the "unit of prosecution” cases in which the courts determined what constituted a single crime or offense under a particular statute. Wakeford, supra, pp 107-108. However, the Legislature’s authority to define a single criminal act or offense is not diminished by the Double Jeopardy Clause. This clause limits the prosecutor and courts, not the Legislature. Wakeford, supra, p 108.
Even under the “single wrongful act” test, e.g., People v Jankowski, 408 Mich 79; 289 NW2d 674 (1980), disavowed in Wakeford, supra, defendant’s convictions did not constitute double jeopardy. The intent to commit larceny element of defendant’s breaking and entering conviction could be reasonably inferred from circumstances other than the robbery. E.g., the nighttime entry, the broken window and tire iron; see People v Stevens, 130 Mich App 1; 343 NW2d 219 (1983). | [
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R. I. Cooper, J.
Defendants and plaintiffs entered into an agreement whereby the defendants purchased the plaintiffs’ vending machine route. The defendants executed a promissory note and security agreement in favor of plaintiffs in the amount of $40,000, bearing interest at the rate of 8% per annum and payable at the rate of $500 per month. The negotiations commenced around Christmas of 1976 and continued through April 1, 1977, at which time the closing occurred and the documents were executed. The documents were drafted by defendant Gordon Yowell, who was a licensed real estate broker. When asked by plaintiff Edward Osinski what the going rate of interest was, Mr. Yowell replied that the going rate was 8-1/2%. Mr. Osinski indicated he would be willing to accept 8% interest on the promissory note.
Plaintiffs filed suit on February 4, 1981, seeking a declaration that defendants were in default and demanding immediate payment of the unpaid balance. Further, plaintiffs sought a judicial sale of the secured property and a judgment for any deficiency. In their answer, defendants asserted that the interest rate on the promissory note was usurious contrary to MCL 438.31; MSA 19.15(1). No claim of fraud or mistake was asserted by plaintiffs.
The trial court entered a judgment on behalf of plaintiffs for $14,230 on the promissory note, said judgment being entered May 13, 1982. The trial court ruled that defendants were estopped from asserting the defense of usury and that the interest rate on all future payments would be at 7% per annum. In addition, the trial court determined that defendants were to pay 12% interest on the judgment, which was immediately due and owing, until the judgment was fully satisfied. Neither party was awarded attorney fees or costs.
The trial court observed that the promissory note, which set interest at 8%, would be an apparent violation of the usury statute in Michigan in that under the circumstances of the case interest would be limited to no more than 7%. Further, the trial court observed that Mr. Yowell admitted he had been a real estate salesman and real estate broker who had a degree of familiarity with sales and legal documents far beyond that of the plaintiffs. The trial court found that Mr. Yowell prepared the documents and that Mr. Osinski did not know anything about the usury statute. The trial court observed that it could not say that Mr. Yowell knew that the rate would constitute usury and in fact suspected Mr. Yowell did not know it would constitute usury. However, the trial court found that when a person has superior or apparent knowledge and prepares the legal documents and either knows or should know that a contract is illegal, he should be estopped from later claiming usury. Under the circumstances in this case and considering the suggestions Mr. Yowell orally made to Mr. Osinski as to the going interest rate, the trial court held that the defendants should be estopped from claiming usury.
On appeal plaintiffs cite Green v Grant, 134 Mich 462, 467; 96 NW 583 (1903), as follows:
"It is the essence of an usurious transaction that there shall be an unlawful and corrupt intent on the part of the lender to take illegal interest, and so we must find before we can pronounce the transaction to be usurious.” Quoting Condit v Baldwin, 21 NY 219, 221 (1860).
Plaintiffs apply Green in the sense that defendants had superior knowledge and that there was no showing whatsoever that plaintiffs intended to take illegal interest from the defendants.
The Green case, which relies on New York law, is cited thereafter in various Michigan cases. The Green case involved a situation where the rate of interest set in the mortgage was within the statutory limit. However the mortgage agreement also required payment of all taxes by the mortgagor. The aggregate of taxes and interest exceeded the legal limit by 3/4 of 1%. The Green Court thus found that a contract is not usurious per se because the aggregate of interest reserved and taxes paid exceeds the maximum allowed by statute. The Green Court thus barred the defense of usury on the grounds that it was not established that the lender knew that the aggregate amount would exceed the statutory limit.
As stated in Green, the Court was sympathetic to the concept of estoppel, even though not referred to as such, by stating that an unlawful or corrupt intent was the essence of an usurious transaction. However a series of cases decided after Green significantly limited the trial court’s ability to apply equitable concepts. For example, the case of Houghteling v Gogebic Lumber Co, 165 Mich 498; 131 NW 109 (1911), dealt with a transaction whereby the defendant issued bonds at a 10% discount to the plaintiffs. The defendant executed a mortgage in favor of the plaintiffs to secure the amount of money received from the plaintiffs. The Houghteling Court found that the transaction was a loan and not a sale, thus determining the 10% discount was in fact a rate of interest in excess of the statutory limit and was thus usurious. The Houghteling Court observed that the parties had negotiated as business persons familiar with business matters. However, the following quoted language contains the controlling law that was applied:
"If there was a mistake of law, that, it is conceded, would be no excuse. * * * [T]he clear legal effect of a contract makes unimportant the intent with which it was made, when it is sought to enforce it according to its terms. We were not inattentive at the hearing, and we have not been at chambers, to the argument that modern business methods and business convenience may be judicially taken notice of, and that courts, in considering such questions as the one presented upon this record, should declare valid contracts which conform with, and are but expressions of, business necessities and convenience, when it is apparent that no actual wrong or oppression was intended, and where, from the business standpoint, none has resulted. The Legislature has declared contracts, such as the one in question, usurious. The courts may not disregard the statute, invoked as it is by a party to the contract. It is the Legislature alone which has power to amend the law.’ 165 Mich 503.
The Houghteling case was soon followed by Union Trust Co v Radford, 176 Mich 50; 141 NW 1091 (1912), which, like Green, involved a mortgage which set a legal rate of interest but also included a requirement for payment of taxes based on the capital stock of a corporation. The Union Trust Court observed that the mortgaged land constituted a part of the capital stock and that, if it were not for the mortgage, there would not have been a tax on the capital stock. The Union Trust Court held as follows when it found the mortgage to be usurious:
"[T]he question of intent is to be considered in determining whether or not a contract is usurious; but where, as in this case, the contract is unambiguous and its legal meaning clear, the parties must be deemed to have intended the result expressed by the contract.” 176 Mich 58.
The Union Trust case was followed by Sickles v Schaen, 202 Mich 327; 168 NW 454 (1918), in which the mortgage agreement was set at 7%, which was the maximum amount allowed at that time. However, in addition, the mortgagor was required to pay any taxes assessed on the mortgage. The Sickles Court cited Green, supra, to the effect that there must be an unlawful and corrupt intent to invoke usury, but that such intent may be inferred as follows:
"If, at the time the contract was made, he knew that the aggregate of interest reserved and taxes to be paid would exceed the statutory rate, — as he would if the interest reserved was the maximum interest, — the contract is usurious.” 202 Mich 331.
The above cited post-Green cases all found that there was a lack of evidence that the lenders intended to engage in usury, but that the agreements were usurious.
The case of Union Guardian Trust Co v Crawford, 270 Mich 207; 258 NW 248 (1935), provides a limited analogy regarding the concept of estoppel. In the Crawford case the defendant borrowed a sum of money from the plaintiff and secured the same by a mortgage on land owned by the defendant. Again we have a situation where the interest charged was the highest rate legally allowed but was also accompanied by a requirement that the mortgagor pay taxes. Thus the mortgage arrangement was found to be usurious. However, the plaintiff argued that the mortgage was prepared by the defendant and, as such, the defendant should not be allowed to raise the defense of usury. The Crawford Court, in addressing the issue, did not specifically state that the concept of estoppel could not be raised. Instead it found that the plaintiff was a known financial institution and thus must be presumed to know the law of usury. Thus it was not allowed to successfully assert a claim of estoppel. By inference, the question of whether the issue of estoppel could be applied where a lender was not sophisticated enough to know the law of usury remained unanswered. However, the case of Bebee v Grettenberger, 82 Mich App 416; 266 NW2d 829 (1978), lays that issue to rest. In the Bebee case the plaintiff husband was a realtor who bought defendants’ inherited farmland under a land contract at 8%. Later the plaintiffs obtained a deed from the defendants so plaintiffs could obtain a first mortgage from a bank to obtain money to develop the property. The plaintiffs gave the defendant vendors, in return for the deed, a second mortgage on plaintiffs’ home, also at 8% with the same monthly payment amount and the same balance due as that set in the cancelled land contract. The usury statute allows only 7% interest on a second mortgage. The plaintiffs defaulted and defendants foreclosed by advertisement on the second mortgage. The plaintiffs filed a suit to rescind and secured an ex parte injunction on the foreclosure. The defendants filed a motion for summary judgment, which was granted, and the injunction against foreclosure was dissolved. The trial court said it would be absurd to allow the plaintiffs to request the change from a land contract to a mortgage and then, when the request is granted, to use it to avoid payment. The Bebee Court found that the mortgage was substantially different from the land contract in that the pay-off date was one year later, that redemption rights are different under a mortgage, that the realty secured by the mortgage was not the same as that involved in the land contract and that the mortgage was thus not an "alter ego” of the land contract, and that the 8% rate on the second mortgage on plaintiffs’ home was thus usurious. The Bebee Court concluded that the legislative intent was violated, even though it was done unintentionally and despite the fact that equities were in defendants’ favor and despite the fact that the defendants were blameless. The Bebee case provides a direct analogy to our present case in that one of our present purchasers also was a realtor and no intent to violate the usury statute was found by the trial court. Thus the Bebee Court also addressed a matter involving an allegation of superior knowledge and equitable estoppel by stating that legislative intent was nevertheless violated and such violation results in the imposition of the consequences set by statute. The penalties for violation of the usury statute are set forth in MCL 438.32; MSA 19.15(2):
"Any seller or lender or his assigns who enters into any contract or agreement which does not comply with the provisions of this act or charges interest in excess of that allowed by this act is barred from the recovery of any interest, any official fees, delinquency or collection charge, attorney fees or court costs and the borrower or buyer shall be entitled to recover his attorney fees and court costs from the seller, lender or assigns.”
Where a lender/seller seeks to enforce a usurious contract, the borrower/buyer can avail himself of the statute and have all of the interest he previously paid applied against any outstanding principal debt. Waldorf v Zinberg, 106 Mich App 159, 164; 307 NW2d 749 (1981), citing Michigan Mobile Homeowners Ass’n v Bank of the Commonwealth, 56 Mich App 206, 212-213, 216; 223 NW2d 725 (1974). See also McKenna v Wilson, 280 Mich 227, 231-232; 273 NW 457 (1937). If the borrower/buyer has voluntarily satisfied the entire obligation, or at least an amount over the principal amount, the lender/seller is entitled to retain the usurious interest paid. Waldorf, supra, p 165; Michigan Mobile, supra, p 213. The rationale is that since the borrower/buyer voluntarily paid the excess amount, he has waived his usury defense as to that amount. Michigan Mobile, supra, pp 213-214.
Based on the above cases, the trial court erred in allowing plaintiffs to keep the 8% interest paid through March, 1980, and to receive 7% interest on all future payments. We recognize the trial court’s attempt to be fair and equitable. However, this is not an equity case. This case involves interpretation of the usury statute and the underlying legislative intent behind it. Although the Legislature has provided a number of exceptions to the usury statute, it has not modified or amended its language to allow the relief sought by plaintiffs. Defendants are entitled to apply all of the interest they have paid on the loan to the remaining principal debt. Plaintiffs shall collect 12% interest on the judgment, calculated from February 4, 1981, which is the date that the complaint was filed, and which shall continue until the judgment is satisfied. MCL 600.6013(4); MSA 27A.6013(4). Judgment interest is statutory and mandatory and is designed to compensate a party for its loss of use of its funds. Militzer v Kal-Die Casting Corp, 41 Mich App 492, 496-497; 200 NW2d 323, lv den 388 Mich 789 (1972).
Based on MCL 438.32; MSA 19.15(2), the buyer is entitled to recover its fees and costs from the seller. Further, the defendants are awarded reasonable attorney fees and costs from plaintiffs, but only as to matters pertaining to their assertion of the usury defense.
Reversed and remanded for determination consistent with the opinion. | [
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M. J. Kelly, P.J.
Defendants-appellants, Lucille Walker, J. C. Collins, and Teresa Walker were convicted by a jury of three counts of kidnapping, MCL 750.349; MSA 28.581. Each defendant was found guilty on all three counts. A fourth defendant, Lidra Walker, was found not guilty. Lucille Walker was sentenced to 4 to 20 years in prison, J. C. Collins was sentenced to 3 to 20 years in prison, and defendant Teresa Walker to 6 months in the county jail and 2 years probation. These three appeals of right have been consolidated as the defendants were tried together. Our review of the record and briefs indicates that Lucille Walker was clearly guilty of federal and state civil rights violations and exploitation of the elderly, and probably guilty of larceny by trick and embezzlement, false personation, and perhaps other crimes, but not kidnapping. (We defer to the prosecutor’s exercise of discretion in the matter of what crimes to charge, but if there is inadequate legislation in this regard it should be brought to the attention of the Legislature.)
Since we find the elements of kidnapping missing we reverse all three convictions._
Facts
Defendant’s penchant for using aliases casts her conduct in suspicion. Lucille Walker is her legal name. She had apparently been born Lucille Cora Galvin and used the names Cora Galvin and Lucille Collins in her Miami activities and on her Florida bank accounts. She was also known variously as Miss Ross, Mrs. Miller, and Sylvia Kemble. Hereafter shé will be referred to as defendant. At best, the picture of defendant emerges as an opportunist with regard to the infirm elderly. She operated an "adult congregate living facility” in Miami, Florida, for which she obtained a one-year license on October 31, 1980. She also maintained a home for herself and defendant J. C. Collins (principally called Taft Collins) in Coral Gables, Florida. The two were never married but had lived together for many years. Defendant also had ownership interests with Collins in homes in Detroit and Oak Park, Michigan.
The genesis for her scheme or scam is best highlighted by the testimony of Sylvia Goldstein. Witness Goldstein was 74 years old at the time of trial. She had lived in defendant’s nursing/boarding home in Miami during 1979 and 1980. She paid defendant $800 a month for room and board. Defendant and Collins purchased the house at 13341 West 10 Mile Road in Oak Park sometime in June of 1981 and defendant brought Mrs. Gold-stein to the 10 Mile address where she continued to pay the $800 per month. She voluntarily and willingly came to Detroit. She said she was well treated and liked it at the house on 10 Mile Road.
Defendant’s success with Sylvia Goldstein and with another elderly but incompetent lady (Marian Rumsford), who was brought up after Mrs. Gold-stein and before the complainants, apparently prompted defendant to try it with four other residents of her Miami boarding house. These were 65-year-old Felicia Beneteau, 63-year-old Grace Chamberlain, 91-year-old Kathe Klassen, and 75-year-old Lillian Mizner. Two were receiving federal social security benefits and three had been living in defendant’s Miami boarding house for weeks to months. Mrs. Mizner apparently was not receiving social security benefits, but owned her own home in Miami and had a bank account containing approximately $5,000 in savings.
Mrs. Mizner gave the strongest testimony against defendant. She testified that she first met defendant when defendant appeared on her doorstep in July of 1981 and identified herself as a social security investigator. She stated that defendant wanted to take her to the bank. Neighbors of Mrs. Mizner testified that they brought her to the defendant’s Miami boarding home in late July of 1981. Mrs. Mizner paid $400 to defendant for her first month’s lodging, but was only at the home three days before she was transported with the others to Detroit.
The kidnapping charges concerned Mrs. Mizner, Grace Chamberlain, and Felicia Beneteau, as Kathe Klassen was declared incompetent to testify at the preliminary examination and was dropped as a complainant. We find that the complainants’ testimony did not establish the charges.
The four women were taken to the airport in Miami on August 1, 1981, and were accompanied on a Delta Airlines flight by defendant Teresa Walker, Lucille’s grandaughter. The group was met at the airport in Detroit by Teresa’s boyfriend and driven to the 10 Mile Road house in Oak Park where they remained a little less than two weeks. Defendants Lucille Walker and J. C. Collins did not fly with the group and did not arrive at the 10 Mile Road address until August 4, 1981,
The ladies’ perception of the trip from Miami to Detroit was the object of major emphasis by all defendants, but it is clear from the record that none protested and, although all felt manipulated, only Lillian Mizner thought she had been kidnapped. Mrs. Mizner testified that she had no intention of leaving Florida but that, when it became apparent at the airport that they were getting on a plane for Detroit, she did not "feel it would be any use to say a word”. She also gave the following testimony:
”Q. As you got to the airport, did you say something to anyone?
"A. Well, I said to them, to anyone at large, I said, 'this looks like a kidnapping for ransom’.
”Q. Who did you say that to?
"A. To the car in general, but I got no response.
* * *
”Q. Why did you say, this seems like a kidnapping for ransom?
"A. Well, it was very obvious.
"Q. What do you mean?
"A. Why would we be taken to another city, transported over state lines, if there was not something suspicious about it?”
No one else in the car testified to having heard Lillian Mizner drop that verbal bomb, and on cross-examination she diluted the impact of that testimony by saying that she made those remarks when she got on the plane. She defined kidnapping: "We were put on a plane and transported over state lines.” She further testified:
”Q. Did you see any policemen or guards posted at the airport?
"A. Oh, plenty of them and everything.
”Q. Did you say anything to them?
"A. I did not. I didn’t feel it was going to be a bit of use. She was going to say we’re incompetent and she was in charge of us.”
By necessity Mrs. Mizner referred only to Teresa Walker because she alone accompanied the four elderly ladies onto the airplane. Mrs. Mizner testified she knew they were going to Detroit when she saw the sign at the Delta ticket counter in the Miami Airport.
Mrs. Mizner’s brother-in-law, Leo Caron, age 69, lives in Quebec. He testified that he and his wife received a phone call the night of July 31, 1981, from a "Cora Galvin” who said Lillian was well and with her at the boarding home and asked him to try to get a lawyer to sell Lillian’s house. He spoke with Lillian on the phone and reported that Lillian "sounded nervous, quite nervous, and she said she didn’t want to go to Detroit and that they were going to put her through a psychiatric test. She certainly didn’t want that”. Mr. Caron also gave some fairly confusing testimony. He said he may have received another phone call from a Mrs. Miller saying Lillian was going to Detroit. He had an address for a house at 23591 Jerome in Detroit, which was later identified as Lidra Walker’s house, also located in Oak Park, about 3/4 of a mile from the 10 Mile Road address. (Lidra, Lucille’s daughter, was also prosecuted in this case but was found not guilty by the jury). Mr. Caron had a phone number with which to reach Lillian in the Detroit area, but it is not clear from the record whose phone that was. He also was told by someone, presumably Mrs. Miller, to call Attorney Arnold Weiner, a suburban Detroit area attorney. He believed that his sister-in-law was located at 2433 East Grand Boulevard in Detroit and that he knew how to reach her by phone. (The 2433 East Grand Boulevard address turned out to be a vacant lot, but defendant and J. C. Collins at some time had a house on East Grand Boulevard).
Mrs. Mizner’s Miami neighbor, John Boston, testified he spoke with Mrs. Mizner on Friday, July 29, 1981, shortly after bringing her to defendant’s boarding house. He said she appeared "afraid to talk” and "a little shaken” but she declined his offer to bring her back home with him.
A social worker in Florida, Eva Vidana, had placed the elderly ladies with defendant Lucille Walker and when she discovered the ladies had been removed from the boarding house she filed a missing persons report with the Miami police. The story became a media event and was heavily publicized all over the country. Around 2 a.m. on the night of August 13, 1981, the three complainants plus Marian Rumsford and Kathe Klassen were driven to Detroit Receiving Hospital and abandoned there after widespread television coverage to the effect that five elderly women were missing from a nursing home in Florida and thought to be in the Detroit area. It is not clear who drove them to the hospital. One of the ladies testified that defendant Teresa Walker drove them, another testified that defendant Collins drove them, defendant Lucille Walker suggested that Ed Sosnowski and James Miles transported the ladies after seeing their story on a television broadcast.
Conditions in the house on 10 Mile Road where the women were living were the subject of much conflicting testimony. Each of the three complain ants testified that she and three other ladies lived in the basement. One of the women identified the fourth lady as Marian Rumsford, two others said it was Kathe Klassen. Edward Sosnowski, a live-in handyman at the 10 Mile Road house, testified that some of the ladies lived in the basement. All of the defendants testified that only two ladies lived in the basement, those two were smokers and lived in the basement to accommodate their habit.
There was a leaky toilet in the basement and a plumber testified that he went to repair the toilet on August 4, 1981. He said that he saw several elderly women downstairs, that he was there about an hour, that the women were watching television, lying on their beds, or just walking around and that he spoke to them and found nothing to indicate that the ladies were being kept against their will.
The house had more than one phone. The ladies testified that they were told not to use the phone and that they were told not to go outside. Mr. Sosnowski said he told the ladies they could not go outside and they accepted that. But he also testified that the door was never locked except on the occasions when he left the premises. Two of the ladies testified they had never tried the back door to see if it was locked, but Lillian Mizner testified that Felicia Beneteau did try the back door and found it bolted. Grace Chamberlain said that she complained to defendant that they wanted to go back to Florida. Defendant told her that they could not get a flight due to the air traffic controllers’ strike.
Either defendant arranged an attorney interview to try to obtain a power of attorney or Mrs. Mizner said she wanted to talk with an attorney, so defendant arranged an interview with Mr. Ar nold Weiner. Mrs. Mizner testified on direct examination that she told him she was being kidnapped, but on cross-examination admitted that she said nothing about her current living situation to the attorney, that all she talked about was her money and her Florida property. Defendants also took Kathe Klassen to a bank in Oak Park, Mrs. Mizner accompanied them, and neither said anything to the people at the bank about their current living conditions.
It appears from the testimony that the house doors had locks but were often unlocked. Each lady admitted she had never tried to open any of the doors herself. Mrs. Mizner testified that, if they asked defendant if they could go outside and she said yes, they could and did and they did sit on the back porch.
There appear to be two primary legal issues. The first is whether kidnapping can be accomplished without force, and the second is whether the defendants inveigled the complainants into secret confinement or imprisonment. Stated another way the issue is whether there was sufficient evidence of each of the elements of kidnapping to sustain the convictions.
"When determining whether there is sufficient evidence to support their convictions, this Court must view the evidence in a light most favorable to the prosecution and determine whether a rational trier of fact could have found that the essential elements of the crime were proven beyond a reasonable doubt.” People v Delongchamps, 103 Mich App 151, 159; 302 NW2d 626 (1981).
The Michigan kidnapping statute, MCL 750.349; MSA 28.581, states:
"Any person who wilfully, maliciously and without lawful authority shall forcibly or secretly confine or imprison any other person within this state against his will, or shall forcibly carry or send such person out of this state, or shall forcibly seize or confine, or shall inveigle or kidnap any other person with intent to extort money or other valuable thing thereby or with intent either to cause such person to be secretly confined or imprisoned in this state against his will, or in any way held to service against his will, shall be guilty of a felony, punishable by imprisonment in the state prison for life or for any term of years.”
Force
As the Supreme Court aptly noted in People v Adams, 389 Mich 222, 229; 205 NW2d 415 (1973), "this statute is not a model of clarity”. The státute basically describes five different categories of kidnapping (see CJI, p 19-14); the trial court read to the jury the first and the fourth:
"The defendants are charged with the crime of kidnapping. Any person who shall wilfully, maliciously and without lawful authority, forcibly or secretly confine or imprison any other person within this state against her will, or shall inveigle or kidnap any other person with intent to cause such person to be secretly confined or imprisoned in this state against her will is guilty of this crime.”
The information on which defendants were prosecuted charged that defendants "did wilfully, maliciously and without lawful authority forcibly confine and/or secretly confine and/or imprison” each of the complainants against her will by transporting them from Florida "by fraudulent means and/ or against her will and did then and there forcibly secret [sic] or confine [complainant] in a house located at 13341 W. 10 Mile Road in Oak Park * * This contains elements of the first, second, and fourth categories of kidnapping (the third involves kidnapping for ransom, the fifth, involuntary service).
The trial court’s instructions to the jury on the elements to be proven in the case at bar were essentially those contained in CJI 19:1:04:
"First, the victim must have been forcibly confined or imprisoned, or the victim must have been secretly confined.
"Second, the victim must have been confined or imprisoned against her will and without lawful authority.
"Third, during the course of such confinement, the defendant must have either forcibly moved the victim or caused her to be moved from one place to another for the purpose of a confinement or imprisonment by the use of fraud, deception or inveiglement.
"Or must have hidden the victim and kept her in secret confinement.
"Movement is not sufficient if it is part of a crime other than kidnapping. The evidence must convince you beyond a reasonable doubt that the movement was for the purpose of abduction and kidnapping alone and not for any other crime.
"Fourth, during the course of such confinement the defendant must have kept the whereabouts of the victim secret. In determining whether the victim was so imprisoned, you should consider whether there was confinement, its length, whether other persons not so confined were made aware of the location of the victim, and whether this secrecy of confinement, if any, added any greater danger to the victim.
"Fifth, at or during the time of such confinement the defendant must have intended to so kidnap or confine the victim.
"Sixth, at the time of such confinement the defendant must have been acting wilfully, maliciously and without lawful authority. Wilfully and maliciously means the defendant intentionally confined the victim, knowing such confinement to be wrong, and that he or she did so without legal justification or excuse.”
However, the Criminal Jury Instructions which were prepared to go with the first or fourth sections of the statute contain only five elements. The trial court added, as its "third” element, asportation, which is found in the CJI for other sections of the kidnapping statute, but nowhere with the phrase "by the use of fraud * * *”.
The Supreme Court held in Adams, supra, p 238, that secret confinement is an alternative to the asportation element of kidnapping. The CJI commentary notes that secret confinement is rarely the basis for a kidnapping prosecution and there are no reported cases. The prosecution sought to prove that the ladies were either forcibly or secretly confined. The prosecutor’s briefs on appeal define force as including "fraud or duress or threats”. The prosecution cites no authority for this expanded definition of force. The record simply does not support the prosecutor’s assertions that the ladies were threatened. At most, the ladies’ testimony, while failing to indicate that threats were made, does indicate that they felt that complaints would be futile because, if they complained, they would be characterized as incompetent by the defendant.
Fraud generally connotes false representations which induce another to part with something of value. Grace Chamberlain testified that defendant first told her she was going on an overnight trip, then later mentioned a vacation and a picnic. Whether any of this induced Grace to go on the airplane is unclear since she also testified that she did want to get out of the Miami home for a change. Felicia Beneteau testified that she had been told that they were going to Detroit on a vacation. On the whole the testimony suggests that none of the ladies had a clear idea where they were going when they left Florida. Neither Lillian nor Felicia told defendant that they did not want to go; both testified that this was due to a fear that it would be useless to object because they were in defendant’s care and were compelled to do what defendant told them to do. Their testimony suggests that, if they had known exactly where they were going and what they would do there, they still would have gone. Perhaps this sense of compulsion stemmed from their own lack of choices. The only one who apparently had anyplace else to go was Mrs. Mizner and she declined the Bostons’ invitation to come back to their home. She clearly had an alternative which she had refused. She had been staying at the Bostons’ for about a year before going to the boarding house in Miami. On cross-examination Mrs. Mizner indicated that although she did not say that anyone had threatened or forced her "there is such a thing as coercing”.
Duress is distinct from fraud in that a party under duress acts knowingly but unwillingly whereas in fraud the party acts willingly but on false representations. The ladies’ responses in this case seem more akin to duress since they had at least some idea that they were going on a trip but apparently some did not want to go initially and some did not like ending up in the basement. We do not believe that mental coercion stemming from the defendant’s exercise of assumed authority over these complainants satisfies the force requirement of the kidnapping statute.
Cases cited in 1 Am Jur 2d, Abduction and Kidnapping § 13, pp 51-52, indicate several state courts have extended "force” to include threats, fraud and duress. We decline to extend the meaning of the term force to include mental coercion as opposed to physical coercion on the facts of this case. There is no evidence that the ladies’ confinement at the house in Oak Park was based on the use of threat or force. It appears that the ladies obeyed simply because they were told to. There is no evidence of what would have happened to them if they did not obey. We hold that defendant’s exercise of assumed authority over these ladies did not create a duress sufficient to constitute forcible confinement as used in the statute.
Secret Confinement
It is obvious that we are not here dealing with kidnapping in the conventional sense. These women were not forcibly seized and removed to a hiding place for the purpose of extortion. They were transported openly in tourist class seats on a Delta Airlines flight which was filled to capacity from Miami via Ft. Lauderdale to Detroit Metropolitan Airport. They exited through a public terminal. If there was any secret confinement it must have occurred in the first instance when the ladies left the airport and were transported in a private automobile to the house on 10 Mile Road. The ladies admitted that while at the house they saw, but did not complain to, an attorney, a bank clerk, two plumbers, a gas company meter man, and two handymen. The caretaker/handyman, who lived in the house and who would have to be construed as their jailer, Mr. Ed Sosnowski, was not charged. He and others testified that there were working phones in the house. Defendant said that there were four phones; this was not contradicted. The complainants testified that they were not allowed to use the phone and Mr. Sosnowski testified that he told them not to use the phone. None of the defendants attempted to use the phone. On cross-examination one defendant said she never asked whether she could use the phone because "I didn’t have anybody to call”. One of the complainants had a nephew in Lincoln Park whose phone number she knew and could have dialed but never did. When Mrs. Mizner was taken to see a lawyer she apparently never discussed her situation at the 10 Mile Road address with the lawyer. She talked only about her Florida real estate and her money. Two of the complainants were taken to a bank where according to the testimony of an employee of the bank a joint account was opened for 91-year-old Kathe Klassen with defendant under the name of Lucille Collins. No protestations were offered. The house itself was located on a busy street, very near a shopping center with neighbors next door and no curtains on the basement windows, and the ladies were often left alone and could have walked out of the house on any number of occasions. Certainly, they could have picked up the telephone and dialed zero at almost any time. There were many windows to the world open to them.
The prosecution contends that the failure of the ladies to communicate with anybody does not mean that the confinement was not secret because the ladies did not communicate out of fear. No cases are presented in support of this proposition and we have found none concerning a confinement similar to the case at bar, that is to say, where no physical force was involved. The Missouri Supreme Court construing Missouri’s kidnapping statute, which is similar to Michigan’s, decided:
"Secret confinement, within the meaning of § 559.240, does not require proof of total concealment and complete isolation whereby the victim is rendered invisible to the entire world. It is sufficient to show that the person kidnapped has been effectively confined against his will in such a manner that he is prevented from communicating his situation to others and accused’s intention to keep the victim’s predicament secret is made manifest.” State v Weir, 506 SW2d 437, 440 (Mo, 1974).
The court held that driving a woman through Kansas City streets to an open field and preventing her from waving or signaling to others constituted secret confinement. The opinion does not indicate how that defendant "prevented” the victim from waving. An unhelpful opinion from the Mississippi Supreme Court in Hinson v State, 360 So 2d 934, 935 (Miss, 1978), simply stated that a "careful review of the record discloses no evidence, none at all, of secret confinement”, without explaining what evidence might constitute secret confinement or what evidence was in the record. In another Mississippi case, Johnson v State, 288 So 2d 842 (Miss, 1974), the court ruled that transporting a man at gunpoint by car from a place where he had a right to be to a place unknown to his friends and acquaintances satisfied the requirement of secret confinement.
We decline to construe secret confinement so broadly as to include an occurance in the presence and in the view of so many witnesses as were present and testified in this case. The only Michigan case on point, People v Nodine, 36 Mich App 80; 193 NW2d 172 (1971), decided that the victim’s testimony that defendant held undercover agents at bay in his apartment at gunpoint was sufficient evidence to satisfy either the forcibly confined or secretly confined elements or both. That case establishes no precedent for elasticizing the word secret so that it blurs into the word silent.
We do not think it was the intention of the Legislature to apply the kidnapping statute to a situation where these defendants overbore the wills of ladies assigned to their adult care facility. We perceive the situation to be an exercise of assumed authority over the ladies, which these defendants clearly did not have, to remove them from a licensed home in Florida to an unlicensed facility in Michigan. Exploitation of these elderly persons, clearly wrongful, cannot be converted into kidnapping on this record. All of the complainants admitted going along with defendant’s plans, either because they were excited by the change from monotony, or because they had no one to call, or because they felt it would be futile to protest to anyone.
Having found no forcible seizing or confining and no secret confinement within the meaning of the kidnapping statute, we find it unnecessary to address any of the other claims of error urged by the defendants in this case.
Reversed.
Allen, J., concurred. | [
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Wahls, J.
As a result of structural defects in its waste treatment facility, plaintiff, the City of Marysville, filed an action against defendant, Pate, Hirn & Bogue, Inc., a firm of professional engineers. Defendant moved for accelerated judgment, asserting that the plaintiffs causes of action were time barred by MCL 600.5839; MSA 27A.5839. The trial court denied the motion, ruling that that statute is inapplicable to actions for damages for the defective condition itself and applied the professional malpractice periods of limitation contained in MCL 600.5805(4); MSA 27A.5805(4) and MCL 600.5838; MSA 27A.5838. Defendant appeals by leave granted on the issues of proper construction of Michigan’s architect and professional engineeer statute of limitations and the application of the general malpractice statute of limitations when there is a special statute of limitation. We affirm.
The facts are as follows. Pursuant to a contract entered into between plaintiff and defendant, a waste water treatment facility was constructed. In accordance with the plans and specifications prepared by defendant, the facility was completed under defendant’s supervision and was accepted and occupied by plaintiff in November, 1973. Defendant’s involvement ceased in May, 1975. In 1981, plaintiff became aware of leaking problems. Other problems soon followed. Plaintiff filed suit in 1983.
Defendant first argues that the trial court erred in determining that MCL 600.5839; MSA 27A.5839, Michigan’s architect and engineer statute of limitation, was not applicable to actions for damages for the defective condition itself, but was rather applicable only to actions for injury to persons or other property arising from the defective condition. MCL 600.5839; MSA 27A.5839 reads, in pertinent part, as follows:
(1) No person may maintain any action to recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained as a result of such injury against any state licensed architect or professional engineer performing or furnishing the design or supervision of construction of siich improvement more than 6 years after the time of occupancy of the completed improvement, use or acceptance of such improvement.
A statute is not open to construction by the courts unless the language used in the statute is ambiguous or where reasonable minds may differ. Sam v Balardo, 411 Mich 405, 418; 308 NW2d 142 (1981); Lansing v Lansing Twp, 356 Mich 641, 649; 97 NW2d 804 (1959). The statute in question is not clear and unambiguous, because minds could differ as to whether the statute applies to damage claims for deficiencies in the structure itself. The ambiguity results from the Legislature’s use of the term "arising out of,” which is undefined. Therefore, judicial construction of this provision is proper.
The standards to be applied to the process of judicial construction of statutes were summarized in Cliffs Forest Products Co v Al Disdero Lumber Co, 144 Mich App 215, 222-223; 375 NW2d 397 (1985):
The cardinal rule of statutory construction is to ascertain and effectuate the Legislature’s intent. Lansing v Lansing Twp, 356 Mich 641; 97 NW2d 804 (1959). Statutory language should be construed reasonably and the purpose of the statute and its objective should be kept in mind. Schoolcraft County Bd of Comm’rs v Schoolcraft Memorial Hospital Bd of Trustees, 68 Mich App 654; 243 NW2d 708 (1976), lv den 397 Mich 838 (1976). A provision should be read in its entirety and in connection with the rest of the statute. Whenever possible the meaning of one section of a statute should be read in harmony with the rest of the statute. Statutes are construed so that their words will have a reasonable meaning. Wyandotte Savings Bank v State Banking Comm’r, 347 Mich 33; 78 NW2d 612 (1956).
The legislative intent in enacting this statute was set forth in O’Brien v Hazelet & Erdal, 410 Mich 1; 299 NW2d 336 (1980), wherein our Supreme Court declared that this statute was constitutional. In O’Brien, supra, p 14, our Supreme Court stated the following regarding the objective that MCL 600.5839; MSA 27A.5839 seeks to achieve:
The instant legislation was enacted in 1967 in response to then recent developments in the law of torts. The waning of the privity doctrine as a defense against suits by injured third parties and other changes in the law increased the likelihood that persons taking part in the design and construction of improvements to real property might be forced to defend against claims arising out of alleged defects in such improvements, perhaps many years after construction of the improvement was completed. The Legislature chose to limit the liability of architects and engineers in order to relieve them of the potential burden of defending claims brought long after completion of the improvement and thereby limit the impact of recent changes in the law upon the availability or cost of the services they provided.
See also 97 ALR3d 455, § 4, p 463; 5 Am Jur 2d, Architects, § 25, p 688. Hence, this statute was enacted primarily to limit the engineers’ and architects’ exposure to litigation by injured third persons as evidenced by the legislation’s timing and relation to case law. However, the Legislature never intended this statute to fix the period of limitation in which an owner of an improvement to real property must bring an action against the architect or engineer for professional malpractice committed in the planning or building of the improvement which results in deficiencies to the improvement itself. Unlike the language of other states’ statutes, the words selected by Michigan’s Legislature make it clear that the statute simply applies when there is an injury "... arising out of the defect and unsafe condition . . . .” If there is no causal connection between the defective condition and the injury, the provision does not apply. Similarly, where the suit is for deficiencies in the improvement itself, the injury is the defective condition, hence, the injury does not "arise out of’ the defective condition, but, rather, it is the condition. Therefore, claims for deficiencies in the improvement itself do not come within the scope of this special statute of limitation.
In the instant case, the alleged defective conditions are leaking problems involving the "trickling filters” of a "sludge digester” and falling facing bricks off the corner of one of the trickling filters. As stated above, injury to the property itself is not covered under MCL 600.5839; MSA 27A.5839. Therefore, there was no error in the trial court’s determination that that statute was inapplicable.
Defendant also argues that the trial court erred in applying the general malpractice period of limitation provisions contained in MCL 600.5838; MSA 27A.5838 and MCL 600.5805(4); MSA 27A.5805(4) to plaintiffs malpractice action. A special statute of limitation addressing a specific claim always controls over a general statute of limitations. Hawkins v Regional Medical Laboratories, PC, 111 Mich App 651, 655; 314 NW2d 450 (1979), aff'd 415 Mich 420 (1982). However, where a special statute of limitation does not apply to a claim, the general statute of limitation should be used. Because the special statute of limitation for architects and engineers did not apply as discussed above, the trial court correctly applied the general malpractice statutes of limitation to plaintiffs claim. Since further factual development was necessary regarding whether plaintiff’s claim was barred by the general malpractice statutes of limitation, the trial court did not err in determining that accelerated judgment was improper as to plaintiffs malpractice claim.
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