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Bronson, P. J.
Defendant was charged with second-degree criminal sexual conduct, MCLA 750.520c; MSA 28.788(3), and assault with intent to commit criminal sexual conduct involving sexual penetration, MCLA 750.520(g)(1); MSA 28.788(7)(1). He was found guilty of both counts by a jury and appeals of right.
Defendant contends that his conviction of both second-degree criminal sexual conduct and assault with intent violates the constitutional proscription of double punishment for the same offense.
The Supreme Court has addressed the constitutional protection against double punishment in two recent cases. In People v Martin, 398 Mich 303, 307; 247 NW2d 303 (1976), the Court held that convictions for both possession and delivery of heroin constituted double punishment because:
"Possession of the heroin present in this case was that necessary to its delivery.
"On the evidence adduced at this trial, there is no doubt that unlawful possession was a lesser included offense of delivery.
"When the jury found defendant guilty of unlawful delivery of this heroin on the evidence in this record they necessarily found him in possession of it.”
Martin was followed in People v Stewart, 400 Mich 540, 548-549; 256 NW2d 31 (1977), which involved separate convictions for sale and possession of heroin. The Court held that:
"However, depending upon the facts developed at trial, when the circumstance of possession is not severable or apart from a sale and the jury concludes the defendant is guilty of sale, then the possession blends together with the sale so as to constitute one single wrongful act.
"Therefore, from the evidence adduced at this trial, the illegal possession of heroin was obviously a lesser included offense of the illegal sale of heroin. When the jury in the case at bar found the defendant guilty of the illegal sale of this heroin, they necessarily found him guilty of possession of the same heroin.
"Defendant Stewart may not be 'doubly punished’ by convicting him of possession, which in this case was a 'necessary’ prerequisite or the sine qua non for the very sale for which he was also convicted.”
The test which emerges from Martin and Stewart is fairly easy to state: a defendant may not be convicted of two crimes where, on the facts of the particular case, the trier of fact must necessarily find him guilty of one in order to find him guilty of the other. This test does not rest solely on the distinction between necessarily and cognate lesser included offenses, but requires an analysis of the facts of each case.
In the case at bar, defendant was convicted of both second-degree criminal sexual conduct and assault with intent to commit criminal sexual conduct involving sexual penetration. The assault with intent offense requires proof of an element not found in second-degree criminal sexual conduct: the specific intent to commit criminal sexual conduct involving sexual penetration. Second-degree criminal sexual conduct requires proof of an element not required for assault with intent, namely, "sexual contact”. On the facts of this case, the jury did not necessarily find defendant guilty of one crime in finding him guilty of the other. See People v Stewart, supra. It is important to distinguish what the jury could find from the evidence presented and what the jury necessarily found. In the instant case, the jury could have found defendant guilty of second-degree criminal sexual conduct but also have found that any force used was not with the intent to commit criminal sexual conduct involving sexual penetration. Similarly, the jury could have found defendant guilty of the assault with intent offense but also have found that no "sexual contact” occurred. Therefore, separate convictions are not prohibited.
Although defendant’s convictions do not constitute double punishment, we must reverse for the prosecutor’s failure to give notice of a witness called as a rebuttal alibi witness.
MCLA 768.20(2); MSA 28.1043(2) requires the prosecution to give notice of all proposed alibi rebuttal witnesses:
"Within 10 days after the receipt of the defendant’s notice but not later than 5 days before the trial of the case, or at such other time as the court may direct, the prosecuting attorney shall file and serve upon the defendant a notice of rebuttal which shall contain, as particularly as is known to the prosecuting attorney, the names of the witnesses whom the prosecuting attorney proposes to call in rebuttal to controvert the defendant’s defense at the trial of the case.”
In the case at bar, the prosecution called a rebuttal witness who was permitted to testify over defense counsel’s objection that he had not received the statutory notice. The witness was listed in defendant’s notice of alibi, although he was not called by the defense. The prosecutor filed no notice of rebuttal.
The prosecutor argues that he should not be required to give notice of an alibi rebuttal witness the defense has listed on its notice of alibi.
The purpose of alibi and rebuttal of alibi notice is to prevent surprise at trial. See Williams v Florida, 399 US 78; 90 S Ct 1893; 26 L Ed 2d 446 (1970). See, also, People v Merritt, 396 Mich 67; 238 NW2d 31 (1976). This purpose can be attained only if both sides give the statutorily required notice. While a defendant arguably should know how a witness whom he has listed on a notice of alibi will testify, a defendant should also be entitled to know whether the prosecution will rely on that witness in rebuttal. We decline to find an exception to the statutory requirement that the prosecution give notice of rebuttal alibi witnesses where the witness in question is listed in the defendant’s notice of alibi.
MCLA 768.21(2); MSA 28.1044(2) provides:
"If the prosecuting attorney fails to file and serve a notice of rebuttal upon the defendant as provided in section 20 or 20a, the court shall exclude evidence offered by the prosecution in rebuttal to the defendant’s evidence relevant to a defense specified in section 20 or 20a. If the notice given by the prosecuting attorney does not state, as particularly as is known to the prosecuting attorney, the name of a witness to be called in rebuttal of the defense of alibi or insanity, the court shall exclude the testimony of a witness which is offered by the prosecuting attorney for the purpose of rebutting that defense.”
This language is mandatory, unlike the prior statute. See People v Merritt, supra, at 74, fn 1. We cannot say, on the facts of this case, that the error in allowing the unlisted witness to testify was harmless beyond a reasonable doubt.
Reversed.
See US Const, Am V, Const 1963, art 1, § 15.
The Court also held that the second conviction must be vacated even though sentences for the two convictions were to run concurrently.
In People v Ora Jones, 395 Mich 379, 387; 236 NW2d 461 (1975), the Supreme Court described necessarily included offenses, which are "such that it is impossible to commit the greater without first having committed the lesser”, and cognate offenses, which "share several elements, and are of the same class or category, but may contain some elements not found in the higher offense”.
But cf. People v Risher, 78 Mich App 431; 260 NW2d 121 (1977), refusing to hold that conviction of cognate offenses is barred by double jeopardy. In Brown v Ohio, 432 US 161; 97 S Ct 2221; 53 L Ed 2d 187 (1977), the United States Supreme Court stated that the test of whether multiple punishment has been imposed is whether each offense requires proof of a fact not required by the other offense. See, also, People v Guidry, 67 Mich App 653; 242 NW2d 461 (1976). Although this test is seemingly different from the Martin/Stewart test, the two tests can be reconciled. In Brown and Guidry, the courts were confronted with conviction of a necessarily included offense; they did not consider the effect of a conviction for an offense which was not technically necessarily included apart from the facts of a particular case. The latter issue, which was addressed in Martin and Stewart, therefore was not decided by the U. S. Supreme Court. In other words, Stewart and Martin are consistent with Brown as to necessarily included offenses, but state an additional test for circumstances not present in Brown, i.e., where two offenses are factually included. As we are not here presented with conviction of a necessarily included offense, we apply the Martin/Stewart test.
We are not confronted here with the problem of whether the Legislature meant to provide for separate offenses for a single sexual penetration by subdividing sections defining criminal sexual conduct. See, e.g., People v Nelson, 79 Mich App 303; 261 NW2d 299 (1977), People v Willie Johnson, 75 Mich App 221; 255 NW2d 207 (1977), lv granted, 402 Mich 826 (1977).
Contrary to the prosecutor’s argument, he is not prevented from listing a witness in a notice of rebuttal because defendant has listed the witness in a notice of alibi.
We also reject the prosecutor’s argument that the prosecutor cannot "propose to call” a witness whom the defense proposes to call. If the prosecutor intends to rely on a witness in rebuttal, it is logical to assume that the defense will not call that witness. Given the purpose of the alibi notice statute, the fullest possible disclosure of potential rebuttal witnesses is to be encouraged. | [
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Per Curiam.
This case comes before this Court upon leave granted from a circuit court judgment affirming the district court’s grant of summary judgment in favor of the plaintiff. The facts are not in dispute. On April 2, 1973, Dale A. Hicks, Inc., a Michigan corporation, executed a promissory note to the defendant-appellant, Detroit Federal Savings and Loan Association, in the amount of $759,000. The funds were disbursed to Hicks for the purpose of constructing and equipping a condominium project located in the City of Fenton in Genesee County. To secure payment of the amount loaned, Hicks executed a mortgage and security agreement to the defendant bank. The security agreement granted to Detroit Federal a security interest in:
"[A]ll uninstalled materials on site and all stoves, refrigerators, dishwashers, disposals, water heaters, heating and air conditioning units, incinerators, carpeting and drapes and all other goods and articles of personal property of every kind and description now or hereafter owned or held by Mortgagor or now or hereafter located upon or used in connection with the operation of the premises and all replacements thereof or additions thereto.”
This security agreement, together with a financing statement, was properly filed with the Genesee County Register of Deeds on April 4, 1973, and with the Michigan Secretary of State on April 6, 1973.
Subsequently, on January 25, 1974, Hicks signed contracts to purchase refrigerators, stoves, dishwashers, disposals, vented hoods and carpeting for the condominium project with Sears, Roebuck and Company, the plaintiff herein. Each of the contracts contained the following language, rubber-stamped in the lower left-hand corner of the second page, initialed by both parties:
"10. By signing the purchase order herein or accepting merchandise hereunder, purchaser grants to Sears, Roebuck and Company security interest in the merchandise described herein, any and all accessions thereto, and all proceeds of the sale or disposition of said merchandise and accounts receivable, therefore, to secure payment of the purchase price herein, and agrees to sign a financing statement with respect thereto.”
The contracts were accepted by a sales representative on January 30, 1974, and by the credit department of Sears, Roebuck and Company on February 7, 1974. On February 14, 1974, Sears filed a financing statement with the Genesee County Register of Deeds.
The security agreements and financing statements referred to are the only agreements and statements filed by the parties with respect to the goods in question, and the parties agree that all were validly filed on the dates set forth above.
Upon the default of Hicks, Sears instituted an action for claim and delivery (Count I) and for a money judgment (Count II) in the 68th Judicial District Court against Hicks, Detroit Federal, and Burton Abstract and Title Company. With respect to Count I, both Detroit Federal and Sears filed motions for summary judgment claiming their respective security interests had priority over the other.
By an opinion dated December 23, 1974, District Judge Riker granted summary judgment in Sears’ favor upon a finding that appliances and carpeting were fixtures and, thus, the question of priority was governed by MCLA 440.9313(2); MSA 19.9313(2). Judgment of possession was entered in Sears’ favor on January 30, 1975.
Detroit Federal Savings and Loan appealed to the Genesee County Circuit Court contending that its security agreement covering after-acquired property had priority over Sears’ purchase money security interest for failure of Sears to comply with the requirements of MCLA 440.9312(3); MSA 19.9312(3) relating to inventory collateral. The circuit judge ruled that the district court had properly relied upon the statutory provision giving priority to a security interest in fixtures over claims of persons having an interest in the real estate. He did so upon the ground that Detroit Federal’s security agreement covering after-ac quired property was invalid for lack of value received covering after-acquired property. The circuit judge, in his opinion, stated:
"This case is controlled by Sec. 9-313(2) of the U.C.C. Detroit Federal’s security interest is one and the same as the mortgage interest — both were executed at the same time and more importantly, no additional value was given or received for the 'after-acquired property’ security agreement.”
The basis of the trial court’s decision in favor of the plaintiff is founded on two errors of law. First, that the bank had no additional value for the "after-acquired property” in that "Detroit Federal has a valid mortgage interest in other property and a security interest in the property in question * * * because no value was received covering the after-acquired property * * * ”. Second, he assumed that the collateral here was other than inventory.
The code defines goods as inventory if:
"[T]hey are held by a person who holds them for sale or lease or to be furnished under contracts of service or if he has so furnished them, or if they are raw materials, work in process or materials used or consumed in a business. Inventory of a person is not to be classified as his equipment.” MCLA 440.9109(4); MSA 19.9109(4).
Classes of goods enumerated in § 9109 are mutually exclusive. The principal test of whether goods are inventory is whether they are held for immediate or ultimate sale. Implicit in the definition is the criterion that the sale is in the ordinary course of business. The code implies that materials and goods consumed or used in business are inventory. Thus, we hold that the goods secured were inven tory within the meaning of § 9109. MCLA 440.9109(4); MSA 19.9109(4).
Sections 9108 and 9204 of the Uniform Commercial Code (MCLA 440.9108; MSA 19.9108 and MCLA 440.9204[3]; MSA 19.9204[3]) give specific rights to a creditor to secure a debt with property not owned by the debtor at the time that the parties enter into a security agreement. Article 9 of the code generally validates such after-acquired property interest, although they may be subjected to subsequent purchase money security interests properly perfected under § 9312(3) and § 9312(4).
Two tests must be met under § 9108 for an interest in after-acquired property to meet the claim that the security was taken for an antecedent debt. First, the secured party must, at the inception of the transaction, have given new value in some form. Second, the after-acquired property must come in either the ordinary course of the debtor’s business or as an acquisition which is made under a contract of purchase entered into within a reasonable time after the giving of new value and pursuant to the security agreement. The purchase of inventory such as refrigerators, stoves, vents, disposals, and the like was contemplated by the defendant bank and provided for in its properly filed security agreement. The bank gave new value at the time of the original transaction and the after-acquired property came in the ordinary course of the debtor’s business. Therefore, the after-acquired property clause gave the defendant bank a valid security interest in the personal property acquired by Hicks when Hicks received delivery of the property from Sears, Roebuck and Company. MCLA 440.9204(1); MSA 19.9204(1).
The bank’s security interest was perfected on delivery of the goods to the debtor by its proper filing of the security interest in after-acquired property in both, the Genesee County Register of Deeds office April 4, 1973, and with the Secretary of State on April 6, 1973. MCLA 440.9302; MSA 19.9302.
Conflicting priorities are governed by § 9312 of the Uniform Commercial Code. MCLA 440.9312; MSA 19.9312. The basic rule of this section is that the first to file has priority.
"In all cases not governed by other rules stated in this section (including cases of purchase money security interests which do not qualify for the special priorities set forth in subsections (3) and (4) of this section), priority between conflicting security interests in the same collateral shall be determined as follows:
(a) in the order of filing if both are perfected by filing regardless of which security interest attached first under section 9204(1) and whether it attached before or after filing; * * * .” MCLA 440.9312(5); MSA 19.9312(5).
The plaintiffs claim must fail because it failed to protect its purchase money security interest, although it properly perfected its rights.
The code contemplates that two parties may well loan money to the same debtor. That is what happened here. The conflict was anticipated by the draftsman of the code in providing a purchase money lender with a means to secure priority.
"A purchase money security interest in inventory collateral has priority over a conflicting security interest in the same collateral if
(a) the purchase money security interest is perfected at the time the debtor receives possession of the collateral; and
(b) any secured party whose security interest is known to the holder of the purchase money security interest or who, prior to the date of the filing made by the holder of the purchase money security interest, had filed a financing statement covering the same items or type of inventory, has received notification of the purchase money security interest before the debtor receives possession of the collateral covered by the purchase money security interest; and
(c) such notification states that the person giving the notice has or expects to acquire a purchase money security interest in inventory of the debtor, describing such inventory by item or type.” MCLA 440.9312(3); MSA 19.9312(3).
Failure of the plaintiff to perfect its purchase money security interest before delivery of the goods to the debtor and failure to properly notify the holder of a prior perfected security interest dooms plaintiffs claim to any priority under the code. Fan-Gil Corp v American Hospital Supply Corp, 49 Mich App 106; 211 NW2d 561 (1973), Manufacturers Acceptance Corp v Penning’s Sales, Inc, 5 Wash App 501; 487 P2d 1053 (1971), North Platte State Bank v Production Credit Association of North Platte, 189 Neb 44; 200 NW2d 1; 10 UCC Rep Svc 1336 (1972).
Reversed. Costs to defendant-appellant. | [
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Quinn, P. J.
The people appeal from the trial court’s grant of defendant’s motion to suppress certain evidence. The trial court found that the search warrant under which the evidence was seized was defective. We reverse and remand.
The alleged defect was in the description of the place to be searched. That description reads: "A two and one-half story house gray in color converted to multiple dwelling and the persons of people therein including Dennis Hopkins located at 600 South Walnut, Apartment 5, in the City of Lansing, in Ingham County, State, of Michigan.”
We find that this description is not defective, although a better statement would be, "Apartment #5 on the _ floor of a two and one-half story house, gray in color converted to multiple dwelling.”
Additionally, the affidavit on which the warrant was based contained a description, "Apartment number 5, 600 South Walnut City of Lansing.” If the description in the warrant is defective, that defect is cured by the affidavit which is to be read with the warrant in judging alleged defects, Ellison v State, 186 Tenn 581; 212 SW2d 387 (1948), Thompson v State, 198 Ind 496; 154 NE 278 (1926), Frey v State, 3 Md App 38; 237 A2d 774 (1968), United States v Moore, 263 A2d 652 (DC App, 1970), Moore v United States, 149 US App DC 150; 461 F2d 1236 (1972).
Reversed and remanded. | [
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Per Curiam.
Defendant appeals from a plea-based conviction of one count of criminal sexual conduct in the second degree. MCLA 750.520(c); MSA 28.788(3). Defendant was sentenced to a term of 2-1/2 to 15 years in prison.
On appeal defendant raises one issue which merits discussion. He contends that the plea-taking court reversibly erred in failing to establish a proper factual predicate prior to accepting the guilty plea. GCR 1963, 785.7(3)(a). Defendant was charged with engaging in sexual contact with another person under 13 years of age. Defendant asserts that there was no testimony concerning the precise nature of the contact. The statute defines "sexual contact” as:
"[T]he intentional touching of the victim’s or actor’s intimate parts or the intentional touching of the clothing covering the immediate area of the victim’s or actor’s intimate parts, if that intentional touching can reasonably be construed as being for the purpose of sexual arousal or gratification.” MCLA 750.520a(g); MSA 28.788(l)(g).
"Intimate parts” is defined as:
"[T]he primary genital area, groin, inner thigh, buttock, or breast of a human being.” MCLA 750.520a(b); MSA 28.788(l)(b).
In Guilty Plea Cases, 395 Mich 96, 130; 235 NW2d 132 (1975), the Court stated:
"A factual basis for acceptance of a plea exists if an inculpatory inference can reasonably be drawn by a jury from the facts admitted by the defendant even if an exculpatory inference could also be drawn and defendant asserts the latter is the correct inference.”
The relevant portion of the record at the plea-taking reads:
"THE COURT: Tell me yourself how you plead to Count II.
"THE DEFENDANT: Guilty, your Honor.
"THE COURT: Next I need to know what happened here that would make you guilty of this offense.
"THE DEFENDANT: Well, he was staying all night over to the house, and he was downstairs sleeping on the couch; and I came downstairs beside him and touched him, and he had sexual arouse [sic] from it.
"THE COURT: The Information says he was under thirteen years of age. Are you satisfied that is true?
"THE DEFENDANT: Yes, your Honor.
"THE COURT: There was actually sexual contact with the sexual parts?
"THE DEFENDANT: At first it wasn’t; and what I mean by that, he took and he pulled his pants down.
"THE COURT: Then there was?
"THE DEFENDANT: Yes. There was before on top of the clothing, and'then afterwards there was contact.”
In People v Davenport, 75 Mich App 46, 49; 254 NW2d 647 (1977), this Court held that a jury could not "reasonably draw an inculpatory inference from defendant’s admission at plea-taking” that he had "rubbed his finger between the legs of a seven-year-old female” since legs were not within the statutory definition of "intimate parts”.
In the instant case the record clearly shows that there was an intentional touching that can reason ably be construed as being for the purpose of sexual arousal or gratification. We hold that defendant’s affirmative response to the court’s question asking if there was actual sexual contact with the victim’s sexual parts is a sufficient factual basis to allow a jury to reasonably draw the inculpatory inference that the defendant contacted the victim’s "intimate parts”.
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On Remand
D. C. Riley, J.
In considering plaintiffs application for leave to appeal, the Supreme Court, 401 Mich 802 (1977), has asked us to amplify a point discussed by the majority opinion in People v Ronald Green, 74 Mich App 601; 254 NW2d 788 (1977). There, we stated:
“Given the lengthy jury deliberations and the relative dearth of direct evidence implicating defendant, we are unable to say that the frequent instances of prosecutorial misconduct which occurred below were harmless beyond a reasonable doubt.” 74 Mich App at 604. (Emphasis added.)
Citing the italicized phrase, the Supreme Court wishes to know “whether the Court of Appeals reviewed the quantum of evidence in finding that the error was not harmless or whether the Court of Appeals, in so ruling, merely relied upon the character of the evidence presented, that is, circumstantial vis-a-vis direct”.
We begin our answer by noting the firmly established principle that appellate courts are not triers of fact. Thus the majority opinion in no way should be read as a reflection on the sufficiency of the evidence or on the guilt or innocence of Ronald Green. Rather, the italicized language was intended as a comment on the circumstantial character of the evidence, which, taken together with the length of the jury’s deliberations, raised in our minds the reasonable possibility that at least one juror might have voted to acquit defendant had the trial been free of prosecutorial misconduct.
We harbored this suspicion precisely because the prosecutor may have " 'diverged] the jury from its duty to decide the case on the evidence, by injecting issues broader than the guilt or innocence of the accused under the controlling law’ ”. People v Farrar, 36 Mich App 294, 299; 193 NW2d 363 (1971), quoting ABA Project on Standards for Criminal Justice, the Prosecution Function, Std 5.8(d). Hence, we declined to label the error harmless beyond a reasonable doubt. People v Christensen, 64 Mich App 23, 33; 235 NW2d 50 (1975).
This elaboration, we trust, will aid the Supreme Court in its consideration of plaintiffs application for leave to appeal. But whether or not^ leave is granted in the instant case, the Court should note that the propriety of prosecutorial questions relating to a defendant’s financial status is a recurrent issue that demands definitive resolution. See, People v Thomas Jones, 73 Mich App 107; 251 NW2d 264 (1976), People v Baldwin, 74 Mich App 700; 254 NW2d 619 (1977), People v LaForte, 75 Mich App 582; 256 NW2d 44 (1977), People v Osborne, 75 Mich App 600; 256 NW2d 45 (1977), People v Jackson, 77 Mich App 392; 258 NW2d 89 (1977).
Judge Holbrook not participating because of his dissent heretofore filed. | [
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Per Curiam.
Defendant, John Alexander, Jr., entered a plea of guilty to the charge of carrying a concealed weapon. MCLA 750.227; MSA 28.424. At the time of the offense defendant was an inmate at the Jackson State Prison.
At the plea taking proceeding the prosecutor informed the court that, if the plea of guilty were accepted, no habitual criminal proceedings would be instituted against the defendant. Defendant now argues that his plea was involuntary because the prosecutor threatened to charge him as an habitual offender if he exercised his right to trial and was convicted.
We have carefully reviewed the record. It contains no evidence whatsoever that the prosecutor ever made such a threat. Even if the prosecutor had no intention of supplementing the defendant, it would be prudent, from the defendant’s point of view, to have the prosecutor make a statement to that effect on the record before a plea of guilty was offered. There is nothing in the record which persuades us that anything other than that occurred in this case. We find no error.
Next the defendant contends that he could not be convicted of carrying a concealed weapon because Jackson State Prison where the incident occurred was "his dwelling house”. We disagree.
The concealed weapons statute, MCLA 750.227; MSA 28.424, provides:
"Sec. 227. Any person who shall carry a * * * dangerous weapon * * * concealed on or about his person * * * except in his dwelling house or place of business or on other land possessed by him * * * shall be guilty of a felony * * * .” (Emphasis added.)
In People v Clark, 21 Mich App 712, 716; 176 NW2d 427 (1970), this Court discussed the purpose of the "dwelling house” exception.
"The purpose of the exemptions was to allow persons to defend those areas in which they have a possessory interest. This is the clear import of the phrase 'possessed by him’ which modifies the three areas set forth in the statute.”
A prison inmate does not have, in any area of the prison, a possessory interest which he has a right to defend with a weapon. Accordingly, we hold that the "dwelling house” exception to the concealed weapons statute does not apply under the circumstances of this case. The defendant was properly convicted on his plea of guilty. His conviction is affirmed. | [
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J. E. McDonald, J.
Appellant Jerry Robert Elliott and appellee Katherine Renee MacLoughlin were previously married, but were divorced in 1966 in Arizona. Custody of the only child of the marriage, Sean, was granted to appellant-husband.
Subsequent to the divorce, the parties lived together and held themselves out as husband and wife, even though they did not remarry. During this period of cohabitation, a second son, Vaughn, was born on July 26, 1968.
In 1970, approximately two years after the birth of Vaughn, the parties separated and appellee-wife apparently took custody of Vaughn. After marrying her present husband, appellee-wife, her new husband and Vaughn moved to Michigan.
In 1973, appellee commenced an action in Washtenaw County Probate Court to terminate appellant’s parental rights in Vaughn, based upon the father’s alleged failure to support or visit the child since 1969.
Appellant, Vaughn’s father, did not attend the hearing on the petition to terminate his parental rights, and his parental rights were terminated in late 1973.
On August 25, 1976, approximately three years after the original termination order, appellant commenced this independent equitable action in Washtenaw County Circuit Court to set aside the previous probate order of termination of parental rights, stating it had been fraudulently obtained by appellee.
None of the parties were living in Michigan at the time of the commencement of the present case by appellant in the circuit court.
Appellant and his new wife, appellee and her new husband (Vaughn’s adoptive father) and Vaughn all reside in Arizona.
Appellant claims that the allegations made by the mother in her 1973 petition to the Washtenaw County Probate Court were fraudulent and that appellee knew they were fraudulent when she made them. Nevertheless, the father did not appear in the matter because appellee allegedly told him that she was not going to continue the action. Contrary to the alleged assurance of appellee, however, the termination hearing was held and appellant’s rights were terminated on November 29, 1973.
In 1974, the probate court entered another order confirming the adoption of Vaughn by appellee’s present husband.
Appellant did not appeal either order, nor did he seek to have the order set aside in the probate court.
Appellant alleges that there was fraud upon the probate court and invokes the equity powers of the circuit court to set aside the order terminating his parental rights.
Appellee filed a motion for accelerated judgment, claiming that the circuit court lacked personal jurisdiction over her and jurisdiction over the subject matter.
She also moved for summary judgment, alleging that appellant failed to state a claim upon which relief could be granted and that there was no genuine issue of a material fact upon which relief could be granted.
The transcript of the hearing on December 16, 1976, indicates that there were no exhibits offered and no witnesses testified, however, there were exhibits attached to the petition and affidavits in support of the motions. The hearing consisted entirely of argument by counsel.
On the 12th of January in 1977, there was an order entered entitled "Accelerated and Summary Judgment for Respondent”.
On January 19, 1977, a claim of appeal from the order of the circuit court was filed by appellant.
About a month later, on February 22, 1977, a written opinion and order granting respondent’s motion for summary judgment was filed by the circuit court.
At the conclusion of argument by counsel at the hearing on December 16, 1976, the court announced that it was ready to rule on the matter, and the transcript reads in part as follows:
"First on the question of jurisdiction, the Court does not feel that it does have personal jurisdiction over the defendant mother or the child for the reason that they are not domiciled in Michigan * * * .
"The Michigan Probate Code does make provisions for re-hearing in the Probate Court. It is true that Courts have the power to set aside actions which they have taken where they have been induced to take those actions by fraud. The Michigan legislature, for very good reason, has set a 20 day limit on re-hearings in Probate Court in adoption cases. I think this bespeaks public policy in these matters. The present action brought here in Circuit Court obviously is an attempt to circumvent or avoid the effect of that statute * * * .
"The plaintiff has slept on his rights. It is now three years later and it would take quite a bit for even on the merits, one would want to set aside a placement, adop tive placement of three years duration. I think that laches applies against the plaintiff * * * .
"Here there is no question but what the present plaintiff had — had notice and an opportunity to be heard * * * .
"So for the several reasons I have given under three major headings, specifically first, no jurisdiction; secondly, laches; thirdly, complaint does not state a cause of action. The motion for summary and accellerated (sic) judgment is granted * * * .
" * * * I don’t want to get caught in that abyss between the General Court Rule 116 and 117. I suggest be entitled an accellerated (sic) and summary judgment is granted so that we don’t have any more technical problems built in than — ’’,
There is no requirement that the appellee be physically present within the state or domiciled within the state before the courts can exercise limited personal jurisdiction over her.
"When we keep in mind that we are dealing not with general jurisdiction which is provided for in another part of the statute (MCLA § 600.701 [Stat Ann 1962 Rev § 27A.701]) which would expose a nonresident to suit in Michigan for any cause wherever it arose, but rather with limited jurisdiction which exposes a nonresident to suit in Michigan only for a cause which arose out of the relationship serving as a basis for such jurisdiction we see no Federal Constitutional question.
"The courts of those states having 'long-arm’ statutes similar to that of Michigan which confer, specifically, limited personal jurisdiction over defendants based on 'the transaction of any business within the state,’ have generally construed their statutes as extending the state’s jurisdiction to the farthest limits permitted by due process.” Sifers v Horen, 385 Mich 195, 198-199; 188 NW2d 623 (1971).
The appellee made use of the courts of this state to hear her petition to terminate the parental rights of the appellant. Surely if commercial transactions may grant to the court limited personal jurisdiction, it is even more true that the use of the courts by this appellee precludes her assertion that the court does not now have jurisdiction over her for the purposes of a hearing on the very subject matter over which she sought to have the courts of Michigan take jurisdiction and decide.
"It is essential in each case that there be some act by which the defendant purposely avails itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protection of its laws.” Shepler v Korkut, 33 Mich App 411, 414; 190 NW2d 281 (1971), citing Hanson v Denckla, 357 US 235; 78 S Ct 1228; 2 L Ed 2d 1283 (1958).
The doctrine of laches is elastic, and rightly so, for it must cover the situation before the court after the facts are presented, and here, since there has been no opportunity to present proof, the statement by the court that laches applies would appear inappropriate.
" 'A defendant should not be heard to interpose the defense of laches where the claim against him arises from his own fraud and where * * * the very success of his fraud places the aggrieved parties in temporary ignorance of their rights and thus causes the lapse of time occurring prior to the assertion of the claim. Chase v Boughton, 93 Mich 285, 302; 54 NW 44, 50 (1892). And so, where the equitable claim arises from the fraud of the defendant the defense of laches must fall with the proof of the fraud since the defendant may not thereafter lift himself by his own bootstraps of wrongdoing.’ ” Kita v Matuszak, 55 Mich App 288, 295-296; 222 NW2d 216 (1974).
Appellant has objected to the filing by the circuit judge of an opinion one month after the appellant has filed a claim of appeal from the order entered on the 12th of January, which granted both the accelerated and summary judgment of the appellee. The practice of filing opinions after there has been an appeal should not be encouraged, however, in this matter, the February opinion by the circuit court gives some insight into the basis of the decision which is helpful, and it is being considered for that reason.
The February opinion of the circuit court contains the following language:
" * * * the Court concludes that even if all the allegations contained in the petition are assumed to be true, that upon the facts of this case, equitable relief is not warranted. If all statements were made in the respondent’s petition for termination, the petitioner had every opportunity to contest their accuracy in the prior proceedings. The petitioner, however, chose not to contest the probate petition. No justification is now offered for this inaction.”
Appellant denies he "chose not to contest” the proceedings to terminate his parental rights. He claims he relied on the statement by appellee that there would be no hearing. He claims his detrimental reliance on this fraudulent statement by appellee is his justification for inaction.
The February opinion continues:
"If fraudulent allegations were made in the termination petition concerning petitioner’s alleged lack of support for his child, the petitioner should have con tested the allegations in probate court. His unexplained failure to respond in the probate court must be weighed heavily against him as must his delay of over two years in commencing the present action. The petitioner offers no valid reason why he should now be allowed to litigate an issue which he should have contested in the prior proceeding.”
Again it is our understanding that the petitioner is alleging that the need to contest any allegations in the probate court was eliminated by the claimed assurance given him by the mother that the probate court hearing would not be held. We find it difficult to understand how the trial court can speak of this as an "unexplained failure to respond in the probate court”.
It appears that the petitioner alleges that his delay in beginning the present action was based on the fact that his relationship with his son, for all practical purposes, continued after the probate hearing as they had been prior to the probate hearing, in that he was granted visitation rights. Furthermore, petitioner says the "valid reason” why he should now be allowed to litigate this issue that was not contested in the prior proceedings is the alleged fraud on the part of the mother in advising him that the hearing proposed in probate court would not be held and that he relied on this to his detriment.
Further, the opinion of the trial court reads:
"The respondent, on the other hand, has presumably relied on the validity and finality of the unappealed probate order. Her position in a new re-married life in Arizona would be greatly disturbed if the petitioner’s request were granted.
More importantly, public policy favors the certainty and permanence of probate court adoption orders because of the psychological injury which may be caused to the adopted child if the adoption, after having been concluded, is undone.”
Public policy does favor the certainty and permanence of probate court adoption orders. However, public policy does not favor the securing of such orders by fraud on the petitioner or upon the court. Since fraud upon both the petitioner and the court is alleged by the petitioner, it would appear that the court should at least hear the basis for these claims and inquire into their validity at an appropriate hearing rather than summarily forming a conclusion at this stage of the proceedings.
The trial judge’s opinion goes on:
"The court is quite sympathetic to the natural parent who subsequent to tacit acquiescence in the termination of his legal relationship to the child, changes his mind. People change, and matters to which one was once indifferent can later become a cause for remorse and regret.”
Here again the claimed tacit acquiescence in the termination of his legal relationship by the petitioner is vigorously denied and he is claiming that he never has changed his mind; that the termination of his legal relationship was not with his acquiescence, but through the active and deliberate fraud of the mother upon both the petitioner and the court.
In Berry v Ferrell, 179 Mich 498; 146 NW 103 (1914), there was an action brought in circuit court to set aside an order of the probate court confirming the adoption of a minor, claiming the order had been obtained fraudulently.
When the complainant appeared in circuit court to offer proof of her charges, the defendant ob jected to having a hearing, claiming that the order of adoption made in the probate court had settled the matter and that no appeal had been taken. The circuit court sustained the objection by the defendant, declined to take any testimony, and dismissed the bill of complaint.
The plaintiff appealed and the Supreme Court said:
"We think the trial court should have proceeded to take the testimony.
"The case is remanded to the court below, with directions to hear the case upon its merits.” 179 Mich at 504.
We believe the trial court erred in granting appellee’s motions and the case is remanded for a hearing upon its merits.
Hybrid motions for summary or accelerated judgment are not looked upon with favor by courts, Knapp v Dearborn, 60 Mich App 18; 230 NW2d 293 (1975).
If courts look with disfavor upon a hybrid motion for accelerated and summary judgment, surely they cannot look with favor upon the granting of motions called "accelerated and summary judgment”. | [
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Per Curiam.
Plaintiff filed a petition in Nebraska seeking support payments for her daughter. The petition was forwarded to Jackson County, Michigan, where defendant resides, for filing in the Jackson County Circuit Court under the Uniform Reciprocal Enforcement of Support Act, MCLA 780.151 et seq.; MSA 25.225(1) et seq. A paternity action, MCLA 722.711 et seq.; MSA 25.491 et seq., had previously been instituted by plaintiff in the Jackson County Circuit Court and a consent order of support had been entered directing defendant to pay $12 per week towards the support of the child.
The circuit court, sua sponte, entered accelerated judgment for the defendant. GCR 1963, 116.1(4). The court ruled that it could not maintain two support files on defendant.
We find error in the entry of accelerated judgment. GCR 1963, 730.1 and GCR 1963, 731 provide that actions under the Paternity Act and the Uniform Reciprocal Enforcement of Support Act shall be governed by the General Court Rules except as inconsistent with or modified by those acts. MCLA 722.728; MSA 25.508 expressly provides that the methods of enforcement provided in the Paternity Act are not exclusive and that enforcement of support orders may also be sought under the provisions of URESA.
The order of dismissal is reversed. The case is remanded for further URESA proceedings.
No costs, a public question. | [
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Beasley, P. J.
Defendant was charged with four counts of criminal sexual conduct under the new 1974 statute. [MCLA 750.520b; MSA 28.788(2).] Following a jury verdict of guilty on all four counts, defendant was sentenced to not less than 20 nor more than 40 years imprisonment on each count with the sentences to run concurrently. Defendant now appeals as of right. For the reasons indicated, we affirm.
Defendant first asserts that he was deprived of a fair trial and due process of law when a single criminal incident resulted in his trial on four separate counts of criminal sexual conduct in the first degree. The victim was a seven-year-old girl on her way to school. The evidence indicates that the defendant, whom she identified in court, put a coat around her face and forced her into a vacant house. The defendant was identified also by neighborhood people who saw him running from the house. The charges, as explained by the trial court, were:
"So count one alleges intercourse with a person under the age of thirteen. Count two alleges intercourse while the defendant was allegedly armed with a weapon. Count three alleges fellatio with a person under the age of thirteen; and count four alleges fellatio with the defendant allegedly then and there armed with a weapon or an article used or fashioned in a manner to lead a person to reasonably believe it to be a weapon.”
There is no need to recite the evidence at length since clearly there was sufficient evidence to support a conviction on each of the four counts.
The statute in question provides:
"(1) A person is guilty of criminal sexual conduct in the first degree if he or she engages in sexual penetration with another person and if any of the following circumstances exists:
(a) That other person is under 13 years of age.
(b) The other person is at least 13 but less than 16 years of age and the actor is a member of the same household as the victim, the actor is related to the victim by blood or affinity to the fourth degree to the victim, or the actor is in a position of authority over the victim and used this authority to coerce the victim to submit.
(c) Sexual penetration occurs under circumstances involving the commission of any other felony.
(d) The actor is aided or abetted by 1 or more other persons and either of the following circumstances exists:
(i) The actor knows or has reason to know that the victim is mentally defective, mentally incapacitated or physically helpless.
(ii) The actor uses force or coercion to accomplish the sexual penetration. Force or coercion includes but is not limited to any of the circumstances listed in subdivision (f)(i) to (v).
(e) The actor is armed with a weapon or any article used or fashioned in a manner to lead the victim to reasonably believe it to be a weapon.
(f) The actor causes personal injury to the victim and force or coercion is used to accomplish sexual penetration. Force or coercion includes but is not limited to any of the following circumstances:
(i) When the actor overcomes the victim through the actual application of physical force or physical violence.
(ii) When the actor coerces the victim to submit by threatening to use force or violence on the victim, and the victim believes that the actor has the present ability to execute these threats.
(iii) When the actor coerces the victim to submit by threatening to retaliate in the future against the victim, or any other person, and the victim believes that the actor has the ability to execute this threat. As used in this subdivision, "to retaliate” includes threats of physical punishment, kidnapping, or extortion.
(iv) When the actor engages in the medical treatment or examination of the victim in a manner or for pur poses which are medically recognized as unethical or unacceptable.
(v) When the actor, through concealment or by the element of surprise, is able to overcome the victim.
(g) The actor causes personal injury to the victim, and the actor knows or has reason to know that the victim is mentally defective, mentally incapacitated, or physically helpless.
(2) Criminal sexual conduct in the first degree is a felony punishable by imprisonment in the state prison for life or for any term of years.”
On appeal, defendant says that this statute should not be interpreted to mean that if, in a single episode or event, a defendant accomplishes several penetrations, each unlawful under the statute, he is güilty of a separate felony for each. Thus, defendant would say that the illegal sexual intercourse and the illegal fellatio, occurring on the same occasion, constituted one and only one felony. In addition, although the statute defines both sexual intercourse with a person under 13 years of age and sexual intercourse while armed with a weapon, or any article used or fashioned in a manner to lead the victim to believe it to be a weapon, as criminal sexual conduct in the first degree, defendant says that, where a defendant commits one act of sexual intercourse with a person under 13 years of age and while armed in the manner described in the statute, the statute should be interpreted to mean that only one felony has been committed. Last, defendant says that, in any event, the prosecutor should have been compelled to elect on which count he would go to the jury.
Thus, the principal issue here is whether, under the new criminal sexual conduct statute, a single sexual penetration, accompanied by more than one of the statute’s enumerated special circumstances, can result in two distinct criminal charges for purposes of trial, conviction and sentencing. As will be set forth more fully below, it is our conclusion that this issue is not answered automatically in the affirmative based upon present case law, that this issue does not lend itself to easy resolution by the application of labels, that this issue is controlled by a determination of legislative intent, that legislative intent is seldom explicitly made known on this subject either in statutory language or in legislative history, that the legislative intent can be deduced from the overall purpose and background of a statute, that such deduction here demonstrates an intent to tighten the legislative provisions regarding criminal sexual conduct, that, consistent with that intent, the statute should be interpreted to protect the separate interests of the victim and society by punishing separately each violation of one of those separate interests, and that this interpretation is constitutional unless double jeopardy receives a judicially expanded interpretation.
To place this issue in proper perspective, we quote the words of former Chief Justice Earl Warren:
"The problem of multiple punishment is a vexing and recurring one. It arises in one of two broad contexts: (a) a statute or a portion thereof proscribes designated conduct, and the question is whether the defendant’s conduct constitutes more than one violation of this proscription. Thus, murdering two people simultaneously might well warrant two punishments but stealing two one-dollar bills might not. (b) Two statutes or two portions of a single statute proscribe certain conduct, and the question is whether the defendant can be punished twice because his conduct violates both pro scriptions. Thus, selling liquor on a Sunday might warrant two punishments for violating a prohibition law and a blue law, but feloniously entering a bank and robbing a bank, though violative of two statutes, might warrant but a single punishment.
"In every instance the problem is to ascertain what the legislature intended. Often the inquiry produces few if any enlightening results. Normally these are not problems that receive explicit legislative consideration. But this fact should not lead the judiciary, charged with the obligation of construing these statutes, to settle such questions by the easy application of stereotyped formulae. It is at the same time too easy and too arbitrary to apply a presumption for or against multiple punishment in all cases or even to do so one way in one class of cases and the other way in another. Placing a case in the category of unit-of-offense problems or the category of overlapping-statute problems may point up the issue, but it does not resolve it.” (Emphasis added.)
Chief Justice Warren’s words come from a dissent; he, himself, had written for the majority in a prior case which held that only one punishment was proper in prosecutions of a single bank robbery under the Federal Bank Robbery Act. However, no matter what his personal view of a particular case may have been, his words make clear that he recognized both the complex nature of the problem and the fact that seemingly logical, but simplistic, solutions were of no assistance even though they might be enticing for determining legislative intent or constitutional limitations for a case at hand.
Chief Justice Warren also emphasizes the reason why resort is so often made to stereotyped formu lae. That reason is that legislative intent, although all important, is very difficult to determine especially since the possibility of multiple punishment seldom receives explicit legislative consideration. In such situations, stereotyped formulae come readily to hand under the guise of statutes of construction, categories of problems, or rules of universal application. As Chief Justice Warren notes, such solutions merely restate, rather than solve, the problem.
An outline of Gore’s facts underlines its appropriateness to the issue now presented. Gore was charged with six counts for narcotics offenses; two Sales of narcotics each formed the basis of three counts. Conviction on all counts followed a trial by jury, and Gore was sentenced to one to five years on each count with the sentences on the first three counts to run consecutively with those on the second three; in effect, the sentence Was for 3 to 15 years. Gore attacked the legality of his sentences, and the Supreme Court affirmed.
In reaching its affirmance, the Court addressed two issues pertinent to the instant case. First, the Court, with Justice Frankfurter writing, examined the legislation and legislative intent, especially in light of their prior decision in Blockburger v United States.
"That the Blockburger opinion did not lay out with particularity the course of anti-narcotics legislation is scant basis for suggesting that the Court was unaware of it or did not duly heed the relevant criteria for statutory construction in dealing with the specific legislation before it. The Court was not an innocent in the history of narcotics legislation. Blockburger was not the first case that brought prosecutions under successive enactments dealing with the control of narcotics before the Court. At the time of Blockburger, it was not customary to make the whole legislative history connected with particular statutes in adjudication part of the conventional apparatus of an opinion. What is more to the point about the Blockburger decision is that the unanimous Court that rendered it then included three Justices conspicuous for their alertness in safeguarding the interests of defendants in criminal cases and in their insistence on the compassionate regard for such interests. Invidiousness is not implied in saying that Mr. Justice Brandéis, Mr. Justice Butler and Mr. Justice Roberts would not have joined in finding that Congress established independent curbs as tactical details in the strategy against illicit narcotics trade, if it could be reasonably maintained that what in fact Congress was doing was merely giving different labels to the same thing. The fact that an offender violates by a single transaction several regulatory controls devised by Congress as means for dealing with a social evil as deleterious as it is difficult to combat does not make the several different regulatory controls single and identic.
"Of course, the various enactments by Congress extending over nearly half a century constitute a network of provisions, steadily tightened and enlarged, for grap pling with a powerful, subtle and elusive enemy. If the legislation reveals anything, it reveals the determination of Congress to turn the screw of the criminal machinery — detection, prosecution and punishment— tighter and tighter.
"This situation is toto coelo different from the one that led to our decision in Bell v United States, 349 US 81 [75 S Ct 620; 99 L Ed 905 (1955)]. That case involved application of the Mann Act — a single provision making it a crime to transport a woman in interstate commerce for purposes of prostitution. We held that the transportation of more than one woman as a single transaction is to be dealt with as a single offense, for the reason that when Congress has not explicitly stated what the unit of offense is, the doubt will be judicially resolved in favor of lenity. It is one thing for a single transaction to include several units relating to proscribed conduct under a single provision of a statute. It is a wholly different thing to evolve a rule of lenity for three violations of three separate offenses created by Congress at three different times, all to the end of dealing more and more strictly with, and seeking to throttle more and more by different legal devices, the traffic in narcotics. Both in the unfolding of the substantive provisions of law and in the scale of punishments, Congress has manifested an attitude not of lenity but of severity toward violation of the narcotics laws. ” (Footnote omitted, emphasis added.)
The Court also addressed the double jeopardy-implications of the multiple convictions and sentences. The Court decided that the claim did not fit within the historical concept of double jeopardy and it stated that the historical concept was controlling because double jeopardy, unlike due process, was not an evolving concept.
Having reviewed legislative intent and double jeopardy questions, the majority in Gore make one further argument which touches both of the preceding. That argument is that the appeal of the question presented really constituted an invitation for the judiciary to review the sentence. The proper apportionment of punishment, according to the Court, is primarily a matter of legislative policy and such review is not within the power of the Court.
As could be inferred from the words of the former Chief Justice, the Supreme Court has decided the issue in Gore in different ways depending upon the factual and legal context in which the issue is present. For example, in interpreting the various provisions of the Federal Bank Robbery Act, only one conviction is proper for a given bank robbery. Already noted in a preceding quotation is the same result in regard to the Mann Act. However, in regard to charges of conspiring to violate and violating the Organized Crime Control Act of 1970, the Court upheld convictions on both charges. The key to all the cases was the finding regarding legislative intent. And, if legislative intent was not explicit, the Court stated that the presumption would be against turning a single transaction into multiple offenses — the so-called rule of lenity.
Prior Michigan law has also affirmed two convic tions arising from one criminal episode. The two convictions were for assault with intent to commit unarmed robbery and for assault with intent to do great bodily harm less than the crime of murder. However, Michigan law is also clear that two convictions are not permissible if one of the offenses is a lesser included offense of the other, or if two successive prosecutions are involved. In addition, it is clear that the one-transaction test must be applied to determine which offenses must be joined for double jeopardy purposes.
The sentences here appear to be within the range of sentences normally given for these offenses; therefore, we do not deem it necessary to give separate treatment to a cruel or unusual punishment type question. Moreover, the offenses charged in this case are not lesser included offenses of each other. Under Compian, Gore, etc., supra, multiple convictions would, therefore, be possible. However, the rationale of those cases also makes clear that such a holding should be based upon a finding of a like legislative intent, and it is to the determination of that intent that we now turn.
The background for that legislative intent includes, for a start, the "old”, now repealed, rape statute which provided:
"Any person who shall ravish and carnally know any female of the age of 16 years, or more, by force and against her will, or who shall unlawfully and carnally know and abuse any female under the full age of 16 years, shall be guilty of a felony, punishable by imprisonment in the state prison for life or for any term of years, or if such person was at the time of the said offense a sexually delinquent person, may be punishable by imprisonment in the state prison for an indeterminate term, the minimum of which shall be 1 day and the maximum of which shall be life. Such carnal knowledge shall be deemed complete upon proof of any sexual penetration however slight.”
The foregoing statute included both common law (forcible) rape and statutory (carnal knowledge with female under 16 whether or not with consent) rape. In practice, prosecutors charged defendants either with so-called common law rape or with statutory rape, but very seldom with both in one case.
Wide-spread dissatisfaction arose under the old rape statute. It was felt that often the victim was treated more harshly in trial than the rapist. Eventually, in 1974, those believing change was desirable succeeded in persuading the Legislature to repeal the existing rape statute and to enact what are described as the criminal sexual conduct statutes.
This referenced dissatisfaction is summarized by the analysis prepared for Senate Bill 1207 (introduced 2/28/74) as of June 27, 1974:
"Rape is increasing more rapidly than any crime in the United States. The F.B.I. reports that the incidence of rape has increased 70% over the past 5 years. One out of 500 Michigan women living in urban areas will be raped this year. However, some contend that Michigan law provides little protection or deterrent against rape and even discourages victims from reporting rape. Specific problems in the existing rape law are as follows: ***.”.
This analysis refers to "some [who] contend that Michigan law provides little protection or deterrent against rape and even discourages victims from reporting rape”. A review of the whole analysis and of the history of Senate Bill 1207 will not only make clear who those "some” were, but will also assist in the understanding of the resulting criminal sexual conduct statute.
Senate Bill 1207 was one step in a process that began, as a separate effort not connected with reform of the whole criminal code, when the Michigan Women’s Taskforce on Rape submitted detailed proposals to the judiciary committee of the Michigan House of Representatives. During that hearing, the then chairman of the judiciary committee indicated a desire that the proposals serve as a vehicle by which to arrive at a consensus on the new law. On February 28, 1974, bills were introduced in both the House and Senate. A review of the proposals, the initial bills and the final resulting act makes clear that the Legislature was being requested to make, and did make, major changes in the Michigan law pertaining to criminal sexual conduct. It is also clear that the thrust of these changes included an effort to strengthen the existing laws.
As distinguished from the old rape statute, which contained a broad, general description of the proscribed conduct, the new criminal sexual conduct statute spells out in some detail the proscribed conduct. Nowhere in the new statute does the word "rape”, or the old definition "ravish and carnally know * * * by force and against her will”, appear. This absence is not an oversight; on the contrary, it is indication of the new concept of what constitutes criminal sexual conduct.
The purpose is to greatly reduce any possibility that alleged consent of a victim is, in trial, a matter of defense. In fact, in one law reporter, the new statute is described as "the pro-victim Michigan statute”. If sexual intercourse is accompanied by any of the circumstances defined in sub-sections (a) through (g) of § 520a, it is criminal sexual conduct in the first degree, the maximum punish mént for which is life imprisonment. In addition, the statute sometimes undermines the injection of consent as a defense in the following language:
"Section 520i, A victim need not resist the actor in prosecution under sections 520b to 520g.”
The plan of the statute divides criminal sexual conduct into four degrees of seriousness. As measured by potential severity of sentence, criminal sexual conduct of the first degree is the most serious.
First-degree criminal sexual conduct is defined as sexual penetration with another person accom panied by any one of some seven circumstances. For example, sexual penetration with a person under 13 years of age in violation of sub-section (a) would constitute a complete offense as would sexual penetration with another person where the actor is armed with a weapon in violation of subsection (e).
In light of the fact that the Legislature was responding to a public demand for tightening up of the criminal laws regarding sexual violence, we are constrained to conclude that, in general, the legislative purpose of the new criminal sexual conduct statute was to strengthen, not weaken, within constitutional strictures, the criminal law describing unlawful sexual conduct. Consistent with that legislative purpose is an interpretation that each listed special circumstance is the basis for a separate offense and conviction. In the example above, sexual intercourse, while armed with a weapon, and sexual intercourse with a child under 13 constituted two separate offenses.
The criminal sexual conduct statute’s legislative intent has already been addressed in a prior opinion of this Court. There, in the absence of a clear showing Of contrary legislative intent, this Court applied the already mentioned rule of lenity. Here, we decline to apply the rule of lenity for two reasons. First, we hesitate to automatically apply the rule to an area in which, as Chief Justice Warren noted, legislative intent is seldom clearly specified even on the Federal level where sources of legislative history are far more abundant and readily available than is normally the case in Michigan. Second, as already noted, the background of the criminal sexual conduct statute suggests that the Legislature, rather than expressing lenity in this area, was, in fact, determined to tighten up the criminal machinery which is used to prosecute and punish sexual assaults.
Applied to the instant facts, the foregoing would support four convictions based upon two acts each accompanied by two special circumstances singled out by the Legislature for special treatment. However, this raises the further question of whether the particular facts of this case are such that all the technically possible convictions should be upheld. In Gore, supra, the United States Supreme Court noted that even though separate convictions and sentences are possible, prosecutors and judges must exercise sound discretion in determining when the options offered by the Legislature should be exercised.
On the facts of this case, we cannot say that defendant has been the subject of an abuse of that discretion. The victim was a seven-year-old special education student on her way to school. When the Legislature established age 13 as a special circumstance, it recognized as important the very social factors and harms which are emphasized by the facts here. In the same way, the facts here involve innocent by-stander witnesses who very easily could have become entangled in the criminal episode. The special circumstance of a dangerous weapon, therefore, presented additional danger both to the victim and to others. Given these facts, we cannot say that this defendant can complain if the separate types of harm to the victim and society are separately punished.
However, while we are satisfied that the Michigan Legislature intended to permit charging, convicting and sentencing for each separate offense, and while it is our opinion that this legislative intention is constitutional under present Federal and Michigan law, still we recognize that some of the cases which we have discussed have indicated, in dicta, that double jeopardy should receive an expanded interpretation; such an interpretation could be used to render unconstitutional both the present legislative intent and also any similar effort. We will, therefore, give further treatment to some of these cases to make explicit the reasons why the cases do not control this case.
The constitutional provisions in question are:
" * * * nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb * * * .”
"No person shall be subject for the same offense to be twice put in jeopardy.”
For example, in People v White, supra, the Supreme Court adopted the single transaction test to measure compliance with these double jeopardy provisions of the Federal and state constitutions. The major thrust of the case is to prohibit forcing a defendant to defend more than once criminal prosecutions arising out of one offense and, thus, to require all charges arising out of the offense to be tried in one trial. The reason for reversal in White, supra, was that the kidnapping case was tried first and separately from the charges of rape and felonious assault. The subsequent conviction for rape and felonious assault was reversed, but the first conviction for kidnapping was not appealed. Where, as here, all charges against defendant are included in one information and tried in one trial, we do not consider there is any violation of the rule of the White case.
In North Carolina v Pearce, holding that the Fifth Amendment guarantee against double jeopardy is enforceable against the states through the Fourteenth Amendment, the United States Supreme Court said:
"That guarantee [against double jeopardy] has been said to consist of three separate constitutional protections. It protects against a second prosecution for the same offense after acquittal. It protects against a second prosecution for the same offense after conviction. And it protects against multiple punishments for the same offense.”
In Pearce, the Court cited Ex Parte Lange, where the Court said:
" 'If there is anything settled in the jurisprudence of England and America, it is that no man can be twice lawfully punished for the same offense. And * * * there has never been any doubt of [this rule’s] entire and complete protection of the party when a second punishment is proposed in the same court, on the same facts, for the same statutory offense.
* * *
" '[T]he Constitution was designed as much to prevent the criminal from being twice punished for the same offense as from being twice tried for it.’ ”
In People v Martin, the Michigan Supreme Court cited Pearce with approval and proceeded to find that conviction of both delivery of heroin and of the lesser included offense of possession of the same heroin violated the constitutional double jeopardy provision prohibiting multiple punishment for the same offense. For reason of error in the instruction, the Martin Court reversed the delivery of heroin conviction and affirmed the possession of heroin conviction, but reserved an option in the prosecutor to accept reversal of both convictions and to re-try on both charges.
More recently, in People v Stewart (On Rehearing), the Supreme Court held that conviction of both sale and possession of the same heroin was constitutionally proscribed double punishment, saying:
"Therefore, from the evidence adduced at this trial, the illegal possession of heroin was obviously a lesser included offense of the illegal sale of heroin. When the jury in the case at bar found the defendant guilty of the illegal sale of this heroin, they necessarily found him guilty of possession of the same heroin.”
Thus, contrary to the within case, both Martin and Stewart involve lesser included offenses. In Jeffers v United States, the Court said one convicted of the greater offense may not be subjected to a second prosecution for the lesser offense since that would be the equivalent of two trials for the same offense. Consequently, it is evident that a defendant cannot, in the same trial, be found guilty of both a crime charged and a lesser included offense of the same crime. But, of course, that is not what happened here. Here, sexual intercourse while armed with a knife is not a lesser included offense of sexual intercourse with a seven-year-old child, nor vice versa. As we have indicated, the Legislature intended two separate offenses, one sexual intercourse with a child under thirteen and the other sexual intercourse while armed with a dangerous weapon. Similarly, fellatio with a child under 13 is a separate and distinct offense from fellatio while armed with a dangerous weapon.
Thus, we hold that since there are four separate and distinct offenses here, the constitutional prohibition against being twice put in jeopardy for the same offense does not apply.
We note that these sentences run concurrently. We express no opinion as to how we would rule if the sentences were imposed to run consecutively. Since we believe the Legislature intended that different violations of the statute be treated separately, even where aspects of the proscribed conduct, e.g., sexual penetration, give rise to more than one offense, we do not find error in the four sentences imposed here.
Defendant also asserts that the prosecutor improperly commented on defendant’s failure to testify when the prosecutor stated in his argument that "she [the victim] and the assailant were the only ones that had indication as to what happened in the house and that’s why the police were seeking corroborative evidence as to what happened and where”. No objection or request for instructions was made. While the quoted portion of the prosecutor’s argument does not appear to be improper, in the context of this case, it is unnecessary to determine the effect and meaning of the prosecutor’s statement since this issue has not been preserved for appeal.
Affirmed.
MCLA 750.520b; MSA 28.788(2).
Gore v United States, 357 US 386, 393-394; 78 S Ct 1280, 1285; 2 L Ed 2d 1405, 1411 (1958) (Warren, C. J., dissenting). See generally, Kirchheimer, The Act, The Offense and Double Jeopardy, 58 Yale L J 513 (1949).
Prince v United States, 352 US 322; 77 S Ct 403; 1 L Ed 2d 370 (1957).
Although, for purposes of adjudication of constitutionality, multiple punishment is the popularly used expression, it should be recognized that so stating the issue ignores the other purposes of sentencing such as protection of society and rehabilitation.
For examples of statutes of construction arranged for selection on the basis of desired results, see Llewellyn, The Common Law Tradition, (Little, Brown and Company, 1960), p 521 et seq.
"Counts Onp and Four charged the sale of the drugs, on the respective dates, not 'in pursuance of a written order’ of the person to whom the drugs were sold on the requisite Treasury form, in violation of § 4705(a) of the Internal Revenue Code of 1954. Counts Two and Five charged the sale and distribution of the drugs on the respective dates not 'in the original stamped package or from the original stamped package’, in violation of § 4704(a) of the Internal Revenue Code of 1954. Counts _ Three and Six charged facilitating concealment and sale of the drugs on the respective dates, with knowledge that the drugs had been unlawfully imported, in violation of § 2(c) of the Narcotic Drugs Import and Export Act, as amended by the Act of November 2, 1951, 65 Stat 767.” Gore v United States, 357 US 386, 387; 78 S Ct 1280, 1281-1282; 2 L Ed 2d 1405, 1407 (1958). (Footnote omitted.)
284 US 299; 52 S Ct 180; 76 L Ed 306 (1932).
357 US at 388-391.
357 US at 392. Double jeopardy will be further discussed herein.
357 US at 393.
18 USC 2113.
Prince v United States, n 3, supra.
18 USC 2421; Bell v United States, 349 US 81; 75 S Ct 620; 99 L Ed 905 (1955).
18 USC 371.
18 USC 1955.
Iannelli v United States, 420 US 770; 95 S Ct 1284; 43 L Ed 2d 616 (1975).
Bell v United States, n 13, supra, 349 US at 84.
People v Compian, 38 Mich App 289; 196 NW2d 353 (1972), lv den, sub nom People v Kondakor, 387 Mich 790 (1972). The result in Compian has since been approved by this Court. People v Bennett, 71 Mich App 246, 248; 247 NW2d 368 (1976).
MCLA 750.88; MSA 28.283.
MCLA 750.84; MSA 28.279.
People v Martin, 398 Mich 303; 247 NW2d 303 (1976); People v Stewart (On Rehearing), 400 Mich 540; 256 NW2d 31 (1977).
People v White, 390 Mich 245; 212 NW2d 222 (1973).
People v White, 390 Mich 245; 212 NW2d 222 (1973); Crampton v 54-A District Judge, 397 Mich 489; 245 NW2d 28 (1976).
1952 PA 73. Repealed by 1974 PA 266, effective April 1, 1975.
For an exception, see, People v Perry, 232 Mich 433; 205 NW 151 (1925).
Senate Bill 1207 is also the designation of the Criminal Sexual Conduct statute as an enrolled act.
These proposals were first submitted by letter, then formally presented by members of the taskforce to a meeting of the House Judiciary Committee held on November 14, 1973, and then were put in final form for the committee and Senator Byker in January, 1974. The proposals included suggested statutory language, copies of similar proposals being made for amendment of the criminal code in Washington, D. C., and statistics outlining the problem. In addition, the taskforce continued to provide input to the House and Senate throughout the time that the bills were being considered. Some of this input was at the direct request of members and committees of the Legislature. Although much of this input cannot be considered legislative history (because much of it was never presented to the full Legislature), nevertheless, it is important in the sense that the whole Legislature was aware, in a general way, of the group’s efforts, and it did recognize the pressure being exerted by this and the associated groups (position papers were filed, for example, by the National Organization of Women and by the Michigan Nurses Association). This pressure, and the additional time pressure which arose from the group’s effort to enact the legislation prior to the summer of 1974 (the summer months were said to represent the so-called "rape season”), explain some aspects of the statute’s structure and wording; perfect interweaving with the whole of the existing law is not to be expected under such pressured circumstances, especially when the existing law on one subject is being changed so drastically.
The State Journal (Lansing), November 15, 1973, p D-l, quoting Representative J. Bob Traxler, who was the chairman of the House Judiciary Committee.
House Bill 5802, Senate Bill 1207 (both introduced February 28, 1974).
Bienen, Rape II, 3 Womens Rights Law Reporter 90, 95 (1977).
MCLA 750.520Í; MSA 28.788(9). This section, and the sections that it references, should be read in the context of the expressed legislative intent for this Act. For example, the analysis section of the House Judiciary Committee prepared the following analysis of Senate Bill 1207 as of June 27, 1974:
"The Apparent Problem to Which the Bill Addresses Itself:
"5. The Problem of Non-Consent: Present law requires the prosecution to prove 'beyond a reasonable doubt’ that the rape occurred against the will of the victim. Some contend that it is almost impossible to prove the state of a person’s mind, especially since rape is generally a private crime.
"The Manner in Which the Bill Addresses Itself to the Problem:
"5. Non-Consent: The bill eliminates the present requirement that the non-consent of the victim must be proved 'beyond a reasonable doubt’ at the outset of a 'rape’ trial.”
One "Argument For” the bill, presented in the same analysis, stated: "The question as to whether or not the victim 'consented’ is not an issue in any felony other than rape. This bill would make the rape standard consistent with the standard for other felonies by allowing the victim to assess rationally the danger of injury or death and conduct herself/himself accordingly. The protection from having to prove non-consent to rape is essential in cases where the victim is mentally or physically helpless or surprised into non-resistance and therefore physically or mentally unable to convey non-consent.”
The sentence for first-degree criminal sexual conduct is life or any term of years. MCLA 750.520b(2); MSA 28.788(2X2).
MCLA 750.520b(l)(aMg); MSA 28.788(2)(l)(aMg).
That is, could be two distinct, separate offenses, if so charged.
People v Willie Johnson, 75 Mich App 221, 226-227; 255 NW2d 207 (1977). The Court there said:
"Canons of strict construction and the rule of lenity, in any event, would require that result in the absence of a clear legislative intent to the contrary.”
In regard to the criminal sexual conduct statutes, we perceive no legislative intent suggesting a rule of lenity for application to sexual offenses involving children. Canons of strict construction are inapplicable for the same reason.
Such special harms were recognized by those supporting the bill: "The new scheme will permit a closer tailoring of the charge to the actual seriousness of the deed in the case at hand, thereby more specifically implementing society’s goals in criminalizing the behavior involved. Thus, serious injury coupled with penetration would constitute first degree assault. In the case of a child under twelve, the injury is presumed; in the case of threat with , a dangerous weapon, the potential for death justifies removing the injury requirement. So also with the remaining degrees: the seriousness of the offense is determined by the two factors of penetration and injury rather than penetration alone, as under the present law.” Legal Effects of Proposed Rape Reform Bills, S. B. 1207, H. B. 5802, prepared by Virginia B. Nordby for the legislative committees.
(The House Judiciary Committee received this analysis on April 23, 1974. However, we do not consider this to be legislative history since the extent of this document’s distribution is uncertain.)
The existence of these separate harms leads to a collateral, practical problem. If, from several possible, seemingly equal charges, only one or two convictions are to be allowed, the problem arises as to the most practical method of accomplishing that result. It is easy, for example, to say that alternative jury instructions are to be given by the judge. This, however, simply moves the problem one step back. For example, on what basis should the jury be instructed to prefer one charge over another, especially when the offenses are of equivalent gravity and the respective interests being protected are of equal dignity? Does not any approach invite confusion even if the oral instructions are supplemented with a detailed list of permissible findings? If, instead, we allow the verdicts to be returned on all counts, the possibility of confusion is lessened, but the problem remains in regard to the basis upon which the judge is to sort out the verdicts.
US Const, Am V.
Const 1963, art 1, § 15.
390 Mich 245; 212 NW2d 222 (1973).
"The use of the same transaction test in Michigan will promote the best interests of justice and sound judicial administration. In a time of over-crowded criminal dockets, prosecutors and judges should attempt to bring to trial a defendant as expeditiously and economically as possible. 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 ' * » * wiU enable a defendant to consider the matter closed and save the costs of redundant litigation.’ ” 390 Mich 245, 258-259. (Footnote omitted.) Also, Ashe v Swenson, 397 US 436; 90 S Ct 1189; 25 L Ed 2d 469 (1970).
395 US 711; 89 S Ct 2072; 23 L Ed 2d 656 (1969).
395 US at 717.
85 US (18 Wall) 163; 21 L Ed 872 (1874).
395 US at 717-718.
398 Mich 303; 247 NW2d 303 (1976).
400 Mich 540; 256 NW2d 31 (1977).
400 Mich at 548.
Jeffers v United States, 432 US 137; 97 S Ct 2207; 53 L Ed 2d 168 (1977).
People v Robert Hall, 56 Mich App 10; 223 NW2d 340 (1974); People v Alcala, 396 Mich 99; 237 NW2d 475 (1976). | [
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N. J. Kaufman, J.
On April 10, 1973, the Wayne County Citizens Grand Jury indicted defendants and others on a charge of conspiracy to solicit personal injury claims in violation of MCLA 750.410; MSA 28.642. Defendants were bound over for trial March 17, 1975.
Defendants filed motions to dismiss the indictments, alleging that the statute under which they were indicted was unconstitutional. Detroit Re corder’s Court Judge Henry Heading denied the motions May 28, 1976. Judge Heading also denied defendants’ motions for rehearing.
Upon certification of the issues raised by defendants by the trial court, defendants filed application for leave to appeal. This Court granted leave.
The statute challenged by defendants originally provided:
"Sec. 410. Any person, firm, copartnership, association or organization of any kind, either incorporated or unincorporated, or any of the officers, agents, servants, employees, or members of any such person, firm, copartnership, association or organization of any kind, either incorporated or unincorporated, or of any division, bureau or committee of such association or organization, either incorporated or unincorporated, who shall directly or indirectly, individually or by agent, servant, employee, or member solicit any person injured as the result of an accident, his administrator, executor, heirs or assigns, his guardian, or members of the family of the injured person, for the purpose of representing such person in making claim for damages or prosecuting any action or causes of action arising out of any personal injury claim against any other person, firm or corporation, or to employ counsel for the purpose of such solicitation, shall be guilty of a misdemeanor, and shall upon conviction thereof, if a natural person, be punished by a fine not to exceed $500.00, or by imprisonment in the county jail for a term not to exceed 6 months, or by both such fine and imprisonment, in the discretion of the court. The same penalties shall apply upon conviction to a member of a copartnership, or any officer or agent of any corporation, association or other organization, or any officer or agent, who shall consent to, participate in, or aid or abet any violation of this section upon the part of the copartnership of which he is a member, or of the corporation, association or organization of which he is such an officer or agent. Any contract entered into as a result of such solicitation shall be void: Provided, however, That nothing herein shall affect an unsolicited contract entered into by any person, firm or corporation with an attorney duly admitted to practice law in this state.”
That statute was amended in 1975, by the changes indicated by the italicized language:
"Sec. 410. (1) A person, firm, copartnership, association or organization of any kind, either incorporated or unincorporated, or any of the officers, agents, servants, employees, or members of any such person, firm, copartnership, association or organization of any kind, either incorporated or unincorporated, or of any division, bureau or committee of that association or organization, either incorporated or unincorporated, who shall directly or indirectly, individually or by agent, servant, employee, or member, solicit a person injured as the result of an accident, his administrator, executor, heirs or assigns, his guardian, or members of the family of the injured person, for the purpose of representing that person in making a claim for damages or prosecuting an action or causes of action arising out of a personal injury claim against any other person, firm, or corporation, or to employ counsel for the purpose of that solicitation, is guilty of a misdemeanor, and shall upon conviction thereof, if a natural person, be punished by a fine not to exceed $500.00, or by imprisonment * * * for a term not to exceed 6 months, or both. * * * The same penalties shall apply upon conviction to a member of a copartnership, or an officer or agent of a corporation, association or other organization, or an officer or agent, who shall consent to, participate in, or aid or abet a violation of this section upon the part of the copartnership of which he is a member, or of the corporation, association, or organization of which he is such an officer or agent. A contract entered into as a result of such a solicitation is void. This subsection shall not affect an unsolicited contract entered into by a person, firm, or corporation with an attorney duly admitted to practice law in this state.
”(2) Except as otherwise provided by law, administrative rule, or valid legal process, any person, ñrm or corporation who, for any consideration and without the prior written permission of a patient or his personal representative, furnishes, receives, buys, offers to buy, sells, or offers to sell, directly or indirectly, the identity of the patient or any information concerning the treatment of the patient, including but not limited to information contained in the hies or records of a health care facility, health care provider or insurance company, is guilty of a misdemeanor punishable by imprisonment for not more than 6 months or by a fine of not more than $500.00, or both.”
A preliminary issue that must be dealt with is the question of standing of defendants to challenge the constitutionality of this statute.
The trial court, in denying defendants’ motions to dismiss, found that defendants were "asserting] the rights of those not in Court”. Thus, it noted, "[w]hile it is of paramount importance that precious First Amendment freedoms be given the most careful protection, there will be time enough to erect those barriers when the threat at issue is more substantial * * * ”. We cannot agree.
In First Amendment cases, the United States Supreme Court has permitted an exception to the traditional doctrine "that a person to whom a statute may constitutionally be applied will not be heard to challenge that statute on the ground that it may conceivably be applied unconstitutionally to others, in other situations not before the Court”. (Citations omitted.) Broadrick v Oklahoma, 413 US 601, 610; 93 S Ct 2908; 37 L Ed 2d 830 (1973). The Supreme Court noted:
"It has long been recognized that the First Amendment needs breathing space and that statutes attempting to restrict or burden the exercise of First Amendment rights must be narrowly drawn and represent a considered legislative judgment that a particular mode of expression has to give way to other compelling needs of society. Herndon v Lowry, 301 US 242, 258 [57 S Ct 732; 81 L Ed 1066] (1937), Shelton v Tucker, 364 US 479, 488 [81 S Ct 247; 5 L Ed 2d 231] (1960), Grayned v City of Rockford, 408 US [104], at 116-117 [92 S Ct 2294; 33 L Ed 2d 222 (1972)].” 413 US at 611-612.
Applying that principle to the standing doctrine, the Supreme Court held:
"As a corollary, the Court has altered its traditional rules of standing to permit — in the First Amendment area — 'attacks on overly broad statutes with no requirement that the person making the attack demonstrate that his own conduct could not be regulated by a statute drawn with the requisite narrow specificity.’ Dombrowksi v Pñster, 380 US [479], at 486 [85 S Ct 1116; 14 L Ed 2d 22 (1965)]. Litigants, therefore, are permitted to challenge a statute not because their own rights of free expression are violated, but because of a judicial prediction or assumption that the statute’s very existence may cause others not before the court to refrain from constitutionally protected speech or expression.” 413 US at 612.
The holding cited above is not an absolute, however. The Supreme Court noted that "[f]acial overbreadth has not been invoked when a limiting construction has been, or could be placed on the challenged statute”. 413 US at 613. Plaintiffs argue that a limiting construction has been placed on the statute, citing Hightower v Detroit Edison Co, 262 Mich 1; 247 NW 97 (1933), and Kelley v Judge of Recorder’s Court of Detroit, 239 Mich 204; 214 NW 316 (1927). However, we find that amendments to the statute subsequent to High- tower and Kelley have substantially broadened its scope; thus, those two cases cannot be used as authoritative constructional guides. We further hold that we cannot now give a limiting construction to the statute in such a way to deny defendants standing. As noted by this Court in Phillips v Flint, 57 Mich App 394, 399; 225 NW2d 780 (1975), " * * * in a First Amendment case, an ex post facto construction cannot vitiate the prior 'chill’ of an overbroad law on those who challenge it”.
Turning then to the merits of the case, defendants attack the statute as unconstitutionally vague, overbroad, and violative of the Equal Protection Clause of the Fourteenth Amendment. Substantially the same arguments were made in an action before Judge Horace Gilmore of the Wayne County Circuit Court, asking for declaratory and injunctive relief. In Woll v Kelley (Wayne County Circuit Court Action No. 76 610 569 CZ), Judge Gilmore ruled that the assailed statute was over-broad and represented a denial of equal protection. We agree with Judge Gilmore’s analysis as to overbreadth and thus reverse in this case.
On the question of vagueness, the trial court held:
"This court believes that the words themselves are sufficiently clear that 'the ordinary person exercising ordinary common sense can sufficiently understand and comply with them, without sacrifice to the public interest.’ CSC v Letter Carriers, 413 US 548, 579 [93 S Ct 2880; 37 L Ed 2d 796] (1973).
"There are limitations in the English language with respect to being both specific and manageably brief and it appears that, given the common knowledge of the raison d’etre of the Act, the legislature has adequately acquitted itself of that task.
"The Defendants’ alleged conduct falls squarely within the purpose of the statute and from their comments and their argument, it is apparent that Defendants are reasonably aware, both factually and legally, of what they are charged with.”
However, defendants complain that the trial court applied the wrong standard. They argue that what they may now be aware of after indictments have been returned against them is totally irrelevant as a matter of constitutional law. Defendants contend that the statute is unconstitutionally void for vagueness because it fails to give a person fair notice of what is prohibited before that person is indicted.
We agree with defendants that the trial court applied the wrong standard in this case. It has been held that a statute which either forbids or requires the doing of an act in terms so vague that people of common intelligence must necessarily guess at its meaning and differ as to its application, violates the first essential of due process of law. Lanzetta v New Jersey, 306 US 451, 453; 59 S Ct 618; 83 L Ed 888 (1939), People v Herron, 68 Mich App 381; 242 NW2d 584 (1976). The constitutional requirement of definiteness is followed in Michigan. People v Austin, 301 Mich 456; 3 NW2d 841 (1942), People v Goulding, 275 Mich 353; 266 NW 378 (1936), People v Ellis, 204 Mich 157; 169 NW 930 (1918). As found by the United States Supreme Court in Giaccio v Pennsylvania, 382 US 399, 402; 86 S Ct 518; 15 L Ed 2d 447 (1966):
"A law fails to meet the requirements of the Due Process Clause if it is so vague and standardless that it leaves the public uncertain as to the conduct it prohibits or leaves judges and jurors free to decide, without any legally fixed standards, what is prohibited and what is not in each particular case.”
In Woll v Kelley, Judge Gilmore, applying the proper standard, concluded:
"While conceding some complexity in the full text of MCLA 750.410, attributable to the complex nature of the subject and the many possible parties covered by the statute, the wording is not beyond comprehension to a person of normal intelligence. The basic operative phrases follow in logical order and are reasonably understandable. It is not enough for the plaintiff to merely allege that the wording is 'unbelievably awkward.’ The burden of proof is on the plaintiff to demonstrate the alleged 'inherent vagueness’ of the act. People v Raub, 9 Mich App 114 [155 NW2d 878 (1967)]. These allegations are insufficient to meet this burden.
"The statute provides fair notice as to what conduct is sought to be prohibited; and plaintiff’s contention of inherent vagueness must fail.”
We concur in Judge Gilmore’s conclusion. MCLA 750.410; MSA 28.642 is not inherently vague.
Defendants’ other contentions are not so easily resolved. On the issue of overbreadth, defendants argue that the statute could be used to prosecute constitutionally protected activity; thus, the statute is overbroad as a matter of law.
The trial court indicated that the dangers posed by an overbroad statute could be ameliorated to insignificance by a definitive construction of the statute. It said that only where solicitation occurred in the context of ''ambulance chasing” would it be constitutionally punishable under the statute. Thus, it concluded:
"[I]t is ineluctably clear that the sort of chilling of political activity, attributed by Defendants to the statute does not exist as it applies to the movants here, nor may it be enforced against the associations which the cases cited herein, refer to.”
On the other hand, Judge Gilmore maintained "the statute is so overbroad and the possibility of [a] narrowing construction so limited that it must be declared unconstitutional as it is presently written”.
Judge Gilmore’s analysis in Woll is correct. The United States Supreme Court has unequivocally held that state statutes regulating the unauthorized practice of law, solicitation, and lay intermediaries must fall to the extent that they impinge upon First Amendment rights of freedom of speech, petition, and association. United Transportation Union v State Bar of Michigan, 401 US 576; 91 S Ct 1076; 28 L Ed 2d 339 (1971), reversing, 383 Mich 201; 174 NW2d 811 (1970), United Mine Workers of America v Illinois State Bar, 389 US 217; 88 S Ct 353; 19 L Ed 2d 426 (1967), Brotherhood of Railroad Trainmen v Virginia State Bar, 377 US 1; 84 S Ct 1113; 12 L Ed 2d 89; reh den 377 US 960; 84 S Ct 1625; 12 L Ed 2d 505 (1964), NAACP v Button, 371 US 415; 83 S Ct 328; 9 L Ed 2d 405 (1963).
The United Transportation Union case bears careful scrutiny, because an analysis of that case best depicts the unconstitutional overbreadth of the present statute. There the Michigan State Bar sued in Jackson County Circuit Court to enjoin the members of a railroad union from violating MCLA 750.410; MSA 28.642. An injunction against the union’s activities was reversed and remanded by the Michigan Supreme Court (374 Mich 152; 132 NW2d 78 [1965]). The circuit court then entered a decree enjoining the union from giving or furnishing legal advice to its members or to their families; furnishing to any attorney the names of injured members or information relating to their injuries; accepting or receiving compensation of any kind, directly or indirectly, for the solicitation of legal employment for any lawyer, whether by way of salary, commission, or otherwise; sharing in the legal fees of any lawyer; controlling the fees charged by any lawyer; or stating or suggesting that a recommended lawyer would defray expenses of any kind or make advances for any purpose to such injured persons or their families pending settlement of their claim. The Michigan Supreme Court affirmed (383 Mich 201; 174 NW2d 811 [1970]).
On certiorari, the United States Supreme Court reversed. It held that the provision of the decree barring the union from controlling legal fees and the provision precluding the union from stating that a recommended lawyer would defray expenses or make advances violated the First Amendment right to act collectively to obtain affordable and effective legal representation; that the decree also violated First Amendment rights in enjoining giving or furnishing legal advice to union members or their families, furnishing to any attorney the names of injured members or information relating to their injuries, or accepting compensation of any kind for the solicitation of legal employment for any lawyer; and that the decree provision forbidding sharing fees or recoveries was unjustified as not supported by the complaint or the record.
The Court stated:
"In the context of this case we deal with a cooperative union of workers seeking to assist its members in effectively asserting claims under the FELA. But the principle here involved cannot be limited to the facts of this case. At issue is the basic right to group legal action, a right first asserted in this Court by an association of Negroes seeking the protection of freedoms guaranteed by the Constitution. The common thread running through our decisions in the NAACP v Button, Trainmen, and United Mine Workers is that collective activity undertaken to obtain meaningful access to the courts is a fundamental right within the protection of the First Amendment. However, that right would be a hollow promise if courts could deny associations or workers or others the means of enabling their members to meet the cost of legal representation.” 401 US at 585. (Emphasis added.)
The dissolution of the injunction in United Transportation Union v State Bar of Michigan, supra, and the reasoning behind the action can be taken as an expression of the United States Supreme Court’s belief that as of 1971, MCLA 750.410; MSA 28.642 was unconstitutionally over-broad. As noted earlier, the statutory language explains that "[a] person, * * * association * * * or members of any such * * * association * * * who shall directly or indirectly * * * solicit a person injured as the result of an accident * * * to employ counsel for the purpose of that solicitation is guilty of a misdemeanor * * * ”. The above excerpt apparently means that a person who, with benevolent motive, visits a friend in the hospital after an accident, intending to remind the friend that he should seek legal counsel to protect his rights, violates the statute. On its face, the statute prohibits constitutionally protected conduct. Nevertheless, the statute could still be saved "unless it is not readily subject to a narrowing construction * * * ”, Erznoznik v City of Jacksonville, 422 US 205, 216; 95 S Ct 2268; 45 L Ed 2d 125 (1975). We do not believe that, as to these defendants, a limiting construction is available, Phillips v Flint, 57 Mich App 394, 398-99; 225 NW2d 780 (1975) (cited earlier in this opinion). Therefore, we hold that MCLA 750.410; MSA 28.642, as it presently reads, is unconstitutionally overbroad. As the statute is unconstitutional, it is a nullity regarding defendants, Hiett v United States, 415 F2d 664, 666 (CA 5, 1969), cert den 397 US 936; 90 S Ct 941; 25 L Ed 2d 117 (1970). We are constrained to reverse the trial court and order dismissal of defendants’ indictments.
Because of our disposition of the overbreadth issue, we need not discuss defendants’ equal protection argument.
Reversed and remanded to the trial court with instructions to dismiss defendants’ indictments.
The reference to "could be placed” is inapplicable in this context. The Supreme Court was referring to its doctrine of "abstention”, withholding constitutional comment until an authoritative state construction has been placed on the questioned statute.
We realize that this holding raises the spectre that the act could never be authoritatively construed. We acknowledge the possibility of a prospective interpretation, but as that function has traditionally been left to the highest state court, e.g., Minnesota ex rel Pearson v Probate Court, 309 US 270; 60 S Ct 523; 84 L Ed 744 (1940), we defer to them. | [
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Bashara, J.
Defendant, City of Ann Arbor, appeals an injunctive order of the trial court, prohibiting the city from issuing any building permits. That order was predicated upon the trial court’s finding that the city’s sewage treatment facility was polluting the environment, in violation of the Michigan Environmental Protection Act of 1970. The remaining defendants appeal a contemporaneously issued order, restraining them from using certain real property for other than construction of single-family residences. A finding that the property was subject to a reciprocal negative easement formed the basis of that order.
Defendant Airey is a developer of residential real estate. He sequentially developed three resi dential subdivisions in Ann Arbor, containing single-family dwellings exclusively. As applies to this appeal, plaintiff represented a class consisting of residents of the first developed subdivision.
Coincident to recording the plat for the first subdivision, Airey recorded certain building and use restrictions. The recordation of the restrictions occurred on June 26, 1963, prior to sale of any of the lots to the plaintiff class. In addition to the land used for the other two subdivisions, Airey subsequently acquired other real property which gave him substantially all of the land in a triangular area bounded by three thoroughfares. It is that property within the triangle, other than the land used for the subdivisions, upon which the plaintiff successfully sought to impose the easement.
The trial court found that during the course of selling lots in the first subdivision, Airey and his agent represented that Airey owned, or controlled by option to purchase, all of the land within the triangle. Further, that all of the land would be developed exclusively as single-family residential. From this the trial court concluded that Airey was estopped to deny ownership of the land in question. The trial court then found that the "retained land” was benefited by the recorded use restrictions and was burdened with a reciprocal negative easement, restricting its use to single-family residential.
By creating a common ownership through the application of estoppel, an essential element was derived for imposition of the easement. However, neither the circumstances of this case nor the reasoning of the trial court justify application of the doctrine of reciprocal negative easement.
As the litigants recognize, the case of Sanborn v McLean, 233 Mich 227; 206 NW 496 (1925), establishes the criteria for ascertaining the applicability of the reciprocal negative easement doctrine. There is, however, a significant distinction between the factual background of Sanborn and its progeny and the case at bar. In the former, individual lots were sold by a common owner with only some of the deeds of conveyance containing use restrictions. To protect those who were expressly restricted in the use of their lots from uses by unrestricted lot owners that would adversely affect the character of the subdivision, the doctrine of reciprocal negative easement was developed. Its rationale, as an equitable doctrine, is based upon the fairness inherent in placing uniform restrictions upon the use of all lots similarly situated, notwithstanding that less than all of the deeds contain an express restriction. Thus, the implied restriction arises from the express restriction. See, e.g., Sanborn, supra, and Moore v Kimball, 291 Mich 455, 460; 289 NW 213, 215 (1939).
In the case under review, all lots within the subdivision were subject to the use restrictions recorded incident to recordation of the subdivision plat. The plain language of the recorded use restrictions makes them applicable to the lots contained in that particular subdivision. To extend those restrictions to land acquired by Airey more than a year later would be clearly contrary to the general rúle that restrictions, not being favored in the law, will neither be enlarged nor extended by construction. Johnson v Fred L Kircher Co, 327 Mich 377; 42 NW2d 117 (1950), Putnam v Ernst, 232 Mich 682; 206 NW 527 (1925).
Moreover, as a general rule, restrictions are construed strictly against those seeking their enforcement, and any doubts are resolved against restricting the use of real property. Moore v Kimball, 291 Mich at 461; 289 NW at 215. While Moore, Putnam, and Johnson addressed the substantive content of the restrictions, there is no significant reason why those rules should not also apply to the geographic extent of their operative effect. Here the restrictions by their terms covered lots within a particular subdivision. Nothing in the trial record supports the contention that at the time made, the restrictions were to encompass land outside that subdivision. All lot owners were subject to a uniform restraint on the use of their land; reciprocal negative easements were unnecessary to achieve that uniformity.
We are unable to discern any equity in extending the scope of those restrictions to include land not owned by Airey at the time the restrictions were created. The retroactive effect given by the trial court to Airey’s subsequent land acquisitions is at odds with the reciprocal negative easement requisite of common ownership at the time the express restrictions are created. See Sanborn v McLean, 233 Mich at 230; 206 NW at 497.
Were we to accept plaintiffs argument, subdivision developers would be discouraged from protecting lot buyers by recordation of uniform subdivision use restrictions. They would be placed in the tenuous position of being bound by an expression of future intention as to the use of land subsequently acquired near the subdivision, even though that use may no longer be physically or economically feasible. It is our opinion that the doctrine of reciprocal negative easement was not designed to have such an effect. Accordingly, we vacate the trial court’s order and dismiss the complaint against all defendants except the City of Ann Arbor.
The trial court found that the Ann Arbor sewage treatment facility discharges effluent, the character of which is violative of the conditions established in its discharge permit. This permit is issued by the state under authority derived from the Federal Water Pollution Control Act, as amended. Since the trial court placed significant emphasis upon these permit violations in issuing the injunction, we must determine whether they established a prima facie case under the Michigan act.
Ann Arbor concedes that its treatment plant has operated in violation of the discharge permit and acknowledges that the plant’s current capability renders compliance impossible given the community demands made upon the facility. Nevertheless, the city contends, there is no violation of the Michigan act because there is no substantial injury, or threat of substantial injury, to the environment or public health. The expert testimony at trial supported that argument.
Recognizing that its treatment plant was overburdened, Ann Arbor formed a special committee to formulate construction permit quotas. According to expert testimony, development pursuant to those quotas, although creating additional demands upon the treatment facility, would not result in a threat of substantial injury to the environment or public health. There was also testimony to the effect that previous efforts by Ann Arbor to gain state approval for expansion of the treatment facility were frustrated by the state’s commitment to a "super sewer” program, which was later abandoned.
Subsequently, Ann Arbor obtained the needed approval, and at oral argument this Court was advised by the city that a Federal grant was approved for the expansion program scheduled to commence before the end of this year. However, until the benefits of that program come to fruition, Ann Arbor will continue to violate the conditions of its discharge permit.
Our review of the trial court’s order must recognize the position of preeminence given to the resolution of environmental degradation problems. But our decision must also be tempered with pragmatism and a realization that the solution to such a complex array of problems is neither simple nor attainable within a short time span.
Limitations are imposed upon the amount of certain constituent elements of waste treatment effluent by the administrator of the Federal Environmental Protection Agency, 33 ÜSC §§ 1311 and 1314. Any pollutant discharged in the waste treatment effluent that exceeds those limitations is expressly made unlawful. 33 USC § 1311(a). The relationship between those Federally established limitations and the Michigan act is determinitive of the outcome of this case; i.e., does a violation of the limitations constitute a prima facie case under the Michigan act?
Enforcement of the Federally established effluent limitations is effected through the National Pollutant Discharge Elimination System. 33 USC § 1342. The medium of enforcement is the discharge permit, such as that issued to Ann Arbor. Where Federally approved programs are adopted, the adopting state may issue the discharge permit. 33 USC § 1342(a). However, the state program must comply with the Federal regulations establishing effluent limitations. American Frozen Food Institute v Train, 176 US App DC 105; 539 F2d 107 (1976). Although states may establish their own limitations, none may be less stringent than the Federal limitations. 33 USC § 1370. To the extent they so conflict, they are preempted by the Federal regulations under the supremacy clause of the United States Constitution. US Const, Art VI, American Iron & Steel Institute v EPA, 526 F2d 1027 (CA 3, 1975).
Ann Arbor contends that showing only a violation of the permit is insufficient to establish a prima facie case under the Michigan act. It is argued that the evidence must also establish some injury, or threat of injury, to the environment. This position is based upon Ann Arbor’s interpret tation of the meaning of the permit limitations. The city argues that the limitations are merely what the issuer believes to be practically attainable given the type of facility utilized, and that they bear no relation to the quality of the receiving environment or the effect on it resulting from exceeding a limitation.
We cannot agree with Ann Arbor’s view of the permit limitations, given the context of the enabling legislation. Rather, it is our conclusion that establishing violations of discharge permit conditions is sufficient to constitute a prima facie case that the defendant’s conduct "has, or is likely to pollute, impair or destroy the air, water or other natural resources or the public trust therein * * * ”.
Once a permit is issued, its conditions of effluent limitation set a point of demarcation above which a permit recepient may not lawfully emit pollutants from its treatment facility. 33 USC § 1311(a). The United States Supreme Court stated with regard to effluent limitations:
"Such direct restrictions on discharges facilitate enforcement by making it unnecessary to work backward from an overpolluted body of water to determine which point sources are responsible and which must be abated. In addition, a discharger’s performance is now measured against strict technology-based effluent limitations — specified levels of treatment — to which it must conform, rather than against limitations derived from water quality standards to which it and other polluters must collectively conform.
"Second, the Amendments establish the National Pollutant Discharge Elimination System (NPYDES) as a means of achieving and enforcing the effluent limitations. Under NPDES, it is unlawful for any person to discharge a pollutant without obtaining a permit and complying with its terms. An NPDES permit serves to transform generally applicable effluent limitations and other standards — including those based on water quality — into the obligations (including a timetable for compliance) of the individual discharger * * * .” EPA v State Water Resources Control Board, 426 US 200, 204-205; 96 S Ct 2022, 2024-2025; 48 L Ed 2d 578, 583-584 (1976) (Emphasis added, footnotes omitted.) See also E I duPont de Nemours & Co v Train, 430 US 112; 97 S Ct 965; 51 L Ed 2d 204 (1977), and LaPierre, Technology-Forcing & Federal Environmental Protection Statutes, 62 Iowa L Rev 771, 807-818 (1977).
Of course, effluent limitations are Federal standards set pursuant to Federal legislation and enforced in the Federal courts. However, the research resources of the Federal Environment Protection Agency underlie the formulation of those limitations. Moreover, in fixing the permit conditions pursuant to the effluent limitations, the expertise of our Department of Natural Resources is also employed. Neither the limitations nor the permit conditions are challenged by Ann Arbor. We must conclude, in light of these circumstances, that discharge permit violations constitute unlawful conduct within the proscription of the Michigan act. The purpose and policy of both Federal and Michigan environment legislation compels this result in "developing a common law of environmental quality”. See Ray v Mason County Drain Commissioner, 393 Mich 294, 306; 224 NW2d 883, 888 (1975).
It is also our conclusion that the trial court was correct in finding that Ann Arbor did not establish an affirmative defense under MCLA 691.1203; MSA 14.528(203). To prove the affirmative defense, it must be shown "that there is no feasible and prudent alternative to the defendant’s conduct and that such conduct is consistent with the promotion of public health, safety and welfare in light of the state’s paramount concern for the protection of its natural resources from pollution, impairment or destruction”. The defendant’s evidence must demonstrate both elements of the defense.
We concur with the trial court’s recognition that it is untenable to order the Ann Arbor treatment facility to cease operation. No one could reasonably contend to the contrary. There is no feasible and prudent alternative to sewage treatment, and terminating the existing plant’s operation would undoubtedly have devastating effects upon the health of the Ann Arbor community. However, this is not to say that the city may continue to permit increased community expansion without providing the necessary facilities to treat the concomitant waste by-products. To permit such conduct would exacerbate the existing environmental pollution, contrary to the interest of public health, safety, and welfare.
While the trial court’s order sought to eliminate any increase in environmental degradation, a laudable objective indeed, we must conclude that as a remedy, it was ill-conceived under the prevailing circumstances. Our conclusion is in nowise a disparagement of the trial court’s analysis. Rather, it is based upon the alternative remedial measures presented to this Court in the amicus curiae brief of the Ecology Center of Ann Arbor and the fact that Federal funding has been obtained for expan sion of the Arm Arbor treatment facility. None of these factors were present when the trial court formulated its order. Although Ann Arbor takes issue with some of the alternatives presented in the amicus brief, the evidentiary record is inadequate to support a final determination.
We therefore remand this aspect of the case for further proceedings consistent with this opinion. The trial court shall hold a further hearing within 40 days from the release date of this opinion and issue a substitute order, if any be required, 20 days thereafter. The present order of the trial court is vacated.
Reversed in part and remanded for proceedings consistent with this opinion. The complaint against all defendants, except the City of Ann Arbor, is dismissed. Costs to all defendants except the City of Ann Arbor, a public question being involved.
MCLA 691.1201, et seq.; MSA 14.528(201), et seq.
Sometime prior to trial the city had rezoned the property for multi-family residential use upon the application of defendant Airey.
For purposes of this opinion, it is unnecessary to differentiate the various organizational entites under which George V. Airey conducted his business.
The restrictions state in pertinent part:
"Vernon Development Co., a Michigan Corporation, being presently the owner of all of the lots in Lansdowne, in the City of Ann Arbor, Washtenaw County, Michigan, according to the plat thereof as recorded in Liber 16 of Plats, pages 43, 44 and 45, Washtenaw County Records, and with the purpose of insuring uniformity of improvements on said lots, and the beauty and value of property in said subdivision does hereby establish the following building and use restrictions and easements, which shall be applied to the entire subdivision, and shall run with the land and shall be binding upon all successors in interest to the undersigned, for a period of twenty-five years from the date of recording of this instrument after which time said restrictions shall be automatically extended for successive periods of ten years unless an instrument signed by a majority of the then owners of the lots has been recorded, agreeing to change said restrictions in whole or in part.
"These restrictions are made for the benefit of both the present and of all future owners of lots in said subdivision, and enforcement of same may be by any of such owners by proceedings at law or in equity against any person violating or attempting to violate same. Invalidation of any one of these covenants by judgment or by Court order shall in no wise [sic] affect any of the other provisions which shall remain in full force and effect.
"(a) No lot shall be used except for residential purposes. No building shall be erected, altered, placed or permitted to remain on any lot other than one single family dwelling not to exceed two stories in height with attached garage no more than 30 feet in width for not more than two cars.”
While our research has not disclosed any Michigan cases with a similar factual array, we note that under facts closely aligned with the case at bar, the Supreme Court of Delaware reached the same result. See Carey v Shellburne, Inc, 224 A2d 400 (Del, 1966).
33 USC § 1151, et seq., as amended.
Although completion of the expansion program will take three years, the city noted in its appellate brief that interim benefits will be realized that will enable it to better the existing facility’s performance, reducing the amount of pollutant discharged.
MCLA 691.1203; MSA 14.528(203).
It should also be noted that any challenge to the Federal limitations must be litigaged in the United States Court of Appeals. 33 USC § 1369(b)(1), E I duPont de Nemours & Co v Train, 430 US 112, 136-137; 97 S Ct 965, 979; 51 L Ed 2d 204, 222 (1977).
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R. B. Burns, J.
In this negligence action a jury returned a verdict in favor of plaintiffs Bruce Grubaugh and his wife Jean. Defendant city appeals, and we affirm.
This action arose out of an automobile accident which occurred in defendant city on a hazy March night in 1961. Bruce Grubaugh was a passenger in an automobile driven by Richard Grubaugh, northbound on Ottawa Street. Ottawa Street ends in a "T” intersection with Floral Avenue. As Richard approached the intersection, he struck a chuckhole, which splashed water on the windshield. A second or so later the automobile passed straight through the intersection and struck a tree. Richard did not realize the street ended and did not see the tree. Bruce brought suit in 1963 on the theory that the city was negligent in failing to provide a traffic control device to warn of the "T” intersection. Initial procedural difficulties ultimately culminated in a remand for trial by the Supreme Court. Grubaugh v City of St Johns, 384 Mich 165; 180 NW2d 778 (1970). It is from the judgment entered pursuant to the jury verdict in that trial that defendant now appeals.
Prior to trial the trial court granted Bruce Grubaugh’s motion to amend his complaint to add his wife Jean as a party plaintiff and assert loss of consortium, and ruled that the amendment related back to the time the original complaint was filed and was not, therefore, barred by the statute of limitations. Defendant’s argument that the claim for loss of consortium cannot relate back is without merit, the loss having arisen out of the same occurrence set forth in the original pleading. GCR 1963, 118.4, see Matson v Soronen, 57 Mich App 190; 226 NW2d 52 (1974), Plowman v Satkowiak, 22 Mich App 425; 177 NW2d 641 (1970), cf. Hockett v American Airlines, Inc, 357 F Supp 1343 (ND Ill, 1973).
The trial court excluded testimony presented by defendant that its police department had no record of any accident having occurred at the intersection for 12 years prior to the instant accident, citing Larned v Vanderlinde, 165 Mich 464, 468; 131 NW 165, 166 (1911), and McAuliff v Gabriel, 34 Mich App 344, 349-350; 191 NW2d 128, 131 (1971). Defendant argues that this testimony should have been admitted because it was relevant as to the issues of whether it had notice that the intersection was unsafe and as to whether the intersection was in fact unsafe.
Testimony is relevant if it has a legitimate tendency to establish or disprove a material fact. See, e.g., People v Nichols, 341 Mich 311, 331; 67 NW2d 230, 232 (1954), People v Becker, 300 Mich 562, 565; 2 NW2d 503, 505; 139 ALR 1171, 1173 (1942). Defendant was not liable for an injury caused by an unsafe condition unless it knew or should have known of the unsafe condition. MCLA 691.1403; MSA 3.996(103). Defendant contends that the absence of accidents would tend to prove that it was unaware of the unsafe condition. However, plaintiffs’ theory of recovery was that the intersection was unsafe without signs, and defendant conceded that it knew the intersection had no signs. Notice of the unsafe condition was therefore not a material issue. However, whether the intersection was in fact unsafe was a material issue, and, as admitted by plaintiffs’ expert witness, the prior accident history of an intersection is a rele vant consideration in the determination of whether an intersection should have a sign or signs. The testimony was therefore relevant.
Relevant evidence may be excluded if its probative value is outweighed by other factors. See, e.g., People v DerMartzex, 390 Mich 410, 415; 213 NW2d 97, 100 (1973). It has long been established in Michigan that evidence of the absence of previous accidents should not be admitted to prove absence of negligence. In Langworthy v Green Twp, 88 Mich 207, 215; 50 NW 130, 132 (1891), the Supreme Court held that the lower court properly excluded testimony as to whether the witness had ever known of anyone being injured previously upon an obstruction, citing Hodges v Bearse, 129 Ill 87; 21 NE 613 (1889), without comment. In Hodges, a lower court’s refusal to admit evidence of an elevator’s accident-free history was upheld, the Court finding such evidence immaterial because it would not rebut evidence of negligent construction and operation, and because it would distract the jury with collateral issues. In Larned v Vanderlinde, supra, our Supreme Court held that testimony that there had been no prior accident in nine years from an allegedly defective stairway was improperly admitted. The Court observed that evidence of previous accidents was not admissible to prove negligence because it would raise collateral issues, and stated that under that rule the converse would also be true — absence of accidents was not admissible to show absence of negligence. In La Due v Lebanon Twp, 222 Mich 301, 306-307; 192 NW 636, 638 (1923), testimony by witnesses that they had never heard of an accident on a hill previously was held properly excluded, the Court characterizing the testimony as negative evidence. This Court also characterized such testimony as negative evidence in McAuliff v Gabriel, supra, but found that evidence that others had safely negotiated an allegedly dangerous area was properly admitted only as to the issue of the condition of the area at the time of the accident.
The above cases indicate that the trial court did not err in the instant case. However, defendant argues that the above cases have been overruled by implication. Larned v Vanderlinde, supra, equated the rule that prior accidents are inadmissible to prove negligence with the rule that absence of accidents is inadmissible to prove absence of negligence. However, the rule that prior accidents are inadmissible to prove negligence has been overruled. See Freed v Simon, 370 Mich 473; 122 NW2d 813 (1963), Sullivan v Detroit & Windsor Ferry Co, 255 Mich 575; 238 NW 221 (1931), Branch v Klatt, 173 Mich 31, 34-35; 138 NW 263, 264 (1912). It is argued that there is no reason for distinguishing the two types of evidence.
We cannot agree that the Langworthy line of cases has been overruled. First, the rule that prior accidents were not admissible to prove negligence was overruled prior to the decision in La Due v Lebanon Twp, supra, and the Court in that case recognized that prior accidents were admissible to prove negligence. The Court nonetheless made the distinction and held that evidence of absence of accidents was inadmissible. Second, evidence of absence of accidents has less probative value than evidence of previous accidents, and thus is more easily outweighed by the factor that the collateral issue will result in jury confusion. Evidence of prior accidents involves positive proof directly tending to establish the existence of a defect, and raises the defendant’s standard of care to that of a person aware of the defect. See Freed v Simon, supra, at 475, fn; 122 NW2d at 814, fn. Evidence of absence of accidents usually involves generally unreliable negative evidence, see La Due v Lebanon Twp, supra, McAuliff v Gabriel, supra, cf. Dalton v Grand Trunk Western R Co, 350 Mich 479; 87 NW2d 145 (1957), and does not tend directly to prove absence of negligence, cf Hodges v Bearse, supra. Thus, evidence that police had no reports of accidents at the "T” intersection in the instant case could mean no more than that no such accidents had been reported or that such accidents had previously been avoided through blind luck. As plaintiffs’ expert testified, accident history, while relevant, was unnecessary for resolution of the issue of whether this intersection was unsafe where the need for traffic control devices was patent. The trial court properly excluded the proffered testimony.
The trial court admitted into evidence the Manual of Uniform Traffic Control Devices, promulgated pursuant to MCLA 257.608; MSA 9.2308, and permitted plaintiffs’ expert to read and rely upon portions thereof. Defendant argues that this evidence was irrelevant because the only material issue was whether the intersection was unsafe without signs, and the manual is only a guide to types of signs and does not indicate whether signs are necessary in any given situation. The availability of signs designed for "T” intersections which would make such intersections more safe would tend to establish that the instant intersection was unsafe without such signs. The trial court did not abuse its discretion. See Winekoff v Pospisil, 384 Mich 260; 181 NW2d 897 (1970), Jarecki v Ford Motor Co, 65 Mich App 78, 83; 237 NW2d 191, 194 (1975).
Defendant did not produce any expert witness, and plaintiffs’ counsel in closing argument asserted that defendant did not do so because no expert would testify that the intersection was safe. Defendant now argues that no adverse inference can arise from its failure to produce an expert witness because no such witness was under its control. The trial court did not instruct that such a presumption had arisen; the issue was properly left to argument by trial counsel. See Barringer v Arnold, 358 Mich 594, 605; 101 NW2d 365, 370 (1960).
Defendant argues that the trial court erred by not instructing on Bruce Grubaugh’s alleged contributory negligence. We agree with the trial court that there was no evidence of conduct by Richard Grubaugh such as would have caused a reasonable man to have refused to ride with him. See Graham v United Trucking Service, Inc, 327 Mich 694, 700-701; 42 NW2d 848, 852 (1950). Defendant failed to preserve for review the trial court’s other alleged instructional error. GCR 1963, 516.2.
Lastly, defendant argues that the trial court erred by permitting the jury to commence deliberation before it had completed placing its objections to the jury instructions on the record. GCR 1963, 516.2, Kirby v Larson, 400 Mich 585, 604-605; 256 NW2d 400, 409-410 (1977). However, it appears that this error was invited by defense counsel, and therefore cannot now be an asserted basis for reversal. GCR 1963, 529.1.
Affirmed. Costs to plaintiffs. | [
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Beasley, P. J.
This case involves a claim for damages arising out of alleged medical malpractice and is brought by an employee and his wife (hereafter jointly referred to as the plaintiff) against his employer’s workmen’s compensation insurance carrier and the physician to whom the carrier referred him. The case is one of the first in this state where, after receiving workmen’s compensation benefits, a plaintiff-employee, in a third-party action, seeks damages from a workmen’s compensation insurance carrier for alleged medical malpractice.
In the volatile field of third-party litigation under workmen’s compensation, a relatively new development is the attempt to treat the compensation carrier as a third party for purposes of tort suit based on alleged negligence in either safety inspections or medical services.
The record indicates that in March, 1972, plaintiff, Wayne Pankow, suffered a back injury while in the employ of LaSalle Machine Tool Company. Claiming workmen’s compensation benefits, he was referred to defendants, Macomb Orthopedic Associates, P. C. and Ronald J. Sables, M.D., by defend ant, Bituminous Casualty Company, the workmen’s compensation insurance carrier for his employer. Plaintiff continued treatment with defendant, Dr. Sables, for about three years, during which time surgery was three times performed. In April, 1976, plaintiff started suit for damages for alleged malpractice against defendants, Dr. Sables, the professional corporation and insurance company. His claim against the insurance company is on the theory that the physicians were agents of the compensation insurance carrier.
Plaintiff alleged in his complaint that Dr. Sables "acted as the agent of Defendant, BITUMINOUS CASUALTY COMPANY in the course of medically evaluating the claims of its insureds and on their beneficiaries” and that Dr. Sables "made reports of these evaluations and treatment to * * * [Bituminous] on a regular basis and in the course of * * * [the doctor’s] role as agent of * * * [Bituminous]”. Similar references to Bituminous were sprinkled throughout the complaint. In addition, plaintiff said that he "was compelled to visit the aforesaid medical facility [Macomb Orthopedic Associates, P. C.] and to 'cooperate with the doctor’ if he wished to pursue the benefits under his claim for Workmen’s Compensation”. The majority of the complaint was then devoted to alleging the malpractice and misrepresentations of Dr. Sables. Finally, the complaint contained damage allegations based on "the negligent acts and omissions alleged herein”.
Defendants, Dr. Sables and Macomb Orthopedic Associates, P. C., in their answer to the complaint, denied any agency relationship with Bituminous. Defendant carrier filed a motion for summary judgment under GCR 1963, 117.2(1) asserting plaintiffs complaint did not, as a matter of law, state a cause of action against the workmen’s compensation insurance carrier for the following reason:
"That, as a matter of law, an employee may not maintain an action against his employer’s Workmen’s Compensation carrier for any alleged subsequent acts of a physician to whom said carrier had sent the employee for a medical evaluation, and accordingly, Plaintiffs have failed to state a claim against Defendant Bituminous.”
Bituminous also recognized that, for the purposes of its motion, plaintiffs allegations had to be taken as true.
Plaintiffs response to the motion asserted questions of material fact and cited various cases from other jurisdictions on the agency question.
The trial court filed a written opinion granting the motion and indicating the basis for the ruling. Summary judgment was then entered for defendant carrier, leaving the medical malpractice claims against the physicians pending.
Plaintiff appeals as a matter of right. The summary judgment recites that it is awarded pursuant to GCR 1963, 117.2(3), the basis for which would be absence of any issue of material fact. This is obviously in error, since there are many material facts in dispute which would prevent summary judgment. By its terms, the motion was brought under GCR 1963, 117.2(1), and the trial court’s opinion was predicated on the assumption that defendant believed plaintiffs complaint did not state a cause of action. Consequently, we will treat the summary judgment as granted by the trial court under GCR 1963, 117.2(1).
As such, we take the allegations of fact in plaintiffs complaint as true, for purposes of deciding whether, as a matter of law, plaintiff has stated a cause of action against defendant carrier and, thus, whether defendant was entitled to summary judgment.
Thus, we measure whether the trial court erred in granting summary judgment to defendant carrier under GCR 1963, 117.2(1) by reviewing plaintiff’s complaint to find whether, as a matter of law, a cause of action is stated.
As indicated, plaintiff alleges that defendant physician is an agent of the carrier. Plaintiff does not allege that defendant carrier committed any specific, direct acts of negligence. For example, there is no allegation in the complaint that the carrier was negligent in selecting a physician. We conclude that plaintiff’s complaint limits his claim to alleged medical malpractice of defendant physician as agent for the carrier for which defendant carrier would be liable as principal.
The issue then is, under the facts alleged in plaintiff’s complaint, can defendant workmen’s compensation insurance carrier, as a matter of law, be liable to plaintiff-employee for any damages caused by the malpractice of defendant physician to whom defendant carrier referred plaintiff?
The trial court said not. We disagree and find that if plaintiff establishes, by a preponderance of the evidence, the allegations in his complaint, there is no legal reason preventing recovery of damages against defendant carrier.
In granting defendant’s motion for summary judgment, the trial judge stated as follows:
"The issue is whether a Workmen’s Compensation carrier can be held liable for the alleged malpractice of physicians, who an injured employee is sent to pursuant to the provisions of the Workmen’s Compensation Act.
"The law in this state is quite clear that an employer is not chargeable with the want of skill of a physician to whom its employee is sent to perform its duty to render medical services. Oliver v Ford Motor Co., 267 Mich 299 [255 NW 287] (1934).
"The defendant, Bituminous, clearly stands in the shoes of the employer herein and the Workmen’s Compensation Act is plaintiff’s exclusive remedy for injuries arising out of and in the course of employment. MCLA 418.101 et seq., [MSA 17.237(101) et seq.], Oleszek v Ford Motor Co., 217 Mich 318 [186 NW 719] (1922), Flood v Merchants Mutual Insurance Co., 230 Md 373; 18 A.2d 320 (1963).”
In Oliver, supra, a 1934 case, plaintiff-employee, suffering a headache, was treated in defendant’s first-aid room by a Swedish masseur who worked under a Ford physician, both being Ford employees. Claiming the masseur injured him, plaintiff brought suit against him and Ford Motor Company. At the conclusion of plaintiff’s case, the court directed a verdict for defendant, Ford Motor Company, saying defendant’s only duty to plaintiff was to exercise reasonable care in selecting a physician. Nowhere in the opinion did the court mention workmen’s compensation; today, a better reason for the result reached would be that, under the workmen’s compensation statute, the sole and exclusive remedy against the employer for work-incurred injury is payment of workmen’s compensation.
However, in any event, the Oliver case involves the duty owed by an employer to an employee who suffers a work-incurred injury, and is not necessarily analogous to the relationship between an employee and an insurance carrier under the facts asserted in plaintiff’s complaint.
The trial judge reasoned that the carrier stood in the shoes of the employer and, therefore, like the employer, the carrier’s only obligation was to pay workmen’s compensation benefits. He cites Oleszek v Ford Motor Co, supra, which was a 1922 case, involving a claim against the employer, not against the carrier. The court held workmen’s compensation benefits constituted the employer’s only obligation and dismissed a malpractice claim against the employer’s careless, unskilled, "first-aid” employees.
The trial judge’s premise that the carrier stood in the employer’s shoes is expressly negatived by Ray v Transamerica Insurance Co, where the Court said:
"Defendant now asks us to suppose that in part 3, § 15 the legislature has intended to include 'insurer’ by its sole use of the word 'employer’. We cannot accept this interpretation. To so hold would be to give greater meaning to the words used than is obvious the legislature itself intended to give, and would be an enlargement of the terms of the act by judicial fiat. This we are loath to do.
"The right which plaintiff asserts is a common-law right as to which the act has provided a statutory defense in favor of plaintiffs employer and his co-workers. * * * This Court will not read into the act a provision in derogation of the common-law right of an injured employee to sue a negligent third party for damages.” (Citations omitted.)
With respect to the Flood case* supra, also citéd by the trial judge, the Ray court spoke as follows:
" * * * The Maryland decisions are contrary to the view which we have taken. In Flood v Merchants Mutual Insurance Company, 230 Md 373 (187 A2d 320) (1963), the Court took the position that the phrase 'other than the employer’ did not include the insurer. Like the New Jersey trial court in Mager, supra, [Mager v United Hospitals of Newark, 88 NJ Super 421; 212 A2d 664 (1965)] Maryland appears to rely heavily on the subrogation dilemma to which we have already referred. Flood was followed in Donohue v Maryland Casualty Company, 248 F Supp 588 (DC Md, 1965). The reasoning of Donohue is that under Maryland law, when á carrier ássumés the duties of an employer, either common law or statutory, it stands in the shoes of the employer.
"We cannot say that as a matter of law the duty assumed in this case was the duty of the employer and not an independent Undertaking on the part of the insurer for its own internal purposes. Perhaps the duty assumed was coincident with that of the employer, but was that what the insurer is asserted to have assumed?
"Finding nothing to indicate that the legislature intended to blend the jural personalities of employer and insurer so as to bar a common law action against the latter, we hold that the motion for summary judgment was properly denied, and the case may proceed to trial for a determination of the question of liability,” 10 Mich App &t 63-64, 66.
We note that, subsequent to Ray, the Legislature has specifically identified the insurer with the employer insofar as safety services are concerned:
"The right to the recovery of benefits as provided in this act shall be the employee’s exclusive remedy against the employer. As used in this section and section 827 'employee’ includes the person injured, his personal representatives and any other person to whom a claim accrues by reason of the injury to or death of the employee, and 'employer’ includes his insurer, a service agent to a self-insured employer, and the accident fund insofar as they furnish, or fail to furnish, safety inspections or safety advisory services incident to providing workmen’s compensation insurance or incident to a self-insured employer’s liability servicing contract.”
However, the analysis Of the statute in Ray retains its vitality and can even be said to be strengthened since the Legislature, whéñ presented with the opportunity, declined to equate the insurer with the employer for all purposes,
Furthermore, § 827 of our workmen’s compensation statute provides as follows:
"Sec. 827. (1) Where the injury for which compensation is payable under this act was cáused under circumstances creating a legal liability in some person other than a natural person in the same employ or the employer to pay damages in respect thereof, the acceptance of compensation benefits or the taking of proceedings to enforce compensation payments shall not act as an election of remedies but the injured employee or his dependents or personal representative may also proceed to enforce the liability of the third party for damages in accordance with the provisions of this section. * * * Any party in interest shall have a right to join in the action.
"(5) In an action to enforce the liability of a third party, the plaintiff may recover any amount which the employee or his dependents or personal representative would be entitled to recover in an action in tort. Any recovery against the third party for damages resulting from personal injuries or death only, after deducting expenses of recovery, shall first reimburse the employer or carrier for any amounts paid or payable under this act to date of recovery and the balance shall forthwith be paid to the employee or his dependents or personal representative and shall be treated as an advance payment by the employer on account of any future payments of compensation benefits.” (Emphasis added.)
We hold that § 827, as interpreted by Ray, permits suit by plaintiff-employee against defendant workmen’s compensation insurance carrier. For purposes of that section of the statute, the carrier is a third party; contrary to the trial court’s finding, the carrier does not stand in the shoes of the employer.
Since plaintiff’s claim is limited to the alleged malpractice of the physicians, we consider whether plaintiff is precluded, as a matter of law, from asserting a malpractice claim against defendant physicians. If either defendant physician or defendant professional corporation was an employee of the employer, LaSalle Machine Tool Company, plaintiff would be prevented from asserting a malpractice claim against either by reason of the co-employee rule. Jones v Bouza interpreted the statute to defeat a malpractice claim against a physician where both, the plaintiff-employee and defendant-physician, were employed by the same employer. There is no allegation here that either defendant Dr. Sables or defendant professional corporation was an employee of LaSalle Machine Tool Company; therefore, the co-employee rule does not apply.
In Rogers v Horvath, this Court held that medical malpractice can only arise where there is a breach of duty arising from existence of a physician-patient relationship. That case held that where the physician was hired by the employer for the limited purpose of testifying at a hearing to determine whether compensation payments should cease, and where he only examined the claimant for that purpose and did not treat her, the physician owed no duty to the compensation claimant upon which malpractice could be asserted. In this case, plaintiff was treated by defendant physician for over three years, during which time defendant physician operated on plaintiff’s back three times. We do not read Rogers as necessarily precluding a malpractice claim under these circumstances.
While we recognize that the amended workmen’s compensation statute provides that after ten days the employee may select his own physician, we are unwilling to find, on this limited record, that plaintiff is, in all events, precluded from asserting a malpractice claim against defendant physician.
Since it is possible plaintiff can offer evidence and prove both the existence of an agency relationship between the carrier and the physicians, and that defendant physician was guilty of medical malpractice, we find summary judgment was improvidently and prematurely granted to defendant carrier. We set aside the summary judgment and remand the case for proceedings consistent with this opinion.
In so doing, we recognize that defendant workmen’s compensation insurance carrier is entitled to be subrogated to any recovery plaintiff might obtain. This means defendant carrier will be on both sides, albeit under present custom, a "silent plaintiff”. The argument that the Legislature intended to exempt carriers from liability in this situation to avoid the ludicrous situation of the carrier being both a plaintiff and defendant was expressly rejected in Ray. While giving effect to the Ray ruling, we recognize some of the procedural problems that will confront the trial judge on remand;
In connection with remand, we advise that we do not intend our disposition of this appeal to preclude the possibility that upon completion of discovery, further motions for summary judgment or otherwise will have to be decided. Our present ruling will not necessarily prevent, in advance of trial, determination of such issues as: whether an agency relationship between defendant carrier and defendant physicians existed and, if so, its scope and extent; the effect, if any, of the statute which permits an employee after ten days to be treated by his own physician at the employer or carrier’s expense, on the facts of this case; whether a physician-patient relationship existed between defendant physician and plaintiff so as to impose a duty on the physician and, if so, when it arose, and when it ended; and whether the jurors should be fully advised as to the carrier’s dual capacity as a defendant and a silent plaintiff. We merely suggest that our decision here does not preclude hearings, testimonial if necessary, for determination of these questions before the jury trial begins.
Reversed and remanded.
See, 2A Larson’s Workmen’s Compensation Law, § 72.90, p 14-123 et seq.
Oliver v Ford Motor Co, 267 Mich 299; 255 NW 287 (1934), but see, Overbeek v Nex, 261 Mich 156; 246 NW 196 (1933), where the Court said the employer was obligated to pay workmen’s compensation where the medical malpractice of a physician hired by the employer aggravated the original industrial injury (a broken arm) and, therefore, the employer was subrogated to the employee’s settlement of the malpractice claim. As interpreted by that Court, Overbeek is an exercise of the option to accept workmen’s compensation benefits rather than an exercise of the option to sue the employer as was done in Oliver. Also see, Crawley v General Motors Truck Corp, 259 Mich 503; 244 NW 143 (1932), where the Court held that a medical malpractice injury (unintentionally cutting a hole in the urethra) was not an aggravation of the first work-incurred injury (serious injury to kidney from falling board) and was not caused by or traceable to the original injury. Thus, the Court held, as there was no workmen’s compensation payable because the injury did not arise out of his employment, that plaintiff could sue the physician and the company for malpractice (even though the physician was only hired to examine plaintiff for the purpose of testifying in a hearing to terminate payment of workmen’s compensation benefits).
Oleszek v Ford Motor Co, 217 Mich 318; 186 NW 719 (1922), where plaintiff fell on an oily floor, was treated by nonphysicians in defendant’s first-aid room, developed an infection, had his leg amputated and was fired. When plaintiff sued defendant, his employer, for what appeared to be obvious malpractice, the Court dismissed his case on the ground that since the infection was directly traceable to the work-incurred injury, his sole remedy against his employer was for payment of workmen’s compensation benefits.
Ray v Transamerica Insurance Co, 10 Mich App 55, 61-62; 158 NW2d 786 (1968); this is the first case under this name and style, leave to appeal was denied 7/24/68, see, 381 Mich 766; the case was then tried and appeal taken and reported in 46 Mich App 647; 208 NW2d 610 (1973).
MCLA 418.131; MSA 17.237(131).
MCLA 418.827(1), (5); MSA 17.237(827X1), (5).
Then MCLA 413.15; MSA 17.189, now MCLA 418.827(1); MSA 17.237(827X1).
Jones v Bouza, 381 Mich 299; 160 NW2d 881 (1968).
Rogers v Horvath, 65 Mich App 644; 237 NW2d 595 (1975).
MCLA 418.315; MSA 17.237(315).
MCLA 418.827(5M7); MSA 17.237(827)(5M7).
Ray v Transamerica Insurance Co, supra, at 62-63. | [
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Danhof, C. J.
The prosecutor appeals, by leave granted, from the May 4, 1977, order of the circuit court directing reinstatement of a plea bargain. Because this Court granted the prosecution’s motion for stay of proceedings in its order granting leave to appeal defendant has not pled guilty pursuant to the reinstated bargain, but he stands ready to do so.
Defendant was charged, in a two-count information, with armed robbery, MCLA 750.529; MSA
28.797, and with possession of a firearm during the commission or attempted commission of a felony, MCLA 750.227b; MSA 28.424(2). After preliminary examination and pretrial conference, at which the possibility of a plea bargain was discussed, an assistant prosecuting attorney who was Chief of the Jackson County Prosecutor’s Trial Division contacted defense counsel and proposed a plea bargain on April 19, 1977. Under the terms of the proposed plea bargain, defendant would plead guilty to the offenses of attempted armed robbery and possession of a firearm during the commission of a felony, and would assist the police by giving them information regarding an unrelated criminal matter then under investigation, in return for the reduced charge.
On April 20, 1977, defendant agreed to the proposed plea bargain after discussing it with defense counsel, who thereupon communicated defendant’s acceptance of the plea bargain to the assistant prosecutor, stating that defendant would tender his plea after defense counsel had had an opportunity to confer with defendant’s parents. It was agreed that defendant would plead guilty on Friday, April 22, 1977. Before defense counsel had a chance to communicate with defendant’s parents, however, on April 21, the prosecutor’s office notified defense counsel that the plea offer was being withdrawn because the bargain was contrary to the prosecutor’s charging policy.
The parties stipulated at the hearing on the motion to reinstate the negotiated plea that defendant had made no statement to the police in reliance upon the plea agreement prior to its withdrawal by the prosecutor. Although the trial judge made no express finding of abuse of discretion by the prosecutor, nor of prejudice to defendant, he thought that under People v Reagan, 395 Mich 306; 235 NW2d 581 (1975), "the Prosecutor must show more good faith and be held to a higher standard than someone who is in the ordinary market place”. Accordingly, he ordered the plea bargain reinstated.
To assess the propriety of the trial judge’s action, account must be taken of three fundamental precepts. First, as the United States Supreme Court recognized in Santobello v New York, 404 US 257; 92 S Ct 495; 30 L Ed 2d 427 (1971), "the disposition of criminal charges by agreement between the prosecutor and the accused, sometimes loosely called 'plea bargaining’ is an essential component of the administration of justice,” id. at 260; 92 S Ct at 498; 30 L Ed 2d at 432, and, "when a plea rests in any significant degree on a promise or agreement of the prosecutor, so that it can be said to be part of the inducement or consideration, such promise must be fulfilled”. Id. at 262; 92 S Ct at 499; 30 L Ed 2d at 433. Secondly, "[t]he standards of commerce do not govern, and should not govern, the administration of criminal justice”, Reagan, supra, at 314, and once the prosecutor has pledged the public faith the court may hold him even to an unwise bargain. Id. 318. The judge’s power to so bind the prosecutor is circumscribed, however:
"A circuit judge does not enjoy supervisory power over a prosecuting attorney. He may reverse a magistrate’s decision only for abuse of discretion. He may not properly substitute his judgment for that of the magis trate or prosecuting attorney as if he were reviewing the magistrate’s decision de novo or acting in a supervisory capacity with respect to the prosecuting attorney. He may reverse or revise their decisions only if it appears on the record that they have abused the power confided to them.” Genesee Prosecutor v Genesee Circuit Judge, 391 Mich 115, 121; 215 NW2d 145 (1974) (footnotes omitted) (hereinafter Genesee II).
This limitation upon the trial judge’s power to control the exercise of prosecutorial discretion is founded upon the doctrine of separation of powers. Genesee Prosecutor v Genesee Circuit Judge, 386 Mich 672, 684; 194 NW2d 693 (1972) (hereinafter Genesee I), Genesee II, supra, at 121, People v Stewart, 52 Mich App 477, 483 n 7; 217 NW2d 894 (1974), lv den, 396 Mich 831 (1976). "Even, as in Michigan, when the judge may veto the prosecutor’s decision to nolle prosequi, he lacks the power to dismiss on his own motion over prosecutorial objection.” People v Stewart, supra, at 483. The court’s statutory power to veto the prosecutor’s decision to discontinue a criminal proceeding,
"was not meant to significantly impair the common-law rule that only the prosecutor could exercise the power to enter a nolle prosequi. Rather, the statute was enacted primarily to protect defendants by not allowing prosecutors to exercise this power unless the reasons therefor were stated on the record and leave of the court was obtained and recorded. While the statute, by requiring the trial court’s permission, does effect some infringement on the prosecutor’s exclusive common-law power, the initial decision as to whether or not to enter a nolle prosequi nevertheless remains an executive function and a part of the duties of the prosecutor.” People v Nelson, 66 Mich App 60, 64; 238 NW2d 201 (1975).
Whether the trial judge’s action in reinstating the plea bargain in this case is viewed as analogous to an amendment of the information to include a lesser offense not charged, a practice disapproved in Genesee Prosecutor I, supra, or as a judicial dismissal not based on a lack of evidence, as in Stewart, supra, and Nelson, supra, he acted improperly unless the prosecutor can be said to have abused his discretion by withdrawing from the plea agreement. Although People v Reagan, supra, upon which the trial judge relied in concluding that "when a bargain is struck, it should be in good faith and upheld on both sides”, does refer to a "pledge of public faith”, a breach of which might constitute an abuse of discretion, it is clear from a close reading of the Reagan opinion that the bargain there was not binding until after the trial court approved the order of nolle prosequi:
"We conclude that the prosecutor’s office, in entering into the agreement with defendant, gave a pledge of public faith which became binding when the nolle prosequi order was approved by the trial judge.” Reagan, supra, at 309 (emphasis added).
"The approval or lack of approval of the agreement by the trial court was not viewed as determinative under Florida law which does not require judicial approval of nolle prosequi. (Citations omitted.) Michigan law does require judicial approval. See MCLA 767.29; MSA 28.969, cited above. Lack of judicial approval when such is statutorily required has been said to nullify the effect of purportedly dispositional agreement between the prosecution and a defendant.” Id. 316 n 13 (emphasis added).
"In Michigan, a trial court approval is the sine qua non of the decision to nolle prosequi.” Id. 317.
"Under the facts of this case, however, entry of the order of nolle prosequi was by its presence the final act of fruition of a binding agreement.” Id. 318 (emphasis added).
"In our view, a pledge of public faith in this instance gave force to an unwise agreement which became binding upon trial court approval of nolle prosequi.” Id. (emphasis added).
Accord, People v Shipp, 68 Mich App 452, 457; 243 NW2d 18 (1976) ("defendant’s performance of his part of the agreement made it binding on the prosecutor’s office.”).
Thus, even under the Reagan rule, his pledge of public faith nothwithstanding, the prosecutor is not bound by his unwise agreement until after trial court approval thereof coincident to entry of an order bringing the agreement to "fruition”. Similarly, in People v Ciatti, 17 Mich App 4, 7-8; 168 NW2d 902 (1969), this Court noted that "Since defendant’s counsel should know that a prosecutor has no right to enter a nolle prosequi of a case without leave of the court (citation omitted), defendant's attorney could not rely on any agreement with the prosecutor as a reason for being unprepared”. (Emphasis added.) By the same token, defense counsel in this case had no more right to rely on the plea agreement prior to its approval by the trial judge, since its implementation would have required trial court approval of an order of nolle prosequi for the armed robbery count and a motion to add the attempt count.
Balanced against the non-binding, but nevertheless broken, pledge of public faith are two additional considerations that we believe lead to a different result here than in Reagan. First, defense counsel stipulated that defendant had performed no act in reliance upon the agreement that might prejudice his defense. The loss of the one-day period that the agreement was purportedly in effect is not alleged to have prejudiced defendant in the preparation of his defense, nor did defendant make any inculpatory statements that might be used against him to the police in reliance upon and compliance with the terms of the agreement. In contrast, in Reagan defendant had submitted to a polygraph test, a potentially prejudicial factor that the Court took into account in arriving at its decision. Reagan, supra, at 314 n 10. In the absence of any showing whatsoever of prejudice to defendant stemming from the prosecutor’s breach of the tentative agreement, a second factor tips the balance:
"For the judiciary to claim power to control the institution and conduct of prosecutions would be an intrusion on the power of the executive branch of government and a violation of the constitutional separation of powers. Const 1963, art 3, § 2. It also violates our fundamental sense of fair play.” Genesee I, supra, at 684 (emphasis added).
Although we do not condone the conduct of the prosecutor’s office in this case, neither do we think it proper, in the absence of a finding of abuse of prosecutorial discretion and resultant prejudice to defendant, for the trial judge to undertake to impose upon the prosecutor an agreement with terms he believes to be unwise. Such agreements are not binding upon the prosecutor, in the absence of prejudice to a defendant resulting from reliance thereon, until they receive judicial sanction, anymore than they are binding upon defendants (who are always free to withdraw from plea agreements prior to entry of their guilty plea regardless of any prejudice to the prosecution that may result from a breach). To hold the prosecutor bound by the agreement under the circumstances outlined above would, we believe, actually inhibit the dispositional use of plea bargaining by placing the prosecutor at an absolute disadvantage. This, too, violates our fundamental sense of fair play. Absent any showing or allegation of prejudice to the defense resulting from the prosecutor’s breach of faith, we decline to permit judicial intrusion upon the function of his office.
The ruling of the trial judge granting defendant’s motion to reinstate the plea bargain is reversed and this case is remanded for further proceedings under the unamended information consistent with this opinion.
The pretrial summary directed counsel to "discuss the possibility of a negotiated plea”, and to complete all plea negotiations on or before May 6, 1977.
The trial judge thought that the question of whether there was prejudice to defendant was “awfully close”, but stated that it would not make any difference to his decision.
MCLA 767.29; MSA 28.969 provides such authority: “It shall not hereafter be lawful for any prosecuting attorney to enter a nolle prosequi upon any indictment, or in any other way to discontinue or abandon the same, without stating on the record the reasons therefor and without the leave of the court having jurisdiction to try the offense charged, entered in its minutes.”
Since defendant has not yet tendered his guilty plea or performed any part of the plea agreement, he does not seek the remedy of specific enforcement of the agreement, as in Santobello, supra, People v Shipp, 68 Mich App 452, 456-457; 243 NW2d 18 (1976), and People v Eck, 39 Mich App 176; 197 NW2d 289 (1972). In each of those cases specific performance, or the alternate remedy of plea withdrawal, was available only after the plea had been accepted, defendant had acted to his prejudice in reliance upon the agreement, and the prosecutor had thereafter refused to perform its part of the bargain; Santobello and its progeny do not involve court compelled performance of a tentative agreement from which the prosecutor has withdrawn prior to judicial approval. | [
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M. F. Cavanagh, J.
Defendant and third-party plaintiff Frankenmuth Mutual appeals from a trial court order granting summary judgment for third-party defendant Tyrolean Hills. GCR 1963, 117.2(1).
On December 20th, 1973, Marguerite Pollock was killed when another vehicle collided with an automobile operated by her, titled in her husband’s name, and insured by defendant Frankenmuth Mutual. Her husband and their two sons filed a claim against Frankenmuth for no-fault benefits. A dispute arose concerning the Pollocks’ right to recover benefits, and they brought suit.
The controversy centered on whether Marguerite Pollock’s death had occurred while she was employed by Tyrolean Hills and under circumstances giving rise to a claim for workers’ compensation benefits. Frankenmuth claimed that such benefits were payable, and that § 3109(1) of the no- fault act [MCLA 500.3109(1); MSA 24.13109(1)], entitled Frankenmuth to subtract the amount of such benefits from any payments due under the policy. Frankenmuth insisted that it was entitled to subtraction of payable benefits even though plaintiffs refused to file for them.
Frankenmuth successfully moved to join Tyrolean Hills as a third-party defendant and filed a third-party complaint. GCR 1963, 204.1(1), 111.1. The complaint alleged tortious conduct by Tyrolean Hills in failing to have in effect workers’ compensation insurance and in combining together with plaintiff Channing Pollock to prevent liability for workers’ compensation benefits for the death of Marguerite Pollock. Channing Pollock was part owner and manager of Tyrolean Hills at the time the compensation liability was said to have arisen.
Tyrolean Hills moved for summary and accelerated judgment on a number of grounds. GCR 1963, 116.1; 117.2. However, the trial court ruled only that § 3109(1) of the no-fault act was void as violative of the equal protection clauses of the Federal and state constitutions. US Const, Am XIV, Const 1963, art 1, § 2. Frankenmuth Mutual’s third-party claims fell with the statutory right of subtraction upon which they were based. Accordingly, the court entered summary judgment for third-party defendant Tyrolean Hills on the ground that Frankenmuth Mutual had failed to state a claim upon which relief can be granted. GCR 1963, 117.2(1). The sole question before us on this appeal is the correctness of the lower court’s ruling on the constitutional issue, Le., whether § 3109(1) of the no-fault act denies equal protection of the laws when applied to require subtraction of payable workers’ compensation benefits from any recovery of personal protection benefits due under a no-fault policy. We hold that the section is constitutionally repugnant, and affirm.
Recent decisions of our Court have established the rational basis test as applicable for evaluating equal protection challenges to sections of the no-fault act. McKendrick v Petrucci, 71 Mich App 200, 204-206; 247 NW2d 349, 351 (1976), Shavers v Attorney General, 65 Mich App 355, 366-368; 237 NW2d 325, 331-333 (1975), lv granted, 396 Mich 869 (1976). See generally, Manistee Bank & Trust Co v McGowan, 394 Mich 655, 668-672; 232 NW2d 636, 641-643 (1975). Our task under this test is to examine the legislation "to see if its classifications are reasonable, and bear some reasonable relationship to the object of the legislation”. Shavers v Attorney General, supra, 65 Mich App at 369; 237 NW2d at 333.
It is contended here that § 3109(1) makes an arbitrary classification between those entitled to benefits collateral to recovery on a no-fault policy. The act provides as follows:
"Sec. 3109. (1) Benefits provided or required to be provided under the laws of any state or the federal government shall be subtracted from the personal protection insurance benefits otherwise payable for the injury.” MCLA 500.3109(1); MSA 24.13109(1).
The act does not require subtraction of collateral benefits payable from insurance policies purchased privately and without compulsion of state or Federal law.
Appellee argues, and the lower court concluded, that this disparity in treatment bears no reasonable relationship to the objective of the legislation. In O’Donnell v State Farm Mutual Automobile Insurance Co, 70 Mich App 487; 245 NW2d 801 (1976), lv granted, 397 Mich 848 (1976), another panel of this Court considered the legislative purpose and the constitutionality of § 3109(1) as applied to require the subtraction of social security benefits from recovery on a no-fault insurance policy. See also, Wysocki v DAIIE, 77 Mich App 565; 258 NW2d 561 (1977). En route to its holding that the statute was unconstitutional, the O’Donnell Court defined the presumed purpose of this section in relation to the no-fault statutory scheme:
"The basic purpose of no-fault is to insure the compensation of persons injured in automobile accidents.
"Presumably, the purpose of § 3109(1) is to reduce the overall cost of the no-fault program by eliminating duplicative recovery. If the insurer has to pay less, he can charge less. As recognized in Shavers, the reduction of the cost of insurance is a proper basis for legislative classification, and prohibitive cost was a problem that needed solution.” 70 Mich App, at 495; 245 NW2d, at 803.
The panels in O’Donnell and Wysocki based their holdings on a finding that distinguishing between recipients on the basis of the origin of their benefits was arbitrary, and without legitimate purpose. O’Donnell v State Farm Insurance, supra, 70 Mich App, at 498; 245 NW2d, at 804-805, Wysocki v DAIIE, supra, 77 Mich APP at 571.
We must disagree; there is logic in the distinction drawn between these two classes. We accept for this analysis the O’Donnell Court’s statement of the statute’s purpose: the lowering of premiums by the reduction of claims that duplicate other recovery. It is reasonable to conclude that requiring subtraction of government benefits would further this purpose. The crucial question then be comes whether it is reasonable to think that extending the subtraction rule to benefits payable under private insurance contracts would not further the statute’s purpose. Although the immediate result of requiring subtraction of collateral private insurance benefits would be a reduction in claims on mandatory no-fault policies, the long term effect would almost certainly be deterrence of purchase of duplicative policies. It simply makes no sense to pay premiums for extra coverage if the subtraction rule strips that coverage away. If no one buys extra insurance, then of course it is not available as a source of primary recovery to reduce no-fault claims and, with them, no-fault premiums. In sum, it is reasonable to believe that requiring subtraction of government benefits may reduce no-fault premiums, but that requiring subtraction of private collateral insurance benefits would only discourage the purchase of such insurance, without reducing no-fault premiums. Therefore, we find the distinction made between recipients of government mandated benefits, on the one hand, and duplicate private insurance benefits, on the other, to be reasonable in light of the presumed legislative goal.
However, this conclusion does not allay our concern regarding the constitutionality of § 3109(1). Even assuming that the subtraction rule does lower insurance premiums, we are disturbed by the discriminatory distribution of those savings inherent in the no-fault scheme.
If the subtraction rule functions as intended, it denies recovery on no-fault policies for the purpose of lowering premiums. However, those lowered premiums, if such there are, are not required to be made available to policyholders in proportion to the extent to which their workers’ compensation coverage duplicates, and thereby supplants, their no-fault coverage. Instead, the savings are supposedly passed on to all insureds, including those not covered by workers’ compensation. The motorist employee is compelled to have in effect a no-fault policy [MCLA 500.3101(1); MSA 24.13101(1)], denied recovery on claims compensable by workers’ compensation, ostensibly for the purpose of lowering premiums, and then denied the full benefit of the savings in premiums. In short, the class of insureds entitled to workers’ compensation as well as no-fault recovery is forced to subsidize premium savings by the greater class of all insureds. To put the matter another way, worker motorists are forced to purchase insurance on which the law denies them a right of recovery, so that other insureds may enjoy lower premiums for insurance on which they can recover.
We perceive no way in which this allocation increases premium savings. Forcing a given class to purchase insurance upon which they cannot recover will tend to reallocate wealth, but will do so in a manner unrelated to any identifiable legislative policy. We do not regard the random redis tribution of wealth as a legitimate legislative objective, sufficient to justify the discriminatory effect of § 3109(1).
Affirmed.
We regard Bowser v Jacobs, 36 Mich App 320; 194 NW2d 110 (1971), as distinguishable on its facts. That case held that persons who had received workers’ compensation benefits could not constitutionally be denied further recovery from the Motor Vehicle Accident Claims Fund, where other persons with available means of recovery were not similarly turned away. Bowser found this discriminatory treatment irreconcilable with the legislative purpose behind creation of the fund: assuring compensation for those injured by uninsured tortfeasors and without other adequate sources of recovery.
It is not alleged in this case that the operation of § 3109(1) would deny plaintiffs adequate recovery. Because of our disposition of the constitutional issue, infra, we need not speculate as to what our holding would be if such an allegation were made and sustained by the facts of this case. But cf., Murray v Ferris, 74 Mich App 91; 253 NW2d 365 (1977).
Contrast the provision made for those with "other health and accident coverage.” MCLA 500.3109a; MSA 24.13109(1). | [
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D. E. Holbrook, Jr., J.
The parties have stipulated to the facts in this case which involves resolution of a potential conflict between two statutes. Contending that the defendant university failed to obtain proper certification for its nursing program thereby preventing her from obtaining credentials necessary for a nursing degree, plaintiff Sylvia Paquin filed a $25,000 damage suit for breach of contract in Marquette County Circuit Court. Defendant university filed its answer and moved for accelerated judgment on the grounds that the Court of Claims had exclusive subject matter jurisdiction of a breach of contract suit against a state instrumentality according to MCLA 600.6419; MSA 27A.6419. Plaintiff responded by arguing that the circuit court had concurrent jurisdiction based on MCLA 390.555; MSA 15.1120(5) which states in part:
"A board of control [of a state regional university] is a body politic and corporate. It * * * may sue and be sued, plead and be impleaded in all the courts in this state * * * . (Emphasis supplied.)
The circuit judge denied defendant’s motion for accelerated judgment since he concluded MCLA 390.555; MSA 15.1120(5) was a more recent legislative enactment and therefore took "precedence” over the older Court of Claims statute. In denying defendant’s motion for rehearing, the circuit judge agreed to certify that an immediate appeal, regarding a controlling question of law, would mate rially advance the termination of the litigation. GCR 1963, 806.3(l)(a)(ii).
When there is a potential conflict between two statutes arguably covering the same subject matter, they must be construed to preserve the intent and meaning of each and, if possible, interpreted in such a way that neither denies the effectiveness of the other. People v Buckley, 302 Mich 12, 22; 4 NW2d 448 (1942), concurring opinion of Justice Williams in Council No 23, Local 1905, AFSCME v Recorder’s Court Judges, 399 Mich 1, 10-11; 248 NW2d 220 (1976), citing his opinion in Borden, Inc v Department of Treasury, 391 Mich 495, 523; 218 NW2d 667 (1974).
Each party argues that the two statutes can be construed to give full effect to both. The plaintiff argues the statutes are not inconsistent since they merely confer concurrent jurisdiction on the circuit courts and the Court of Claims. The defendant argues that the "all the courts” language of MCLA 390.555; MSA 15.1120(5) should be construed to mean all courts with proper subject matter jurisdiction.
We agree with the defendant and reverse the trial court’s denial of defendant’s motion for accelerated judgment. For a number of reasons we conclude MCLA 390.555; MSA 15.1120(5) merely empowers a university board of control to sue or be sued in any court with appropriate subject matter jurisdiction. Since the Court of Claims has exclusive subject matter jurisdiction over a money damage claim against a state instrumentality, the circuit court is not a court with proper subject matter jurisdiction over plaintiff’s claim.
We begin with an examination of the statutory purpose of MCLA 390.555; MSA 15.1120(5). In general, the statutory framework governing state colleges and universities is found in Chapter 390 of Michigan Compiled Laws. As instrumentalities of the state, each college or university is created and granted powers and duties by specific statutory sections. Having been established at different times in the history of the state, each college and university is governed by separate sections with varied language and organization. Basic to most colleges and universities is a section which confers powers and duties for running the institution on a controlling board (whether called a board of trustees, board of regents, board of control or board of governors). Generally, in conferring powers and duties on the board, the Legislature has included the right to "sue and be sued”.
Defendant Northern Michigan University, as one of the four regional universities, is covered by MCLA 390.551 et seq.; MSA 15.1120(1) et seq. The object of the statutory sections dealing with the regional universities is set forth in the title:
"AN ACT to provide for the continuation of Central Michigan university, Eastern Michigan university, Northern Michigan university and Western Michigan university; and to provide for the organization, powers and duties of their boards of control; and to repeal certain acts and parts of acts.”
It is readily apparent that the purpose of the legislation is to provide for the continuation of the universities and to confer powers and duties on the respective boards of control. Within this statutory framework is MCLA 390.555; MSA 15.1120(5):
"A board of control is a body politic and corporate. It may purchase, have, hold, possess and enjoy to itself and its successors all the real and personal property of every kind now belonging to its respective institution or hereafter acquired by it and may grant, alien, invest, sell and dispose of the same; may sue and be sued, plead and be impleaded in all the courts in this state; and may have, alter and use a seal.”
Unlike the analagous statutes governing other colleges and universities, this provision adds "all the courts” language to the typical "sue and be sued” language. For the following reasons, the "all the courts” language cannot be read literally.
First, we must place MCLA 390.555; MSA 15.1120(5) within the context of the overall statutory scheme governing institutions of higher education and within the context of the title of the act governing regional universities. The clear thrust of the statute is to confer power on the boards to sue and be sued and not to confer power or jurisdiction on the courts of this state. Neither the location in the statutory scheme nor the title of the act gives the slightest clue that the Legislature intended this section to modify or expand the jurisdiction of Michigan courts.
Secondly, to allow Northern Michigan or any other regional university to be sued for damages in circuit court would carve out an irrational exception to the exclusive jurisdiction of the Court of Claims in a like suit against the University of Michigan, Michigan State University, Wayne State University or any other state college or university. See, Fox v Board of Regents of the University of Michigan, 375 Mich 238, 241; 134 NW2d 146 (1965), Glass v Dudley Paper Co, 365 Mich 227, 229-230; 112 NW2d 489 (1961), Kiluma v Wayne State University, 72 Mich App 446, 450; 250 NW2d 81 (1976). There is no justification whatever for allowing the regional universities to sue or be sued in circuit court when any other college or university is limited to the exclusive jurisdiction of the Court of Claims.
Thirdly, and perhaps most persuasively, the logical extension of plaintiff’s interpretation of the "all the courts” language would confer jurisdiction on probate courts or district courts. It cannot be seriously contended that plaintiff would be entitled to bring her $25,000 damage claim in a probate or district court. Courts construe statutes to avoid an absurd result. Dossin’s Food Products, Inc v State Tax Commission, 360 Mich 312, 315; 103 NW2d 474 (1960). Therefore, to avoid an absurd result, we construe the "all the courts” language to mean all the courts with proper subject matter jurisdiction.
To summarize, we conclude that MCLA 390.555; MSA 15.1120(5) governs the powers of boards of control, not the powers of state courts, and that the use of the "all the courts” language merely indicates a board of control may sue or be sued in all courts with jurisdiction over the subject matter of the lawsuit. Since plaintiff’s claim is for money damages against a state instrumentality, the Court of Claims has exclusive jurisdiction. MCLA 600.6419; MSA 27A.6419.
This construction gives full effect to both statutes and avoids the absurd result which would be reached if the "all the courts” language was construed literally.
The trial court’s denial of defendant’s motion for accelerated judgment is reversed. No costs, statutory construction being involved.
See e.g., MCLA 390.4; MSA 15.904; (University of Michigan), MCLA 390.391; MSA 15.1852(101), (Lake Superior State College), MCLA 390.641; MSA 15.1350(1), (Wayne State University), MCLA 390.711; MSA 15.1852(51), (Saginaw Valley State College), MCLA 390;841; MSA 15.1852(1), (Grand Valley State College).
See fn 1, supra. | [
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Per Curiam.
Plaintiff Balfour Peisner, a Detroit attorney, and his wife, Nora S. Peisner, filed suit against defendants Detroit Free Press and Louis Heldman, its reporter, on December 10, 1973, in connection with the newspaper’s publication of an article and an editorial concerning plaintiff Balfour Peisner’s representation of an indigent criminal defendant.
The article, which appeared in the November 20, 1973, edition of the Free Press, stated that Detroit Recorder’s Court Judge Patrick O’Brien had appointed Peisner, his longtime friend and former campaign manager, to handle the appeal of an indigent defendant’s conviction for manslaughter after a trial at which he had presided. Peisner’s appeal in that case, according, to the article, was his first criminal appeal and failed to raise the issue of the trial judge’s prejudicial misconduct. The article stated that the judge had called the defendant’s trial attorney a liar and questioned his competence and ethics in the presence of the jury. The article also reported that the defendant had struggled in vain to have Peisner removed as his appointed counsel on appeal and that Peisner had said that he failed to raise the issue of the judge’s conduct on appeal because he did not wish to "sling mud”.
On November 23, 1973, plaintiff Balfour Peisner wrote a letter to the editor of defendant Detroit Free Press demanding that the paper print a retraction of the article.
On December 1, 1973, defendant newspaper printed an editorial deploring the "buddy system” of justice whereby judges appoint their friends to handle the cases of indigent defendants. Detroit Recorder’s Court Judge Patrick O’Brien, said the editorial, had appointed Balfour Peisner, his former campaign manager, to handle the appeal of a defendant convicted before him at a trial which involved the possible misconduct of the judge. In handling the appeal, said the Free Press, Peisner failed to mention the fact that the judge had called the defendant’s previous attorney a liar.
Plaintiffs complaint alleged, inter alia, that the defense attorney had not been called a liar or his competence and ethics questioned in the jury’s presence and that the article was therefore untrue. It asserted that Balfour Peisner and Louis Heldman had a conversation regarding the controversy before publication of the article at which time Louis Heldman admitted that the only misconduct at the trial was that of the defense attorney and Balfour Peisner explained that misconduct by defense counsel was not grounds for appeal.
Defendants’ answer stated that Recorder’s Court Judge Patrick O’Brien’s remarks may or may not have been made in the jury’s presence but that during the trial the judge did attack defense counsel’s competence and ethics and that, therefore, the article’s accusation that Peisner had failed to raise the issue of judicial misconduct on appeal was true. The answer denied that defendant Held-man ever admitted that the misconduct at trial was wholly that of defense counsel and alleged that plaintiff Peisner had attempted to elicit such a response from Heldman and had explained his failure to raise the issue on appeal with the statement, "I didn’t want to sling mud”. The answer also denied that the article and editorial were published maliciously and alleged that both were true.
The answer raised affirmative defenses of constitutional privilege and qualified privilege on the grounds that the controversy was a matter of widespread public interest and also averred that plaintiffs had failed to allege facts from which malice could be inferred.
On June 14, 1977, after three and one-half years of discovery and disputes, defendants filed a motion for summary judgment on the grounds that the complaint failed to state a cause of action and there existed no genuine issue of any material fact. Specifically, the motion asserted that the matters reported in the article and editorial were true and that, in any event, their publication was privileged, plaintiffs having failed to allege sufficient facts to create a question of malice.
By his affidavit, submitted in support of the motion, Louis Heldman swore that he was told by counsel for the defendant, whose conviction plaintiff Peisner was appointed to appeal, that Recorder’s Court Judge Patrick O’Brien had called him a liar in the presence and the absence of the jury and that the judge admitted calling defense counsel a liar several times on the record at the trial. Heldman further swore that he knew of no untruth or inaccuracy in the story which he prepared and that he bore plaintiff Peisner no ill will or malice.
In another affidavit, the managing editor of the Free Press swore that the article and editorial were printed as a matter of public interest in the administration of justice, were based on the knowledge and information available to the defendants at the time of publication, were believed to be true and were not motivated by any animosity toward plaintiff.
Plaintiffs’ answer to defendants’ motion for summary judgment asserted that the allegations contained in plaintiffs’ complaint that Louis Heldman had admitted to Peisner that defense counsel and not the judge had been at fault and that Peis.ner’s letter of November 23, 1973, placed defendants on notice that the article was untrue were sufficient to create a substantial question of fact concerning the existence of malice.
In an affidavit supporting plaintiffs’ answer, Balfour Peisner swore that nowhere in the transcript was defense counsel called a liar in the jury’s presence and that Louis Heldman admitted that defense counsel and not the trial judge had been guilty of misconduct. Peisner further stated that defendants took no precautions to verify the article before publication.
The trial judge granted defendants’ motion for summary judgment on June 30, 1977, holding that the publications in the instant case were qualifiedly privileged since the prior lawsuit was a matter of "public interest”, that plaintiff Balfour Peisner was a "public figure” at the center of a public controversy and that plaintiffs had made no showing of affirmative facts which would indicate that defendants acted with actual malice.
I.
Defendants contend that plaintiff is a "public figure” within the meaning of Gertz v Robert Welch, Inc, 418 US 323; 94 S Ct 2997; 41 L Ed 2d 789 (1974). In Gertz, the U. S. Supreme Court held that liability for defamation may not be imposed upon a newspaper or broadcaster without "actual malice” if the plaintiff is a public official or public figure. The stated reason for this distinction was that:
"Public officials and public figures usually enjoy significantly greater access to the channels of effective communication and hence have a more realistic opportunity to counteract false statements than private individuals normally enjoy. Private individuals are therefore more vulnerable to injury, and the state interest in protecting them is correspondingly greater.” 418 US at 344 (footnote omitted).
In this context, the Court described "public figures”:
"For the most part those who attain this status have assumed roles of especial prominence in the affairs of society. Some occupy positions of such persuasive power and influence that they are deemed public figures for all purposes. More commonly, those classed as public figures have thrust themselves to the forefront of particular public controversies in order to influence the resolution of the issues involved. In either event, they invite attention and comment.” 418 US at 345.
Specifically, the Court addressed whether Gertz could be classified as a public figure:
"Petitioner has long been active in community and professional affairs. He has served as an officer of local civic groups and of various professional organizations, and he has published several books and articles on legal subjects. Although petitioner was consequently well known in some circles, he had achieved no general fame or notoriety in the community. None of the prospective jurors called at the trial had ever heard of petitioner prior to this litigation, and respondent offered no proof that this response was atypical of the local population. We would not lightly assume that a citizen’s participation in community and professional affairs rendered him a public figure for all purposes. Absent clear evidence of general fame or notoriety in the community, and pervasive involvement in the affairs of society, an individual should not be deemed a public personality for all aspects of his life. It is preferable to reduce the public-figure question to a more meaningful context by looking to the nature and extent of an individual’s participation in the particular controversy giving rise to the defamation.
"In this context it is plain that petitioner was not a public figure. He played a minimal role at the coroner’s inquest, and his participation related solely to his representation of a private client. He took no part in the criminal prosecution of Officer Nuccio. Moreover, he never discussed either the criminal or civil litigation with the press and was never quoted as having done so. He plainly did not thrust himself into the vortex of this public issue, nor did he engage the public’s attention in an attempt to influence its outcome. We are persuaded that the trial court did not err in refusing to characterize petitioner as a public figure for the purpose of this litigation.” 418 US at 351-352.
Plaintiff in the case at bar is in a situation similar to Gertz. He is a well-known attorney, although certainly not a celebrity. He has not sought out publicity. Rather, the trial court’s sole basis for holding that he was a public figure was the fact that he was appointed to handle a criminal appeal. This is an insufficient basis for holding plaintiff to be a "public figure”. See, also, Time, Inc v Firestone, 424 US 448; 96 S Ct 958; 47 L Ed 2d 154 (1976); Anno., 20 ALR3d 988.
II.
We affirm the trial court’s holding that defendant had a qualified privilege to publish the articles in question. Gertz v Robert Welch, Inc, supra, held that:
"[S]o long as they do not impose liability without fault, the States may define for themselves the appropriate standard of liability for a publisher or broadcaster of defamatory falsehood injurious to a private individual.” 418 US at 347 (footnote omitted).
We have discovered no post-Gertz cases defining the standard under which private plaintiffs may recover damages for libel in Michigan. We therefore turn to earlier decisions of Michigan courts.
For many years, Michigan courts have attempted to balance the respective rights of private individuals and those with an interest or duty to publish information about private individuals under the rubric of qualified privilege. The first expression of the qualified privilege doctrine appears in Bacon v Michigan Central R Co, 66 Mich 166, 170; 33 NW 181 (1887):
"Qualified privilege exists in a much larger number of cases. It extends to all communications made bona fide upon any subject-matter in which the party communicating has an interest, or in reference to which he has a duty, to a person having a corresponding interest or duty. And the privilege embraces cases where the duty is not a legal one, but where it is of a moral or social character of imperfect obligation.”
This definition has been repeated and applied in more recent cases. See, eg., Bostetter v Kirsch Co, 319 Mich 547, 556-557; 30 NW2d 276 (1948); Timmis v Bennett, 352 Mich 355, 366; 89 NW2d 748 (1958); Lawrence v Fox, 357 Mich 134; 97 NW2d 719 (1959). Bufalino v Maxon Brothers, Inc, 368 Mich 140; 117 NW2d 150 (1962).
Qualified privilege of a newspaper to report on matters of public interest was held to exist in Lawrence v Fox, supra. Although that case involved an article charging a public official with fraud and corruption, it is clear that it was not limited to publications concerning public officials:
"This defense rests upon considerations of public policy. 'The great underlying principle upon which the doctrine of privileged communication stands,’ we held in Bacon v. Michigan Central R. Co., 66 Mich 166, 169, 170, 'is public policy. This is more especially the case with absolute privilege, where the interests and necessities of society require that the time and occasion of the publication or utterance, even though it be both false and malicious, shall protect the defamer from all liability to prosecution for the sake of the public good. It rests upon the same necessity that requires the individual to surrender his personal rights and to suffer loss for the benefit of the common welfare.’ The term privilege, then, having such origins, relates to a situation or occasion in which the importance of the criticism uttered by the defendant (for reasons to which we will in due course advert) justifies a modification, or, indeed, a withdrawal, of the protection normally afforded our citizens.
"The privilege thus afforded is not, however, as the mathematicians would put it, a constant. It varies with the situation, with what is regarded as the importance of the social issues at stake. At one extreme we have loose gossip, thoughtless or malevolent. Here the damage to the individual’s reputation is balanced only against the social desirability of the unbridled tongue, the frenetic lashings of the scorpion’s tail. Under the statutes of Edgar and Canute the tongue itself was forfeited. Modern law is more lenient. We class it simply as a case of 'no privilege’ and leave the parties to their proofs, .-it the other extreme are those occasions wherein the social interest involved in publication is so great as . to immunize even deliberately malicious attacks upon one’s character. Thus of judicial utterances, 'A communication absolutely privileged — as, for instance, words spoken by a judge in his judicial capacity in a court of justice — is not actionable, even though spoken maliciously.’ * * * So, also, of words spoken in the course of legislative debate.
"Considerations of social policy similar in principle, but of lesser intensity, result in a privilege not absolute but conditional, or, as sometimes put, qualified, or defeasible. These situations are of a great variety, all of them responding more or less directly to Baron Parke’s famous statement in Toogood v. Spyring (Ex 1834), 1 CM&R 181, 193 (149 Eng Rep 1044) that a publication is privileged when it is 'fairly made by a person in the discharge of some public or private duty, whether legal or moral, or in the conduct of his own affairs, in matters where his interest is concerned.’ These are the occasions in which one has not an absolute but a limited immunity to speak or publish words in and of themselves defamatory.” 357 Mich at 137-139 (footnotes and citations omitted).
Also relevant to the case at bar is Weeren v Evening News Association, 2 Mich App 74; 138 NW2d 526 (1965), rev’d on other grounds, 379 Mich 475; 152 NW2d 676 (1967). The Court of Appeals held in that case that the defendant broadcaster was qualifiedly privileged to televise a documentary film of public interest concerning a private plaintiff.
The question of whether a qualified privilege exists in a particular case is one of law to be decided by the trial court, based on the circumstances surrounding the publication. Lawrence v Fox, supra, at 139-140, Weeren v Evening News Association, supra, at 77. The trial judge in the case at bar held that the public’s interest in the administration of justice gave rise to a qualified privilege to report on events affecting a judicial proceeding. We find no error in this holding on the facts of this case.
III.
Where a qualified privilege exists, plaintiff, in order to recover, must affirmatively prove actual malice on the part of the defendant. Lawrence v Fox, supra; Weeren v Evening News Association, supra.
New York Times v Sullivan, 376 US 254, 280; 84 S Ct 710; 11 L Ed 2d 686; 95 ALR2d 1412 (1964), held that actual malice is established by proof that the defamatory statement was made "with knowledge that it was false or with reckless disregard of whether it was false or not”.
In reviewing a 117.2(3) summary judgment motion, the following principles apply:
"Motions for summary judgment under GCR 1963, 117.2(3) are not proper unless no genuine issue as to any material fact remains. In passing on the motion, benefit of every reasonable doubt must be given to the party opposing the motion. Summary judgment under this provision is designed to test whether factual support exists for the claim made. Affidavits, pleadings, depositions, admissions, and other documentary evidence must be considered by the court. Courts are liberal in finding that a genuine issue does exist, in order not to infringe upon a party’s right to trial of disputed factual issues. Rizzo v Kretschmer, 389 Mich 363, 370-374; 207 NW2d 316 (1973), Wynglass v Prudential Life Ins Co, 68 Mich App 514, 516; 242 NW2d 824 (1976), McLaughlin v Consumers Power Co, 52 Mich App 663, 666; 218 NW2d 122 (1974).
"On the other hand, we note that a party opposing the motion for summary judgment based on subrule 117.2(3) must come forward with some proof to establish the existence of a genuine issue of material fact. Durant v Stahlin, [375 Mich 628; 135 NW2d 392 (1965)], supra at 638-639, 655-656; Rizzo v Kretschmer, supra at 372.” Bob v Holmes, 78 Mich App 205, 211-212; 259 NW2d 427 (1977).
A 117.2(3) summary judgment motion tests the evidentiary sufficiency of the opposing party’s case. Therefore, while the opposing party is to be given the benefit of any reasonable doubt as to the existence of an issue of fact, his allegations of the existence of an issue of fact are not sufficient. The opposing party must provide facts supporting his allegations. Factual support may be supplied by affidavits, pleadings, depositions and other documentary evidence.
In the case at bar, plaintiff’s allegations that there exists an issue of fact as to malice are therefore insufficient. We must examine the facts plaintiff relies on to determine if an issue does exist. The pleadings and affidavit of plaintiff set forth the following alleged facts upon which plaintiff relies as raising an issue as to malice: 1) Heldman’s article stated that Recorder’s Court Judge Patrick O’Brien called defense counsel a liar in the presence of the jury, but the transcript showed that the incident occurred before the jury had been selected; 2) Heldman’s article stated that judicial misconduct was an issue which should have been raised on appeal, but Heldman had previously stated to plaintiff that any misconduct was on the part of defense counsel, not the trial judge; 3) the article quotes Peisner as stating that he did not raise the judicial misconduct issue on appeal because he didn’t want to "sling mud”, but that Peisner never made that statement; 4) defendant Detroit Free Press took no precautions to verify the facts as stated by Heldman; 5) the Free Press repeated its allegations in an editorial after Peisner had demanded a retraction and pointed out the alleged factual errors in the article.
(1), (4) and (5) are insufficient by themselves to raise an issue of malice. (1) is insufficient because it is irrelevant whether the statement was made in the presence of the jury or not; the real question is whether the reporter knew whether it was in the presence of the jury or not. (4) is insufficient because the newspaper’s failure to verify facts alone does not indicate malice. See, e.g., St Amant v Thompson, 390 US 727; 88 S Ct 1323; 20 L Ed 2d 262 (1968); New York Times v Sullivan, supra. (5) is insufficient because it is not alleged that any inaccurate statements were repeated in the editorial. In fact, the editorial avoids mention of any allegation that the judge called defense counsel a liar in the presence of the jury or that Peisner stated that he did not raise the misconduct issue on appeal because he didn’t want to "sling mud”.
However, (2) and (3) do raise an issue of fact as to malice. These allegations indicate that Heldman wrote the article criticizing plaintiffs failure to raise an issue on appeal knowing that judicial misconduct was not a meritorious issue. Of course, Heldman in his deposition denied the facts as alleged by plaintiff and we express no opinion on the credibility of the affiants. Plaintiff, however, has raised an issue of material fact and summary judgment under 117.2(3) was therefore improper.
Reversed and remanded for trial. No costs, a public question being involved.
The majority opinion was joined by three of the six justices participating. Three others concurred in result. Subsequent cases, however, have indicated approval of it. See Weeren v Evening News Association, 2 Mich App 74, 77; 138 NW2d 526 (1965), rev’d on other grounds, 379 Mich 475; 152 NW2d 676 (1967).
In Weeren, the plaintiffs action was based on the televising by defendant of a film entitled "A Bell for Okinawa”, which was based on a true story of how a leper colony in Okinawa obtained a bell free of charge from a company in West Berlin. Plaintiff claimed to be the general manager of the West Berlin company at the time. It is apparent that plaintiff was not a "public figure”, as defined in Gertz. | [
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Per Curiam.
Defendant appeals his conviction by a jury of second-degree murder. MCLA 750.317; MSA 28.549. Finding defendant’s claims of error unavailing, we affirm the conviction.
The record discloses that on the day before the death of defendant’s wife, she and defendant arrived at the residence of defendant’s mother, where they were to stay for the weekend. The following morning defendant’s mother heard a shot. She then heard voices followed by another shot. These events occurred while defendant and decedent were in defendant’s room, which was contiguous to that of his mother.
Defendant’s mother then called to him in an effort to ascertain what had occurred. She testified that defendant stated that he had shot his wife, to which she responded "why, why, why?”. On cross-examination by defense counsel, she stated that defendant gave no response to this latter inquiry.
The direct examination testimony by defendant contradicted that of his mother. According to defendant, he told his mother that he had accidentally shot his wife, and she responded "oh no, oh no”.
In his final closing argument, the prosecutor referred to defendant’s failure to respond to his mother’s inquiry. Defendant contends that this resulted in prejudice entitling him to a new trial. We disagree.
All testimony concerning defendant’s response or failure to respond to his mother’s inquiries was elicited by defense counsel. This is not a case of the genre where the prosecution has endeavored to produce evidence of defendant’s silence to prove guilt, as was condemned in People v Bobo, 390 Mich 355; 212 NW2d 190 (1973). To conclude otherwise would enable the defendant to infect the proceedings with prejudicial error so as to gain a new trial should the verdict be adverse.
The prosecution introduced the testimony of the 1 decedant’s sister. Among other things, she testified that earlier the defendant shot at her automobile. In a subsequent conversation the defendant told the sister that he saw, his wife in that automobile on the night of the occurrence, but denied firing a shot at the vehicle. Defendant maintains that this testimony constituted evidence of a separate crime and, therefore, its admission was reversibly erroneous.
Since the defense of accident was asserted by defendant, his intent was a material issue in the case. Both statute and case precedent support the admissibility of defendant’s prior acts when probative of intent, notwithstanding that they may constitute separate crimes. MCLA 768.27; MSA 28.1050, People v Chism, 390 Mich 104, 116-119; 211 NW2d 193, 198-200 (1973). Our conclusion is that the challenged testimony was relevant to defendant’s intent and, therefore, admissible within the foregoing guidelines.
Defendant also contends that certain witnesses called by the prosecution were erroneously permitted to testify as rebuttal witnesses. However, our review of the record discloses that the testimony of those witnesses was directed at refuting testimony by the defendant denying certain facts sought to be established in the prosecutor’s case in chief. Prior to that denial the challenged testimony would have been merely cumulative in showing that the defendant made threats to kill his wife and was jealous of another man with whom the decedent was friendly. Consequently, we conclude that the testimony in question was properly admitted as rebuttal within the rule of People v Bennett, 393 Mich 445, 449; 224 NW2d 840, 842 (1975).
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Beasley, P. J.
After preliminary examination before a recorder’s court judge acting as an examining magistrate, defendant was bound over for trial on the crime charged, namely, breaking and entering with intent to commit larceny.
Before a trial judge in recorder’s court, defendant sought review of the magistrate’s ruling by moving to quash the information. The motion specifically stated that it was challenging the action of the magistrate in binding defendant over for trial and it, therefore, requested that the review of the magistrate’s action should be based exclusively on the transcript of the preliminary examination. The motion was granted on the ground that there was no evidence to support an inference that this defendant "participated in or had anything to do with the claimed breaking and entering”.
The prosecutor seeks further review of the magistrate’s ruling by claiming an appeal as of right from the ruling. We disagree that the prosecutor is entitled to appeal as of right. However, we will treat the matter as being heard on leave granted.
The issue is, whether the magistrate abused his discretion in binding defendant over for trial. Unless he did, the motion to quash should have been denied.
The magistrate had before him two issues con cerning which he was obligated to exercise his discretion and to decide. First, was the crime of breaking and entering with intent to commit larceny committed? The proofs were undisputed that the complainant locked his garage at night and then found it broken into with his bicycle missing. There was no error in finding the crime charged had been committed. Second, was there probable cause to believe defendant was guilty of breaking and entering with intent to commit larceny? Probable cause does not mean proof beyond a reasonable doubt. Neither does it mean evidence to support a guilty verdict nor even enough evidence to defeat a motion for directed verdict at the conclusion of the prosecution’s case. There need only be some evidence to satisfy the magistrate that there is probable cause to believe the defendant committed the crime. It was not the province of the trial judge acting in an appellate capacity to substitute his judgment for that of the examining magistrate with respect to the binding-over.
We have carefully reviewed the transcript and do not find any abuse of discretion by the magistrate. The evidence indicates that, while responding to a report of a breaking and entering of a garage in progress, the police officers arrived at the address in less than 60 seconds and saw defendant and his codefendant pushing a mini-bike down the center of the residential street at 3:30 in the morning. As the police officers approached them, they moved from the center of the street onto a grassy section between the street and the curb, leaned the mini-bike against a tree and then walked away. When the police stopped the suspects, defendants did not deny possession of the bicycle, but claimed that it belonged to an unidentified friend. In fact, the bike belonged to the complainant and had been taken from his garage, which was only a short distance away.
From this evidence, the magistrate could infer that there was probable cause to believe defendants had broken and entered the complainant’s garage with intent to commit larceny. Whether it will result in a guilty verdict after trial is another question. There was no abuse of discretion in binding defendant over for trial.
The granting of the motion to quash is reversed and this cause is remanded for trial on the merits.
See, People v McCoy, 75 Mich App 164; 254 NW2d 829 (1977), and cases cited therein.
People v Asta, 337 Mich 590; 60 NW2d 472 (1953).
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Per Curiam.
The defendant was convicted in a jury trial of obtaining over $100 by false pretenses. MCLA 750.218; MSA 28.415. At issue is whether it was error for the trial court to refuse to give a requested cautionary instruction to the jury concerning accomplice testimony. People v McCoy, 392 Mich 231; 220 NW2d 456 (1974).
The prosecutor gave immunity to witness Francis L. Wisniewski in return for his testimony at trial. Wisniewski confessed to being part of a scheme to defraud an insurance company after his motorboat had been damaged. Wisniewski was an accomplice because of his deep involvement in the fraudulent transaction. In People v Threlkeld, 47 Mich App 691, 696; 209 NW2d 852 (1973), we said:
" * * * a person is an 'accomplice’ if he could be charged with the same offense as the accused is charged.” (Emphasis added.)
Further, we find that while the defense’s request for the McCoy instruction was oral and not written, it was nevertheless made. We distinguish the instant case from People v Wynn, 386 Mich 627; 194 NW2d 354 (1972), because here, as in People v Herbert Van Smith, Jr, 388 Mich 457, 460; 203 NW2d 94 (1972), there was an oral request to charge. Statute and court rule, GCR 1963, 516.1 and MCLA 768.29; MSA 28.1052 do not prescribe the time at which a request must be made. Neither statute nor court rule forecloses oral requests nor limits the time for making them.
Where, as here, the trial judge specifically instructed the jury on the credibility of the defendant, the court owes the defendant a balanced, fair instruction on accomplice testimony. McCoy, supra.
We have carefully considered the remaining issues on appeal, but due to our disposition of this case, we need not discuss them here.
Reversed, remanded for a new trial. | [
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Per Curiam.
On March 22, 1975, Russell Curl was a passenger on a motorcycle owned and operated by Ronald Priebe, Jr. Priebe’s motorcycle was struck from the rear by an automobile owned and operated by Glyndon McDaniel, an uninsured motorist. As a result of the accident, Russell Curl was killed.
On the date of the collision, Curl resided with his parents who were insured by the plaintiff under two separate policies of automobile insurance, both of which provided uninsured motorist coverage. Additionally, the plaintiff issued a policy of insurance providing uninsured motorist coverage to Craig Cummins, a relative of Curl residing in the home of Curl and his parents. All three policies of insurance were identical and each provided $20,000/$40,000 uninsured motorist coverage.
On August 17, 1976, plaintiff filed a suit seeking declaratory relief on the question of whether the uninsured motorist coverage of the three policies of insurance could be stacked so as to allow $60,-000/$120,000 uninsured motorist coverage. Plaintiff argued in the negative. In response to this suit, defendant moved for summary judgment claiming that as a matter of law stacking of uninsured motorist benefits is proper. On January 25, 1977, the circuit court denied defendant’s motion and ruled that stacking could not be allowed. Defendant appeals.
We first concern ourselves with the question of whether the Cummins’ policy could be stacked, were we to allow stacking, as a general rule. We hold it can not. Defendant makes no argument which convinces us that it is somehow "proper as a matter of law” to subject plaintiff-insurer to potentially unlimited liability as to Cummins’ policy under these circumstances. Furthermore, the rationale supporting the disposition of the other policies is inapposite to Cummins.
On the other hand, the policies owned by decedent’s parents may be stacked for the reasons stated in the dissenting opinion in Kozak v Detroit Automobile Inter-Insurance Exchange, 79 Mich App 777; 262 NW2d 904 (1977). Therefore, we reverse the circuit court’s determination as to those two policies and remand for proceedings consistent with this opinion.
Affirmed in part; reversed in part. No costs, neither side having prevailed in full. | [
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D. F. Walsh, J.
Defendant appeals from an order of filiation and support entered after a non-jury trial in a paternity action brought pursuant to MCLA 722.711 et seq.; MSA 25.491 et seq. He raises four issues:
I. In a paternity action can defendant’s right to trial by jury be waived by failure to demand it?
II. Did the presence in the court file of defendant’s application for blood tests render the trial judge unfit to sit as the trier of facts?
III. Was defendant denied a fair trial because of the trial judge’s partiality to the plaintiff?
IV. May the defendant challenge the verdict on the ground that he was denied effective assistance of counsel?
Defendant made no request for a jury trial. Under the procedural rules applicable to paternity actions, failure to demand a trial by jury constitutes a waiver thereof. Defendant argues, however, that the statute, MCLA 722.715; MSA 25.495, and the court rule, GCR 1963, 730.2, which contain these procedural waiver rules are constitutionally defective. Defendant’s premise is that a paternity action is criminal in nature and that the jury waiver provisions applicable to criminal cases should control. We disagree.
A proceeding under the paternity act has both civil and criminal characteristics. Artibee v Cheboygan Circuit Judge, 397 Mich 54; 243 NW2d 248 (1976) (Coleman, J., dissenting), People v Stoeckl, 347 Mich 1; 78 NW2d 640 (1956), Houfek v Shafer, 7 Mich App 161, 167, n 5; 151 NW2d 385 (1967). Whether a particular criminal or civil procedural rule is applicable to a given aspect of a paternity case must be determined as the issue is presented to the courts.
In Artibee v Cheboygan Circuit Judge, supra, the Supreme Court held that an indigent defendant in a paternity action, like an indigent defend ant in a criminal action, had a right to assigned counsel at government expense. In Romain v Peters, 9 Mich App 60; 155 NW2d 700 (1967), however, this Court held that with respect to the right to a trial by jury, a paternity action followed civil procedure and the verdict of 10 of 12 jurors (now 5 of 6 jurors) was sufficient.
We think Romain is controlling here. However, since defendant argues that the statute and court rule on which the decision in Romain was premised are unconstitutional, a more probing analysis is required.
The purpose of the paternity act is not to impose punishment upon a defendant for anti-social conduct but rather to determine the existence and extent of a defendant’s obligation to support a particular child. Thus, the immediate consequence of a judgment adverse to a defendant is not imprisonment or fine but merely an order defining the extent of the defendant’s support obligation.
Likewise, the gravity of the necessary consequences of an order of filiation is not as severe as those engendered by a criminal conviction. The latter always results in the stigma of criminality attaching to a defendant. Furthermore, any sanctions imposed are unavoidable by any subsequent conduct by the convicted defendant. In contrast, a paternity action merely defines a legal relationship involving the obligation of support. Artibee v Cheboygan Circuit Judge, supra. Only subsequent culpable action by the defendant can result in sanctions being applied for refusal to comply with the court’s judgment and in that regard the order of filiation and support does not differ from a civil judgment.
The fact that a county prosecutor frequently advocates the plaintiffs case does not in itself require that the jury waiver provisions applicable to criminal trials obtain in paternity actions. The critical comparison concerns the consequences of the respective proceedings for it is between the government’s imposition of those consequences and the defendant that the jury is interposed in criminal cases. See, e.g. Duncan v Louisiana, 391 US 145; 88 S Ct 1444; 20 L Ed 2d 491 (1968). Thus it is the impact of an adverse judgment upon the defendant that determines the necessity for absolute prevention of an inadvertent waiver of a jury trial. That impact is not affected by the involvement of a government prosecutor.
Accordingly, we hold that the consequences of a paternity action do not sufficiently approximate the effects of a criminal conviction as to warrant imposing upon such actions the jury waiver requirements applicable to criminal trials.
Defendant’s second claim is that the trial court’s decision might have been influenced by its access to the results of a blood test taken at defendant’s request pursuant to MCLA 722.716(a); MSA 25.496(a). Although the results of that test were not introduced at trial, defendant argues that their very presence in the court file rendered the trial court incapable of objective fact-finding.
Defendant cites no authority for that argument and we decline to rule that the mere presence of inadmissible evidence in a court file automatically precludes a trial court from sitting without a jury. In the cases relied upon by the defendant, the trial court actually considered inadmissible evidence in reaching its decision. Compare People v Frazier Walker, 24 Mich App 360; 180 NW2d 193 (1970), affirmed, 385 Mich 596; 189 NW2d 41 (1971), with People v Dudley, 44 Mich App 9; 204 NW2d 743 (1972), reversed, 393 Mich 762; 223 NW2d 297 (1974). In the instant case, because there is no indication that the trial court considered the blood test results in deciding the issue of defendant’s paternity, we find no error. People v Grable, 57 Mich App 184; 225 NW2d 724 (1974).
Defendant’s third contention is that the trial court’s conduct indicated such partiality to the plaintiff as to have precluded a fair trial. Specifically, defendant points to the court’s comments following the plaintiff’s testimony:
"THE COURT: * * * I have heard some very positive testimony here. I think, Mr. McLay, you ought to have at least a conference with your client before we take further testimony. Thank you.
"MR. McLAY: Very well, your Honor.
"THE COURT: All right. All I am going to say, I see this many times. If this is your dughter (sic) and you have renounced her, it is you that will pay the price in the end, even if I rule in your favor. You should think about that. Mr. McLay is able to advise you. Thank you.”
Shortly thereafter the trial court heard the defendant’s testimony out of order.
We find no error in these comments. They did not indicate that the court had already decided the case prior to hearing the defendant’s testimony. Rather they expressed the court’s evaluation of plaintiff’s testimony for the guidance of defendant before he gave testimony which may have had a lasting effect on a sensitive human relationship.
Defendant’s final argument is that he was denied effective assistance of counsel and, therefore, is entitled to a new trial. He correctly asserts that the right to counsel guaranteed by Artibee, supra, implies the right to effective assistance of counsel. See, e.g., Powell v Alabama, 287 US 45; 53 S Ct 55; 77 L Ed 158 (1932). It does not follow from this, however, that the remedy for ineffective assistance in criminal cases should apply to paternity actions.
There are pertinent distinctions between a criminal action and a paternity proceeding that obviate the necessity for vacating an order of filiation granted because of a serious mistake made by defense counsel. First, as discussed above, the consequences of such an order are not so severe as to mandate reversal in the interests of the integrity of the judicial system. Second, insofar as the consequences of a filiation and support order are monetary, an action for malpractice provides an adequate remedy for incompetent representation; whereas, such an action obviously would be ineffectual to compensate a wrongfully convicted criminal defendant.
Given the absence of any systemic or practical necessity for affording the requested remedy, we hold that a defendant in a paternity action may not challenge the verdict on the ground that he was denied effective assistance of counsel.
The trial court is affirmed. No costs, a public question.
MCLA 763.3; MSA 28.856 provides:
"Sec. 3. In all criminal cases arising in the courts of this state whether cognizable by justices of the peace or otherwise, the defendant shall have the right to waive a determination of the facts by a jury and may, if he so elect, be tried before the court without a jury. Except in cases cognizable by a justice of the peace, such waiver and election by a defendant shall be in writing signed by the defendant and filed in such cause and made a part of the record thereof. It shall be entitled in the court and cause and in substance as follows: T, -, defendant in the above cause, hereby voluntarily waive and relinquish my right to a trial by jury and elect to be tried by a judge of the court in which said cause may be pending. I fully understand that under the laws of this state I have a constitutional right to a trial by jury.’
Signature of defendant.
Such waiver of trial by jury must be made in open court after the said defendant has been arraigned and has had opportunity to consult with counsel.”
MCLA 722.715; MSA 25.495 and GCR 1963, 730.2.
MCLA 722.723; MSA 25.503.
Criminal proceedings involve a number of unique safeguards designed to insure, as far as possible, the accuracy of a guilty verdict: for example, the requirement of proof beyond a reasonable doubt, the presumption of innocence, the res gestae witness rule, and the requirement of an unanimous verdict. That these safeguards apply only to criminal cases attests to the extremely high degree of importance attached to the factual integrity of criminal convictions. Given the gravity of the consequences and the corresponding concern that only the truly guilty should suffer them, affirming a criminal conviction caused by a serious mistake by defense counsel would be utterly unacceptable in our system of criminal jurisprudence. | [
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V. J. Brennan, J.
This case arose from the August 18, 1972, discharge from employment of plaintiff Bruno Masters after 22 years of service with defendant Highland Park General Hospital Maintenance Department. The reason for the discharge was alleged non-compliance with the city’s residence requirements. The discharge was upheld by the Highland Park Civil Service Commission, and that decision was upheld by Wayne County Circuit Court Judge Thomas Roumell in a November 26, 1975, opinion. Judge Roumell also denied plaintiffs motion for a new trial or rehearing. Plaintiff appeals as of right. GCR 1963, 806.1.
Following his discharge, plaintiff sought a hearing before the civil service board. He was granted a hearing September 11, 1972. Further testimony was taken November 20, 1972, at which time the board voted to uphold plaintiff’s discharge. Plaintiff was represented by counsel. Plaintiff then brought suit in circuit court seeking a review of the board’s decision.
Wayne County Circuit Court Judge George Martin subsequently ordered a rehearing of the earlier meetings so that proceedings could be recorded and the court would have an adequate basis for review.
The board met April 9, 1973, for the rehearing. Over objections of plaintiff’s counsel, the board read the old notes into the record. Then the board prepared to receive new evidence. Plaintiff’s counsel requested an adjournment and left the meeting.
Plaintiff was then asked if he wished to continue without an attorney. He replied, "No”, and left the hearing room. The board, despite the absence of plaintiff and plaintiff’s counsel, proceeded to consider new evidence not presented at the earlier hearings.
The additional evidence included the testimony of a private investigator, Dissette, who reported that his surveillance indicated plaintiff lived in Troy, Michigan, and not Highland Park. However, this surveillance took place in November and December, 1972, and January, 1973, after plaintiff had been discharged.
Carol Masters, former daughter-in-law of plaintiff, testified from excerpts of a child custody hearing in which plaintiff’s son said that he often stayed with his parents at their home in Troy and occasionally stayed at a Highland Park apartment building owned by his father. She also referred to testimony of Patricia Makled, a resident of the apartment building owned by plaintiff in Highland Park, which indicated that Mrs. Makled did not know if plaintiff lived there.
The board reaffirmed plaintiff’s discharge, and the matter was then returned to circuit court, where a rehearing was denied. The case was argued before Judge Roumell, who affirmed the decision of the civil service board and dismissed plaintiff’s complaint.
On appeal, plaintiff brings several allegations of error. We need address only one of them.
Plaintiff contends that the decision of the defendant civil service board was not supported by competent, material and substantial evidence.
Plaintiff was discharged for violating Highland Park residency requirements. The provision he was accused of violating states:
"Sec. 7-20 Residence of city employees. — All employees of the city shall be and remain residents of the city or shall become residents of the city within 6 months following the completion of their probationary period. When suitable applicants cannot be obtained after reasonable and serious recruitment efforts of unclassified personnel in the city hospital, the residency rule may be waived. It shall be the duty and responsibility of the board of directors of the hospital to continuously strive to encourage un-classified non-residents to live within the corporate limits of the city. Residents shall always be accorded preference in city employment and advancement policies. Any elected or appointed official of the city who violates this section shall be subject to immediate dismissal and subject to any fine or imprisonment for charter violation as prescribed by law. When the status of the work on [of] an employee is at a place which is outside the territorial limits of the city and the nature of his work is such that he is required to and does live on city property at the place of his work, and when such fact is certified to the civil service board by the department or agency by which he is employed, the provisions of this section shall be waived as to such employee.”
Three hearings were held on plaintiffs dismissal before the Highland Park Civil Service Board. Each time plaintiffs discharge was upheld. Plaintiff contends that the decision of the civil service board was not supported by competent, material and substantial evidence on the whole record. We agree.
The Michigan Supreme Court noted the following scope of review for administrative decisions in Regents of the University of Michigan v Employment Relations Commission, 389 Mich 96, 101; 204 NW2d 218 (1973):
"The proper scope of review of an opinion of an administrative agency is controlled both by constitution and statutory provision. Article 6, § 28 of the 1963 Constitution provides:
" '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; and, in cases in which a hearing is required, whether the same are supported by competent, material and substantial evidence on the whole record.’ ”
What the Supreme Court means by "competent, material and substantial evidence on the whole record” was determined in Michigan Employment Relations Commission v Detroit Symphony Orchestra, Inc, 393 Mich 116, 124; 223 NW2d 283 (1974):
"The cross-fire of debate at the Constitutional Convention imports meaning to the 'substantial evidence’ standard in Michigan jurisprudence. What the drafters of the Constitution intended was a thorough judicial review of administrative decision, a review which considers the whole record — that is, both sides of the record — not just those portions of the record supporting the findings of the administrative agency. Although such a review does not attain the status of de novo review, it necessarily entails a degree of qualitative and quantitative evaluation of evidence considered by an agency.”
The provision of the Highland Park city charter which the plaintiff was accused of violating dictates that all employees of the city shall be and remain residents of the city. However, nothing appears definitively in the record to indicate the meaning of "residence” within the contemplation of the charter provision.
This situation is in contrast to Detroit Ordinance 327-G, § 1; § 2-1-1.2, part of the Detroit employees’ residency provision, which states:
"Residence shall be construed to be the actual domicile of the individual where he normally eats and sleeps and maintains his normal personal and household effects.” (Emphasis added.)
Thus, Detroit has by statute made the terms "residence” and "domicile” synonymous. What meaning was intended by the Highland Park city charter is difficult to determine, though when asked what constituted residency, the board’s secretary stated that one court had "determined that it is where a person lives with his family”.
We recognize that proceedings before the civil service board are adversary in nature, with the employer cast in the role of plaintiff seeking the discharge of defendant-employee. Therefore, plaintiff-employer initially carries the burden of proof to establish a prima facie case of violation by defendant-employee. As defined by the Supreme Court, the violation must be established by competent, material and substantial evidence.
Vagueness of the Highland Park charter provision leaves us uncertain as to exactly what the city was required to prove in the present case. Much depends upon the definition given to "residence”.
The residency standard suggested by the board’s secretary in the instant case was rejected in Grable v Detroit, 48 Mich App 368, 372-373; 210 NW2d 379 (1973). In that case, the circuit court had held that a fire fighter is not effectively a resident of the city when his family lives elsewhere. This Court reversed, stating:
"Although we agree that the residence of one’s family is relevant to the determination of one’s residence, it is not the sole determining factor. It is not impossible for a married man to establish residence apart from that of his family. This Court cited with approval in In re Fox Estate, 3 Mich App 501, 509; 142 NW2d 866, 870 (1966), the following language:
"' "Domicile is so essentially a question of intent, depending on the facts and circumstances of each particular case, that precedents, with necessarily varying facts, are of slight assistance; a fact of controlling importance in one case may have but slight significance in relation to all the facts of another, the determination of the place of domicile depending on the circumstances of each case. Proof of domicile, therefore, does not depend on any particular fact, but on whether all the facts and circumstances taken together tend to establish it; and all acts indicative of purpose must be carefully scrutinized.” 28 CJS, Domicile, § 18, p 41. (Footnotes omitted.)’
"We reiterate: the determination of domicile or resi dence is essentially a question of intent which is to be decided after careful consideration of relevant facts and circumstances. This determination was not made in the case at bar. It was error for both the Civil Service Commission and the circuit court to rely solely on the residence of plaintiffs family in determining plaintiffs residence.”
What standard are we then to apply to this case? Residence has been defined as a factual place of abode or living in a particular place:
"Residence means the place where one resides; an abode, a dwelling or habitation; especially, a settled or permanent home or domicile. Residence is made up of fact and intention.” Reaume & Silloway, Inc v Tatzlaff, 315 Mich 95, 99; 23 NW2d 219 (1946), citing Wright v Genesee Circuit Judge, 117 Mich 244, 245; 75 NW 465 (1898). See also Loeser v Jorgenson, 137 Mich 220, 223; 100 NW 450 (1904), Beecher v Common Council of Detroit, 114 Mich 228, 229-230; 72 NW 206 (1897).
What was the evidence on which the board relied in approving the dismissal of plaintiff, and on which the trial court relied in affirming the action of the board?
We would note immediately that testimony of investigator Dissette appeared concerning surveillance of plaintiff during November and December of 1972, and January of 1973. The problem is that this evidence is not material to the August 18, 1972, discharge of plaintiff. The city cannot rely on plaintiffs non-residency following his discharge to justify that discharge on the basis of prior alleged non-residency.
However, proper evidence at the first hearing indicated that plaintiff was listed as the owner of the Troy property. Yet, plaintiff was as well the owner of the Highland Park apartment building where he claimed to reside. Proof of plaintiffs ownership of the Troy property does not alone present substantial evidence that he "resided” in Troy.
On the other hand, plaintiff himself testified at this first hearing that he lived at 24 Stevens in Highland Park. He said he owned a home in Troy, but was separated from his wife and she was living in the Troy home. Plaintiff presented telephone and electric bills for the Stevens address which were in his name. He also stated that he paid Highland Park taxes at the resident rate and that county taxes are in his name for the 24 Stevens property. Contrary to testimony by witness Carol Masters, his former daughter-in-law who was engaged in a bitter divorce proceeding with plaintiffs son and whose testimony is at best suspect, plaintiff denied that he ever told an Oakland County court that he lived in Troy.
Plaintiff’s wife testified the couple had bought the Troy home as an investment. She testified to moving there on her doctor’s advise, but stated that her husband remained in Highland Park because of his job. She said plaintiff lived at 24 Stevens, Highland Park, and had not lived with her for 2-1/2 years.
At the second hearing, Michael Masters testified that the allegations concerning plaintiffs residence in Troy were made in Oakland County court by his former wife Carol. Contrary to her claim, Masters stated his father, under oath, had given his address in that proceeding as 24 Stevens, Highland Park. Witness Bob Boltz also testified at this hearing that to the best of his knowledge plaintiff lived at 24 Stevens and said he had called him from work many times at that address. Pat Makled, a resident of 26 Stevens, stated that she rents her apartment from plaintiff. She said that plaintiff lives in the building and has been there at various times. She stated she had seen him leaving for work and coming home.
Further evidence provided by plaintiff at this second hearing indicated that he shopped in Highland Park, paid income taxes there, voted there and obtained his driver’s license there. He also testified that the detective’s statement in the first hearing that no one at 24 Stevens knew him was false. Elizabeth Sheridan also testified that plaintiff lived at 24 Stevens and said she had seen him there many times.
In the face of such favorable testimony, we do not believe "competent, material and substantial evidence on the whole record” appears to sustain the board’s decision against plaintiff. We believe the board erred in its decision and that the circuit court erred in affirming the board’s decision. The fact that he has worked 22 years for the city and is no doubt approaching retirement eligibility we feel mandates overwhelming proof on "non-residency” and this record is far from that. However, even by normal legal standards defendant has not produced substantial evidence of plaintiff’s violation of residency requirements. Therefore, upon our careful review of the findings below, we hold that they must be reversed and that plaintiff be reinstated with accrued back wages. Costs are to be paid by defendant.
J. R. McDonald, J., concurred. | [
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After Remand
N. J. Kaufman, J.
In April, 1976, this Court remanded this case for supplementation of the record regarding the trial court’s reasoning for accepting defendant’s plea of nolo contendere, People v Christian, 68 Mich App 480; 242 NW2d 813 (1976). Subsequently, on application for leave to appeal, the Supreme Court amended the order in lieu of leave to appeal, People v Christian, 397 Mich 854 (1976). The Supreme Court additionally ordered the trial court to determine whether there existed a plea bargain, and if there had been, whether the terms were violated. The trial court complied and we review both issues.
In our original opinion, this Court stated:
"Defendant’s second claim of error is that the trial court failed to comply with GCR 1963, 785.7(3)(d) by not stating his reasons for accepting the plea of nolo contendere. Rule 785.7(3)(d) provides in relevant part: " 'the court may not accept a plea of nolo contendere * * * unless the judge first states reasons for believing that the interests of the defendant and the proper administration of justice do not require interrogation of the defendant regarding his participation in the crime.’ In the instant case, the only indication of an attempt to state such reasons was a colloquy between the court and prosecutor:
" 'The Court: All right. And I take it due to the fact situation involved here there is some good reason why the Defendant should be allowed to plead nolo contendere as opposed to a plea of guilty, is that correct?
" 'Mr. Foley: Yes, there is, your Honor. Would the Court want me to make a statement on the record?
" 'The Court: No, as long as there is some good reason that the People are aware of.’
"This is not sufficient. We accordingly remand this case to the trial court for the judge to supplement the record by stating his reasons for accepting the plea of nolo contendere. Guilty Plea Cases, 395 Mich 96, 134; 235 NW2d 132 (1975).” 68 Mich App at 486-487.
On remand, the trial court adequately stated its reasons for accepting the plea. It is therefore unnecessary to vacate the plea.
As to the plea bargain issue, this Court noted that no bargain appeared on the face of the record. However, this Court has also noted that "[w]here some evidence of a bargain appears on the face of the transcript,” 68 Mich App at 483, a remand is generally necessary. Finding some evidence, this Court was prepared to remand. This Court did not, though, explaining:
"Defendant here, however, waived his chance to have a statement by the prosecutor put on the record. After the above discussion, the trial court recessed the proceedings in an attempt to obtain the presence of the assistant prosecuting attorney who had allegedly made the promise. Rather than waiting for him, defendant returned from the recess and chose to accept the sentence rather than withdraw his plea. We read this action as an express choice to waive any attempt to prove a bargain and to accept one of the alternate actions offered by the trial court.” (Footnote omitted.) 68 Mich App at 485-486.
We interpret the Supreme Court’s order (commanding the trial court to also make a record on this issue) as an indication that we are to treat the plea bargain issue on the merits. Accordingly, we again examine the remand transcript. Upon a full examination of the remand transcript, we find that no evidence of an unfulfilled plea bargain exists.
Accordingly, we uphold the plea.
Affirmed.
L. D. McGregor, J., not participating.
"THE COURT: Now there was a previous hearing in this Court at which time I heard the original motion argued by Mr. Ziemba and Mr. Healy for the granting of a new trial, and the grounds pursued at that time by Mr. Ziemba were the same grounds that are before the Court now, and I did point out that page 14 of the exam transcript indicated that while Browning, Till, Champion and Christian had all driven together and gone to the home of the robbery, Page 14 of the examination indicates that Sherman stayed outside to watch out according to the witness Champion’s testimony, and that while the write-up indicated and the plea indicated that Mr. Sherman Christian went to that location by acting in concert and aiding and abetting others, and knowing that an armed robbery would be committed, that he was outside at the time the murder occurred, he was outside at the time the rape occurred, and he was outside at the time the robbery occurred doing his part which was to be a watchout.
"Now I find it a little incredible that under those circumstances this has come back, because if that is not a good situation for a nolo plea, I don’t know what is, because Mr. Christian cannot give any direct testimony himself as to what happened inside the house inasmuch as he wasn’t present and while he admits his guilt he frankly would be unable to make a record as to what had occurred inside. The only thing he could testify to was having gone there, having fulfilled his part of this as a lookout which would make him a principle [sic] of course in Michigan Law, and subsequently leaving with Champion and Browning and Till.”
"THE COURT: Now if the Court’s recitation of the agreement that had been made between Mr. Rubach, Detective Hill and the Court is correct, then Mr. Rubach had determined to plead his client guilty to murder in the second degree which is not a probationary offense, it requires that the Court impose a term of years on the minimum, and it carries a maximum penalty of any term of years up to and including life imprisonment. And, frankly, it strikes me that Mr. Christian got a substantially better bargain when he plead guilty to robbery unarmed in front of me because he reduced his potential maximum down from life imprisonment to 15 years, and while he received two years, he certainly must have expected a term of years on the minimum if he had plead guilty in front of Judge Colombo to murder second.”
The trial court forthrightly summarized the merits of this issue:
"THE COURT: While you are reading that I should state for the record that I don’t know what more we can possibly do here. Judge Colombo made every effort to give the Defendant and his counsel every possible option open to him.
"At the time this case came to me I explained every possible option open to the Defendant. I gave him an opportunity to do anything he wanted really. I offered to refer it back for examination. I offered to refer it back to Judge Colombo or bring Judge Colombo and bring Mr. Healy in to make additional record.
"I told him exactly what my sentence would be if I accepted his plea, and knowing all of those things, and after discussion with his counsel he said, 'Yes, yes, that’s what I want.’ So we did that.
"Now this seems outlandish to me.” | [
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Per Curiam.
Defendant appeals from a jury verdict in plaintiff’s favor on an action brought for breach of an employment contract. Defendant’s motion for judgment notwithstanding the verdict or a new trial was ultimately denied on July 28, 1976. Defendant claims an appeal as of right.
Defendant’s first assignment of error is the fail ure to grant its motion for a judgment notwithstanding the verdict. Such a motion is appropriately granted only if the facts taken inferentially in the non-moving party’s favor preclude judgment for the non-moving party as a matter of law. Jackson v Fox, 69 Mich App 283, 285; 244 NW2d 448 (1976). Applying this standard, we find no error. The evidence, taken in a light most favorable to plaintiff, shows that a bargained-for term of the employment contract was a limitation on the right to discharge plaintiff at will. In response to plaintiffs concern that his services might be deemed unsatisfactory by his immediate supervisor, the executive vice-president of defendant agreed to personally review any discharge decision and limit the grounds of discharge by allowing plaintiff to correct any deficiencies in his performance and by not discharging plaintiff if the work was being performed. We hold that the bargaining for this term of the contract removes this case from the general rule that a contract for indefinite employment is terminable at will. In Hackett v Foodmaker, Inc, 69 Mich App 591, 594; 245 NW2d 140 (1976), lv den, 399 Mich 823 (1977), this Court emphasized that distinguishing features, promises, or consideration in addition to services to be rendered remove a case from the general rule:
’’(C)ontracts for personal services for permanent employment or for life are considered indefinite hirings, terminable at the will of either party, in the absence of distinguishing features or promises or a consideration in addition to the services to be rendered.” (Emphasis in original.)
We hold that the trial court did not err in denying the motion for judgment notwithstanding the verdict. Where parties bargain for a particular term in an employment contract thereby limiting either party’s right to terminate the contract, the contract will be honored as formed.
Appellant argues that plaintiff was not entitled to the benefit of the stock options because of the termination of his employment. Appellant’s reliance on Waldorf v KMS Industries, Inc, 25 Mich App 20; 181 NW2d 85 (1970), is misplaced. In that case plaintiff sought the transfer of the stock. In the instant case, plaintiff seeks as damages the value of the stock options that would have accrued to his benefit but for defendant’s breach of contract. Although appellant argues further that these damages are speculative, it is clear that plaintiff seeks damages flowing from the breach and not the stock itself as in Waldorf
Nor do we find the damages unduly speculative. Appellant does not challenge the computation of damages and indeed stipulated to the amount while objecting to relevancy and materiality. According to the stipulated calculation, plaintiff could have purchased shares of stock in defendant corporation worth $404,000 in exchange for $82,-000. Appellant’s argument is that since the employment contract was at will, plaintiff himself could have terminated it at any time prior to the vesting of his option rights and therefore his damages are speculative. However, we have previously stated our belief that the amount of damages was not speculative in light of defendant’s stipulation. If appellant’s argument is taken to its logical extreme, any breaching party could claim damages speculative because the non-breaching party might not fulfill its obligation. The correct focus is not on the non-breaching party, but on the breaching party. "(T)here may be recovery for full perform anee of an entire contract if complete performance has been prevented or waived by the parties entitled to demand it”. Nurmi v Beardsley, 284 Mich 165; 278 NW 805 (1938). The cases relied on by appellant stand for the proposition that dollar damages are too speculative where a contract for employment at will is breached. Where, as in the present case, dollar damages flowing from the breach are readily ascertainable, the breaching party should not be allowed to argue that the non-breaching party might also have terminated the contract.
Appellant raises several issues in support of its claim that the trial judge should have granted a new trial. Appellant claims that the jury instruction on plaintiffs theory should not have been given in the form submitted since it went beyond the evidence presented. However, we do not review theories and claims of parties with the strictness applied to instructions on applicable law. Viewing the jury instructions as a whole, we find no reversible error. Dixison v Asher, 7 Mich App 547, 550; 152 NW2d 161 (1967), Milauckas v Meyer, 1 Mich App 500, 508; 136 NW2d 746 (1965), lv den, 377 Mich 700 (1966).
Although appellant seeks reversal on the basis of testimony that was subsequently struck, at trial defendant was satisfied with the court’s instruction striking the testimony. This issue lacks merit.
Appellant lastly contends that taken as a whole, trial error must have resulted in an excessive verdict. Considering that the $300,000 awarded by the jury was less than a stipulated value of the stock options, this Court cannot agree that the verdict was excessive.
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R. E. Robinson, J.
Defendant raises three issues on this appeal, but we treat only two of them:
A. Where defendant was charged with receiving and concealing stolen property, did the trial court err in permitting testimony concerning defendant’s brother’s subsequent purchase of a similar automobile from the same seller who sold the stolen auto to defendant and testimony concerning the alleged theft of defendant’s brother’s car the day after the stolen car was impounded by police? We find that the admission of such testimony was error.
B. Did the people produce sufficient evidence of guilty knowledge where defendant did not acquire the stolen car until six months after it was stolen and paid a purchase price not markedly below market value, and where the people’s expert witness testified that a member of the general public could not detect the altered vehicle identification number? We conclude that the evidence was not sufficient.
On January 15, 1976, defendant was convicted by a Wayne County Circuit Court Jury of receiv ing and concealing stolen property contrary to MCLA 750.535; MSA 28.803. He was placed on probation for two years, with the first 90 days to be spent in Detroit House of Correction, and ordered to pay court costs of $300.
The facts giving rise to the charge against defendant are as follows. A leased, gold-colored, 1974 Lincoln Mark IV automobile was stolen during September, 1974, and the insurer of the automobile paid the lessor $9,500 for this loss. On May 28, 1975, the stolen car was located in defendant’s driveway in Inkster, Michigan, with an altered vehicle identification number. The car was then impounded, and, following a police investigation, defendant was arrested in September, 1975.
Defendant testified that he first saw the car on March 16, 1975, with a "for sale” sign in its window, and called the telephone number advertised there. Defendant haggled over the price with the purported owner, who was asking $6,600 for the car, but agreed to sell it for $6,200. The transaction was completed at a local Secretary of State’s office, where defendant paid the required tax and license fees of nearly $280.
Defendant further testified that substantial work was done on the car after he purchased it, including body repairs and an engine tune-up. Even after those repairs, however, the car brought only $6,-800 when it was resold following impoundment by the police.
At the beginning of trial, defense counsel made a motion in limine to suppress testimony concerning a transaction between the seller and defendant’s brother, particularly evidence that defendant’s brother’s car was reported stolen the day after defendant’s car was impounded. The trial court reserved judgment on the motion, and prior to recross-examination of defendant, the testimony was presented to the court in the absence of the jury. The court ruled the testimony admissible, and the jury was returned to the courtroom.
Defendant then testified that he gave his brother’s telephone number to the seller while in the Secretary of State’s office, explaining that he had done so because his brother had recently had an auto accident and the seller claimed to have "more transportation” to sell. Defendant further admitted that his brother had also purchased a 1974 Lincoln Mark IV. He stated, however, that he was not suspicious even though the seller claimed to be selling the stolen car to defendant because of a quarrel with his wife, since he took that claim to be "the sales pitch”. Defendant testified that he bought the car because it was a good deal which someone else would take if he didn’t. Further questioning brought out the fact that defendant’s brother’s car was stolen the day after defendant’s car was impounded and never recovered.
Issue A
Generally, the admissibility of evidence rests in the discretion of the trial court, which will not be disturbed on appeal absent an abuse of discretion. People v Ebejer, 66 Mich App 333, 340; 239 NW2d 604 (1976), People v Ranes, 63 Mich App 498, 507; 234 NW2d 673 (1975). Necessarily conceding that the evidence was prejudicial, the people argue that the evidence was properly admissible under the "similar acts statute”, MCLA 768.27; MSA 28.1050, to show defendant’s intent, motive or knowledge. That statute, however, is not a carte blanche for the prosecution’s introduction of inadmissible, prejudicial testimony. People v Frank Johnson, 58 Mich App 1, 4; 226 NW2d 730 (1975).
The people’s argument that evidence of defendant’s brother’s transaction with the seller was properly admitted under the similar acts statute must be rejected. Only evidence of defendant’s acts, not those of a third person, are admissible under the similar acts statute. Thus, only the fact that defendant gave out his brother’s telephone number could be admitted, and that fact alone shows very little, if anything, about guilty knowledge. The fact that defendant’s brother bought a similar car from the same seller after defendant bought his car and then reported it stolen the day after defendant’s car was impounded, are not defendant’s acts and do not show defendant’s guilty knowledge at the time he acquired his car. The inapplicability of the similar acts statute is demonstrated by the prosecutor’s brief itself when it cites the following as a fact supporting an inference of defendant’s guilty knowledge:
"4) The defendant’s brother’s car was stolen the same day that defendant’s was picked up and never recovered (163-164), the inference being that the second Mark IV was also stolen and the brother was attempting to avoid prosecution.”
(Appellee’s Brief on Appeal, p 10.) (Emphasis added.)
Such evidence is not only inadmissible under the similar acts statute, it is also irrelevant to the charges against defendant — and for the same reasons. Defendant’s brother’s actions have no bearing on defendant’s guilty knowledge, and they could not possibly show such knowledge at the time defendant received the stolen car because they did not occur until afterwards. Since the evidence is undeniably prejudicial and could not properly be admitted under the similar acts statute, the trial court erred in permitting it at trial. We need not consider whether this error alone would justify reversal, however, because we find that there was insufficient evidence of guilty knowledge and reverse on the basis of both errors.
Issue B
In People v Keshishian, 45 Mich App 51, 53; 205 NW2d 818 (1973), this Court set out the elements of receiving or aiding in the concealment of stolen property:
"The elements of this offense are as follows: (1) the property was stolen, (2) the receiving of the property by the defendant, (3) the identity of the goods as those previously stolen, (4) the value of the property, and (5) the guilty knowledge of the defendant.”
It is well settled that the fifth element, guilty knowledge, must be found to have existed at the time defendant received the stolen property. People v Westerfield, 71 Mich App 618, 621; 248 NW2d 641 (1976), People v Tantenella, 212 Mich 614, 619; 180 NW 474 (1920). As in Keshishian, defendant concedes that elements 1 through 4 were proved; he argues, however, that guilty knowledge was not proved as required. Id., 53.
Guilty knowledge generally cannot be proved by direct evidence; by its very nature, it must usually be inferred from all of the circumstances of the case. People v Westerfield, 71 Mich App 618, 621; 248 NW2d 641 (1976). Factors which have been held to support the inference of guilty knowledge include: (1) the defendant’s possession of the stolen article shortly after it was stolen, (2) change in the condition of the stolen article, (3) alteration of identifying marks, serial numbers, or registration, (4) a purchase price out of line with the article’s value, and (5) lack of any reasonable explanation from the defendant for his possession of the item. Westerñeld, supra, at 622.
Analyzing each of these factors one at a time, it becomes apparent that the people produced insufficient evidence of guilty knowledge by defendant at the time he received the stolen automobile. Because defendant purchased the car six months after it was stolen, no inference of guilty knowledge can arise because of the first factor mentioned above. In People v Brewer, 60 Mich App 517, 521; 231 NW2d 375 (1975), where the inference as to "recently stolen property” was permitted, the time span involved was only one hour; in People v McLott, 55 Mich App 198, 201, 203; 222 NW2d 178 (1974), the time lapse was only three hours. The six months involved here is simply too long for the car to be considered "recently” stolen.
Likewise, consideration of the second factor raises no inference of guilty knowledge. This factor was applied in Westerñeld, supra, at 622, as follows:
"Similarly, in this case, the condition of the vehicle itself contradicts defendant’s assertion that he was an innocent and unsuspecting purchaser. The vehicle identification number (VIN) plate on the door showed visible signs of recent tampering, and the car’s wiring and interior lights were out of commission. The VIN number on the car registration had been noticeably altered.”
In the instant case, however, there were no such suggestive irregularities in the condition of the car when defendant purchased it, and no inference of guilty knowledge can arise.
Similarly, no inference of guilty knowledge can arise on account of the third factor noted above. Although the people’s expert witness testified that the vehicle identification number had been altered, he also stated that the average person could not detect that fact. Consequently, no inference of guilty knowledge can be made. With respect to the comparison of purchase price to value of the car, there was in reality no comparison to be made. Although the prosecution offered evidence of the amount paid by the insurer of the car when it was stolen six months earlier, no evidence was offered of the value of the car at the time defendant acquired it for $6,200 (plus taxes of $280). In fact, after the police impounded it, the car was resold for only $6,800 — after defendant had substantial body work and a tune-up performed. This case is certainly far different from the situation in Westerñeld, supra, in which the Court found sufficient evidence of guilty knowledge. There, the owner of the stolen car had turned down offers of $1,000 and $800 for her car shortly before it was stolen, and the defendant admitted to paying only $350 for it less than two weeks later and reporting a sale price of only $75 to the Secretary of State.
In Westerñeld, the defendant paid only about one-third the value of the car he received; in the case at bar, defendant paid two-thirds the amount paid by the insurance company and 90% of the price recovered upon resale of the car, which price was obtained after substantial repairs by defendant. Such evidence is not sufficient to dispel any reasonable doubt as to defendant’s guilty knowledge, and defendant’s motion for directed verdict should have been granted.
Finally, defendant did produce a reasonable explanation for his possession of the car; he saw it with a "for sale” sign in the window, and paid over $6,000 plus $280 in taxes and license fees to buy it. There was no indication here that defendant had no explanation for possessing tools commonly used in stealing cars or traveling far out of his way to register the car in out-state Michigan as occurred in Westerñeld, supra, at 622. Nor is this case like United States v Prujansky, 415 F2d 1045, 1051 (CA 6, 1969), in which the defendant was discovered unloading stolen televisions from a U-Haul truck, but had no receipts and had made no entries in his books for the merchandise and made no explanation for those deficiencies.
Because the people failed to produce sufficient evidence to justify a verdict of guilty beyond a reasonable doubt, People v Blackwell, 61 Mich App 236, 241; 232 NW2d 368 (1975), defendant’s motion for directed verdict of acquittal should have been granted.
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M. J. Kelly, J.
Defendant pled guilty to the charge of assaulting a prison employee in violation of MCL 750.197c; MSA 28.394(3). Defendant was sentenced to a term of 1-1/2 to 4 years imprisonment and brings this appeal as of right.
On the day of the assault, defendant was assigned to Camp Waterloo and was enrolled in a work-pass program washing dishes in an Ann Arbor hotel. At the end of his work shift, defendant drank "a few beers” before being returned to the camp. When returned to the camp, defendant was told by a second inmate that prison officers wanted to see the defendant at the camp’s main office. At the office, the complainant prison guard attempted a shakedown of defendant under a suspicion that the defendant had been drinking. Defendant refused the shakedown and tried to leave the office. As the complainant pursued defendant to return him to the office, defendant picked up a shovel and struck complainant on the side of the head. Pursuant to an agreement between the prosecutor and defendant, defendant pled guilty but was not charged as a second offender.
We reject as frivolous each of defendant’s seven claims of error with regard to the guilty plea proceedings since our review of the record discloses full compliance with GCR 1963, 785.7.
The issue which merits extended treatment is defendant’s claim that the unreasonable 373-day delay between the date of arrest and trial date violated his constitutional right to a speedy trial or, alternatively, violated the 180-day rule if that rule is applicable. Const 1963, art 1, § 20, MCL 768.1, 780.131; MSA 28.1024, 28.969(1).
I
Consideration of defendant’s constitutional claim requires a balancing of four factors: (1) length of delay; (2) reason for delay; (3) whether defendant asserted his right to a speedy trial; and (4) prejudice to defendant caused by the delay. With respect to the first criterion, length of delay, no special formula exists; it has been held that a delay in excess of 18 months results in a presumption of prejudice, People v Bennett, 84 Mich App 408; 269 NW2d 618 (1978), and that less than six months is insufficient to trigger further investigation. The delay of approximately 12 months here necessitates further examination into the merits of defendant’s claim.
The delay appears, from our review of relevant dates included in defendant’s brief, to have been caused by court congestion. All pretrial proceedings were held at an orderly pace and were completed approximately four months after defendant’s arraignment, which leads us to conclude, as the people submit, that delay was strictly the result of docket scheduling problems. While delay of this nature is attributable to the prosecution, it has a neutral tint and should be given only minimal weight in determining whether defendant’s speedy trial right has been violated. People v Forrest, 72 Mich App 266; 249 NW2d 384 (1976), Barker v Wingo, 407 US 514; 92 S Ct 2182; 33 L Ed 2d 101 (1972).
Further, defendant concedes that he never asserted his right to a speedy trial. While such failure does not automatically constitute a waiver of the right, it is strong evidentiary support for the conclusion that defendant’s right was not violated. People v Hammond, 84 Mich App 60; 269 NW2d 488 (1978), United States v Mulligan, 520 F2d 1327 (CA 6, 1975), cert den 424 US 919; 96 S Ct 1123; 47 L Ed 2d 325 (1975).
Finally, as to defendant’s claim of prejudice, we conclude that in this particular case it is a factor of minimal import. The impairment to his defense, he alleges, was his inability to personally contact witnesses due to his incarceration and that his attorney could not perform this task as defendant knew the individuals by sight but not by names. Defendant also claims personal prejudice in the form of loss of privileges in that he was confined to a normal cell block following the assault, whereas he was formerly a member of a work crew and enjoyed more freedom of movement. We find these complaints unsubstantial.
With respect to the two categories of prejudice a defendant may suffer as a result of delay, impairment of defense is clearly the most serious. People v Chism, 390 Mich 104; 211 NW2d 193 (1973). We simply do not accept defendant’s argument that counsel could not obtain a list of names of other members on the work crew or other potential witnesses and contact them for interview. This was, after all, not a crime of great complexity and defendant’s allegations of prejudice are purely speculative. They were not raised in the circuit court and this fact goes hand and glove with the lack of demand for a speedy trial. We think this same reasoning applies to defendant’s claim of loss of personal privileges within the Department of Corrections. See People v Noble, 18 Mich App 300; 170 NW2d 916 (1969). We conclude that defendant was not denied the constitutional right to a speedy trial.
II
Since the original briefs in this case were filed, a recent decision of this Court has held that the 180- day rule specifically applies to offenses committed during incarceration. We think the panel which decided that case erred and we now examine whether the 180-day rule, a violation of which may result in dismissal of the charges against the defendant, is applicable under the present facts. MCL 780.131; MSA 28.969(1), provides:
"Whenever the department of corrections shall receive notice that there is pending in this state any untried warrant, indictment, information or complaint setting forth against any inmate of a penal institution of this state a criminal offense for which a prison sentence might be imposed upon conviction, such inmate shall be brought to trial within 180 days after the department of corrections shall cause to be delivered to the prosecuting attorney of the county in which such warrant, indictment, information or complaint is pending written notice of the place of imprisonment of such inmate and a request for final disposition of such warrant, indictment, information or complaint. The request shall be accompanied by a statement setting forth the term of commitment under which the prisoner is being held, the time already served, the time remaining to be served on the sentence, the amount of good time earned, the time of parole eligibility of the prisoner and any decisions of the parole board relating to the prisoner. The written notice and statement provided herein shall be delivered by certified mail.”
It is defendant’s position that the 180-day rule applies to offenses committed by a prison inmate even when any sentences for such offenses would be mandatorily consecutive. MCL 768.7a; MSA 28.1030(1). Defendant relies on a recent decision of this Court, People v Moore, 96 Mich App 754; 293 NW2d 700 (1980). After a careful review of the Moore opinion and People v Loney, 12 Mich App 288; 162 NW2d 832 (1968), we are convinced that Loney represents the better view. The Moore Court, in attempting to discredit the well-established rule of Loney, held that, absent any ambiguity in the language of the statute, its "plain meaning” must be given effect and therefore the rule applies equally to inmates who commit offenses prior to or during incarceration. We agree with the Loney Court’s interpretation of the statute and perception of legislative intent that the 180-day rule:
"[W]as intended to give the inmate, who had pending offenses not yet tried, an opportunity to have the sentences run concurrently consistent with the principle of law disfavoring accumulations of sentences. This purpose, however, does not apply in the instance of a new offense committed after imprisonment, nor where the statute, as in the case of an escape or attempted escape, sets up a mandatory consecutive sentence. The legislature was not concerning itself with the need for dispatch in the handling of a charge brought against an inmate for offenses committed while in prison.” 12 Mich App 288, 292. (Emphasis in original.)
As the people’s brief so aptly points out, the language of the statute clearly indicates that it was not intended to cover the instant factual situation. When applied to an inmate who commits an offense during the period of incarceration, the notice provisions of the statute are rendered superfluous. Section I directs the Department of Corrections, upon first receiving notice of a pending untried warrant or information, to notify the appropriate prosecuting attorney’s office of defendant’s place of imprisonment. The 180-day limitation is to commence running upon delivery of such notice. When the defendant is charged with an offense committed after incarceration, the prosecutor is obviously aware of defendant’s location when he aúthorizes issuance of the warrant and notice is unnecessary.
Where, as here, the language of a statute is clear and unambiguous, any inquiry into legislative intent is unnecessary and the statute will be applied as written. The Loney interpretation of MCL 780.131; MSA 28.969(1) reflects a reasonable legislative intent to preserve and encourage the practice of concurrent sentencing when appropriate. Acceptance of an across-the-board application to all inmates regardless of when the charged offense was committed, as promoted by the Moore decision, would lead to results not conceivably intended by the Legislature. All citizens are constitutionally entitled to a speedy trial. The 180-day rule assures inmates imprisoned on an earlier offense while other charges are pending that the right is equally applicable to them by discouraging the state from "holding back” or "forgetting” or otherwise losing them in the system. Inmates who commit crimes while imprisoned are not forgotten or lost. A warrant should promptly issue when the crime is discovered and venue established. As it is processed any constitutional speedy trial claim or defense (four factors listed above under Section I) would be available and tested by the applicable criteria. Such a situation should not trigger the imposition of the 180-day rule because any sentence imposed, being mandatorily consecutive, would ipso facto eliminate the element of personal prejudice due to additional time incarcerated as to the inmate. We therefore decline to follow the reasoning of Moore, supra.
Affirmed.
It is argued by the Jackson County Appellate Prosecutor that People v Loney, supra, has been followed many times in unpublished appellate opinions and is heavily relied upon by the bench and bar in that county. Whether the panel deciding People v Moore, supra, has weighted that intelligence or not, the State Court Administrator has furnished us with statistics for the three month period, March, April and May, 1980, of filings in Jackson Circuit Court which encompasses the county containing the State Prison of Southern Michigan at Jackson. These figures include:
Sample Annual Estimate
"Escapes (including attempts — usually from the Trustee Division, SPSM) 9 32 [sic]
Escapes (from Correctional Camps) 25 100
Inmate Offenses (other than escape) 11 44
Visitor Offenses 20 80
65 260” TOTAL
According to People v Wright, 89 Mich App 244; 280 NW2d 836 (1979), the period is commenced when defendant is incarcerated and the Department of Corrections knows or should know of the oustanding warrant, indictment, or complaint. | [
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V. J. Brennan, J.
This cause is on appeal from the Michigan Employment Relations Commission (MERC). Appellant Council 25, Local 893, American Federation of State, County and Municipal Employees (Union) appeals from an order dismissing its unfair labor practice charge against appellee Macomb County Road Commission (Road Commission).
The Road Commission employs 150 highway maintenance workers represented by the Union. Seventy of these 150 employees are placed in a "driver” classification which requires them to drive commission trucks during their employment.
Since 1966, a "good driving record” has been the necessary criterion for driving county vehicles. On or about May 19, 1977, a committee of employer and Union representatives adopted a safety policy which reiterated the standing Road Commission policy pertaining to driving records. The pertinent portion of the safety policy reads as follows:
"An employee shall * * * maintain a responsible driving record both on and off the job and report immediately any suspension or permanent withdrawal of a valid driver’s license or any violation points attached to said license. County vehicles will be operated in strict accord with all Road Commission policies and the laws of the State of Michigan.”
Accordingly, over the past several years the status of an employee’s driving record has been investigated every time there was a promotion.
Prior to 1978, the Road Commission dealt with two instances in which the employees had accumu lated "bad driving records”. In both cases, the Union and Road Commission negotiated an amicable solution to on-the-job driving problems caused by medical conditions. In one instance the Road Commission demoted an employee with no loss in pay and relieved him of his driving responsibilities following grievance negotiations with the Union. In the other, an employee was temporarily relieved from his driving responsibilities because of a medical problem which caused him to fall asleep while driving. The Union and the Road Commission mutually agreed that it was "best that he not drive for the safety of everybody concerned”.
Early in 1977, the Road Commission indicated that it was having difficulty in finding motor vehicle liability coverage for its employees. The Road Commission received only one bid for such coverage and at that the premium had quadrupled. Ultimately insurance coverage was obtained. The insurance company, however, asked the Road Commission to submit a list of the names and driver’s license numbers of all employees who drove licensed vehicles. The Union refused to divulge this information to the Road Commission. The insurance company ultimately carried out its own investigation of all employees with driver status and obtained the necessary information regarding driving records.
In June of 1977, the Road Commission was notified by its insurance agent, Blanchard Agency, that because certain individuáis had unacceptable driving records corrective measures would have to be taken or the Road Commission would face cancellation of insurance coverage. The Road Commission immediately took objection to this verbal warning and began corresponding with the insurance agent as to how to deal with this new problem. In addition to requiring written notification of the method by which an employee could obtain "acceptable records, whereby the restriction would be lifted”, the Road Commission objected to the insurance company’s inclusion of one employee on its list as having an unacceptable record.
During the contract negotiations which occurred in the last half of 1977, the parties discussed the issue of driving restrictions. The Road Commission indicated that it had no alternative but to follow the insurance company’s recommendations. The Road Commission also indicated that it was exploring alternatives and that it would do nothing further without written notice from the insurance company. No further action regarding the driving restrictions was taken at that time.
On May 31, 1978, the insurance carrier sent the Road Commission a formal written notice indicating that the driving records of five employees were deemed unacceptable.
The Road Commission responded by letter on June 5, 1978, noting that the insurance company’s actions affected the employees’ conditions of employment and requesting clarification of the restrictions and the process of review.
On June 12, 1978, after several conversations with the Road Commission, the insurance agency enunciated a policy establishing criteria for removal of employees from driving positions and reinstatement of driving privileges. The announced policy was that no employee with three moving violations in three years or one "major” violation in five years would be permitted to drive; less than three minor violations in three years would subject the employee to reconsideration.
On June 15, 1978, the Road Commission convened a meeting with the Union representatives to discuss the correspondence from the insurance agent and the driving records of the employees. The Union states that the Road Commission notified it of its intention to comply with the notice from the insurance company. The Union’s position at this meeting was that the insurance company had no right to affect the driving rights of employees who still possessed valid Michigan driver’s licenses.
On June 19, 1978, the Road Commission notified the insurance company by letter that it intended to comply with the insurance company’s position regarding driving privileges. On June 23, 1978, the Road Commission sent a memorandum regarding employee driving records to the acting president of the local union. A board meeting was held on June 27, 1978, at which time the Road Commission discussed the directive from the insurance company regarding the driving records of its employees. A motion was then passed by the Commission ers prohibiting three employees from driving and demoting other employees, one of whom subsequently resigned.
On August 1, 1978, the Union filed an unfair labor practice charge with the Michigan Employment Relations Commission, charging that the employer had unilaterally changed the terms and conditions of employment in violation of § 10(l)(e) of the Michigan public employment relations act ("PERA”), MCL 423.210(1)(e); MSA 17.455(10)(l)(e).
On September 11, 1978, a hearing was conducted on the matter before Administrative Law Judge Kurtz. On May 17, 1978, Judge Kurtz dismissed the Union’s charges. The Union objected to the administrative law judge’s decision and to the following findings: (1) that the Road Commission had bargained in good faith; (2) that the Road Commission bargained to impasse; and (3) that the Road Commission did not change existing conditions of employment.
The Michigan Employment Relations Commission (MERC) affirmed the dismissal of the unfair labor practice charge in a 2-1 decision. The Union now appeals from this determination.
The Union brings two issues on appeal. The first is whether the administrative law judge and MERC properly held that the Road Commission bargained in good faith under § 10(l)(e) of the public employment relations act, (PERA) MCL 423.210; MSA 17.455(10).
We find that this question must be answered in the affirmative.
The duty to bargain under PERA is set forth in §15:
"A public employer shall bargain collectively with the representatives of its employees as defined in section 11 and is authorized to make and enter into collective bargaining agreements with such representatives. For the purposes of this section, to bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement, or any question arising thereunder, and the execution of a written contract, ordinance or resolution incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal or require the making of a concession.” MCL 423.215; MSA 17.455(15).
The "good, faith” requirement is patterned after § 8(d) of the National Labor Relations Act (NLRA), 29 USC 158(d). Detroit Police Officers Ass’n v Detroit, 391 Mich 44; 214 NW2d 803 (1974). Under both PERA and NLRA, the collective bargaining obligation is defined as the mutual duty of labor and management to bargain in good faith with respect to "wages, hours, and other terms and conditions of employment”. The subjects included within this latter phrase are referred to as "mandatory subjects” of bargaining. Once a specific subject has been classified as a mandatory subject of bargaining, the parties are required to bargain concerning the subject, and neither party may take unilateral action on the subject absent an impasse in negotiations. Fibreboard Paper Products Corp v National Labor Relations Board, 379 US 203; 85 S Ct 398; 13 L Ed 2d 233 (1964).
Michigan has adopted a broad view of "other terms and conditions of employment”. See Van Buren Public School Dist v Wayne Circuit Judge, 61 Mich App 6; 232 NW2d 278 (1975). In Detroit Police Officers Ass’n, supra, the Supreme Court set forth the following examples of mandatory subjects of collective bargaining:
"[S]uch subjects as hourly rates of pay, overtime pay, shift differentials, holiday pay, pensions, no-strike clauses, profit sharing plans, rental of company houses, grievance procedures, sick leave, work-rules, seniority and promotion, compulsory retirement age, and management rights clauses, are examples of mandatory subjects of bargaining.” Detroit Police Officers Ass’n, supra, 55.
Promotional standards and the criteria for those standards are mandatory subjects of collective bargaining, Detroit Police Officers Ass’n v Detroit, 61 Mich App 487; 233 NW2d 49 (1975). MERC has held that driving conditions similar to those at issue in the case at bar are mandatory subjects of bargaining. City of Ecorse, 1979 MERC Lab Op 370.
In view of the above and the fact that the characterization of the driving requirements as "mandatory subjects of bargaining” is not contested by the parties, the driving requirements imposed by the insurance company fall within the scope of § 15 of PERA.
A second premise of the MERC decision — that there was in fact an actual unilateral change in a working condition — must be reviewed prior to reaching the merits of the Union’s claim that the parties had not reached an impasse in their negotiations before the change was imposed.
The Road Commission contends that "we have done nothing more than enforce an existing policy”. The administrative law judge agreed. Judge Kurtz found that the Road Commission’s reliance in 1978 upon the three violation-three year criterion to judge the qualifications of its drivers was merely an extension of the "good driving record” requirement. Judge Kurtz stated:
"More important, however, is the * * * argument that the job descriptions of driving jobs require a 'good driving record’, and that the safety policy of the Employer, which had been jointly drawn up with the Union, required an employee to, 'Maintain a responsible driving record both on and off the job * * *’. I agree with the Employer that the words 'good’ and 'responsible’ modifying 'driving record’ mean something more than the mere possession of a Michigan drivers license. The modifying adjectives could only mean that something more than the possession of a drivers license was required of the employee, and the record establishes that on at least a few instances prior to June of 1977, the Employer did take action to implement its understanding of the modifying adjectives. The fact that the insurance company caused the pre-existing requirement of a good or reasonable driving record to be enforced more vigorously does not negate the existence of the requirement in the first instance.”
However, MERC found that the three violation-three year rule implemented in 1978 was not a mere continuation of the general policy requiring a "good driving record”:
"We agree with the Administrative Law Judge that the preexisting use of the words 'good’ and 'responsible’ modifying 'driving record’ indicates that the Employer expected something more than possession of a driver’s license. However, it was not clear to the employees or their representative that a three violation-three year rule would be implemented until (at the earliest) June of 1977. We find that the subsequent implementation of the three violation-three year rule amounted to a unilateral change in working conditions. The Administrative Law Judge’s findings of fact must be amended to this extent.”
We concur with MERC’s finding that the Road Commission instituted a unilateral change in’ the conditions of employment. The testimony adduced at the hearing supports MERC’s conclusion.
The contract between the parties contains no specific requirements with respect to driving qualifications. A job description was introduced into evidence which listed a "good driving record” to be a desirable qualification for "Equipment Operator A”. The Union offered uncontradicted testimony to the effect that the only requirement in the past to hold a driving position was possession of a valid Michigan driver’s license. A safety manual was formulated in 1966 by a joint committee consisting of both employees and employer representatives. The manual provided that "an employee shall * * * maintain a responsible driving record both on and off the job * * However, prior to the institution of the three violation-three year rule in 1978, only two employees were demoted or reassigned due to deficiencies in their driving records. In these two instances, the driving problems stemmed from medical causes. The three violation-three year rule constituted a much more stringent and specific condition of employment than had existed in the past. The fact that it was not a mere continuation of the prior "good driving record” policy is demonstrated by the immediate demotion of several employees when the new qualifications went into effect in 1978. Thus, we find that the Road Commission unilaterally changed the conditions of employment when it implemented the three violation-three year rule.
On appeal, the Union postures that the Road Commission did not exercise the requisite good faith bargaining so as to justify such a unilatéral change.
In Detroit Police Officers Ass’n v Detroit, supra, 53-54, the Court explained the obligation of good faith bargaining:
"The primary obligation placed upon the parties in a collective bargaining setting is to meet and confer in good faith. The exact meaning of the duty to bargain in good faith has not been rigidly defined in the case law. Rather, the courts look to the overall conduct of a party to determine if it has actively engaged in the bargaining process with an open mind and a sincere desire to reach an agreement. National Labor Relations Board v Montgomery Ward & Co, 133 F2d 676, 686; 146 ALR 1045 (CA 9, 1943); National Labor Relations Board v General Electric Co, 418 F2d 736, 756 (CA 2, 1969); cert den 397 US 965 (1970); Morris, Ed, The Developing Labor Law, ch 11 (1971). The law does not mandate that the parties ultimately reach agreement, nor does it dictate the substance of the terms on which the parties must bargain. In essence the requirement of good faith bargaining is simply that the parties manifest such an attitude and conduct that it will be conducive to reaching an agreement. Edwards, supra, 894.”
See also Lamphere School Dist v Lamphere Federation of Teachers, 67 Mich App 485, 488; 241 NW2d 257 (1976).
We concur with Judge Kurtz’s and MERC’s findings that the Road Commission utilized good faith efforts for over a year in attempting to resolve the problem of driving qualifications.
When originally notified by its insurance carrier that several driver-employees were unacceptable risks and that corrective measures would have to be taken, the Road Commission took objection to the method of notification and requested more details concerning the methods by which its employees could present acceptable records. The Road Commission also objected to the inclusion of one employee on the tentative list. When notice of the new requirements was given to the Union, a grievance was filed by the Union. The parties thereafter reached a temporary resolution by restoring the employees to driving status pending written notice of the insurance company’s position. The issue of driving restrictions was subject to further negotiation and discussions. When the insurance company finally notified it that five employees were unacceptable, the Road Commission responded with a letter noting that the actions affected the conditions of employment and requesting further clarification. Further discussion with Union representatives occurred before the employees were finally demoted. In its June 19, 1978, letter to the Blanchard Agency, the Road Commission asked that an exception be made for one employee.
The above testimony supports the finding that "[r]ather than the Employer herein acting precipitously * * * the record substantiates a conclusion that the Road Commission went out of its way to avoid implementing the directive of its insurance carrier * * *”. The year of discussion, grievance processing, and contract negotiation on the issue of driving qualifications is indicative of a good faith effort on the part of the Road Commission to bargain and resolve the problem. Having mani fested an attitude which was conducive to reaching an agreement, and faced with loss of insurance coverage, the alteration in driving qualifications was justified unilateral employer action.
The Union’s reliance on City of Ecorse, supra, is misplaced. In Ecorse, the employer was found to have engaged in unfair labor practices by reason of its suspension of driving privileges of certain employees without notice and an opportunity for the Union to bargain on the issue. Unlike the present case, the employer instituted the unilateral change only ten days after notice from its insurance carrier. Moreover, the facts indicated that virtually no standards for driving previously existed nor was there a past practice of policing the driving habits of the employees. Furthermore, the charging party denied that it ever met with the employer to discuss the issue of driving standards. Thus, Commissioners Rehmus and Milmet, who heard the Ecorse case as well as the case at bar, distinguished the two cases by noting that in the instant case "there was adequate opportunity to bargain” and "that the Employer made good faith efforts for one year * *
Defendant’s final contention is that MERC erred in its finding that the Road Commission had bargained to the point of impasse, thereby justifying its unilateral change in the conditions of employment.
The necessity of impasse as a prerequisite to unilateral changes in conditions of employment has been explained by the Court in DPOA v Detroit, supra:
"After the parties have met in good faith and bargained over the mandatory subjects placed upon the bargaining table, they have satisfied their statutory duty. National Labor Relations Board v American Na tional Insurance Co, 343 US 395, 404; 72 S Ct 824, 829; 96 L Ed 2d 1027 (1952). The express wording of § 15 PERA and § 8(d) NLRA make it clear that the obligation to bargain does not compel either party to agree to a proposal or require the making of a concession. 'Thus, * * * the obligation * * * is simply to bargain in good faith on the items mentioned in the statute [PERA].’ Regents of the University of Michigan v Labor Mediation Board, 18 Mich App 485; 171 NW2d 477 (1969).
"If the parties are not able to agree on the terms of a mandatory subject they are said to have reached an 'impasse’. Under the NLRA when good faith bargaining has reached an impasse, the employer may take unilateral action on an issue if that action is consistent with the terms of its final offer to the union.” DPOA v Detroit, supra, 55-56.
Initially the Union contends that the issue of impasse was not raised by the parties and was therefore outside the scope of administrative review.
We disagree. Judge Kurtz found that "the Union had ample notice of the impending action of the Employer in regard to driving records, and an opportunity to bargain on such matter * * * I conclude the parties were at an impasse over the issue, and the Employer was justified in taking the action it did to implement the directive of the insurance company”. And MERC held that "on or about June 15, 1978” an impasse occurred which "justified unilateral Employer action”. MERC found as did Judge Kurtz "that there was adequate opportunity to bargain” and that "[t]he record is clear that during one full year of discus sion, grievance processing, memoranda writing, and specific contract negotiations on the subject at hand, the Union never advanced a counterproposal * * MERC concluded that "the Union by inaction cannot prevent an impasse from occurring”. Thus, the issue of impasse was properly considered by the administrative law judge and MERC. The issue, inseparable from the unfair labor practice charge, was raised by the facts as stated by the parties. Thus, it was properly considered by Judge Kurtz and MERC.
MERC’s determination of whether an impasse existed is subjected to only limited review by this Court. The standard of appellate review of MERC findings of fact is set forth in MCL 423.23(2)(e), (f); MSA 17.454(25)(2)(e), (f):
"The findings of the board with respect to questions of fact if supported by competent, material and substantial evidence on the record considered as a whole shall be conclusive.”
See also Const 1963, art 6, § 28, MERC v Detroit Symphony Orchestra, Inc, 393 Mich 116, 121; 223 NW2d 283 (1974), Lansing School Dist v MERC, 94 Mich App 200, 204; 288 NW2d 399 (1979), Ann Arbor Bank & Trust Co v Comm’r of the Financial Institutions Bureau, 85 Mich App 131, 137-138; 270 NW2d 725 (1978), Van Buren Public School Dist v Wayne Circuit Judge, 61 Mich App 6; 232 NW2d 278 (1975).
Our review of the record supports MERC’s finding that an impasse did in fact occur. The change in driving qualifications posed by the insurance company was known to both parties for approximately one year before it was finally implemented by the Road Commission. In mid-1977 the Road. Commission was notified by the insurance com pany that several driver-employees were unacceptable risks due to their poor driving records. The Commission immediately took objection to the method of notification utilized by the insurance company and in turn notified its employees of the possible changes in driving requirements. The issue was the subject of discussion between the parties on several occasions during contract negotiations in the latter part of 1977. The Union’s awareness of the problem is evidenced by the employees’ concerted refusal to reveal their driver’s license numbers when the Road Commission requested them to do so in order to enable the insurance company to make an investigation of driving records. The Union’s adamant stance on the issue is demonstrated by the grievances which were filed as early as January of 1978. The grievances were temporarily resolved when the Union and the Road Commission agreed to restore certain driver-employees to driving status pending written notice of the insurance company’s position. As of June, 1978, the parties were still in disagreement as to the propriety of the new three violation-three year rule. On June 15, 1978, the Road Commission held a meeting with Union representatives to again discuss the insurance company directive and the effect it would have on certain employees. The Union reiterated its protest that the insurance company had no right to affect the driving rights of employees who still possessed valid Michigan driver’s licenses. At this point in time, the grievance alleging unfair labor practices was filed by the Union.
The above sequence of events clearly indicates that bargaining on the subject of driving performance had progressed to the point of impasse by June 15, 1978. During one full year of negotiation and grievance processing, the Union never altered its position that the third-party insurance company could not impose any condition of work on the parties. As noted by MERC, "[t]he Union’s intransigence, or inability to come up with a creative solution may well have precipitated the impasse. In any event, the Union by inaction cannot prevent an impasse from occurring”. On the other hand, the Road Commission "went out of its way to avoid implementing the directive of its insurance carrier that employees with poor driving records should be prohibited from driving Road Commission vehicles”. According to the above facts, the administrative law judge (and MERC) correctly concluded that:
"The meeting of the parties on June 15, 1978, confirmed the pre-existing positions of both parties, with the Employer taking the position that it could no longer delay taking action on the directive of the insurance company issued the previous June, and the Union steadfastly maintaining its position that the insurance company had no right to dictate whether the employees could drive a Road Commission vehicle. * * * the parties were at an impasse over the issue, and the Employer was justified in taking the action it did to implement the directive of the insurance company. Grosse Pointe Fire Dep’t, 1977 MERC Lab Op 689, 695.”
Affirmed.
Eventually this employee was reinstated to his former driving status when his medical problems were cured.
The notice stated:
“We are enclosing motor vehicle records for several drivers of vehicles covered under the captioned fleet policy. We are advised by the insurance company that these records are unacceptable. They are asking that definite action be taken to eliminate the individuals as regular operators of vehicles.
"Obviously some time may be necessary for the persons involved to be scheduled in other duties if that is possible. We must advise, however, that the Hartford Insurance Group is unwilling to continue the fleet policy if action is not taken in regard to these records. Thank you for advising us when appropriate action has been taken.”
The June 23, 1978, letter stated:
"I have attached correspondence relative to driving records and the insurance carrier’s position regarding these records. As I discussed at our meeting on June 15th, the employees affected are being restricted from driving and where such restrictions affect the employee’s job classification where driving is not required. These restrictions and re-classifications will be subject to review in the future and lifted when the employee demonstrates improvement. It is important that the matter of vacated positions due to the demotions be discussed and I intend to bring the issue up at our next meeting.”
Administrative Law Judge Kurtz held:
"There is no evidence that the Employer approached the problem in this case in bad faith or with an intent to avoid its bargaining obligation with the Union. On the contrary, the record substantiates a conclusion that the Employer exhausted every means at its disposal to change or delay the decision of the insurance company, and that these efforts were known to the Union and it apparently acquiesced in these efforts. Under these circumstances, I find no violation of the Employer’s bargaining obligation in this matter.”
MERC upheld Judge Kurtz’s findings involving good faith:
"We find as did the Administrative Law Judge that there was adequate opportunity to bargain about it; that the Employer made good faith efforts for one year to seek a resolution of its problem with the Union * *
The Union argues that the issue at impasse was neither pleaded as a defense nor otherwise litigated by the parties and that the MERC decision is thus in direct conflict with MCL 24.272(3); MSA 3.560(172)(3), which provides that “[t]he parties shall be given an opportunity to present oral and written arguments on issues of law and policy and an opportunity to present evidence and argument on issues of fact”. | [
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Per Curiam.
On April 9, 1979, the Michigan Worker’s Compensation Appeal Board in a 3-2 decision affirmed the August 12, 1976, decision of the referee denying plaintiff workers’ compensation benefits on the grounds that plaintiff had refused favored work. Plaintiff appeals this order by leave.
On August 17, 1973, while working for defendant as a grinder, plaintiff sustained a crushing injury to his right hand. The index and middle fingers of his right hand were severely injured, necessitating the amputation of his thumb on August 27, 1973, followed by plastic surgery for his middle finger. Defendant voluntarily paid benefits from August 27, 1973, until November 25, 1974, the specific loss period. Plaintiff returned to work in late December, 1973, and was restricted to one-handed jobs by order of defendant’s physician. Accordingly, he was assigned to favored work which consisted of filling baskets with parts and conveying them to various plant locations by pushing one of three buttons and monitoring the flow of the parts. After an hour or so on the job, a foreman and three other workers told plaintiff that each basket had to contain parts of only one type, not mixed parts. Thus, plaintiff was required to manually sort the parts, some of which weighed 40 to 75 pounds each. Although this aspect of the job required two hands and caused plaintiff much pain, plaintiff performed the job for about a week without asking to be given a different job. No one disputes that plaintiff was unable to perform this task. On January 7, 1974, plaintiff obtained a medical leave for pleurisy, unrelated to the accident, and received John Hancock benefits for one week. Upon leaving the job, plaintiff re-enrolled at the University of Michigan to complete his senior year. He worked at a pizza parlor in Ann Arbor, both full and part time. After completing his bachelor’s program, plaintiff began work on a master’s degree in business at the University of Detroit. Since August, 1975, plaintiff has worked as a caseworker with the Department of Social Services.
Plaintiff raises three issues on appeal. The first is whether plaintiff’s leaving defendant’s employ constituted a refusal of favored employment. An employer need not extend benefits beyond the statutory disability schedule to a worker who has refused employment within his capabilities, which is known as "favored” employment. Pigue v General Motors Corp, 317 Mich 311; 26 NW2d 900 (1947), Lynch v Briggs Manufacturing Co, 329 Mich 168, 172; 45 NW2d 20 (1950). An employer must prove, however, that it made an actual rather than speculative offer of favored employment before it can claim that the injured worker voluntarily refused it. Kolenko v United States Rubber Products, Inc, 285 Mich 159; 280 NW 148 (1938), Sims v R D Brooks, Inc, 389 Mich 91; 204 NW2d 139 (1973), Hope v Welch Grape Juice Co, 46 Mich App 128, 129; 207 NW2d 476 (1973).
Defendant contends, and the referee and WCAB majority concur, that plaintiff left defendant’s employ because of his desire to complete his education. This position is supported by the fact that plaintiff registered for his senior year of classes the week prior to the last day he worked for defendant. The assumption is that plaintiff’s posture was one of bad faith since he would have not remained with defendant even if he could have had a job which he was capable of performing. As support, they note that plaintiff did not ask for a different job after his first assignment turned out to require both hands. Rather, in leaving defendant’s employ, plaintiff stated that he was doing so because of pleurisy rather than an inability to perform the job.
Plaintiff counters that the issue of good faith was legally irrelevant since he was never actually offered favored employment.
Although we find this a close factual question, we are persuaded that defendant’s position is the correct one. When plaintiff returned to work following his injury, plaintiff’s foreman assigned him to favored work. That job merely required the pushing of three buttons to transport various parts throughout the plant. As such, it was a task performable by injured employees with a one- handed medical restriction. In fact, there was testimony that this assignment was routinely given to employees with one-handed restrictions, since, when like stock was run, the employee was only required to push three buttons. However, 1-1/ 2 hours after plaintiff began his favored work, another foreman assigned him to sort the mixed stock, a task clearly requiring two hands and contrary to the medical restrictions issued to plaintiff. Despite the fact that the sorting of parts weighing from 40 to 75 pounds each caused plaintiff much pain, he performed the job for about one week without asking to be given a different assignment.
Our reading of the cases leads us to conclude that a realistic and definite offer of favored employment must be present before the worker’s conduct is called into question. The requirement can be somewhat formalistic. See Sims v R D Brooks, Inc, supra. The offer of favored employment to a disabled worker is simply a means of permitting an employer to offset its loss.
In Kolenko v US Rubber, Inc, supra, 162, the Supreme Court placed the burden on the employer to show that it offered favored work and noted that the employee had maintained a posture of good faith. On the other hand, the employee’s good faith was not a prerequisite in Sims, supra, where an offer of favored work was never made.
In the instant case, defendant made a definite offer of favored work which plaintiff accepted. Once the nature of the favored work changed, we believe that plaintiff should have brought his medical restriction to defendant’s attention. Instead he continued to work at this new task for approximately one week, before citing pleurisy as his reason for terminating his employ. We concur with the WCAB’s assessment of the factual circumstances presented here:
"Rather than alert defendant that he could not do the offered work, he left work with a pleurisy condition (for which he drew sickness benefits), returned to the academic career he had always intended to pursue, and nearly a year later asserted his right to compensation benefits. That defendant acted in good faith and with the intent to provide work within plaintiffs capacity was demonstrated by the placement attempts during the specific loss period for which it had undisputed liability for benefits in any event.
"Good faith is (or should be) a two-way street, and this plaintiff failed to demonstrate any such good faith. The prior Opinion would reward him for that. (See similarly Christiansen v Eaton, Yale & Towne, Inc, 1977 WCABO 921, affirmed by Court of Appeals decision dated September 6, 1978 [Docket #77-1442], Supreme Court leave denied.)”
Plaintiff raises two other issues which can be summarily addressed. His claim that the WCAB majority did not set out the testimony adopted, standard followed, and the reasoning used to reach its conclusion is meritless. The opinion of the WCAB sufficed to permit this Court to review its findings.
Finally, plaintiff argues that he was entitled to vocational rehabilitation services at defendant’s expense. The WCAB’s ruling to the contrary was correct in light of its finding that plaintiff failed to pursue the statutory procedure of petitioning the director, Frammolino v Richmond Products Co, 79 Mich App 18; 260 NW2d 908 (1977). Having failed to request a hearing, he was thereby not entitled to have one. MCL 418.319(2); MSA 17.237(319)(2). Moreover, we find no error in the board’s conclu sion that plaintiffs enrollment at the University of Michigan was not a rehabilitative program within the meaning of the statute.
Affirmed. Costs to be paid by plaintiff.
The medical evidence is undisputed that plaintiff has a significant disability of his right hand. Physicians employed by defendant opined that he had a 30 or 35 percent disability of the hand while plaintiffs physician stated that he had a 60 percent impairment.
At the hearing before the referee, plaintiff testified that most of the parts were mixed. He described them as including 35 to 40-pound flywheels, 75-pound engine heads, as well as water pumps, and transmission casings and retainers which needed to be separated. In addition, he stated that he was required to lift some 30 to 40 parts each hour and described the effect of this employment on his right hand:
"Q How did your hand, your right hand feel when you lifted these parts?
"A Well, I could lift it, but I would experience pain afterwards. Halfway through doing this job, my hand was really sore.”
Also:
"A My hand was feeling very painful, and the joints were aching.” | [
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Per Curiam.
In September or October of 1974, plaintiff filed an application with defendant City of St. Joseph to construct a billboard at 1127 Main Street. The application was denied. Plaintiff appealed to the city’s board of appeals which tabled the matter in January of 1975. Plaintiff apparently had wanted to erect three additional billboards at 1021 Main, 342 Main, and 1719 Lake Shore; however, no applications for construction at these sites were filed.
On February 3, 1975, defendant adopted the sign ordinance in question, § 81.05(a) of the Code of Ordinances of the City of St. Joseph, which reads in part:
"No person shall erect any billboard, advertising sign or structure having an area of more than 100 square feet in the City of St. Joseph without first obtaining a permit to do so from the Building Inspector or other authorized agent and no such billboard, advertising sign or structure which is not attached to or a part of a building shall be erected within 100 feet of any public street or highway. No such billboard, advertising sign or structure shall be attached to any building or structure unless it advertises a firm, building or activity located in the same building.”
Plaintiff commenced the instant action in circuit court, seeking an order directing the city to issue a permit for the erection of the billboard at 1127 Main Street. After a trial on the merits, the court ruled against plaintiff.
On appeal, plaintiff has raised six separate issues; however, when all of the camouflage is stripped away, the real question is whether or not the city’s sign ordinance, which requires a 100-foot setback for advertising signs, is reasonable. The trial court found that the setback was reasonable.
We disagree. The practical effect of the 100-foot setback requirement for advertising signs is to exclude advertising signs in the City of St. Joseph. Central Advertising Co v City of Ann Arbor, 391 Mich 533; 218 NW2d 27 (1974), held that such actions were not permissible.
As to the question of damages, we find that the refusal to issue the permit for the 1127 Main Street location was improper under the ordinance in effect at that time. Refusal to issue a permit is a ministerial act upon which liability can be predicated. Armstrong v Ross Twp, 82 Mich App 77; 266 NW2d 674 (1978). It was error for the trial court to rule that plaintiff was not entitled to damages for the denial of the permit at the 1127 Main Street location. At the time plaintiff applied, there was no setback requirement nor did the zoning ordinance exclude it.
Reversed and remanded for proceedings consistent with this opinion. | [
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T. M. Burns, P.J.
Plaintiff appeals as of right a February 11, 1980, lower court order granting accelerated judgment in favor of defendants Midland County Agricultural and Horticultural Society (MCAHS) and the United States Trotting Association (USTA). We affirm.
Plaintiff is a Canadian horse racer. Defendants are the Midland County Agricultural and Horticultural Society, an organization that runs the Midland County Fair, and the United States Trotting Association, a national association of horse racers under whose authority horse racing is conducted at the Midland County Fair.
In June of 1976, defendant MCAHS advertised that it was going to hold a race for three-year-old horses at the 1979 Midland County Fair. Plaintiff, who wished to race his horse Jambo Galaxy in that race, paid the qualifying fees and registered his horse for it. Approximately two years later, in April, 1978, the MCAHS realized that it had sufficient money to also run a race for two-year-old horses at the 1978 Midland County Fair. A letter announcing the 1978 race was sent to owners of horses who had entered the 1979 race for three-year-old horses. Plaintiff claims that he never received the letter announcing the 1978 race in which it was stated that a $40 qualifying payment had to be received by the MCAHS before May 15, 1978, in order to register a horse for the race.
Plaintiff claims that he first became aware of the 1978 race when he received a program describing the 1978 Midland County Fair. Plaintiff believed that his horse, Jambo Galaxy, was entered in the 1978 race for two-year-old horses because he had previously entered it into the 1979 race for three-year-old horses. Approximately one week before the race, he sent his horse to the track in order to train. He did not become aware that his horse was not qualified to run in the race until August 12, 1978, several days prior to the date of the race. Plaintiff immediately filed suit seeking an injunction requiring the fair to allow his horse to run in the race. However, the requested relief was denied and the race was run without plaintiff’s horse.
On September 29, 1978, plaintiff filed suit against the chairman of the fair and the defendant United States Trotting Association. On December 12, 1978, the lower court granted accelerated and summary judgments against the plaintiff in favor of the two defendants. Plaintiff amended his complaint on January 10, 1979, to state causes of action against the present defendants on the ground that they had failed to publish the fee requirement for the 1978 race.
While plaintiff was pursuing this action in the circuit court, the board of review for the USTA conducted an investigation into this matter and, on January 7, 1979, concluded that proper notice of the 1978 race had been given and that plaintiff’s horse had not been wrongfully denied a position in the race. Thereafter, defendants moved for accelerated judgment, which was granted by the lower court in an order dated February 27, 1980.
In accordance with the provisions under which the USTA is governed, "[ejvery applicant for mem bership and every member shall be confined in any action at law or in equity against this Association to the jurisdiction of the courts, Federal or State, within which the principal office of the Association is situated”. The principal office of the USTA is in Ohio. Based upon this by-law of the USTA and upon Michigan’s forum selection statute, MCL 600.745; MSA 27A.745, the lower court held that it did not have jurisdiction over the instant suit.
In pertinent part, the forum selection statute provides as follows:
"(3) If the parties agreed in writing that an action on a controversy shall be brought only in another state and it is brought in a court of this state, the court shall dismiss or stay the action, as appropriate, unless any of the following occur:
"(a) The court is required by statute to entertain the action.
"(b) The plaintiff cannot secure effective relief in the other state for reasons other than delay in bringing the action.
"(c) The other state would be a substantially less convenient place for the trial of the action than this state.
"(d) The agreement as to the place of the action is obtained by misrepresentation, duress, the abuse of economic power, or other unconscionable means.
"(e) It would for some other reason be unfair or unreasonable to enforce the agreement.”
Lack of jurisdiction is a proper reason for granting accelerated judgment. GCR 1963, 116. It is quite evident from the foregoing provision of the USTA by-laws that the association and its members agree to bring all the legal actions against the association in the state of Ohio. Plaintiff claims, however, that Ohio would not be an appropriate forum for this suit because he would not be able to obtain jurisdiction over defendant MCAHS in that state.
The record indicates that plaintiff is a resident of Ontario, Canada, and not a resident of Michigan. In addition, several important witnesses are residents of Ohio. Further, it appears that plaintiff’s action against the MCAHS is not identical to nor inextricably related to his action against the defendant USTA.
Plaintiff’s suit against the MCAHS is grounded upon the alleged failure of that defendant to publish and to make known to plaintiff all requirements for the August 14, 1978, horse race. Plaintiff’s suit against the defendant USTA is premised upon a failure of that defendant to properly enforce its rules and regulations with respect to the running of the August 14, 1978, horse race. Therefore, inasmuch as the USTA by-laws directing that suits against it be brought in Ohio are valid and because a suit against the USTA could proceed without prejudice to plaintiff in the absence of defendant MCAHS, we affirm the lower court and hold that plaintiff should have brought the instant suit against the USTA in Ohio.
We similarly affirm the lower court’s grant of accelerated judgment to defendant MCAHS. The lower court found, and we agree, that plaintiff’s action against this defendant is controlled by Lowe v Hotel & Restaurant Employees Union, Local 705, 389 Mich 123; 205 NW2d 167 (1973), where the Supreme Court held that the existence of an organization rule requiring submission of intra-organizational disputes to internal resolution procedures was not violative of the law.
Section 9 of Rule 12 of the USTA rules provide that:
"Every entry shall constitute an agreement that the person making it, the owner, lessee, manager, agent, nominator, driver, or other person having control of the horse, and the horse, shall be subject to these Rules and Regulations and will submit all disputes and questions arising out of such entry to the authority and the judgment of this Association, whose decision shall be final.”
In the absence of fraud or oppression, the decisions of tribunals of a fraternal order or association are conclusive in matters of discipline and internal policy. Therefore, because plaintiffs suit against the MCAHS alleges failure to follow association rules, it is the association and not the courts who should decide this matter with reference to the written rules. This Court does not desire to become entangled with the rules of a sporting association concerning the promotion and regulation of competition. Where the association provides a speedy and effective means of deciding controversies before it and where there is no evidence of fraud or oppression by the association against the complaining member, the courts should not interfere with the orderly governing of the association.
By becoming members of the USTA, both plaintiff and the defendant MCAHS have subjected themselves to the association’s system for resolving disputes. The USTA has considered the instant case and found that defendant MCAHS did not violate any association rules by the manner in which it promoted and conducted the 1978 Midland County horse race. There is no evidence that this decision of the USTA amounts to a fraud on plaintiff. Therefore, the lower court properly granted accelerated judgment in favor of defendant MCAHS.
We have considered all issues raised by plaintiff in this appeal as well as the cross-claims asserted by the defendant USTA. We find that none of the issues raised involve reversible error. Therefore, the decision of the lower court in this case is affirmed. | [
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Per Curiam.
Plaintiffs appeal as of right an August 24, 1979, lower court order confirming a modified arbitration award. We affirm.
We summarily reject plaintiffs’ argument that the members of the arbitration panel exceeded their authority. Specifically, plaintiffs contend that the arbitration panel exceeded its authority be cause it assessed an award against Realtek Industries, Incorporated, and provided that the award be paid to Westland Towers Apartments and indirectly to Donald Horace. Plaintiffs note that even though the modified arbitration award deleted the name of Realtek Industries, the amount of the award remained unchanged, and, hence, the award still sought to hold Realtek liable.
There is no dispute with the fact that Realtek was not a party to the arbitration agreement. However, the arbitration panel’s award should be taken at face value. The modified award makes no mention of Realtek, and, moreover, there is no indication that plaintiffs were not subjected to personal liability for the several claims made against them in the arbitration dispute.
It is apparent that the claims submitted by the defendants to the arbitration panel were directed against plaintiffs for mismanagement. It would be incorrect to construe these claims as being directed against Realtek.
Nor did the arbitrators exceed their authority because their award enured to the benefit of Donald Horace and Westland Towers Apartments. The partnership agreement incorporated all of the terms and conditions of the joint venture agreement. It is clear that the partnership agreement itself bound all of the parties to an agreement to arbitrate all disputes arising out of the agreement. Because the partnership itself was a party to the agreement, the fact that it, or one of the individual partners, may have received some benefit from the arbitration award is not sufficient to have that award set aside.
Plaintiffs next argue that the lower court erred in failing to vacate the arbitration award because the arbitrators rendered a blanket award rather than a separate award for the specific claims presented to it. However, while this Court has suggested on prior occasions that arbitrators should address themselves to each claim in a multiple-claim case rather than render a blanket award, it is not necessary for arbitrators to do so. See Detroit Demolition Corp v Burroughs Corp, 50 Mich App 129; 212 NW2d 827 (1973), rev’d on other grounds 392 Mich 769; 219 NW2d 613 (1974), E E Tripp Excavating Contractor, Inc v Jackson County, 60 Mich App 221; 230 NW2d 556 (1975), lv den 394 Mich 834 (1975).
The fact that the arbitrators did not address in their award each of the individual claims presented to them is not sufficient under these facts and on this record to require that the award be vacated. Cf. North American Steel Corp v Siderius, Inc, 75 Mich App 391; 254 NW2d 899 (1977), where the panel was ordered to make specific findings of fact and had not complied. It would be inappropriate on the facts of this case to establish a rule of law requiring arbitration panels in all cases to individually address multiple claims — particularly so since this record does not contain a complete list of the various claims submitted to arbitration.
Plaintiffs’ final argument is that the lower court erred in failing to set aside the award because the arbitrators refused to hear evidence material to the controversy. See GCR 1963, 769.9(l)(d). Our examination of the record indicates that the arbitrators did give plaintiffs a full and fair opportunity to present all pertinent facts to the arbitration panel the first time that this case was submitted to it. We note, in particular, that the lower court order vacating the original arbitration award and remanding this controversy to the arbitration panel did not order the panel to conduct further fact-finding. Further, although plaintiffs allege that new and additional facts should have been submitted to the arbitration panel on remand, plaintiffs do not indicate what these new facts are, nor have they established that these facts are material. Therefore, the fact that plaintiffs were denied permission to present new facts to the arbitration panel prior to the panel’s issuance of this amended award does not require that that award be vacated.
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J. T. Kallman, J.
The defendant, David Lee, was found to be in violation of the state’s fire and safety regulations in running a church-related school, and was ordered by Calhoun Circuit Court to correct the violations. Pastor Lee appeals as of right.
The defendant purchased three modular classrooms from the Linden School District. These modular classrooms were used as classrooms and apparently met state requirements:
"Q. Were they in fact in compliance with all State regulations when they were used * * * as public school?
"A. Yes, sir. I have records on [sic] my file that I have given all the various certificates of occupancy and so forth to the Linden School District.”
The buildings were then remodeled for use as a church and a church school.
The Department of Education requested that the State Fire Marshall inspect the buildings. After the inspection, the defendant was cited for basically five violations:
(1) No approved fire alarms (Rules 13 and 141),
(2) Lack of approved stairs, platforms or landings (Rule 95),
(3) Failure of the walls of the module to meet a minimum of Class "C” materials (Rule 122),
(4) No certificate of electrical approval (Rule 181), and
(5) No room with at least one hour retarding material for storage of combustible materials (Rule 153).
The defendant contends they are not above the law and that they have done the following:
(1) installed a fire bell,
(2) provided seven exit doors and fire doors,
(3) corrected electrical violations,
(4) stored no combustibles in the buildings,
(5) conducted regular fire alarm drills,
(6) enabled students to evacuate the buildings within 12 seconds,
(7) proceeded with the installation of handrails,
(8) installed panic bars on doors, which open on impact, and
(9) installed exit lights.
Secular courses are taught Monday through Friday with a Christian emphasis.
The first issue this Court must determine is: are these buildings school buildings?
The circuit court found that they were, and we concur.
"The definition of a 'school building’ under the School Fire Safety Rules is given in R 29.16(2) of the Michigan Administrative Code as follows:
" 'School building’ or 'building’ means a building or structure used by six (6) or more students for instruction such as a school, university, college or academy. In areas where instruction is incidental to some other occupancy, the fire safety requirements for that occupancy shall apply.”
There is no question in this Court’s opinion that these children are receiving secular instruction with a Christian emphasis under the A.C.E. program. Whatever words or semantics we engage in, the buildings constitute a school. As a school they are subject to the fire and safety regulations of the State. As the defendant’s attorney, Mr. Craze, stated in argument:
"Now the church has never said it is above the law. It has never said that, and does not say that today.”
The defendant argues that the church will comply with fire regulations for the primary purpose of the buildings and that the primary purpose is to serve as a church. The argument then flows to the discussion of the word incidental. Defendant argues that the church school is incidental to the propagation of the Christian faith, and, having met the fire and safety requirements for a church, this encompasses and permits all incidental uses of the buildings, including use as a church day school. In fact, the pastor calls it a church-related school and a Christian day school. The lawyers and circuit court judge spend a great deal of time discussing the word incidental. There is no question from the record that the school is an integral part of the ministry of the church. There is no question that a school of this nature is usually connected with a church.
For the generally understood legal definition of incidental, we turn to Black’s Law Dictionary, (4th ed), pp 904-905:
"Incidental. Depending upon or appertaining to something else as primary; something necessary, appertaining to, or depending upon another which is termed the principal; something incidental to the main purpose.”
A church school is not incidental to the church’s ministry — it is an integral part of the ministry, yet separate and distinct. The fire and safety regulations treat a church and a school separately. If a building is used as a church, the church fire and safety regulations apply. If as a school, the school fire and safety regulations apply. This building is used primarily as a school, so the latter apply. There is a compelling state interest to ensure the safety and welfare of all school children. In ensuring the safety of school children, the state is not violating the free exercise clause of our Constitution nor its establishment clause. This Court cannot prevent the teaching of the ¿scriptures in a church, its Sunday school, during youth hours or prayer meetings, in its church day school, etc. This is protected by our First Amendment.
The next question we must address is: Is a church day school subject to the fire and safety regulations for a school?
This Court must answer in the affirmative. These laws are for the protection of students, not for the protection of a church day school. There is a legitimate state interest to ensure such safety, which does not interfere with a church day school’s uses. The compelling interest is the safety of the children. It is interesting to note that Det. Sgt. James L. Haehnle stated that the building was unsafe for 17 people Monday through Friday. Yet, the building meets code requirements for Sunday morning services when 90-100 people are in attendance. Mr. Haehnle stated that you have to use common sense in your inspections. The record indicates that these buildings were safe when used by the Linden School District for their children. When used by the Liberty Baptist Church day school for their children, the same buildings are unsafe. Somehow, this logic escapes this Court. If it was safe for public school children, what suddenly makes it unsafe for church school children? Common sense? There would appear from this record to be a different set of standards to be applied to the Linden School District and to the Liberty Baptist Church. This could appear in some minds to be harassment of the Liberty Baptist Church, a religious school, or the answer could be that the state didn’t inspect the buildings while at Linden. If the latter is the case, one wonders about the state’s concern for the safety of children in a public school.
Mr. Haehnle stated that one must use common sense in applying the standards set. What is their purpose? Obviously, the purpose of the standards is the safety of children. At Liberty Baptist School they are able to evacuate everyone in 12 seconds. I doubt that any public school can evacuate their students in 12 seconds. There are from five to seven exits with panic bars, so that everyone can escape almost immediately. It would appear that Liberty Baptist Church clearly is as concerned as the state for the safety of their children. Mr. Haehnle stated that to save lives is more important than regulations. Will a correction of the existing violations speed up the evacuation of the building? This Court seriously questions this.
Let’s proceed to analyze the violations. The violation of Rule 153 seems absurd when the record clearly shows that no combustibles, except paper, are stored on these premises.
The violation of Rule 95 was substantially cured at the time of trial.
This leaves us with three violations out of five. The violation dealing with lack of a fire alarm (Rules 23 and 141) was apparently corrected by Pastor Lee with the installation of a fire alarm. Yet no one checked it to see if it met U. L. Standards. If it is not approved, the violation would still exist. If it’s approved, there is no violation.
As to the two remaining violations, they have not been corrected.
We are, in reality, talking about regulations which probably will not speed up the evacuation of the children from the buildings. However, the fire alarm should give quicker notice to all if a fire occurs, thus aiding in the evacuation of the buildings.
The correction of the building walls to Class "C” material might or might not give more notice or time. It will obviously not reduce the evacuation time of 12 seconds. The lack of electrical approval will not speed up the evacuation time. The record is silent as to these points.
After analyzing these violations, the Court concludes that there are three violations that should be corrected pertaining to the electrical certificate, the walls, and possibly the fire alarm. One violation charged has not been proven — need for a combustible storage room. The defendant has substantially complied with the order to remove the violation on this record regarding the outside stairs, platform, and handrails.
All schools should meet reasonable safety requirements for children entrusted to their care. Mr. Craze admits that the defendant’s church is not above the law. The Christian faith, as propagated by Liberty Baptist Church, requires submission to those in positions of authority. Romans 13:1-5, 7, reads:
"Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God.
"Whosoever, therefore resisteth the power, resisteth the ordinance of God: and they that resist shall receive to themselves damnation.
"For rulers are not a terror to good works, but to the evil. Wilt thous then not be afraid of the power? Do that which is good and thou shalt have praise of the same:
"For he is the minister of God to thee for good. * * *
"Wherefore ye must needs be subject; not only for wrath, but also for conscience’ sake. * * *
"Render, therefore, to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour.”
Matthew 22:19-21:
"Shew me the tribute money. And they brought unto him a penny.
"And he saith unto them, whose is this image and superscription?
"They say unto him, Caesar’s. Then saith he unto them, render therefore unto Caesar the things which are Caesar’s; and unto God the things that are God’s.”
These verses clearly delineate a Christian’s responsibility to obey his government, except where there is direct conflict with his obedience to God. No such conflict appears in the record of this case.
The safety of children is important to our government and equally important to Christians. The requirements for safety are there. They do not conflict with Christian principles. Therefore, Christians must comply with the fire and safety regulations which are applicable to all schools and which are applied equally to all schools.
Did the circuit court err in admitting into evidence photographs of the doors to the building? This Court finds that the photographs were admitted in error and that the court abused its discretion in admitting the photographs. There was an insufficient showing of relevancy for their admission as required under MRE 402. While the admission of these photographs was error, the error was harmless. The error did not prejudice the defendant’s case and is not a cause for reversal. State Highway Comm v Cronenwett, 52 Mich App 109; 216 NW2d 597 (1974). The record does not support or indicate that the photographic evidence played any role in its decision. A careful review of the record shows that, after the pictures were admitted into evidence, no further evidence was introduced concerning them.
All the cases cited by the appellants in this area deal with the definition of a church, worship practices, and definitions of what activity is to be included within the province of a church. They also deal with state actions attempting to prohibit, restrict, or infringe on the religious activities of a church.
This Court concedes and agrees that the term church should be broadly interpreted, as has been made evident by the cited cases. However, this does not preclude the state from becoming involved where a compelling state interest exists. The safety of a state’s citizens, including children, is a compelling state interest, permitting intervention under its police powers. However, such governmental actions are to be carefully weighed and closely scrutinized by our courts to prevent governmental misuse. We must recognize that the definition of a church and its activities does not permit a carte blanche use of the property and its activities without any governmental scrutiny or controls of any kind. What is to be prevented is the willful promulgation of rules and regulations by the state interfering with legitimate religious practices. These First Amendment rights must be jealously guarded and protected.
However, reasonable safety rules and regulations do not conflict with legitimate religious freedoms.
The finding of the circuit court that the defendant must build a storage closet for combustible materials which do not exist is reversed.
As to the findings of the circuit judge regarding the stairs, platforms, or landings in the buildings and the fire alarm violations, the evidence was inconclusive as to whether or not the defendant had complied with the fire marshall’s directives. Therefore, the matter is remanded to the circuit court to take additional testimony which will enable it to make a definitive ruling.
As to the remaining two violations, the findings of the circuit court are affirmed.
No costs, a public question being involved.
Mackenzie, J., concurs in result only. | [
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Per Curiam.
Plaintiff appeals from a circuit court opinion of July 10, 1979, and order of August 2, 1979, which granted summary judgment in favor of defendant in plaintiff’s declaratory judgment action. The issue raised on appeal was whether the Legislature intended that § 3109(1) of the Michigan no-fault insurance act, MCL 500.3109(1); MSA 24.13109(1), apply to medical and disability benefits which the plaintiff received from the Army and Veterans’ Administration as a result of the automobile accident. We find that the Legislature clearly intended the section to apply to such benefits. O’Donnell v State Farm Mutual Automobile Ins Co, 404 Mich 524; 273 NW2d 829 (1979), Beaver v Auto-Owners Ins Co, Inc, 93 Mich App 399; 286 NW2d 884 (1979).
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Per Curiam.
This Court, on February 3, 1981, in a published opinion, decided People v Spearman, 103 Mich App 398; 303 NW2d 23 (1981), Judge Bronson dissenting. In the decision, we held that the second offender punishment provision of the felony-firearm statute, MCL 750.227b(1); MSA 28.424(2X1), is applicable in cases of simultaneous felony-firearm convictions. Accordingly, we entered a remand order for resentencing on all of defendant’s March 22, 1978, convictions.
Shortly thereafter, the Michigan Supreme Court decided People v Sawyer, 410 Mich 531; 302 NW2d 534 (1981). The Supreme Court held, inter alia, that the Legislature must have intended that the five-year term of imprisonment for a second conviction of felony-firearm be imposed only where the second offense is subsequent to the first conviction.
In light of the holding and rationale set forth in Sawyer, supra, we, sua sponte, rescind our remand order for resentencing in Spearman, supra. In lieu thereof, we reinstate and affirm the sentencing judge’s sentences. | [
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M. J. Kelly, J.
Defendant appeals as of right from his conviction and sentence on three counts of first-degree murder, contrary to MCL 750.316; MSA 28.548, following a bench trial concluded December 19, 1977. On April 17, 1978, defendant was sentenced to the mandatory three concurrent terms of life imprisonment.
On October 10, 1977, defendant was hunting with a companion, Theodore Kryzaniak, in the Dice Lake area of Saginaw County. Defendant was armed with a Huntmaster .22-caliber pump action rifle and a Puma Werk hunting knife. After entering a wooded area, the two men proceeded to their respective hunting blinds. While seated in his blind, Kryzaniak heard several shots emanating from the direction of defendant’s blind. Kryzaniak proceeded to the defendant’s blind, where he discovered two dogs which had been shot. The defendant admitted he shot the dogs.
At about 5:30 p.m., Kryzaniak and the defendant took a walk up to Dice Lake, where they observed a woman (later identified as Jeanne Gehrcke) and two small children preparing to fish. Upon finishing the walk, Kryzaniak returned to his blind. Defendant said he preferred to hunt in a different area and proceeded in a northerly direction away from the location of his blind. At about 6 p.m. defendant was seen by three persons, who testified defendant was approaching the small peninsula from which the woman and two children were fishing. Kryzaniak later heard a single gunshot north of the area of his blind. Approximately one hour later, Kryzaniak proceeded to defendant’s blind, to which defendant had returned. The two men then went home. At 5 p.m. the next day, the bodies of the woman and her two children were found near a small dirt fireroad near the lake. The woman had been shot in the back of the head, sexually assaulted and her throat slashed. The boys were each found stabbed in the chest and their throats had been slashed.
Prior to trial, the defendant was examined by four expert psychiatric witnesses, two for each side. The defendant’s statements to these experts disclosed the following specifics regarding the three murders. Defendant said that he had been walking behind Jeanne Gehrcke as she was leaving the Dice Lake area and had been toying with the idea of having sex with her. He had the urge to shoot something, so he flipped off the safety of his rifle and shot Mrs. Gehrcke in the back of the head. He dragged her off to the side of the road and had intercourse with her. He killed the boys so there would be no surviving witnesses and slashed Jeanne Gehrcke’s throat either in an attempt to conceal the true cause of her death or to make sure that she was dead.
At trial, defense counsel admitted that defendant perpetrated the three homicides, but argued that the defendant did not at the time exhibit sufficient malice, intent or premeditation necessary for first-degree murder. Defendant’s expert psychiatric witnesses asserted that defendant had panicked during the murders and had acted impulsively and without premeditation. They did not, however, testify that defendant was insane or had acted out of an irresistable impulse.
In its findings of fact, the trial court rejected the defense witnesses’ testimony. The court concluded that defendant intentionally murdered the three victims, that the murders were premeditated and deliberate and that defendant thought out and consciously reflected upon his decision to murder and the means to effect it. On appeal, the defendant raises five issues.
Defendant first argues that the trial court made insufficient findings of fact to support its verdict. (See Appendix A.) Specifically, defendant alleges that the trial judge made inadequate findings of fact on the elements of premeditation and deliberation. Defendant also asserts as error the trial judge’s failure to make factual findings on first-degree felony murder during commission of a rape, an offense for which defendant was charged in the alternative for the murder and sexual assault of Jeanne Gehrcke.
The adequacy of a trial court’s findings of fact is governed by GCR 1963, 517.1, which provides in relevant part:
"In all actions tried upon the facts without a jury or with an advisory jury, the court shall find the fact specially and state separately its conclusions of law thereon and direct the entry of the appropriate judgment. It will be sufficient if the court makes brief, definite, and pertinent findings and conclusions upon the contested matters without over elaboration of detail or particularization of facts.”
See People v Jackson, 390 Mich 621, 627; 212 NW2d 918 (1973). See also People v Bruce Ramsey, 89 Mich App 468; 280 NW2d 565 (1979), and People v Brooks, 75 Mich App 448, 450; 254 NW2d 926 (1977), for cases interpreting the Jackson finding of fact requirement as an application of the requirements of GCR 1963, 517.1 to criminal cases in accordance with the provisions of GCR 1963, 785.1(1). In 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 594, the authors suggested an oft-quoted analysis of the rule’s mandate:
"The findings must disclose the basis for each ultimate fact necessary to sustain the court’s conclusions of law. But a mere recital of the conclusory facts which constitute the elements of the cause of action or defense will often be too general and not specific enough. Findings that defendant was 'negligent’ and that plaintiff was not 'contributorially negligent,’ unsupported by more specific factual findings, would not satisfy the purpose of the rule.
"The findings of fact must include as much of the subsidiary facts as is necessary to disclose the steps by which the trial court reached its ultimate conclusion on each factual issue. The findings should be made at a level of specificity which will disclose to the reviewing court the choices made as between competing factual premises at the critical point that controls the ultimate conclusion of fact. That is, at the point where a given choice as to the concrete facts leads inevitably to the ultimate conclusion, the findings should disclose the choice which was made, so that the appellate court may test the validity of its evidentiary support.”
See also People v Robert Jackson (After Remand), 63 Mich App 249, 253; 234 NW2d 471 (1975), and People v Stanford, 68 Mich App 168, 174; 242 NW2d 56 (1976), applying the same suggested analysis to findings of fact in criminal cases.
Exclusive to a finding of guilt for first-degree murder are the elements of premeditation and deliberation. MCL 750.316; MSA 28.548, People v Germain, 91 Mich App 154; 284 NW2d 260 (1979). The testimony at trial was conflicting as to these elements. We do not, however, find the trial court’s factual findings insufficient. The trial judge concluded that defendant thought out in advance and consciously reflected on his intent to murder the victims and the means to accomplish the acts. The trial judge also noted an adequate period of time over which the defendant’s plan was established. These findings implicitly reject defendant’s claim that his acts were the result of a sudden impulse. As such, the lower court’s conclusion in favor of that evidence suggesting a carefully planned, deliberate series of acts by the defendant is clear. We thus find no merit in the defendant’s claimed error.
Defendant also argues as error the trial judge’s failure to make specific findings on the alternate charge of felony murder during the commission of a rape. In Jackson, supra, 627, fn 3, the Supreme Court noted an exception to the requirements of GCR 1963, 517.1:
"A judge’s failure to find the facts does not require remand where it is manifest that he was aware of the factual issue, that he resolved it and it would not facilitate appellate review to require further explication of the path he followed in reaching the result as, for example, where the only factual issue is identification.”
Accord, People v Jackson, 81 Mich App 18; 264 NW2d 101 (1978). In his findings, the trial judge expressly noted that defendant was charged in the alternative with felony murder. The subsequent verdict finding defendant guilty of the first-degree murder of Jeanne Gehrcke necessitates a conclusion that the felony murder charge was resolved in favor of defendant. Thus, a remand for more detailed fact finding is not required.
Defendant next argues that the trial court had before it insufficient evidence to establish premeditation and deliberation and that the corpus delicti of the offense was not established. He claims that the only evidence suggestive of these required elements was the statements made to various expert witnesses who later testified regarding defendant’s mental capacity. Defendant correctly notes that the corpus delicti of first-degree murder must have been established independently of his out of court statements. People v Allen. 390 Mich 383; 212 NW2d 21 (1973). However, the defendant’s state of mind at the time of the murders must necessarily be inferred from surrounding facts and circumstances. People v Burgess, 96 Mich App 390; 292 NW2d 209 (1980. To establish premeditation and deliberation a court must find a lapse of time sufficient to have permitted the defendant an opportunity to take a "second look” at his contemplated actions. People v Tilley, 405 Mich 38, 45; 273 NW2d 471 (1979). In People v Meadows, 80 Mich App 680, 691; 263 NW2d 903 (1977), the Court described four factors indicating sufficient opportunity for a "second look”, including: (1) any prior relationship of the defendant and victim indicative of a motive, (2) the defendant’s actions prior to the murder, (3) the facts and circumstances of the killing, and (4) the defendant’s later conduct suggesting a scheme or plan. See also Burgess, supra, and Germain, supra.
Our review of the record shows that sufficient evidence was admitted, aliunde the defendant’s statements, to establish premeditation and deliberation. Upon first seeing Jeanne Gehrcke, defendant indicated a sexual interest in her. Defendant was also seen approaching the victims shortly before the killings were committed. To kill Mrs. Gehrcke defendant used both his rifle and a knife and committed a sexual assault on her. Thereafter, the defendant stabbed the two boys. Additionally, all three victims’ throats were slashed in a similar manner. Finally, the murders were accomplished in a remote area and subsequent attempts to conceal the bodies were made. Based upon these factors, it may be inferred that the defendant had sufficient time to take a "second look” at his intended acts. The claim that defendant "panicked” during the commission of his criminal acts does not detract from this conclusion. The evidence discloses that defendant planned his acts well in advance of their implementation. Also, the methodical manner in which the murders were committed belies any claim of panic or sudden impulse. Therefore, sufficient evidence of premeditation and deliberation was presented to uphold defendant’s first-degree murder conviction.
Defendant next urges reversible error in the trial court’s decision granting the prosecution’s pretrial motions for diagnostic examination of the defendant and for discovery of the reports prepared by the defendant’s psychiatric witnesses. Specifically, defendant contends that because he did not give notice of a proposed insanity defense under MCL 768.20a; MSA 28.1043(1), the prosecutor’s right to discover defense psychiatric reports or to subject defendant to examination by the state’s psychiatrist was foreclosed. MCL 768.20a(2), (6); MSA 28.1043(1)(2), (6).
The defense of diminished capacity has been found by this Court to be included in the definition of insanity, MCL 768.21a(1); MSA 28.1044(1)(1), People v Mangiapane, 85 Mich App 379, 395; 271 NW2d 240 (1978). As a result, a defendant proposing a diminished capacity defense is subject to the same prosecutorial rights of discovery and forensic examination as would arise from a formal claim of insanity. As stated by the Mangiapane Court:
"We find that the defense known as diminished capacity comes within this codified definition of legal insanity. We further find that psychiatric testimony on the issue of defendant’s capacity to form the specific intent comes within the codified definition of legal insanity. By thus categorizing defendant’s defense we do not preclude the admission of evidence supporting defendant’s claim that, although not legally insane, he lacks mental capacity to entertain the specific intent that is a necessary element of assault with intent to commit murder. But, we hold that defendant must give the notice required by the statute of intention to assert that defense. By so doing, defendant will submit herself to examination and evaluation by the Center for Forensic Psychiatry and by an independent psychiatrist selected by the prosecutor, if the prosecutor wishes. In short, we hold that if defendant chooses to avail himself of the defense that he here asserts, namely, that he lacks mental capacity to entertain the speciñc intent required as an element of the crime with which he is charged whether it be called the defense of diminished capacity or not, then full compliance must be had with §§ 20a, 29a and 36. ” (Emphasis added.)
We agree with this rationale, and find defendant’s proffered diminished capacity defense adequate to permit the prosecutorial discovery and examination required under §§ 20a(2) and 20a(6). Therefore, the prosecutor’s pretrial motions were not improperly granted.
Defendant’s fourth claim of error alleges an improper felony murder charge. He asserts that the information accusing him of murder "while in the perpetration or attempted perpetration of a rape”, charged an offense no longer cognizable under Michigan law. We note the recent Supreme Court decision in People v McDonald, 409 Mich 110; 293 NW2d 588 (1980), as dispositive of this issue. The defendant’s claim of error is thus without merit.
Lastly, defendant alleges reversible error in the trial court’s decision to admit testimony that defendant shot two dogs prior to the murders. Generally, evidence of a distinct unrelated criminal activity is not admissible at the trial of a defendant charged with commission of a different criminal offense, because such evidence tends to be used to convict a defendant for being a bad man and not for his actual conduct regarding the offense charged. People v Spillman, 399 Mich 313; 249 NW2d 73 (1976), People v Oliphant, 399 Mich 472; 250 NW2d 443 (1976), and People v DerMartzex, 390 Mich 410; 213 NW2d 97 (1973).
An exception to the general rule is found in MRE 404(b), which supersedes the prior similar acts statute, MCL 768.27; MSA 28.1050. MRE 404(b) provides:
"Evidence of other crimes, wrongs, or acts is not admissible to prove the character of a person in order to show that he acted in conformity therewith. It may, however, be admissible for other purposes, such as proof of motive, opportunity, intent, preparation, scheme, plan, or system in doing an act, knowledge, identity, or absence of mistake or accident when the same is material, whether such other crime, wrongs, or acts are contemporaneous with, or prior or subsequent to the crime charged.”
In People v Cramer, 97 Mich App 148, 155; 293 NW2d 744 (1980), the Court discussed the scope of this rule:
"However, the list of exceptions to the general rule found in MRE 404(b) is not exhaustive. No mechanical or fixed rule can encompass all of the possible reasons for which evidence of the defendant’s other bad acts might be admissible at the trial on an unrelated charge. Indeed, the language used in MRE 404(b) makes clear that the evidence may be admissible for any purpose other than to prove the character of a person in order to show that he acted in conformity therewith. The list of those 'other purposes’, e.g., motive, opportunity, intent, preparation, etc., must be viewed as examples, and not the exclusive grounds on which such evidence is rendered admissible as an exception to the general rule. People v Fisher, 77 Mich App 6, 11; 257 NW2d 250 (1977), lv den, 402 Mich 811 (1977). See e.g. People v Nawrocki, 376 Mich 252, 255; 136 NW2d 922 (1965).”
When sought to be admitted, similar acts evidence must exhibit four essential factors: (1) there must be substantial evidence showing defendant committed the bad act, (2) the bad act must tend to prove a purpose permitted under the rule, (3) the purpose must be in issue, and (4) the probative value of the evidence to be admitted must outweigh its prejudicial effect. People v Rohn, 98 Mich App 593; 296 NW2d 315 (1980), People v Wilkins, 82 Mich App 260; 266 NW2d 781 (1978), lv den 406 Mich 857 (1979).
Applying the above standards, it is apparent that the similar act evidence herein was properly admitted as bearing upon the critical issue of defendant’s state of mind in the hours before the murders. Additionally, presentation of such evidence in a nonjury trial does not carry with it the risk of prejudice presented by admission before a jury. We thus conclude that admission of the defendant’s prior bad act was not error.
Affirmed.
Appendix A
At the close of trial, the trial judge entered the following findings of fact:
"The Court: This is a verdict in the case of the People of the State of Michigan versus Ralph John Gilbert.
"Let the record reflect that this cause came on to be heard without a jury, the defendant having waived his constitutional right to jury trial in writing in open court. Defendant Ralph John Gilbert is charged in Count I with the crime of murder in the first degree under alternate theories and the law insofar as it applies to Count I of the Information states that all wilful, deliberate and premeditated murder shall be murder in the first degree; and, further, that any murder committed in the perpetration or attempt to perpetrate a rape shall be murder in the first degree.
"Defendant Ralph John Gilbert is charged in Counts II and III of the Information with murder in the first degree and the law insofar as it applies to Counts II and III states that all wilful, deliberate and premeditated murder shall be murder in the first degree.
"The Court having considered the testimony of the witnesses and having determined their credibility and the weight to be given their testimony and after having examined certain exhibits received during the course of the trial finds the following: The Court finds that the People have proved beyond a reasonable doubt that Jeane [sic] Verna Gehrcke, Mark Gehrcke and Keith Gehrcke all died on October 27, 1976 in Thomas Township, Saginaw County, Michigan, and that the defendant, Ralph John Gilbert, directly caused the deaths of Jeane [sic] Verna Gehrcke and Mark Gehrcke and Keith Gehrcke. Specifically, the Court finds that the People have proved beyond a reasonable doubt that the defendant, Ralph John Gilbert, intentionally shot and killed Jeane [sic] Verna Gehrcke and cut her throat.
"The Court finds that the People have proved beyond a reasonable doubt that the defendant, Ralph John Gilbert, intentionally and fatally stabbed both Mark Gehrcke and Keith Gehrcke and cut the throats of both of them.
"The Court further finds that the People have proved beyond a reasonable doubt that the defendant, Ralph John Gilbert, caused the death of Jeane [sic] Verna Gehrcke, Mark Gehrcke and Keith Gehrcke without justification, excuse or mitigation.
"The Court finds beyond a reasonable doubt that the defendant, Ralph John Gilbert, consciously and knowingly intended to kill Jeane [sic] Verna Gehrcke and Mark Gehrcke and Keith Gehrcke and that the defendant did, in fact, kill them.
"The Court further finds as to Count I of the Information that the People have proved beyond a reasonable doubt that the murder of Jeane [sic] Verna Gehrcke was the wilful result of the Defendant Ralph John Gilbert’s premeditated and deliberate intent to kill her.
"The Court further finds that the People have proved beyond a reasonable doubt that the Defendant Ralph John Gilbert thought out beforehand his intent to kill Jeane [sic] Verna Gehrcke and that he consciously reflected upon his decision to kill her before he did so.
"The Court further finds that the People have proved beyond a reasonable doubt that the defendant, Ralph John Gilbert, consciously thought about killing Jeane [sic] Verna Gehrcke, considered the manner in which he could affect her death, that is by shooting her, and cutting her throat and that he consciously decided over a sufficient period of time under the law that he would kill her.
"Therefore, as to Count I of the Information, the Court finds defendant, Ralph John Gilbert, guilty of first degree murder.
"The Court further finds as to Count II of the Information that the People have proved beyond a reasonable doubt that the murder of Mark Gehrcke was the wilful result of Defendant Ralph John Gilbert’s premeditated and deliberate intent to kill him.
"The Court finds that the People have proved beyond a reasonable doubt that the defendant, Ralph John Gilbert, thought about beforehand his intent to kill Mark Gehrcke and that he consciously reflected upon his decision to kill him before he did so.
"The Court further finds that the People have proved beyond a reasonable doubt that the defendant, Ralph John Gilbert, consciously thought about killing Mark Gehrcke, considered the manner in which he would affect his death, that is by stabbing him and cutting his throat, and that he consciously decided over a sufficient period of time under the law that he would kill him.
"Therefore, as to Count II of the Information, the Court finds that the defendant, Ralph John Gilbert, is guilty of murder in the first degree.
"The Court further finds as to Count III of the Information that the People have proved beyond a reasonable doubt that the murder of Keith Gehrcke was the wilful result of Defendant Ralph John Gilbert’s premeditated and deliberate intent to kill him.
"The Court further finds that the People have proved beyond a reasonable doubt that the defendant, Ralph John Gilbert, thought about beforehand his intent to kill Keith Gehrcke and that he consciously reflected upon his decision to kill him before he did so.
"The Court further finds that the People have proved beyond a reasonable doubt that the defendant, Ralph John Gilbert, consciously thought about killing Keith Gehrcke, considered the manner in which he would affect his death, that is by stabbing him and cutting his throat, and that he consciously decided over a sufficient period of time under the law that he would kill him.
"Therefore, as to Count III of the Information, the Court finds the defendant, Ralph John Gilbert, guilty of murder in the first degree.” | [
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Bronson, J.
Plaintiff, City National Bank of Detroit (CNB), issued an irrevocable letter of credit to defendant partnership, Westland Towers Apartments, in the amount of $250,947. When the partnership refused to pay back this amount, plaintiff instituted suit against the partnership, the partners, and the partners’ wives. Plaintiff contended that the partners and their wives were liable on personal guarantees. In an order issued by the Oakland County Circuit Court on July 29, 1978, summary judgment was granted in favor of defendants. The court found that CNB had improperly modified and extended the due date of the letter of credit on the signature of one partner who did not have authority to enter into the transaction without the consent of other partners. Plaintiff appealed that order. In an unpublished opinion re leased September 12, 1979, this Court remanded for additional findings of fact concerning a number of issues in controversy. The trial court issued an amended opinion and order, still denying plaintiff recovery. CNB appeals from this opinion and order as of right in docket number 49247.
Docket number 49955 involves a suit by the Granaders’ and Westland Tower’s attorney, Jerome Gropman, for payment of attorney fees arising out of his efforts on their behalf in the letter of credit controversy. This matter was submitted to arbitration, and the reasonable value of Grop-man’s services was assessed at $100,000. Some payments had already been made, and the Granad-ers and Westland Towers Apartments were ordered to pay an additional $33,000 by the arbitrator. On January 30, 1980, the trial court entered judgment based on the arbitration award. From this judgment, the Granaders appeal.
Factual Background
This action arises out of the construction by Westland Towers Apartments of a low and moderate income apartment project in Westland, Michigan, financed by a mortgage insured by the Federal Housing Administration. As part of the consideration for the FHA insurance of the loan, Westland Towers was required to supply additional security. This security took the form of letters of credit issued by CNB bearing numbers DI-208 through DI-211. It is the last of these, DI-211, which is the subject matter of this litigation.
On or about November 3, 1972, Westland Towers requested that CNB issue irrevocable letter of credit DI-211. This letter was delivered to J. M. Prentice Mortgage Company (Prentice), the holder of Westland Towers’ mortgage, pursuant to the terms of an escrow agreement. Although Prentice was the mortgagee, CNB purchased a 97% participation in the loan and supplied nearly all the funds used in the project.
Construction of the project was delayed. There were problems with cost overruns and disputes between the partners. Although completion of the apartments was originally scheduled for May, 1974, the project was not substantially completed until early 1975.
At the close of the construction phase of the project, "final endorsement” was sought by the FHA. Essentially, "final endorsement” is the stage at which FHA assures itself that the project is complete and all bills have been paid or arrangements have been made for payment. William Ris-man, one of the managing partners, instructed Prentice to seek an extension on the expiration date of DI-211, which was originally May 3, 1975. On April 25, 1975, Prentice was advised by CNB that the extension had been approved. However, appropriate amendment was not formalized at this time.
On May 8, 1975, Horace Rogers as attorney for the partnership, Jerome Gropman on behalf of the Granaders, and Joseph Kalk, the Rismans’ attorney, met with the area counsel for the Department of Housing and Urban Development and other interested persons for the purpose of final endorsement. The meeting was tension-filled, and differences between the Granaders and Rismans proved irreconcilable so Gropman left the meeting. Later that day, Gropman met with a representative of the bank and together they drafted a letter, which Gropman indicated he would advise the Granaders to sign. This letter provided that the Granaders would ratify extension of the due date on letter of credit DI-211. However, on May 9, 1975, the Gra-naders through another attorney, William Liber-son, demanded the release of CNB’s mortgage on ten acres of property near the project site as the quid pro quo for delivery of the signed letter. When CNB refused, Liberson left his meeting with the CNB representatives, taking with him the letter with the. Granaders’ signatures crossed out.
At approximately this same time, the Rismans and their attorney were pressing to complete the closing. Due to the ambiguous position of the Granaders and the partnership agreement, CNB requested that the partnership attorney give his opinion on the authority of the managing partners to execute the documentation needed for final endorsement. Rogers gave his written opinion stating that he believed the managing partners were empowered to finalize the business deal. Thereafter, William Risman for himself and by power of attorney for Robert Risman executed the request to amend the letter of credit and a promissory note in favor of CNB in the face amount of the letter of credit. The execution was officially stated as being on behalf of the partnership. The new expiration date on DI-211 became December 1, 1977.
If final endorsement had not occurred, Prentice would have assigned the mortgage to HUD (FHA), resulting in personal liability of the partners and their wives on letters of credit DI-208 through DI-210. Moreover, assignment of the mortgage would likely have caused the loss of the project through foreclosure by HUD.
On May 27, 1975, Prentice transferred DI-211 to the Government National Mortgage Association (GNMA). GNMA issued two sight drafts against letter of credit DI-211 in the aggregate total of $250,947. All defendants subsequently refused to reimburse CNB for the letter of credit.
Other facts will be developed in the discussion of the individual issues.
Docket No. 49247
I
Plaintiff first argues that William Risman had the authority to unilaterally enter into a binding agreement with it with respect to the extension of the expiration date of letter of credit DI-211. If this assertion is correct, the trial court erred in granting summary judgment.
The original letter of credit provided that expiration would occur on May 3, 1975. Oral consent to an extension was obtained by CNB from William Risman prior to this date. Plaintiff first argues that Risman’s oral consent to the extension was sufficient to bind the partnership.
MCL 440.5106(2); MSA 19.5106(2) provides:
"Unless otherwise agreed once an irrevocable credit is established as regards the customer it can be modified or revoked only with the consent of the customer and once it is established as regards the beneficiary it can be modified or revoked only with his consent.”
Plaintiff argues that a request for a "renewal” of credit or extension of a letter of credit’s expiration date is a request for a modification calling into play MCL 440.5106(2); MSA 19.5106(2). We agree with plaintiff that MCL 440.5106(2); MSA 19.5106(2) does not require written consent signed by the customer to result in a valid and binding extension. Acceptance of this premise, however, does not dispose of the question of whether the "customer” consented to the extension of the letter of credit. The customer here was not Risman, but the Westland Towers partnership.
CNB relies on the following provision from the Uniform Partnership Act for the proposition that irrespective of Risman’s actual authority, his acts in renewing the letter of credit were nonetheless binding on the partnership:
"Every partner is an agent of the partnership for the purpose of its business, and the act of every partner, including the execution in the partnership name of any instrument, for apparently carrying on in the usual way the business of the partnership of which he is a member binds the partnership, unless the partner so acting has in fact no authority to act for the partnership in the particular matter, and the person with whom he is dealing has knowledge of the fact that he has no such authority.” MCL 449.9(1); MSA 20.9(1).
Initially, we note our disagreement with the lower court on the issue of whether obtaining the extension on letter of credit DI-211 was within the usual course of business. We hold that it was. The more difficult problem with allowing CNB to rely on MCL 449.9(1); MSA 20.9(1) is caused by the last clause of this provision which would divest CNB of the right to rely on Risman’s acts if it had knowledge of the fact that he had no authority to unilaterally agree to the extension of the letter of credit.
This "knowledge” proviso requires an examination of the pertinent portions of the partnership agreement of which CNB concededly was aware.
"EXECUTION OF PARTNERSHIP CONTRACT
"10. All contracts, agreements and other instruments to which the partnership may be a party shall be signed in the partnership name by any two of the following:
WILLIAM RISMAN, ROBERT RISMAN or DON HORACE, and CHARLES GRANADER or HARRY GRA-NADER.
"MANAGING PARTNERS
"11. WILLIAM RISMAN and ROBERT RISMAN are hereby designed as the managing PARTNERS in whom the parties hereto vest the direct responsibility for the management of the partnership business, including the right and power in their sole and uncontrolled discretion to:
"(b) borrow money for the partnership upon such terms and conditions as they may deem necessary in the conduct of the partnership business, and evidence such borrowing by the execution and delivery in the name of and on behalf of the partnership of indebtedness;
"Any action by the managing PARTNERS may be taken by the consent of a majority of the managing PARTNERS, and any checks, contracts or other instruments may be executed by the managing PARTNERS on behalf of this partnership only when signed in the manner heretofore provided.”
We have no quarrel with the lower court’s conclusion that paragraph 10 of the partnership agreement is properly interpreted as requiring one signature from William or Robert Risman or Don Horace and a second signature from Charles or Harry Granader to result in a valid execution of a contract on behalf of the partnership. However, when paragraph 10 is construed with paragraph 11, an ambiguity is apparent. Paragraph 11 provides in part that William and Robert Risman have "sole and uncontrolled” discretion to borrow money for the partnership and to execute instruments evincing any indebtedness on behalf of the partnership. Paragraph 11 of the partnership agreement then goes on to state that any instruments executed by the managing partners must be "signed in the manner heretofore provided”. This is ostensibly a reference to the signing requirement imposed by paragraph 10. However, the signature requirement is seemingly in conflict with the "sole and uncontrolled” discretion language of paragraph 11.
A partnership agreement is a contract. Where an ambiguity exists in a contract, it is to be construed to give effect to all portions of the agreement if this is possible. Associated Truck Lines, Inc v Baer, 346 Mich 106, 110; 77 NW2d 384 (1956). In the case sub judice, the seemingly conflicting portions of paragraphs 10 and 11 can be construed consistent with each other. That is, while the partnership agreement requires one signature from each of two groups of partners, if the managing partners determine that a particular contract shall be entered into, the two general partners have no discretion to refuse to sign the applicable instrument, assuming the instrument represents a legal obligation under the law and partnership agreement. The contractual provisions in issue evince an intent on the part of the partnership: (1) to give operating control to the Ris-mans and (2) to make certain that the Granaders were kept fully informed of all material transactions involving partnership business. By requiring one signature from the Granaders, this purpose was sought to be effectuated. If the Granaders disagreed with a decision of the Rismans, the signature requirement gave them an opportunity to attempt to persuade them to adopt another course of action. If the Rismans attempted to enter into an illegal contract, the Granaders could refuse to give their signatures. As noted earlier, the Rismans and Granaders were unable to work amicably together by the time the final endorsement phase of the project arrived. It is possible that the two groups were somewhat leery of each other from the beginning of the project, and this explains why the partnership agreement was drafted as it was.
In the instant case, obtaining an extension of letter of credit DI-211 was undoubtedly within the scope of the authority of the managing partners pursuant to paragraph 11(b) of the partnership agreement. As such, the Granaders had no legal right to refuse to sign the consent to extend the letter of credit’s expiration date. This does not necessarily mean, however, that CNB could extend the expiration date of the letter of credit on the authority of the managing partners alone. Indeed, we hold that this avenue of operation was not open to CNB if it had knowledge of the managing partners’ disability to execute an instrument on their own signatures. The Granaders’ wrongful refusal to sign the agreement would merely have given the Rismans a cause of action to compel the signature of one or the other of them or to obtain a court order allowing the transaction to proceed on the authority of the managing partners alone. We are not unmindful of the time constraints faced by the Rismans in this case. However, if they were unsuccessful in obtaining an expedited review of their cause so that the benefits of the project were lost, they would have had a cause of action against the Granaders for breach of the partnership agreement.
We now turn, to a discussion of whether CNB had knowledge of William Risman’s lack of authority to execute the contract extending the time at which DI-211 expired. It is clear that plaintiff bank did not possess knowledge of Risman’s lack of authority as the term "knowledge” is generally used. That is, from the bank’s perspective, William Risman’s authority was unclear. However, the term knowledge as used in the Uniform Partnership Act has a special meaning. MCL 449.3; MSA 20.3 provides:
"(1) A person has knowledge of a fact within the meaning of this act not only when he has actual knowledge thereof, but also when he has knowledge of such other facts as in the circumstances shows bad faith;
"(2) A person has notice of a fact within the meaning of this act when the person who claims the benefit of the notice:
"(a) States the fact to such person, or
"(b) Delivers through the mail, or by other means of communication, a written statement of the fact to such person or to a proper person at his place of business or residence.”
Under the definitions of knowledge appearing above, we agree with the trial court that plaintiff bank did have sufficient knowledge of Robert Ris-man’s lack of authority so that it may not claim the benefits of MCL 449.9(1); MSA 20.9(1).
CNB engaged in a course of conduct evincing bad faith and tending to show that it at least doubted William Risman’s authority to extend the expiration date of the letter of credit on May 9, 1975, six days after DI-211 had originally expired. Plaintiff bank apparently believed that its legal position would be enhanced if Risman had merely "renewed” the letter of credit prior to its expiration, as opposed to having entered a new contract for its extension after expiration. Consequently, CNB had William Risman sign a request for an extension of DI-211 in the amount of $250,947 on May 9, 1975, but dated May 3, 1975, along with an undated promissory note. During discovery, the backdating was not forthrightly brought to defendants’ attention. Rather, counsel for Westland Towers ultimately ferreted out this fact through his own perseverance. The "other facts” showing bad faith within the meaning of MCL 449.9(1); MSA 20.9(1), then, were acts actually committed by CNB.
In addition, MCL 449.3(2); MSA 20.3(2) precludes CNB from claiming a lack of knowledge of William Risman’s authority. CNB had a copy of the partnership agreement, and its own actions clearly reveal that it doubted Risman’s authority under this contract. More importantly, CNB was aware that the Granaders considered one of their signa tures imperative for the execution of any valid instrument on behalf of the partnership.
Since we conclude that the partnership agreement did not allow any instrument or contract to be entered into without one signature from the Risman group and one signature from a Granader, and since we conclude that CNB had knowledge of this requirement so that CNB cannot recover on the letter of credit, we do not address the validity of the power of attorney executed by Robert Ris-man on behalf of William Risman.
II
Plaintiff next argues that if Westland Towers is not liable for the letter of credit, then William Risman, Robert Risman, and Donald Horace are. CNB contends MCL 449.16(1); MSA 20.16(1), concerning partners by estoppel, is dispositive of this issue. Defendants deny that MCL 449.16(1); MSA 20.16(1) has any applicability to this case, contending that the provision applies only to persons representing themselves as members of a partnership when, in fact, they are not members.
Plaintiff refers us to no cases which would indicate that the statutory provisions concerning partnership by estoppel apply in this cause and we find no cases supporting this proposition. It seems clear to us that MCL 449.16; MSA 20.16 only applies to a nonpartner representing himself as a member of a partnership. See, 18 Michigan Law & Practice, Partnership, § 3, pp 323-324, in which the commentary on MCL 449.16; MSA 20.16 assumes that this section is only germane where there is not a partnership in fact.
Although MCL 449.16; MSA 20.16 is not material to the resolution of this issue, the three part ners in issue might be estopped from denying liability for letter of credit DI-211 under the general doctrine of equitable estoppel. To establish equitable estoppel CNB must prove that defendants by their words, conduct or inaction induced it to believe certain facts, that it justifiably relied on the existence of these facts and acted on a belief that the facts were as represented, and would be prejudiced if defendants were allowed to deny the existence of these facts. American Electrical Steel Co v Scarpace, 399 Mich 306, 308; 249 NW2d 70 (1976), Conel Development, Inc v River Rouge Savings Bank, 84 Mich App 415, 422-423; 269 NW2d 621 (1978), lv den 406 Mich 910 (1979).
While there is no doubt that CNB will be prejudiced if it cannot recover on the letter of credit, none of the other elements of estoppel are present. Defendants did not induce CNB to believe that William Risman had authority to bind the partnership on his signature alone. Plaintiff bank came to this conclusion after consulting the attorney for Westland Towers, not Risman’s personal attorney. CNB had the partnership agreement in its possession at all times. The bank knew of the signing requirement and acknowledged its existence by negotiating with the Granaders to get a signature. When this failed, CNB attempted to circumvent the partnership agreement on this requirement. Until the dispute over the extension of letter of credit DI-211, all partners’ conduct impliedly recognized that Risman alone or in conjunction with his brother and/or Donald Horace could not bind the partnership. The record indicates that William Risman was just as uncertain as the bank as to the scope of his authority to act alone or in combination with his brother, Robert. Where all material facts are known to all the parties to a transaction, and there exists a mutual mistake of law as to the authority of the principal, said principal cannot be bound on an estoppel theory. Annis v Pfeiffer, 278 Mich 692, 696; 271 NW 568 (1937), Cudahy Brothers Co v West Michigan Dock & Market Corp, 285 Mich 18, 26; 280 NW 93 (1938). Since CNB was not induced by the defendants Risman and Horace to believe that a certain set of facts existed, there was no reliance on their words or conduct. Where there is no reliance, there can be no estoppel. AAMCO Automatic Transmissions, Inc v Motor Trans, Inc, 45 Mich App 539, 547; 207 NW2d 156 (1973), lv den 389 Mich 817 (1973).
On the stipulated facts, there was no genuine issue as to any material fact. On the facts as agreed to by the parties, defendants were entitled to a judgment as a matter of law. GCR 1963, 117.2(3).
Ill
Plaintiff lastly contends that it should be allowed to recover on a theory of unjust enrichment. A contract implied in law or quasi-contract does not require a meeting of minds but is imposed by fiction of law to avoid unjust enrichment. Casca-den v Magryta, 247 Mich 267, 270; 225 NW 511 (1929), City of Auburn v Brown, 60 Mich App 258, 263; 230 NW2d 385 (1975).
The question which we must resolve, then, is whether there was unjust enrichment of the individual partners and the partnership. To support an action on this theory, the controlling equities must favor the party claiming to have been injured. Maryland Casualty Co v H A Moss & Son, Inc, 276 Mich 219, 230; 267 NW 819 (1936). Maryland Casualty Co also indicates that generally the injured party’s negligence or misconduct will bar recovery on a quasi-contractual theory. This proposition is in accordance with commentary appearing in the Restatement Restitution, § 15, p 62, which states that the party claiming injury is not entitled to restitution where he was aware of all the facts at the time he extended the benefit. The trial court found that the "plaintiff bank assumed the risk of loss” because of its knowledge of the partnership agreement before it extended the expiration date of the letter of credit. We agree. CNB would have us believe that out of the goodness of its corporate offices it allowed the letter of credit to be extended to save the partnership from certain ruin. The reality is something else again. Plaintiff bank’s decision to extend the letter of credit was apparently motivated by its own self-interest. Without the extension of the letter of credit, CNB was certain to suffer financial losses. It would have had to assign the loan to FHA or begin foreclosure proceedings at a time when Westland Towers was experiencing a 50% occupancy rate. CNB gambled that its decision to extend the letter of credit on William Risman’s authority would be held to bind the partnership. Now, on appeal, as an alternative theory of recovery, the bank argues that if the partnership was not bound, it nonetheless must be allowed to recover to avoid unjust enrichment of defendants. However, we see no injustice to CNB by refusing to allow recovery on this theory where it is clear that CNB was running a calculated risk in extending the expiration date of the letter of credit. Incredibly, at the point at which CNB decided to go ahead with the extension it never sought assurances from its own counsel on the likely legal effect of this course of action. This could properly be deemed negligent conduct and, in conjunction with the underlying motivation of the bank in extending the due date of the letter of credit, the equities do not support the conclusion that CNB must be reimbursed.
From the stipulated facts, the trial court correctly concluded that CNB was not entitled to the relief requested. GCR 1963, 117.2(3).
Docket No. 49955
This appeal concerns a fee dispute arising between the Granaders and their onetime attorney, Jerome Gropman, for work completed in connection with the Westland Towers controversy. On October 10, 1979, Gropman filed a motion seeking $9,020.70 in attorney fees beyond what he had already been paid. The Granaders denied Grop-man was their attorney. At this time, this sum was held in escrow by Lawrence Stockier in accordance with the agreement of the parties, pending arbitration as agreed to by the parties. The parties had intended the Detroit Bar Association to adjudicate the matter. However, they later found out that the association had no mechanism for resolving such disputes. Thus, upon stipulation of the parties, the trial court ordered arbitration to de termine the "reasonable value of fees due Jerome C. Gropman for legal services”. Prior to arbitration, the Granaders moved to set aside the order to arbitrate. This order was denied.
On November 7, 1979, the arbitrator ruled in Gropman’s favor. He was awarded an additional $33,000 in fees. On December 4, 1979, the Granad-ers moved to vacate the award, contending the arbitrator had exceeded the scope of his authority. On January 30, 1980, the motion was denied and judgment was entered in the amount of $33,000 along with costs of $1,150 and interest.
The Granaders raise three issues on appeal. However, only the claim that the arbitrator exceeded the authority granted him by the order of arbitration and related matters merits discussion.
GCR 1963, 769.9(l)(c) empowers the court to set aside an arbitration award where the arbitrator has exceeded his authority. The agreement of arbitration entered into between the parties sets the parameters of the arbitrator’s authority. Stowe v Mutual Home Builders Corp, 252 Mich 492, 497; 233 NW 391 (1930), Waterford Ass’n of Educational Secretaries v Waterford School Dist, 95 Mich App 107, 110; 290 NW2d 97 (1980), lv den 408 Mich 955 (1980).
The Granaders argue that the arbitrator exceeded his authority when he awarded Mr. Grop-man more than the $9,020.70 being held in escrow by Stockier. This is arguable and could be resolved either way. The arbitration order refers to fees due Gropman for legal services associated with this matter prior to September 26, 1979. The due balances which Gropman had submitted to the Gra-naders in two billings he sent to them in September, 1979, requested payment in the combined amount of $9,020.70. The use of the term "due” could be construed as limiting the scope of the arbitrator to amounts actually billed. On the other hand, other language in the order of arbitration seems to extend to the arbitrator broad power to award any amount for attorney fees which it deemed reasonable.
We find it unnecessary to determine which interpretation of the contract to arbitrate is the more reasonable. We are convinced that even if the contract had not used the term "due”, the arbitrator’s award would have to be reduced because it is obvious that — regardless of the literal words of the contract — the parties intended that the scope of the arbitration extend only to the $9,020.70. If the contract literally gave the arbitrator the power to grant more than that sum as an attorney fee award, then it must be reformed due to a mutual mistake of the parties. See Baas v Zinke, 218 Mich 552, 554-555; 188 NW 512 (1922), City of Warren v Maccabees Mutual Life Ins Co, 83 Mich App 310, 314-315; 268 NW2d 390 (1978), lv den 405 Mich 845 (1979). It is clear to this Court from the oral arguments that both sides in this dispute were surprised by the arbitrator’s decision to award $33,000. To effectuate the true intentions of the parties, we reduce the attorney fee award to $9,020.70, which is the maximum sum the parties intended to be awarded to Mr. Gropman. There is no need to remand this case for further proceedings since it is obvious that if the arbitrator believed $33,000 was the reasonable value of Grop-man’s services, he would award the maximum allowable fee of $9,020.70. The costs awarded Gropman in the amount of $1,150 remain undis turbed. Interest is to be computed on the reduced sum.
Docket No. 49247 is affirmed and defendants may tax costs. Docket No. 49955 is affirmed as modified with no costs, neither party having prevailed in full.
Bashara, J., concurred.
In view of the provisions of paragraph 10 of the partnership agreement, we reject CNB’s contention that Risman could orally request an extension of letter of credit DI-211 and thereby bind the partnership. Paragraph 10 provides that any instrument to which the partnership becomes a party "shall” have two signatures. Shall denotes a mandatory action. Thus, although article 5 of the UCC does not require written consent to result in a valid and binding extension of the letter of credit, paragraph 10 of the partnership agreement did.
The Rismans do not have any cause of action based on the Granaders’ wrongful refusal to execute the extension of DI-211 at this time. Because of plaintiffs decision to extend the expiration date of the letter of credit without a Granader signature, the Rismans were not harmed by the improper refusal to sign. Additionally, CNB would have no cause of action against the Granaders based on a third-party beneficiary theory, because the partnership agreement does not evince an intent to compensate others for damages caused by a breach of this contract. See, In re Winter’s Estate, 297 Mich 294, 301-303; 297 NW 497 (1941), St Gabriel Parish Credit Union v Barnett Pontiac, Inc, 16 Mich App 1, 5-6; 167 NW2d 459 (1969), Barnett v International Tennis Corp, 80 Mich App. 396, 408-409; 263 NW2d 908 (1978). While this conclusion may seem harsh, it must not be forgotten that CNB had a copy of the partnership contract before it committed any money to the project. If CNB viewed the terms of the agreement as ambiguous or potentially disasterous for its own interests it could have declined to fund the project or insisted upon modifications of the partnership agreement. However, having decided to extend the partnership capital with full awareness of the terms of the partners’ contract, CNB is bound by the terms of this agreement relative to the scope of authority of individual partners.
CNB also comes to this Court with unclean hands such that the lower court would be entitled to grant summary relief. The clean hands maxim has been held to be an integral aspect of any action based in equity. Stachnik v Winkel, 394 Mich 375, 382; 230 NW2d 529 (1975). As noted in part II of this opinion, CNB actually had William Risman backdate documents to enhance its legal position. Then, during the discovery stage of this cause, the bank was less than forthright about bringing this fact to the attention of defendants. Plaintiff’s actions cast serious aspersions on its contention that it believed William Risman, with his brother’s power of attorney, had the authority to extend the letter of credit after its expiration date. While CNB’s known actions only directly affect certain of the legal issues raised on appeal, its willingness to engage in deceptive practices in this transaction is apparent, and it may be that other undetected deceptions were engaged in by the bank.
Although an order of arbitration was entered by the trial court, it was upon stipulation of the order’s content as to both form and substance by all parties. As such, the arbitration order really represents a contract to arbitrate. | [
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M. F. Cavanagh, J.
Defendant was convicted in a trial without a jury of felony-nonsupport in violation of MCL 750.165; MSA 28.362. He was sentenced to five years probation with the first six months to be served in the county jail, fined $100, assessed costs of $500, and ordered to pay $200 a month restitution. He appeals as of right.
The statute under which defendant was charged states, in pertinent part:
"Where in any decree of divorce, or decree of separate maintenance granted in this state, or by order entered during the pendency of any such proceedings, if personal service is had upon the husband or upon the father of any minor child or children, under the age of 17 years, or such husband or father shall have entered an appearance in such proceedings either as plaintiff or defendant, the court shall order such husband to pay any amount to the clerk or friend of the court for the support of any wife or former wife who by reason of any physical or mental affliction is unable to support herself, or father to pay any amount to the clerk or the friend of the court for the support of such minor child or children, and said husband or father shall refuse or neglect to pay such amount at the time stated in such order and shall leave the state of Michigan, said husband or father shall be guilty of a felony * * (Emphasis added.)
Although this Court must construe statutes to avoid constitutional questions, the plain and unambiguous language of this provision prevents us from interpreting the statute to apply to both men and women. The statute clearly applies only to "husbands” and "fathers”. Wives and mothers subject to court orders to make child and spousal support payments and, therefore, similarly situated are not subject to the statute. This is an explicit gender-based classification. To withstand scrutiny under the Equal Protection Clause, this classification by gender must serve important governmental objectives and must be related substantially to the achievement of those objectives. Orr v Orr, 440 US 268, 279; 99 S Ct 1102; 59 L Ed 2d 306 (1979).
Any valid purposes served by this statute would be served equally or better by a gender-neutral statute. The fact that most persons subject to court orders to make child and spousal support payments are men is of no consequence, since each person charged under the criminal statute receives an individual hearing on the merits. A gender-neutral statute containing the same provisions would impose no special burden on the state nor would it frustrate the achievement of the objectives which underlie the present gender-based statute. The decision of the United States Supreme Court in Orr, supra, compels the conclusion that the statute is invalid as a violation of defendant’s right to equal protection of the laws under both the federal and state constitutions. US Const, Am XIV, Const 1963, art 1, § 2.
We have reviewed the opinions of courts in other jurisdictions considering similar criminal nonsupport laws. California’s nonsupport law was struck down in Cotton v Municipal Court of the San Diego Judicial Dist, 59 Cal App 3d 601; 130 Cal Rptr 876 (1976). See also In re Aguilar, 80 Cal App 3d 58; 145 Cal Rptr 197 (1978). That court, however, applied the strict scrutiny test, requiring the state to show a compelling state interest for the discriminatory classification. The court held that, for purposes of equal protection analysis, sex was a suspect class and liberty interests were fundamental rights. The courts of this state have adopted neither position. People v McDonald, 409 Mich 110, 123; 293 NW2d 588 (1980), People v McDonald, 67 Mich App 64, 71; 240 NW2d 268 (1976). The California court’s analysis therefore is not analogous to that which we have undertaken above. The Cotton court did note, however, that a gender-free statute would serve better the purposes underlying the nonsupport statute.
In People v Elliott, 186 Colo 65; 525 P2d 457 (1974), the Colorado Supreme Court rejected an attack on that state’s criminal nonsupport statute. In doing so, the Court applied the rational basis test in its equal protection analysis and stated that the parental duty of support was still the primary responsibility of the father. The Court also held that the classification was not a gender-based one because it did not apply to all men. The analysis adopted by the Colorado Court can no longer be considered viable in light of the Supreme Court’s decision in Orr, supra, where the Court clearly rejected the use of gender-based classifications which carry the baggage of sexual stereotypes. The Supreme Court in Orr held that the expectation that the father primarily is responsible for the support of children is such a stereotype.
In State v Fuller, 377 So 2d 335 (La, 1979), the Louisiana Supreme Court overruled its prior decision in State v Barton, 315 So 2d 289 (La, 1975), and invalidated that state’s criminal abandonment statute. In doing so, the Court specifically relied on the decision and rationale in Orr, supra. The Court first rejected the argument that the classification recognized the realities of domestic relations as they presently existed in the state. The same argument had been rejected in Orr. The Court found that a gender-free statute would serve equally or better the purposes underlying the statute as written.
It is our view that the Louisiana Court, having the benefit of the Supreme Court’s decision in Orr, correctly decided Fuller, supra. We have applied the same analysis here. The gender-based classification contained in the statute here in question cannot be severed from the remainder of the statute and it thus renders the statute constitutionally invalid.
Defendant also claims that the statute is an unconstitutional infringement upon his right to travel. Men who neglect or refuse to make child support payments are punished by the statute only if they exercise their right to travel from state to state. A classification is contained in the statute which is based upon the exercise of the right to travel between states. Such a classification can be justified only by a compelling state interest. Memorial Hospital v Maricopa County, 415 US 250, 258; 94 S Ct 1076; 39 L Ed 2d 306 (1974). Similar nonsupport statutes have been held to infringe unnecessarily upon the right to travel. In re King, 3 Cal 3d 226; 90 Cal Rptr 15; 474 P2d 983 (1970), Helms v Jones, 621 F2d 211 (CA 5, 1980). Even a compelling state interest may be served only by means which do not burden unnecessarily the exercise of the right to travel. Without deciding the issue of the right to travel raised by defendant in light of the statute’s invalidity on other grounds, we note that a statute penalizing the exercise of the right to travel may be justified only by a compelling state interest and must be tailored carefully to avoid unnecessary infringement upon the right.
Reversed. | [
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Per Curiam.
Defendant was convicted by jury of murder in the second degree, MCL 750.317; MSA 28.549. He was sentenced to 10 to 20 years imprisonment to run concurrently with a sentence of 20 to 30 months for a probation violation. This Court granted defendant’s application for delayed appeal.
On November 5, 1978, Geneva Williams suffered a wound from a shotgun blast to her left arm; her arm subsequently required amputation. Thirty-nine days after she was wounded, the victim died. According to the medical examiner, death was due to a shotgun wound of the left arm, complicated by sepsis and pneumonia. Defendant was charged with murder in connection with the death of Geneva Williams.
In addition to the testimony of witnesses, who were present in the area at the time of the shooting, the people introduced a statement made by defendant to the police in which he admitted that he was holding a shotgun at the time it discharged, striking Geneva Williams in the arm. However, defendant stated that the gun had accidentally fired when he turned to ascend a flight of stairs and the gun hit the bannister.
Defendant offered the testimony of Robert Sil-lery, an expert in pathology, and, at the time, chief medical examiner for Oakland County. Dr. Sillery testified that he was capable of rendering an opinion as to the cause of death based upon an examination of medical records of a deceased without having actually examined the deceased. He stated that he examined the records of Geneva Williams and that in his opinion the cause of death was septicemia and bronchial pneumonia. He testified that because of the nature of the wound, unless surgical removal of the areas of contamination occurred within 48 hours, blood poisoning would set in. Defense counsel asked Dr. Sillery if he had a medical opinion as to whether the victim’s arm should have been amputated immediately. Over the prosecutor’s objection, the trial court allowed the doctor to state that the arm should have been amputated immediately. The doctor was also allowed to testify that, in his opinion, had the arm been removed immediately the victim would be alive today. Defense counsel attempted on a number of occasions to ask Dr. Sillery if in his opinion the attending surgeons acted in a grossly unskillful or negligent manner. The trial court ruled:
"The doctor can testify to his conclusions. He already made a conclusion. But as to what the degree of negligence was would not be drawn by the doctor.”
The general rule upon which defendant based his theory is that where a wound is not fatal, and the victim may have recovered, "grossly erroneous” medical treatment received by the victim resulting in death breaks the causal connection of an accused’s act and may exculpate him from guilt in the crime of homicide. See People v Flenon, 42 Mich App 457, 460-462; 202 NW2d 471 (1972), lv den 388 Mich 801 (1972), and cases cited therein. Mere "negligent” medical treatment is a foreseeable event, and will not suffice. Defense counsel was attempting to elicit an opinion from Dr. Sillery that the failure of the attending surgeons to promptly amputate the victim’s arm in the present case was "grossly erroneous”.
The question presented is whether, in light of MRE 704, which allows otherwise admissible expert opinion to embrace an ultimate issue of fact, the trial court improperly precluded Dr. Sillery from rendering his opinion that the attending surgeons’ failure to promptly amputate the victim’s arm was "grossly erroneous” or "grossly unskillful”.
We are obviously dealing with an "ultimate issue”. But that is not the end of our inquiry. The opinion of the doctor must be otherwise admissible. Particularly, the court must determine that the opinion "will assist the trier of fact to under stand the evidence or to determine a fact in issue”, MRE 702, and the opinion must not tend to mislead or confuse the jury. MRE 703. Generally, those jurisdictions which allow an expert to testify on an ultimate issue nevertheless preclude an opinion in the form of a legal conclusion. McCormick, Evidence (2d ed), § 12, pp 28-29.
This Court recently addressed the issue in terms of whether an expert could render his opinion that a defendant was or was not "mentally ill” or "insane” at the time of the alleged offense. In People v Drossart; 99 Mich App 66, 82; 297 NW2d 863 (1980), the Court stated that such testimony did not invade "the provinces of the judge and jury”. As stated by McCormick, supra, "invasion of the province of the jury” (or judge) is little more than rhetoric, and the real fears are that the jury will subordinate its own analysis to the opinion of the expert, or, as stated by Judge Allen in Dros-sart, the legal standard of the expert may be incorrect, incorrectly understood by the jury, or conflict with the trial court’s instruction. Drossart, pp 76-77. The Drossart opinion goes on to state that the latter dangers would not be present "if, in expressing his ideas and opinions on the matter, the witness refers to legal standards properly explained by the trial court or examining attorney”. Drossart, p 77.
The following statements in Drossart are pertinent to the issue presented in the present case:
"Accordingly, a witness is not permitted to tell the jury how to decide the case. Thus, a witness is prohibited from opining on the issue of a party’s negligence or nonnegligence, capacity or noncapacity to execute a will or deed, simple versus gross negligence, the criminal responsibility of an accused, or his guilt or innocence. "* * * However, where the expert’s particular training and experience in a special field of activity — such as the study of mental diseases — is largely unfamiliar to the jury, his opinion can be submitted for the jury’s consideration.” Drossart, 79-80. (Citations omitted.)
Thus, according to this Court’s decision in Dros-sart, it would appear that while a psychiatrist may testify that in his opinion a defendant was "insane” at the time of an alleged offense, an expert may not opine on the degree of negligence in a medical malpractice case where a jury is as capable as anyone else of reaching such a conclusion on certain facts.
At issue in the instant case was the soundness of the surgeons’ decision to amputate or not to amputate the victim’s arm. Obviously, the training and experience necessary to make such a decision would be as unfamiliar to a jury as the training and experience required in the study of mental diseases. We believe the jury would have been assisted by an opinion of whether a decision to amputate was a "close call”, or whether the decision required little contemplation under accepted medical standards, and thus, a decision not to amputate was a wanton disregard of those standards, or "grossly erroneous”. As stated in Dros-sart, the jury would be free to reject this opinion, and the trial court so instructed them.
Drossart states that an expert may refer to "legal standards properly explained by the trial court or examining attorney”. 99 Mich App 66, 77 (emphasis supplied). Therefore, under Drossart it might have been proper in the present case for defense counsel to frame the question to Dr. Sil-lery as whether the decision not to amputate was made in a "reckless manner” or with "wanton disregard of the safety of the patient”.
In any event, we find that Dr. Sillery’s opinion on whether the surgeons had acted in a "grossly unskillful” manner was properly excluded on other grounds. While it appears that a medical specialist may testify concerning the malpractice in an area other than his specialty, Banks v Wittenberg, 82 Mich App 274; 266 NW2d 788 (1978), lv den 403 Mich 809 (1978), it is clear that the party proffering the expert witness must show that the expert has knowledge of the standard of care about which he is to testify. Callahan v William Beaumont Hospital, 400 Mich 177; 254 NW2d 31 (1977). In the present case, Dr. Sillery admitted that he was not qualified as a surgeon. Dr. Sillery admitted that he never examined the arm of the victim, but based his opinion on the medical records. Whether an expert is properly qualified is a matter within the trial court’s discretion, Siirila v Barrios, 398 Mich 576; 248 NW2d 171 (1976), and we are of the opinion that because of defendant’s failure to demonstrate that Dr. Sillery had knowledge of the standard of practice for surgeons the trial court could have properly excluded his opinion of the degree of alleged malpractice on this basis.
Thus, though the expert’s opinion on the issue of "grossly erroneous” or "grossly unskillful” medical treatment might have been admissible under MRE 704, its exclusion cannot be considered reversible error.
The remaining issues raised on this appeal are without merit and warrant no discussion.
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Per Curiam.
The defendant was orginally charged with a single count of extortion. MCL 750.213; MSA 28.410. He was convicted after a one-day bench trial and was sentenced to serve from 15 to 20 years imprisonment on November 18, 1971. He appealed and we affirmed the conviction, but remanded the matter for resentencing to comply with People v Tanner, 387 Mich 683; 199 NW2d 202 (1972). The trial court resentenced the defendant to serve from 13 to 20 years imprisonment.
Still believing himself a victim of gross injustice, the defendant petitioned the federal district court for habeas corpus relief, contending that the failure of the prosecuting attorney to disclose contempt proceedings against the complainant prior to the circuit court trial constituted suppression of evidence. The federal district court, Lawrence Gu-bow, J., granted the prosecution’s motion to dismiss. The circuit court of appeals remanded the matter to the federal district court for an eviden-tiary hearing, on the basis that the record before it was incomplete. Dorsey v Warden, 523 F2d 590 (CA 6, 1975). Judge Gubow determined that the defendant should have a new trial and the matter was remanded to the Genesee County Circuit Court for that purpose.
Pending trial, defendant was admitted to bail and released on July 28, 1976. He immediately moved his criminal enterprises to Bay County where he was arrested and charged with armed robbery and forgery, uttering and publishing. While awaiting trial on those charges, he escaped and fled to the State of Washington. When defendant failed to appear for his new trial, scheduled January 7, 1977, a bench warrant for his arrest was issued. More than two years later he was returned from Washington to face the Michigan charges, after having been sentenced to serve a term of imprisonment in Washington for crimes committed there.
Defendant then entered into a plea bargain with the Genesee County prosecutor and, on October 30, 1979, pled guilty to the reduced charge of attempted extortion. The trial court sentenced the defendant to serve five years probation, assessing $700 in court costs and directing that the last six months of the probation period be spent in the Genesee County jail as a term of probation. Sentence was pronounced on November 8, 1980. At the sentence hearing, defense counsel objected to any additional jail time being imposed because defendant had already served more than the statutory maximum of five years for this offense.
While the Michigan Supreme Court has especially eschewed sentence review on appeal, People v Burton, 396 Mich 238, 243; 240 NW2d 239 (1976), we find defendant’s argument well taken. What is at issue here is whether the trial court properly imposed any sentence at all, the defendant having already been incarcerated in Michigan for at least the maximum possible sentence. We recognize that in any case where probation is ordered, the court may require the probationer to spend up to six months in a local detention facility, either in one block of time, or at a fixed interval, at the direction of the court. MCL 771.3; MSA 28.1133.
However, we also recognize statute and case law holding that when a void sentence is set aside and a new sentence is imposed, any time served on the void sentence must be credited against the sentence then imposed. MCL 769.11a; MSA 28.1083(1), People v Sims, 38 Mich App 127, 130; 195 NW2d 766 (1972), People v Clark, 43 Mich App 476, 487-488; 204 NW2d 332 (1972). Thus, we conclude that the defendant has served his full sentence in this state (the court not having considered any time served in the State of Washington for other crimes), and that any additional sentence imposed by the trial court is void and must be vacated.
The conviction in this case is affirmed, but the sentence imposed is vacated, and the defendant is ordered discharged. | [
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R. B. Burns, J.
Defendant was convicted by a jury in the circuit court of Branch County, Michigan, of prison escape, MCL 750.193; MSA 28.390.
Defendant was charged with escaping from an inmate resident home located in Branch County. Subsequent to the preliminary examination, defense counsel moved to quash the information, claiming improper venue. Defendant contended that proper venue was Jackson County, where the Michigan state prison is located.
The testimony of Warner Reed established that the defendant was transferred from the state prison to a resident home program in Branch County. Mr. Reed was the Branch County Circuit Court probation officer and a parole agent for the Department of Corrections. He supervised parolees, clients in the resident home program, and residents on the extended furlough program. Before the defendant arrived at the inmate resident home, the authorities in Jackson forwarded to Mr. Reed the defendant’s presentence report, prison records, his basic information sheet, his photograph, and other similar items.
MCL 750.193(1); MSA 28.390(1) reads in part:
"A person imprisoned in a prison of this state who * * * escapes * * * is guilty of a felony, punishable by further imprisonment for not more than 5 years. * * * A prisoner who * * * escapes * * * shall be charged with that offense and tried in the courts of the county in which the administrative office of the prison or penal facility to which the prisoner was committed or transferred is located at the time of the * * * escape * * *.”
In our opinion the term "administrative office” encompasses a county probation and parole officer’s quarters when that individual possesses the defendant’s records, as was the case here as indicated by Mr. Reed’s testimony.
Affirmed. | [
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Per Curiam.
Defendant appeals as of right from his convictions by a jury of delivery of marijuana, MCL 335.341(1)(c); MSA 18.1070(41)(1)(c) [now MCL 333.7401; MSA 14.15(7401)], and possession of a firearm in the commission of or attempt to commit a felony, MCL 750.227b; MSA 28.424(2).
Two of the three issues raised in this appeal stem from the trial court’s refusal to accept defendant’s claim of entrapment. Defendant first argues that the case should be remanded to the trial court for further findings of fact on the entrapment question because the court failed to make any findings of fact, GCR 1963, 517.1. In making its ruling, the court stated that undercover police work is often necessary in narcotics investigations and concluded that the police conduct in the present case did not justify the defense of entrapment. Defense counsel had argued that enrapment was evidenced by testimony that a police officer had telephoned defendant on numerous occasions offering to purchase marijuana despite defendant’s original refusal to deal, that the officer offered to pay a very high price, and that defendant was sick and the officer suggested weekly dealings to help him out. The court made no mention of this testimony in rejecting the entrapment defense.
In People v Jackson, 390 Mich 621; 212 NW2d 918 (1973), the Court held that GCR 1963, 517.1 is applicable to criminal proceedings and that where the trial court fails to comply with the rule the appropriate remedy is to remand for further fact-finding. However, the following limitation was stated:
"A judge’s failure to find the facts does not require remand where it is manifest that he was aware of the factual issue, that he resolved it and it would not facilitate appellate review to require further explication of the path he followed in reaching the result as, for example, where the only factual issue is identification.” Id., 627, fn 3.
Here, the judge indicated that his decision was made "after listening to all the testimony and passing upon the credibility of all of the witnesses”, and he stated that the test for entrapment concerns police conduct and whether the actions of the police were so reprehensible that the court should refuse to permit a conviction to stand. Under these circumstances, we find remand unnecessary under the Jackson limitation.
Defendant contends that the trial court’s ruling that there was no entrapment was clearly erroneous. The objective test for entrapment is applied in Michigan; it focuses on the conduct of the police, and the key question is whether the police conduct is of the kind which would induce or instigate the commission of a crime by one not ready and willing to commit it. People v Turner, 390 Mich 7; 210 NW2d 336 (1973).
The police found defendant’s name and telephone number in the phone book of a man they had arrested for a narcotics violation. Undercover police officer Edward Barksdale testified that he telephoned defendant and asked to buy heroin. Defendant responded that he could not get heroin but could obtain marijuana. An agreement was then made for the sale of five "bricks” of marijuana by defendant to the officer for $675.
Defendant testified that he was persuaded to sell marijuana to the officer only after he was contacted by telephone from five to seven times and the officer talked with defendant’s wife. Defendant claimed that the officer promised considerable financial rewards.
Even if defendant’s version of the facts were true, we cannot say that there was entrapment under the Turner standard. The trial court properly rejected the entrapment defense.
Defendant’s final contention is that there was insufficient evidence that an actual delivery of the marijuana occurred. This argument must fail in light of Officer Barksdale’s testimony that defendant handed him the bag of marijuana.
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M. J. Kelly, P.J.
Third-party defendants-appellants, Huron Valley Medical Associates, a partnership formed to develop a hospital in the Milford, Michigan area, and its individual partners, appeal as of right an order of the lower court directing these various defendants to pay to third-party plaintiffs-appellees, Kellam and Trimmer, $46,671.62, plus costs of $404.94. The amount represented the third-party defendants’ share of a negotiated settlement of plaintiff bank’s earlier suit for payment on a promissory note of third-party plaintiffs, which the trial court found had been assumed by the defendants. The pertinent facts leading up to this order are as follows.
Facts
In November of 1971, Dr. Walter K. Bradley (not a party to this appeal) approached Drs. Kellam and Trimmer regarding the construction of a hospital facility in Milford. The three obtained a construction mortgage commitment from the Alexander Hamilton Life Insurance Company in the amount of $1,400,000, for which they were required to pay a commitment fee of $140,000. This "front” money was obtained through a loan from the Michigan National Bank of Detroit (hereinafter referred to as "Michigan National”). As security for the loan, Michigan National received a promissory note signed by Bradley, Kellam and Trimmer and a first mortgage on the hospital site. In September of 1972, Michigan National agreed to refinance the loan and accepted a new note for $143,043.10. The land proposed for the hospital site was owned entirely by Bradley and his wife.
In early 1973, Bradley attempted to increase his financing capabilities by enlarging the circle of investors. He retained attorney Kenneth Afton to assist him in this regard and additional investors later entered into the venture. It is undisputed that after August of 1973, Kellam and Trimmer were no longer associated with the project. The new group of investors took the name of "Huron Valley Medical Associates” and Afton drafted a certificate of copartnership and a general partnership agreement dated January 1, 1974. These documents were signed by the various partners individually, as well as by Bradley and Dr. David Gordon (not a party to this appeal).
Pursuant to paragraph 3(A) of the partnership agreement, Bradley conveyed the proposed hospital site to the partnership. Paragraph 3(B) of the partnership agreement stated in part:
"Bradley warrants that the property is free and clear of all liens and encumbrances except those listed on Exhibit B.”
At the time the partners signed the agreement, "Exhibit B” was not attached and, in fact, had not been drafted. Afton prepared Exhibit B after Bradley returned the signed partnership agreement to him. The document, entitled "Obligations Assumed by the Partnership”, contains a list of liabilities incurred in conection with the hospital project. Included on the list was a reference to "front money” in the amount of $143,041, which was the amount of the promissory note executed by Bradley, Kellam and Trimmer. It was stipulated at trial that, if the individual partners testified, they would deny any personal knowledge of Exhibit B prior to the litigation and that Afton was never authorized to draft the partnership agreement.
In May of 1974, Kellam and Trimmer, concerned about their liability to Michigan National under the 1972 promissory note, retained the services of attorney Irwin J. Deutch to investigate the matter. They urged Deutch to contact Afton since they believed he was the attorney representing the partnership. Afton informed Deutch that he possessed a copy of the partnership agreement with a list of the partnership obligations and forwarded to Deutch a copy of the partnership agreement, with Exhibit B attached. A letter accompanying the documents stated, "Appended to the [partnership agreement] is a schedule B, which lists the obligations the partners are assuming”. Based on this information, Deutch advised Kellam and Trimmer that their individual obligations had been assumed by the partnership and that they should not take any action to hinder the development of the project.
Michigan National was not paid and, on May 11, 1977, it filed suit against Kellam, Trimmer and Bradley, alleging a deficiency of $94,820.61. Ke-llam and Trimmer thereafter filed an answer denying the claim and, on the same date, filed the instant third-party complaint.
The third-party complaint alleged that the partnership, pursuant to Exhibit B of the partnership agreement, assumed liability on the promissory note effective January 1, 1974, and had also agreed to reimburse Kellam and Trimmer in the amount of $6,000 each for interest payments previously made to Michigan National. Accordingly, Kellam and Trimmer sought to hold the partnership and partners jointly and severally responsible for "whatever sum they were adjudged liable to the bank” and for all interest payments previously tendered. The partners denied any such liability.
Kellam and Trimmer subsequently entered into negotiations with Michigan National to settle the principal claim. The third-party defendants were notified and asked to pay the settlement costs or post a bond and continue their defense. They refused and stated that any settlement would be deemed voluntary on the part of Kellam and Trimmer. Thereafter, Michigan National and the third-party plaintiffs settled the initial claim for $50,000. The terms of the settlement expressly provided that neither of the parties admitted liability.
Trial
A nonjury trial was held on September 12 and 15, 1978, and September 6 and 7, 1979. Thereafter, the court granted the third-party defendants’ motion to reopen the proofs and conducted a further evidentiary hearing on November 19, 1979.
In his opening statement, counsel for third-party plaintiffs asserted two alternate theories of liability: (1) that Exhibit B of the partnership agreement resulted in assumption of liability as a matter of law, or (2) that the agreement was intended to benefit Kellam and Trimmer and third-party beneficiaries, who relied on the agreement to their detriment. Following the opening statement, the third-party defendants moved for a dismissal because the third-party complaint had prayed for reimbursement of any sums Kellam and Trimmer were found obligated to pay to Michigan National and the settlement precluded any finding of liability. In response, third-party plaintiffs argued that when the partnership assumed the debt the partners became principally liable and Kellam and Trimmer became sureties as a matter of law. It was argued that, as sureties, Kellam and Trimmer had an absolute right to compromise the claim and still seek reimbursement. After additional arguments on September 15, 1978, the court held that the motion should be granted because the partnership agreement, at the time it was signed, did not contain an agreement to assume the contested liabilities. The court held that under the parol evidence rule it was bound by the partnership agreement and that Kellam and Trimmer had failed to plead any theory which would create an exception to that rule. The court, however, also "reserved the right to change [its] mind” and stated that it would permit a separate record to be made before an order dismissing the case was signed.
The proceedings were resumed September 6, 1979, at which time the third-party plaintiffs presented as witnesses attorneys Afton and Deutch and Dr. David Kellam. The partners’ attorney then renewed his prior motion to dismiss, contending that the action was barred by the settlement. The lower court found that Kellam and Trimmer had to make payment to Michigan National on an obligation which had been assumed by the partnership and permitted them to amend their complaint to allow recovery for any sums paid in connection with liabilities assumed by the Huron Valley Medical Associates. Thereupon, the court denied the motion to dismiss.
After further arguments, an opinion was rendered holding that Exhibit B was intended to be part of the "contract” and that Kellam and Trimmer could not have known that the exhibit was not agreed to by the partners. The court also found that the third-party plaintiffs had reasonably relied on the representations of Kenneth Afton because he had been placed in a position of apparent authority by the partnership. Based upon those findings, the court ruled that third-party plaintiffs were entitled to a judgment in the amount of $56,005.94. In response, the third-party defendants filed a subsequent motion requesting the trial court to (1) amend its findings of fact, (2) order a new trial, (3) permit them to implead attorney Afton as a fourth-party defendant, or (4) reopen the proofs for further testimony. The third- party defendants also filed an amended answer raising the affirmative defenses of voluntary payment and the statute of frauds.
In a subsequent hearing, Dr. Gordon, one of the partners, testified that he was unaware of the partnership’s new liabilities at the time he signed the partnership agreement. Gordon also said that he thought Afton would draft and attach Exhibit B, but he did not authorize Afton to incur any liabilities on his behalf. He also testified that Afton was Bradley’s attorney and had not been retained separately by the partnership.
In its final opinion, the lower court concluded that the partners had clothed attorney Afton with apparent authority to act as their agent and to bind them on the disputed liabilities. The court further opined that Kellam and Trimmer had reasonably relied, to their detriment, on such apparent authority and that the partners were es-topped from denying liability for the negotiated settlement.
The Appeal
The primary issue in this appeal concerns the trial court’s factual finding that attorney Afton was the partnership’s agent, with authority to bind the organization and partners to the disputed liability. The law of Michigan is that disputes over the existence and scope of an agency relationship are properly determined as a question of fact. Birou v Thompson-Brown Co, 67 Mich App 502, 506; 241 NW2d 265 (1976), citing Head v Benjamin Rich Realty Co, 55 Mich App 348, 357; 222 NW2d 237 (1974), and Ardash v Karp, 18 Mich App 241, 244; 170 NW2d 854 (1969). See also Lincoln v Fairfield-Nobel Co, 76 Mich App 514; 257 NW2d 148 (1977). Further, our authority to contradict such findings of fact is limited to determining whether the findings are clearly erroneous in light of the evidence supporting them, Knight v Michigan, 99 Mich App 226, 232-233; 297 NW2d 889 (1980), GCR 1963, 517.1.
At the conclusion of the proceedings below, the trial court first held that Afton was an agent of the partnership by virtue of the apparent authority conferred upon him by the actions of the partners and, second, that these actions were sufficient to establish Afton’s apparent authority to bind the organization to pay the third-party plaintiffs’ debt to Michigan National. In Central Wholesale Co v Sefa, 351 Mich 17, 25; 87 NW2d 94 (1957), the Supreme Court quoted 2 CJS, Agency, § 96, pp 1210-1211, for the following description of the prerequisites necessary to a finding of agency by apparent authority:
"Whenever the principal, by statements or conduct, places the agent in a position where he appears with reasonable certainty to be acting for the principal, or without interference suffers the agent to assume such a position, and thereby justifies those dealing with the agent in believing that he is acting within his mandate, an apparent authority results which replaces that actually conferred as the basis for determining rights and liabilities. The measure of authority consists of those powers which the principal has thus caused or permitted the agent to seem to possess, whether the agent had actual authority being immaterial if his conduct was within the apparent scope of his powers; the question involved is no longer what authority was actually given or was intended by the parties to the agency agreement, but resolves itself instead into the determination of what powers persons of reasonable prudence, ordinarily familiar with business practices, dealing with the agent might rightfully believe him to have on the basis of the principal’s conduct. Absence of intention to confer any power of the character of that exercised cannot be asserted so as to avoid or vitiate the authority, for the agent’s authority as to those with whom he deals is what it reasonably appears to be.”
See also Moreschini v Regional Broadcasters of Michigan, Inc, 373 Mich 496, 498; 129 NW2d 859 (1964), and Smith v Saginaw Savings & Loan Ass'n, 94 Mich App 263, 271; 288 NW2d 613 (1979) ("Apparent authority to act is to be determined from all the surrounding facts and circumstances.”).
Findings
Our review of the facts and circumstances surrounding this case discloses that sufficient evidence was presented to support a finding of apparent authority. However, the facts as determined below do not compel the further conclusion that the partners held Afton out as possessing authority to bind them to Exhibit B of the partnership agreement. No member of the partnership was contacted regarding the assumption of this liability and there was no direct representation that Afton could speak for them in that regard. While third-party plaintiffs contacted Afton because they thought he was the partnership attorney, there was no evidence that this belief was derived from the actions of the partners. The partners’ sole "representation” was to allow Afton to retain the signed partnership agreement after it was executed without Exhibit B attached. Without more, this manifestation of intent is insufficient to find that the partners "clothed” Afton with authority to bind the partners to Exhibit B. The representations regarding Afton’s authority were mainly generated by Afton himself. Thus, Afton spoke with the third-party plaintiffs’ attorney and told him that the partnership had assumed the obligations of Kellam and Trimmer and sent him a copy of the signed agreement with exhibit B attached. Apparent authority, however, may not be established by the representations of the agent. Smith v Saginaw Savings & Loan Ass’n, supra, 271, 3 Am Jur 2d, Agency, § 74, p 476. Accordingly, the trial court’s finding of apparent authority was erroneous.
We do not view the above error as requiring reversal of the judgment entered below, however, since there is an independent basis for imposing liability on the third-party defendants. In Wynn v Farmers Ins Group, 98 Mich App 93, 98; 296 NW2d 197 (1980), this Court summarized the elements necessary to a finding of estoppel:
"Estoppel arises where: (1) a party, by representation, admissions or silence, intentionally or negligently induces another party to believe facts; (2) the other party justifiably relies and acts on this belief; and (3) the other party will be prejudiced if the first party is permitted to deny the existence of the facts.”
See also Dimmitt & Owens Financial, Inc v Real-tek Industries, Inc, 90 Mich App 429, 433; 280 NW2d 827 (1979), Johnson v Harper-Grace Hospital, 92 Mich App 202, 205; 284 NW2d 520 (1979), and Conel Development, Inc v River Rouge Savings Bank, 84 Mich App 415, 422-423; 269 NW2d 621 (1978), cited by the Wynn Court.
In our view, the evidence offered at trial discloses sufficient facts which, when applied to the legal standards, prevent the third-party defendants from denying liability for the contested debt. The partners began this unusual series of transactions by entering into an incomplete partnership agreement. The capital contribution of each partner was $15,000 in cash, except for Dr. Bradley, who donated "the real estate described in Schedule [Exhibit] A” worth $45,000. The very next subsection of the agreement noted that the Bradley property was free of all encumbrances "except those listed on Exhibit B”, an exhibit not attached to the principal document and, according to the evidence, not even in existence at that time. We note further that the partnership agreement and later-attached Exhibit B were prepared on stationery bearing the name of attorney Afton, thus indicating that Afton was acting at least in part on behalf of the partnership. Finally, the agreement, including its reference to "Exhibit B”, was entrusted to attorney Afton.
Conclusion
Viewing these facts as a whole, we conclude that the partners’ actions (representations) negligently induced third-party plaintiffs Kellam and Trimmer to believe their debt to Michigan National was assumed by the partnership. The evidence also discloses a justifiable reliance on the partners’ representation, which conclusion is supported by the third-party plaintiffs’ almost-three-year period of inaction following Afton and Deutch’s assurances of the debt’s assumption. Lastly, the third-party plaintiffs would incur considerable prejudice if the partners were permitted to deny the existence of the obligations. The partners are thus estopped from denying liability on the debt listed in Exhibit B.
We also address a second issue raised by the third-party defendants. It is argued that the third-party plaintiffs’ settlement with Michigan National, executed while they stood in an alleged surety relationship with the bank and partners, released the partners’ obligation to pay the assumed debt. In this regard, third-party defendants claim that the obligation to Michigan National was not proved and that, in fact, the settlement agreement specifically disclaimed liability for the debt. Thus, because the third-party plaintiffs made payment on a then-nonexistent obligation of the partners, it is asserted that the obligation may not be enforced.
Prior decisions of Michigan’s Supreme Court indicate that, contrary to the general rule that a surety relationship may arise only as a result of an express contract, see 74 Am Jur 2d, Suretyship, § 7, p 16, a suretyship relation in Michigan may come about without express agreement as a matter of law under facts similar to those herein. Smith v Shelden, 35 Mich 42, 48; 24 Am Rep 529 (1876), Keyworth v Wiechers, 269 Mich 687, 696; 257 NW 755 (1934), rev’d on other grounds 273 Mich 347; 263 NW 57 (1935). However, it has also been held that a creditor may seek recovery of a material obligation directly from a surety without adversely affecting the surety’s right to indemnity from the principal debtor. See Stratford Arms Hotel Co v General Casualty & Surety Co, 249 Mich 518, 523-524; 229 NW 506 (1930), noting the general right of the principal debtor to intervene in an action properly brought directly against its surety.
In light of a creditor’s right to seek payment first from the surety, it would be anomalous for this Court to uphold the position of third-party defendants, which would apparently prohibit a surety from settling the suit against it for fear that the right to be indemnified would thereby be lost. In this case, third-party plaintiffs were called upon to make good on a debt for which they stood as surety to the principal debtors. Prior to settling the action, third-party plaintiffs requested the partners to intervene and defend the suit, which request was refused. We are unaware of any authority which would require a judgment against the third-party defendants as a prerequisite to a surety’s right to be indemnified after payment of the principal debt. Under these facts, it is apparent that the third-party plaintiffs, as sureties, were "held to pay” the debt assumed by the partners and thus acquired a valid right to be reimbursed. See Canadian Bank of Commerce v Coumbe, 47 Mich 358, 362; 11 NW 196 (1882), and Ellis v Phillips, 363 Mich 587, 596; 110 NW2d 772 (1961) ("It is fundamental that a surety, when required to pay its principal’s obligation, is entitled to reimbursement.”) Therefore, the settlement between Michigan National and third-party plaintiffs did not render void their right to indemnity.
Our disposition of the above issues renders further review of the appellant’s allegations of error unnecessary.
Affirmed.
In this situation, the surety is not left without a remedy. The Supreme Court, in Ellis v Phillips, 363 Mich 587, 598; 110 NW2d 772 (1961), quoted with approval the following passage from 50 Am Jur, Suretyship, § 225, pp 1051-1052:
"No principal in equity is more familiar, or more firmly established, than that a surety, after the debt for which he is liable has become due, without paying or being called on to pay it, may file a bill in equity in the nature of a bill quia timet to compel the principal debtor to exonerate him from liability by its payment, provided no rights of the creditor are prejudiced thereby.”
A surety is not, however, required to pursue this remedy. | [
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M. B. Breighner, J.
Third-party defendant Oakland County Board of Road Commissioners appeals by leave from the denial on rehearing of its motion for summary judgment.
Plaintiffs decedent, Manley Hughes, was fatally injured on July 13, 1973, in a vehicular accident on Grange Hall Road in Oakland County. At the time, Hughes was driving a payloader as part of his employment with Spartan Aggregates, Inc. When he attempted to pull over to the side of the road to allow traffic to pass, the machine went out of control and off the roadway, rolling over on its side and top and crushing Hughes. Plaintiff sued International Harvester Company, the manufacturer of the payloader, and Wolverine Tractor and Equipment Company, the seller of the machine to Spartan Aggregates. Plaintiffs complaint included allegations of negligence, breach of implied and express warranties and fraud and deceit against the two companies. International Harvester filed a third-party complaint against the Board of Road Commissioners, seeking contribution or indemnification. The company alleges that the accident was caused by the Board’s negligence in failing to properly maintain the roadway.
The Board based its motion for summary judgment on two separate theories. First, the Board argued that International Harvester’s claim for contribution was barred by governmental immunity. Second, the Board claimed that indemnity could not be obtained since International Harvester’s own liability could only be based on fault. We consider each of these theories on appeal.
I. Does the government’s waiver of immunity in MCL 691.1402; MSA 3.996(102) permit the government to be impleaded pursuant to a claim for contribution by a defendant who is not personally injured and who suffered no property damage as a direct result of the accident?
In Michigan, the right to contribution among joint tortfeasors exists pursuant to statute. MCL 600.2925a(l); MSA 27A.2925(1) provides:
"Whenever a money judgment has been recovered jointly against 2 or more defendants in an action for bodily injury or death resulting therefrom, or property damage, and such judgment has been paid in part or in full by 1 or more of such defendants, each defendant who has paid more than his own pro rata share is entitled to contribution with respect to the excess so paid over and above the pro rata share of the defendant or defendants making such payment. Joint tort-feasors who are summoned in as third party defendants pursuant to court rule may likewise be liable for contribution. No person may be compelled to pay to any other defendant an amount greater than his pro rata share of the entire judgment.”
In the instant case, International Harvester contends that the Board is a joint tortfeasor based on its failure to properly maintain the roadway. At the time of the accident, governmental immunity was in effect pursuant to statute and the common law. MCL 691.1401 et seq.; MSA 3.996(101) et seq., e.g., Bofysil v Dep’t of State Highways, 44 Mich App 118, 124; 205 NW2d 222 (1972), McNees v Scholley, 46 Mich App 702, 707; 208 NW2d 643 (1973). Governmental agencies are immune from tort liability arising out of the exercise or discharge of a governmental function. MCL 691.1407; MSA 3.996(107). The maintenance and improvement of a highway is such a governmental function. Thomas v Dep’t of State Highways, 398 Mich 1, 11-12; 247 NW2d 530 (1976).
Nonetheless, a specific statutory exception to the general rule of immunity is provided in MCL 691.1402; MSA 3.996(102)._
"Each governmental agency having jurisdiction over any highway shall maintain the highway in reasonable repair so that it is reasonably safe and convenient for public travel. Any person sustaining bodily injury or damage to his property by reason of failure of any governmental agency to keep any highway under its jurisdiction in reasonable repair, and in condition reasonably safe and fit for travel, may recover the damages suffered by him from such governmental agency. The liability, procedure and remedy as to county roads under the jurisdiction of a county road commission shall be as provided in section 21, chapter 4 of Act No. 283 of the Public Acts of 1909, as amended, being section 224.21 of the Compiled Laws of 1948. The duty of the state and the county road commissions to repair and maintain highways, and the liability therefor, shall extend only to the improved portion of the highway designed for vehicular travel and shall not include sidewalks, crosswalks or any other installation outside of the improved portion of the highway designed for vehicular travel. No action shall be brought against the state under this section except for injury or loss suffered on or after July 1, 1965. Any judgment against the state based on a claim arising under this section from acts or omissions of the state highway department shall be payable only from restricted funds appropriated to the state highway department or funds provided by its insurer.”
The parties agree that this exception would have permitted plaintiff to sue the Board of Road Commissioners directly for their alleged failure to maintain the roadway. The Board contends, however, that the statutory provision does not extend to International Harvester’s claim for contribution. The Board would interpret this section in a narrow manner, limiting recovery to persons "sustaining bodily injury or damage to * * * property”, relying on Genesee County Road Comm v State Highway Comm, 86 Mich App 294, 298-299; 272 NW2d 632 (1978).
The Genesee County Road Comm case arose out of a fatal automobile accident in Genesee County. A wrongful death action was commenced in circuit court against the Genesee County Road Commission and the State Highway Commission, while a similar complaint was filed against the State Highway Commission alone in the Court of Claims. Accelerated judgment was granted to the State Highway Commission in circuit court because of the exclusive jurisdiction of the Court of Claims. Subsequently, the Court of Claims action against the state was voluntarily dismissed, while the Genesee County Road Commission settled the circuit court suit by payment of $75,000. The county then sought contribution from the state of one-half of the settlement amount. Summary judgment in favor of the state was affirmed by this Court. In interpreting MCL 691.1402; MSA 3.996(102), the Court wrote:
"Although this section would have permitted the action in behalf of Michael Mitchell to be pursued against the state, it does not authorize the sort of action attempted here. This is because the statute limits relief to that class of persons who suffer bodily injury or property damage. Plaintiffs, of course, have suffered no such loss. Statutory exceptions to governmental immunity are to be strictly construed. Stremler v Dep’t of State Highways, 58 Mich App 620, 632-633; 228 NW2d 492 (1975). Subsequent language in MCL 691.1402; MSA 3.996(102), limiting actions to 'injury or loss suffered on or after July 1, 1965,’ should not be read to expand the class of person who could bring a suit against the state. Rather, this language merely refers to the bodily injury and property damage mentioned previously therein.” 86 Mich App 294, 298-299.
We disagree with such a narrow interpretation. Concededly, statutes in derogation of the common law are to be strictly construed. Yount v National Bank of Jackson, 327 Mich 342, 347; 42 NW2d 110 (1950). Notwithstanding that rule, a statute must also be construed sensibly and in harmony with the legislative purpose. In re Cameron’s Estate, 170 Mich 578, 582; 136 NW 451 (1912). Here, the Legislature has established three statutory exceptions to the general grant of immunity, imposing liability in cases involving defective highways, negligently operated government vehicles and dangerous or defective public buildings. MCL 691.1402-691.1406; MSA 3.996(102)-3.996(106). The exceptions indicate a legislative intent to protect the public from injury by imposing upon governmental agencies the duty to maintain safe public places. Pichette v Manistique Public Schools, 403 Mich 268, 284-285, 287; 269 NW2d 143 (1978), Bush v Oscoda Area Schools, 405 Mich 716, 731-732, 734; 275 NW2d 268 (1979). That purpose is advanced by imposing liability upon governmental units where their failure to maintain is a proximate cause of injury or damage to the public.
A narrow construction of MCL 691.1402; MSA 3.996(102) would permit a plaintiff to determine governmental liability by deciding whether or not to include the government as an original defendant. The contribution statute itself was amended by 1961 PA 236 to avoid such a result among nongovernmental litigants. The amendment permits contribution from joint tortfeasors who are joined as third-party defendants. Previously, contribution was only possible when a judgment had been recovered jointly against the tortfeasors. The potential for abuse was eliminated by depriving plaintiffs of the ability to prevent contribution. See Hawkins, Practice Commentary and Committee Comment, MCLA 600.2925, pp 780, 786. The pres ent situation is decidedly similar. A plaintiffs lack of diligence, oversight or deliberate choice in not naming a governmental defendant must not be permitted to place upon a named defendant an unfair share of responsibility. The lower court properly denied the Board’s motion for summary judgment with respect to International Harvester’s claim for contribution, and we affirm.
II. May an action for indemniñcation be maintained by a defendant whose own liability is based on allegations of active negligence?
In Dale v Whiteman, 388 Mich 698, 704-705; 202 NW2d 797 (1972), the Supreme Court elucidated the types of relationships creating a duty of indemnification:
"The basis for indemnification has been said to rest upon the equitable principle of a right to restitution. Courts have found various grounds for granting indemnity. Probably the simplest situation is one in which the parties have entered into a written contract in which one party has clearly agreed to indemnify the other. Next are those cases where the contract terms are such that a right of indemnification can be implied. See Ryan Stevedoring Co, Inc v Pan-Atlantic Steamship Corp, 350 US 124; 76 S Ct 232; 100 L Ed 133 (1956); McDonnell Aircraft Corp v Hartman-Hanks-Walsh Painting Co, 323 SW2d 788 (Mo, 1959). Then there are those cases where the courts have written into the agreement of the parties an implied contract to indemnify based upon the undertaking of one party, written or oral, to perform a certain service or furnish a product to the other party. See Diamond State Telephone Co v University of Delaware, 269 A2d 52 (Del, 1970).
"Other decisions are based on the special relationship between the parties — such as a bailment. In these cases, the bailor has been given a right of indemnification from the bailee. See Lunderberg v Bierman, 241 Minn 349; 63 NW2d 355 (1954); Baugh v Rogers, 24 Cal 2d 200; 148 P2d 633 (1944).
"Finally, there are a number of cases in which the right to be indemnified is based upon the theory that the party entitled to indemnification was a 'passive’ tortfeasor as opposed to the 'active’ tort of some other party. See Larson v Minneapolis, 262 Minn 142; 114 NW2d 68 (1962); Daly v Bergstedt, 267 Minn 244; 126 NW2d 242 (1964).”
International Harvester’s claim for indemnification rests upon the final theory. The company asserts that the Board should be liable for its own acts of active negligence. However, indemnity arising from tort is only available when the party seeking it is free from personal fault. Husted v Consumers Power Co, 376 Mich 41, 51; 135 NW2d 370 (1965), Minster Machine Co v Diamond Stamping Co, 72 Mich App 58, 62-65; 248 NW2d 676 (1976).
Minster Machine Co v Diamond Stamping Co, supra, is directly on point. There, the manufacturer of an allegedly negligently designed press sought indemnity from the original plaintiffs employer. This Court affirmed summary judgment in favor of the employer, concluding that the claims against the manufacturer could result in liability only for active negligence. Because passive negligence of the type imposed by law was not possible, indemnity was not appropriate.
Here, the liability of International Harvester is likewise contingent on its active tortious conduct. Plaintiff alleges that the company was negligent, breached express and implied warranties and acted in a fraudulent and deceptive manner. The allegations all stem out of the design, manufacture and distribution of the payloader in question. Since International Harvester may only be liable through its own personal fault, indemnification cannot be appropriate. The company’s claim for indemnification is so clearly unenforceable as a matter of law that no factual development could possibly justify recovery. The lower court erred in denying the Board’s motion for summary judgment with regard to that claim. Crowther v Ross Chemical & Manufacturing Co, 42 Mich App 426, 431; 202 NW2d 577 (1972). We therefore reverse and remand for entry of an order dismissing International Harvester’s third-party complaint with regard to its claim for indemnification.
Reversed in part and affirmed in part. No costs, neither party having fully prevailed.
Although the contribution statute has subsequently been amended, the revised sections are only applicable to torts committed on or after January 1, 1975. 1974 PA 318; MCL 600.2925a-d; MSA 27A.2925(1)-(4).
Common-law governmental immunity was prospectively abrogated by Pittman v City of Taylor, 398 Mich 41; 247 NW2d 512 (1976). | [
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Per Curiam.
On December 17, 1973, defendant pled guilty to a charge of assault with intent to rob while armed, MCL 750.89; MSA 28.284. He was subsequently sentenced to three years probation, with the first year to be spent in the county jail. While on probation, defendant was charged with armed robbery, MCL 750.529; MSA 28.797. He was convicted at a jury trial and sentenced to a prison term of from 30 to 40 years. After the armed robbery conviction, defendant was charged with violating his probation. Defendant was charged with violation of the statutory term prohibiting him from violating any criminal law of the State of Michigan. The formal charges stated both that defendant had committed the armed robbery and had been convicted thereof. On April 27, 1976, defendant was found in violation of his probation, based solely on his admission that he had been convicted of the armed robbery charge. Defendant did not admit to having been involved in an armed robbery nor were any witnesses presented to substantiate the charge. The trial court then revoked defendant’s probation and sentenced him to a prison term of from 26-1/2 to 40 years on the assault with intent to rob while armed conviction.
Meanwhile, defendant appealed his armed robbery conviction and this Court reversed, holding that certain statements made by the defendant should have been suppressed as the fruits of an illegal arrest. People v Tebedo, 81 Mich App 535; 265 NW2d 406 (1978). The case was remanded for a new trial which has been adjourned on several occasions pending the outcome of the instant appeal. As a result of the reversal of his armed robbery conviction defendant moved to set aside his guilty plea to the probation violation charge. This motion was denied and defendant now appeals by leave granted on June 9, 1980.
On appeal, defendant argues that the trial court erred in refusing to set aside the finding that he had violated his probation where the conviction on which that finding was based was subsequently reversed. This question has not been extensively discussed in this state. People v Biondo, 76 Mich App 155; 256 NW2d 60 (1977), lv den 402 Mich 835 (1977), appears factually similar. In Biondo, defendant was convicted of breaking and entering a business establishment while on probation from a prior conviction. As a result of the breaking and entering conviction, his probation was revoked. Defendant’s appeal to this Court involved both the breaking and entering conviction and the probation revocation. Discussing the breaking and entering conviction first, the Court reversed on the basis of improper prosecutorial argument. The Court then added, without additional discussion: "The reversal of the breaking and entering conviction of necessity means that the resulting probation violation conviction is set aside”. Id., 160.
Biondo appears to stand for the proposition that when a defendant is found in violation of his probation on the basis of a conviction for a substantive criminal offense and that conviction is subsequently reversed, the defendant is entitled to have the probation revocation reversed as well. Analysis of other probation revocation cases reveals, however, that this is not always the case. The standard of proof in a probation revocation hearing is less than in a regular criminal trial. When revocation is sought on the basis of a subsequent violation of the criminal law, there must be proof sufficient to allow the court to find by the preponderance of the evidence that defendant com mitted the new offense. People v Buckner, 103 Mich App 301; 302 NW2d 848 (1980), People v Billy Williams, 66 Mich App 67; 238 NW2d 407 (1975). There must be sufficient proof on each element of the offense. People v Pippin, 316 Mich 191; 25 NW2d 164 (1946). Because the standard of proof is lower than the reasonable doubt standard employed in a criminal trial, probation may be revoked before the trial on the substantive offense, and a decision to revoke probation will be valid even if the defendant is ultimately acquitted of the substantive crime. People v Morgan, 85 Mich App 353; 271 NW2d 233 (1978). See People v McDonald, 97 Mich App 425; 296 NW2d 53 (1980), People v Nesbitt, 86 Mich App 128, 136; 272 NW2d 210 (1978), and People v Baines, 83 Mich App 570; 269 NW2d 228 (1978), lv den 408 Mich 861 (1980). For the same reasons, the subsequent reversal of a conviction on a criminal offense would not require vacation of a probation revocation which was based on that offense if the testimony or the defendant’s admissions at the revocation hearing were sufficient to establish by a preponderance of the evidence that the defendant committed the offense.
In the instant case, no testimony was taken to establish the facts underlying the armed robbery charge. Nor did defendant admit to participating in an armed robbery. The only thing defendant admitted was that he had been convicted by a jury of armed robbery. Based on this admission, the trial court revoked defendant’s probation "because he was convicted of Armed Robbery on March the 18th, 1976, in Genesee County, Michigan”. Certainly, probation may be revoked on the basis of the fact that a defendant has been convicted of a subsequent criminal offense. Evidence of the con viction actually supplies greater proof than necessary, since it represents that defendant was found to have committed a criminal offense "beyond a reasonable doubt” instead of by a "preponderance of the evidence”. Where the sole basis for revoking probation is evidence of conviction, however, and where that conviction is subsequently reversed, there is no longer a reliable basis on which to rest the probation violation. Although it could be argued that defendant’s participation in the criminal offense was found beyond a reasonable doubt regardless of the reversal, the effect of the reversal is, in general, to cast doubt on the reliability of that finding. Without an independent finding of defendant’s involvement in the offense, as might have resulted if defendant admitted participation in the robbery or if a witness had testified to the underlying facts, the probation revocation has no basis on which to stand.
To summarize, the subsequent reversal of a criminal conviction on which a probation revocation is based does not require reversal of the probation revocation if (1) at the revocation hearing defendant admitted facts sufficient to establish by a preponderance of the evidence that he committed the offense, or (2) if testimony is presented at the revocation hearing which meets this same standard. If the only thing established at the hearing is that defendant was convicted of the offense, then reversal of that conviction requires reversal of the probation revocation as well.
Because the prosecution may seek to reinstitute probation revocation proceedings against the defendant on the basis of conduct occurring during the probationary period, we will briefly address one further issue raised by the parties. After this Court’s reversal of defendant’s armed robbery con viction, defendant moved to disqualify the judge from presiding at his retrial on the basis of GCR 1963, 912.2(2). The motion was ultimately granted. Defendant then sought to disqualify the same judge from hearing his motion to set aside the probation revocation. This motion was denied on the basis that questions of fact were involved in the armed robbery retrial (which was to be a bench trial) while only issues of law were involved in the motion to set aside the probation revocation. We find no support for such a distinction. Accordingly, this judge should disqualify himself from hearing the matter of defendant’s probation revocation if such proceedings are again instituted and if disqualification is sought. In all other proceedings which might arise in the future regarding this defendant in which disqualification of this judge is sought, the judge should focus on the question of whether grounds for disqualification still exist rather than on the nature of the proceedings.
The revocation of defendant’s probation is reversed and the sentence imposed thereon is vacated.
Reversed. | [
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R. B. Burns, P.J.
The Kent County Department of Social Services (DSS) instituted suit in circuit court seeking weekly payments from defendant for the support of her daughter, Angela Nelson. No testimony was taken, but, on the basis of an affidavit of Angela Nelson filed on the date of hearing, the trial court ordered defendant to pay support in the amount of $15 per week.
A brief history of this case reveals that in 1969 Dorthia and Tommy Joe Nelson were divorced. Dorthia was granted custody of Angela and the six other minor children of the marriage. Tommy Joe was ordered to pay $5 per week for the support of Angela, but the payments were not made.
When Angela was 15 or 16 years old she had a child out of wedlock. On July 16, 1979, she received an emergency needs grant, and she has thereafter received aid to dependent children benefits and food stamps from DSS. On July 19, 1979, Angela, with her infant child, moved out of the home of her mother, Dorthia Nelson. With the support and encouragement of DSS, Angela moved into a residence of her own, and DSS thereafter filed an action in circuit court to compel defendant to contribute to Angela’s living arrangement.
As previously stated, the trial court, on the strength of Angela’s affidavit and without taking testimony, found that Angela had left the home of her mother because of deplorable conditions that existed there. The court declined to declare that Angela was emancipated and instead found that she was still a dependent of her mother.
In many ways this case is similar to In the Matter of Parker v Stage, 43 NY2d 128; 371 NE2d 513; 400 NYS2d 794 (1977), wherein the daughter left the home of her father to live with her paramour. She gave birth to a child out of wedlock and applied for aid to dependent children and obtained public assistance for her. child and for herself. Thereafter the Commissioner of Social Services of Orange County, New York, commenced an action against the father for contribution to the support of his daughter. The trial court held that the daughter, by leaving home to live with her paramour and have his child, had "emancipated herself’ from her father and therefore the father was no longer obligated to support her.
On appeal, the highest court of New York stated:
"In sum we cannot agree with the commissioner that whenever an older child chooses to leave home, for any reason, the parents must pay for the child’s separate maintenance, or contribute support, if the child applies for public assistance. The courts must still consider the impact on the family relationship and the possibility of injustice in the particular case. Of course the fact that the child is eligible for public assistance may * * * permit her to avoid her father’s authority and demands however reasonable they may be. But it does not follow that the parent must then finish what has been begun by underwriting the lifestyle which his daughter chose against his reasonable wishes and repeated counsel.
"It should be emphasized that this is not a case of an abandoned child, but of an abandoned parent. There is nothing to indicate that the respondent abused his daughter or placed unreasonable demands upon her. There is no showing that he actively drove her from her home or encouraged her to leave in order to have the public assume his obligation of support. Indeed the contrary appears to be true. The undisputed proof in this record establishes that the father continuously supported his daughter from birth * * 43 NY2d 128, 134.
In the present case the record regarding the reasons for Angela’s leaving her mother’s home is incomplete. This case should not have been decided by affidavit or summary proceeding.
The cause is remanded to the trial court for the purpose of making a record to show whether or not there was good cause for Angela to leave home.
As stated in Parker, supra, "it does not follow that the parent must then finish what has been begun by underwriting the lifestyle which his daughter chose against his reasonable wishes”. | [
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Mackenzie, J.
Plaintiff appeals as of right from an order entered by the circuit court granting summary judgment for defendant Lawyers Title Insurance Corporation. In 1967, plaintiff entered into a land contract with defendant Theodore M. David, not a party on appeal, for the purchase of certain property in Novi Township. Pursuant to the land contract, David obtained title insurance for the property with plaintiff as the beneficiary. The deed for the property was conveyed to plaintiff in 1977. The title insurance policy in Schedule A described the insured property, in accordance with the description in plaintiff’s deed, as follows:
"Lots 92 to 98 inclusive, Howell’s Walled Lake Subdivision, a part of West 1/2 of Northwest 1/4 of Section 11, Town 1 North, Range 8 East, Novi Township, Oakland County, Michigan, according to the plat thereof as recorded in Liber 42, Page 36 of Plats, Oakland County Records.”
Schedule B of the insurance policy provided in pertinent part as follows:
"This Policy does not insure against loss or damage by reason of the following:
"2. Unrecorded water, mineral and oil rights, unrecorded easements and claims of easement, boundary line disputes not disclosed of record and any matters which would be disclosed by an accurate survey and inspection of the premises.” (Emphasis added.)
The property purchased by plaintiff included a single building. In 1981, plaintiff became aware of a survey prepared that same year by some municipal engineers revealing that part of the building on plaintiff’s property extended beyond the bound ary line of plaintiff’s property, encroaching upon the Novi Road right-of-way. Plaintiff then brought suit against defendant, among others, seeking a declaratory judgment that defendant was liable for damages in connection with the encroaching building.
Defendant’s motion for summary judgment did not specify what subsection of GCR 1963, 117.2 the motion was brought under. Attached to the motion was an affidavit, as well as a copy of the 1981 survey and a copy of the title insurance policy, both of which had also been attached to the complaint filed by plaintiff. Plaintiff in his answer to defendant’s motion for summary judgment attached an affidavit and an earlier survey which had been given to him by his seller at the time of sale of the property; this earlier survey, while indicating the location of iron stakes and monuments, did not include or sketch out the location of the building. The order of summary judgment entered by the circuit court states that it was granted under GCR 1963, 117.2(1). However, it is clear from the parties’ submission and the court’s consideration of documents other than the pleadings that the basis for summary judgment was subrule 117.2(3) since under subrule 117.2(1) only the pleadings are to be considered, and hence we will treat the motion as having been granted based on subrule 117.2(3). Todd v Biglow, 51 Mich App 346, 349-350; 214 NW2d 733 (1974), lv den 391 Mich 816 (1974).
GCR 1963, 117.2(3) provides that summary judgment may be granted if there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law. A court is to consider the pleadings, affidavits, depositions, and any other documents submitted to it. GCR 1963, 117.3. The motion should be granted only if the court is satisfied that there is some deficiency in the opponent’s claim that cannot be overcome, and the opposing party is to be given the benefit of any reasonable doubt as to whether any genuine issue of fact exists. Rizzo v Kretschmer, 389 Mich 363, 372; 207 NW2d 316 (1973). However, the party opposing the motion does have an obligation to make a showing that a genuine issue of fact does exist. Rizzo, supra, pp 371-372.
We find that summary judgment for defendant was properly granted since there was no genuine issue that the insurance policy exclusion for "any matters which would be disclosed by an accurate survey” applied in the present case so as to exempt defendant from any liability to plaintiff in connection with the encroaching building. Neither below nor on appeal has plaintiff challenged the accuracy of the 1981 survey showing part of the building to be beyond the boundary line of plaintiff’s property and encroaching upon the adjoining right-of-way. The earlier survey submitted by plaintiff in his answer to the motion did not serve to dispute the accuracy of the 1981 survey or to create a genuine issue since it did not at all reflect the location of the building, and plaintiff makes no claim that according to the placement of the stakes and monuments in the earlier survey the encroachment of the building on the adjoining right-of-way would not be disclosed. Unlike Waterview Associates, Inc v Lawyers Title Ins Corp, 30 Mich App 687; 186 NW2d 803 (1971), lv den 384 Mich 835 (1971), where there was a genuine issue as to what an accurate survey would have disclosed, here there was no dispute that the 1981 survey was accurate and in accordance with the description of the insured property in the insurance policy, and the 1981 survey provided a proper basis for granting defendant summary judgment since it established that an accurate survey of plaintiff’s property disclosed the encroachment of the building.
The remaining issue is plaintiff’s contention that even if there is no genuine issue that the "accurate survey” exception applies in the present case, still defendant is not entitled to judgment as a matter of law because that exception in the insurance policy should be deemed unenforceable. We cannot agree. Plaintiff does not claim that the policy coverage was misrepresented to him, and the exclusion for "any matters which would be disclosed by an accurate survey” was' clearly expressed in the policy and was not inconspicuous. Defendant met its duty to clearly express limitations on coverage in the policy. Kast v Citizens Mutual Ins Co, 125 Mich App 309, 311; 336 NW2d 18 (1983). We reject plaintiff’s contention that the exclusion should be deemed void as against public policy; we perceive no unconscionability in permitting, or public policy basis for prohibiting, title insurers from excluding from coverage, if clearly expressed, matters which would be revealed by an accurate survey. Such an exclusion is not so broad that it renders the insurance policy a meaningless sham, but rather merely places on the insured the burden of obtaining an accurate survey of the property the insured is purchasing and the responsibility for any defects which that survey discloses.
We likewise reject plaintiff’s contention that the "accurate survey” exception should be deemed unenforceable because the title insurance policy represented an adhesion contract. Title insurance policies without exceptions are also available, although at a higher premium. Thus, plaintiff was not without a choice and could have bargained with his seller for the provision of a title insurance policy without exceptions. Furthermore, even if this insurance policy represented an adhesion contract over which plaintiff had no power to bargain, we must reject plaintiffs claim that he had a "reasonable expectation” of coverage, Zurich Ins Co v Rombough, 384 Mich 228, 233; 180 NW2d 775 (1970), in view of the unambiguous and clearly set forth "accurate survey” exclusion in the policy and the absence of any misrepresentation of the policy to him. Also, even where a contract is adhesive in the sense that one party lacks bargaining power, still the contract terms are enforceable if they are substantively reasonable, Allen v Michigan Bell Telephone Co, 18 Mich App 632, 637-638; 171 NW2d 689 (1969), lv den 383 Mich 804 (1970), and we find the "accurate survey” exclusion substantively reasonable. Finally, we decline plaintiffs invitation to extend the doctrine of implied warranty and Uniform Commercial Code provisions relative to implied warranties to title insurance contracts.
Affirmed. Costs to defendant-appellee. | [
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M. J. Kelly, J.
Plaintiff filed this action in circuit court for the payment of group disability insurance benefits. Defendant responded with a motion for summary judgment, which the trial court treated as a motion for accelerated judgment under GCR 1963, 116.1(5), seeking dismissal of plaintiff’s complaint for failure to exhaust her contractual remedies. The trial court granted accelerated judgment and denied plaintiff’s motion for summary judgment brought under GCR 1963, 117.2(3). Plaintiff appeals from both orders and we remand for further proceedings consistent with this opinion.
The following facts are not in dispute. Plaintiff has been employed by Chrysler Corporation as an inspector at the Warren Truck Plant since 1953. As a member of the United Auto Workers Union (UAW) she is entitled to group disability benefits under an insurance plan collectively bargained for between the UAW and Chrysler. Employee disability benefits are provided by Chrysler through a policy underwritten by the defendant._
On October 6, 1978, plaintiff sustained serious back injuries when she was involved in an automobile accident. Through her group policy with the defendant, plaintiff applied for and received sickness and accident benefits as well as extended disability benefits until August 22, 1979. In March of 1979, plaintiff was examined by two different doctors pursuant to an "independent medical opinion” (IMO) format developed as part of the labor negotiations between Chrysler and the UAW. The first doctor, an internist, found that plaintiff was able to return to work. The second doctor, an orthopedist, found that plaintiff was able to return to work only under restricted conditions and recommended that she not be required to lift more than ten pounds or engage in repeated bending. Chrysler agreed to consider plaintiff for restricted work only and defendant continued to pay plaintiff disability benefits.
According to plaintiff, she would have enthusiastically accepted restricted employment had it been offered to her but Chrysler never informed her that such work was available. According to the defendant, information was received from Chrysler revealing that plaintiff had been offered and had rejected employment consistent with her restrictions. In any event, defendant terminated plaintiff’s benefits on August 22, 1979.
Pursuant to letter agreements entered into between Chrysler and the UAW in 1976 and 1979, supplementing the master collective-bargaining agreement, an employee’s right to disability benefits became subject to two procedures. The IMO plan was implemented in 1976 and requires an employee to submit to physical examination by an independent physician in order to determine whether that employee is able to return to work. The 1979 supplemental letter agreement between Chrysler and the UAW created a procedure for review of denied or terminated benefits. Where an employee disputes the denial or termination of benefits, he or she may seek review of that decision as follows:
"To afford employees a means by which they can seek review and possible reconsideration of a denied claim, internal procedures of Chrysler Corporation and the Aetna Life Insurance Company will provide a procedure along the following lines:
"(1) The formal notification letter from the plant group insurance representative by which the employee is advised that his claim is denied will inform the employee that if he has any questions regarding the denial they may be referred to the plant group insurance office.
"(2) Upon request, the plant group insurance office will advise what if anything the employee can do to support his claim for payment benefits.
"(3) The employee may request a Union representative to discuss insurance matters with local management to obtain this information.
"(4) Upon request, a representative of local management will review the employee’s case with the Union representative. At this meeting, there will be furnished to the Union representative all the material pertinent to the claim including any detailed explanation of the reasons for the denial of the claim.
"(5) If, after discussion with the representative of local management, the Local Union representative contests the position of management, he can refer the case to the International Union for review with the Corporation in Detroit. At such time he should advise local management of his intention.
"(6) The Corporation and the International Union will review the case, as at present, and if they are unable to resolve their differences the Corporation at the request of the Union will request a review by Aetna and will incorporate in such request the Union’s posi tion. Such review will be conducted by a committee of three employees of Aetna, at least one of whom shall be an officer of Aetna.
"(7) Aetna will report to the International Union and to the Corporation its action as the result of such review.”
Defendant alleges that plaintiff never utilized these procedures and never sought internal review of the defendant’s decision to terminate her benefits and is thus precluded from instituting judicial proceedings to obtain benefits.
Plaintiff responds that because her cause of action is under the insurance contract and not under the collective-bargaining agreement, and because the insurance contract does not provide for or require any petition for internal review prior to instituting civil proceedings, she need not exhaust any remedies provided under the collective-bargaining agreement before filing a judicial action to recover benefits. We disagree.
Plaintiff is not a primary party to the insurance contract under which she seeks benefits. She did not individually purchase an insurance policy from the defendant. The sole parties to the contract are the insurer, defendant, and the policyholder, Chrysler. Any rights that plaintiff may have to collect benefits under the insurance contract are created solely by virtue of her membership in the UAW and by virtue of the collective-bargaining agreement entered into between the UAW and Chrysler. Harris v Metropolitan Life Ins Co, 542 F Supp 1 (Ed Mich, 1980), aff'd 672 F2d 917 (CA 6, 1981). We conclude that the disability insurance in this case constitutes part of an employee benefit plan subject to the Employee Retirement Income Security Act of 1974 (ERISA), 29 USC 1001 et seq. Plaintiff’s disability benefits are funded through an insurance contract sponsored and maintained by Chrysler, an employer engaged in commerce. 29 USC 1002(1) and 1003(a). The question presented here is thus a matter of federal law, 29 USC 1144(a) and (c); Alessi v Raybestos-Manhattan, Inc, 451 US 504; 101 S Ct 1895; 68 L Ed 2d 402 (1981), and conflicting principles of Michigan insurance law are therefore preempted.
The question with which we are presented in the instant case is a narrow one. Plaintiff does not challenge the implementation of the IMO plan. Nor does she challenge the diagnosis of her ability to work on a restricted basis. Whether plaintiff did in fact refuse an offer of restricted employment is not before us nor was it before the trial court by way of summary or accelerated judgment since that question is one of fact and may properly be decided only after a full evidentiary hearing or trial. Our only concern on appeal is whether an employee must exhaust remedies provided under a collective-bargaining agreement prior to instituting judicial action to recover group benefits.
Federal courts considering this issue have uniformly held that a plaintiff seeking benefits covered by ERISA must first exhaust his or her internal collective-bargaining remedies before going to court. Failure to do so is excused only where plaintiff establishes that the remedy would be futile or that he or she was denied access to the internal procedure. Haeberle v Bd of Trustees of Buffalo Carpenters Health-Care, Dental, Pension & Supplemental Funds, 624 F2d 1132 (CA 2, 1980); Amato v Bernard, 618 F2d 559 (CA 9, 1980); Lucas v Warner & Swasey Co, 475 F Supp 1071 (ED Pa, 1979); Taylor v Bakery & Confectionary Union & Industry International Welfare Fund, 455 F Supp 816 (ED NC, 1978). Thus, the trial court in this case did not err in concluding that plaintiff was required to exhaust her contractual remedies prior to instituting her circuit court action.
However, defendant’s failure to provide information adequate to support the trial court’s grant of accelerated judgment requires us to remand this case for further proceedings. On remand, defendant must, at a minimum, establish (1) that the review procedures set forth in the undated letter of agreement between Chrysler and the UAW were in place at the time that plaintiff’s benefits were terminated, and (2) that defendant complied with the review procedures by sending plaintiff the formal notification letter from the plant group insurance representative informing her that she was to refer any questions to the plant group office. The trial court should further determine whether plaintiff’s letter of November 14, 1975, complied with her responsibilities under step two of the review procedures, thus triggering further action on the part of the plant group insurance office. While it is true that plaintiff did not plead an exception to the exhaustion remedy, plaintiff’s attorney did attempt to raise the issue at the hearing on the motions and should be permitted to develop this argument on remand. If the trial court concludes on remand that plaintiff took proper steps to exhaust her contractual remedies prior to instituting suit or that her failure to exhaust her contractual remedies is excused by defendant’s failure to follow same, then the trial court may either resolve plaintiff’s claim for disability benefits or direct the parties to resolve plaintiff’s claim under the review procedures provided.
Reversed and remanded. | [
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Per Curiam.
Plaintiff appeals as of right from a directed verdict granted in favor of defendant after a jury trial.
On February 5, 1978, Ralph Dengler was involved in an automobile accident which, according to the police report, caused considerable damage to his vehicle but no injuries to him. One year later, Mr. Dengler visited his family physician complaining of headaches, which he blamed on the automobile accident the year before. The family physician was unable to relieve Mr. Dengler’s headaches and referred him to a neurologist. The neurologist concluded that the headaches were unrelated to the accident and recommended that a CAT scan be performed. However, before the CAT scan could be performed, Ralph Dengler suffered a subarachnoid hemorrhage, as a result of which he is totally disabled.
Ralph Dengler’s wife, Scarlett, acting individually and as guardian of Ralph Dengler, brought this action against defendant as insurer of their automobile under a standard no-fault automobile policy which provided that defendant would pay all reasonable medical expenses related to any injuries sustained as a result of operation of the automobile.
In reviewing the granting of a motion for directed verdict, this Court must determine, viewing the evidence in the light most favorable to the plaintiff, whether reasonable persons could honestly reach different conclusions as to whether the plaintiff had established a prima facie case. Ransford v Detroit Edison Co, 124 Mich App 537, 542; 335 NW2d 211 (1983).
Plaintiff’s theory was that the automobile accident of February 5, 1978, had caused Ralph Dengler to suffer from hydrocephalus, which in turn caused or contributed to the subarachnoid hemorrhage which disabled Mr. Dengler. However, there was no evidence in the record supporting the crucial links in this chain, those being that the accident caused hydrocephalus, that Mr. Dengler had hydrocephalus, or that the hydrocephalus existed prior to the subarachnoid hemorrhage. One of plaintiff’s experts declined to express an opinion as to any causal relationship between the automobile accident and the subarachnoid hemorrhage. The other expert admitted that his testimony on this point would be pure speculation, and even with that qualification testified that there was only a "remote possibility” that the hydrocephalus preexisted the hemorrhage. This expert opined that there was a "much better possibility” that Mr. Dengler’s subarachnoid hemorrhage was caused by work-related pressures than by hydrocephalus. The proofs, even taken in a light most favorable to the plaintiff, would not enable reasonable minds to conclude that Mr. Dengler had become hydroce phalic as a result of the automobile accident and that the hydrocephalic condition had caused the subarachnoid hemorrhage which resulted in his present disabilities. Plaintiffs failure to establish this vital causal relationship was fatal to her prima facie case.
Plaintiffs complaint that the trial court, in deciding the motion for a directed verdict, improperly considered the testimony elicited during defense counsel’s cross-examination of the plaintiffs witnesses is without foundation. The fact that the evidence must be viewed in a light most favorable to the plaintiff does not mean that damaging evidence must be ignored. The trial court properly granted the defendant’s motion for directed verdict.
Plaintiff also objects to the trial court’s decision to exclude the testimony of Dr. Charles Beau-champ, whom the trial court found to be qualified as an expert in internal medicine but not neurology. Plaintiff attempted to qualify the doctor as an expert in differential diagnosis, which is simply a method by which all possible causes of a condition are listed and then the various causes are ruled out so as to leave the most likely cause or causes of a particular patient’s problem. However, even if Dr. Beauchamp were able to testify as to the three most likely causes of a subarachnoid hemorrhage, it still would have required an expert in neurology to take the next step and rule out all but hydrocephalus. By his own admission, Dr. Beauchamp was unqualified to testify as an expert witness in this area. The decision to allow or exclude the introduction of expert opinion evidence is left to the trial court’s discretion and will not be reversed on appeal absent an abuse of discretion. Slocum v Ford Motor Co, 111 Mich App 127; 314 NW2d 546 (1981), lv den 414 Mich 886 (1982). We find no abuse of discretion.
In her final argument, plaintiff contends that defendant’s refusal to pay duplicating benefits forced Mr. Dengler to go to the veteran’s hospital for treatment and that, therefore, plaintiff is entitled to receive from defendant the difference between the cost of the services Mr. Dengler received at the veteran’s hospital and the cost of those services had Mr. Dengler received those services in a private hospital. This argument is wholly without merit.
Contrary to plaintiff’s assertion, defendant refused to stipulate that the insurance policy in question provided for duplicating benefits. Moreover, the set-off provision of the no-fault act would preclude plaintiff’s recovery of these costs even if the policy did provide for duplicating benefits. That provision states:
"Benefits provided or required to be provided under the laws of any state or the federal government shall be subtracted from the personal protection insurance benefits otherwise payable for the injury.” MCL 500.3109(1); MSA 24.13109(1).
This Court already ruled in Bagley v State Farm Mutual Automobile Ins Co, 101 Mich App 733; 300 NW2d 322 (1980), that this set-off provision applies to medical benefits received from the Veteran’s Administration. Plaintiff has failed to distinguish her case from Bagley, supra, and the reasoning in Bagley is consistent with the Legislature’s intent to reduce or contain the cost of basic insurance. O’Donnell v State Farm Mutual Automobile Ins Co, 404 Mich 524, 544; 273 NW2d 829 (1979), app dis 444 US 803 (1979). Thus, the trial court cor rectly excluded evidence which would have established what Mr. Dengler’s treatment would have cost in a private hospital.
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Per Curiam.
Plaintiff appeals as of right from the denial of its motion for summary judgment and the grant of defendant’s motion for summary judgment dismissing plaintiffs complaint.
The parties agree on the operative facts. Plaintiff, the Detroit Police Officers Association (DPOA), is the exclusive collective-bargaining representative for police officers below the rank of sergeant employed by defendant, the City of Detroit. Under Article 6D of the parties’ collective-bargaining agreement, the police department retained "the right to determine reasonable schedules of work”. The city and DPOA signed an addendum to their collective-bargaining agreement on June 22, 1981, which provided at If 20 for an experimental permanent shift program which was to begin within six months from the date of the agreement, and was to "continue for one year at which time the parties shall negotiate as to whether or not it shall continue”.
Permanent shifts were instituted at two precincts on November 1, 1981. A year later, plaintiff received a letter from the chief of police dated November 1, 1982, in which the chief stated that, pending negotiations concerning extension of the experimental shift program, as agreed to in ¶ 20 of the addendum, the permanent shift assignments would continue. By June 8, 1983, however, presumably under authority of Article 6D, the city announced that it would return to rotating shifts in those precincts on July 3, 1983, unless the DPOA could convince it to do otherwise. Negotiations held during June, 1983, apparently proved fruitless. On June 28, 1983, the DPOA filed a request for a proceeding under 1969 PA 312, as amended, MCL 423.231 et seq.; MSA 17.455(31) et seq., which provides for compulsory arbitration of disputes which occur in police and fire departments. On the same day, this suit was filed, alleging a prospective violation of § 13 of that statute, which reads:
"During the pendency of proceedings before the arbitration panel, existing wages, hours and other conditions of employment shall not be changed by action of either party without the consent of the other but a party may so consent without prejudice to his rights or position under this act.”
In ruling on motions for summary judgment made by each party, the trial court determined that the permanent shifts were not an "existing condition of employment”, and, since defendant retained the right to determine reasonable schedules of work in Article 6D of the parties’ main collective-bargaining agreement, the court decided that the scheduling of work was not a mandatory subject of bargaining under the statute so that defendant was free to unilaterally alter the schedules.
On appeal, plaintiff argues that the scheduling of shifts is one of the "other conditions of employ ment” which are mandatory subjects of bargaining which may not be unilaterally changed by action of either party during the pendency of § 13 proceedings before the arbitration panel. Thus, plaintiff contends, defendant had no authority to revert to rotating shifts once plaintiff had invoked an arbitration hearing.
As suggested in the amicus curiae brief filed by the Detroit Fire Fighters Association, we think that the issue in this case should more appropriately be analyzed as whether the scheduling of shifts constitutes "hours”. When so phrased, it is apparent that the permanent shift program falls under the category "hours”. Act 312 was clearly intended to supplement the public employee relations act (PERA), MCL 423.201 et seq.; MSA 17.455[1] et seq. Local 1277, Metropolitan Council No 23, American Federation of State, County and Municipal Employees, AFL-CIO v Center Line, 414 Mich 642, 652; 327 NW2d 822 (1982). Under § 15 of PERA, issues that fall into the category of "wages, hours, and other terms and conditions of employment” are deemed to be mandatory subjects of bargaining. Id., citing Detroit Police Officers Ass’n v Detroit, 391 Mich 44, 54-57; 214 NW2d 803 (1974). The test generally applied to determine a mandatory subject of bargaining is whether the matter has a significant impact upon wages, hours, or other conditions of employment. Detroit v Michigan Council 25, American Federation of State, County and Municipal Employees, 118 Mich App 211, 215; 324 NW2d 578 (1982), lv den 417 Mich 990 (1983). The scheduling of shifts certainly has an impact on the hours employees work.
Further support for this conclusion comes from federal case law. In general, Michigan has adopted the federal court’s approach as to what constitutes a mandatory subject of bargaining, since the phrase "wages, hours, and other terms and conditions of employment” is taken verbatim from the National Labor Relations Act. Center Line, supra, p 653. The United States Supreme Court long ago settled this point:
"Contrary to the Court of Appeals, we think that the particular hours of the day and the particular days of the week during which employees shall be required to work are subjects well within the realm of 'wages, hours, and other terms and conditions of employment’ about which employers and unions must bargain.” Local Union No 189, Amalgamated Meat Cutters & Butcher Workmen of North America, AFL-CIO v Jewel Tea Co, Inc, 381 US 676, 691; 85 S Ct 1596; 14 L Ed 2d 640 (1965).
More recently, the Eighth Circuit Court of Appeals ruled in American Oil Co v National Labor Relations Board, 602 F2d 184, 186 (1979), that revision of a simplified work schedule fell within the category of "hours” so as to be a mandatory subject of bargaining.
Since we conclude that the permanent shift program was a mandatory subject of bargaining, we must reverse the trial court’s order granting summary judgment for defendant based on GCR 1963, 117.2(1) and (3). Plaintiff not only stated a claim upon which relief may be granted, but, since there appear to be no factual issues, we find that plaintiff is entitled to relief as a matter of law and that the trial court also erred in denying plaintiffs motion for summary judgment. The city violated § 13 by reverting to rotating shifts after plaintiff had invoked the arbitration proceedings. Thus the trial court also erred in dissolving the preliminary restraining order which was to prevent defendant from reinstating rotating shift assignments pending resolution of the arbitration proceedings.
We do not fault the city’s actions; the record indicates that it made every effort to cooperate with plaintiff concerning the experimental shift program. Nor do we dispute the city’s scheduling rights under Article 6. Indeed, it was presumably under authority of Article 6 that defendant extended the permanent shift program while negotiations were being held on the program. We hold only that, once plaintiff initiated arbitration proceedings pursuant to the compulsory arbitration statute, defendant was precluded by § 13 of that statute from unilaterally abrogating the permanent shift program which was still in effect when plaintiff demanded arbitration. The direct effect of § 13 is to preserve the status quo pending arbitration proceedings, and to prevent unilateral action such as defendant proposed in this case.
Reversed and remanded for proceedings consistent with this opinion. | [
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Per Curiam.
Defendant appeals as of right his conviction by a jury of two counts of criminal sexual conduct (CSC) in the first degree, MCL 750.520b(1)(c), 750.520b(1)(e); MSA 28.788(2)(1)(c), 28.788(2)(1)(e). Defendant was sentenced to a term of 6 to 20 years on each count of CSC.
In earlier proceedings, defendant was charged with two counts of CSC while armed with a weapon, MCL 750.520b(l)(e); MSA 28.788(2)(l)(e), and separately charged with armed robbery. Defendant was found guilty on the CSC charges, acquitted of the separate armed robbery charge and, instead, found guilty of attempted armed robbery. This Court affirmed the attempted robbery conviction, but reversed the CSC convictions due to errors in instruction. The case was remanded for retrial of the CSC charges. On remand the jury returned the CSC convictions which defendant now appeals.
Defendant points out that the original information alleged CSC under circumstances involving commission of another felony, MCL 750.520b(l)(c); MSA 28.788(2)(l)(c). The "other felony” was armed robbery, as noted above. Defendant goes on to point out that the prosecution amended the infor mation to allege CSC while armed with a weapon, MCL 750.520b(1)(e); MSA 28.788(2)(1)(e). According to defendant, the decision to so amend the information at the first trial amounted to a permanent election of theories and precluded any reprosecution under MCL 750.520b(1)(c); MSA 28.788(2)(1)(c) on remand. We disagree.
We note that defendant failed to preserve this issue for appeal; at the post-remand trial, defendant did not challenge the information realleging CSC under circumstances involving commission of a felony. Absent some showing of a miscarriage of justice, a defendant may not challenge an information for the first time on appeal, People v Hernandez, 80 Mich App 465; 264 NW2d 343 (1978), lv den 406 Mich 938 (1979).
Even if defendant had properly preserved this issue, his argument would be without merit. This Court’s order reversing and remanding defendant’s original CSC conviction had the effect of nullifying all actions taken during the first trial with respect to those convictions, including the prosecution’s decision to amend the information. See United States v Mischlich, 310 F Supp 669 (D NJ, 1970), aff'd 445 F2d 1194 (CA 3, 1971); cert den 404 US 984; 92 S Ct 449; 30 L Ed 2d 368 (1971), quoted in People v Hamm, 100 Mich App 429; 298 NW2d 896 (1980), lv den 411 Mich 888 (1981). In Hamm, this Court found that a defendant’s waiver of a jury in one trial was nullified by a subsequent order declaring a mistrial. As noted in Mischlich, supra, and again in Hamm, supra:
"The declaration of a mistrial renders nugatory all trial proceedings with the same result as if there had been no trial at all. [Citation omitted.] The situation which exists is analogous to that which results from an appellate reversal and remand for new trial. [Citation omitted.] The parties are returned to their original positions and, at the new trial, can introduce new evidence and assert new defenses not raised at the first trial.” (Emphasis added.) 310 F Supp 669, 672, quoted at 100 Mich App 435.
In Hamm, the Court reasoned that, when defendant made his jury waiver, the waiver only related to his original trial. Similarly, in the present case the prosecutor’s decision to amend the information to allege CSC while armed with a weapon, MCL 750.520b(l)(e); MSA 28.788(2)(l)(e), only related to the original trial, and on remand the prosecution was returned to its original position. That position was manifested in the allegations of the original information which alleged CSC under circumstances involving commission of another felony, MCL 750.520b(l)(c); MSA 28.788(2)(l)(c). It follows that reprosecution under the original information was not only proper, but necessary, based upon the rule announced in Mischlich, supra, and Hamm, supra.
Defendant next contends that he was prejudiced by the nonproduction of two witnesses who had been endorsed by the prosecution, Dr. Brooks Bock and Officer Michael Ledbetter. We find no reversible error. Dr. Bock, a physician who examined the complainant shortly after the incident, was located outside of the jurisdiction at the time of trial. Even if he did qualify as a res gestae witness, People v LaPorte, 103 Mich App 444, 452; 303 NW2d 222 (1981); People v Kirtdoll, 391 Mich 370, 394; 217 NW2d 37 (1974), due diligence excuses production of a witness who is no longer within the state, People v Fournier, 86 Mich App 768; 273 NW2d 555 (1978); People v Serra, 301 Mich 124; 3 NW2d 35 (1942). More importantly, even if defendant could show a lack of due diligence in produc ing Dr. Bock, the fact remains that defense counsel effectively waived production of Dr. Bock. Counsel stipulated to the trial court’s proposal to have Bock’s medical report read into evidence in lieu of having Bock appear at trial to testify. See People v Johnston, 76 Mich App 332; 256 NW2d 782 (1977), where a similar stipulation precluded any objection to the nonproduction of a medical witness. In the present case, neither party disagreed with the trial court’s observation that Bock’s testimony would have added nothing to the medical report which was read into evidence in lieu of that testimony. In short, it is apparent that the parties acquiesced in the nonproduction of Dr. Bock and that the failure to produce him was a harmless error, if error at all.
As to Officer Ledbetter, defendant offers no description of this witness’s role in the incident nor any indication of the potential significance of his testimony. Defendant’s failure to object at trial to this witness’s nonproduction forecloses appellate review absent some showing of manifest injustice. People v Davis, 122 Mich App 597, 605; 333 NW2d 99 (1983). Given defendant’s complete failure to allege, let alone demonstrate, any prejudice which might have resulted from the nonproduction of witness Ledbetter, we conclude that the issue of his nonproduction is not properly before this Court.
Defendant next points to the prosecution’s failure to endorse and produce a witness who was present but asleep at the time of the offense. The witness was identified only as the girlfriend of a Mr. Frank Smith; her name was not known to either the prosecution or defendant at the time of trial. Smith was an eyewitness to the incident; he testified that he saw what occurred by looking out of his bedroom window. Smith later talked to the complainant and testified that his girlfriend had been present in the bedroom at the time, but that she slept through the entire incident and saw nothing of what had taken place. Under these circumstances, we find no basis for defendant’s argument that Smith’s girlfriend was a res gestae witness whose endorsement might have been required by MCL 767.40; MSA 28.980.
A res gestae witness is defined as "one who was an eyewitness to some event in the continuum of a criminal transaction and whose testimony will aid in developing a full disclosure of the facts”. People v Hadley, 67 Mich App 688, 690; 242 NW2d 32 (1976). In the present case, Smith’s girlfriend was not an eyewitness to any event in the criminal transaction. Her status is analogous to that of the "witness” in People v Meatte, 98 Mich App 74; 296 NW2d 190 (1980), a neighbor who was infirm, hard of hearing and asleep at the time of an altercation. She was not in any position to view any of the events underlying the transaction and her testimony would not have aided in reproducing the events in question. Hadley, supra.
Defendant has similarly failed to properly preserve this issue for appeal. Defendant did not seek a hearing at the trial court level, either during or after trial, to determine this witness’s identity and status as a possible res gestae witness. Thus, even if we could agree that this witness was a res gestae witness, defendant’s failure to meet this requirement precludes appellate review. People v Willie Pearson, 404 Mich 698; 273 NW2d 856 (1979); People v Caldwell, 122 Mich App 618; 333 NW2d 105 (1983).
Defendant next contends that he was deprived of a fair trial when the trial court sua sponte gave a cursory instruction describing defendant’s theory of the case. The court merely stated: "The defendant has suggested to you in his theory of the defense [sic], that the prosecutor has not sustained his burden.” This instruction cannot serve as grounds for reversal where defendant failed to object at trial. Neither party requested specific jury instructions on their respective theories of the case, GCR 1963, 516.7. Accordingly, we do not believe that the trial court was obliged to give any sua sponte instruction setting forth either party’s theory. In this regard, we choose to follow the reasoning set forth in People v Gary Wilson, 122 Mich App 1; 329 NW2d 513 (1983); People v Jansson, 116 Mich App 674; 323 NW2d 508 (1982); People v Trammell, 70 Mich App 351; 247 NW2d 311 (1976), and People v Peery, 119 Mich App 207; 326 NW2d 451 (1982). We disagree with those panels which have held that a trial court must give a full sua sponte instruction describing a defendant’s theory even in the absence of a request for such an instruction, Cf. People v Gayton, 81 Mich App 390; 265 NW2d 344 (1978); People v Stanley Jones, 69 Mich App 459; 245 NW2d 91 (1976); People v Hearn, 100 Mich App 749; 300 NW2d 396 (1980). The rule announced in those cases is inconsistent with the language of GCR 1963, 516.7, which presupposes a request for an instruction as to a party’s theory. Even if a sua sponte instruction were required, the trial court did take the step of giving an instruction, however cursory it might have been.
We note that once again defendant has failed to properly preserve this issue for appeal. Defendant did not object at trial to the court’s formulation of his theory and the absence of any timely objection precludes appellate review absent a showing that manifest injustice resulted from the instruction. People v Jackson, 98 Mich App 735; 296 NW2d 348 (1980); People v Branner, 53 Mich App 541; 220 NW2d 183 (1974), lv den 392 Mich 814 (1974). We conclude that there was no manifest injustice, given defendant’s complete failure to explain how the challenged instruction might have prejudiced his case.
Defendant’s final argument on appeal does have merit and requires reversal of his earlier conviction for attempted armed robbery. Defendant contends that, given his initial conviction of attempted armed robbery, his subsequent conviction of CSC under circumstances involving commission of a felony violated the constitutional prohibition against double jeopardy. We agree. The felony underlying the CSC conviction now on appeal is the same armed robbery for which defendant has already once been tried. There is a split of opinion among panels of this Court as to whether it is a due process violation to convict a defendant of CSC "under circumstances involving commission of a felony”, MCL 750.520b(1)(c); MSA 28.788(2)(1)(c), while separately charging and convicting for the underlying felony. People v Robideau, 94 Mich App 663; 289 NW2d 846 (1980), lv gtd 412 Mich 871 (1981); People v Ferrell, 99 Mich App 609; 299 NW2d 366 (1980). Cf. People v Charles Thompson, 117 Mich App 522; 324 NW2d 22 (1982); People v Swearington, 84 Mich App 372; 269 NW2d 467 (1978); People v Peete, 102 Mich App 34; 301 NW2d 53 (1980), lv den 411 Mich 962 (1981); People v Bouknight, 106 Mich App 798; 308 NW2d 703 (1981), lv gtd 412 Mich 871 (1981).
So long as the double jeopardy question remains unresolved by the Supreme Court, we choose to follow the rule announced in Thompson, supra, Swearington, supra, Peete, supra, and Bouknight, supra. Defendant has already been charged and tried once for armed robbery, and has been convicted of the lesser included offense of attempted armed robbery, People v Lovett, 396 Mich 101; 238 NW2d 44 (1976), reh den 396 Mich 976 (1976). To convict him now for CSC "under circumstances involving commission of another felony” violates the double jeopardy clause, since the underlying felony is the same armed robbery for which defendant has already been placed in jeopardy.
The conviction for attempted armed robbery is superfluous and should be vacated. The matter is remanded for entry of an order vacating the conviction for attempted armed robbery. The convictions of two counts of CSC in the first degree are affirmed.
Affirmed in part and reversed in part.
Although we find a double jeopardy violation in defendant’s multiple convictions, we would not go so far as to find a violation in the mere fact that defendant was retried for CSC "under circumstances involving commission of’ the felony of armed robbery. The present case is distinguishable from that cited by defendant, People v MacPherson, 21 Mich App 385; 175 NW2d 828 (1970). In that case the defendant was acquitted of rape but convicted of a lesser charge, assault with intent to commit rape. He successfully moved for a new trial, and was retried on the greater charge, rape. This Court found a double jeopardy violation in the decision to reprosecute on the greater charge, of which the defendant had already been acquitted. Here, defendant is not being reprosecuted for armed robbery itself, but instead for a specific type of criminal sexual conduct which merely includes that felony as an element of the offense. He does not face unconstitutional multiple punishment so long as his conviction for attempted armed robbery is vacated and only a single sentence is imposed for the conduct involved in this offense. | [
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E. A. Quinnell, J.
Plaintiff appeals on leave granted by this Court from a decision of the Workers’ Compensation Appeal Board (WCAB), which held that MCL 418.351(2); MSA 17.237(351)(2), as amended by 1980 PA 357, was applicable in the calculation of the amount of workers’ compensation benefits to which he was entitled.
This appeal has its genesis in a severe back injury which plaintiff suffered in July, 1964, during the course of his employment with defendant Chrysler Corporation. Plaintiff was ultimately found to be permanently and totally disabled, and the ongoing nature of his disability is not in issue for purposes of this appeal.
Defendant Chrysler Corporation paid basic benefits and defendant Second Injury Fund paid differential benefits to plaintiff through November 7, 1979, when the statutory 800-week conclusive presumption of total and permanent disability expired. At that time, defendants terminated paying benefits in reliance on Clark v Gerity Michigan Corp, 84 Mich App 151; 269 NW2d 510 (1978), lv den 403 Mich 856 (1978). Plaintiff sought a hearing to review the propriety of the termination. The termination of benefits was upheld by a workers’ compensation referee. While plaintiff’s appeal to the WCAB was pending, Ferns v Russ Graham Shell Service, 413 Mich 550; 321 NW2d 380 (1982), was decided by the Michigan Supreme Court. In Ferns, the Court held that disability benefits continue to be payable after the 800-week period of conclusively presumed total and permanent disability unless and until the employer petitions for a determination that the employee is no longer permanently and totally disabled. The burden of showing the absence of disability is on the employer.
After Ferns, defendants recommenced paying workers’ disability compensation benefits, although they both filed petitions to stop benefits, asserting that plaintiff is no longer disabled. The Ferns decision did not result in the discontinuance of the appeal to the WCAB. Defendants argued that they should not have to pay interest on the disability benefits they had withheld before Ferns was decided. This issue was resolved against defendants by the WCAB and is not an issue on appeal. See, Selk v Detroit Plastic Products, 419 Mich 1; 345 NW2d 184 (1984). Plaintiff argued that MCL 418.351(2); MSA 17.237(351X2), as rewritten by 1980 PA 357, effective January 1, 1982, should not have been applied in the calculation of the benefits due him. The WCAB disagreed, and this Court granted leave to appeal to address this issue.
MCL 418.351(2); MSA 17.237(351)(2) now provides:
"A totally and permanently disabled employee whose date of injury preceded July 1, 1968, is entitled to the compensation under this act that was payable to the employee immediately before the effective date of this subsection, or compensation equal to 50% of the state average weekly wage as last determined under section 355, whichever is greater.”
Contemporaneously with the amendment of MCL 418.351(2); MSA 17.237(351)(2), 1980 PA 357 established a new maximum compensation rate by amendment to MCL 418.355; MSA 17.237(355). Effective January 1, 1982, the new maximum compensation rate became 90% of the state average weekly wage as of the prior June 30, adjusted annually. Prior to January 1, 1982, the maximum benefit compensation rate was 66-2/3% of the state average weekly wage. According to the WCAB’s opinion, and not contradicted by either party, the amendment of MCL 418.355; MSA 17.237(355) resulted in the maximum weekly benefit being increased from $210 in 1981 to $307 in 1982. Plaintiff argued before the WCAB, and now on appeal, that he is entitled to the new increased benefit rate. The WCAB disagreed. Applying MCL 418.351(2); MSA 17.237(351)(2), it concluded that plaintiff was entitled to $210, the amount he re ceived for the last week of 1981. If MCL 418.351(2); MSA 17.237(351)(2) is applicable to plaintiff, he will continue to receive benefits of $210 a week and will not receive an increase in his compensation benefits unless and until the state average weekly wage exceeds $420.
Plaintiff relies on King v Second Injury Fund, 382 Mich 480; 170 NW2d 1 (1969), for the proposition that he is entitled to compensation at the rate of $307 per week. In King, the Supreme Court held that statutory language which limited weekly compensation benefits to 66-2/3% of the employee’s weekly wage at the time of the injury only applied to the payment of benefits from the employer or the employer’s insurer. However, the Court concluded that the Second Injury Fund was obligated to pay differential benefits in the full amount between the employer’s payment and the maximum rate payable for the employee’s dependency classification. The effect of the King decision was to allow totally and permanently disabled persons to receive the benefit of subsequent legislative increases in the maximum allowable compensation rate by requiring the increased rate to be applied in determining differential benefits.
It is apparently plaintiff’s position that King precludes limiting or abridging increases in benefits for totally and permanently disabled employees. We disagree. In our view, King represents nothing more than a construction of the then existing provision of the workers’ compensation statute. The King decision does not suggest that increases in the rate of differential benefits may not be limited by the Legislature. Rights to benefits under the workers’ compensation scheme are purely statutory, and the Legislature has the prerogative to redefine the extent of those benefits. Kunde v Teesdale Lumber Co, 52 Mich App 360, 371; 217 NW2d 429 (1974), lv den 391 Mich 841 (1974); McKenna v Chevrolet-Saginaw Grey Iron Foundry, 63 Mich App 365, 373-374; 234 NW2d 526 (1975), lv den 395 Mich 827 (1976).
The purpose of statutory construction is to discover and effectuate the intent of the Legislature. Melia v Employment Security Comm, 346 Mich 544, 562; 78 NW2d 273 (1956). The language of MCL 418.351(2); MSA 17.237(351)(2), purporting to limit increases in the weekly maximum compensation benefit rate, was enacted as part of 1980 PA 357. This bill was intended to reform Michigan’s workers’ disability compensation scheme by, in part, reducing the overall costs of the system to bring workers’ compensation costs more in line with surrounding states. See, the Senate Analysis of Senate Bill 1044 as enrolled (1980 PA 357), dated January 7, 1981. The Senate Analysis of Senate Bill 1044 indicates:
"A totally and permanently disabled employee who was disabled before July 1, 1968 will be entitled to compensation at the rate which would have been payable to the employee as of December 31, 1981 or to compensation equal to one-half the state average weekly wage as last determined by the Michigan Employment Security Commission as of January 1, 1982, whichever level of compensation is greater.”
Moreover, were we to hold that MCL 418.351(2); MSA 17.237(351)(2) does not operate as a limit on plaintiffs compensation benefits, we would be violating a key precept of statutory construction, namely, that every phrase, clause, and word in a statute must be given effect, if possible. Melia, supra. To construe MCL 418.351(2); MSA 17.237(351)(2) in the manner suggested by plaintiff would literally render it wholly ineffective. Because, under King, an employer would never be required to pay a totally and permanently disabled employee compensation benefits in excess of 66-2/ 3% of that employee’s average weekly wage at the time of his injury, MCL 418.351(2); MSA 17.237(351)(2) cannot be intended to impose a limitation on the maximum primary benefit payment which an employer must make to a totally and permanently disabled worker. Instead, it must apply to the Second Injury Fund’s prior statutory obligation to pay differential benefits to totally and permanently disabled claimants injured prior to July 1, 1968, in the full amount of the difference between the employer’s payment and the maximum benefit payable under the statute. As the employer’s rate of payment of benefits is fixed at the time of the injury, MCL 418.351(2); MSA 17.237(351X2), to be given effect, must be viewed as providing a new method for calculating increases in the differential benefits which the Second Injury Fund is obligated to pay to King plaintiffs. This was the conclusion of the WCAB, and we agree with this conclusion.
Affirmed. No costs, an important issue of statutory construction being crucial to the resolution of this appeal.
Of this $210, $36 was paid by defendant Chrysler Corporation as representing 66-2/3% of plaintiff’s average weekly wage at the time of his injury. The remaining $174 was paid by the Second Injury Fund as a differential payment.
In reaching this conclusion, the Court relied on language appearing in MCL 412.9(a); MSA 17.159(a), since repealed, requiring the Second Injury Fund to make differential payments "for the duration of the permanent and total disability according to the full rate provided in the schedule of benefits”. (Emphasis added.)
As of July 1, 1968, no more King plaintiffs were to appear on the scene because of the enactment of 1968 PA 227, effective July 1, 1968, which eliminated the automatic escalator effect. As amended by Act 227, the statutory sections governing differential payments by the Second Injury Fund, MCL 417.53; MSA 17.230(103) and MCL 412.9; MSA 17.159, no longer contained the language, noted in fn 2, supra, requiring the Second Injury Fund to pay differential benefits accord ing to the "full rate”. Thus, for persons who became totally and permanently disabled after July 1, Í968, the Fund’s obligation to pay differential benefits was limited to two-thirds of those persons’ actual weekly wage.
Indeed, as the following excerpt from the Senate Analysis of the bill shows, the major opposition to its enactment centered on its perceived pro-business bias:
"Supporting Argument:
"The new law addresses most of the workers’ compensation prob lems cited by businesses over the past ten years. It also addresses labor’s concerns over inadequate compensation levels. While Public Act 357 is not the whole solution to the problems of workers’ compensation in Michigan it is a reasonable compromise and a balanced and significant first step toward equitable, effective reform.
"Response: It is misleading to talk of 'balanced’ reform when so little actuarial information is available on the measure. Many of the reforms included here will require judicial or administrative interpretation, and it remains to be seen whether this new law will have any positive impact on the costs or effectiveness of Michigan’s workers’ compensation system.
"Opposing Argument:
"This measure is heavily pro-business; its only significant concession to labor is an increase in the maximum weekly benefit levels. Failure to include a future cost-of-living adjustment in benefit levels will mean that long-term disabled employees will continue to be locked into fixed incomes and will continue to be forced to seek other means of support — most often General Assistance at taxpayers’ expense. | [
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J. N. O’Brien, J.
In this case, plaintiff appeals as of right from a circuit court order granting defendant Drzewiecki’s motion for summary judgment. Defendant Drzewiecki moved for summary judgment pursuant to GCR 1963, 117.2, subds (1) and (3), and the circuit court did not specify which subrule provided the basis for its decision. However, because defendant Drzewiecki filed no affidavits or other evidence contradicting any of the allegations of fact in plaintiff’s complaint, and because the circuit court stated in its decision that it would assume for the purpose of resolving the motion that plaintiff’s allegations of fact were true, we will treat the circuit court’s decision as holding that plaintiff had failed to state a claim on which relief could be granted, GCR 1963, 117.2(1). A motion for summary judgment pursuant to GCR 1963, 117.2(1) tests the legal sufficiency of the complaint and should not be granted unless, accepting as true the factual allegations in the complaint, plaintiff’s claim is so clearly unenforceable as a matter of law that no factual development could possibly justify a right to recovery. See, for example, Fidelity & Deposit Co of Maryland v Newman, 109 Mich App 620, 622-623; 311 NW2d 821 (1981).
According to plaintiff’s complaint, plaintiff is the sister of defendant Drzewiecki and the mother of William M. Klimek, who was four years old at the time the incident on which this action is based took place. While plaintiff and her child were social guests at defendant Drzewiecki’s house, the child was bitten on the face by a dog belonging to defendant Ridley, a neighbor of defendant Drzewiecki. Plaintiffs complaint alleged that the dog’s attack was unprovoked, that defendant Drzewiecki knew at the time of the accident that the dog was loose and unsupervised, that the dog had previously bitten someone, and that the child was outside the residence without adult supervision.
Where there is no legal duty, there can be no actionable negligence. Butrick v Snyder, 236 Mich 300, 306; 210 NW 311 (1926). The arguments of defendant Drzewiecki in circuit court and on appeal have been based on a supposed lack of duty. Defendant Drzewiecki correctly points out that he did not owe to plaintiff or her child the duty that the owner of the dog owed under the circumstances presented. Compare MCL 287.351; MSA 12.544. However, plaintiff relies on the duty owed by occupiers of land to their social guests.
In Preston v Sleziak, 383 Mich 442, 453; 175 NW2d 759 (1970), the Court explained:
"[I]n this jurisdiction the adult social guest is to be viewed as a licensee.
"The duty which occupiers of land owe their licensees is best expressed by 2 Restatement Torts, (2d), § 342, p 210:
" 'A possessor of land is subject to liability for physical harm caused to licensees by a condition on the land if, but only if,
" '(a) the possessor knows or has reason to know of the condition and should realize that it involves an unreasonable risk of harm to such licensees, and should expect that they will not discover or realize the danger, and
" '(b) he fails to exercise reasonable care to make the condition safe, or to warn the licensees of the condition and the risk involved, and
" '(c) the licensees do not know or have reason to know of the condition and the risk involved.’ ”
We hold that a loose, unsupervised and dangerous dog either on defendant’s land or in close proximity to defendant’s land without any obstacle to prevent it from entering defendant’s land is a "condition on the land” as that term was used in Preston and the Restatement. Defendant Drzewiecki therefore owed to plaintiff and her child the duty specified in 2 Restatement Torts, (2d), § 342, p 210. Plaintiffs complaint was sufficient to state a claim upon which relief could be granted for breach of that duty.
Moreover, the rule stated in Preston was expressly limited to adult social guests. No Michigan authority since Preston had discussed the duty owed by an occupier of land to a child social guest. See, however, Moning v Alfono, 400 Mich 425, 444-445; 254 NW2d 759 (1977), in which the Court recognized that, where children are involved, special rules imposing higher degrees of care are not unusual. In 62 Am Jur 2d, Premises Liability, § 135, p 402, the trend in other jurisdictions is summarized:
"The rule that a social guest is a licensee to whom the host owes only the duty to refrain from active wrongdoing, and to warn of dangers known to him and not likely to be discovered by the guest, is applied to child social guests in a number of jurisdictions; but in an increasing number of jurisdictions, the courts hold the host to a duty of reasonable or ordinary care to prevent injury to a child social guest.” (Footnotes omitted.)
See also Anno: Liability for injury or death of child social guest, 20 ALR3d 1127, § 3(b), pp 1136-1140, and the cases discussed therein. These authorities lead us to recognize a duty on the part of occupiers of land owed to a child social guest to exercise reasonable or ordinary care to prevent injury to the child. Plaintiffs complaint was sufficient to state a claim on which relief could be granted for breach of such a duty.
Reversed and remanded for further proceedings consistent with this opinion. We retain no jurisdiction. | [
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Per Curiam.
Plaintiff appeals as of right the circuit court’s order of summary judgment pursuant to GCR 1963, 117.2(1), dismissing plaintiff’s complaint against defendants.
Plaintiffs husband, Fred J. Riddle, was employed by U. S. Truck Company, Inc. After filing a worker’s compensation claim against U. S. Truck for alleged injuries sustained during the course of his employment, Mr. Riddle died. Charles E. Mann (hereinafter defendant), a member of the defendant law firm Lacey & Jones, represented U. S. Truck in the worker’s compensation proceedings. Plaintiff appeared in propria persona at the redemption hearing, having released her husband’s attorney and withdrawn the petition for worker’s compensation benefits. At the hearing, plaintiff entered into • a settlement agreement with U. S. Truck whereby the company would issue a check to her for $1,024.50, which she would endorse and return to U. S. Truck. The money would then be used to pay the overdue premiums, which U. S. Truck was responsible for paying, on Mr. Riddle’s life insurance policy with Teamster’s Health and Welfare Fund. The life insurance policy was then to be reinstated, and plaintiff would receive $15,000, the face value of the policy. Plaintiff testified that she understood the settlement agreement and that she had discussed its terms with several attorneys, with a representative of the Teamster’s Health and Welfare Fund and with defendant.
A redemption order was issued in accordance with the terms of the settlement agreement. After the order became final, defendant sent U. S. Truck’s check to plaintiff, who endorsed and returned it to defendant. Defendant forwarded the check to U. S. Truck, who then sent it to the Teamster’s Health and Welfare Fund. The Teamster’s Health and Welfare Fund refused to accept the check and reinstate the life insurance policy.
On December 31, 1981, plaintiff filed a complaint against U. S. Truck, seeking to enforce the redemption agreement. U. S. Truck, which was self-insured for workers’ compensation liability benefits, later filed a bankruptcy petition in the federal bankruptcy court and plaintiff’s complaint was automatically stayed pursuant to 11 USC 362(a)(1).
Plaintiff filed the instant complaint on August 4, 1982. She alleged that defendant breached a duty to refrain from negligently misrepresenting the intentions and conduct of U. S. Truck "and others” regarding the settlement agreement. Plaintiff also alleged promissory estoppel against defendant. Plaintiff alleged liability on the part of defendant Lacey & Jones based on the doctrine of respondeat superior. Defendants moved for summary judgment pursuant to GCR 1963, 117.2(1), which was granted by order of the trial court on June 7, 1983.
We find that the trial court properly granted summary judgment to defendants. A motion for summary judgment pursuant to GCR 1963, 117.2(1) is tested with reference to the pleadings alone and tests only the legal and not the factual sufficiency of the pleadings. All well-pleaded facts are accepted as true, and this Court looks to whether plaintiff’s claims are so clearly unenforceable as a matter of law that no factual development can possibly justify recovery. Merit Electric Co, Inc v J Boyle, Inc, 77 Mich App 503; 258 NW2d 539 (1977).
Count I of plaintiff’s complaint alleges negligent misrepresentation on the part of defendant in representing the intentions of U. S. Truck "and others”. Since plaintiff never alleges in her complaint that defendant’s representations were false, we interpret this count to be an allegation of "innocent misrepresentation” rather than "traditional misrepresentation” or "ordinary fraud”. The doctrine of "innocent misrepresentation” has long been recognized in Michigan. Converse v Blumrich, 14 Mich 109; 90 Am Dec 230 (1866). This doctrine differs from the traditional rule of misrepresentation in that it requires that the misrepresentation, which may have been innocently made, cause the victim not only to suffer injury, but also that the injury inure to the benefit of the other. United States Fidelity & Guaranty Co v Black, 412 Mich 99, 115-118; 313 NW2d 77 (1981). Here, plaintiff has failed to allege any benefit which would inure to defendant as a result of her injury. Even had this element been pled, no factual development could possibly justify recovery. The injury suffered by plaintiff was either the loss of her claim against U. S. Truck or the loss of the $15,000 insurance benefit caused by the Teamster’s Health and Welfare Fund’s refusal to reinstate the life insurance policy. In either event, the loss did not inure to the benefit of defendant, who received a fee for his services regardless of whether plaintiff was ever paid.
Borland-McBrearty v Bianco, 22 Mich App 42; 176 NW2d 712 (1970), relied upon by plaintiff, is inapposite. Plaintiff’s complaint does not allege the existence of any warranty of authority and it is clear from the review of the record that defendant never held himself out as acting on behalf of the Teamster’s Health and Welfare Fund. We likewise find People’s Furniture & Appliance Co v Healy, 365 Mich 522; 113 NW2d 802 (1962), to be distinguishable. In Helay, unlike the situation in the present case, the defendant’s benefit was a direct result of the fraud perpetrated on the plaintiff.
We also find plaintiff’s complaint to be deficient based upon principles of agency law as summarized in 2 Restatement Agency, 2d, § 320, p 67:
"Unless otherwise agreed, a person making or purporting to make a contract with another as agent for a disclosed principal does not become a party to the contract.”
Comment (a) to § 320 explains, in pertinent part:
"Whether or not a person purporting to act as agent for another becomes a party to the contract depends upon the agreement between such person and the other party. See § 146. As stated in Section 4, a principal is disclosed if, at the time of making the contract in question, the other party to it has notice that the agent is acting for a principal and of the principal’s identity. One who purports to contract on behalf of a designated person does not manifest by this that he is making a contract on his own account, and only where he so manifests does the agent become a party to the contract which he makes for the principal. In the absence of other facts, the inference is that the parties have agreed that the principal is, and the agent is not, a party.” (Emphasis added.)
As an agent for a disclosed principal, defendant cannot be held liable for his principal’s failure to perform. Count II of plaintiffs complaint, based upon promissory estoppel, is not viable because of these agency principles. Any promise made by defendant was clearly made on behalf of his principal, U. S. Truck.
Count III of plaintiff’s complaint alleged liability on the part of defendant Lacey & Jones based upon the doctrine of respondeat superior. Since we find that summary judgment was correctly granted as to Counts I and II, this derivative count was also properly dismissed.
We find no error in the trial court’s refusal to allow plaintiff to amend her complaint by alleging additional causes of action in her trial brief. The grant or denial of a motion to amend is within the discretion of the trial judge. GCR 1963, 118. Plaintiff’s additional theories were not properly brought before the trial court. No abuse of discretion occurred. Our holding on the previous two issues obviates the need to address plaintiffs remaining contention.
Affirmed. Costs to defendants. | [
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R. M. Daniels, J.
In this action for libel, defendant appeals by leave granted from a circuit court order denying its motion for summary judgment pursuant to GCR 1963, 117.2(1). Such a motion for summary judgment tests the legal sufficiency of the complaint and should not be granted unless, accepting as true all well-pled facts in the complaint, the plaintiff’s claims are so clearly unenforceable as a matter of law that no factual development could possibly justify a right to recover. See, for example, Karr v Bd of Trustees of Michigan State University, 119 Mich App 1, 3-4; 325 NW2d 605 (1982).
Plaintiff’s complaint cites an article published in defendant’s newspaper, The Detroit News, concerning the shooting death of plaintiff’s son, Wilson Curtis. The complaint alleges that the article contained false statements in implying that Wilson Curtis was a person of immoral, unchaste, violent, and criminal character and that these character traits led to his death. We note that defendant has admitted that the article contained false statements and has published a retraction. Plaintiffs complaint alleges that publication of the false statements in the article subjected her to ridicule and scorn and damaged her reputation.
In Postill v Booth Newspapers, Inc, 118 Mich App 608, 618; 325 NW2d 511 (1982), the Court explained the essential elements of a cause of action like that at issue here:
"To demonstrate liability for defamation, the following elements must be proven: (a) a false and defamatory statement concerning plaintiff; (b) an unprivileged publication to a third party; (c) fault amounting at least to negligence on the part of the publisher; and (d) either actionability of the statement irrespective of special harm (defamation per se) or the existence of special harm caused by the publication (defamation per quod). ” (Emphasis added.)
Plaintiff does not allege that the article contained any explicit or implicit reference to her. Instead, she relies on the damage to her reputation resulting from publication of false statements concerning her son. Because plaintiff failed to allege that defendant published a false and defamatory statement "concerning plaintiff’, plaintiff failed to state a claim on which relief could be granted, and the circuit court erred by denying defendant’s motion for summary judgment.
This result is supported by decisions from other jurisdictions indicating that indirect damage to a plaintiff’s reputation resulting from defamation of a deceased relative is insufficient to support an action for libel. McBeth v United Press International, Inc, 505 F2d 959, 960 (CA 5, 1974); Justice v Belo Broadcasting Corp, 472 F Supp 145, 148 (ND Tex, 1979); Meeropol v Nizer, 381 F Supp 29, 35 (SD NY, 1974); Lee v Weston, 402 NE2d 23, 26-30 (Ind App, 1980); Coulon v Gaylord Broadcasting, 433 So 2d 429, 431-432 (La App, 1983); Gonzales v Times Herald Printing Co, 513 SW2d 124, 125-126 (Tex Civ App, 1974).
The cases on which plaintiff relies do not support her position. In Hughes v New England Newspaper Publishing Co, 312 Mass 178, 179-180; 43 NE2d 657 (1942), the Court held:
"The general rule is that a libel upon the memory of a deceased person that does not directly cast any personal reflection upon his relatives does not give them any right of action, although they may have thereby suffered mental anguish or sustained an impairment of their social standing among a considerable class of respectable people of the community in which they live by the disclosure that they were related to the deceased. * * * The false statement that Hughes committed suicide and left a widow did not constitute a libel on the latter. That statement, which was entirely directed against Hughes, charged him with having committed suicide in accordance with an agreement with his business associates, and clearly implied that no one else had any connection with his death. His widow was not charged with any wrongdoing or with any connection with her husband’s act. There are instances where the publication of a written statement concerning one person is of such a nature that it imports misconduct upon the part of another. To publish that a third person is an illegitimate child or that he is the husband of a faithless wife or that a married man is single and about to be married imputes immorality to the mother or wife. * * * This principle is not applicable where, as here, the natural effect of the mere statement that the husband took his own life would not cast any aspersion upon his widow.” (Citations omitted.)
Similarly, in Kelly v Johnson Publishing Co, Inc, 160 Cal App 2d 718, 725-726; 325 P2d 659 (1958), the Court held:
"[N]o civil action will lie for the defamation of one who is dead, unless there is a reflection upon those still living, who are themselves defamed. * * *
"The article did not make reference to plaintiffs in any way; it was not of or concerning plaintiffs. The specific allegation is that the publication was 'of and concerning the said Cecil Lewis Thompson.’ The false statement that Thompson 'wound up a dope-sodden derelict on the shadowy San Francisco waterfront where one morning his knife-scarred body was fished from the Bay’ did not constitute a libel on his sisters. The publication did not expressly or impliedly cast any personal reflection on them. The fact that the article was false as to Thompson does not operate to give plaintiffs a right of action. * * * Plaintiffs were not charged with any misconduct or wrongdoing, or with any connection with Thompson’s habits, status, or death. The article was not directed against plaintiffs and did not tend to expose them to hatred, contempt, ridicule, or obloquy.” (Citations omitted.)
These cases recognize the possibility that a defamatory publication concerning a deceased person may also involve actual defamation of relatives of the deceased person, but they also demonstrate that the publication at issue here was insufficient to support plaintiff’s cause of action.
Reversed. | [
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Per Curiam.
On April 24, 1981, both defendants were convicted, after a jury trial, of armed robbery, MCL 750.529; MSA 28.797. Defendant Davis was subsequently sentenced to 20 to 30 years imprisonment. Defendant Calloway was subsequently sentenced to 15 to 25 years imprisonment. Both appeal as of right. Their cases have been consolidated on this appeal.
The trial court gave the following jury instruction:
"Your verdict must be unanimous, and that’s important. There is no room for compromise in criminal cases. I rather suspect that a lot of people think it is appropriate. Obviously, there is compromise here. It’s got to be one way or the other. But what we’re talking about is each one of you individually making a judgment as to the accusation against each defendant, and only when all twelve jurors have arrived at the very same verdict do you then have a unanimous verdict, and I’m going to spend a little bit of time talking to you about something else that ordinarily I don’t discuss in any great length, the choosing of a foreman.
"Sometimes I don’t think jurors give enough consideration as to who the foreman or forelady is going to be, and I’m very direct in saying to you that we’ve had cases in the past where the jurors are not able to arrive at a verdict. Now, maybe that’s all for the best, I’m not quarreling, but I do feel that one of the factors that allows a juror to arrive at a verdict — and, remember, everybody wants a verdict here, nobody wants a no verdict — we want a verdict, whether it’s prosecution or defendant; they want you to return a verdict in this case.”
The jury returned its verdict for this four-day trial after deliberating about one and one-half hours.
In People v Sullivan, 392 Mich 324; 220 NW2d 441 (1974), the Supreme Court disavowed the deadlocked jury instruction approved in Allen v United States, 164 US 492; 17 S Ct 154; 41 L Ed 528 (1896), and adopted the following ABA proposed instruction.
"(a) Before the jury retires for deliberation, the court may give an instruction which informs the jury:
"(i) that in order to return a verdict, each juror must agree thereto;
"(ii) that jurors have a duty to consult with one another and to deliberate with a view to reaching an agreement, if it can be done without violence to individual judgment;
"(iii) that each juror must decide the case for himself, but only after an impartial consideration of the evidence with his fellow jurors;
"(iv) that in the course of deliberations, a juror should not hesitate to reexamine his own views and change his opinions if convinced it is erroneous; and
"(v) that no juror should surrender his honest conviction as to the weight or eifect of the evidence solely because of the opinion of his fellow jurors, or for the mere purpose or returning a verdict.”
This instruction applies to the original jury instructions as well as to the instructions after a jury has deadlocked. People v Goldsmith, 411 Mich 555; 309 NW2d 182 (1981). It emphasizes that no juror need surrender his own honest convictions solely to obtain a unanimous Verdict. Id. The issue on appeal is whether or not the trial court has substantially departed from the ABA instruction. People v Nathaniel Johnson, 113 Mich App 414, 420; 317 NW2d 645 (1982); People v Allen, 102 Mich App 655; 302 NW2d 268 (1981), lv den 411 Mich 870 (1981). A defendant’s failure to object does not preclude appellate review. People v Johnson, 112 Mich App 41; 314 NW2d 794 (1981).
In the present case, the trial court’s instructions told the jury to arrive at a unanimous verdict without also telling it that no juror is to give up his or her honestly held belief merely to arrive at a unanimous verdict. As it turns out, the trial court gave the ABA instruction part (i) and parts of (ii) and (iii) but completely ignored parts (iv) and (v).
The prosecution relies on People v Bookout, 111 Mich App 399; 314 NW2d 637 (1981). However, in Bookout, the trial court specifically instructed the jury that it must arrive at a unanimous verdict "without surrendering your conscious belief’. 111 Mich App 402. Such an instruction was not given in the present case. In fact, even though that instruction was given in People v Harman, 98 Mich App 541; 296 NW2d 303 (1980), the Supreme Court reversed, 411 Mich 1083; 312 NW2d 83 (1981).
In People v Atkinson, 120 Mich App 723, 729; 328 NW2d 102 (1982), this Court ruled that "any language employed by the trial court aimed at encouraging the jury to reach a decision constitutes a 'substantial departure’ from the ABA charge unless the ABA standard instructions 'sanctions such a charge’ ”. In the present case, in effect, the trial court’s only instruction on this point was that the jury arrive at a unanimous verdict. This is clearly a substantial departure from the ABA standard.
Only defendant Davis has raised this issue on appeal. However, both defendants were tried in a joint trial. The trial court’s instructions applied to both of them. Moreover, this Court consolidated these appeals for purposes of decision. Under these circumstances, we believe that Calloway’s conviction must be reversed on the same basis as Davis’s conviction.
Reversed and remanded for a new trial. | [
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Per Curiam.
Defendant appeals as of right from a jury verdict awarding plaintiffs $360.36 in damages for breach of the no-fault insurance contract between defendant and plaintiffs, and $2,500 in damages for intentional infliction of emotional and mental distress. Defendant also appeals from the trial court’s subsequent award of $5,880 in attorney fees based on defendant’s unreasonable delay in paying plaintiffs the benefits they were due under the insurance contract.
Christine Rodzos, a 13-year-old girl, was injured when the bicycle she was riding was struck by a motor vehicle. On the following day, April 21, 1979, her stepfather notified defendant’s agent. The Roberts’ vehicles were covered by a standard "no-fault” policy issued by defendant.
Plaintiffs’ lawsuit alleging both breach of contract and intentional infliction of mental distress was premised on defendant’s interference with plaintiffs’ insurance claim for $440 of "replacement services”. These services consisted of Delores Roberts’ care for Christine after the accident. Mrs. Roberts had to wash Christine’s hair to remove the blood, dress her, fix her meals and serve them to her in bed. Mrs. Roberts took a week off from work because of this increased burden. Mr. and Mrs. Roberts drove Christine to the doctor on four occasions.
Mr. Roberts heard nothing since he contacted defendant on April 21, 1979, so he retained an attorney in July, 1979. Plaintiffs’ attorney sent defendant a letter informing it that Christine had severe facial injuries that would require further surgery. Defendant responded with an application for no-fault benefits. Defendant eventually paid the ambulance bill on August 31, 1979, after plaintiffs’ attorney sent two requests. Along with this payment, defendant informed plaintiffs that it did not have a form for replacement services. Plaintiffs, with the assistance of their attorney, then prepared and submitted an "Affidavit Regarding Replacement Services”, which requested replacement service benefits of $440. Defendant replied that most of the requested benefits would not be paid and that a doctor would have to verify the ones that would be paid. On March 10, 1980, plaintiffs finally filed their complaint against defendant.
At the conclusion of the trial, the jury returned a verdict agreeing that amounts were owed, and judgment was entered as follows:
"Judgment be and hereby is entered in favor of plaintiffs vs. defendant as follows:
"A. $360.36 Unpaid benefits
"B. 57.96 Section 3142(3) interest
"C. 2,500.00 Emotional distress
"D. 5,880.00 Section 3148 attorney fee
"E. 425.00 Taxable costs
"F. 700.32 MCL 600.6013 interest
for a total judgment of nine thousand nine hundred twenty-three dollars and sixty-four cents ($9,923.64).”
On appeal, defendant raises several issues. We note, however, that in its motion for new trial defendant only contests the validity of the award for damages for mental distress. Defendant now argues that this award was contrary to the rule set forth in Kewin v Massachusetts Mutual Life Ins Co, 409 Mich 401, 423; 295 NW2d 50 (1980), where the Supreme Court found that the plaintiffs did not prove intentional infliction of emotional distress because they "alleged and proved no more than the failure of the defendant to discharge its obligations under the disability insurance contract”. The essence of the Kewin decision is that the insurer is not liable for intentional infliction of emotional distress for merely failing to pay benefits allegedly due the insured.
This case involves significantly more than the mere failure to pay benefits. Plaintiffs’ case is based upon allegations of defendant’s intentional attempts to frustrate them from applying for benefits. Plaintiffs allege that defendant was informed of the nature and extent of Christine’s injuries and the costs of the services incurred therefrom but only supplied an application for a small portion of the payable benefits. Defendant claims that six years after the enactment of the no-fault statute it did not have application forms for the benefits plaintiffs requested under the act. This forced plaintiffs to procure counsel to apply for no-fault benefits. Considering the fact that defendant was informed that Christine had a severe facial scar that might necessitate plastic surgery, its conduct in frustrating plaintiffs’ attempts to apply for benefits and define the limits of the policy could properly be considered as extreme and outrageous by a jury. Frishett v State Farm Mutual Automobile Ins Co, 3 Mich App 688, 692-693; 143 NW2d 612 (1966).
While the mere breach of an insurance contract has been held insufficient to support a claim for intentional infliction of emotional distress, Kewin v Massachusetts Mutual Life Ins Co, supra; Butler v DAIIE, 121 Mich App 727; 329 NW2d 781 (1982), the fact that one sells insurance does not create an immunity from this tort.
It is initially for the court to determine whether defendant’s conduct may be reasonably regarded as so extreme and outrageous as to permit recovery. "Where reasonable men may differ, it is for the jury, subject to the control of the court, to determine whether, in the particular case, the conduct has been sufficiently extreme and outrageous to result in liability.” Restatement Torts, 2d, § 46, Comment h, p 77.
In this case, the issue of whether defendant’s conduct is extreme and outrageous is an issue of fact. A determination of fact made by a jury should not be invaded upon by an appellate court if there is any credible evidence which the jury might believe which would permit it to find for plaintiff. Van Gilder v CE Trucking Corp, 352 Mich 672, 675; 90 NW2d 828 (1958).
Considering the severe and personal nature of Christine’s injuries suffered in the auto accident, defendant’s overt attempts to frustrate plaintiffs from applying for benefits and then punishing them by failing to cooperate when they obtained counsel could reasonably be considered extreme and outrageous. The fact that Christine showed reluctance for plastic surgery may have been viewed by the jury as indicative of emotional damage caused by defendant’s greed. The jury’s verdict is supported by credible evidence and is not against the great weight of the evidence.
Defendant next argues that the jury erred in awarding replacement services. This argument is essentially that the jury’s verdict is against the great weight of the evidence. In its motion for new trial, defendant did not argue that this portion of the verdict was against the great weight of the evidence and, therefore, did not preserve this issue for appeal. Burnett v Mackworth G Rees Inc, 109 Mich App 547, 557-558; 311 NW2d 417 (1981); Hill v Husky Briquetting, Inc, 78 Mich App 452, 459; 260 NW2d 131 (1977), lv den 402 Mich 893 (1978) (a party waives its right to review of an objection by failing to raise the issue in a motion for new trial).
One of defendant’s arguments deserves comment though. To some extent lawyers were used as expert witnesses to determine the legal sufficiency of a document and to interpret the law. Such a procedure is improper and should carefully be avoided. Shields v Weller, 270 Mich 7; 257 NW 765 (1934). If this issue were properly preserved for appeal, though, we would be inclined to find harmless error in this case since the judge properly instructed the jury on the law relating to the areas in which the lawyers testified.
Likewise, defendant’s argument that evidence regarding the need for plastic surgery was irrelevant is without merit. Defendant’s failure to discuss coverage of plastic surgery was clearly at issue as evidenced by its being mentioned at opening arguments without objection.
Affirmed.
Defendant’s final arguments pertain to the award for replacement services. Although some technical objections are raised in these arguments, defendant is clearly arguing that the verdict is against the great weight of the evidence. In fact, the last sentence of their argument is to this effect. The technical objections raised in these arguments were also not raised in the motion for new trial. | [
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Per Curiam.
On December 4, 1981, the nude body of the deceased was found in a field one-half mile from the bowling alley at which she was last seen. She had been brutally beaten, stabbed several times, and raped. Defendant was arrested two hours after the body was found. On March 9, 1982, a jury found defendant guilty of first-degree murder, an offense which carries a mandatory sentence of life in prison. From that conviction, defendant appeals.
First, defendant argues that his arrest was not based on probable cause and that therefore certain pieces of evidence seized during his initial detention, including one of his shoes on which blood was found, should have been excluded. Second, defendant argues that serological electrophoresis, the technique used to compare the blood on defendant’s shoe to the victim’s blood, has not achieved general scientific acceptance for reliability and that consequently evidence derived from that technique should not have been permitted. Because the latter issue was pending before the Supreme Court in People v Young, 418 Mich 1; 340 NW2d 805 (1983), we ordered on July 19, 1984, that the instant case be held in abeyance. Because Young has now been decided after remand, released August 5, 1986, 425 Mich 470; 391 NW2d 270 (1986), we now address the merits of defendant’s appeal.
I
When defendant was arrested, the police had the following information. On December 3, 1981, the deceased, another woman, and Beth Bialecki had bowled in a league at Plaza Lanes in Plymouth. Just prior to leaving the bowling alley at 10:30 p.m., Ms. Bialecki and the deceased made plans to meet immediately thereafter at a nearby Denny’s Restaurant. The deceased wanted to get something to eat because she was to report to work at midnight. Ms. Bialecki and the other woman left the alley by the front door. The deceased and defendant, whom the police report described as "a man who had earlier been with them” left by the side door. Defendant was carrying the deceased’s bowling ball.
After waiting thirty to forty-five minutes for the deceased at the restaurant, Ms. Bialecki returned to the bowling alley to find the deceased’s car still there. Later that evening, she called the deceased’s work place and found that she had not reported to work. At around 3:30 or 4:00 a.m., after finally obtaining his phone number, Ms. Bialecki called defendant. Defendant told her that the last time he saw the deceased was when he walked her to her car. When he went back into the bowling alley, the deceased was in her car and the engine was running.
Searching the car later on the morning of the fourth, the police found the deceased’s bowling ball in the back seat and items from her purse strewn about the floor. Lieutenant Berghoff of the Plymouth Police Department viewed the body shortly after it was found at approximately 2:00 p.m. on December 4, 1981. Because the body was nude and because of other factors at the scene, it was Lieutenant BerghofPs opinion that the victim had been sexually assaulted. A computer check of defendant’s criminal record indicated that he had been convicted of attempted rape in 1974. Defendant did not report to work the next morning.
This Court reviews an officer’s determination of probable cause to arrest by asking whether a person of reasonable prudence and caution (not a legal scholar) would believe that the person arrested had committed a felony. People v Shabaz, 424 Mich 42, 58; 378 NW2d 451 (1985); People v Melvin Davis, 146 Mich App 537, 542; 381 NW2d 759 (1985). This inquiry is made by looking to the facts available to the officer at the moment of arrest. People v Oliver, 417 Mich 366, 374; 338 NW2d 167 (1983). The standard is one of objective reasonableness without regard to the underlying intent or motivation of the officers involved. People v Cook, 153 Mich App 89; 395 NW2d 16 (1986).
In People v Myshock, 116 Mich App 72; 321 NW2d 849 (1982), the defendant was arrested because he matched a superficial description of the robber, because his car had been seen in the vicinity of the robbery approximately ten minutes before it occurred, and because he had two prior robbery convictions. This Court found probable cause existed to justify defendant’s arrest. See, also, People v Mitchell, 138 Mich App 163; 360 NW2d 158 (1984).
In the instant case, defendant was seen with the deceased moments before the assault must have occurred. Defendant had a history of at least one prior criminal sexual assault. Also, defendant’s conduct afterwards was suspect. He did not report to work the following morning. His statement to Ms. Bialecki that he left the deceased in her car with the engine running was inconsistent with the fact that Ms. Bialecki found the car at the bowling alley thirty to forty-five minutes later. We con- elude Lieutenant Berghoff had probable cause to arrest the defendant.
ii
State police serologist Charles Barna testified that he used electrophoresis to determine that the blood of the deceased occurred in only .071 percent of the general population and that the deceased’s blood was of the same type as that found on defendant’s shoe. This was crucial evidence.
On August 5, 1986, the Supreme Court ruled in People v Young (After Remand), supra, that electrophoresis blood typing has not gained sufficient acceptance for reliability in the scientific community to permit its use in criminal trials. Even though the decision was rendered by a three-to-two vote, this Court is bound to follow it. Negri v Slotkin, 397 Mich 105; 244 NW2d 98 (1976).
On this basis, we reverse defendant’s conviction and remand for new trial.
m
Defendant also claims that the prosecutor improperly shifted the burden of proof by arguing that defendant had failed to adequately explain the presence of blood on his shoe. During his initial detention, defendant was asked about what appeared to be blood on his shoe and how it had gotten there. Defendant’s replies are party admissions and, absent a showing that they were involuntary, were properly introduced and commented upon during trial. MRE 801(d)(2). These replies were certainly not "nonutterances.” People v Bobo, 390 Mich 355; 212 NW2d 190 (1973), has no application here. However, the prosecutorial comment that defendant has "never” offered an adequate explanation of the presence of blood on his shoe impermissibly drew the jury’s attention to the fact that defendant did not take the stand and had the effect of shifting the burden of proof onto defendant. This error should not be repeated on retrial. Retrial will also afford defendant the opportunity to correct the omission of his defense counsel in failing to request an instruction on attempted first-degree criminal sexual conduct.
In light of our disposition, the remaining claims of error need not be addressed.
Reversed and remanded for new trial.
The police report was admitted into evidence as an exhibit at the evidentiary hearing on defendant’s motion to suppress evidence. Lieutenant Berghoff testified at the hearing that the contents of the report had been conveyed to him orally before he effectuated defendant’s arrest. | [
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Allen, P.J.
We are asked to decide whether a convenant not to compete in a professional service agreement, admittedly unenforceable under Michigan’s former antitrust statute, MCL 445.761; MSA 28.61, when entered into in June, 1978, became enforceable upon the enactment of the Michigan Antitrust Reform Act (mara), which on March 29, 1985, repealed former MCL 445.761; MSA 28.61. The trial court did not answer this question, but on different grounds granted summary judgment to plaintiff on August 5, 1985. Defendant appeals as of right. The question raised is of first impression.
On approximately June 1, 1978, plaintiff, Kenneth Compton, and defendant, Joseph Lepak, d.d.s., p.c., entered into an independent contract of employment. Pursuant to the contract, Compton was required to perform services as a licensed, practicing dentist on behalf of the corporation. As part of the agreement, the corporation agreed to pay all office expenses, personal calls, one-half of all laboratory expenses, and further the professional skills of Compton in the atmosphere of an established office. The contract further provided that Compton would be entitled to one-half of the gross fees generated by his services. Additionally, the contract included a covenant not to compete the key provision of which is contained in paragraph 6:
6. Upon the termination of this Agreement, Dr. Compton agrees to refrain from entering into or engaging in the practice of dentistry, either as an individual or as a partner, joint venturer, or as an employee, shareholder or officer of any corporation, located within a fifteen (15) mile radius of the present location of the premises of the Corporation. The parties also agree that in the event of a breach of the promise contained in this Paragraph, the Corporation shall be entitled to institute proceedings in any court of competent jurisdiction, either in law or in equity, to obtain damages for any breach of this Agreement, or to enforce the specific performance thereof by Dr. Compton from performing services for any such other person, firm or corporation.
Compton gave notice of termination of the contract of employment, effective July 28, 1985, and indicated his intention to open an office within the fifteen-mile radius of the present location of the corporation. The corporation is presently located in Oakland County at 9810 Commerce Road, Union Lake, Michigan. On May 6 1985, Compton filed a declaratory action against the corporation in Oakland Circuit Court seeking to have the covenant not to compete declared void and unenforceable.
On June 14, 1985, Compton filed a motion for summary disposition pursuant to MCR 2.116(C)(8) and (9) to declare the restrictive covenant void and unenforceable. The corporation filed a response in opposition. After a hearing on July 3, 1985, the trial court granted Compton’s motion.
After first stating that he could not decide the issue of reasonableness of the fifteen-mile limitation without an evidentiary hearing and expert testimony, the trial judge concluded that mara incorporated prior public policy and case law which rendered void and unenforceable all covenants not to compete in professional service agreements. Accordingly, the court declared paragraph 6 of the agreement void and unenforceable. On August 6, 1985, an order granting summary disposition in favor of plaintiff was entered.
Defendant corporation appeals as of right raising two issues: (I) Did the trial court err in concluding that mara, MCL 445.771 et seq.; MSA 28.70(1) et seq., rendered void and unenforceable all covenants not to compete in professional service agreements?; and (II) Did a covenant not to compete which was void and illegal under the former statute become legal and enforceable upon the passage of mara, which repealed the former statute?
i
Former MCL 445.761; MSA 28.61, effective June 20, 1905, and in effect when the covenant not to compete in the instant case was entered into in June, 1978, provided:
Sec 1. All agreements and contracts by which any person, co-partnership or corporation promises or agrees not to engage in any avocation, employment, pursuit, trade, profession or business, whether reasonable or unreasonable, partial or general, limited or unlimited, are hereby declared to be against public policy and illegal and void.
Under that provision, a contract clause by which a person agreed not to compete in a profession or business was illegal unless it was incident to the sale of a business or profession and met the other criteria set forth in MCL 445.766; MSA 28.66. Bernstein, Bernstein, Wile & Gordon v Ross, 22 Mich App 117; 177 NW2d 193 (1970). However, upon the enactment of mara by 1984 PA 274, effective March 29, 1985, former MCL 445.761; MSA 28.61 was repealed. The question is whether the convenant not to compete in the instant case is void under mara, which repealed former MCL 445.761; MSA 28.61.
The relevant provision of mara is § 2, MCL 445.772; MSA 28.70(2), which provides:
A contract, combination, or conspiracy between 2 or more persons in restraint of, or to monopolize, trade or commerce in a relevant market is unlawful.
This section is identical to one in the Uniform State Antitrust Act (usaa). The usaa comment to this section provides in pertinent part that:
This section gathers together and proscribes all concerted or collusive conduct in unreasonable restraint of trade, as under the common law and section 1 of the Sherman Act, and to monopolize trade, as under section 2 of the Sherman Act. . . . The adoption of Sherman Act language establishes its general standards of legality, provides needed flexibility, and makes available to state courts the relevant body of federal precedent.
Unlike former MCL 445.761; MSA 28.61, which declared void any agreement not to compete, whether reasonable or unreasonable, §2 of mara only makes unlawful any contract which is an unreasonable restraint of trade, as under the common law or § 1 of the Sherman Act or monopolized trade under § 2 of the Sherman Act. The trial judge granted plaintiffs motion on the ground that the covenant not to compete was not limited in duration. As noted earlier, the covenant in the instant case lacks any statement of the duration of the agreement not to compete. Unfortunately, there is no Michigan authority as to the reasonableness of a covenant not to compete which is unlimited in duration.
The weight of authority in other jurisdictions is that covenants not to compete will not be stricken simply because they are unlimited in time. Instead they are enforced during a period deemed reasonable. Styles v Lyon, 87 Conn 23; 86 A 564 (1913); Hansen v Edwards, 83 Nev 189; 426 P2d 792 (1967); Foster v White, 248 App Div 451; 290 NYS 394 (1936), aff'd 273 NY 596; 7 NE2d 710; 292 NYS 931 (1937); Lewis v Krueger, Hutchinson & Overton Clinic, 153 Tex 363; 269 SW2d 798 (1954) (included as annotations within 52 ALR3d 1013, Appendix C); Edwards v Davis, 160 Ga App 122; 286 SE2d 301 (1981) (covenant not to compete accompanying sale of physician’s practice); Horne v Radiological Health Services, PC, 83 Misc 2d 446; 371 NYS2d 948 (1975), aff'd 51 App Div 2d 544; 379 NYS2d 374 (1976); Huff v Tippett, 452 SW2d 523, 525 (Tex Civ App, 1970) (included as annotations within Comment: The Antitrust Ramifications of Noncompetition Clauses in the Partnership and Employment Agreements of Doctors, 30 Loyola L Rev 307, 327 [1984]). But see, Schneller v Hayes, 176 Wash 115; 28 P2d 273 (1934). The case cited by defendant, Freudenthal v Espey, 45 Colo 488; 102 P 280 (1909), is no longer good law, see Colorado Revised Statutes 8-2-113(3). Effective April 6, 1982, Colorado made restrictive covenants between physicians illegal per se.
In Follmer, Rudzewicz & Co, PC v Kosko, 420 Mich 394; 362 NW2d 676 (1984), which involved a contract provision requiring employees to pay the employer if an employee used confidential information to obtain patronage of his employer’s customers, our Supreme Court wrote:
An agreement that unduly limits a former employee’s freedom to go into business for himself or another, or extracts an excessive price for the privilege of doing so, is unreasonable and hence unenforceable. A court may, however, enforce such a contractual provision to the extent that it is reasonable by substituting a reasonable amount for the amount provided in the agreement. These cases are also remanded for a determination of the reasonableness of the contractual provision. [420 Mich 409. Emphasis added.]
Although Kosko did not directly involve a covenant not to compete situation, the language used by the Supreme Court is broad enough to clearly indicate that, given a covenant not to compete unlimited in time, the Supreme Court would enforce the covenant for a period deemed reasonable.
Federal cases involving the validity of covenants not to compete unlimited in duration follow the same rules as do the state authorities. In Lektro-Vend Corp v Vendo Co, 660 F2d 255 (CA 7, 1981), the court stated:
[M]ost modern courts will uphold a covenant to the extent that a breach of the covenant has occurred within a reasonable geographic area and time period, and, where applicable, with respect to a product reasonably related to the legitimate purpose of the restraint. See, e.g., Alders v AFA Corp of Florida, 353 F Supp 654, 658 (SD Fla, 1973) , aff'd without opinion, 490 F2d 990 (5th Cir, 1974) ; Blake, Employee Agreements Not to Compete, 73 Harv L Rev 625, 674 (1960); Bork, Ancillary Restraints and the Sherman Act, 15 ABA Section of Antitrust Law Proceedings 211, 223-24 (1959). [Id., p 267.]
Thus, it appears the "unreasonableness” of a covenant is to be determined under the developed common law. Also see Snap-On-Tools Corp v FTC, 321 F2d 825 (CA 7, 1963). For an excellent review of the law concerning covenants not to compete in employment agreements between physicians, see Comment: The Antitrust Ramifications of Noncom-petition Clauses in the Partnership and Employment Agreements of Doctors, supra.
Based on the above authority we conclude that the respected trial judge erred in holding that mara incorporated the previous rule of former MCL 445.761; MSA 28.61 and further erred in holding that paragraph 6 of the contract in the instant case was unreasonable because it was unlimited in time. Mara incorporates a rule less prohibitive than the former rule. Furthermore, paragraph 6 should be interpreted as having a duration reasonable in time and is therefore reasonable.
n
Our decision that the trial court erred in issue I does not necessarily require reversal. We must proceed to issue ii. For if the agreement not to compete, although clearly unenforceable under the statute when entered into, does not become enforceable upon the enactment of mara, the trial court did not err in granting summary disposition under MCR 2.116(0(10), former GCR 1963, 117.2(3). This Court will not reverse where the trial court reaches the right result albeit for the wrong reason. Gilbert v Grand Trunk W R Co, 95 Mich App 308, 313; 290 NW2d 426 (1980).
Defendant argues that when mara was enacted the defense which plaintiff had when the contract was made (illegality) was removed and when plaintiff terminated the contract in July, 1985, the defense no longer existed. Further, the general rule that a change of law will not validate a contract which was unenforceable when made has an exception where, as here, the repealing statute implies that the general rules is inapplicable. According to defendant, the exception applies because mara exorcised the policy underlying former MCL 445.761; MSA 28.61.
Plaintiff argues that the exception to the void ab initio rule does not apply because mara does not expressly or by implication raise from the dead a void contract. Plaintiff further argues that former MCL 445.761; MSA 28.61 did not merely give plaintiff a defense to the enforcement of the agreement not to compete, but, instead, it voided the clause. Finally, plaintiff argues that statutes are not to be retroactively applied where it would impair vested rights.
While the issue is admittedly close in the instant case, we agree with plaintiff. When an agreement or contract is entered into in violation of the statute, repeal of that statute does not make the agreement valid because the Legislature cannot validate a contract which never had a legal existence. Webber v Howe, 36 Mich 149, 155-156 (1877); 17 Am Jur 2d, Contracts, § 172, p 530; Calamari & Perillo, Contracts (2d ed), § 22-14, p 799; 15 Williston On Contracts, § 1758, p 186. But see, 17 Am Jur 2d, Contracts, § 172, p 530, n 10.
An exception to this rule is made: (1) if the repealing statute expressly states that it validates previously invalid agreements or impliedly so states "as for example 'when the policy underlying the original statute or the extent of its prohibition is doubtful,’ ” Calamari & Perillo, supra, or (2) if the repealed statute affects only a remedy. 17 Am Jur 2d, § 172, supra.
None of the exceptions apply in the instant case. Mara does not expressly state that previously void contracts not to compete are somehow now valid. Nor do we agree that mara by implication validates previously void contracts on grounds that "the policy underlying the original statute was doubtful.” In our opinion the policy underlying a repealed statute necessarily becomes "doubtful”— otherwise the statute would not be repealed.
Further, we do not agree that the former statute merely gave plaintiff a defense. It did more than that, viz.: it voided the covenant not to compete, instead of making the convenant voidable at plaintiffs option.
Likewise, we do not agree that mara is purely "remedial” or "procedural.” Such statutes are given retroactive effect. Ballog v Knight Newspapers, Inc, 381 Mich 527, 533-534; 164 NW2d 19 (1969); Franks v White Pine Copper Division, Copper Range Co, 122 Mich App 177, 185; 332 NW2d 447 (1982). The "Prefatory Note” to mara clearly states that mara was enacted in order to create uniform state laws and to draw upon federal antitrust decisions. Thus, mara is substantive, rather than purely remedial or procedural.
Based on our construction of mara, defendant cannot prevail by asserting that mara is, by definition, retrospective. A retrospective statute is one which takes away or impairs vested rights, creates a new liability, imposes a new duty or attaches a new disability in respect to transactions or consideration already passed. Hansen-Snyder Co v General Motors Corp, 371 Mich 480, 484; 124 NW2d 286 (1963). If mara were applied to validate the covenant not to compete, it would be imposing a new duty or new liability on plaintiff which did not exist prior to its enactment, i.e., it would be retroactive. However, we have already determined that mara was not intended to create a duty which, by prior law, did not exist.
In summary, we commenced this opinion by asking whether a covenant not to compete contained in a professional service agreement, which was clearly unenforceable under former MCL 445.761; MSA 28.61 when entered into, became enforceable upon the enactment of mara, which repealed former MCL 445.761; MSA 28.61. We end our opinion by answering this question in the negative. While mara repealed former MCL 445.761; MSA 28.61, it did not render enforceable a contract void at its inception. Though giving the wrong reasons, the trial court arrived at the correct result.
Affirmed. No costs, a question of public importance being involved.
I do think that a contract to limit one’s personal service is unreasonably broad where it’s for an indefinite period of time. With regard to the statutory construction here, and the interpretation that is necessary, I think that sections MCLA 445 and [sic] 772 and 774 make such agreements unlawful and I think those sections were intended to include the prohibition that was contained in the former statute, section 661. Thank you gentlemen.
According to the prefatory note to mara, the act is based largely on the Uniform State Antitrust Act (usaa):
The Michigan Antitrust Reform Act ("mara”) is based largely on the Uniform State Antitrust Act promulgated by the National Conference of Commissioners on Uniform State Laws in 1973, and approved by the American Bar Association in 1974. Slight modifications were made to the usaa in 1979 although the Conference of Commissioners concluded that major revisions are not appropriate. These comments indicated the source of each provision and the intent of the Council of the Antitrust Law Section of the State Bar of Michigan and the legislature in drafting the mara.
If state antitrust legislation is to form an integral part of our overall antitrust policy, the burden of compliance with the antitrust laws of the several states must be abated by the adoption of a uniform state antitrust act. Existing state antitrust legislation is similar in many respects, but hardly can be called uniform. This lack of uniformity coupled with the many drafting defects and substantive inadequacies found in some of the state legislation motivated the formulation of this proposed Uniform State Antitrust Act to mitigate the burdens of compliance. | [
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Allen, P.J.
On January 23, 1984, defendant entered a conditional guilty plea to a charge of larceny in a building, MCL 750.360; MSA 28.592. It was understood that by entering the plea defendant would not waive his right to assert as error on appeal the denial of his motion to suppress evidence which was based on an alleged illegal search and seizure. See, People v Perez, 143 Mich App 718, 720-721; 373 NW2d 202 (1985), lv gtd 424 Mich 879 (1986). In exchange for the plea, a second charge of larceny in a building and a charge of possession of marijuana were dismissed. Defendant was sentenced on August 19, 1985, to from sixteen months to four years in prison. He appeals his conviction as a matter of right, raising only the suppression of evidence issue.
At approximately 3:45 a.m. on September 1, 1983, Iosco County deputy sheriffs Ronald Gwizdala and Roger Williams observed the defendant on US 23 near East Tawas, walking with traffic on the shoulder of the northbound lane. Although Gwizdala testified that the defendant was hitchhiking, Williams gave inconsistent statements with respect to whether he was hitchhiking. It appears, however, that hitchhiking was not illegal on this road as it was not a limited-access highway. See MCL 257.679a; MSA 9.2379(1).
The deputies, who were in a patrol car, approached the defendant and asked him what he was doing. They later cited the following facts as their reasons for stopping the defendant: (1) the fact that he was hitchhiking; (2) the fact that he was committing a civil infraction by not walking in a northerly direction in the southbound lane, against traffic, see MCL 257.655; MSA 9.2355; (3) the fact that defendant was wearing dark clothing; (4) the fact that defendant was near a business area; (5) the early hour of the morning; and (6) that the deputies had not seen anyone on the road fifteen minutes earlier. Williams stated at one suppression hearing that the deputies were "just suspicious.”
Both Williams and Gwizdala testified that when they approached the defendant, the defendant asked them for a ride. The defendant denied this claim but admitted that it had been raining that evening and that he had left Flint at least three hours earlier. The lower court found that the deputies’ assertion was valid.
The deputies asked the defendant for identification in contemplation of giving him a ride. According to the deputies, defendant willingly furnished the identification. They then ran a check of defendant on the lein computer. While they were waiting for the results, the defendant kept putting his hands in his pockets and was moving towards the back of the patrol car. When Williams asked the defendant to remove his hands from his pockets, he did so but, momentarily, he put his hands back in his pockets. In addition, he appeared nervous. The defendant testified that this behavior was most likely due to the fact that he was cold. However, defendant admitted that he never indicated to the deputies that he was cold. Deputy Williams did a pat-down search for weapons because of this behavior. Defendant did not manifest any objection to this search.
During the pat-down search, Williams felt something in the defendant’s shirt or jacket pocket which he said felt like a Kleenex or a baggie of marijuana. According to Gwizdala, Williams asked the defendant what it was, at which point the defendant broke free of Williams and ran. In doing so, the defendant apparently struck Williams with his right arm and pushed him into a ditch. The officers pursued defendant and, once apprehended, they arrested him for resisting a police officer in the lawful performance of his duty, MCL 750.479; MSA 28.747. After arresting the defendant, the officers performed a search incident to arrest and discovered marijuana in the defendant’s pocket.
The defendant was charged with marijuana possession. He was questioned after the arrest and admitted to having stolen two stereos from an Oscoda Ben Franklin store. This confession gave rise to two additional charges of larceny in a building, including the one to which defendant pled guilty.
Defendant argues that the trial court erred in not suppressing the evidence obtained in the search, the subsequent confession, and evidence garnered as a result of the confession. He argues that there was no legitimate basis for stopping him in the first instance, that even if he were validly stopped the deputies had no right to search his person for weapons, and that he had not been stopped and searched, the deputies would not have discovered the marijuana and would not have gained the benefit of his confession. Thus, he argues that if the stop and frisk were invalid, the evidence and confession would have to be suppressed as fruit of the poisonous tree. Wong Sun v United States, 371 US 471; 83 S Ct 407; 9 L Ed 2d 441 (1963).
Originally, the trial court held that the deputies made a valid stop under Terry v Ohio, 392 US 1; 88 S Ct 1868; 20 L Ed 2d 889 (1968), since defendant was in violation of a civil statute. Having found a valid stop, the court held that under the circumstances (isolated area, late at night, defen dant’s furtive gestures) the deputies’ belief that the defendant may have been armed and dangerous, although a close question, was reasonable and justified a pat-down search for weapons. Defense counsel then represented that, although defendant was in violation of the statute, Williams had testified that the reason for the stop was the suspicion of criminal activity. The trial court then held that this suspicion was not sufficient to justify a Terry stop. However, the court held that this incident constituted a valid inquiry short of a stop, stating:
[A]n investigation can arise and can be conducted short of a stop. The restraints upon a citizen are different. The threshold requirements . . . placed upon an officer are different. If an officer wishes to conduct an investigation and make inquiry of passersby, pedestrians on the street, he can do so. He’s not engaging in any stop at that point as stop is used as a legal term. He can ask a passerby if they mind answering some questions. If they say, yes, they would, and the passersby are permitted to proceed on, there’s no legal stop. In this case, a hitchhiker seeking a ride, a car has a right to stop and discuss giving a ride with a hitchhiker. The officer indicated that the hitchhiker asked for a ride. The officer said they were making up their mind but needed i.d. first. The defendant gave i.d., and while waiting, the circumstance arose that gave rise to the officer’s decision to frisk. I would indicate that the frisk was not made incident to a stop in the usual sense of the term.
And it may be that the Court of Appeals may say that under those circumstances, it not being a valid stop, a frisk could not take place. If the officer was afraid for his own safety, he should have simply left. That would be the alternative to a frisk in a situation where a stop is not being made. I feel that under the circumstances the non- intrusive frisk where conduct is such during the course of an encounter that an officer doesn’t have to mentally catalog the nonstopping encounter as becoming a "stop” so that he can justify a frisk under these circumstances where it’s exigent and otherwise authorized.
We will discuss the stop, and the frisk, in sequence.
i
We agree with the trial court’s final conclusion, holding that the deputies’ initial approach of the defendant was not a stop within the meaning of Terry, supra. In order to justify a Terry stop, the officers would need "a particularized suspicion, based on an objective observation, that the person stopped has been, or is about to be engaged in criminal wrongdoing. . . . [T]he 'articulable reasons’ or 'founded suspicion’ or 'particularized suspicion’ that criminal activity is afoot must derive from the police officer’s assessment of the 'whole picture’—the totality of the circumstances with which he is confronted.” People v Shabaz, 424 Mich 42, 59; 378 NW2d 451 (1985).
In the present case, the only indicia of criminal activity were (1) the fact that this was near a business district, (2) the fact that defendant was wearing dark clothing, (3) the early hour of the morning, and (4) the fact that the deputies passed through this stretch of road about fifteen minutes prior to their encounter with defendant and had seen no one. These indicia paint a generalized, as opposed to particularized, picture of suspicion. Indeed, the reasons are even more general than the articulated reasons in Shabaz, where the Supreme Court held that a Terry stop was not justified.
Nonetheless, an officer need not have an articul able suspicion to stop an individual as required by Terry if the officer observes a traffic violation. People v Burrell, 417 Mich 439, 450; 339 NW2d 403 (1983). Defendant concedes that he was violating MCL 257.655; MSA 9.2355, but argues that he was not stopped for the purpose of being issued a citation pursuant to MCL 257.742(1); MSA 9.2442. Rather, he maintains that he was stopped because the officers were "just suspicious.”
We note that the trial court’s findings with respect to the actual reason for the stop are unclear. It appears that the court ultimately accepted defense counsel’s characterization of Deputy Williams’ testimony—that the stop was occasioned by a general suspicion. Since the issue herein involves a possible deprivation of a constitutional right, we are guided, but not controlled, by the judge’s factual determinations. If, after reviewing the record, we possess a definite and firm conviction that the trial court has erred, we need not accept the finding. Burrell, supra, p 449.
Having reviewed the transcript, we do not believe that defense counsel fairly characterized Williams’ testimony. A fairer representation of the testimony is that the reason for the stop was suspected criminal activity and the fact that defendant was committing a civil infraction. Since the civil infraction provided a legitimate reason to stop the defendant, the fact that the deputies may have had additional reasons which, if isolated, would not justify a stop, is irrelevant.
Alternatively, we find that the encounter constituted a permissible first-tier contact, i.e., an encounter where the officers simply approached the defendant in a public place and asked him questions. See Shabaz, supra, pp 56-57. The defendant was not detained by the police but was simply asked what he was doing. Deputy Williams testi fied that defendant would have been free to move on at that time. However, instead of declining to answer the deputies’ questions and moving on, the defendant asked the deputies for a ride. Thus, it appears reasonable to conclude that at that time the defendant was not being detained by police, but that he voluntarily stayed in the vicinity of the deputies and the patrol car in order to gain a personal benefit, i.e., a ride. Under the circumstances, we decline to hold that this was an unreasonable seizure of defendant’s person.
ii
Conceding, arguendo, that the deputies may have been justified in stopping defendant because of the civil infraction, defendant maintains that, nonetheless, this stop did not authorize an extended detention or a frisk. Rather, the officers could have briefly detained defendant, issued a citation, or directed defendant to walk facing traffic. Since the officers had a choice about placing the defendant in their patrol car, defendant argues that they should not be permitted to assert that their fear of placing an armed individual in the patrol car justified a frisk.
We note a distinction between frisking an individual as a a precautionary measure before gratuitously placing him into a police vehicle, and frisking a person when, during a lawful encounter, the individual exhibits some behavior which leads the officers to believe that their safety might be endangered. Testimony in the instant case indicates that the pat-down search of defendant was performed only after the officers observed furtive gestures which gave them cause for concern about their safety. Thus, we view People v Otto, 91 Mich App 444; 284 NW2d 273 (1979) (holding it permis sible to frisk one hitchhiking illegally before transporting him to a site where he could legally hitchhike, despite the lack of particularized concern about the officer’s safety), and People v Scott, 16 Cal 3d 242; 128 Cal Rptr 39; 546 P2d 327 (1976) (holding it impermissible to frisk an individual whom officers were going to transport gratuitously, where there were no articulable facts which would have given the officers reason to believe that the individual was armed and dangerous), as inapposite.
We have already found that the deputies’ initiation of this encounter was permissible. It appears that the continued detention of defendant after the initial stages of the encounter was with defendant’s consent and at defendant’s behest. Thus, we view the issue as whether the pat-down search was permissible where, during the course of this consensual encounter with defendant, the deputies observed behavior which led them to conclude that defendant might be presently armed and a threat to the deputies’ safety.
In Pennsylvania v Mimms, 434 US 106, 108-109; 98 S Ct 330; 454 L Ed 2d 331 (1977), quoting Terry, supra, 392 US 19, and United States v Brignoni-Ponce, 422 US 873, 878; 95 S Ct 2574; 45 L Ed 2d 607 (1975), the Supreme Court stated:
The touchstone of our analysis under the Fourth Amendment is always "the reasonableness in all the circumstances of the particular governmental invasion of a citizen’s personal security.” . . . Reasonableness, of course, depends "on a balance between the public interest and the individual’s right to personal security free from arbitrary interference by law officers.”
The law has recognized a weighty public interest in the safety of police officers. See Terry, supra, 392 US 23-24; Mimms, supra, 434 US 116-119. This interest must be balanced against the intrusion upon the defendant under the circumstances of this case. The defendant had been validly detained due to the civil infraction. He consented to, and indeed, appears to have initiated, an extended contact with the officers. During the course of this encounter, he repeatedly placed his hands in his pockets while inching towards the rear of the patrol car. This behavior persisted even after the deputies asked him to keep his hands out of his pockets. We believe that this behavior was of a nature to create legitimate concern on behalf of the officers regarding their safety. Although the deputies’ ability to gain some personal protection by simply leaving the scene makes this a close question, we note that this alternative would not have completely dispelled the risk to the deputies. Accordingly, we do not believe that the limited intrusion created by a pat-down search for weapons was, on balance, an unreasonable search under these circumstances. Therefore, the denial of defendant’s motion to suppress evidence is affirmed.
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Per Curiam.
Defendant insurer appeals as of right from a declaratory judgment holding that its liability insurance policy affords excess liability coverage to plaintiff on a third party’s claim against her. The claim arose out of an automobile accident.
The facts are stipulated. William Deyarmond and Steven Deyarmond are the sons of plaintiff, Ester Deyarmond, and resided with her on September 12, 1980. On that date, William Deyarmond was involved in an automobile accident while driving a 1978 Ford Fairmont owned by his mother. Steven Deyarmond, at that time, owned a 1980 Ford Mustang. The Ford Fairmont was insured by Citizens Insurance Company of America. The Ford Mustang was insured by defendant Community Service Insurance Company. Plaintiff Ester Deyarmond was the "named insured” on both policies. The liability of plaintiff Ester Deyarmond and her son, William Deyarmond, may exceed the limits afforded by the policy on the Ford Fairmont. In this declaratory judgment action, plaintiff sought to have defendant declared liable for any excess liability up to its policy limits (i.e., she sought to stack the coverage of the two policies). The trial judge granted plaintiffs motion for summary judgment, holding that the result was controlled by the decision of the Supreme Court in State Farm Mutual Automobile Ins Co v Ruuska, 412 Mich 321; 314 NW2d 184 (1982).
In the policy issued to plaintiff, defendant promised to pay on behalf of the insured all sums which the insured became legally obligated to pay as damages because of bodily injury or property damage. The "insured” means a person or organization described under the "persons insured” clause. Plaintiff is a "person insured” with respect to both "the owned automobile” (the Ford Mustang) and "a non-owned automobile”. A "non-owned automobile” is defined as "an automobile or trailer not owned by or furnished for the regular use of either the named insured or any relative, other than a temporary substitute automobile”. Plaintiff’s alleged liability to a third party arose out of her ownership of the 1978 Ford Fairmont. The Fairmont is not "the owned automobile” under the policy for the Mustang. The Fairmont also is not a "non-owned automobile” under that policy, because plaintiff herself owns it. Under the terms of the policy, plaintiff may not recover. The trial judge held, however, that the policy may not be enforced as written.
The trial court held that its decision was controlled by that of the Supreme Court in State Farm Mutual Automobile Ins Co v Ruuska, supra. In Ruuska, the insurer sold automobile insurance policies on two cars owned separately by Arvid and Gloria Carlson, a father and daughter who resided in the same household. Gloria Carlson was involved in an accident while driving her father’s car. Gloria Carlson, fearing that her liability would exceed the limits under her father’s policy, sought to have the two policies "stacked”. The insurer admitted coverage under the policy on the father’s car, but denied coverage under Gloria Carlson’s own policy. The policy provided coverage for her while using a non-owned automobile only if the automobile was not owned by (or registered in the name of or furnished or available for the frequent use by) the named insured, his or her spouse, or any relative of either residing in the same household. Because her father resided in the same household, a car owned by him was not a non-owned automobile under her policy. The trial court had held that the definition of non-owned automobile contravened the no-fault act and was, therefore, void. This Court held that nothing in the no-fault act required an insured to have residual liability coverage when driving the automobile of another. This Court also concluded that a non-owned automobile exclusion of the type used was generally valid. The exclusion was held invalid, however, because the definition of "non-owned vehicle” in the policy was in conflict with its normal usage and was hidden among the provisions of the policy rather than highlighted in any way. One judge concurred in a separate opinion, but would have upheld the trial court’s ruling that the exclusion was invalid under the no-fault act. State Farm Mutual Automobile Ins Co v Ruuska, 90 Mich App 767; 282 NW2d 472 (1979).
The Supreme Court affirmed the decision of this Court by a 4-3 vote. Three of the justices stated that the "non-owned automobile” definition violated the clear public policy advanced by the no-fault act. They held that such an exclusion was void. Justice Levin specifically disagreed, but held that the exclusionary definition was unconscionable and contrary to the reasonable expectations of the insured in the case before the Court. Three other justices dissented, holding that the policy-should be enforced as written.
In Ruuska, supra, three of the justices espoused a blanket prohibition on an exclusion from non-owned residual liability coverage for automobiles owned by a relative living in the same household. Four of the justices, however, explicitly rejected this approach. For this reason, plaintiff cannot prevail merely on the basis of the Ruuska decision, unless she would prevail under the factual test used by Justice Levin in casting the decisive vote.
We find the facts of this case to be easily distinguishable from those of Ruuska. More importantly, the distinguishing factors involve just those points which provided the logical foundation for the "reasonable expectations” analysis used by Justice Levin (and by the majority in this Court’s decision in Ruuska).
In the present case, plaintiff is attempting to obtain liability coverage for damages which arose out of her ownership of the 1978 Ford Fairmont. She cannot sensibly claim that her reasonable expectation was that "non-owned automobile” included another automobile owned by her. The Ford Fairmont is not a non-owned automobile with respect to plaintiff whether the plain meaning or the policy definition of the term is used. Plaintiff could not have been misled to her detriment concerning her coverage while using another automobile in the same manner in which Gloria Carlson might have been misled. The reasonable perception of a person buying non-owned automobile insurance is that it will apply to automobiles which are not owned by that person. This principle supported a decision finding coverage in Ruuska; it supports a decision denying coverage in the present case.
On appeal, plaintiff has suggested that Ruuska applies to this case because William Deyarmond, as a relative of Steven Deyarmond, was an "insured” under defendant’s policy on the Mustang and he (William) did not own the Ford Fairmont. William Deyarmond was "an insured” under the policy definition used in the insurance policy on his brother’s Mustang. His liability definitely arose out of his use of a non-owned automobile, as that term is commonly understood (but not as that term is defined in the policy). According to this argument, Steven’s reasonable expectations would be frustrated by applying the policy as written and, applying Ruuska, coverage must be provided.
We do not think that plaintiff’s reasonable expectations would be frustrated by enforcing the policy as written in this case. As the named insured, plaintiff could have reasonably expected that a non-owned automobile was an automobile not owned by her. It would not have been reasonable for her to conclude that a non-owned automobile might include her own automobile because it was not owned by her relatives. To discover that her son William was an insured under the policy, plaintiff would have had to consult the same definitional section of the policy which she would have had to ignore to preserve the reasonable expectations sought to be protected by Justice Levin in Ruuska, supra. If plaintiff reasonably expected the policy on the Mustang to cover any member of her family, she could not reasonably have expected the non-owned automobile definition to be any less extensive. We conclude that the trial judge erred by deciding that the definition of a non-owned automobile in plaintiff’s insurance policy may be disregarded.
Reversed and remanded. No costs, a question of first impression.
Under this interpretation of the policy, households with more than one car would not be encouraged to procure no-fault insurance for each car owned. An example is instructive. Parents A and B reside with their children C, D, and E. Each owns a car. Parent A insures one car; the others are uninsured. The house rule is "never drive your own car”. You are always "an insured” under parent A’s policy; you are always driving a non-owned car (as that term is commonly understood) under the same policy. To accept plaintiffs argument in this case would not encourage compliance with the financial responsibility laws. Even though each of the cars in plaintiffs household was insured in this case, plaintiffs argument would afford coverage whether this were true or not. | [
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Per Curiam.
Plaintiff Marlene Hawkins was a passenger in a Pontiac driven on February 8, 1976, by Edward Copley and insured by defendant-appellant Allstate Insurance Company. Copley’s Pontiac struck a Rambler owned and operated by Osie Moore and insured by defendant-appellee American Fidelity Insurance Company. Soon after this collision, Marlene Hawkins and Edward Copley, who had exited from the Pontiac, were struck by a third vehicle, an uninsured Dodge driven by Kate Williams. The Dodge also struck the Rambler. Williams fled the scene of the accident, dragging Ms. Hawkins under the car for six-tenths of a mile and severely injuring her.
Hawkins sought no-fault benefits from Allstate and from American Fidelity and was denied benefits by each company. She then made application to the State of Michigan for no-fault assigned claims plan benefits and the claim was assigned to defendant-appellee Aetna Casualty & Surety Company. Aetna paid plaintiff weekly benefits, but refused to pay plaintiff’s medical expenses. Hawkins thereupon filed the instant action against all three defendants, seeking payment of her medical expenses. The motion to intervene by Attorney General Frank J. Kelley and the Michigan Depart ment of Social Services was granted by the trial court because the motion alleged that plaintiffs medical bills had been paid by Medicaid.
After a bench trial, the trial court found that Hawkins was an "occupant” of the Pontiac at the time of the second accident. The trial court issued a partial summary judgment on the issue of coverage in favor of plaintiffs and defendant Aetna against Allstate. A partial summary judgment of no cause of action was entered on behalf of American Fidelity and Aetna as to Hawkins’ claims. The final judgment was entered on June 11, 1982, fixing the amount of damages. It is from this judgment that Allstate appeals.
On appeal, Allstate argues that the trial court erred in holding that Hawkins was an occupant of the Pontiac at the time of the second accident. We follow the Supreme Court’s analysis in Nickerson v Citizens Mutual Ins Co, 393 Mich 324; 224 NW2d 896 (1975), and hold that the trial court correctly found her to be an occupant of the Pontiac at the time of the second accident.
MCL 500.3106; MSA 24.13106 governs insurance liability under the no-fault act where parked vehicles are involved in an accident:
"(1) Accidental bodily injury does not arise out of the ownership, operation, maintenance, or use of a parked vehicle as a motor vehicle unless any of the following occur:
"(a) The vehicle was parked in such a way as to cause unreasonable risk of the bodily injury which occurred.
"(b) Except as provided in subsection (2), the injury was a direct result of physical contact with the equipment permanently mounted on the vehicle, while the equipment was being operated or used or property being lifted onto or lowered from the vehicle in the loading or unloading process.
"(c) Except as provided in subsection (2) for an injury sustained in the course of employment while loading, unloading, or doing mechanical work on a vehicle, the injury was sustained by a person while occupying, entering into, or alighting from the vehicle.”
A two-tier analysis is generally applicable to § 3106 situations: first, the plaintiff must fall within one of the § 3106 exceptions and, second, a causal connection between the injuries sustained and the ownership, maintenance, or use of the motor vehicle must be found. Teman v Trans-America Ins Co of Michigan, 123 Mich App 262; 333 NW2d 244 (1983); Dowdy v Motorland Ins Co, 97 Mich App 242; 293 NW2d 782 (1980).
Section 3106(c) looks to whether the injured person was "occupying, entering into, or alighting from the vehicle”. In Nickerson, supra, a pre-nofault action, the Supreme Court refused to require that there be "physical contact” before an individual could be found to be occupying the motor vehicle. The plaintiff in Nickerson had, like the instant plaintiff, been a passenger in the insured vehicle immediately prior to his injuries by an uninsured motorist. We find the court’s analysis in Nickerson to be equally applicable to the present case. Plaintiff herein was found by the trial court to have left the Allstate insured vehicle three to five minutes prior to the second collision for the purpose of exchanging identification and accident information with the other driver involved in the first collision. This finding is well supported by the record and indicates plaintiff’s immediate prior occupancy of the vehicle. We agree with the trial court that plaintiff’s injury falls within the exception listed in § 3106(c).
The remaining issue is whether a causal connection exists between the injury and the ownership, maintenance, or use of the motor vehicle. We believe that this question must be answered in the affirmative in this case. The requisite causal connection was described by this Court in Kangas v Aetna Casualty & Surety Co, 64 Mich App 1, 17; 235 NW2d 42 (1975), lv den 395 Mich 787 (1975):
"In summary, we conclude that while the automobile need not be the proximate cause of the injury, there still must be a causal connection between the injury sustained and the ownership, maintenance or use of the automobile and which causal connection is more than incidental, fortuitous or but for. The injury must be foreseeably identifiable with the normal use, maintenance and ownership of the vehicle.”
The trial court found that:
"Also, plaintiff did not engage in any conduct other than the necessary and compelling activity of exchanging personal information regarding her injuries, etc., from the first accident, nor did she delay, deviate or commit any acts that were not reasonably incident under similar circumstances.”
We believe that an injury from a third vehicle after alighting from an insured vehicle which has been involved in an accident is "foreseeably identifiable” with the ownership, maintenance, or use of a motor vehicle.
Affirmed. Costs to plaintiff. | [
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Per Curiam.
After a bench trial, defendant was found guilty but mentally ill of felony murder, MCL 750.316; MSA 28.548, unarmed robbery, MCL 750.530; MSA 28.798, and first-degree criminal sexual conduct, MCL 750.520b; MSA 28.788(2). Defendant appeals as of right.
Defendant first claims that a verdict of guilty but mentally ill under MCL 768.36; MSA 28.1059 is unconstitutional because the statutory definitions of mental illness, MCL 330.1400a; MSA 14.800(400a), and legal insanity, MCL 768.21a(l); MSA 28.1044(1)(1), are so vague and overlapping that the trier of fact is given unlimited discretion. This Court has previously rejected this argument. People v Sorna, 88 Mich App 351, 359-361; 276 NW2d 892 (1979); People v Bruce Ramsey, 89 Mich App 468, 472; 280 NW2d 565 (1979), lv gtd 414 Mich 864 (1982). The statutory definitions are distinct in that legal insanity requires a finding of not only mental illness (or mental retardation), but also that the person lacked "substantial capacity either to appreciate the wrongfulness of his conduct or to conform his conduct to the requirements of law”. MCL 768.21a(l); MSA 28.1044(1)(1); see People v Sorna, supra.
Defendant also argues that the verdict of guilty but mentally ill is unconstitutional because the treatment and evaluation provisions of the statute, MCL 768.36(3); MSA 28.1059(3), are illusory since there exists a separate statute, MCL 330.2001 et seq.; MSA 14.800(1001) et seq., which provides for treatment of prisoners with mental disorders. We note that this argument differs from that addressed in People v McLeod, 407 Mich 632; 288 NW2d 909 (1980), where the defendant claimed that the treatment provisions were illusory because they would not in fact be provided. In the present case, defendant argues that the verdict of guilty but mentally ill is unconstitutional because the statutorily mandated treatment of a defendant so convicted as provided in MCL 768.36(3); MSA 28.1059(3) is a mere redundancy since a defendant found simply guilty is also entitled to treatment for mental disorders under MCL 330.2001 et seq.; MSA 14.800(1001) et seq. The Legislature’s object in creating the classification of guilty but mentally ill vis-á-vis simply guilty was to assure that the former would be provided mental health treatment. People v McLeod, supra, p 663; People v Booth, 414 Mich 343, 353-354; 324 NW2d 741 (1982). This reason for the guilty but mentally ill classification is not rendered a nullity simply because a defendant found guilty and not mentally ill might also receive mental health treatment under MCL 330.2001 et seq.; MSA 14.800(1001) et seq. Also, the mental health treatment provision in the guilty but mentally ill statute, MCL 768.36(3); MSA 28.1059(3), differs from the mental health treatment available under MCL 330.2001 et seq.; MSA 14.800(1001) et seq., in that a prisoner found guilty but mentally ill is automatically entitled to evaluation and treatment, see People v McLeod, supra, p 652, whereas a prisoner found simply guilty is provided mental health treatment only through compliance with the procedure set forth in MCL 330.2003b; MSA 14.800(1003b). Thus, we reject defendant’s claim that the guilty but mentally ill verdict is unconstitutional.
Defendant next claims that the guilty but mentally ill statute violates his constitutional right to equal protection because the statute makes an irrational distinction between those defendants found guilty but mentally ill who are incarcerated and those are are placed on probation. More particularly, defendant argues that defendants placed on probation are entitled to periodic judicial review of their present mental state and to release from treatment as a condition of probation if treatment is found to be no longer necessary, but defendants who are incarcerated are not entitled to judicial review of their present mental state or release from, treatment. The relevant statutory provisions are as follows:
"(3) If a defendant is found guilty but mentally ill or enters a plea to that effect which is accepted by the court, the court shall impose any sentence which could be imposed pursuant to law upon a defendant who is convicted of the same offense. If the defendant is committed to the custody of the department of corrections, he shall undergo further evaluation and be given such treatment as is psychiatrically indicated for his mental illness or retardation. Treatment may be provided by the department of corrections or by the department of mental health after his transfer pursuant to sections 1000 or 1002 of Act No. 258 of the Public Acts of 1974, being sections 330.2000 or 330.2002 of the Michigan Compiled Laws. Sections 1004 and 1006 of Act No. 258 of the Public Acts of 1974 shall apply to the discharge of such a defendant from a facility of the department of mental health to which he has been admitted and shall apply to the return of such a defendant to the department of corrections for the balance of the defendant’s sentence. When a treating facility designated by either the department of corrections or the department of mental health discharges such a defendant prior to the expiration of his sentence, that treating facility shall transmit to the parole board a report on the condition of the defendant which contains the clinical facts, the diagnosis, the course of treatment, and the prognosis for the remission of symptoms, the potential for recidivism and for the danger to himself or the public, and recommendations for future treatment. In the event that the parole board pursuant to law or administrative rules should consider him for parole, the board shall consult with the treating facility at which the defendant is being treated or from which he has been discharged and a comparable report on the condition of the defendant shall be filed with the board. If he is placed on parole by the parole board, his treatment shall, upon recommendation of the treating facility, be made a condition of parole, and failure to continue treatment except by agreement with the designated facility and parole board shall be a basis for the institution of parole violation hearings.
"(4) If a defendant who is found guilty but mentally ill is placed on probation under the jurisdiction of the sentencing court pursuant to law, the trial judge, upon recommendation of the center for forensic psychiatry, shall make treatment a condition of probation. Reports as specified by the trial judge shall be filed with the probation officer and the sentencing court. Failure to continue treatment, except by agreement with the treating agency and the sentencing court, shall be a basis for the institution of probation violation hearings. The period of probation shall not be for less than 5 years and shall not be shortened without receipt and consideration of a forensic psychiatric report by the sentencing court. Treatment shall be provided by an agency of the department of mental health, or with the approval of the sentencing court and at individual expense, by private agencies, private physicians, or other mental health personnel. A psychiatric report shall be filed with the probation officer and the sentencing court every 3 months during the period of probation. If a motion on a petition to discontinue probation is made by the defendant, the probation officer shall request a report as specified from the center for forensic psychiatry or any other facility certified by department of mental health for the performance of forensic psychiatric evaluation.” MCL 768.36, subds (3), (4); MSA 28.1059, subds (3), (4).
Neither (3) nor (4) above contains any express provision as to the termination of treatment. However, given a common-sense interpretation, we conclude that both (3) and (4) implicitly allow for the termination of mental health treatment once the defendant is found no longer to be in need of treatment. Thus, defendant’s first asserted difference between prisoners and probationers is without merit.
With respect to defendant’s other asserted disparity between guilty but mentally ill prisoners and probationers, it is true that only probationers are entitled to have a psychiatric report filed with the sentencing court every three months. However, any difference in treatment between guilty but mentally ill probationers and prisoners is not violative of equal protection if the distinction rationally furthers the legislative object. See People v McLeod, supra, p 663.
The requirement of filing with the sentencing court a psychiatric report every three months for probationers, and not also for prisoners, is rationally related to the legislative objective of assuring that guilty but mentally ill defendants receive the necessary treatment since a probationer remains under the jurisdiction of the sentencing court, thus necessitating that the court be periodically apprised of the probationer’s current mental condition, while, once a defendant is sentenced to a prison term, the sentencing court loses jurisdiction to the department of corrections. People v Clemons, 116 Mich App 601, 605; 323 NW2d 300 (1981); People v Fox, 312 Mich 577; 20 NW2d 732 (1945); MCL 791.204; MSA 28.2274.
Also, the requirement of a periodic report for probationers only is rationally related to the legislative object of assuring mental health treatment in order to protect the public, see People v Booth, supra, p 354, since probationers pose a greater threat to the public than defendants who are incarcerated, and thus there is a greater need for periodic psychiatric reports for probationers. We find no equal protection violation.
Defendant’s final claim is that the trial court’s fact-findings with respect to defendant’s insanity defense are inadequate and therefore a remand for supplemental fact-findings is required. GCR 1963, 517.1, which applies to criminal bench trials, Peo pie v Jackson, 390 Mich 621, 627-628; 212 NW2d 918 (1973), provides in part as follows:
"In all actions tried upon the facts without a jury or with an advisory jury, the court shall find the facts specially and state separately its conclusions of law thereon and direct the entry of the appropriate judgment. It will be sufficient if the court makes brief, definite, and pertinent findings and conclusions upon the contested matters without over elaboration of detail or particularization of facts.”
Fact-findings by the trial court serve the function of revealing the law applied by the court and facilitating appellate review. People v Jackson, supra; People v Kelly, 122 Mich App 427, 432; 333 NW2d 68 (1983). A remand for further fact-findings is unnecessary where it is clear that the trial court was aware of the issue and resolved it, and that it would not facilitate appellate review to require explication of how the trial court reached that result. People v Jackson, supra, p 627, fn 3; People v Edwards, 107 Mich App 767, 769; 309 NW2d 607 (1981), lv den 413 Mich 952 (1982).
In the present case, the court’s findings on the issue of insanity were as follows:
"One: Based upon the testimony of Dr. Dreyer and Dr. Packer the defendant, at the time of the crimes was suffering from a substantial disorder of thought and mood which significantly impaired his judgment, behavior and capacity to recognize reality; and Two: The court finds that the people have established beyond a reasonable doubt that the defendant was legally sane at the times he committed such crimes and was not mentally retarded.”
The court then found defendant guilty but mentally ill. Defendant does not claim, nor is there any indication in the record, that the court applied the wrong legal standard for finding mental illness or insanity. Defendant does assert, however, that the court’s fact-findings reflect possible confusion by the court as to the substance of the expert testimony, since it can be inferred from the court’s findings that both Dr. Dreyer (the defense witness) and Dr. Packer (the prosecution witness) were in agreement as to defendant’s mental state, but there was in fact no such agreement; indeed Dr. Packer opined that defendant was not even mentally ill at the time of the offense. However, it can just as easily be inferred that the court’s introductory statement, "Based upon the testimony of Dr. Dreyer and Dr. Packer, simply reflects the court’s consideration of the testimony of both in reaching the result it did. Also, the court’s fact-findings are not inadequate for appellate review — the court addressed the issues of insanity and mental illness and resolved these issues based on the testimony of the two experts, and it is obvious that the court reached the result it did by crediting the testimony of the prosecution’s witness, Dr. Packer, as to the insanity issue, but crediting the testimony of the defense witness, Dr. Dreyer, as to the mental illness issue. Consequently, we conclude that a remand for further fact-findings is unnecessary. Compare People v Kelly, supra; People v Edwards, supra.
Although defendant relies on People v Bruce Ramsey, there a remand for further fact-findings was found necessary not only because it could be inferred that the court erroneously believed the psychiatrist-experts were in agreement, but also because the trial court failed entirely to address other issues. People v Bruce Ramsey, supra, p 477, lv gtd 414 Mich 864 (1980). To the extent People v Bruce Ramsey, supra, might be interpreted to mean that a trial court must in detail review the testimony of each psychiatrist-expert, and specify whose testimony and which portions thereof the court found most credible, where it is obvious from the result reached which testimony the court chose to credit, we would disagree with that opinion unless and until the Supreme Court indicates that such an interpretation is required.
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Per Curiam:.
This case involves an action by the Michigan Department of Corrections to obtain reimbursement from an inmate’s estate for the cost of maintaining the inmate while housed in a state prison. Relying on the Prison Reimburse ment Act, MCL 800.401 et seq.; MSA 28.1701 et seq., plaintiff filed a complaint on July 20, 1982, seeking a temporary restraining order to prevent defendant National Union Fire Insurance Company of Pittsburgh, Pennsylvania, and Pepsi Cola Bottling Company from disbursing monies to defendant Hardy Wilson pursuant to a redemption agreement under the Worker’s Disability Compensation Act. Plaintiff’s complaint requested that an order to show cause be issued directing defendant Hardy Wilson to appear before the court and show cause why a guardian should not be appointed for his estate and the temporary restraining order prayed for be made a preliminary injunction or, in the alternative, that defendant Wilson’s assets be placed under a guardian’s control. The complaint requested that a guardian be appointed and that the guardian appear before the court for the purpose of determining whether or not the ward had assets which should be applied toward reimbursing the state for expenses incurred by detaining defendant in prison.
On July 21, 1982, the circuit court issued an order to show cause and an ex parte temporary restraining order. On October 29, 1982, a hearing on the temporary restraining order, the show cause order, and various discovery motions was held in circuit court. The circuit court refused to appoint a guardian for defendant Wilson’s estate. In an order dated December 21, 1982, the circuit court concluded:
"That the Prison Reimbursement Act is violative of equal protection standards in that the act is applicable to only three state penal institutions.”
Plaintiff Loren Monroe, the State Treasurer, on behalf of the Michigan Department of Corrections, appeals as of right from the circuit court order.
On appeal, plaintiff argues that the inclusion of only three penal institutions in the act does not violate the equal protection standards since there were only three penal institutions in the State of Michigan at the time of the statute’s enactment. Plaintiff further argues that this statute should not be literally construed and in fact it is currently applied to all penal institutions.
We find plaintiff’s arguments unpersuasive. The test to be applied to equal protection challenges depends upon the nature of the individual’s interest affected by the legislation. Grano v Ortisi, 86 Mich App 482, 490; 272 NW2d 693 (1978). If the legislation affects a fundamental right or involves a suspect class, the court applies the strict scrutiny test which places the burden on the governmental authority to show that its regulation was justified by a compelling state interest. Manistee Bank & Trust Co v McGowan, 394 Mich 655, 668; 232 NW2d 636 (1975). If the legislation affects substantial rights or makes certain classifications, such as based on gender, the court employs a heightened scrutiny test. Under this test, the burden is on those defending the discrimination to show that it serves important governmental objectives and that the discriminatory means employed are substantially related to the achievements of those objectives. Wengler v Druggist Mutual Ins Co, 446 US 142, 150; 100 S Ct 1540; 64 L Ed 2d 107 (1980). If no special right or classification is involved, the rational basis test is employed. Under this test, the party attacking the statutory classification has the burden of showing that the classification lacks a reasonable basis. If there is a reasonable relationship between the statutory classifi cation and a legitimate state interest, the statute does not violate the Equal Protection Clause. Forest v Parmalee, 402 Mich 348, 356; 262 NW2d 653 (1978).
While the heightened scrutiny test may be applicable to this case, the Prison Reimbursement Act fails to even pass the rational basis test. The Michigan Supreme Court in Gauthier v Campbell, Wyant & Cannon Foundry Co, 360 Mich 510, 514; 104 NW2d 182 (1960), quoting Naudzius v Lahr, 253 Mich 216, 222-223; 234 NW 581 (1931), set forth the standards for analyzing a statute under the rational basis test:
" T. The equal protection clause of the Fourteenth Amendment does not take from the state the power to classify in the adoption of police laws, but admits of the exercise of a wide scope of discretion in that regard and avoids what is done only when it is without any reasonable basis and therefore is purely arbitrary. 2. A classification having some reasonable basis does not offend against that clause merely because it is not made with mathematical nicety or because of practice it results in some inequality. 3. When the classification in such a law is called in question, if any state of facts reasonably can be conceived that would sustain it, the existence of that state of facts at the time the law was enacted must be assumed. 4. One who assails the classification in such a law must carry the burden of showing that it does not rest upon any reasonable basis, but is essentially arbitrary.’ Lindsley v Natural Carbonic Gas Co, 220 US 61, 78; 31 S Ct 337; 55 L Ed 369 (1911).” 360 Mich 514.
The Prison Reimbursement Act clearly limits itself to three state penal institutions. Section 2 of the act, MCL 800.402; MSA 28.1702, specifically refers to the state prisons at Jackson and Marquette, and the house of correction and reformatory at Ionia. Section 4 of the act, MCL 800.404; MSA 28.1704, states that it only applies to the "aforesaid state penal institutions”. Section 4a, MCL 800.404a; MSA 28.1705, however, refers to "any state penal institution”. Upon reading the act as a whole, we find that it clearly limits its effects to the three penal institutions it mentions, which were the only state penal institutions in operation at the time of the statute’s enactment. If the Legislature intended for the Prison Reimbursement Act to cover new penal institutions, it could have used a general definition of "state penal institution” as found in the reimbursement to counties for certain expenses act, which was later enacted. MCL 800.451; MSA 28.1714(1).
Upon accepting the conclusion that the statute limits its application to three penal institutions, we are unable to find any rational basis to support the statute. The purpose of the statute, as stated by the Legislature, was "to provide for reimbursement to the state in such cases where the prisoners were possessed of estates which warranted such reimbursement”. MCL 800.407; MSA 28.1709. Limiting the application of the statute to three penal institutions creates an unreasonable and arbitrary classification which in no way serves the purpose of the statute. This case is distinguished from Auditor General v Hall, 300 Mich 215; 1 NW2d 516 (1942), which involved questions concerning the constitutionality of the Prison Reimbursment Act. In that case, the Attorney General argued that the Legislature was largely motivated by the fact that there was no legal or moral or economic reason why prisoners who are owners of a substantial estate or who become such while in prison should not be obligated to pay for their keep. The Court stated that it was not within its province to discuss the wisdom of the act or its effect on the morale of the prisoners and the rehabilitation or other questions that might be raised.
The Court in Hall upheld the constitutionality of the Prison Reimbursement Act. It found that the law applies to all prisoners equally in a certain class. The equal protection question raised in Hall was not the same as the one in the instant case. The question in Hall was whether the act contravened the equal protection quarantee by creating an unreasonable classification in imposing liability upon a prisoner who has an estate which is not imposed upon one who has no estate even though the criminal classification of the two is exactly the same.
At the time Auditor General v Hall was decided, only the three facilities named in the act were in existence. Today there are numerous other penal institutions including a women’s facility. The Prison Reimbursement Act, however, specifically limits itself to the three original institutions. The fact that certain state officials are currently acting outside the scope of the act in applying it to all state penal institutions does not mean that the scope of the act has expanded. Amending the statute to include all current and future state penal institutions is obviously a task for the Legislature. The executive branch of government cannot exercise this legislative power. Wagner v La-Salle Foundry Co, 345 Mich 185; 75 NW2d 866 (1956). Likewise, this Court cannot make this amendment to the Prison Reimbursement Act. Attorney General ex rel Connolly v Reading, 268 Mich 224; 256 NW 432 (1934).
Old age and lack of capacity to grow have rendered the Prison Reimbursement Act constitutionally infirm. The act currently creates unreasonable and arbitrary classifications between prisoners who may be liable to the state for their keep. Only the Legislature has the power to remedy this defect. We, therefore, affirm the trial court.
Affirmed.
This case might be considered to involve sex discrimination since none of the prisons listed in the act house females.
The Equal Protection Clause of the Michigan Constitution applies under the same standard as corresponding provisions of the United States Constitution. Fox v Michigan Employment Security Comm, 379 Mich 579; 153 NW2d 644 (1967).
The reimbursement to counties for certain expenses act became effective on February 12, 1978, approximately 43 years after the enactment of the Prison Reimbursement Act. | [
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Per Curiam.
Following a jury trial in the Washtenaw County Circuit Court, defendant was convicted of breaking and entering an occupied dwelling with the intent to commit larceny. MCL 750.110; MSA 28.305. On the next day, following the conclusion of a bench trial, he was convicted of being a second-felony offender. MCL 769.10; MSA 28.1082. Thereafter defendant was sentenced to serve a term of from 6-1/2 to 15 years imprisonment for the breaking and entering. However, this sentence was immediately vacated and supplanted with a sentence of from 7 to 22-1/2 years imprisonment on the habitual offender conviction. Defendant now appeals as of right.
The evidence may be briefly summarized. David Kircher, owner and resident of an apartment building in Ypsilanti testified that he had left his dwelling on December 25, 1981, to go to Washington, D.C. At that time, he left defendant, one of his tenants and a part-time employee, in charge of the premises. Nobody was given permission by Kircher to enter his apartment.
On December 26, 1981, defendant reported to the police that Kircher’s apartment had been broken into. The prosecution presented five witnesses who testified that defendant had admitted breaking into Kircher’s apartment and stealing some items. On December 29 or 30, 1981, defendant sold a ring identified by Kircher as his high school class ring to one Shannon Sheldon. Defendant claimed that he had found the ring in front of the apartment house after the larceny. Defendant denied having committed the breaking and entering and larceny.
Defendant’s first claim on appeal is that the trial court erred in denying his motion for a mistrial after the close of the prosecutor’s opening statement. The motion was premised on the following remarks made by the prosecutor, which defendant contends impermissibly presented to the jury other uncharged criminal activity:
"The defendant, also it will come out, the defendant conned the victim out of about $500 regarding the return of the victim’s stolen property preying upon the victim’s want and desire to get his property back. Testimony will show that this defendant set him up, said that if he gave him $500 bucks he’d cough up the property and our victim coughed up the $500 and the slippery defendant shot out the back door. That’s the last he saw of the money and he never did get the property back.”
Traditionally, a motion for a mistrial indicates that a party feels that something which has occurred during the course of trial precludes the trier of fact from rendering an unprejudiced verdict. People v Yarbrough, 78 Mich App 81, 86; 259 NW2d 248 (1977), vacated 402 Mich 920; 271 NW2d 430 (1978), aff'd on rehearing and remand 86 Mich App 105; 272 NW2d 345 (1978). The governing standard where prosecutorial error is complained of is whether the error is of such magnitude that the granting of a mistrial is a "manifest necessity”. People v Benton, 402 Mich 47, 56-58; 260 NW2d 77 (1977). Whether the allowance by a trial court of a prosecutor’s comments during opening argument amounts to error necessitating a mistrial is a matter of discretion for the trial judge and will not be reversed absent a clear abuse of discretion. People v Jansson, 116 Mich App 674, 690; 323 NW2d 508 (1982). In this case, the trial court did not abuse its discretion by refusing to grant a mistrial. Opening argument is the appropriate time to state the facts to be proven at trial. People v Nard, 78 Mich App 365, 374-375; 260 NW2d 98 (1977); GCR 1963, 507.1. There was considerable testimony that defendant took $500 from Kircher in exchange for Kircher’s stolen goods. The testimony, if believed, showed that defendant engaged in some activity with the stolen property. Particularly, given defendant’s effort to sell Kircher his own property, that testimony was highly probative on the issue of whether defendant broke into Kircher’s residence with an intent to steal. The prosecutor’s remarks were a fair introduction to that testimony.
Defendant next asserts that his conviction must be reversed because the trial court abused its discretion in denying the jury’s request to rehear testimony of six of the nine witnesses. The trial judge told the jurors that it would take five hours to replay the testimony, that they should "trade notes” and attempt to resolve any problems they might have concerning the testimony, and, if they felt that after further deliberations they still had problems, they should make another request to rehear the testimony.
In People v Howe, 392 Mich 670, 677-678; 221 NW2d 350 (1974), the Michigan Supreme Court held that a trial judge abuses his discretion when: (1) he denies a request to rehear testimony, and (2) forecloses the possibility that such a rehearing will ever be granted. Here, the trial court specifically left open the possibility that testimony could be reheard if the jury could not resolve its problems during the course of deliberations. In fact, after 1-1/2 hours of deliberations, the jury requested that it be allowed to hear one witness’s testimony, which request was granted. The instant case is similar to, but even more compelling for affirmance than, People v Joseph, 114 Mich App 70; 318 NW2d 609 (1982), lv den 417 Mich 877 (1983).. Particularly in light of Joseph, where two jury requests for a rehearing of the complainant’s testimony were made, neither was honored, and no later jury request was made, we see no error by the judge in his handling of this jury’s request to rehear testimony.
Defendant’s final claim on appeal is that his habitual offender conviction must be reversed because his 1965 larceny conviction was defective under People v Jaworski, 387 Mich 21; 194 NW2d 868 (1972). Defendant filed a motion to quash the supplemental information in the trial court. The transcript of the 1965 plea proceedings shows that he was not told of his right to confront his accusers at trial. Under Jaworski, supra, p 29, the confrontation right is one which a defendant must be advised of before his guilty plea may be properly accepted.
The trial court denied defendant’s motion to quash because Jaworski was not the law in 1965 when defendant’s plea was taken. We agree with the trial court’s reasoning. While the Michigan Supreme Court recently held in People v Craw ford, 417 Mich 607; 339 NW2d 630 (1983), that, in some circumstances, a conviction defective under Jaworski cannot be used as a predicate offense for purposes of a supplemental information, we find Crawford inapplicable here. It is our view that Crawford applies only to guilty pleas taken after June 2, 1969, the date Boykin v Alabama, 395 US 238; 89 S Ct 1709; 23 L Ed 2d 274 (1969), was decided. Jaworski, supra, is based upon Boykin. Footnote 5 of Crawford reveals that the defendant’s guilty plea there occurred 11 days after Boykin was decided. See People v McMillan, 389 Mich 114; 204 NW2d 682 (1973), and Crawford, ’ supra, fn 5. Because this defendant’s guilty plea came in 1965, he is not entitled to relief from his habitual offender conviction.
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Per Curiam.
Defendant was originally charged with assault with intent to murder, MCL 750.83; MSA 28.278 (Count I), and felony-firearm, MCL 750.227b; MSA 28.424(2) (Count II). Pursuant to a plea-bargaining agreement whereby the prosecution agreed to forego prosecuting Count I, defendant pled guilty to Count II as well as to an orally added count of felonious assault, MCL 750.82; MSA 28.277. Defendant was sentenced to a two-year term of probation for the orally added felonious assault count. Said term was to be served consecutively to a five-year prison term which the trial court imposed for the felony-firearm count. The trial court apparently imposed the five-year prison term pursuant to MCL 750.227b(l); MSA 28.424(2)(1) because defendant’s felony-firearm guilty-plea conviction in the instant case represented his second conviction of felony-firearm.
We find that, regardless of whether the instant conviction of felony-firearm represented defendant’s second such conviction, defendant was neither charged with being a second-time felony-firearm offender nor did he plead guilty as a second offender. Therefore, we hold that the trial court erred requiring reversal in imposing a five-year second-time felony-firearm sentence. See People v Urynowicz, 412 Mich 137; 312 NW2d 625 (1981). We reverse and remand to the trial court for a resentencing consistent with this opinion.
Reversed and remanded._ | [
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After Remand
Before: R. B. Burns, P.J., and Beasley and T. C. Megargle, JJ.
Per Curiam.
Appellant, Clare N. Sutherby, appeals as of right from a circuit court order affirming a decision of the State Tenure Commission. The tenure commission had denied his petition for review, in which he had claimed that he had been dismissed from his tenured teaching position without just and reasonable cause.
On March 23, 1973, charges were filed against appellant seeking his dismissal from his tenured teaching position. On May 29, 1973, respondent school board sustained the charges and dismissed appellant from his position. Sutherby appealed to the State Tenure Commission which sustained the dismissal. The commission’s decision was affirmed on a petition for circuit court review. This Court denied appellant’s application for delayed appeal. Upon appellant’s application, the Supreme Court remanded to this Court for consideration as on delayed leave granted. 396 Mich 824 (1976). This Court affirmed the decision of the trial court. 73 Mich App 506; 252 NW2d 503 (1977). Appellant sought leave to appeal to the Supreme Court which, in lieu of granting leave, first remanded to the respondent school board, 400 Mich 843 (1977), but upon reconsideration remanded to the State Tenure Commission for proceedings in accord with the rule announced in Luther v Alpena Bd of Ed, 62 Mich App 32; 233 NW2d 173 (1975). See 401 Mich 833 (1977). In Luther, this Court had held that the State Tenure Commission must hear teachers’ appeals de novo and make its own findings of fact and conclusions of law. This Court also held that the school board has the burden of proving just and reasonable cause for dismissal in the hearings before the commission. After the hearing on remand, the tenure commission found that appellant was dismissed for reasonable and just cause. That decision was affirmed by the circuit court and is again before this Court as an appeal as of right.
Appellant’s first claim of error concerns the tenure commission’s consideration of incidents which occurred during the 1971-1972 school year. Appellant claims that the commission should have limited its consideration to events which occurred during the school year in which charges were brought, 1972-1973.
Appellant claims that the use of charges based on events which occurred during an earlier school year is fundamentally unfair and is against public policy. We agree with the Minnesota Supreme Court which termed a similar argument "unsound”. State ex rel Cochrane v Peterson, 208 Minn 361; 294 NW 203 (1940). The Minnesota court reasoned that the patience of school administrators would be penalized by the adoption of such a principle. A similar argument was rejected by New Jersey’s highest court which was asked to interpret that state’s teacher tenure statute, one which is very similar to that of Michigan. Redcay v State Bd of Ed, 130 NJL 369; 33 A2d 120 (1943), aff'd .131 NJL 326; 36 A2d 428 (1944). We agree with that court that in some cases just and reasonable cause for dismissal may be best illustrated by numerous instances of misconduct. Moreover, to require that a teacher’s record of misconduct be wiped clean at the end of each school year might force school administrators into hasty and imprudent personnel actions out of a reasonable fear that next year’s instances of misconduct or incompetence might mistakenly be seen as isolated events rather than as part of a continuing pattern. Adoption of the doctrine urged on us by appellant would almost certainly discourage patience and forbearance by administrators in situations like the present one. We also note that adoption of such a rule would effectively insulate a teacher from dismissal or suspension for actions occurring in the last 60 days before the close of the school year, a period during which charges may not be brought. See MCL 38.102; MSA 15.2002.
Requiring teachers to answer charges concerning events which occurred during a previous school year is not fundamentally unfair. We find no instance in the present case supporting the claim of significant loss of a teacher’s ability to defend himself due to the lapse of time. While individual cases may occur in which the delay in bringing charges might render a dismissal unjust or unreasonable, fundamental fairness can be achieved without creating a general rule forbidding the consideration of charges based on events from a previous school year.
Appellant also points to the language of MCL 38.102; MSA 15.2002 in support of his claim. This section provides that "[cjharges concerning the character of professional services shall be filed at least 60 days before the close of the school year”. Appellant’s argument cannot be supported by the language of the statute or the intent behind it. "Character of professional services” is a broad phrase which can easily cover a teacher’s performance over a number of years. We think that the Legislature merely intended to provide teachers facing dismissal with some warning in advance of the coming school year. See Boyce v Royal Oak Bd of Ed, 407 Mich 312, 318; 285 NW2d 196 (1979).
Appellant claims that the tenure commission erred by denying his motion for accelerated judgment. In it, he claimed that he should be reinstated because of the failure of the tenure commission to provide him with a timely hearing. MCL 38.121; MSA 15.2021 requires the tenure commission to "provide for a hearing to be held within 60 days from the date of appeal” from a school board’s decision governed by the act. We first note our disagreement with the school district’s claim that this provision is directory and not mandatory. The use of the word "shall”, considered in the context of the act, is clearly mandatory and imperative. See Smith v School Dist No 6, Fractional, Amber Twp, 241 Mich 366, 368-369; 217 NW 15 (1928). Although we agree with appellant that the 60-day requirement is mandatory, we agree with the tenure commission that reinstatement of a teacher is not an appropriate remedy for the commission’s violation of that requirement, because it would deny the school board its "day in court” due to a situation over which the board had no control. We approve the commission’s view that mandamus is the appropriate remedy for its failure to comply with its statutory duty to hold a timely hearing. See Sears v Dep’t of Treasury, 57 Mich App 218, 224-225; 226 NW2d 63 (1974).
Appellant next claims that a tenured teacher may not be dismissed for the violation of administrative regulations when his classroom performance has been satisfactory. His very similar claim was implicitly rejected by this Court on his earlier appeal. This Court stated that a consistent pattern of violation of rules and regulations which were clearly within the powers of the school administration showed persistent insubordination to proper authority and could be presumed to have an adverse effect on the students, teachers, and staff of a school. Sutherby, supra, pp 512-513. The reasonable and just cause standard of the teacher tenure act has been construed to forbid a teacher’s discharge unless the conduct charged bears a rational and specific relationship to a detrimental effect on the school and the students. See Detroit Bd of Ed v Parks, 417 Mich 268, 281; 335 NW2d 641 (1983). In Detroit Bd of Ed, supra, p 282, the Supreme Court defined "improper reasons” as "reasons other than those of professional competency”. The phrase "professional competency” covers more than just teaching skill. We believe that it includes compliance with reasonable administrative rules and regulations which may be required for the effective operation of a school or school system. Sutherby, supra, pp 512-513.
Appellant claims that the tenure commission’s finding of just and reasonable cause for dismissal is not supported by competent, material, and substantial evidence on the whole record. The standard for review of tenure commission decisions is that set forth in Michigan Employment Relations Comm v Detroit Symphony Orchestra, Inc, 393 Mich 116, 124; 223 NW2d 283 (1974):
"The cross-fire of debate at the Constitutional Convention imports meaning to the 'substantial evidence’ standard in Michigan jurisprudence. What the drafters of the Constitution intended was a thorough judicial review of administrative decision, a review which considers the whole record — that is, both sides of the record — not just those portions of the record supporting the findings of the administrative agency. Although such a review does not attain the status of de novo review, it necessarily entails a degree of qualitative and quantitative evaluation of evidence considered by an agency. Such review must be undertaken with considerable sensitivity in order that the courts accord due deference to administrative expertise and not invade the province of exclusive administrative fact-finding by displacing an agency’s choice between two reasonably differing views. Cognizant of these concerns, the courts must walk the tightrope of duty which requires judges to provide the prescribed meaningful review.” See Beebee v Haslett Public Schools (After Remand), 406 Mich 224, 231; 278 NW2d 37 (1979).
The tenure commission held that just and reasonable cause for dismissal existed based on its finding of insubordination, which it defined as the "willful disobedience to a directive or policy by one fully understanding such directive or policy”. Ad ditionally, the commission required that the disobeyed "rule or directive must be reasonable and not arbitrarily applied”.
In support of its holding, the tenure commission made extensive findings of fact concerning the specific charges brought against appellant. It found that the teacher handbook containing relevant rules and regulations was reviewed each year with the teaching staff. The handbook informed teachers of the rules of the school district concerning the submission of lesson plans, the supervision of students in classrooms, and the use of hall passes. The commission also found that appellant was advised repeatedly that his conduct was in violation of the various rules and regulations of the school district.
The tenure commission found that three charges were sustained concerning students in appellant’s classes who were seen playing cards or chess during a class period. The commission noted that one of these incidents occurred after appellant was advised that game-playing should not be allowed during class time. These findings were supported by the evidence.
The tenure commission also sustained a charge that appellant wilfully failed to follow school policy concerning procedures for dismissing students from class, including the use of hall passes. The tenure commission found "excessive * * * noncompliance, after repeated administrative requests for adherence to” the policy. Nine specific instances of misconduct were charged. The commission failed to identify which of the specific charges were sustained. At least one of the charges (III-B) was clearly refuted. We can only assume that the commission found enough of the remaining eight charges were sustained that it could fairly con- elude that appellant had shown wilful disobedience in this area.
The tenure commission also found that appellant allowed unsupervised students to remain in his classroom during the lunch period. Again, it is not clear which of the six charges made in this area were sustained by the commission. Appellant appeared to admit that some of these allegations were true and offered no excuses for his noncompliance with the regulation. Upon our review of the record, we feel that at least some of these charges were fairly sustained.
The tenure commission also found that appellant left his classroom unsupervised on nine separate occasions. The truth of these charges was generally admitted by appellant. No persuasive excuses were offered by him. The finding that appellant had been counselled on this subject was adequately supported. We find that this charge was sustained by competent, material, and substantial evidence.
The tenure commission also found that appellant failed several times to file lesson plans with the principal’s office. Appellant admitted the charge but claimed that his lesson plans were kept in his classroom at all times. We agree with the tenure commission that this explanation did not excuse his failure to comply with the regulation concerning lesson plans.
The substantial evidence standard requires a thorough review of the evidence in an administrative proceeding, not limited to those portions of the record supporting the findings of the administrative agency. Beebee, supra, p 231. In making this factual review, however, courts must accord due deference to administrative expertise. This Court must also be careful not to invade the province of administrative fact-finding by displacing the agency’s choice between two reasonably differing views. To grant appellant relief from the tenure commission’s decision would, we believe, require that we ignore administrative expertise and displace the tenure commission’s choice between two reasonably differing views.
In this case, appellant did not engage in any blatantly defiant conduct which inescapably indicated insubordination. He did, however, repeatedly fail to comply with certain administrative rules and regulations. This Court does not possess the subject-matter expertise necessary to gauge the seriousness of a teacher’s noncompliance with administrative rules and regulations. This is an area in which we must defer to the tenure commission’s expertise. To upset its decision would require this Court to substitute its judgment concerning the seriousness of appellant’s noncompliance with administrative regulations for that of the tenure commission. We refuse to do this. We find that the tenure commission’s decision is supported by competent, material, and substantial evidence on the whole record.
We reject as without merit appellant’s other claims. Although "insubordination” was not specifically charged, appellant was notified of all of the factual claims made against him. He received adequate notice. The tenure commission did not rely heavily on hearsay evidence; its decision has support even if the hearsay evidence is not considered.
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Per Curiam.
Plaintiff and counterdefendant West Highland Limited Dividend Housing Association (West) is a partnership of which counterdefendant F. G. Budnick is the general partner. Bud-nick is also the sole shareholder of Tempo, Inc., which entered into a contract with West for the construction of an apartment project on property owned by West. Tempo, as the general contractor for this construction project, entered into written contracts with defendants and counterplaintiffs Rapid Electric Sales & Service, Inc., Ronald Lind-berg, doing business as Rapid Electric, Rapid Electric Sales & Service, and Rapid Heating and Insulation (collectively Rapid) for the performance of all electrical work in connection with the project. Defendant and cross-plaintiff Ronald Lindberg is the sole shareholder of Rapid Electric Sales & Service, Inc.
Rapid filed mechanics’ liens on the project property on the ground that Tempo had failed to pay remaining amounts due for electrical work performed. West and Tempo then filed suit seeking an order invalidating the mechanics’ liens and a judgment for damages on the ground that Rapid had breached the contracts by failing to perform according to the written plans and specifications and that no further amounts were owed in light of Rapid’s defective performance. Rapid filed a counterclaim asserting that the written plans and specifications had been orally modified, that it had performed in accordance with the contracts as modified, and that, therefore, Tempo’s failure to pay was not excused. Rapid counterclaimed that plaintiffs were liable for damages for breach of contract or unjust enrichment, and also for fraud. A jury found no cause of action as to plaintiffs’ claim for damages but returned a verdict for defendants in the amount of $180,000. The court decided the liens were valid and found defendants entitled to a total lien amount of $102,000. From a judgment incorporating the above, plaintiffs appeal and defendants cross-appeal.
The evidence adduced at trial was essentially as follows. According to defendants, prior to Rapid’s submission of bids and execution of the contracts, Lindberg and Budnick orally agreed to some modifications of the written plans and specifications and, at the time the contracts were executed, Budnick told Lindberg these changes would be reflected in written bulletins which had not yet been prepared. When these bulletins were issued, they did not contain the modifications agreed to, but Budnick assured Lindberg that he would take care of the matter and, relying on this assurance, Rapid commenced work. After Rapid had completed much of the work, Tempo insisted that the electrical work conform with the written plans and specifications, denying that the oral modifications existed, and refused to make any further payments unless Rapid gave Tempo a credit against the amounts owed because of the deviations. Rapid refused to give any credit, and Tempo stopped further payments. According to plaintiffs, Budnick never orally agreed to the modifications as claimed by Lindberg and, when Budnick discovered that Rapid was not doing the work in accordance with the written plans and specifications, Budnick asked Rapid to correct the deviations or agree to a credit and, since Rapid refused, Tempo justifiably stopped making any further payments.
I
Plaintiffs made a post-trial motion for a new trial or remittitur, claiming that the court committed evidentiary and instructional errors and that the amount of damages awarded by the jury was excessive. This motion was denied by the court without explanation. Plaintiffs assert that, because the court failed to give its reasons for denying their motion, this Court must remand for an explanation. A trial court is required by court rule to give a concise statement of its reasons in ruling on a motion for a new trial. GCR 1963, 527.7. However, the absence of a court’s reasons for denying a motion for a new trial does not necessarily require reversal or a remand. See Frederick v Detroit, 370 Mich 425, 439; 121 NW2d 918 (1963); Eger v Helmar, 272 Mich 513, 520; 262 NW 298 (1935). The nature of the issues raised in plaintiffs’ motion for new trial are not such that this Court needs a statement of the trial court’s reasons to determine whether it erred in denying the motion. Thus, we find a remand unwarranted.
II
Turning to the merits of the issues raised in plaintiffs’ motion for a new trial and reiterated on appeal, plaintiffs argue that the court committed reversible error in allowing defendants, over plaintiffs’ objection, to present testimony to the effect that Tempo had been involved in other disputes with subcontractors arising out of this construction project. More specifically, this testimony indicated that Tempo had similar disputes with other subcontractors as to the scope of the subcontractors’ obligations and had refused to pay some other subcontractors. A trial court’s rulings on the admissibility of evidence will not be reversed by this Court absent an abuse of discretion. Jackovich v General Adjustment Bureau, Inc, 119 Mich App 221, 238; 326 NW2d 458 (1982); Anderson v Harry’s Army Surplus, Inc, 117 Mich App 601, 608; 324 NW2d 96 (1982). Evidence of similar acts may be admissible as substantive evidence in a civil case under MRE 404(b). Scott v Hurd-Corrigan Moving & Storage Co, Inc, 103 Mich App 322, 341-342; 302 NW2d 867 (1981), lv den 412 Mich 881 (1981); Birou v Thompson-Brown Co, 67 Mich App 502, 512; 241 NW2d 265 (1976), lv den 397 Mich 808 (1976). For example, in a case involving a claim of fraud, such evidence is admissible to prove fraudulent intent and scheme or plan. Scott, supra.
In the present case, at the time this testimony was admitted, defendants’ claim of fraud was viable and had not yet been dismissed by the court by directed verdict. The gist of defendants’ fraud theory was that Budnick orally agreed to modifications of the written plans and specifications, inducing defendants to submit lower bid figures and to execute the contracts and that Budnick made these representations with the intention of later denying the existence of the oral modifications. The motive asserted by defendants was that Bud-nick knew the project was over budget and sought to reduce costs by later demanding that defendants’ work comply with the more expensive requirements of the written plans and specifications or that defendants agree to a credit against the contract price. Thus, this similar acts testimony was properly admitted as relevant to defendants’ claim of fraud. In addition, another issue in the case, as reflected in plaintiffs’ closing argument and the court’s instructions, was whether there had simply been a mutual misunderstanding between Budnick and Lindberg as to whether oral modifications had been agreed to, and this similar acts testimony was admissible as tending to show the "absence of mistake”, MRE 404(b), by suggesting the improbability that Tempo would have had such a number of "mutual misunderstandings” with its subcontractors.
II
Plaintiffs also contended in their motion for a new trial that the trial court erred in excluding their proffered evidence of another lawsuit brought against defendants in which defendants unsuccessfully counterclaimed for damages for harm to business reputation. Plaintiffs sought to introduce evidence of this lawsuit as relevant to disproving defendants’ claim for damages for harm to business reputation in the present case. However, in the present case defendants did not seek damages for harm to business reputation in general, but rather more specifically for damages due to the loss of credit and loss of bonding which resulted from Tempo’s actions. Plaintiffs in their offer of proof made no showing that it was this other dispute involving defendants, and not Tern po’s actions, which was the sole or partial cause of the loss of credit and loss of bonding for which defendants sought damages in the present case. Consequently, plaintiffs’ offer of proof failed to establish any connection between the other lawsuit and the particular damages claimed by defendants in the instant case, and therefore the proffered evidence was irrelevant and properly excluded by the trial court. MRE 402.
IV
Plaintiffs also moved for a new trial on the ground that the court erred in failing to instruct the jury that it had granted a directed verdict for plaintiffs on defendants’ theory of fraud and claim for exemplary damages and that the jury was, therefore, not to consider these issues. We find no reversible error. Although during voir dire and in his opening statement counsel for defendants stated that defendants were seeking exemplary damages for mental harm suffered by Lindberg, he indicated that the jury could award such damages only if the court so permitted. Defendants’ counsel in closing argument did not argue fraud or request exemplary damages. Moreover, under the instructions given by the court, the jury could not possibly have believed that they could find for defendants on a theory of fraud and award exemplary damages. The court instructed the jury that if they found Tempo had breached the contract then Tempo was liable for all damages which naturally, directly, and proximately resulted from the breach or that, if they found no valid contract existed because of a mutual mistake of material fact, they could award Rapid damages for the reasonable value of any work performed which had not been compensated for by Tempo. While ideally the court might have affirmatively instructed the jury not to consider fraud or exemplary damages, the instructions given by the court provided the jury with sufficient guidance and thus reversal is unwarranted. See Huffman v First Baptist Church of Flushing, 355 Mich 437, 445-447; 94 NW2d 869 (1959).
V
Plaintiffs assert that the court erred in denying their motion for a new trial or remittitur on the ground that the jury’s award of damages to defendants was excessive. The jury’s award of $180,000 appears to have included an amount for consequential damages since Lindberg testified that Tempo owed $102,000 on the written contract price or $114,000 for the reasonable value of work performed. Plaintiffs argue that the evidence presented by defendants as to consequential damages for loss of credit, lost profits due to loss of bonding, and additional interest due on payments to suppliers was grossly speculative. We disagree.
With respect to damages for loss of credit, Lind-berg testified that his bank informed him that, due to the dispute with Tempo, his previously established line of credit was being withdrawn. Consequently, he had to obtain an SBA loan for which the interest rate was higher and would amount to $90,000 more than under his previous credit arrangement. Regarding additional interest, Lind-berg testified that Tempo’s failure to pay caused Rapid to lose discounts by not being able to pay its suppliers promptly, and a discount of 2 percent on $225,000 was lost, amounting to $4,500. Clearly, these damages figures were based on objective criteria and mathematical calculation, not mere speculation. If Lindberg’s calculations were in er ror, plaintiffs were free to present their own evidence so demonstrating.
Lindberg also testified that Tempo’s actions caused Rapid to lose its bonding, which prevented Rapid from being able to bid on other jobs. Lind-berg estimated his lost profits at $26,250, which figure he derived by determining which jobs he would have bid on during that period had he had bonding, and estimating that he would have been awarded contracts on one out of every three to four jobs bid, with a profit margin of 3 percent. We find this evidence sufficient to warrant an award of damages for lost profits. While perhaps to some degree speculative, this method of calculating lost profits had a reasonable degree of certainty and was not based solely on conjecture and speculation. Stimac v Wissman, 342 Mich 20, 28; 69 NW2d 151 (1955); Wolverine Upholstery Co v Ammerman, 1 Mich App 235, 244-246; 135 NW2d 572 (1965).
Finally, plaintiffs argue that these damages could have been caused by factors other than Tempo’s actions. We find that Lindberg’s testimony was sufficient for the jury to conclude that these damages were the natural and proximate result of Tempo’s breach. Sattler v Fisher Contracting Co, 30 Mich App 617, 622; 186 NW2d 875 (1971). Plaintiffs were free to present their own evidence and to argue that other factors were in fact the cause of these damages.
VI
At the conclusion of the jury trial, the trial court addressed the question of the validity of the mechanics’ liens filed by defendants. The liens filed were in the total amount of $161,629. Plaintiffs argued that, since by Lindberg’s own testimony only $102,000 was owed on the contract price, the liens were filed in bad faith and consequently defendants forfeited any right to a lien. The trial court instead simply reduced the total lien amount to $102,000. Even where the amount of a lien filed is found to be excessive, the lien is lost only where bad faith is evident; if the error in the amount was due to a good faith mistake, the appropriate remedy is simply to reduce the amount of the lien. Georgia-Pacific Corp v Central Park North Co, 394 Mich 59, 63-64; 228 NW2d 380 (1975); Morman v Ryskamp, 235 Mich 140; 209 NW 52 (1926). In the present case, defendants submitted to the trial court affidavits reflecting how the lien amounts were calculated. While our review of these affidavits leads us to conclude that an improper method of calculation was used, no bad faith is evident. All of the items listed were for the costs of labor and materials actually incurred by defendants relative to this project, unlike Sacchetti v Recreation Co, 304 Mich 185, 192; 7 NW2d 265 (1943), relied on by plaintiffs, where the lien included amounts for labor not actually performed and materials not in fact furnished.
VII
The final issue raised by plaintiffs in their appeal is that the court improperly entered a judgment for money damages against not only Tempo, but West as well. Plaintiffs argue that West could not be considered liable on either the breach of express contract or unjust enrichment theories presented to the jury and that the only remedy defendants might have against West is a mechanics’ lien. We need not address the substantive merits of this claim for we find that plaintiffs waived any claim of error. At no time prior to submission of the case to the jury did plaintiffs seek the dismissal of West as a party vis-á-vis defendants’ claims for monetary damages. Moreover, plaintiffs failed to request any separate instructions relative to the liability of West and, indeed, even stipulated that, for purposes of the instructions and jury deliberations, Tempo and West could be jointly referred to as Tempo and that the jury could return a verdict for Tempo or Rapid, with no further distinction being necessary. Thus, it is clear that, even assuming some or all of the jury’s award of $180,000 could not properly be entered against West, the error was of plaintiffs’ own doing. "A party cannot sit back and after the jury decides against him claim error after he had been given the fullest opportunity to correct any alleged error at the trial.” Baldwin v Nall, 323 Mich 25, 31; 34 NW2d 539 (1948). We further note that plaintiffs did not raise this claim of error in their motion for new trial or objections to entry of judgment filed soon after the jury’s verdict, but rather delayed another five months before filing an additional objection to entry of judgment raising this claim.
VIII
We now address the issues presented by defendants in their cross-appeal, first of which is that the court erred in granting a directed verdict for plaintiffs on defendants’ fraud theory of liability and, consequently, refusing to instruct on defendants’ fraud theory and claim for exemplary damages for mental harm suffered by Lindberg. Defendants’ fraud theory was that, when Budnick orally agreed to modifications of the plans and specifications and promised to incorporate these modifications in written bulletins, he had no present inten tion to abide by these promises and made these representations to deceive defendants and to induce defendants to make the bids and enter into the contracts. Defendants admit that they have no desire to disturb the jury’s $180,000 award of damages for economic losses, and raise this claim of error only for the purpose of procuring a remand on the issue of exemplary damages based on their fraud theory. Thus, the crux of the issue before us is whether defendants were entitled to jury consideration of exemplary damages based on their fraud theory.
In cases involving breach of a commercial contract, exemplary damages are not recoverable, with the only exception being where there is "proof of tortious conduct existing independent of the breach”. Kewin v Massachusetts Mutual Life Ins Co, 409 Mich 401, 420-421; 295 NW2d 50 (1980). In the present case, while defendants did present proof of tortious conduct in the form of fraud, the remaining question is whether that fraudulent conduct was "independent of the breach”. Kewin, supra. We find that it was not independent, but rather part of the breach itself and merely demonstrated the bad faith nature of the breach. Kewin, supra, pp 422-423.
The breach asserted by defendants was plaintiffs’ failure to pay the remaining amounts owed for defendants’ electrical work, but in order to prove this claim defendants were required to show that they performed their contractual obligations and were not themselves in breach, which would have excused plaintiffs’ nonpayment. Since defendants’ work deviated from the written plans and specifications, defendants had to demonstrate that Budnick had orally agreed to modifications with which defendants had complied. Hence, the representations made by Budnick which formed the basis of defendants’ fraud claim were also an essential ingredient of defendants’ breach of contract claim, and not independent thereof. That Budnick may have made these representations with no intention of ultimately following through on them merely reflects the bad faith nature of the later breach by refusing to pay because of defendants’ noncompliance with the written plans and specifications.
Thus, the present case is similar to Kewin, supra, pp 422-423, where the plaintiff-insured claimed breach of an insurance contract and also alleged deceit and misrepresentation by the defendant-insurer in handling the claim, and the Court held that exemplary damages were not available because no tortious conduct independent of the breach existed. See also Van Marter v American Fidelity Fire Ins Co, 114 Mich App 171, 185; 318 NW2d 679 (1982). While defendants rely on Oppenhuizen v Wennersten, 2 Mich App 288; 139 NW2d 765 (1966), and White v Production Credit Ass’n, 76 Mich App 191; 256 NW2d 436 (1977), lv den 401 Mich 848 (1977), we note that those decisions predated Kewin, supra, and thus were decided without the benefit of the Kewin Court’s clarification that, in cases involving commercial contracts, exemplary damages are recoverable only where the tortious conduct, such as fraud, is independent of the breach. Thus, we decline to treat those decisions as controlling the instant case. Because defendants did not submit proof of fraudulent conduct independent of the breach and therefore are not entitled to recover exemplary damages, the trial court’s grant of a directed verdict for plaintiffs on defendants’ fraud theory and refusal to instruct on exemplary damages did not constitute reversible error.
IX
The other issue raised by defendants in their cross-appeal is that the court erred when, at the close of the proofs, the court dismissed Budnick as a party. Defendants claim that Budnick should not have been dismisssed because the jury could have found him personally liable based on defendants’ fraud theory. We have already determined above that defendants were not entitled to exemplary damages based on their fraud theory and, as to all other damages, defendants have expressed satisfaction with the jury’s award of $180,000. Further, we have rejected plaintiffs’ claims of error and affirm the judgment of $180,000 entered against Tempo and West. Budnick, as the general partner of West, is already subject to personal liability on defendants’ judgment as against West. Commonwealth Capital Investment Corp v McElmurry, 102 Mich App 536, 541; 302 NW2d 222 (1980). Thus, any error in dismissing Budnick as a party was harmless and does not warrant disturbance of the judgment entered by the court.
Affirmed. No costs, neither plaintiffs nor defendants having fully prevailed. | [
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Michael J. Kelly, J.
Defendant was charged with possession with intent to deliver less than fifty grams of a mixture containing cocaine. MCL 333.7401(2)(a)(iv); MSA 14.15(7401)(2)(a)(iv). Defendant appealed the denial by the trial court of her motion to quash the information and suppress the evidence seized. This Court denied leave to appeal. However, in lieu of granting leave to appeal, the Supreme Court remanded to this Court for consideration as on leave granted. People v Locklear, 429 Mich 866; 413 NW2d 428 (1987).
Evidence taken at defendant’s preliminary examination revealed that Lieutenant Jack Baird went to Judge Don Binkowski’s residence at approximately 11:15 p.m. on January 17, 1984, to obtain a search warrant for 22620 Oak Lane Road in Warren. Baird testified that he swore to the facts in the affidavit and was told by the judge to sign the warrant. Baird stated that he then inadvertently signed on the signature line designated for the issuing magistrate.
Subsequently, at approximately 11:50 p.m. on the same date the home at 22620 Oak Lane Road was entered and searched. The search was nonconsensual. The items seized formed the basis for the charge against defendant. At the preliminary ex amination, the examining magistrate was Judge Binkowski. The judge noted that he did sign the jurat and that he did so with the intention of authorizing the search warrant. He did not know why his signature did not appear on the warrant. Thereafter, on the continued examination date, Judge Binkowski saw the issue as one of form over substance and ruled that the search warrant was valid. Defendant was bound over to circuit court.
At the trial court level defendant moved to quash the information and suppress the evidence on the ground that the search warrant was not signed or issued by a neutral and detached magistrate—but rather by the officer in charge of the case, Lieutenant Baird. The trial court denied the motion and that decision forms the sole basis of this appeal.
MCL 780.651; MSA 28.1259(1) provides:
When an affidavit is made on oath to a magistrate authorized to issue warrants in criminal cases and when the affidavit establishes the grounds for issuing a warrant pursuant to this act, the magistrate, if he is satisfied that there is reasonable or probable cause therefor, shall issue a warrant to search the house, building or other location or place where the property or thing which is to be searched for and seized is situated.
In People v Hentkowski, 154 Mich App 171; 397 NW2d 255 (1986), a nearly identical fact situation was presented. Defendant there faced possession of controlled substance charges based on evidence seized pursuant to a warrant. Defendant moved to suppress this evidence because the search warrant was not signed by a magistrate. As here, the magistrate in People v Hentkowski failed to sign the warrant, although he did sign the line on the affidavit (the jurat), acknowledging that the affida vit was subscribed and sworn before him. In People v Hentkowski, for purposes of analysis, the panel presumed there was probable cause to search. However, the Court noted that both the Fourth Amendment to the United States Constitution and the Michigan Constitution, Const 1963, art 1, § 11, contained warrant requirements that must be met for a valid search. Relying on these constitutional provisions the Court concluded that a search or seizure undertaken without a warrant, where none of the exceptions to the warrant requirement apply, or pursuant to an invalid warrant was "unreasonable per se.” People v Hentkowski, supra at 176.
Holding that in order for the police to obtain a valid warrant the constitutional requirement that the warrant must "issue” had to be met, the Hentkowski Court then concluded "that a magistrate 'issues’ a 'warrant’ only when he signs an appropriate document and turns it over to the proper person.” Id. at 177.
We believe that this reasoning provides a sound basis for reversing the denial of defendant’s motion to quash the information and suppress the evidence seized. The warrant in question here could not "issue” without the signature of a neutral detached magistrate.
We also find that the facts and issues presented here are distinguishable from People v Mitchell, 428 Mich 364; 408 NW2d 798 (1987). The critical fact presented in Mitchell was that the affiant had failed to sign the affidavit accompanying the search warrant. The Supreme Court held that this created a presumption of invalidity that "may be rebutted by a showing that the facts in the affidavit were presented under oath to the magistrate who authorized the issuance of the search warrant.” Id. at 366.
Here we are faced with a more fundamental problem. The officer in charge of the investigation was the one who signed the line meant for the magistrate issuing the warrant. For that reason, we hold that, consistent with both United States and Michigan constitutional authority, for a valid warrant to issue it must be properly signed by a neutral and detached magistrate. Shadwick v City of Tampa, 407 US 345, 350; 92 S Ct 2119; 32 L Ed 2d 783 (1972), People v Hentkowski, supra. That was not the case here and the warrant used to seize the items that supported the charges against defendant was invalid.
Reversed and remanded.
McDonald, P.J., concurred. | [
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Per Curiam.
Defendant pled nolo contendere to the charge of assault of an employee of a place of confinement, MCL 750.197c; MSA 28.394(3), and was sentenced to two to four years in prison, to be served consecutively to the sentence he was serving at the time of the offense.
Of several issues raised on appeal, defendant’s first claim is dispositive and makes consideration of the other issues unnecessary. Defendant argues that his conviction must be reversed because the trial court lost jurisdiction over him when a trial was not commenced within 180 days as required by MCL 780.131; MSA 28.969(1). We agree.
It is clear that the statute applies to defendant, who was an inmate at Marquette Prison at the time of the charged offense on May 26, 1981. People v Woodruff, 414 Mich 130; 323 NW2d 923 (1982). The complaint and warrant were issued on June 4, 1981, preliminary examination was held on June 26, 1981, arraignment on August 17, 1981, and pretrial on September 2, 1981. On July 26, 1982, 417 days after the issuance of the complaint and warrant, 327 days after the pretrial, and after defendant’s motion to dismiss was denied, a jury was impanelled for the trial of the cause. At that point, defendant entered his nolo plea in return for dismissal of other charges. The record reveals that none of the delay in bringing defendant to trial was attributable to the defendant. In denying defendant’s motion to dismiss, the trial court indicated that a "highly unusual number of cases at the district court level” as the result of the Marquette Prison disturbances of May 26, 1981, caused docket congestion which "cannot be said to be attributable to bad faith on the part of prosecution”.
In People v Asher, 32 Mich App 380; 189 NW2d 148 (1971), lv den 385 Mich 767 (1971), this Court did acknowledge that the excessive court load occasioned by the Detroit civil disturbances of 1967, along with other justifiable grounds, excused an additional delay of 46 days. That reasoning cannot, however, be extended to an unexplained delay of the length found in this case. The people here have made no affirmative showing of unavoidable delays justifying inaction, and the fact that the court docket was crowded, without more, is not sufficient. People v Forrest, 72 Mich App 266, 273; 249 NW2d 384 (1976). In Forrest, supra, we stated:
"We hold that, if the defendant has not contributed to the delay, a period of otherwise unexplained inaction in excess of 180 days in the prosecution of a charge pending against an inmate is per se a violation of the statute, unless the people make an affirmative showing of exceptional and unavoidable circumstances which hamper the normally efficient functioning of the trial courts”.
As has been indicated, none of the 327-day period of inaction in this case is attributable to the defendant, and we are compelled to conclude that the trial court lost jurisdiction to try defendant. MCL 780.133; MSA 28.969(3); People v Moore, 96 Mich App 754, 759; 293 NW2d 700 (1980).
Defendant’s conviction is reversed, and the case remanded to the circuit court with directions to enter an order of dismissal of the charge with prejudice. | [
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G. Schnelz, J.
Plaintiffs appeal as of right from an order granting summary disposition in favor of defendant First National Bank and Trust Company of Sturgis on Counts n and in of plaintiffs’ complaint pursuant to MCR 2.116(C)(10). We reverse.
In 1982 defendants William G. Steger and Kathryn Steger sold a house located in St. Joseph County to plaintiffs for $185,000 on a land contract. Plaintiffs’ down payment consisted of their summer cottage, valued at $85,000, plus $20,000 in cash. The remaining $80,000 was to be paid in monthly payments of $733 at eleven percent interest. The monthly payments were to be made until July 1, 1985, at which time a balloon payment for the remaining balance was due.
Defendants Steger had a mortgage on the home with defendant bank and designated the bank as their collection agent in paragraph (3)(k) of the land contract. Defendant bank was to apply approximately $693 of plaintiffs’ land contract payment to defendants Steger’s mortgage and send the remaining $40 balance to defendants Steger.
Plaintiffs initially made only the monthly installment payments of $733. Then, on or about May 1, 1983, plaintiffs made a $30,000 land contract payment, which reduced the principal owed on the land contract to $50,000. Defendant bank applied $693 of the $30,000 to defendants Steger’s mortgage and remitted the remainder of plaintiffs’ payment to defendants Steger. As a result, the balance due on defendants Steger’s mortgage to the bank exceeded plaintiffs’ land contract debt. On June 17, 1983, plaintiffs, defendants Steger and defendant bank entered into a real estate escrow agreement in conjunction with the land contract sale, designating the bank as the escrow agent to hold and deliver the warranty deed.
On July 1, 1985, plaintiffs made a final balloon payment of $42,300 and defendant bank delivered to plaintiffs the warranty deed on the home. However, defendants Steger still owed approximately $17,600 on their mortgage debt to defendant bank.
Defendants Steger refused to pay their outstanding mortgage debt. By notice dated November 19, 1985, defendant bank declared defendants Steger in default on their mortgage in the amount of $17,622.52. A mortgage sale was set for December 23, 1985.
On November 27, 1985, plaintiffs filed a complaint against both the Stegers and defendant bank seeking relief from the foreclosure proceeding. Count i of plaintiffs’ complaint alleged that defendants Steger failed to deliver marketable title free and clear of the mortgage lien. In Counts n and hi, plaintiffs sought a judgment against the bank in a sum equal to the unpaid mortgage balance. While the complaint could have been drafted with more clarity, we discern three potential theories of liability asserted by plaintiffs against the bank: breach of contract, negligence, and liability to plaintiffs as third-party beneficiaries of a collection agreement between the Stegers and the bank.
i
In deciding whether to grant or deny a motion for summary disposition brought under MCR 2.116(0(10) the court is required to view the matter in a light most favorable to the nonmoving party, giving that party the benefit of reasonable doubt to find any facts in support of its assertion that an issue of fact exists. Horen v Coleco Industries, Inc, 169 Mich App 725, 728; 426 NW2d 794 (1988). Before granting summary disposition, the court must be satisfied that it would be impossible for the claim asserted to be supported by the evidence at trial. Id. The trial court concluded that, as a matter of law, defendant bank was entitled to summary disposition on Count ii because the court was unable to find a duty owed by the bank to plaintiffs. We find that the bank had certain duties to the plaintiffs arising from the real estate escrow agreement and its status as escrow agent.
The duties and liabilities imposed upon an escrow agent are those set forth in the escrow agreement. The Starboard Tack Corp v Meister, 103 Mich App 557, 562; 303 NW2d 38 (1981). The escrow agreement, like all contracts, is to be construed to effectuate the intent of the parties. If the agreement is ambiguous, the facts and circumstances surrounding the creation of the agreement may be considered. Id.
The real estate escrow agreement provided in pertinent part:
The escrow agent is instructed by sellers to deliver the Warranty Deed to purchasers when the full amount of principal and interest, as specified in the land contract, have been paid, which shall be accomplished when the sellers have provided the escrow agent with a receipt showing all amounts of principal and interest have been paid. In addition, the purchasers shall have complied with all of the terms and conditions of the land contract, including the payment of taxes, insurance and special assessments, which shall also be acknowledged by sellers to escrow agent.
The land contract was incorporated by reference into the escrow agreement. Paragraph 3(b) of the land contract provides that, if the seller’s title is encumbered by a mortgage, the seller is obligated to keep payments on the mortgage current. Should the seller default on its mortgage, the contract allows the purchaser the right to pay on the mortgage with such payments to be credited on the land contract. The last sentence of paragraph 3(b) states:
When the amount owing hereon is reduced to that owing upon such contract or mortgage or upon any mortgage executed under either of the powers contained in this contract, a conveyance shall be made in the form above provided with a covenant by the grantee to assume and pay the same.
Under the terms of paragraph 3(b), at the time plaintiffs made the $30,000 principal payment, reducing the balance owed on the land contract to a sum less than the balance owed on the mortgage, the property should have been conveyed to the plaintiffs subject to assumption of the balance then owing on the mortgage.
We think a genuine issue of material fact exists as to whether the failure of the bank to deliver the deed to plaintiffs subject to assumption of the mortgage in accordance with paragraph 3(b), upon execution of the escrow agreement, constituted a breach of the bank’s contractual duties under paragraph 2 of the escrow agreement. Under paragraph 7 of the escrow agreement, the bank is liable for acts which are contrary to the provisions of the escrow agreement, provided the bank has knowledge of the necessary facts to determine that its actions are contrary to the provisions of the escrow agreement and further provided such acts were not performed in good faith. Where, as here, the same party was acting as escrow agent, collection and disbursement agent, and was the mortgagee on the underlying mortgage, a genuine issue of fact is presented as to whether that party (the bank) had knowledge of the necessary facts to determine that its actions were contrary to the provisions of the escrow agreement and not taken in good faith.
ii
Alternatively, a genuine issue of fact exists as to whether the bank’s failure to deliver the deed subject to assumption of the mortgage constitutes negligence. While we agree with defendant that, as collection agent, the bank was not acting as agent for plaintiffs, as escrow agent, the bank was plaintiffs’ agent.
An escrow agent is the agent of both parties to the escrow agreement. Laurentide Leasing Co v Schomisch, 382 Mich 155, 161; 169 NW2d 322 (1969); Frankiewicz v Konwinski, 246 Mich 473, 477; 224 NW 368 (1929). The escrow agent ceases to be the agent of both parties and becomes agent only of the party in whom title to the property held in escrow vests when the property has been placed in escrow under an agreement that it is to go to that party upon the meeting of a condition and that condition is met. Edward Rose Sales Co v Shafer, 41 Mich App 105, 107; 199 NW2d 655 (1972). Thus, an escrow agent may be liable in tort for the negligent performance of its duties as escrow agent or breach of fiduciary responsibilities owed to its principal. See Michigan National Bank v The Kroger Co, 619 F Supp 1149, 1156 (ED Mich, 1985).
Where a person assumes to and does act as the depositary in escrow, he is absolutely bound by the terms and conditions of the deposit and charged with a strict execution of the duties voluntarily assumed. He is held to strict compliance with the terms of the escrow agreement. If he violates instructions or acts negligently, he is ordinarily liable for any loss occasioned by his breach of duty. See 28 Am Jur 2d, Escrow, § 16, p 24, and § 18, p 27. [Katleman v US Communities, Inc, 197 Neb 443, 447; 249 NW2d 898 (1977).]
Whether, in light of the bank’s knowledge of the mortgage and the terms of the land contract, the bank’s failure to deliver the warranty deed to plaintiffs upon execution of the escrow agreement or failure to seek further instructions from the plaintiffs fell short of the proper standards for the performance of its duties as an escrow agent or breached fiduciary duties owed to plaintiffs is a matter to be decided by the trier of fact.
hi
The final theory of liability asserted against the bank was based on plaintiffs’ asserted status as third-party beneficiaries of the collection and disbursement agreement between defendants Steger and the bank.
Plaintiffs, while parties to both the land contract and escrow agreement, were not parties to the agreement between the Stegers and the bank, wherein the bank agreed to collect plaintiffs’ payments under the land contract, retain a portion of the payment for payment of the Stegers’ mortgage and remit the balance to the Stegers for payment on the land contract. Plaintiffs claim to be third-party beneficiaries of this agreement pursuant to MCL 600.1405; MSA 27A.1405 and further claim that the bank breached its obligations under this agreement when it failed to apply the $30,000 payment on the mortgage principal balance.
Under similar facts, the Supreme Court of Alaska found the plaintiffs to have a viable third-party beneficiary claim. In King v First National Bank of Fairbanks, 647 P2d 596 (Alas, 1982), the plaintiffs purchased certain real property from Elmer and Lesta Olson, who had previously acquired the land from the state of Alaska under a long-term purchase agreement wherein the state retained legal title pending full payment of the purchase price. In conjunction with the execution of certain documents pertaining to the purchase by plaintiffs from the Olsons, the Olsons signed a document entitled "Collection Instructions” addressed to the defendant First National Bank of Fairbanks. The document stated that the deed of trust and other documents were deposited with First National subject to the instructions in the document. The instructions directed First National to accept the purchasers’ payments, remit a portion of each payment to the state toward satisfaction of the Olsons’ purchase contract, and deposit the balance of the payment in the Olsons’ First National savings account. Upon full payment, First National was to forward the deed of trust to the plaintiffs. Unbeknownst to the plaintiffs, the Olsons subsequently altered the collection instructions so as to have First National credit the entire amount of each payment to the Olsons’ bank account. Sometime after they paid the purchase price in full, the plaintiffs were notified that the state had terminated the Olsons’ contract due to nonpayment.
The plaintiffs brought suit against First National, alleging negligence and breach of an escrow agreement between First National, the Olsons, and the Kings. The lower court granted summary judg ment in favor of First National. The Alaska Supreme Court reversed in part. While the court held that First National could not be held liable for breach of an escrow agreement, because no escrow agreement had been entered into between First National and the plaintiffs, the court stated:
However, the Bank is not necessarily free from liability as the Kings may be third party beneficiaries of the contract between the Olsons and the Bank. The applicable rule is:
"[W]hen an [agent’s] employment is for the benefit of a particular person or for the performance of a single obligation by the principal, it may be found that the agreement with the principal was a contract for the benefit of the donee or obligee. If so, the agent is responsible to such person for his non-performance or misperformance . . . .”
Restatement (Second) of Agency § 342, comment a (1958). An agent acting on behalf of one person may be held liable to a third person for failure to perform a contract intended to benefit the third person. The third party is justified in relying on the contract and it may not be changed without his consent. [647 P2d 600.]
The court concluded that the documents submitted created a genuine issue of material fact on the issue of whether the plaintiffs were beneficiaries of the contract between First National and the Olsons and reversed the order of summary judgment on the breach of contract claim.
MCL 600.1405; MSA 27A.1405 provides:
Any person for whose benefit a promise is made by way of contract, as hereinafter defined, has the same right to enforce said promise that he would have had if the said promise had been made directly to him as the promisee._
In the instant case, the bank promised to apply the monthly payments collected by it to reduce the mortgage balance. In light of the bank’s dual status as collection/disbursement agent and mortgagee, its knowledge of the land contract, and the provision in paragraph 3(b) of the land contract obligating the seller to keep the mortgage current and providing the purchaser a means of doing so should the seller default, we construe the bank’s promise to apply a portion of the payments to the mortgage as "something direct for plaintiffs.” Rieth-Riley Construction Co, Inc v Dep’t of Transportation, 136 Mich App 425, 430, 432; 357 NW2d 62 (1984), lv den 422 Mich 911 (1985).
Our inquiry does not end here, however. While it is undisputed that the bank promised to apply a portion of the normal monthly land contract payment to the monthly payment due on the mortgage, a genuine issue of material fact exists regarding what the agreement was between the bank and defendants Steger as to how other-than-normal monthly payments would be allocated. The bank argues the parties did not intend that such payments would be applied to the mortgage principal balance; however, the bank did apply the entire final balloon payment to reduce the principal indebtedness on the mortgage. The issue must be resolved by the trier of fact.
iv
Accordingly, for the reasons stated in this opinion, we reverse the order of summary disposition in favor of defendant bank and remand this matter to the trial court for further proceedings consistent with this opinion. We do not retain jurisdiction.
Sullivan, P.J., concurred.
The Alaska Supreme Court held that the negligence claim against First National was barred by the statute of limitations. | [
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Per Curiam.
Defendants appeal from an order of the circuit court which granted summary disposition in favor of plaintiff and entered a permanent injunction. The injunction enjoined defendants from building on their house a balcony which extended further than five feet in front of plaintiff’s residence, from removing trees not critical to the construction of defendants’ house, and from interfering with plaintiff’s sprinkler system. We reverse.
Plaintiff, a resident of Lot 10 of the Upper Straits Beach subdivision of West Bloomfield Township, expressed an interest in purchasing Lot 11, which was contiguous to his property. No price was mentioned. The owner, Mary Jane Hacala, agreed to sell the property, but the parties were unable to agree on the price.
In 1983, Hacala entered into an agreement to sell Lot 11 to defendants. Plaintiff filed suit in Oakland Circuit Court demanding specific performance of his "contract” with Hacala. He also filed a lis pendens on Lot 11. Plaintiff and defendants then entered into negotiations in an attempt to resolve the matter. The negotiations centered on the setback of defendants’ proposed house on Lot 11. In 1985, the parties resolved their differences. In consideration of defendants’ payment of $1,000, plaintiff withdrew his circuit court suit and removed the lis pendens from Lot 11.
The negotiations regarding the setback of defendants’ proposed house were protracted and acrimonious. In some instances, the parties bargained over feet and inches. Ultimately, the parties executed two separate documents. The "Declaration of Restriction, Lot 11, Not Running with the Land, Upper Straights Beach subdivision” (the declaration) contained the following restriction on defendants’ right to build on their property:
Set back from Lake and Lot 10: No building, structure, fence, outbuilding or appurtenance of any nature whatsoever, except an outdoor patio or deck, which does not include view-obstructing sides shall be located South of a straight line which runs generally in an east-west direction and which is parallel to and 5 feet south of a line which intersects the southwest and southeast corners of the residence currently situated on Lot 10 of said subdivision and the lot line between Lot 11 and Lot 12 of said subdivision.
Enforcement was to be by proceedings at law or in equity. In addition, the parties executed an "Agreement as to Construction on Land” (the agreement). The agreement provided that any balcony attached to defendants’ proposed house would not violate the agreed-upon setback, that defendants would either grant an easement for that portion of plaintiff’s sprinkler system intruding onto their property or move the system, and that defendants would not remove trees on Lot 11 unless the removal was critical to the construction of their home. Enforcement could be by proceedings in equity.
Defendants received approval of their construction plans from the Zoning Board of the Township of West Bloomfield and, in December, 1985, stakes and markers indicating the dimensions of the house were placed in the ground. In March, 1986, the basement was excavated. Defendants alleged that, on March 31, plaintiff visited the site, observed the excavation, and reviewed the plans for the house with the contractor. Plaintiff denies that he visited the site, that he reviewed any plans, or that the basement was excavated on March 31.
While grading defendants’ property, the contractor uncovered a system of pipes servicing plaintiff’s sprinkler system. Defendants allege that plaintiff had represented to them that only one sprinkler pipe encroached on their property. Plaintiff denies making any representations concerning his sprinkler system.
In June, 1986, plaintiff filed a complaint alleging that defendants had violated the declaration and the agreement and seeking to enjoin defendants from locating any portion of their residence further than five feet in front of his residence, from removing trees on their lot, and from interfering with his sprinkler system. Plaintiff also filed a motion for a preliminary injunction, seeking the same relief.
In their answer, defendants denied that they had violated either the declaration or the agreement in any way. Defendants also filed special and affirmative defenses in which they alleged that plaintiff had fraudulently induced them to sign the declaration and the agreement by representing to them that they had reserved the right to have their home extend a total of ten feet in front of his residence, and by representing to them that only one sprinkling pipe encroached on their property. Furthermore, defendants alleged that no meeting of the minds of the parties had occurred with either the declaration or the agreement.
A hearing on plaintiffs motion for a preliminary injunction was scheduled for June 11, 1986. Counsel appeared, but no argument was presented. The hearing was adjourned to June 25, 1986. On that date, no proofs were presented, and plaintiff’s counsel requested additional time to prepare. The court granted the request. On July 18, 1986, the trial court entered an opinion and order granting plaintiff a preliminary injunction. The court enjoined defendants from building a balcony, that extended further than five feet in front of plaintiff’s residence, from removing any trees not critical to the construction of their home, and from interfering with plaintiff’s sprinkler system.
Defendants moved to vacate the preliminary injunction on the ground that the trial court had not held a hearing pursuant to MCR 3.310(A) at which plaintiff was required to establish that he was entitled to injunctive relief. Defendants stated that the trial court never took testimony or entertained oral argument on the motion.
Plaintiff filed a motion for summary disposition pursuant to MCR 2.116(C)(9) and (10). He stated that, because defendants had failed to state a defense to the claims made against them, and because no genuine issue of material fact existed, he was entitled to summary disposition making the injunction permanent.
In an opinion and order dated May 8, 1987, the trial court denied defendants’ motion to vacate the preliminary injunction. The court stated that a hearing was not warranted because the parties had briefed the issues and engaged in oral argument. In addition, the court granted plaintiff’s motion for summary disposition on the grounds that defendants had failed to state a defense to the claims made against them. The court found that no fraud had occurred. The court made the injunction permanent.
Defendants first argue that the trial court erred in granting plaintiffs motion for preliminary injunction and, thereafter, in making the injunction permanent without first having brought the matter on for hearing. We agree as nothing in the record before us establishes plaintiffs entitlement to injunctive relief.
Injunctive relief is an extraordinary remedy. In Michigan State Employees Ass’n v Dep’t of Mental Health, 421 Mich 152, 157-158; 365 NW2d 93 (1984), our Supreme Court listed a four-factor analysis by which to determine if a preliminary injunction should issue: 1) the likelihood that the party seeking the injunction will prevail on the merits; 2) the danger that the party seeking the injunction will suffer irreparable injury if the injunction is not issued; 3) the risk that the party seeking the injunction would be harmed more by the absence of an injunction than the opposing party would be by the granting of the relief; and 4) the harm to the public interest if the injunction is issued.
Furthermore, in Bratton v DAIIE, 120 Mich App 73, 79; 327 NW2d 396 (1982), this Court articulated the considerations which surround the decision to issue a preliminary injunction:
The grant or denial of a preliminary injunction is within the sound discretion of the trial court. Grand Rapids v Central Land Co, 294 Mich 103, 112; 292 NW 579 (1940); Michigan Consolidated Gas Co v Public Service Comm, 99 Mich App 470, 478; 297 NW2d 874 (1980). The object of a preliminary injunction is to preserve the status quo, so that upon the final hearing the rights of the parties may be determined without injury to either. Gates v Detroit & M R Co, 151 Mich 548, 551; 115 NW 420 (1908). The status quo which will be preserved by a preliminary injunction is the last actual, peaceable, noncontested status which preceded the pending controversy. Steggles v National Discount Corp, 326 Mich 44, 51; 39 NW2d 237 (1949); Van Buren School Dist v Wayne Circuit Judge, 61 Mich App 6, 20; 232 NW2d 278 (1975). The injunction should not be issued if the party seeking it fails to show that it will suffer irreparable injury if the injunction is not issued. Niedzialek v Barbers Union, 331 Mich 296, 300; 49 NW2d 273 (1951); Van Buren School Dist, supra, p 16. Furthermore, a preliminary injunction will not be issued if it will grant one of the parties all the relief requested prior to a hearing on the merits. Epworth Assembly v Ludington & N R Co, 223 Mich 589, 596; 194 NW 562 (1923). Finally, a preliminary injunction should not be issued where the party seeking it has an adequate remedy at law. Van Buren School Dist, supra, p 16.
Clearly, injunctive relief is an extraordinary remedy that should be granted only when justice requires.
MCR 3.310(A) governs preliminary injunctions and provides as follows:
(1) Except as otherwise provided by statute or these rules, an injunction may not be granted before a hearing on a motion for a preliminary injunction or on an order to show cause why a preliminary injunction should not be issued.
(2) Before or after the commencement of the hearing on a motion for a preliminary injunction, the court may order the trial of the action on the merits to be advanced and consolidated with the hearing on the motion. Even when consolidation is not ordered, evidence received at the hearing for a preliminary injunction that would be admissible at the trial on the merits becomes part of the trial record and need not be repeated at the trial. This provision may not be used to deny the parties any rights they may have to trial by jury.
(3) A motion for a preliminary injunction must be filed and noticed for hearing in compliance with the rules governing other motions unless the court orders otherwise on a showing of good cause.
(4) At the hearing on an order to show cause why a preliminary injunction should not issue, the party seeking injunctive relief has the burden of establishing that a preliminary injunction should be issued, whether or not a temporary restraining order has been issued.
Turning to the case at bar, plaintiff moved for a preliminary injunction to enjoin defendants from locating any portion of their residence, including a balcony, further than five feet in front of his residence, from removing any trees on their lot not essential to construction, and from interfering with the easement for his sprinkler system. In its opinion and order of July 18, 1986, the trial court granted a preliminary injunction containing those restrictions. Defendants moved to vacate the preliminary injunction on the ground that the court did not hold a hearing at which plaintiff was required to establish his right to the injunction, as required by MCR 3.310(A). In its opinion and order of May 8, 1987, the trial court denied the motion to vacate the preliminary injunction, stating that an evidentiary hearing was not warranted because the parties had appeared on a motion, had extensively briefed the issues and presented affidavits, and had had exhaustive oral arguments. The trial court then made the injunction permanent.
Defendants argue that the trial court abused its discretion by issuing the preliminary injunction without first holding a hearing. They state that, contrary to the assertions made by plaintiff, no hearing was ever held, and no arguments were presented. In their motion to vacate, defendants note that the hearing originally scheduled for June 11, 1986, was adjourned to June 25, 1986. The parties appeared on that date, but the hearing was adjourned at plaintiffs request. Defendants state categorically that no hearing was ever held and that the court never entertained oral argument on the motion; therefore, defendants argue, the issuance of the preliminary injunction was done in contravention of MCR 3.310(A) and constituted an abuse of discretion by the trial court. Plaintiff, on the other hand, argues that the trial court did not abuse its discretion by issuing the preliminary injunction. Plaintiff contends that, on June 25, 1986, the parties presented brief arguments to the court. He also contends that the parties filed extensive briefs on the issue.
The record presented for our review does not support plaintiff’s claims or the conclusions of the trial court. The record does support the conclusion that the motion for preliminary injunction was scheduled to be heard on June 25, 1986. What occurred on that date is not clear from the record. Plaintiff contends that the trial court allowed each party to argue briefly on the motion but indicated that its practice was to rely on briefs and affidavits. According to defendants, while counsel appeared on June 25 for purposes of arguing the motion, no arguments or proofs were presented and plaintiffs counsel requested additional time within which to respond to defendants’ brief in opposition. That extension was granted. The record itself is devoid of any transcript of a hearing held on June 25, 1986, so we must conclude that no arguments were, in fact, presented on the record.
While we do not agree with defendants’ assertion that it is compulsory for a trial court to hold an evidentiary hearing before the issuance of a temporary injunction, we do believe that some form of hearing is required. While MCR 3.310(A) contemplates the possibility of the taking of evidence at the hearing on the motion for temporary injunction, we do not believe that that rule compels an evidentiary hearing before the issuance of an injunction. It is, however, clear that the rule requires a hearing before the issuance of that temporary injunction. Accordingly, we conclude that, at a minimum, a hearing must be held in open court and on the record at which time the petitioning party must establish its entitlement to the temporary injunction. If this can be accomplished in a particular case by argument, brief, affidavits or other forms of nontestamentary evidence, the trial court need not take testimony at the hearing. However, the trial court must conduct an evidentiary hearing where the circumstances of the individual case so require.
In the case at bar, there were no arguments on the record, the only affidavit contained in the lower court record presented prior to the issuance of the temporary injunction is a relatively brief affidavit signed by plaintiff and, contrary to the trial court’s opinion of May 8, 1987, by which it refused to lift the injunction, there was not extensive briefing of the issues by the parties. In fact, the lower court record is completely devoid of any briefs by the parties. Simply put, nothing in the record presented for our review in the least bit establishes plaintiff’s entitlement to the issuance of a temporary injunction. Accordingly, we conclude that the trial court abused its discretion in granting the injunction._
The next issue for our consideration is whether the trial court erred in granting summary disposition in favor of plaintiff and in making the temporary injunction permanent. We conclude that it did.
In an opinion and order dated May 8, 1987, the trial court denied defendants’ motion to vacate the preliminary injunction and granted summary disposition in favor of plaintiff in order that the preliminary injunction become permanent. Although plaintiff moved for summary disposition under both MCR 2.116(C)(9) and (10), it appears from the trial court’s opinion and order that it granted summary disposition only on the basis of MCR 2.116(C)(9), failure to state a valid defense. A motion for summary disposition based upon a failure to state a valid defense is tested solely by reference to the pleadings and, generally, where a material allegation of the complaint is categorically denied, summary disposition under this ground is improper. Pontiac School Dist v Bloomfield Twp, 417 Mich 579, 585; 339 NW2d 465 (1983).
The trial court’s May 8, 1987, opinion and order indicates that it exceeded the scope of a motion for summary disposition for failure to state a valid defense. In that opinion, the court stated that it was its opinion "upon examining the numerous Affidavits submitted by the parties, having read the extensive briefs and documents on file, and having heard oral arguments by the parties, that Defendants failed to state a valid defense to Plaintiffs claim.” Clearly, the trial court went outside the pleadings in deciding this motion. If for no other reason, reversal would be warranted on this ground. In any event, referring to defendants’ pleadings, they state a valid defense. Specifically, defendants’ answer denied the material allegations of the complaint by denying any violation of the parties’ agreement and denying any intent to violate the agreement in the future. Furthermore, defendants filed affirmative defenses which, if borne out by the facts, would state a valid defense to the complaint. Accordingly, summary disposition on the basis of MCR 2.116(C)(9) was improper.
Although the trial court’s opinion and order does not rely upon MCR 2.116(C)(10), no genuine issue of material fact, in granting summary disposition, since plaintiff did move under this ground and both parties briefed the issue as if summary disposition was granted under subrule 10, we will briefly address the issue. Specifically, there exist genuine disputes over material facts concerning whether plaintiff made certain material misrepresentations to defendants concerning the nature and extent of the sprinkler system which induced defendants to sign the agreement. Fraud by plaintiff in procuring the agreement, if established by the facts, would provide defendants with a viable equitable defense to enforcement of the agreement. Whether fraud exists, however, can only be determined after full discovery and an evidentiary hearing. This the trial court has failed to grant defendants. Accordingly, summary disposition under subrule 10 would also be inappropriate.
In sum, the trial court erred in its summary handling of this matter. Defendants were entitled to a hearing which they were not granted before the issuance of the preliminary injunction and to a trial which they were not granted before the issuance of a permanent injunction. The trial court’s stated basis for granting plaintiff equitable relief is that "the parties appeared on a motion for preliminary injunction and extensively briefed the issues, submitted numerous affidavits, and had exhaustive oral argument”; however, this is not supported by the lower court record since most of the materials referred to by the trial court simply do not exist in the lower court record.
For the above reasons, we reverse the grant of summary disposition in favor of plaintiff and vacate the preliminary and permanent injunctions granted by the trial court.
Reversed and remanded for further proceedings consistent with this opinion. We do not retain jurisdiction. Defendants may tax costs.
If the parties did prepare briefs which are not of record, it is impossible for us to review those briefs in analyzing this issue. Simply put, our decision, as well as the trial court’s decision, must be based upon the matters that are made of record. With the exception of the sole affidavit by plaintiff, at the time of the grant of the preliminary injunction, there was nothing of record other than the pleadings of the parties. Nothing in the record supports the decision of the trial court, be it affidavit or briefs. | [
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Weaver, P.J.
Plaintiffs appeal as of right in Docket No. 107345 from a circuit court order granting the defendant nurses’ motion for sum mary disposition on the basis of governmental immunity. Plaintiffs also appeal by leave granted in Docket No. 92112 from an order denying plaintiffs’ motion to have the defendant hospital produce certain documents. We affirm.
i
These consolidated appeals arise from two lawsuits commenced after plaintiffs’ seven-year-old son, Jason, died following treatment at Berrien General Hospital. Plaintiffs alleged in Docket No. 107345 that when the boy experienced breathing difficulties on December 26, 1984, they took him to see Dr. Barton Comstock at Southwestern Clinic in Stevensville, Michigan. After examining the child, Dr. Comstock personally transported the child to the emergency room at Berrien General. Upon admission to the emergency room, the child was observed with throat swelling, rapid breathing, shortness of breath, noisy respiration, and skin and mucous membrane discoloration due to deficient oxygenation of blood in the lungs (cyanosis). The child was also very anxious and irritable. Following admission, an endotracheal tube was placed in the child’s windpipe, intravenous lines were inserted and a tube was set in place for suctioning mucous from the endotracheal tube. The child was placed in wrist restraints and was repeatedly sedated.
Plaintiffs alleged that at 11:00 p.m. the same evening the child became cyanotic with respiratory distress. At 4:30 a.m. the next morning, December 27, 1984, the child experienced additional breathing difficulty. Unsuccessful attempts were made to suction the endotracheal tube with a number 8 French catheter, a device inserted into the tube to clear the mucous. At about 4:45 a.m., the defen dant hospital summoned Dr. William Douce from the emergency room to attend to the child. The boy stopped breathing and suffered cardiac arrest at 5:05 a.m. At about 5:26 a.m., Dr. Comstock arrived, removed a plugged endotracheal tube, reintubated the child and resuscitated him, restoring spontaneous heartbeats. An examination of the tube that was removed revealed a brownish mucous plug in the tube’s lower inch and a half. The child was transferred to Bronson Hospital and at 10:48 a.m. on December 28, 1984, was pronounced dead due to prolonged oxygen deficiency secondary to upper airway obstruction.
Plaintiffs alleged that the defendant nurses breached their duty of care to (1) observe and chart the child’s breath sounds, (2) suction the endotracheal tube as needed to maintain an airway, (3) discontinue dosages of the drug Demerol when it became apparent the drug should not be given, (4) consider doing blood gases when the decedent continued with distressed breathing, (5) have the proper catheter size available for suctioning, and (6) complete a specific nursing plan to provide for maintaining the decedent’s airway.
The defendant nurses and the hospital subsequently moved for summary disposition on the basis of governmental immunity, asserting that the defendant hospital was not liable because its operation constituted a. governmental function, and that the defendant nurses were not liable because their acts involved judgment making and therefore were discretionary. As to the defendant nurses, the plaintiffs admitted that the nurses were acting in good faith during the course of their employment and within the scope of their authority. The only remaining question, therefore, was whether their acts were discretionary, entitling them to individual immunity. The trial court granted summary disposition in favor of both the defendant hospital and the defendant nurses on the basis of governmental immunity, and also denied plaintiffs’ motion to amend the complaint to add a claim for breach of implied contract. The court denied plaintiffs’ motion for relief from that order. Plaintiffs appeal as of right in Docket No. 107345 from that order only in regard to the defendant nurses.
n
On appeal, plaintiffs argue that summary disposition was improper because the defendant nurses performed ministerial rather than discretionary acts in caring for plaintiffs’ decedent. We disagree.
Discretionary acts have been defined as those requiring personal deliberation, decision and judgment. Ross v Consumers Power Co (On Reh), 420 Mich 567, 634; 363 NW2d 641 (1984). Ministerial acts have been defined as those constituting merely obedience to orders or performance of a duty in which the individual has little or no choice. Id. In deciding whether acts are discretionary or ministerial for purposes of an immunity defense, courts must look to the specific acts complained of, rather than to the general nature of the activity, to determine whether the acts involve significant decision making or simple execution of a decision involving minor decision making. Ross, supra at 634-635; Canon v Thumudo, 430 Mich 326, 333-334; 422 NW2d 688 (1988).
Medical decision making is inherently discretionary, although execution of medical decisions involves ministerial acts. Tobias v Phelps, 144 Mich App 272, 280-281; 375 NW2d 365 (1985), lv den 424 Mich 859 (1985); Brown v Northville Regional Psychiatric Hospital, 153 Mich App 300, 307; 395 NW2d 18 (1986). See also Stoick v Caro Community Hospital, 167 Mich App 154, 165; 421 NW2d 611 (1988). In undertaking its review, this Court must recognize that execution of a medical decision may involve a series of medical decisions requiring personal deliberation and judgment regardless of whether they were undertaken in the course of executing the initial decision. Joplin v Univ of Michigan Bd of Regents, 173 Mich App 149, 154; 433 NW2d 830 (1988); Brown, supra at 307. The fact that a professional, by choosing to act in a particular manner, may have deviated from professional standards does not, ipso facto, transform a discretionary act into a ministerial one. Canon, supra at 334-335, 340, 345-346. See also Bolton v Jones (On Remand), 173 Mich App 725, 731-734; 435 NW2d 415 (1988) (Danhof, C.J., dissenting). Cf. Portice v Otsego Co Sheriffs Dep’t, 169 Mich App 563, 567-568; 426 NW2d 706 (1988) (discretionary conduct of police officers in responding to an emergency situation was not transformed into ministerial conduct by allegation of negligence).__
Here, a review of the record reveals that in executing the initial medical decision regarding treatment of the plaintiffs’ decedent, the defendant nurses further engaged in a series of medical decisions requiring their personal deliberation and judgment. Both of the defendant nurses testified that the child’s need for rest was a significant factor entering into their decisions about when and how to suction the child’s airway. Nurse Dennis testified that she spent most of the night attending to the child’s needs, listening to his breath sounds, and suctioning the airway. Nurse Hardy’s completion of the patient care plan was also subject to discretionary judgment as to how detailed the plan needed to be. Similarly, the choice of catheter size for suctioning was a discretionary decision requiring personal deliberation and judgment. Even were the choice of catheter to be found inappropriate, this would not alter the discretionary nature of the decision. Canon, supra at 335, 346.
Upon our review of the record, we find that the acts of the defendant nurses were discretionary and therefore protected under the defense of individual governmental immunity. Id. at 332. Hence the trial court properly granted summary disposition in favor of the defendant nurses on the basis that plaintiffs’ claims were barred by individual immunity.
Plaintiffs’ appeal in Docket No. 92112 concerns the discoverability of the most recent statement of deficiencies by the Joint Commission on Accreditation of Hospitals as of the date of the child’s hospital admission, and the discoverability of a correction plan issued by the hospital in response thereto. Our affirmance in Docket No. 107345 of the trial court’s grant of summary disposition to the defendant nurses and plaintiffs’ failure to appeal from the grant of summary disposition to the defendant hospital renders analysis of this issue unnecessary.
Affirmed.
Griffin, J., concurred.
Plaintiffs reached a settlement with Dr. Douce, who is not a party to this appeal.
In Joplin, supra at 154, where the plaintiff brought a malpractice action alleging that the defendant doctors had negligently performed an abortion upon her, this Court noted:
Plaintiff contends that, while defendants’ decision to operate was discretionary, the execution of that decision through surgery was ministerial. If we adopted plaintiff’s definition of "ministerial” then we would come close to eliminating all immunity for similarly-situated professionals by confusing our inquiry into immunity with the separate issue of defendants’ alleged negligence.
A surgeon does not just decide to operate. He or she must also make numerous decisions based on the patient’s condition, which may be unexpected or change during the course of surgery. The procedure used to terminate plaintiff’s pregnancy required a continuing series of decisions by the defendant doctors who performed it. Therefore, that procedure was discretionary. [Citation omitted.] | [
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Mackenzie, J.
Following a jury trial, defendant was convicted of carrying a concealed weapon, MCL 750.227; MSA 28.424, and being an inmate in possession of a weapon, MCL 800.283(4); MSA 28.1623(4). He subsequently pled guilty to being an habitual offender, third offense, MCL 769.11; MSA 28.1083. Defendant was sentenced to two to six years imprisonment for each underlying conviction, to be served consecutively to the prison sentences he was serving at the time of the instant offenses. Defendant appeals as of right, asserting that his convictions of carrying a concealed weapon and being an inmate in possession of a weapon violate the double jeopardy clause of the Michigan Constitution, Const 1963, art 1, § 15. We disagree and affirm.
This case involves the double jeopardy clause’s protection against multiple punishment for the same offense. This form of double jeopardy protection addresses the defendant’s interest in not having more punishment imposed than that intended by the Legislature. People v Robideau, 419 Mich 458, 485; 355 NW2d 592 (1984). The issue whether two convictions involve the same offense for purposes of the protection against multiple punishment, therefore, is solely one of legislative intent. People v Sturgis, 427 Mich 392, 400; 397 NW2d 783 (1986).
Under Robideau, this Court must use traditional means to determine whether the Legislature intended to permit multiple punishment and examine the subject, language, and history of the statutes involved. See Robideau, supra, p 486. Statutes prohibiting conduct that is violative of distinct social norms can generally be viewed as separate and amenable to permitting multiple punishment. Robideau, supra, p 487. A further source of legislative intent can be found in the amount of punishment expressly authorized by the Legislature. Where the Legislature has taken conduct from a base statute and increased the penalty for aggravated conduct, it in all likelihood did not intend punishment under both statutes. Robideau, supra, pp 487-488.
The statutes before us have distinct social purposes. The prohibition against carrying a concealed weapon was enacted to prevent the possibility that quarrelling persons would suddenly draw a hidden weapon without notice to other persons. People v Wright, 97 Mich App 411; 296 NW2d 46 (1980). The thrust of the statute is the prevention of "carrying” and "concealing” one of several listed weapons by any person regardless of the intent with which the weapon is carried. See Sturgis, supra, p 408. The conduct made punishable by the concealed weapon statute is not the possession of a weapon, but the carrying of a weapon, concealed. Sturgis, supra, p 409. The inmate in possession of a weapon statute, on the other hand, was specifically intended to prohibit the control or possession of weapons by prisoners. See 1982 PA 343, § 3. Unlike the concealed weapon statute, the inmate in possession statute addresses the social evil of possession of a weapon in a correctional facility. Because the statutes are directed at separate distinct social harms, it may be concluded that the Legislature intended to permit multiple punishment for concealment of a weapon and being an inmate in possession of a weapon even where there is only one possession of a weapon. Compare Sturgis, supra, p 409.
The punishments authorized by the Legislature under the two statutes also suggest the intent to impose dual convictions. Carrying a concealed weapon carries a maximum penalty of five years imprisonment. MCL 750.227; MSA 28.424. Being an inmate in possession of a weapon also carries a maximum penalty of five years imprisonment. MCL 800.285(1); MSA 28.1625(1). There is no legislative indication that carrying a concealed weapon is an aggravation of being an inmate in possession of the same weapon. The implication is that the Legislature intended separate punishments for the two crimes.
Moreover, we note that the Legislature has seen fit to specify that when an inmate is in possession of a controlled substance, he or she may be prosecuted either as an inmate in possession of a con trolled substance pursuant to MCL 800.281; MSA 28.1621 or pursuant to the controlled substances act, MCL 333.7401 et seq.; MSA 14.15(7401) et seq. See MCL 800.285(2); MSA 28.1625(2). No analogous provision was made for inmate weapons offenses, although inmate possession of both controlled substances and weapons is governed by the same act. Again, the implication is that the Legislature intended multiple punishment for inmates possessing and concealing weapons.
Since it appears that the Legislature intended to authorize dual penalties for carrying a concealed weapon and being an inmate in possession of a weapon, defendant’s convictions on both counts did not violate the prohibition against double jeopardy. Accordingly, defendant’s convictions are affirmed.
Affirmed.
S. B. Miller, J., concurred. | [
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Holbrook, Jr., J.
Defendant was convicted by a jury of first-degree criminal sexual conduct, MCL 750.520b(l)(a); MSA 28.788(2)(l)(a), arising out of the sexual penetration of his seven-year-old daughter. He was sentenced to six to twenty years in prison. Defendant’s motion for new trial was denied and he appeals as of right, claiming that the trial court erred in admitting the hearsay testimony of the victim’s mother under MRE 803(2), the hearsay exception for excited utterances. The mother testified that on May 6, 1985, seventeen days after the alleged incident, the victim told her that defendant had penetrated the victim’s rectum. We agree that the testimony was improperly admitted and reverse defendant’s conviction.
MRE 803(2) allows an out-of-court statement of a declarant to be admitted if it is "[a] statement relating to a startling event or condition made while the declarant was under the stress of excitement caused by the event or condition.”
In People v Gee, 406 Mich 279; 278 NW2d 304 (1979), the Supreme Court set forth three requirements that must be met before a statement comes within the excited utterance exception:
To come within the excited utterance exception to the hearsay rule, a statement must meet three criteria: (1) it must arise out of a startling occasion; (2) it must be made before there has been time to contrive and misrepresent; and (3) it must relate to the circumstances of the startling occasion. People v Cunningham, 398 Mich 514, 519; 248 NW2d 166 (1976), citing Rogers v Saginaw B C R Co, 187 Mich 490, 493-494; 153 NW 784 (1915). [Gee, supra, p 282.]
See also People v Straight, 430 Mich 418; 424 NW2d 257 (1988).
In People v Kreiner, 415 Mich 372; 329 NW2d 716 (1982), reh den 417 Mich 1104 (1983), the Supreme Court rejected the common-law "tender years” exception to the hearsay rule and affirmed application of the Gee criteria to cases involving the utterance of a child of "tender years”:_
If the utterance of a child of "tender years” relates to a "startling event or condition” and was made while the child was "under the stress of excitement caused by the event or condition,” the statement may be admitted as an excited utterance under MRE 803(2). See People v Cobb, 108 Mich App 573 [310 NW2d 798] (1981). On the other hand, if these requirements are not met, the mere fact that the declarant is of "tender years” and makes a statement in a sex-related case does not provide a basis for admitting the statement under the so-called "res gestae” exception. 61 Mich Bar J 332. [Kreiner, supra, p 379, n 8.]
In the instant case the trial court admitted the hearsay statements concluding:
I am going to rule that because of the relationship of the defendant and the complainant and the tender years of the victim, that the criteria have been met and the testimony will be allowed under the spontaneous utterance exception to the hearsay rule.
We disagree, first noting that the court disregarded the Kreiner holding which rejected the "tender years” exception. Second, we find the seventeen-day lapse between the sexual assault and the statement by the victim was a significant delay precluding a finding that the statement was made before there was time to contrive and misrepresent. Further, there was no plausible excuse for the delay especially since it appears that the victim had previous opportunities to relate the incident to her mother. See Gee, supra, p 283. Hence we conclude that the trial court abused its discretion in allowing the hearsay testimony. People v Petrella, 124 Mich App 745, 758; 336 NW2d 761 (1983).
We reject the prosecutor’s contention that Peo ple v Soles, 143 Mich App 433; 372 NW2d 588 (1985), lv den 424 Mich 863 (1985), is applicable. We find that case distinguishable on the basis of the heinous nature of the assault, the seriousness of the victim’s injuries and the resulting shock. This Court concluded that the shock was of such a duration as to permit the statements as excited utterances. Here, the victim was neither seriously injured nor exhibited shock. In fact, the day after the incident she was playing.
Finally, we do not find that the error was harmless. The controlling question was the parties’ credibility and any corroborating evidence on either side could tip the scales. See Gee, supra, p 283.
Reversed.
T. Gillespie, J., concurred.
Q. Could you go back in time, ma’am, and I believe it was May 5. Was that the date?
A. May 6th.
Q. And then you reported it the 7th, but could you tell us under what conditions you first learned about this particular event?
A. Well, we were watching tv . . .
A. [My son] passed some gas, and then he started laughing about it, and I said it wasn’t funny, and then he told me, "Well, I will plug my butt with my finger so that I can’t do it no more,” and I said, "Where did you hear something like that?”, and then he told me from his dad, and I said, "Why would he say something like that?”, and then [the victim] had overheard this from her bedroom and come out and ...
The Court: I can’t hear you.
By Mr. Zerial:
Q. The Judge can’t hear you, okay?
The Court: Would you read that last answer back?
(Last answer read back by the reporter at this time.)
The Witness: She had come out and she says, "Yes, he did, Mom,” and I said, "Yes, he did what?” She says, "Probably told him that.” I said, "Why?”, and she says, "Because he did it to me.” I said, "He did what to you?”, and she had told me that he had stuck his peter up her butt.
The "tender years” exception permitted the hearsay testimony only to corroborate the testimony of the infant victim. Kreiner, supra, p 376. | [
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M. Warshawsky, J.
Defendant appeals as of right his convictions in a bench trial of assault with intent to do great bodily harm, MCL 750.84; MSA 28.279, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). Defendant was sentenced to six to ten years in prison on the assault conviction and to a two-year consecutive term on the felony-firearm conviction. We reverse.
Defendant raises several issues on appeal but we find dispositive defendant’s claim that his conviction should be reversed because the prosecution failed to bring him to trial within 180 days as required by MCL 780.131; MSA 28.969(1).
Defendant allegedly committed the instant offense on December 18, 1984. At that time, defendant was an escaped prisoner from the Michigan Department of Corrections, having failed to return from a release program on November 5, 1984. On February 7, 1985, a warrant and complaint were issued, charging defendant with assault with intent to murder and felony-firearm. Defendant was arraigned on the charges on February 27, 1986, and lodged in the county jail pending disposition of the instant charges. A "hold,” for return to prison as an escapee, was placed on defendant by the Department of Corrections on February 27, 1986.
The preliminary examination was held on March 7, 1986, with the final conference -being held on April 25, 1986. Docket entri indicate that the case was set for trial on June 3, 1986, but was adjourned without a reason being given. On June 17, 1986, it was again adjourned until June 20, 1986, because "defense counsel [was] busy.” On June 20, 1986, it was again adjourned without reason until August 13, 1986, and the case was transferred to a different judge. Collaterally, defendant pled guilty on July 9, 1986, to prison escape, was sentenced on July 18, 1986, to five years for that offense, and was transported on that date to Jackson Prison. On August 13, 1986, trial in the instant matter was adjourned until October 27, 1986, because the judge had another trial in progress. On October 27, 1986, it was again adjourned until January 14, 1987, because the defendant was in Jackson Prison and the prosecutor had not sought a writ of habeas corpus to obtain defendant’s presence for trial. MCR 3.304.
On January 14, 1987, the day of trial, defense counsel moved to dismiss for violation of the 180-day rule. The trial court computed the starting date of the 180-day period as July 9, 1986, the date defendant pled guilty to prison escape, and found that more than 180 days had passed since that time. However, the court held that the prosecution had taken good-faith action in readying the case for trial and was not chargeable for the delays in adjournment on August 13, 1986, and October 27, 1986. The court then denied defendant’s motion to dismiss.
On appeal, defendant claims that the trial court clearly erred in determining that the 180-day period commenced on July 9, 1986, and that the prosecution was not chargeable for the delays and adjournments on August 13, 1986, and October 27, 1986. Defendant asserts that the 180-day period began running on February 26, 1986, the date that defendant was arraigned, and that the above delays should have been charged to the prosecution. We agree, except we find that the record reflects defendant’s date of arraignment was February 27, 1986.
In People v Hill, 402 Mich 272, 280-281; 262 NW2d 641 (1978), our Supreme Court established the framework for determining when the 180-day rule is violated:
We hold that the statutory period begins with the coincidence of either conditions 1 or 2 and condition 3:
1) The issuance of a warrant, indictment or complaint against a person incarcerated in a state prison or under detention in any local facility awaiting incarceration in any state prison;
2) The incarceration of a defendant in a state prison or the detention of such defendant in a local facility to await such incarceration when there is an untried warrant, indictment, information or complaint pending against such defendant; and
3) The prosecutor knows or should know that the defendant is so incarcerated when the warrant, indictment, information or complaint is issued or the Department of Corrections knows or should know that a warrant, indictment, or complaint is pending against one sentenced to their custody.
The object of the 180-day rule is to dispose of untried charges against prison inmates. People v Woodruff, 414 Mich 130, 137; 323 NW2d 923 (1982); MCL 780.131 et seq.; MSA 28.969(1) et seq. The first question that must be answered is whether the 180-day rule applies to the period from February 27 to July 18, 1986, when defen dant was held in the county jail. We hold that the 180-day rule does apply in this case.
Whether the 180-day rule applies to inmates confined at a county jail depends on the circumstances of their assignment to that facility. People v Merkerson, 147 Mich App 207, 209; 382 NW2d 750 (1985). Where an inmate is sentenced to a term of imprisonment for one year or less and thus confined in a county jail under MCL 769.28; MSA 28.1097(1), he or she will be considered an inmate of a county jail or local facility and the 180-day rule will not apply. Id. In the instant case, defendant, even when in jail, was an escaped prison inmate detained in jail awaiting certain return to prison. The fact that he was also awaiting disposition of the other charges does not change the fact that defendant was still under the jurisdiction and control of the Department of Corrections and would be returned to the prison to serve the remainder of his underlying sentence for drug possession. The successful apprehension of an escaped prisoner and his return to custody would not necessarily result in his being brought to court for prison escape, or other outstanding charges. People v Roscoe, 162 Mich App 710; 413 NW2d 483 (1987). Under these circumstances, we conclude that defendant was an "inmate” detained in a local facility awaiting incarceration in a state prison and that the 180-day rule applies. Hill, supra, p 281.
On February 27, 1986, defendant was arraigned on the complaint pending against him for assault with intent to murder and felony-firearm. On that same date, the Department of Corrections placed a hold on defendant for his return to the institution. The hold was clearly designated in the lower court file in this case. We thus find that on February 27, 1986, the prosecutor knew, or should have known, that the defendant was awaiting incarceration in a state prison.
Since conditions 2 and 3 as set forth in Hill, supra, were met on February 27, 1986, we hold that the 180-day period commenced running on that date for the purposes of the 180-day rule, MCL 780.131; MSA 28.969(1).
There was a lOlá-month delay between defendant’s February 27, 1986, arrest and arraignment and January 14, 1987, trial. As previously noted, the instant case was originally set for trial on June 3, 1986, but was adjourned without reason until June 17, 1986. At that point, the case was adjourned for three days because defense counsel was busy. However, on June 20, 1986, it was again adjourned without reason until August 13, 1986. The burden imposed by the 180-day rule rests as much upon the court as upon the prosecutor. People v Wolak, 153 Mich App 60; 395 NW2d 240 (1986). All adjournments without reason and unexplained delays are chargeable to the prosecution. People v Patterson, 170 Mich App 162, 167; 427 NW2d 601 (1988); People v Ross, 145 Mich App 483, 491; 378 NW2d 517 (1985). Thus, the adjournments from June 3, 1986, to June 17, 1986, and June 20, 1986, to August 13, 1986, are chargeable to the prosecution.
On August 13, 1986, the case was adjourned because the judge was too busy to hear it. This Court has repeatedly held that delay attributable to docket congestion is inexcusable and must be attributed to the prosecution. Wolak, supra, pp 66-67; People v Harris, 132 Mich App 427; 346 NW2d 571 (1984); People v Love, 132 Mich App 423; 346 NW2d 534 (1983). Thus, the adjournment from August 13, 1986, to October 27, 1986, is chargeable to the prosecution.
On October 27, 1986, the case was adjourned again because a writ of habeas corpus to obtain defendant’s presence at trial was not issued. The burden rests with the prosecution to bring a defendant to trial. Defendant had no affirmative duty or responsibility to bring himself to trial. Barker v Wingo, 407 US 514, 527; 92 S Ct 2182; 33 L Ed 2d 101 (1972); People v Farmer, 127 Mich App 472, 479; 339 NW2d 218 (1983). The period from October 27, 1986, to January 14, 1987, is therefore also chargeable to the prosecution.
The only delay that defendant was clearly responsible for was June 17, 1986, to June 20, 1986. We find that the remainder of the lOVi-month delay is chargeable to the prosecution and that the prosecution did not use good faith efforts in readying the case for trial. The trial court’s ruling that the prosecution was not chargeable for the delays and adjournments is clearly erroneous.
In sum, we hold that the trial court improperly applied MCL 780.131; MSA 28.969(1). The 180-day period began to run on February 27, 1986, and was only tolled for three days—from June 17, 1986, to June 20, 1986. The prosecution must be held responsible for the remainder of the 10Vi-month delay—from February 27, 1986, to January 14, 1987, which amounted to 318 days (321 days less three days attributable to the defense). Charges are to be tried within a specific time or dismissed. Woodruff, supra, p 136. Consequently, since the 180-day rule was violated, the trial court was divested of its jurisdiction in this matter and was required to dismiss the charges against defendant with prejudice. MCL 780.133; MSA 28.969(3); Wolak, supra, p 70; People Freeman, 122 Mich App 260, 263; 332 NW2d 460 (1982), lv den 417 Mich 1052 (1983).
Defendant’s convictions for the instant offenses are to be reversed and the charges vacated on remand. We do not retain jurisdiction. | [
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Beasley, P.J.
Plaintiff, Leslie J. Kowalski, appeals as of right from an order granting summary disposition in favor of defendant, E. John Gratopp, and dismissing plaintiff’s complaint.
Plaintiff worked as an advanced paramedic for Community Emergency Medical Services, which held a contract with the City of Pontiac for ambulance service. On February 15, 1985, plaintiff responded to a call from the Pontiac Fire Department to pick up a nonemergency patient who was suffering abdominal pain. After arriving at the scene, plaintiff slipped and fell on an accumulation of ice on the walkway of premises owned by defendant Gratopp. Plaintiff tore his right bicep tendon and claims permanent restriction of movement preventing his return to employment as a Community ems paramedic. On July 8, 1986, plaintiff filed suit alleging negligence in maintaining the premises. Defendant Gratopp moved for summary disposition under the fireman’s rule articulated in Kre ski v Modern Wholesale Electric Supply Co. The trial court granted the motion. Plaintiff appeals.
In Kreski, the Supreme Court said:
Thus, as a matter of public policy, we hold that fire fighters or police officers may not recover for injuries occasioned by the negligence which caused their presence on the premises in their professional capacities. This includes injuries arising from the normal, inherent, and foreseeable risks of the chosen profession.[ ]
Application of the fireman’s rule is limited by its very nature to public employees. It is the public that hires, trains, and compensates fire fighters and police officers to confront danger. Basic to the public policy rationale underlying the fireman’s rule is the spreading to the public of the costs of employing safety officers and of compensating them for any injuries they may sustain in the course of their employment. "Fire fighters are present upon the premises, not because of any private duty owed the occupant, but because of the duty owed to the public as a whole.”
Here, the pleadings indicate that plaintiff was employed by a private company, Community ems, when he was injured. Community ems was under contract with the City of Pontiac to provide limited service to the community, but the scope of that service is unclear. According to plaintiff’s affidavit, the call on which he was injured was not an emergency, and Community ems billed the patient directly, as opposed to billing the city. It appears that plaintiff was not acting as a public employee, and the pleadings at least raise a ques tion of fact as to plaintiffs employment status. Therefore, we believe the trial court erred in applying the fireman’s rule to defeat plaintiffs action. If pláintiff was injured while merely furthering the private operation of a medical taxicab, there is no public policy reason to apply the fireman’s rule to this case.
More fundamentally, even if plaintiff were viewed as a public employee for purposes of the fireman’s rule, the rule would not preclude his cause of action. While the Kreski Court acknowledged that the precise parameters of Michigan’s fireman’s rule would require delineation in later cases, the Court did not contemplate an extension of the rule beyond fire fighters and police to other types of public employees.
[There is a] fundamental difference between the function of safety officers and that of other occupations peripherally involving danger. The very nature of police work and fire fighting is to confront danger. The purpose of these professions is to protect the public. It is this relationship between police officers, fire fighters, and society which distinguishes safety officers from other employees ....
[F]ire fighters and police officers are different than other employees whose occupations may peripherally involve hazards. Safety officers are employed, specially trained, and paid to confront dangerous situations for the protection of society. They enter their professions with the certain knowledge that their personal safety is at risk while on duty. Property owners and occupiers cannot reasonably predict visits by safety officers or control their activities while on the premises. Finally, injuries suffered by safety officers while in the course of their employment are compensable by workers’ compensation, thereby spreading the cost and risk to the public. [Emphasis added.][ ]
Paramedics are employed and paid to treat injuries or illnesses which may arise out of dangerous situations. The paramedic’s occupation is one which may peripherally involve hazards, but they are not employed, trained, or paid specifically to confront those hazards.
Reversed.
429 Mich 347; 415 NW2d 178 (1987), reh den 429 Mich 1215 (1988).
Id. at 372.
Kreski, supra at 366, quoting Calvert v Garvey Elevators, Inc, 236 Kan 570, 576; 694 P2d 433 (1985).
Kreski, supra at 370.
Kreski, supra at 367, 371-372. | [
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Griffin, J.
Defendant General Accident Assurance Company of Canada appeals as of right from a January 14, 1988, order of the Wayne Circuit Court granting the plaintiff $169,069.24 in supplemental attorney fees. In awarding the attorney fees, the lower court found the defendant’s failure to pay no-fault personal protection insurance benefits to be "unreasonable” pursuant to MCL 500.3148(1); MSA 24.13148(1). As an alternative ground, the order also awards the attorney fees as mediation sanctions. We disagree as to both bases for the award and therefore reverse the trial court and vacate the award of attorney fees.
i
On May 20,1979, Canadian citizen Wanda Clute was sleeping in a parked rented van in Detroit, Michigan, when an automobile collided with the van. The group plaintiff was with had rented the van in London, Ontario, for the purpose of attending a gathering in Lansing, Michigan. At the time of the collision, the van was parked off the street. Plaintiff was sleeping inside the van on an unaffixed couch which had been temporarily placed in the van by a member of her group.
As a result of the accident, plaintiff sustained serious personal injuries for which she claimed Michigan no-fault personal protection insurance benefits from defendant General Accident Assurance Company of Canada. General Accident Assurance Company of Canada is a Canadian insurance company which insured the rented van. As a condition for conducting business in Michigan, General Accident had filed a certificate of insurance with the Michigan insurance commissioner thereby subjecting General Accident to the provi sions of the Michigan no-fault automobile insurance statute.
Plaintiff Clute is a Canadian citizen who has never purchased Michigan no-fault automobile insurance, nor is she covered by a Michigan no-fault policy issued on any family member. The no-fault relationship which exists between the parties is purely statutory.
In June, 1983, the Wayne Circuit Court tried the instant action. At the conclusion of plaintiffs proofs, the trial court directed a verdict in favor of the defendant "finding that the van was not used as a motor vehicle when plaintiff was injured.” The directed verdict was thereafter affirmed by this Court in a two-to-one decision, Clute v General Accident Assurance Co of Canada, 142 Mich App 640; 369 NW2d 864 (1985). This Court in its opinion cited with approval the following quotation from Shinabarger v Citizens Mutual Ins Co, 90 Mich App 307, 314; 282 NW2d 301 (1979), lv den 407 Mich 895 (1979):
"Where the injury is entirely the result of an independent cause in no way related to the use of the vehicle, however, the fact that the vehicle is the site of the injury will not suffice to bring it within the policy coverage.” [Emphasis added. 142 Mich App 642-643.]
The majority found dispositive the fact that the van was not being used as a motor vehicle at the time of the accident:
Here, the van was parked off the street and was being used for sleeping accommodations, apparently because the house by which it was parked could not accommodate all of the guests. Furthermore, it was not adapted for such use by its owner. We agree with the trial court that the van was not being used as a motor vehicle. [142 Mich App 643.]
In holding that no-fault coverage was not afforded under the General Accident insurance policy in this instance in which the insured vehicle was used as a means for sleeping accommodations, this Court cited § 3105 of the no-fault statute:
(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. [MCL 500.3105; MSA 24.13105.]
Plaintiff would have us construe the directed verdict granted the defendant and the affirmance entered by this Court as involving issues of priority between two insurers rather than coverage. A careful reading of this Court’s previous opinion, however, indicates that the decision turned on the ground that no-fault coverage was not afforded by the insurer of the van because the van was not being used as a motor vehicle; not that another insurer was higher in the line of priority. The defendant’s lack of no-fault coverage under these circumstances was discussed by this Court in response to plaintiffs claim that the defendant should be equitably estopped from denying that it was the proper party:
Secondly, plaintiff claims that the trial court erred in denying her motion to equitably estop defendant from denying that it was the proper party. This question was raised prior to trial and also in plaintiffs motion for a new trial, which was denied. In denying this motion, the trial court concluded that the issue was moot, for, even if the case had gone to the jury and defendant had not been permitted to argue that State Farm was the proper party, that would still not establish that defendant was liable. We agree. [Emphasis added. 142 Mich App 643.]
Overlooked by the majority, but emphasized by Judge Hood in his dissent, was the other vehicle which was being used as a motor vehicle when it collided with the van. Judge Hood in his dissenting opinion cited with approval the following quotation contained in Kalin v DAIIE, 112 Mich App 497, 500-501; 316 NW2d 467 (1982), lv den 417 Mich 853 (1982):
"Recently, in Gutierrez v Dairyland Ins Co, 110 Mich App 126; 312 NW2d 1981 (1981), this Court addressed a similar situation involving a parked vehicle and a moving vehicle. According to Gutierrez, where a claimant suffers accidental bodily injury arising out of the ownership, operation, maintenance, or use of a moving motor vehicle as a motor vehicle, the additional involvement of a parked vehicle is irrelevant to the issue of whether such a claimant is entitled to recover no-fault benefits. Under this approach, analysis of an accident under the parked vehicle exclusion is unnecessary unless there is no causal connection between the use, etc., of a moving vehicle and the injury.” [142 Mich App 644.]
The Michigan Supreme Court found Judge Hood’s dissent to be persuasive. Accordingly, on March 9, 1987, after granting leave to appeal and hearing oral arguments, the Supreme Court reversed "for reasons stated by Judge Hood in the Court of Appeals, and the cause is remanded to the Wayne Circuit Court for an entry of an order granting plaintiffs motion for summary judgment.” Clute v General Accident Assurance Company of Canada, 428 Mich 871; 401 NW2d 615 (1987).
From the time defendant received a directed verdict in the circuit court in June, 1983, through the reversal by the Supreme Court on March 9, 1987, General Accident was operating pursuant to a valid judgment in its favor. Despite the judgment, the lower court on remand found that the defendant should have paid the plaintiff no-fault benefits and was "unreasonable” in its refusal to pay. We disagree and hold that the judgment in defendant’s favor and its affirmance by this Court is sufficient evidence of the reasonableness of defendant’s position.
ii
Unlike other common-law jurisdictions, such as the United Kingdom and Canada, the common law in the United States has held that attorney fees are not routinely awarded to the prevailing party. See generally State Farm Mutual Automobile Ins Co v Allen, 50 Mich App 71, 74-75; 212 NW2d 821 (1973). Absent a special statute or court rule, each party is normally responsible for his or her attorney fees. Matras v Amoco Oil Co, 424 Mich 675, 695; 385 NW2d 586 (1986). It is well recognized that statutes and court rules in derogation of the common law must be strictly construed. Tibor v Dep’t of State Highways, 126 Mich App 159, 162; 337 NW2d 44 (1983); Prentis v Yale Mfg Co, 116 Mich App 466, 469-470; 323 NW2d 444 (1982).
The statute which the lower court relied upon to award the plaintiff $169,069.24 in attorney fees is MCL 500.3148(1); MSA 24.13148(1), which provides:
An attorney is entitled to a reasonable fee for advising and representing a claimant in an action for personal or property protection insurance benefits which are overdue. The attorney’s fee shall be a charge against the insurer in addition to the benefits recovered, if the court finds that the insurer unreasonably refused to pay the claim or unreasonably delayed in making proper payment. [Emphasis added.]
In Gobler v Auto-Owners Ins Co, 139 Mich App 768; 362 NW2d 881 (1984), the defendant insurer contested liability for survivors’ loss benefits. This Court agreed with the defendant’s position and held that such benefits were not payable. The Michigan Supreme Court reversed, holding that the plaintiff was entitled to survivors’ loss benefits. Gobler v Auto-Owners Ins Co, 428 Mich 51; 404 NW2d 199 (1987). As to the issue of attorney fees claimed by the plaintiff under § 3148, the Supreme Court stated:
A court may award attorney fees for unreasonable refusal or unreasonable delay in making payments under the no-fault act. However, a refusal or delay in payments by an insurer will not be found "unreasonable” within the meaning of § 3148 where the delay is the product of a legitimate question of statutory construction, constitutional law, or even a bona fide factual uncertainty. Liddell v DAIIE, 102 Mich App 636, 650; 302 NW2d 260 (1981). [428 Mich 66.]
Although the Supreme Court found in favor of the plaintiff, it nevertheless remanded to the Court of Appeals for a determination of whether the defendant’s refusal to pay was made in good faith:
The Court of Appeals found that the trial court improperly awarded survivors’ benefits to plaintiff. The Court further found that the trial court clearly erred in awarding plaintiff attorney fees.
Plaintiff asks this Court to reinstate attorney fees. Defendant contends that even if plaintiff is ultimately found to be entitled to recover survivors’ benefits, an award of attorney fees in the instant case is not authorized under § 3148 because this case presents both legitimate issues of statutory construction and bona fide factual ques tions. It is unclear whether or not the Court of Appeals considered the defendant’s good-faith arguments. We therefore remand this case to the Court of Appeals for a more thorough disposition of defendant’s substantive arguments regarding its good faith. [428 Mich 67.]
In a separate opinion, Justice Boyle stated the following in regard to the attorney fees issue:
The Court of Appeals decision reversing the trial court’s award of survivors’ benefits based on future employment and denying survivors’ benefits because Steven Gobler was unemployed is evidence that the defendant may have been initially justified in denying plaintiff’s claim. [Emphasis added. 428 Mich 68-69.]
On remand, this Court in Gobler v Auto-Owners (On Remand), 162 Mich App 717; 413 NW2d 92 (1987), quoted with approval Justice Boyle’s opinion. In addition, we held:
[I]t is clear . . . that the defendant’s refusal to volunteer survivors’ benefits was a good-faith refusal. The majority opinion written by Judge Allen . . . was well written and well reasoned. It should be abundantly clear to any reader of that opinion and the authorities discussed therein that the good faith of the insurance company was clearly established. Stated another way, the insurance company’s refusal to voluntarily pay the claim was not unreasonable. The trial court’s award of penalty interest and attorney fees is set aside. [162 Mich App 719.]
It is well established that, where a reasonable dispute exists as to coverage under a no-fault insurance policy, the insurer is allowed to contest the claim without penalty. As we stated in Lewis v Aetna Casualty & Surety Co, 109 Mich App 136, 139; 311 NW2d 317 (1981):
While it is true that the purpose of the no-fault act is to provide insureds with assured, adequate, and prompt compensation for losses, Shavers v Attorney General, 402 Mich 554; 267 NW2d 72 (1978), the act is replete with references to contested claims. Cf. §§ 3112, 3142, 3145 3148, 3151. Reading the act as a whole, it is clear that the Legislature did not intend for no-fault insurers to pay all claims submitted without reviewing the claims for lack of coverage, excessiveness, or fraud. Where a reasonable dispute exists as to coverage or the amount of beneñts owing, the insurer is allowed to contest the claim under the act without penalty. See Lewis v Detroit Automobile Inter-Ins Exchange, 90 Mich App 251; 282 NW2d 794 (1979), Wood v Detroit Automobile Inter-Ins Exchange, 99 Mich App 701; 299 NW2d 370 (1980), Swanson v Citizens Ins Co, 99 Mich App 52; 298 NW2d 119 (1980).
Thus, plaintiffs argument that insurers are required to merely process and pay claims without reasonably challenging their validity lacks support in the act or under case law. [Emphasis added.]
In Davidson v Johnson, 76 Mich App 497; 257 NW2d 139 (1977), and Davidson v Johnson (On Rehearing), 79 Mich App 660, 667-668; 262 NW2d 887 (1977), this Court addressed the occupant (§ 3114) and nonoccupant (§ 3115) priority schemes of the no-fault act as they related to an automobile-motorcycle collision. Our Court in Davidson held that a motorcyclist should be treated as a nonoccupant since his motorcycle was deemed not to be a motor vehicle as defined by the act. Accordingly, the priority section of §3115, not §3114, was held applicable. In Davidson, the plaintiff argued that the applicable insurance company under § 3115 should pay reasonable attorney fees since the denial to pay benefits was "unreasonable.” This Court disagreed and held that in such a conflict between the separate priority provisions of § 3114 and § 3115, substantial statutory construction issues were involved thereby making the award of attorney fees inappropriate:
Thus, attorney fees are only to be charged against an insurer upon a finding that the insurer "unreasonably” delayed payment or refused to pay. Because of the substántial constitutional and statutory construction issues raised in the instant case, it cannot be said that the refusals of both insurers to pay the claimed benefits were "unreasonable”. The trial court’s denial of attorney fees was proper. [76 Mich App 504.]
The separate and distinct priority provisions of § 3114 and § 3115 were also discussed by the Michigan Supreme Court in Royal Globe Ins Cos v Frankenmuth Mutual Ins Co, 419 Mich 565; 357 NW2d 652 (1984). Like Davidson, the determination as to which insurance company, Royal Globe or Frankenmuth, paid the plaintiff no-fault benefits depended on whether the plaintiff was an occupant (§3114) or nonoccupant (§3115). In reversing the Court of Appeals and finding the plaintiff not to be an occupant of the vehicle and thus holding Frankenmuth responsible for no-fault benefits rather than Royal Globe, it is significant that attorney fees against Frankenmuth were not awarded.
Plaintiff cites several Court of Appeals decisions in which attorney fees were deemed proper. In these cases, the plaintiff possessed his or her own no-fault insurance policy or was covered by a policy of a family member. The defendant insurer, who admitted coverage for the loss, nevertheless denied paying the claim on the grounds that an other insurer higher in the priority scheme should pay. See Darnell v Auto-Owners Ins Co, 142 Mich App 1; 369 NW2d 243 (1985); Bach v State Farm Mutual Automobile Ins Co, 137 Mich App 128; 357 NW2d 325 (1984); Kalin v DAIIE, 112 Mich App 497; 316 NW2d 467 (1982), lv den 417 Mich 853 (1982). In each of these cases, it was undisputed that the plaintiffs insurer had coverage for the loss and would be required to pay no-fault benefits but for another insurer higher in the priority scheme. This Court held that the failure of the plaintiffs own insurer to pay should be deemed unreasonable when the only dispute was one of priority.
The cases cited by plaintiff deal with priority, not coverage. In the instant case, unlike the decisions cited, plaintiff did not possess a no-fault insurance policy contract with defendant General Accident. Plaintiffs coverage under the General Accident policy is statutorily imposed. The lower court at trial and this Court in its initial opinion held that plaintiff was not statutorily entitled to coverage under the General Accident policy because the van it insured "was not being used as a motor vehicle at the time of the collision.”
Although defendant’s denial of coverage for the loss was in error, serious and legitimate issues of statutory construction were involved. This Court in its prior opinion denied costs on the grounds that the case presented significant issues of statutory construction: "No costs, a question of statutory construction being involved.” Clute, supra, p 644.
We therefore hold that the lower court clearly erred in finding the defendant’s failure to pay no-fault benefits to be unreasonable.
III
Second, we hold that the award of attorney fees was also impermissible as a mediation sanction. Mediation was held on the case in October, 1982. At that time, the mediation court rule in effect was Wayne Circuit Court Rule 403. The pertinent provision with respect to sanctions was 403.15(d):
When the board’s evaluation is unanimous, and the plaintiff accepts the board’s evaluation but the defendant rejects it and the matter proceeds to trial, the defendant must obtain a verdict in an amount which, when interest on the amount and assessable costs from the date of filing of the complaint to the date of the mediation evaluation are added, is more than ten percent (10%) below the evaluation of the board or pay actual costs.
In the present case, the action proceeded to trial and the directed verdict received by the defendant was more favorable s to the defendant than the evaluation. Accordingly, mediation sanctions against the defendant were not available.
We refuse plaintiffs invitation to extend the Wayne Circuit mediation rule as it then existed to judgments entered pursuant to motions prior to trial or posttrial appeals. See Silverstein v Services Inc, 165 Mich App 355; 418 NW2d 461 (1987); American Casualty Co v Costello, 174 Mich App 1, 13; 435 NW2d 760 (1989); Mehelas v Wayne Co Community College, 176 Mich App 809; 440 NW2d 117 (1989).
Reversed; award of attorney fees vacated.
Cynar, J., concurred. | [
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Per Curiam.
Plaintiff appeals as of right from the circuit court’s order granting defendants’ motion for summary disposition. We affirm in part and reverse in part.
On Tuesday, December 22, 1981, plaintiffs decedent, Center Line Police Officer William Rozenboom, was injured when he was shot by George Proper. Rozenboom later died of unrelated causes. George Proper was killed by other officers after shooting Rozenboom.
On the same day, defendant Laura Proper was petitioning the probate court to have George Proper, her husband, committed. George was seventy-one years old at the time of the shooting. He had been committed to a mental institution in Jacksonville, Florida, from March 1, through April 1, 1980, and to the Indiana State Hospital from June 6, through September 3, 1980. On December 17, 1981, George became paranoid and locked himself inside the Propers’ apartment with a loaded deer rifle and a shotgun. George was stating that the "Mafia and police [were] out to get him” and telling Laura to "call the fbi to come and get us out of here.” George told Laura that "I’ll get one of them before they get me.” George then sent Laura out of the apartment because "they’ll get you, too.” George told Laura not to call him because "they” had the telephone bugged, would trace the call and find her. George also believed that the apartment was bugged and warned Laura to stay away from the car because it was "wired.” Laura feared that George would shoot a uniformed police officer if one came to the door.
George also called various friends and asked that they call another friend in Washington, D.C., and have him call the fbi for help. George told the friends that he had guns and would shoot through the door or window.
On Saturday, December 19, George admitted a friend to his apartment and the friend observed three guns in the apartment.
Before noon on Tuesday, December 22, the co-manager of the apartment complex went to check on a soliciting complaint in George’s building. On the way there, another tenant told the comanager that there was a man with a gun. The comanager then saw George, who was wearing red long johns, with a rifle. The comanager, the tenant and a maintenance man, who came upon the scene, hid behind a trash can and George began firing. The comanager then went to another building and telephoned the police, reporting a man shooting a gun.
Rozenboom, who was on duty, heard a dispatch concerning a man with a gun at the apartment complex. Rozenboom was the second officer to arrive at the scene. He heard shots as he approached and the radio dispatcher indicated that shots were fired.
After being informed by the first officer that George was back inside an apartment, Rozenboom retrieved two empty shell casings. Rozenboom determined that George had a .30-’06, a high-powered rifle. Rozenboom warned the other officer about the weapon.
George then opened the door and started to come out of the apartment with the rifle. Rozenboom, who had been pressed up against a wall near the door, turned toward George with his weapon in his hand and told George to freeze. Rozenboom recalled that George’s attire was "funny,” but could not remember what was "funny” about it.
George then jumped back inside and shut the apartment door. Rozenboom thought that he had pressed himself flat against the building, but George shot through the opaque-type window which surrounded the door and hit Rozenboom’s badge. The bullet then deflected into Rozenboom’s left arm, doing extensive damage.
It was later learned that George had threatened to shoot a United Parcel Service employee who was delivering a package. This incident was not reported to the police.
An autopsy revealed that George suffered from hardening of the arteries and shrinkage of his brain, which may have caused his mental difficulties.
At the time defendants filed their motion for summary disposition, plaintiff’s remaining claims were against George’s estate for the assault and battery by George and against Laura for negligence. The claim against Laura was based upon a theory that she voluntarily assumed control over George, a known dangerous person. In particular, plaintiff alleged that (1) Laura failed to remove weapons and ammunition from the apartment knowing that George had threatened to shoot people, including police officers, (2) Laura left the apartment on December 17, knowing George had threatened to cause injury to persons, including police officers, and had the ability to carry out his threats, and (3) Laura had aggravated George’s condition by calling him and warning him that, if he did not voluntarily seek psychiatric help, she would have him committed.
Defendants moved for summary disposition, alleging that plaintiff’s claims were barred by the fireman’s rule. MCR 2.116(C)(8) and (10).
In Kreski v Modern Wholesale Electric Supply Co, 429 Mich 347, 372; 415 NW2d 178 (1987), our Supreme Court adopted the fireman’s rule, holding:
Thus, as a matter of public policy, we hold that fire fighters or police officers may not recover for injuries occasioned by the negligence which caused their presence on the premises in their professional capacities. This includes injuries arising from the normal, inherent, and foreseeable risks of the chosen profession.
The Court noted that the rule had its origin in a fireman’s suit against a property owner, where the fireman was held to be a licensee, thereby placing a duty on the property owner to refrain from wilful, wanton or intentional injury. Id. at 358-359. Eventually, the courts became dissatisfied with determining a landowner’s liability to a fire fighter because of the inherent problems in classifying a fire fighter as an invitee or licensee. Id. at 359-360.
Our Supreme Court then noted that recent decisions adopted the fireman’s rule on the basis of primary assumption of the risk and public policy. Id. at 360. Our Supreme Court declined to decide whether the defense of primary assumption of the risk applied because it held the public policy arguments supporting adoption of the rule to be sufficient. Id. at 365. The Court first noted that fire fighters and police officers were hired, trained and compensated by the public to deal with dangerous, but inevitable, situations generally caused by negligence. Id. at 366. Hence, it would offend " 'public policy to say that a citizen invites private liability merely because he happens to create a need for those public services.’ ” Id. at 366-367 (quoting Pottebaum v Hinds, 347 NW2d 642, 645 [Iowa, 1984]). Our Supreme Court also noted that it was unreasonable to require landowners to prepare their premises for the arrival of police officers or fire fighters where their presence was unpredictable and they might need to enter portions of the premises not usually open to the public. Id. at 368-369. Finally, our Supreme Court noted that work ers’ compensation is available for police officers and fire fighters injured in the course of their employment, thereby spreading the cost of injuries to the public as a whole rather than upon individual property owners. Id. at 369-370.
Our Supreme Court also held that the fireman’s rule should not be limited to the landowner/occupier context and that it extended to negligence which caused the need for the presence of the police officer or fire fighter. Id. at 374-377. However, the Court declined to further delineate the precise parameters of the rule, noting there were no allegations of intentional misconduct before it. Id. at 370-371.
Here, the plaintiff argued that the fireman’s rule should not apply to intentional torts (i.e., the assault and battery claim against George’s estate) or to the negligence claim against Laura. The circuit court ruled upon the motion under MCR 2.116(0(10) because the parties relied upon facts outside of their pleadings to support their positions. The circuit court then held that the claim against Laura was barred under the fireman’s rule because her alleged negligence caused Rozenboom’s presence on the premises in his professional capacity and the injury was a normal, inherent, and foreseeable risk of Rozenboom’s professional duty. The circuit court also found that plaintiff’s claim against George’s estate was barred under the fireman’s rule. The circuit court relied on Lenthall v Maxwell, 138 Cal App 3d 716; 188 Cal Rptr 260 (1982). See also Los Angeles v O’Brian, 154 Cal App 3d 904; 201 Cal Rptr 561 (1984).
In Lenthall, the plaintiff, an on-duty police officer, responded to the defendant’s home because of a report involving a family with weapons, where shots may have been fired. After the police officer arrived, defendant shot him. The plaintiff then sued the defendant, alleging intentional injury. The majority in Lenthall, supra at 719, held:
Our reading of the cases cited to us leads us to conclude as follows: (1) The [fireman’s] rule does not apply to injuries inflicted by an independent actor not connected with the event bringing the officer to the place of injury; (2) the rule does not apply to injuries caused by conduct which the officer could not reasonably anticipate would occur by reason of his presence at the place of injury; (3) but that the rule does apply to injuries inflicted by a participant in the event bringing the officer to the place of injury and the act causing the injury is one which the officer should reasonably expect to occur while he was engaged in the duty bringing him to the place of injury.
As applied to the case before us, a police officer called to subdue a violent offense involving firearms, should reasonably anticipate that one of the persons whom he was called on to subdue might resist him by use of the firearms involved. [Emphasis in original.]
See also Los Angeles, supra, where the fireman’s rule was held to preclude suit by a police officer, who was trailing the defendant, a criminal suspect, when the defendant intentionally backed his van into the officer’s marked patrol car, injuring the officer.
Associate Justice McClosky dissented in Lent-hall, noting that no California case had ever extended the fireman’s rule to injury caused by an intentional act which brought the fire fighter or police officer to the place of the injury and that he saw no reason in law or public policy to extend the benefits of the rule to such tortfeasors. Lenthall, supra at 719. In part, Justice McClosky noted that treating fire fighters and policemen as though they voluntarily assumed such risks "was almost al ways a myth” because they were required by their employment to incur such risks. Id. at 720.
On appeal, the plaintiff here contends that our Supreme Court’s opinion in Kreski, supra, indicates that it would not apply the fireman’s rule to an intentional tortfeasor whose acts required the officer’s presence on the premises. Defendants disagree, noting that our Supreme Court held that primary assumption of the risk was viable in Michigan. Id. at 365.
We hold that the fireman’s rule does not preclude Rozenboom’s suit against George’s estate. In doing so, we agree with the following remarks from Berko v Freda, 93 NJ 81, 90; 459 A2d 663, 667-668 (1983):
[S]ince police fight crime, they must expect an occasional encounter with violence. Why then should they be permitted to sue a thief for personal injuries when they have assumed the risk that the thief might fight back? We resolve this paradox by observing that the public policy underlying the "fireman’s rule” simply does not extend to intentional abuse directed specifically at a police officer. "To permit this would be to countenance unlimited violence directed at the policeman in the course of most routine duties. Certainly the policeman and his employer should have some private recourse for injuries so blatantly and criminally inflicted.” Krueger v City of Anaheim [130 Cal App 3d 166, 170; 181 Cal Rptr 631, 634 (1982)]. No fundamental unfairness results from allowing an officer to sue a criminal. The crook does not summon the police for help. While the police are paid to risk being assaulted, they are not paid to submit to a criminal assault.
We further believe that the public should not be required to bear, through workers’ compensation, the entire expense of safety officers’ injuries when they result from an individual’s intentional acts. Moreover, in cases where the defendant’s intentional actions will likely be found to be criminal acts upon the officer, the defendant should not receive the benefit of the fireman’s rule to shield him from civil liability. Michigan has long had a public policy against allowing criminals to benefit from their wrongdoing. See, e.g., MCL 333.7521 et seq. and 700.251; MSA 14.15(7521) et seq. and 27.5251. Hence, we hold that the circuit court improperly granted summary disposition to the estate of George Proper. Nonetheless, we hold that summary disposition was correctly granted as to defendant Laura Proper for the reasons stated by the circuit court. Kreski, supra at 374-377.
Affirmed in part and reversed in part. | [
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Per Curiam.
Defendant, Marcus Finley, appeals as of right from his jury conviction for assault with a deadly weapon, MCL 750.82; MSA 28.277, and for possession of a weapon by an inmate, MCL 800.283; MSA 28.1623. Defendant was sentenced to two to four years on the assault conviction and three to five years for the convict in possession of a weapon conviction. Defendant claims that error requiring reversal occurred when the prosecutor was allowed to elicit testimony and argue to the jury that defendant remained silent when placed under arrest. We agree and reverse.
The instant case arose from the stabbing of Jerry Blackwell, a prison inmate. Blackwell was stabbed on December 7> 1986. Philip Miller, a corrections officer at the Michigan Reformatory in Ionia, was in his office when he heard trash cans being overturned. Miller then ran to the door of the shower area, looked inside the window on the door of the shower area and saw defendant hold ing a knife and moving it up and down. Miller opened the door. Defendant stood up and moved towards a nearby window. Blackwell ran down the hall. According to Miller, there were thirteen other inmates in the shower area at that time.
Moments later Roger Taylor, a corrections shift supervisor, arrived at the scene after answering a radio call. Officer Miller was holding open the door to the shower room. Upon entering the shower area, Taylor saw defendant make a throwing motion towards the open window in the shower area with his left hand. Miller and Taylor walked over to defendant. Defendant outstretched his arms to be handcuffed and said nothing. Officer Taylor could not remember if there was blood on defendant’s hands, feet or clothing. A state police officer stated that defendant’s pajamas had blood on them. A knife with blood on it was found near the shower window in the prison yard by Officer Taylor.
The victim, Blackwell, testified that defendant could not have stabbed him because defendant was standing over by the showers and not by Blackwell. Blackwell also remembered that the assailant had a black hand, unlike defendant.
The prosecutor, during the direct examination of Officer Taylor, asked Taylor if defendant said anything when he was first handcuffed. Taylor testified that defendant said nothing. During closing argument, the prosecutor made two comments to the jury about defendant’s silence when being handcuffed by the prison guards.
The fact that a defendant did not make a statement or remained silent cannot be used against a defendant to prove he was guilty or to impeach him. People v Bobo, 390 Mich 355; 212 NW2d 190 (1973). A defendant’s silence can only be used to contradict testimony by a defendant asserting that he made a statement to the police. Bobo, supra, p 359. The prosecutor cannot ask about a defendant’s silence or comment on it during opening or closing argument. Bobo, supra, pp 359-360. This right becomes effective as soon as defendant has contact with police officers. People v Collier, 426 Mich 23, 31; 393 NW2d 346 (1986). Where, as here, the defendant fails to object at trial to questions concerning his silence in the face of an accusation, this Court is not precluded from reviewing an alleged infringement of his constitutional right to remain silent. People v Pelkey, 129 Mich App 325, 330; 342 NW2d 312 (1983). Although defendant did not object to the questions asked by the prosecutor on direct examination of Officer Taylor, defendant did move for a mistrial shortly after Taylor’s testimony. The trial court denied the motion.
Before reversal is required the harmless error test must be applied. People v Jones, 168 Mich App 191, 194; 423 NW2d 614 (1988); People v Norris, 74 Mich App 361, 366; 253 NW2d 767 (1977); People v Swan, 56 Mich App 22; 223 NW2d 346 (1974), lv den 395 Mich 810 (1975). In Swan it was also stated:
We will find it difficult in the future to believe that prosecutors and police are ignorant of the well-established principle of law which forbids comment upon an accused’s silence or that clear violations of the principle arise from inadvertence. Deliberate violations of this rule may lead us to reverse convictions even where evidence might be overwhelming. [Swan, supra, p 35.]
In the instant case the prosecution’s evidence was entirely the testimony of the two prison guards who claimed to have seen the incident. Only one of the prison guards actually claimed he saw defendant making stabbing motions, although he did not actually observe defendant stabbing Blackwell. Testimonial evidence from prison inmates was contradictory to that of the prison guards and, if believed, would lead to the conclusion that defendant was not guilty of the instant crime. Included among these inmates was the victim himself, who testified that defendant could not have committed the stabbing. Because the credibility of the various witnesses may very well have been the deciding factor in this case, the prosecution’s use of defendant’s silence when arrested for the instant crime cannot be found to be harmless error. Had this evidence not been presented to the jury, there is a reasonable doubt that at least one juror would have voted to acquit. The right to remain silent at the time of arrest and thereafter is a constitutional right and should not be used against a defendant. This is especially true where the other evidence against defendant is not overwhelming. Accordingly, this case is reversed and remanded for a new trial.
Defendant argues that the instant case should be dismissed because his trial was not held within the 180-day time period required by MCL 780.131; MSA 28.969(1). It is well established that the actual trial need not commence within the 180-day period. Rather, the prosecution must establish that it took good faith action within that time to ready the case for trial. People v Johnson, 115 Mich App 630, 634; 321 NW2d 752 (1982). Where a defendant’s preliminary examination begins within the 180-day limitation period and there is no showing of lack of good faith on the part of the prosecution in proceeding promptly towards trial, reversal is not required. People v Stephens, 103 Mich App 640, 643; 303 NW2d 51 (1981).
In the instant case, defendant’s preliminary examination was held within the 180-day limitation period. The prosecutor did not fail to exercise good faith in proceeding to trial after that time. Trial was delayed by defendant’s motion to adjourn. Delays in bringing a defendant to trial that defendant causes, justified or not, will not cause a dismissal under the 180-day rule. Johnson, supra, p 635. Accordingly, there was not a violation of the 180-day rule in this case, and so dismissal is not required.
Defendant raises other issues on appeal, but we need not consider them in light of our resolution of the first issue addressed.
Reversed and remanded.
We reject appellee’s claim that the prohibition of commenting on an accused’s silence does not apply to prison guards. See People v Grevious, 119 Mich App 403; 327 NW2d 72 (1982), requiring that a prison inmate be given the Miranda warning. | [
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Per Curiam.
Defendants appeal from an order of summary disposition in favor of plaintiff for no genuine issue of material fact, MCR 2.116(0(10), on plaintiffs claim for moneys owed under a lease of personal property. We affirm.
Defendant French Connection is a Florida business which operates restaurants in the State of Florida. Defendant Cartier is an officer of the corporation. In 1985, a Florida vendor, Profit Systems of Florida, contacted defendants through its sales agent, Dan Logan, to sell defendants a line of slush equipment to prepare for sale a frozen drink product. Logan interested defendants in the product, resulting in a sale in which defendants would lease two frozen ice machines for a three-year period. The lease was arranged through plaintiff leasing company. Thus, the machines selected by defendant Cartier were sold to the leasing company, which in turn leased the machines to defendants.
Although Logan was an employee of Profit Systems, he did carry with him the various documents to initiate the lease transaction and was the person who brought to defendant Cartier’s attention the possibility of conducting the transaction under a lease rather than an outright sale. In consummating the deal, two separate documents were executed by defendant Cartier as agent for defendant French Connection. The first document was the equipment order by French Connection with Profit Systems. The second document was the lease agreement executed between defendant French Connection as the lessee, defendant Cartier as the personal guarantor of the lease, and plaintiff Potomac Leasing as the lessor. The order form, to which plaintiff was not a party, contained a handwritten clause that Profit Systems agreed that, if defendant Cartier was dissatisfied with the equipment within six months after installation, Profit Systems would remove the equipment and the lease would be void. The lease agreement itself does not contain an analogous clause.
After the installation of the two frozen slush machines at two of defendants’ locations, defendant Cartier became dissatisfied with the units. One unit failed to operate properly and the second unit, while operating properly, generated insufficient sales revenues to pay for itself. Accordingly, defendant Cartier attempted to execute the provision of the order agreement which permitted him to return the equipment to Profit Systems. At the same time, allegedly because of his dissatisfaction with the unit which would not operate, defendant Cartier did not remit any of the lease payments to plaintiff. Plaintiff therefore began its attempts to collect the moneys owed on the lease, resulting in the instant litigation.
On appeal, defendants first argue that the trial court did not have personal jurisdiction over them and erred in denying defendants’ earlier motion for summary disposition pursuant to MCR 2.116(C)(1). We disagree.
In their brief on appeal, defendants present a rather detailed argument in support of the position that they have insufficient contact with the State of Michigan to allow Michigan to exercise long-arm jurisdiction over them in this case. In response, plaintiff argues that there were sufficient contacts and that, in any event, defendants agreed to submit to Michigan jurisdiction under the lease agreement. It is unnecessary for us to conclude whether defendants did, in fact, have sufficient minimum contacts with Michigan to permit the exercise of long-arm jurisdiction over defendants in this case as we agree with plaintiff that defendants agreed to submit to jurisdiction in Michigan. Paragraph 18 of the lease agreement provides as follows:
This Agreement shall be governed and interpreted in accordance with the laws of the State of Michigan and, for the purpose of resolving any issue pertaining to conflict of laws, this Agreement shall be deemed to be fully and solely executed, performed and/or observed in the State of Michigan. The parties hereto expressly consent to personal jurisdiction in the State of Michigan in any action or proceeding brought in any court therein, state or federal, arising from or alleging facts arising from the transactions contemplated herein. [Emphasis added.]
It has been recognized by both this Court and by the United States Supreme Court that parties may agree, even in advance of litigation, to submit to the personal jurisdiction of a particular forum. See Burger King Corp v Rudzewicz, 471 US 462, 472, n 14; 105 S Ct 2174; 85 L Ed 2d 528 (1985); National Equipment Rental, Ltd v Miller, 73 Mich App 421, 424; 251 NW2d 611 (1977). As the above-quoted portion of the lease agreement clearly indicates, defendants consented to personal jurisdiction in the courts of the State of Michigan. Accordingly, the trial court correctly ruled that it had personal jurisdiction over defendants.
Defendants also argue that the trial court erred in granting summary disposition for no genuine issue of material fact in favor of plaintiff. The essence of defendants’ argument, both in the trial court and in this Court, is that Logan may have been an agent of both plaintiff and the vendor and, accordingly, the representations made by Logan that the equipment could be returned and the lease voided within six months is enforceable against both plaintiff and the vendor. We disagree that there is any genuine issue of material fact on the agency question.
Logan’s promise to defendants that they could return the equipment and void the lease within six months is binding against plaintiff only if it is found that Logan was plaintiff’s agent. Defendants assert that there remain three questions of material fact to be decided by the trier of fact, any one of which, if established, would support defendants’ position: (1) Logan was the actual agent of plaintiff in negotiating the terms of the equipment lease; (2) although Logan was not plaintiff’s agent, plaintiff is estopped to deny the agency; and (3) Logan is an agent based upon his representations to defendants which induced defendants to act to their prejudice, thus estopping plaintiff from denying the agency. We, however, disagree with defendants that there remains any genuine issue of material fact on these questions.
With respect to whether Logan was actually an agent of plaintiff, defendants point to no evidence establishing that he was actually an agent. Furthermore, defendant Cartier testified at his deposition that at no time did any person associated with plaintiff indicate that either Logan or his employer, Profit Systems, was plaintiff’s agent. Furthermore, at the top of the lease agreement in bold face print, plaintiff specifically disclaims any agency relationship with Profit Systems or its employees:
Neither Vendor nor any salesman is an agent of Lessor nor are they authorized to waive or alter the terms of this Lease. Their representations shall in no way affect Lessee or Lessor’s rights or obligations as herein set forth.
In light of Cartier’s admissions at his deposition and the language of the lease agreement itself, we conclude that there is no genuine issue of material fact and that Logan was not an agent of plaintiff.
Turning to defendants’ remaining two allegations of questions of material fact, they both essentially restate the same theory, that plaintiff is estopped to deny that Logan was their agent. The flaw in defendants’ theory is that, by Cartier’s own admission in his deposition, plaintiff never made any representations that Logan or Profit Systems was its agent. Rather, at most, defendants suggest that Logan made representations to Cartier during negotiations which induced Cartier to believe that Logan was an agent of plaintiff. It is, however, settled law that apparent authority of an alleged agent must flow from the representations of the principal and not the representations of the alleged agent. See Smith v Saginaw Savings & Loan Ass’n, 94 Mich App 263, 271; 288 NW2d 613 (1979). In the case at bar, defendants only point to alleged representations by Logan to establish the apparent authority. Accordingly, their argument must fail since Logan’s representations, if any, cannot be the basis for establishing his own authority.
Finally, we note that, even if Logan was plaintiffs agent, Logan’s agreement to allow cancellation of the lease within six months would be unenforceable because Paragraph 15 of the lease agreement itself provided, in bold print, that the terms of the lease could not be modified except by a written instrument executed by an officer of the corporation:
It is specifically understood and agreed that ALL UNDERSTANDINGS AND AGREEMENTS HERETOFORE AND BETWEEN THE PARTIES HERETO RELATIVE TO THIS LEASE ARE MERGED IN THIS AGREEMENT, WHICH CONTAINS THE ENTIRE AGREEMENT AND UNDERSTANDING OF THE PARTIES HERETO, AND NEITHER PARTY RELIES UPON ANY OTHER STATEMENT OR REPRESENTATION. This agreement may not be modified OR CANCELLED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY THE LESSEE AND A CORPORATE officer of the lessor. [Emphasis added.]
Thus, even if Logan was an agent of plaintiff, he specifically lacked the authority to modify the lease agreement. Accordingly, there is no genuine issue of material fact concerning whether plaintiff was bound by Logan’s promise to Cartier that he could cancel the lease within six months. As dis cussed above, Logan lacked the authority to bind plaintiff to such a promise.
For the above reasons, we conclude that the trial court properly granted summary disposition in favor of plaintiff.
Affirmed. Plaintiff may tax costs._
Of course, our determination that Logan could not bind plaintiff to such a promise does not address the issue of Logan’s authority to bind his employer, Profit Systems, to such an agreement with defendants. It is entirely possible that defendants have a remedy against Profit Systems and might well prevail in a suit for contribution against Profit Systems brought in the appropriate forum. | [
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Per Curiam.
Suit was brought for damages sustained as a result of allegedly faulty design and construction of a building contracted for by plaintiff. Liability against both defendant Bob Seger, an architect, and defendant Urban Engineering Company, the firm retained to provide "survey engineering services,” was premised on breach of contract and negligence. Seger was precluded from participating in the trial due to his default. During trial, the court dismissed the claims against Urban Engineering by entering a directed verdict in its favor. At the conclusion of trial, the jury returned a verdict of damages in the amount of $436,000 against Seger, who appeals as of right. Plaintiff cross-appeals in order to challenge the ruling that Urban Engineering was entitled to a directed verdict.
Defendant Seger first argues that the trial court should have set aside the default on the basis of Seger’s showing of excusable neglect arising from his reliance on representations made by plaintiffs counsel. Although Seger’s assertion of excusable neglect could suggest that he is seeking relief pursuant to MCR 2.612(C), which governs relief from judgments or orders generally, we construe his argument as premised upon the more specific provision for setting aside a default in MCR 2.603(D). The "good cause” requirement of the latter rule, see MCR 2.603(D)(1), imposes a less strenuous showing of reasonable excuse on the party seeking to avoid the default than the "excusable neglect” ground for relief from a final judgment provided in MCR 2.612(C)(1)(a). See Levitt v Kacy Mfg Co, 142 Mich App 603; 370 NW2d 4 (1985). The determination of whether or not to set aside a default is committed to the sound discretion of the trial court and will not be reversed on appeal absent a clear abuse of discretion. Deeb v Bern, 118 Mich App 556, 561; 325 NW2d 493 (1982). We find no abuse of discretion. Seger’s failure to retain counsel or to otherwise protect his own interests over a substantial period of time during which he was aware of the suit is inexcusable. The reasons put forth for his omission to act are untenable. See First Bank of Cadillac v Benson, 81 Mich App 550, 554-555; 265 NW2d 413 (1978). We further discern no manifest injustice that would result if the default is permitted to stand.
Seger next argues that notice of the request for default judgment was untimely. MCR 2.603(B) provides in pertinent part:
(B) Default Judgment.
(1) Notice of Request for Judgment.
(a) A party seeking a default judgment must give notice of the request for judgment to the defaulted party
(i) if the party against whom the judgment is sought has appeared in the action;
(ii) if the request for entry of judgment seeks relief different in kind from, or greater in amount than, that stated in the pleadings; or
(iii) if the pleadings do not state a specific amount demanded.
(b) The notice required by this subrule must be served at least 7 days before entry of the requested judgment.
* * *
(3) Default Judgment Entered by Court. In all other cases the party entitled to a judgment by default must apply to the court for the judgment.
(b) If, in order for the court to enter judgment or to carry it into effect, it is necessary to
(i) take an account,
(ii) determine the amount of damages,
(iii) establish the truth of an allegation by evidence, or
(iv) investigate any other matter,
the court may conduct hearings or order references it deems necessary and proper, and shall accord a right of trial by jury to the parties to the extent required by the constitution.
In this case, Seger was entitled to notice pursuant to the foregoing because the complaint did not state a specific amount in its demand for damages. The question remains whether plaintiff complied with the seven-day provision of MCR 2.603(B)(1)(b).
Seger was personally served with process at the commencement of this case. Because he did not answer the complaint or otherwise appear, default was entered on March 18, 1983. In accordance with the procedure then prevailing under the General Court Rules of 1963, notice of entry of default was not given to Seger, see GCR 1963, 107.1(1), 520.1, although Seger was aware of the pendency of proceedings against him. By motion filed on March 18, 1986, plaintiff requested entry of a default judgment pursuant to MCR 2.603(B)(3). The notice of request for the default judgment required by MCR 2.603(B)(1) was served on March 12, 1986. Trial commenced March 17, 1986. Judgment for damages against Seger was entered when the trial judge signed the judgment on May 7, 1986. See MCR 2.602(A). Therefore, if the requirement of MCR 2.603(B)(1)(b) is taken literally, it was not violated; the notice of request for default judgment, given on March 12, 1986, preceded the May 7 entry date by well over the requisite seven days.
However, we find this construction to be untenable. It is clear that the purpose of the notice requirement is to apprise the defaulting party of the possibility of entry of judgment so that he may have an opportunity to participate in any hearing necessary to ascertain the amount of damages or other form of remedy to be granted. White v Sadler, 350 Mich 511, 519; 87 NW2d 192 (1957); Meyer v Walker Land Reclamation, Inc, 103 Mich App 526, 540-541; 302 NW2d 906 (1981). This underlying purpose is premised on the distinction between the entry of default and the entry of judgment: the former operates as an admission by the defaulting party of issues of liability, but leaves the issues of damages unresolved until entry of judgment. Wood v DAIIE, 413 Mich 573, 578; 321 NW2d 653 (1982); Meyer, supra, p 540. The latter reduces the default to a judgment for money damages. Once a valid default is taken, the defaulting party remains entitled to full participatory rights in any hearing necessary for the adjudication of damages, including the right to a jury trial if a timely demand therefor was made, to present evidence, and to cross-examine witnesses. Wood, supra, pp 583-585; Meyer, supra, pp 540-541. In keeping with these principles, we hold that the seven-day requirement must be applied with refer ence to any hearing or trial necessitated by the request for judgment when that hearing occurs on a date preceding the actual entry of the default judgment. A contrary construction would defeat the purposes and policies underlying MCR 2.603 if applied to deny the defaulting party less than seven days’ advance notice of the onset of the hearing or trial fixing the amount of damages.
We note that the former court rules explicitly required that notice be served seven days "prior to the hearing on such application” for judgment by default. GCR 1963, 520.2(2). Although the present form of the court rule tends to obscure this problem, apparently assuming that the hearing provided by MCR 2.603(B)(3)(b) will occur contemporaneously with the entry of judgment, we do not believe that the draftsmen of the present court rules intended to thereby diminish the rights of the defaulting party. Rather, our holding is consistent with the principle that court rules are to be construed to further the meritorious disposition of cases. American Central Corp v Stevens Van Lines, Inc, 103 Mich App 507, 513; 303 NW2d 234 (1981).
For reasons already stated, the decision of the trial court to deny Seger the right to present evidence and to cross-examine witnesses solely on damages was also erroneous. Accordingly, we affirm the entry of default, but reverse the entry of judgment by default and remand for an evidentiary hearing on the issue of damages consistent with the remedy provided in Meyer, supra, p 541.
In its cross-appeal, plaintiff argues that the trial court erred by granting Urban Engineering a directed verdict on the ground of the insufficiency of the evidence. In reviewing this claim, it is our function to view the evidence in a light most favorable to plaintiff, giving plaintiff the benefit of every reasonable inference that can be drawn from the evidence. If, under this view of the evidence, reasonable men could differ, the motion for a directed verdict should have been denied. See Boggerty v Wilson, 160 Mich App 514, 522; 408 NW2d 809 (1987), lv den 430 Mich 851 (1988).
We have reviewed plaintiffs claim under this standard and conclude that the proofs were insufficient to establish the requisite element of causation for the damages associated with the flooding of plaintiffs building. One of plaintiff’s theories of recovery was that Urban Engineering set the grade stakes, which were used as a point of reference to determine the elevation of a floor at the time of the pouring of concrete. However, Richard Nodel, a principal of the general construction contractor, testified without contradiction that the stakes were not in place at the time that the floor was poured. Rather, Nodel fixed the level of the floor in accordance with the contractor’s own setting of the elevation level. Therefore, reasonable minds could not attribute the causation of flooding to any improper setting of the grade stakes by Urban Engineering. Although Nodel was impeached by his deposition testimony that the floor was poured in accordance with Urban Engineering’s stakes, this testimony had no substantive evidentiary value. See Smith v Woronoff, 75 Mich App 24, 30-31; 254 NW2d 637 (1977), lv den sub nom Smith v Love, 402 Mich 902 (1978). We further find no error arising from judicial comments made during the trial court’s ruling granting a directed verdict. The trial judge’s state of familiarity with construction matters did not amount to personal knowledge of any factual matters heard at trial, but rather was used as an aid to understanding the evidence presented in the normal course of trial.
A second theory of recovery was that Urban Engineering improperly set stakes used to fix the elevations for the drainage system. However, the evidence established that the design fixing the elevations resulted from architectural malfeasance, not from any conduct attributable to Urban Engineering. The pitch of the drainage pipe was the responsibility of Nodel. Expert testimony established that the slope of the drainage pipe was too shallow, thereby deviating slightly from the design, and causing a malfunction because dirt clogged it up and blocked the runoff of draining water. However, the same expert testified that the drainage system would have caused flooding even if constructed as designed. From this evidence, we discern no reasonable inference that could attribute causation of the flooding to the allegedly improper placement of the stakes for the drainage system by Urban Engineering.
We conclude that the evidence on each of the two theories asserted by plaintiff was insufficient to establish the requisite causal connection to damages as a matter of law, either on a tort claim, Nicholson v Children’s Hospital of Michigan, 139 Mich App 434; 363 NW2d 1 (1984), lv den 421 Mich 854 (1985), or on the recasting of the same facts as an alleged breach of a contractual duty to provide services required for a suitable building, Walter Toebe & Co v Dep’t of State Highways, 144 Mich App 21, 36; 373 NW2d 233 (1985), lv den 424 Mich 860 (1985). A third theory of improper initial investigation of the building site was neither addressed in a meaningful evidentiary sense during trial nor asserted during the hearings conducted on the motion for a directed verdict. Since this theory is now raised only on a belated basis, we will not consider it. See Bajis v City of Dearborn, 151 Mich App 533, 536; 391 NW2d 401 (1986), lv den 426 Mich 874 (1986). The entry of a directed verdict was proper.
Affirmed in part, reversed in part, and remanded.
Seger additionally contends that his attendance at his deposition amounts to an appearance. Even if this contention is accepted as true, Seger had made no appearance prior to the time of the entry of default. | [
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Per Curiam.
Petitioner Morton H. Jaffe, doing business as Morton Jaffe Associates, appeals as of right from a May 18, 1987, judgment of the Michigan Tax Tribunal, which sustained respondent Department of Treasury’s decision and order assessing additional individual income tax and interest penalties totaling $38,556.93 for tax years 1981, 1982 and 1983. This disputed assessment arises from the department’s determination that Jaffe’s cattle operation and advertising activities were not a unitary business, and that therefore Jaffe could not offset beef-production losses against his advertising revenues for the years in question.
Petitioner argues on appeal that the hearing officer misapplied the five-factor unitary business test since the findings of fact were not supported by substantial evidence. Plaintiff also asserts that the tribunal committed error requiring reversal in failing to apply the standards set forth by the United States Supreme Court to determine a unitary business.
Appellate review of a Tax Tribunal decision is limited to determining whether the decision was supported by law and whether the findings of fact were supported by competent, material and substantial evidence on the whole record. Master Craft Engineering, Inc v Dep’t of Treasury, 141 Mich App 56, 68; 366 NW2d 235 (1985). "Substantial evidence” must be more than a scintilla of evidence, although it may be substantially less than the preponderance of the evidence required for most civil cases. Russo v Dep’t of Licensing & Regulation, 119 Mich App 624, 631; 326 NW2d 583 (1982). The burden of proof in an appeal from an assessment, decision, or order of the Tax Tribunal is on the appellant. Holloway Sand & Gravel Co, Inc v Dep’t of Treasury, 152 Mich App 823, 831, n 1; 393 NW2d 921 (1986).
In order to qualify as a unitary business and justify apportioning his multistate business income, Jaffe carried the burden of establishing a nexus between his Michigan advertising activities and the cattle operation in Texas because, where the attributes of an interstate unitary business are lacking, apportionment provisions do not apply. Holloway, pp 829-830, citing Mobil Oil Corp v Comm’r of Taxes of Vermont, 445 US 425, 440; 110 S Ct 1223; 63 L Ed 2d 510 (1980), and F W Woolworth Co v Taxation & Revenue Dep’t of New Mexico, 458 US 354, 372; 102 S Ct 3128; 73 L Ed 2d 819 (1982).
The hearing officer in the instant case deter mined that the minimum contact or nexus required to support apportioned taxation was lacking and identified the following five factors in reaching his conclusion: (1) economic realities; (2) functional integration; (3) centralized management; (4) economies of scale; (5) substantial mutual interdependence. The Holloway Court credited these five factors with being guideposts in determining whether a multistate business is unitary or discrete.
Since the hearing officer was legally correct in following Holloway, which in turn relied on the United States Supreme Court’s guideposts in distinguishing unitary businesses, the proper law was applied to Jaffe’s business activities. The real issue is whether the hearing officer’s findings of fact with regard to the guideposts were supported by competent, material and substantial evidence on the whole record. Master Craft, supra.
Jaffe testified that the only two ways in which the two business activities were related were (1) the use of advertisement-generated credit to obtain financing for the cattle operation, and (2) that Jaffe alone managed both activities from his Michigan office.
The hearing officer properly found that there was no functional integration of the activities. Also, he properly found no economies of scale, e.g., no resulting increase in profits or improved allocation of resources when considering the two activities as a unit. The only factor which Jaffe satisfied was that of centralized management. In this regard, Jaffe testified that the Texas feedlot operators were independent contractors with limited discretion to whom Jaffe directed instructions by telephone. Jaffe made virtually every important decision regarding the cattle operation and kept one set of books for both businesses. The hearing officer properly found that Jaffe met the test for the centralized management factor.
Jaffe argues that the extreme importance of the two business activities’ centralized management should have resulted in a finding that the businesses were functionally integrated as well, and unitary in nature. In support of this position, Jaffe quotes Russell Stover Candies, Inc v Dep’t of Revenue, 665 P2d 198 (Mont, 1983). This Court finds Russell Stover Candies to be not only factually distinguishable but nonbinding on this Court.
Further, this Court’s review of the tribunal’s decision is limited. In short, there was substantial evidence on the record that Jaffe’s advertising and cattle operations were not functionally integrated or interdependent and did not share economies of scale. This was evidenced by their only common denominators being Jaffe’s control and operation of both businesses.
Aside from the centralized management aspect, the only connection between the two businesses was Jaffe’s use of some advertising funds to secure credit for the cattle operation at an Oklahoma bank. The funds used as security were not broken down into "personal” or "advertising” funds at the hearing. Since Jaffe operated a sole proprietorship, presumably all profits derived from any of his business sources were personal, ultimately. Although both businesses were inextricably tied to Jaffe, they were not themselves interdependent. And to a substantial degree, the cattle operation was carried out in Texas rather than Michigan. This Court specifically finds that the tribunal hearing officer did fairly determine that the businesses were not unitary based on the evidence produced by Jaffe.
This Court concludes that the hearing officer properly determined that Jaffe’s advertising activities and cattle operation were not a unitary business. The hearing officer applied the proper standards, and there was substantial evidence on the record to support his decision.
Petitioner next contends that if his cattle operation constituted a separate business, then the losses from that operation should be treated as npnbüsiness losses allocable to Michigan.
Jaffe did not make this particular claim before the tribunal. His failure to raise the issue below precludes its consideration by this Court. Dow Chemical Co v Curtis, 158 Mich App 347, 352; 404 NW2d 737 (1987), lv gtd 428 Mich 911 (1987).
Moreover, Jaffe’s argument that his cattle-operation losses constituted nonbusiness losses and should therefore be allocated to Michigan is without merit. Jaffe’s cattle-operation income or loss was business income or loss as defined by the act. Therefore, Jaffe may not allocate such income or loss to Michigan as nonbusiness income or loss.
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Beasley, P.J.
In these consolidated cases, we decide whether plaintiffs, with claims against the state under the Civil Rights Act and the Michigan Handicappers’ Civil Rights Act, possess the right to jury trials.
Plaintiff Michael Barbour brought an action against defendant Michigan Department of Social Services under the Civil Rights Act, alleging that he was forced to take a medical leave of absence from his employment as a dss foster care worker due to continuous sexual harassment by his coworkers and supervisors.
Plaintiff Bobbie P. Lucas brought an action against defendant dss under the handicappers’ act, claiming that he was forced to retire from his position as assistant payment supervisor by defendant’s refusal to accommodate his physical inability to tolerate excessive ambient cigarette smoke levels at defendant’s place of business.
Plaintiff Hubert Kilgore, III, brought an action against defendant Michigan Department of State Police under the Civil Rights Act, alleging that he was wrongfully discharged from his employment as a state police trooper in the state police training academy due to unlawful racial discrimination.
Plaintiff Susan Stewart brought an action against defendant state police department under the Civil Rights Act, alleging that, while employed in defendant’s Motor Carrier Division, she was harassed and denied promotions and training opportunities because of her sex. Plaintiff Stewart also asserted that defendant had retaliated against her for complaining about sexual harassment and discrimination.
Plaintiff Marilyn Lapides brought an action against defendant State Judicial Council alleging sexual discrimination. Lapides claimed that, while she worked for the Wayne County Friend of the Court, defendant disciplined her for alleged mis conduct that was tolerated when committed by male employees.
All five plaintiffs demanded jury trials. In each case, the trial court denied defendant’s motion to strike plaintiff’s jury demand. Defendants appeal by leave granted, arguing that trial by jury is not available in these actions.
In Marsh v Civil Service Dep’t , a panel of this Court addressed this issue and held that the right to a jury trial attaches to claims brought pursuant to both the Civil Rights Act and the Michigan Handicappers’ Civil Rights Act. The parties argue at length about the precedential value of the Marsh decision; defendants contend that the Court’s conclusion regarding the jury trial issue lacks the force of an adjudication because it was unnecessary to the opinion. We need not address this issue. Although published opinions of this Court bind lower courts, other panels of this Court constitute courts of equal dignity and are not obligated to follow the decisions of previous panels. The issue surrounding the precedential value of Marsh becomes moot beyond the trial court level.
Both the Civil Rights Act and the handicappers’ act impose the same duties upon state agencies as upon private employers. Both civil rights acts also provide a plaintiff with direct access to the circuit court. Neither act expressly provides a plaintiff with the right to a jury trial.
In King v General Motors Corp, the case upon which the Marsh panel relied, defendant gmc appealed from a jury verdict won by plaintiff King on a Civil Rights Act claim. General Motors argued that King had no right to a jury trial. The Court disagreed, holding:
While the Elliott-Larsen Civil Rights Act is silent on the right to a trial by jury, we find that jury trials are a litigant’s right under the act. Const 1963, art 1, § 14. An employment discrimination action constitutes a suit for damages and is therefore an action at law which existed prior to the adoption of the Michigan Constitution in 1963.
Here, defendants argue that the state’s sovereign immunity distinguishes it from a private defendant. While General Motors may be subjected to a jury trial on a civil rights act claim, they argue that the state may not because it has not waived its immunity from jury trials.
Generally, the state and its agencies cannot be sued in its own courts unless, by an act of the Legislature, it confers jurisdiction upon the courts. Defendants do not dispute that when the Legislature enacted MCL 37.1606; MSA 3.550(606) and MCL 37.2801; MSA 3.548(801), it conferred jurisdiction on the circuit court to decide civil rights act claims. Defendants, however, contend the Legislature’s consent did not extend so far as to give plaintiffs the right to a jury trial. We disagree.
In most types of actions, the state cannot be tried in front of a jury because the Legislature requires those actions to be tried in the Court of Claims, where cases are heard without a jury. In Freissler v State Highway Comm, this Court stated that the Legislature decided to hold nonjury trials in the Court of Claims after making "a legitimate determination that local jurors might not be as fiscally responsible in awarding state funds to successful plaintiffs as they would be in awarding local tax dollars to said plaintiffs.”
While the same consideration might be valid in cases brought against the state in circuit court, the Legislature never reached such a conclusion. Had the Legislature intended all civil rights claims against the state to be tried without a jury, it would seem that it would have conferred jurisdiction over such suits upon the Court of Claims, not the circuit court.
Finally, defendants attempt to distinguish the within cases from King, supra. As stated earlier, the King Court held that jury trials are a litigant’s right in Civil Rights Act claims because employment discrimination claims are actions at law which existed prior to the adoption of the state constitution. Defendants claim that no such right exists in suits against the state because no action against the state existed in the circuit court prior to the adoption of the Michigan Constitution of 1963. Const 1963, art 1, §14 guarantees the right to jury trial in cases arising under statutes en acted subsequent to adoption of the constitution which are similar in character to cases in which the right to jury trial existed prior to adoption of the state constitution. We reject defendants’ argument because it appears to ask us to make a distinction based on the character of a party, not the character of the action.
Affirmed.
MCL 37.2101 et seq.; MSA 3.548(101) et seq.
MCL 37.1101 et seq.; MSA 3.550(101) et seq.
Two other cases, Russau v Michigan, Docket No. 96870, and Medina v Civil Service Comm, Docket No. 98300, were originally consolidated as part of this appeal. Both cases were dismissed pursuant to stipulations.
142 Mich App 557, 569-570; 370 NW2d 613 (1985).
Hackett v Ferndale City Clerk, 1 Mich App 6, 11; 133 NW2d 221 (1966).
MCL 37.1103(e); MSA 3.550(103)(e), MCL 37.1201(b); MSA 3.550(201)(b), MCL 37.2103(f); MSA 3.548(103)®, MCL 37.2201(a); MSA 3.548(201)(a).
MCL 37.1606; MSA 3.550(606), MCL 37.2801; MSA 3.548(801).
Smith v University of Detroit, 145 Mich App 468, 475; 378 NW2d 511 (1985) (Civil Rights Act claim).
136 Mich App 301; 356 NW2d 626 (1984).
Marsh, supra, p 570.
11 King, supra, p 308.
See Ross v Consumers Power Co (On Rehearing), 420 Mich 567, 598; 363 NW2d 641 (1984), quoting Michigan State Bank v Hastings, 1 Doug 225, 236 (Mich, 1844).
MCL 600.6419; MSA 27A.6419.
MCL 600.6443; MSA 27A.6443.
53 Mich App 530, 538; 220 NW2d 141 (1974).
Conservation Dep’t v Brown, 335 Mich 343; 55 NW2d 859 (1952). | [
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Per Curiam.
Bradford S. VanDeventer brought an action against Michigan National Bank (mnb) seeking to enjoin mnb from cashing his annuity. He previously assigned the annuity to mnb as security for a line of credit which mnb extended to R&R Telecom, Inc. (r&r). The lower court granted VanDeventer’s request for a preliminary injunction prohibiting mnb from cashing his annuity until his liability to mnb was determined. The court later permanently enjoined mnb from cashing the annuity. Mnb appeals as of right.
Mnb brought an action to collect damages from r&r, VanDeventer and David R. Layton based on a final judgment from a Florida action. Mnb alleged that VanDeventer and Layton were obligated to pay debts owed by r&r to mnb in accordance with their personal guaranties. The lower court granted summary disposition in favor of VanDeventer, Layton and r&r on the grounds of res judicata and collateral estoppel. Mnb appeals as of right. Mnb’s appeals were consolidated. Mnb claims that the lower court erred by entering the injunctions and by granting summary disposition. We agree and reverse accordingly.
Mnb extended r&r a $175,000 line of credit which was evidenced by a business loan agreement, security agreement and promissory note. VanDeventer signed these documents as r&r’s president. Layton signed them as its treasurer. In accordance with the business loan agreement, VanDeventer and Layton each signed a $100,000 personal guaranty as security for mnb’s loans to r&r. VanDeventer assigned an annuity with a principal amount of $50,000 to mnb as security for his guaranty. Both guaranties guaranteed mnb "full and prompt payment of all sums, moneys, notes, bills, loans or other indebtedness” due or payable to mnb by r&r. Both guaranties further provided:
The Bank may proceed directly against the undersigned, in case the customer defaults in the payments of any sum due or payable from the customer, without resort to any other person or to the assets of the customer, or other security held by the Bank, but said proceedings against the undersigned shall not in any sense release such other person, assets, or security held by the Bank. The undersigned hereby waives all notices hereunder, demand, presentation, any and all notices of protest, default, or non-payment and consents to any and all extensions or renewals made for or on account of any loan, note, bills or other indebtedness due from the customer to the Bank without releasing or discharging the undersigned in any way hereunder.
R&r relocated its business operations to Florida and apparently defaulted on its loan payments to mnb. Mnb filed suit against r&r in Florida and obtained a judgment of replevin as to all of r&r’s assets. The judgment was not a final judgment. Mnb advised VanDeventer that it intended to cash his annuity. VanDeventer filed a complaint in which he contested his liability to mnb and sought to enjoin mnb from cashing his annuity unless and until his liability to mnb was fixed and settled by a final judgment. The lower court entered a temporary restraining order preventing mnb from cashing the annuity. The lower court granted Layton’s motion to intervene.
At a show cause hearing, VanDeventer presented expert testimony that his annuity could not be replaced because of changes in the tax laws and that there would be no way to calculate money damages if mnb improperly cashed the annuity. The lower court issued an opinion and order which granted VanDeventer’s request for a preliminary injunction preventing mnb from cashing his annuity until his liability to mnb was determined. The court reasoned that the annuity was unique and that it was impossible to calculate the potential damage to VanDeventer if the annuity were improperly cashed.
At proceedings held on October 17 and 18, 1985, mnb and VanDeventer presented conflicting testimony about whether VanDeventer’s damages could be calculated if mnb improperly cashed his annuity. Mnb also argued and presented evidence that VanDeventer was not entitled to injunctive relief because r&r owed mnb $64,344.96 plus interest and costs. The lower court refused to consider the liability issue.
On December 3, 1985, the lower court issued an opinion and order stating that the preliminary injunction should continue because VanDeventer’s annuity was unique and he would be irreparably harmed if it were cashed. On November 26, 1986, VanDeventer moved for entry of final judgment. Mnb filed a response which objected to the entry of final judgment on several grounds and informed the court that a judgment had been entered against r&r in Florida. On December 23, 1986, mnb obtained a final judgment of $106,655.95 against r&r in Florida.
On January 7, 1987, the lower court entered a judgment permanently enjoining mnb from cashing VanDeventer’s annuity. Mnb moved to set aside the judgment and for reconsideration. The lower court denied these motions.
On May 12, 1987, mnb filed a complaint against VanDeventer, Layton and r&r seeking to recover damages based on the $106,655.95 Florida judgment and VanDeventer and Layton’s personal guaranties. The lower court issued an opinion and order granting VanDeventer, Layton and r&r’s motion for summary disposition on the bases of res judicata and collateral estoppel. The court found that mnb failed to properly plead and prove its claims in the first action.
We first consider whether the lower court erred by granting injunctive relief.
We review equity cases de novo, but will not reverse a trial court’s decision unless that court’s findings are clearly erroneous or we are convinced that we would have reached a different result if we had occupied the trial court’s position. Vergote v K mart Corp (After Remand), 158 Mich App 96, 103; 404 NW2d 711 (1987); Calvary Presbyterian Church v Presbytery of Lake Huron of the United Presbyterian Church in the United States of America, 148 Mich App 105, 109-110; 384 NW2d 92 (1986), lv den 425 Mich 863 (1986). The grant or denial of a preliminary injunction is within the sound discretion of the trial court. Bratton v DAIIE, 120 Mich App 73, 79; 327 NW2d 396 (1982). Injunctive relief is an extraordinary remedy which issues only when justice requires, there is no adequate remedy at law and there is real and imminent danger of irreparable injury. Dafter Twp v Reid, 159 Mich App 149, 163; 406 NW2d 255 (1987), lv den 429 Mich 880 (1987); Wexford Co Prosecutor v Pranger, 83 Mich App 197, 205; 268 NW2d 344 (1978).
VanDeventer voluntarily assigned the annuity to mnb as security for loans which mnb made to r&r. R&r defaulted on those loans. VanDeventer then tried to avoid his obligation by claiming that the annuity was unique and irreplaceable. VanDeventer knew or should have known that the annuity was irreplaceable when he assigned it to mnb. Further, mnb offered to defer cashing the annuity if VanDeventer pledged a promissory note as additional collateral and assigned the note’s monthly payments to mnb to reduce r&r’s indebtedness. The lower court erred by focusing only on the irreplaceable nature of VanDeventer’s annuity. VanDeventer was not entitled to injunctive relief.
VanDeventer’s complaint requested that mnb be enjoined from cashing his annuity unless and until his liability to mnb was fixed and settled by a court of competent jurisdiction. At the October 17 and 18, 1985, proceedings, mnb presented evidence that r&r owed it $64,344.96 plus interest and costs. On December 23, 1986, mnb obtained a final judgment of $106,655.95 against r&r in Florida. In its response to VanDeventer’s motion for entry of final judgment, mnb informed the lower court that a judgment had been entered against r&r in Florida. The lower court erred by permanently enjoining mnb from cashing VanDeventer’s annuity.
We turn to the issue of whether the lower court erred in granting summary disposition in favor of VanDeventer, Layton and r&r on the grounds of res judicata and collateral estoppel.
Collateral estoppel bars the relitigation of issues previously decided when such issues are raised in a subsequent suit by the same parties based on a different cause of action. In order for collateral estoppel to apply, the same ultimate issues underlying the first action must be involved in the second action, and the parties must have had a full opportunity to litigate the ultimate issues in the first action. Knoblauch v Kenyon, 163 Mich App 712, 716; 415 NW2d 286 (1987). Collateral estoppel conclusively bars only issues "actually litigated” in the first action. A question has not been actually litigated until put into issue by the pleadings, submitted to the trier of fact for a determination, and thereafter determined. Cogan v Cogan, 149 Mich App 375, 379; 385 NW2d 793 (1986).
The first action concerned VanDeventer’s request for injunctive relief. The second action concerned VanDeventer and Layton’s liability to mnb. The lower court did not decide this issue in the first action. Therefore, collateral estoppel does not apply.
The res judicata doctrine provides that, where two parties have fully litigated a particular claim and a final judgment has resulted, the claim may not be relitigated by either party. DeCare v American Fidelity Fire Ins Co, 139 Mich App 69, 77; 360 NW2d 872 (1984), lv den 422 Mich 933 (1985). There are three prerequisites to the application of the res judicata doctrine: (1) there must have been a prior decision on the merits; (2) the issues must have been resolved in the first action, either because they were actually litigated or because they might have been presented in the first action; and (3) both actions must be between the same parties or their privies. Sloan v Madison Heights, 425 Mich 288, 295; 389 NW2d 418 (1986); DeCare, supra, p 77.
Michigan courts apply the res judicata doctrine broadly so as to bar claims that were actually litigated as well as claims arising out of the same transaction which a plaintiff could have brought, but did not. Gose v Monroe Auto Equipment Co, 409 Mich 147, 160; 294 NW2d 165 (1980); Michigan Oil Co v Dep’t of Natural Resources, 148 Mich App 745, 753; 384 NW2d 777 (1985).
"In the application of the doctrine of res judicata, if it is doubtful whether a second action is for the same cause of action as the first, the test generally applied is to consider the identity of facts essential to their maintenance, or whether the same evidence would sustain both. If the same facts or evidence would sustain both, the two actions are considered the same within the rule that the judgment in the former is a bar to the subsequent action. If, however, the two actions rest upon different states of facts, or if different proofs would be required to sustain the two actions, a judgment in one is no bar to the maintenance of the other.” [York v Wayne Co Sheriff, 157 Mich App 417, 423; 403 NW2d 152 (1987), lv den 428 Mich 907 (1987), quoting Detroit v Nortown Theatre, Inc, 116 Mich App 386, 393; 323 NW2d 411 (1982), lv den 418 Mich 875 (1983).]
Different proofs would be required to sustain mnb’s action to collect damages than would have been required to properly sustain VanDeventer’s action for injunctive relief. Although mnb attempted to assert VanDeventer’s liability to it as a defense in the first action, the lower court refused to consider this issue. The lower court ultimately granted relief beyond that which VanDeventer requested by permanently enjoining mnb from cashing his annuity regardless of his liability to MNB.
The lower court erred by enjoining mnb from cashing VanDeventer’s annuity. Neither collateral estoppel nor res judicata bars the maintenance of mnb’s action to collect damages based on the Florida judgment and VanDeventer and Layton’s personal guaranties.
Reversed. | [
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Per Curiam.
Respondent, Gerald Swantek, appeals as of right from a jury verdict finding that he used undue influence and fraud to transfer monies from the account of decedent, Richard Swantek, into a joint account of respondent and decedent. We affirm the jury’s verdict.
Petitioner, the personal representative of the estate of Richard Swantek, appeals as of right from the trial judge’s denial of petitioner’s motion for prepetition interest and motion for exemplary damages in the amount of petitioner’s attorney fees. We affirm the trial court’s denial of these motions but remand the case for imposition of a constructive trust on the monies respondent removed from decedent’s bank accounts.
The personal representative filed a petition for determination of ownership of monies from decedent’s individual bank account and the time deposit certificate which respondent withdrew during the two weeks before decedent’s death. Decedent’s individual bank account totaled $44,616.42, and he owned time deposit certificates amounting to $31,937.73. The trial court granted a directed verdict for respondent, and petitioner appealed. This Court reversed in In re Swantek Estate, unpublished opinion per curiam of the Court of Appeals, decided April 25, 1985 (Docket No. 73355). A jury trial was held, and respondent and petitioner appeal as of right.
Respondent, Gerald Swantek, was decedent, Richard Swantek’s, nephew. They jointly owned the house in which they lived, and also jointly owned a rental property. Each had a personal bank account and before decedent became ill, decedent did his own banking. Decedent and Gerald had a joint bank account for the proceeds from their rental property. At trial, Gerald admitted that he had talked to decedent about making a will, but that decedent had refused. Decedent’s brother testified that Gerald wanted the will to be in his favor. Decedent’s brothers and sisters testified that respondent and decedent were not emotionally close and that decedent resented Gerald for not paying his own expenses. Gerald testified that they were the best of friends.
Decedent became ill and entered the hospital on July 25, 1980. After undergoing exploratory surgery on August 1, 1980, decedent was diagnosed as having metastatic carcinoma. Decedent’s brothers and sisters and decedent’s doctor testified that,, after his exploratory surgery, decedent was weak and unable to manage his own affairs. Decedent never left the hospital before his death on August 24, 1980.
Before entering the hospital, decedent endorsed three paychecks from Chrysler Corporation to his individual bank account and gave them to Gerald to deposit for him. Gerald admitted that he changed the account numbers on the checks and deposited them into their joint account.
While in the hospital, Gerald took his attorney to see decedent, who refused again to make a will. On August 11, 1980, thirteen days before decedent’s death, Gerald got his uncle to sign a change of ownership form for the time certificate of de posit and a bank withdrawal slip for his savings account. Gerald admitted that the bank employee who witnessed decedent’s signature on the change of ownership form did not see decedent sign the form. With those documents, Gerald withdrew all of the funds in decedent’s individual savings account and deposited them in a new joint account bearing Gerald’s and decedent’s names. When the time certificate matured on August 21, 1980, three days before decedent’s death, Gerald redeemed the certificate and deposited it in the new joint savings account. A short time later, Gerald withdrew all of the funds in the new joint account and placed them in an account owned solely by himself. None of decedent’s five surviving brothers and sisters knew about these transactions at the time.
Petitioner claimed, and the jury found, that the transfers of the decedent’s bank account and time certificate of deposit into a joint account in the name of respondent and decedent were the product of undue influence.
To establish undue influence it must be shown that the grantor was subjected to threats, misrepresentation, undue flattery, fraud, or physical or moral coercion sufficient to overpower volition, destroy free agency and impel the grantor to act against his inclination and free will. Motive, opportunity, or even ability to control, in the absence of affirmative evidence that it was exercised, are not sufficient. [Kar v Hogan, 399 Mich 529, 537; 251 NW2d 77 (1976).]
Respondent claims on appeal that there was insufficient evidence of undue influence because there was no evidence of a confidential or fiduciary relationship between respondent and decedent. We disagree.
The existence of a confidential relationship is a question of fact. Taylor v Klahm, 40 Mich App 255, 264; 198 NW2d 715 (1972). A confidential relationship exists when a person enfeebled by poor health relies on another to conduct banking or other financial transactions. Van’t Hof v Jemison, 291 Mich 385, 393-394; 289 NW2d 186 (1939); First National Bank & Trust Co of Marquette v Albert, 66 Mich App 252, 261; 238 NW2d 827 (1975).
The evidence clearly showed that decedent was ill when he entered the hospital and became very weak before he died. Just before he entered the hospital, decedent entrusted respondent with checks and asked that they be deposited into decedent’s individual account. Respondent deposited the checks in their joint account instead. From this evidence, the jury could properly infer that a confidential relationship existed between decedent and respondent. Van’t Hof, supra; Marquette, supra.
There was ample evidence from which the jury could find that respondent obtained ownership of decedent’s bank account and decedent’s time certificate of deposit by undue influence. The evidence showed that decedent wished to keep a separate individual account and that in the last two weeks of his life he was very weak. Decedent repeatedly refused to make a will in respondent’s favor. The jury could infer from the evidence that respondent obtained decedent’s signature on the withdrawal slip and the change of ownership form through some misrepresentation or coercion. The finding of undue influence is affirmed. See Kar, supra; In re Conant Estate, 130 Mich App 493, 497; 343 NW2d 593 (1983).
Respondent next claims that there was insufficient evidence of fraud to support the jury’s verdict. We disagree. Claims for fraudulent misrepre sentation require a showing that (1) the respondent made a material representation, (2) it was false, (3) the respondent knew it was false when made, or made it recklessly, without knowledge of its truth and as a positive assertion, (4) it was made with the intention to induce reliance by the decedent, (5) the decedent acted in reliance upon it, and (6) the decedent thereby suffered injury. Temborius v Slatkin, 157 Mich App 587, 597; 403 NW2d 821 (1986).
Respondent admitted disobeying decedent’s instructions about depositing the Chrysler payroll checks. The jury could infer from this evidence that respondent misrepresented to decedent that he would follow decedent’s wishes about his banking affairs. From the evidence, the jury could also infer that respondent misrepresented his intentions or the nature of the documents when respondent obtained decedent’s signature on the withdrawal slip and the change of ownership form.
Third, respondent claims that the trial court erred in denying respondent’s motion for judgment notwithstanding the verdict because the jury’s verdict was against the great weight of the evidence. MCR 2.610, 2.611. A court should grant a judgment notwithstanding the verdict only where there is insufficient evidence, as a matter of law, to make an issue for the jury. Murphy v Muskegon Co, 162 Mich App 609, 616; 413 NW2d 73 (1987). We hold that the jury’s verdict was not against the great weight of the evidence, and that the trial court did not err in denying respondent’s motion.
Fourth, respondent claims that the jury instructions on the presumption of undue influence were improper and require reversal. We disagree. Respondent stated at trial that he was satisfied with the instructions as given. Failure to object to instructions at trial waives any error, unless fail ure to review the claim would result in manifest injustice. Green v Evans, 156 Mich App 145, 158; 401 NW2d 250 (1985).
The trial court instructed the jury based on In re Wood Estate, 374 Mich 278; 132 NW2d 35 (1965). The Supreme Court modified the holding in Wood Estate in Widmayer v Leonard, 422 Mich 280; 373 NW2d 538 (1985). In Widmayer, the Supreme Court held:
[IJnsofar as Wood appears to hold that the trier of fact must be instructed as to the existence of the presumption and allowed to make the necessary inference (even in the face of rebutting evidence), it is no longer controlling precedent. We are persuaded that instructions should be phrased entirely in terms of underlying facts and burden of proof. That is, if the jury finds a basic fact, they must also find the presumed fact unless persuaded by the evidence that its nonexistence is more probable than its existence. [Widmayer, supra, pp 288-289.]
We are persuaded that the court’s instructions in this case did not deny respondent a fair trial. The trial court here did not instruct the jury that a mandatory presumption of undue influence arose from evidence of the existence of a confidential relationship. The trial court told the jury that, if it found that a confidential relationship existed, then it "might” presume undue influence. The trial court then instructed the jury that it must also consider the evidence tending to show that respondent did not unduly influence the decedent. These instructions were not inconsistent with Widmayer, and we find no error.
Petitioner raises two claims on appeal. First, petitioner claims that the trial court erred by denying petitioner prepetition interest on the money fraudulently withheld from the estate. We affirm the trial court’s denial of prepetition interest because there is no statutory authority for such an award. We remand the case, however, to the trial court for imposition of a constructive trust. MCR 7.216(A)(7).
Constructive trust is an equitable remedy which the court may impose where the facts justify it. It is not necessary that petitioner seek that relief. See Bogert, Trusts & Trustees (2d ed), Constructive Trusts, § 472, pp 33-35
Constructive trusts are creatures of equity and their imposition makes the holder of the legal title the trustee for the benefit of another who in good conscience is entitled to the beneficial interest. They are distinguished from express and resulting trusts in that they do not arise by virtue of agreement or intention, but by operation of law. [Arndt v Vos, 83 Mich App 484, 487; 268 NW2d 693 (1978).]
See also Kent v Klein, 352 Mich 652; 91 NW2d 11 (1958); Grasman v Jelsema, 70 Mich App 745, 752; 246 NW2d 322 (1976); Cerling v Hedstrom, 51 Mich App 338, 343-344; 214 NW2d 904 (1974); Chapman v Chapman, 31 Mich App 576, 579-580; 188 NW2d 21 (1971).
Constructive trust is the appropriate remedy to prevent unjust enrichment of respondent in this case. Irvin v Irvin, 93 Mich App 770, 773; 286 NW2d 920 (1979); Grasman, supra, p 752. In this case, respondent shall be deemed to have been holding the monies from the bank account and the time certificate of deposit in trust for decedent and his estate from the time respondent withdrew those funds from decedent’s individual account and changed the title of ownership. Under a constructive trust, equity can follow the assets upon which the trust is based into whatever form they may be converted. Robair v Dahl, 80 Mich App 458, 461-462; 264 NW2d 27 (1978). The estate is entitled to any interest earned on the money after respondent withdrew the funds from the time deposit and decedent’s individual bank account.
Petitioner’s second claim is that the trial court erred in denying his motions for an award of exemplary damages in the amount of petitioner’s attorney fees. Generally, attorney fees may not be awarded as damages unless authorized by statute or court rule. Baumgardner v Balmer, 157 Mich App 159, 160; 403 NW2d 525 (1987). Petitioner has not cited any authority for awarding exemplary damages in this case. A statement of position without supporting authority is insufficient to preserve a claim for appeal because it is not up to this Court to discover and then to rationalize the basis of a party’s claim. People v U S Currency, 158 Mich App 126, 130; 404 NW2d 634 (1986). We affirm the trial court’s denial of petitioner’s motion for attorney fees in this case.
The jury’s verdict is affirmed. The trial court’s denial of petitioner’s motions is also affirmed. We remand for imposition of a constructive trust on the monies respondent removed from decedent’s bank accounts. | [
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Kelly, P.J.
Pursuant to a plea agreement, defendant pled guilty to armed robbery, MCL 750.529; MSA 28.797. The agreement provided that a charge of possession of a firearm during the commission of a felony would be dismissed and that the recommended sentence would be IVi to 15 years; however, if a more lenient sentence was imposed, the prosecutor could withdraw from the agreement. After ascertaining that defendant understood the consequences of tendering a guilty plea and after a factual basis for the crime was established, the trial court accepted defendant’s plea and defendant was convicted of armed robbery. Defendant was subsequently sentenced to IV2 to 15 years imprisonment.
1
Defendant’s first issue on appeal is that he was denied his right to allocution at his sentencing hearing. The colloquy that took place at the September 15, 1986, sentencing hearing was, in pertinent part, as follows:
The Court: Mr. Lowe is here now.
Mr. Lowe is charged with the offense of robbery armed. Is there a sentence agreement in this case?
Are you representing Mr. Lowe?
Mr. Churikian: Yes, your Honor.
The Court: I’ve read the presentence report and I’m sure you have also and discussed it with your client?
Mr. Churikian: That’s correct, your Honor. For the record, Samuel Churikian appearing on behalf of Mr. Lowe.
The only correction we would like to make is where it refers to my client’s dependency on habituates [sic]; that his only weakness as to substances is alcohol.
Your Honor, my client has a letter for you. Do you want him to read it out loud?
The Court: I -will read the letter.
(Court reads letter.)
The Court: Thank you very much. I appreciate your thoughts.
You do have a sentence agreement, and the guidelines in this case are 72 to 120 months. That’s six (6) to ten (10) years. The sentence agreement falls within those guidelines.
It is your request that I adopt that sentence agreement?
Mr. Churikian: Yes, your Honor.
The Court: Your client concurs in that?
The Defendant: Yes.
The Court: Anything further?
Mr. Scallen: No, your Honor.
Mr. Churikian: No, your Honor.
Defendant was then sentenced to 7 Vi to 15 years imprisonment.
MCR 6.101(G)(2) provides that a defendant, defense counsel, and the prosecutor must be given "a reasonable opportunity to advise the court on the record of any circumstances that they believe the court should consider in imposing sentence . . . .”
Referring to GCR 1963, 785.8(2), now MCR 6.101(G)(2), the Supreme Court in People v Berry, 409 Mich 774, 781; 298 NW2d 434 (1980), stated:
The rule requires strict compliance and should be understood in all cases to require the trial court to inquire specifically of the defendant separately whether he or she wishes to address the court before the sentence is imposed. Ordinarily the inquiry should come immediately before the sentence is pronounced and after the trial court has made such remarks as it deems appropriate concerning the offense involved, the presentence report, the defendant’s personal history, the needs of the community, and any other subject.
The issue boils down to whether the trial court’s inquiry of "Anything further?” satisfies the Berry requirement that the trial court "inquire specifically of the defendant separately whether he or she wishes to address the court before the sentence is imposed.” We think not. The question posed by the trial court can be seen as a general statement made to either the prosecutor, the defense counsel, or defendant. Although an argument could be made that defendant made his thoughts known to the sentencing court through the letter he gave to the court, the court was obligated, despite the sentence agreement (see People v Berry, supra), to specifically inquire, on the record, separately of defendant whether he wished to address the court. Our review of the transcript does not reveal such an inquiry.
In People v Coles, 417 Mich 523, 532; 339 NW2d 440 (1983), the Supreme Court stated that "[d]efendants are also guaranteed the right of allocution prior to being sentenced and must be resentenced if this right is violated.” Since we have concluded that defendant was not properly afforded his right to allocution, this case is remanded for resentencing.
n
Defendant also raises three other sentencing issues. First, defendant contends the trial court erred in permitting a sentence agreement that would allow the prosecution to withdraw its approval of the agreement if defendant was not given at least a sentence of lA to 15 years. Defendant argues that with this agreement the prosecutor could, in effect, withdraw the plea agreement if the sentence was too lenient.
In People v Schirle, 105 Mich App 381, 384; 306 NW2d 520 (1981), this Court stated:
The authority to pronounce sentence is within the exclusive province of the judiciary. Neither the prosecution nor defense, separately or in combination, can bind the trial court to a sentence agreement. MCL 769.1; MSA 28.1072, People v Hagewood, 88 Mich App 35, 38; 276 NW2d 585 (1979), People v Mathis, 92 Mich App 670, 675; 285 NW2d 414 (1979). Where the prosecution recommends the imposition of a particular sentence, however, if the trial court believes it cannot go along with the recommendation, defendant must be given an opportunity to withdraw his plea.
Here, the trial court was delivered a plea bargain that would have allowed the prosecution to nix the agreement if defendant had not received a prison term of at least 7 Vi to 15 years. Relying on People v Killebrew, 416 Mich 189; 330 NW2d 834 (1982), defendant argues that this type of sentence agreement circumvents and violates the rules regarding plea agreements and specific sentence recommendations. In Killebrew, the Supreme Court reasoned that, despite the fact that the prosecution merely made recommendations for a defendant’s sentence, the reality was that defendants routinely relied on the prosecutor’s recommendation and the prosecutor’s ability to secure the sentence when a plea was offered. The Killebrew Court realized that "[t]o most defendants, the distinction between a sentence agreement and a sentence recommendation is little more than a variation in nomenclature.” Id. at 209. The Court then concluded that a "full understanding of the consequences of a plea” was impossible where the defendant, thinking that he had negotiated for a specific sentence, offers his plea and is bound thereby, but the sentencing court remains free to impose any sentence within the statutory range. Id. at 209. Resolving this dilemma in the context of guilty pleas, the Supreme Court, although noting that the Federal Rules of Criminal Procedure offered no such relief, stated: "Our notion of fairness requires the contrary result.” Id. at 210, n 10.
Similar considerations are not required when the prosecution’s understanding of a plea agreement is considered. Prosecutors are well aware that they may simply make recommendations with regard to sentences and that sentencing judges retain exclusive authority with regard to sentencing.
Clearly, the sentencing court here realized and stated that it was not bound by the sentence recommendation. It nonetheless reached that same result. It certainly had that discretion. Defense counsel stated at oral argument that defendant did not move and does not wish to withdraw his plea. Therefore, with regard to the sentence, standing alone, we find no error in following the recommendation. We do not decide here what the consequences would have been if the trial court had, in the exercise of its sentencing authority, given defendant a more lenient sentence. Defendant’s plea had already been accepted. Would the prosecutor then be forced to appeal defendant’s conviction and argue that defendant’s plea should be set aside? That defendant should face a full trial and posssibly a greater sentence? We leave that question for another panel when properly posited.
hi
Defendant next argues that the sentencing guidelines were not properly scored. Since we have already ordered a remand for resentencing, any challenge to the scoring should be raised at the subsequent hearing. Defendant also challenges the effectiveness of defense counsel at sentencing. Defendant contends that counsel should have objected to the scoring and that the failure to object was ineffective assistance of counsel. However, since defendant is getting his desired remedy, remand for resentencing, we do not find it necessary to reach this claim.
Remanded for resentencing. | [
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C. W. Simon, Jr., J.
Following a bench trial, defendant was convicted of possession of cocaine in an amount of 50 grams or more, but less than 225 grams, MCL 333.7403(2)(a)(iii); MSA 14.15(7403)(2)(a)(iii). He was sentenced to ten to twenty years’ imprisonment. Defendant appeals as of right, seeking resentencing and challenging the admissibility of evidence seized and statements he made during the execution of a search warrant at his home on August 15, 1986. We affirm.
Defendant first claims that his statements on where the cocaine was located in his home should have been suppressed as the "fruit of the poisonous tree” stemming from his illegal arrest during the execution of the search warrant. Defendant raised this issue in a pretrial motion to suppress the statements, and the parties agreed that the trial court could rule on the motion as an evidentiary objection during the course of the bench trial. The court found that defendant was lawfully detained, and not arrested, at the time of the search, and we can find no clear error in this finding. See People v Toodle, 155 Mich App 539, 542-543; 400 NW2d 670 (1986).
In Michigan v Summers, 452 US 692, 705; 101 S Ct 2587; 69 L Ed 2d 340 (1981), the United States Supreme Court held that "a warrant to search for contraband founded on probable cause implicitly carries with it the limited authority to detain the occupants of the premises while a proper search is conducted.”
Here, defendant was the first of five individuals at his home with whom the police came in contact during the execution of the warrant. His detention and handcuffing occurred at a time when the police were attempting to gain control over the area to be searched. According to Officer Patricia Goulah, she took control of defendant outside the house near the back door while other officers went inside. After defendant assisted her in chaining up three dogs in the yard, Officer Goulah handcuffed defendant mainly for safety reasons and because she heard what sounded like a lot of people running inside the house. Officer Goulah then took defendant inside the house where the officer in charge, Corporal Hohl, advised defendant of his Miranda rights and explained the search warrant to him. Afterwards, defendant showed Corporal Hohl where the cocaine was located.
This evidentiary record supports the trial court’s finding that defendant was detained but not arrested. We conclude that Officer Goulah’s handcuffing of defendant was a reasonable, limited intrusion of his liberty under the circumstances then present. The search for narcotics is the kind of transaction which may give rise to sudden violence, and the minimization of risk of harm to both the police and the occupants by exercising unquestionable command over the situation is a legitimate interest which must be considered in determining whether the detention was justified. 452 US 702. At trial, Officer Goulah articulated sufficient facts to justify her safety concern. Once inside the house, the fact that defendant was then advised of his Miranda rights by Corporal Hohl did not necessarily mean that he was under arrest. See People v Hill, 429 Mich 382, 394; 415 NW2d 193 (1987) (discussing the focus test applied by some panels of this Court to the issue of whether a Miranda warning was required at the time of the search in this case). To the contrary, the testimony introduced prior to the court’s ruling indicated that Corporal Hohl sufficiently informed defendant that whether or not he would be arrested depended on the result of the search.
Since we affirm the trial court’s finding that defendant was not arrested, it follows that we must reject defendant’s argument that his statements and other evidence seized were inadmissible as the "fruit of the poisonous tree” stemming from an illegal arrest.
Defendant also claims that the evidence of the items seized should have been suppressed because the warrant was overly broad. We disagree. Under both federal constitutional law and Michigan search and seizure law, the purpose of the particularization requirement in the description of items to be seized is to provide reasonable guidance to the executing officers and to prevent their exercise of undirected discretion in determining what is subject to seizure. MCL 780.654; MSA 28.1259(4); People v Taylor, 93 Mich App 292; 287 NW2d 210 (1979), lv den 408 Mich 928 (1980); United States v LeBron, 729 F2d 533, 536 (CA 8, 1984). The degree of specificity required depends on the circumstances and types of items involved. United States v Kail, 804 F2d 441, 445 (CA 8, 1986).
We have considered each of defendant’s objections to the descriptions in the search warrant and conclude that the warrant, on its face, was not overly broad. The descriptions "All money and property acquired through the traffiking [sic] of narcotics” and "Ledgers, records or paperwork showing traffiking [sic] in narcotics” were sufficiently particular to pass constitutional muster since the executing officers’ discretion in determining what was subject to seizure was limited to items related to drug trafficking. See LeBron, supra, p 538 (noting that a reference in a warrant to the specific illegal activity gives a substantial limitation to the executing officers’ discretion); United States v Savoca, 761 F2d 292 (CA 6, 1985), cert den 474 US 852 (1985) (warrant commanding seizure of "US Currency” not overly broad where there is probable cause to support that breadth). The warrant here was supported by an affidavit setting forth probable cause to believe that defendant’s house was being used for illegal drug trafficking and that defendant was involved in this activity. Testing the description in the warrant of the items to be seized, as we must, in a "commonsense and realistic manner,” United States v Gomez-Soto, 723 F2d 649, 653 (CA 9, 1984), cert den 466 US 977 (1984), it is clear that the officers’ discretion was limited to searching for items connected to that illegal activity.
Defendant’s objection to the description "Paperwork showing residency” is similarly without merit since the description provided a substantial limitation on the executing officers’ discretion. See United States v Honore, 450 F2d 31, 33 (CA 9, 1971), cert den 404 US 1048 (1972). Finally, we find that the description "All firearms” was not overly broad since specific facts were alleged in the affidavit indicating that the house was the site for drug trafficking, and it was further alleged that firearms are often kept by persons involved in drug use for protection and potential use during drug transactions. A general description, such as "weapons,” is not overly broad if probable cause exists to allow such breadth. Savoca, supra, p 298.
Defendant next contends that the seized evidence should have been suppressed because, it is claimed, the executing officers did not comply with the "knock and announce” statute, MCL 780.656; MSA 28.1259(6). Defendant did not raise this issue below and, thus, it is not properly preserved for appeal. People v Juarez, 158 Mich App 66, 71; 404 NW2d 222 (1987). In any event, the entry is lawful if there is substantial compliance with the requirements of the statute. People v Slater, 151 Mich App 432, 440; 390 NW2d 260 (1986), and see People v Charles Brown, 43 Mich App 74, 90; 204 NW2d 41 (1972). The testimony on the manner in which the executing officers entered defendant’s house after identifying themselves to defendant as he stood outside the back door demonstrates sufficient compliance with the statute, as applied to defendant’s rights.
Finally, we find no merit in defendant’s claim that he is entitled to resentencing. While it is true that a sentencing judge is not permitted to make an independent finding of defendant’s guilt on another charge, or to consider an offense of which defendant was found not guilty, and to use that as a basis for justifying a sentence, People v Glover, 154 Mich App 22, 45; 397 NW2d 199 (1986), lv den 430 Mich 867 (1988), the trial court here did not make an independent finding of defendant’s guilt. As noted by defendant on appeal, the trial court’s remarks were responsive to the argument made by defendant’s attorney at sentencing. Further, while the trial court did discuss drug sales, in the context of the factual record developed below the court did not say defendant made the sales. The record does not support defendant’s claim that the trial court considered an inappropriate factor to justify the sentence and, thus, he is not entitled to resentencing.
Affirmed.
Gribbs, J., concurred.
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694 (1966). | [
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Per Curiam:.
Following a four-day jury trial, defendant was convicted of armed robbery, MCL 750.529; MSA 28.798, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). On November 14, 1986, a judgment of sentence was entered imposing a term of imprisonment of twenty-five to fifty years for the armed robbery, with credit for 170 days served, and two years for the felony-firearm conviction, sentences to be consecutive. Defendant now appeals by leave granted. We reverse and remand for a new trial.
On March 9, 1986, a man entered the Woodland Oil Total Station in Mantón, Michigan, wearing sunglasses and a sweatshirt with the hood drawn around his face, pointed a gun at the station employee, Scott Weston, and ordered him to put all the paper money in a bag. The man pulled the telephone handset off of the telephone and left with approximately $800 in cash, some checks and the station’s bank bags.
Defendant’s friend, Jerry Cissne, testified that defendant had called him on the night of the robbery and told him to save the next day’s newspaper and that defendant left for Florida the day after the robbery. After returning from Florida defendant told him he robbed the gas station and took the phone off the wall.
Mr. Cissne informed the police of defendant’s involvement in the robbery and, pursuant to a search warrant, was fitted with a wireless transmitter, and was taken to see defendant where he was hospitalized for a stab wound received in an unrelated incident. During this visit Mr. Cissne elicited from defendant several incriminating statements. Defendant stated that he had wiped the station’s bank bags clean of fingerprints and had thrown them onto the highway. Defendant hid the gun he had used at his grandmother’s home and he was going to get rid of the clothing he had worn during the robbery. The tape of this conversation was played for the jury and a transcript was provided for them to read along while they listened to the tape.
Defendant took the stand and testified that Mr. Cissne had visited him the night of the robbery, offered him money and told him to dispose of two bank bags and a bag of clothes. He said he threw the bank bags out of the car window the next day along the highway. He explained his reluctance to come forward with this information before trial by referring to two previous robbery convictions.
Defendant seeks reversal on several grounds. He first claims that the trial court erred in denying his motion to suppress evidence of his two prior armed robbery convictions. The prior convictions were six and seven years old and they were for crimes similar to the one charged. The prosecutor argues that defendant was the first to raise his two prior convictions and therefore he cannot claim that error was committed when the court allowed the prosecutor to cross-examine him on these matters.
First it should be noted that after a prosecutor has been authorized to impeach a defendant with his prior convictions the defendant may as a strategic matter raise these convictions first during direct examination when the defendant controls the questioning in order to minimize their impact. Additionally, the correctness of a ruling under MRE 609 does not depend on whether other evidence also creates a "bad man” image.
In People v Allen, 429 Mich 558; 420 NW2d 499 (1988), the Michigan Supreme Court clarified the balancing test to be used to determine whether a witness-accused may be impeached with evidence of a prior conviction. The court is to determine whether this evidence is probative on the issue of veracity and whether its probative value outweighs its prejudicial effect. In determining the probative value the court is to consider only the age of the crime and whether the crime is indicative of veracity. In determining the prejudicial effect, the court is to consider the similarity of the prior crime to the charged offense and the possible effects on the decisional process if admitting the evidence causes the defendant not to testify.
In the instant case, the admission of the prior armed robbery convictions to impeach defendant fails to meet the standard set forth in Allen, supra. These crimes have little bearing on the issue of veracity as they were primarily assaultive in nature, see People v Wakeford, 418 Mich 95; 341 NW2d 68 (1983), and were six and seven years old at the time of trial. See Allen, supra at 611. The prejudicial effect of this evidence is enhanced by the similarity of the prior crimes to the crime charged. It should be noted that we believe the use of the prior convictions for impeachment was also defective under our earlier test enunciated in People v Crawford, 83 Mich App 35; 268 NW2d 275 (1978). Under both the Allen and Crawford tests, the trial court abused its discretion in denying defendant’s motion to suppress.
Defendant next claims that the trial court erred in failing to remove from his taped conversation with the informant all references to unrelated criminal activity. Defendant objected at trial to the use of large portions of the tape and transcript which indicated that he and Mr. Cissne had committed other crimes. The trial court did sustain the objection as to a small portion of the tape, but allowed other sections to be admitted.
The law clearly favors limiting the use of evidence of prior misconduct, charged or uncharged, to narrowly described circumstances. People v Der-Martzex, 390 Mich 410; 213 NW2d 97 (1973). In People v Golochowicz, 413 Mich 298; 319 NW2d 518 (1982), our Supreme Court enunciated four requirements necessary for the admission of prior misconduct. First, there must be substantial evidence that the defendant actually committed the misconduct. Second, the prior misconduct must tend to prove one of the statutory elements of the crime. Third, proof of the defendant’s motive, scheme, intent, plan, system, or absence of mistake or accident must be material to a determination of guilt. Finally, the trial court must weigh the probative value of the evidence against its prejudicial impact and exclude it if the latter predominates. Golochowicz, supra at 309.
The transcript of the tape of defendant’s conversation with Mr. Cissne reveals numerous references that could lead a listener to conclude that both men are bad people who have been engaged in criminal activities in the past. These references tend to divert the trier of fact from an objective determination of defendant’s guilt or innocence. DerMartzex, supra at 413. This evidence is more prejudicial than probative and thus should have been excluded. Also, in this armed robbery case, proof of defendant’s motive, scheme, intent, plan, system or absence of mistake or accident was not material to a determination of guilt. Applying the Golochowicz test to these facts, it was error to admit references to the prior bad acts of defendant and Mr. Cissne in the taped conversation.
Defendant further claims that the trial court abused its discretion in allowing the jury to have a transcript of the taped conversation between defendant and Mr. Cissne to read along while they listed to the tape. Defendant argues that the accuracy of the transcript was not established to any degree of certainty and that it only reflects the subjective impression of the police as to what was said. We agree.
There is no Michigan law directly on point, however, the matter has been considered by other jurisdictions. In United States v Robinson, 707 F2d 872 (CA 6, 1983), the Sixth Circuit Court of Appeals, citing United States v Slade, 200 US App DC 240; 627 F2d 293 (1980), cert den 449 US 1034; 101 S Ct 608; 66 L Ed 2d 495 (1980), set out, in order, the preferred procedures for ensuring the accuracy and fairness of such transcripts. The first method was by stipulation by the parties. The second method was for the trial court to make an independent determination before trial by checking the transcripts against the tape. The least preferred method was to present the jury with two transcripts, one containing the state’s version and the other defendant’s. The panel observed that, while this list was not exhaustive, each procedure entailed basic safeguards to ensure reliability. Robinson, supra at 876-877.
In Robinson, the trial court had given an instruction substantially similar, if somewhat more restrictive, to the instruction given by the trial court in the instant case. The sixth circuit reversed, even though the panel found the instruction adequate, because the transcripts had not been prepared in such a manner as to ensure their reliability.
In the instant case there was no • stipulation as to the accuracy of the transcript. It does not appear that the trial court made any determination as to its accuracy. Indeed, two versions of the transcript were prepared, reflecting the differing subjective impressions of the persons listening to the tape. Nor does it appear that the trial court ever listened to the tape until the time the jury heard it. Nor does it appear from the record that the person who prepared the transcription ever verified its accuracy in court.
The trial court should have taken steps to insure the accuracy of the transcript before it was shown to the jury. In order to guide courts in the future, this Court adopts prospectively the procedure set forth in Robinson, supra at pp 878-879:
We therefore reiterate our preference for using a transcript when the parties stipulate to its accuracy. But in the absence of a stipulation, we hold that the transcriber should verify that he or she has listened to the tape and accurately transcribed its content. The court should also make an independent determination of accuracy by reading the transcript against the tape. Where, as here, there are inaudible portions of the tape, the court should direct the deletion of the unreliable portion of the transcript. This, however, assumes that the court has predetermined that unintelligible portions of the tape do not render the whole recording untrustworthy. Finally, we find submission of two versions of the transcript prejudicial when the tape is significantly inaudible. Such a practice would undoubtedly inspire wholesale speculation by the parties and engender jury confusion. It would be entirely too difficult for the jury to read two separate transcripts while listening to the tape recording. Furthermore, this method is impractical in cases . . . where the defendant has asserted his Fifth Amendment right to remain silent.
Defendant also claims that the trial court erred in the following ways: it failed to suppress the search warrant used to monitor his conversation with Mr. Cissne although the only evidence of the informant’s credibility was his polygraph examination relating to a different matter, it found defendant’s taped statements to be voluntary and ad missible, and it improperly sentenced defendant in considering his possible involvement in other crimes of which he had not been prosecuted or convicted. As to these issues, we find no error.
Reversed.
This aspect of the Allen decision does not represent a "clear break” in Michigan jurisprudence, and so it is to be applied retroactively to all cases pending on direct appeal. Allen, supra at 609. | [
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Per Curiam.
The trial court granted defendant’s motion for summary disposition on plaintiffs claims for intentional infliction of emotional distress, negligent infliction of emotional distress, and breach of an implied covenant of good faith and fair dealing, pursuant to MCR 2.116(C)(8) and (10). The trial court also granted partial summary disposition for defendant on plaintiffs claim for ex emplary damages based on the breach of an employment contract. After a bench trial, the trial court granted judgment in favor of defendant on plaintiffs breach of employment contract claim. Plaintiff appeals as of right. We affirm.
Plaintiff was employed by defendant from September, 1964, until he resigned on December 10, 1984. At the time of his resignation, plaintiff was employed as the Assistant to the President for University Relations. On September 14, 1984, defendant had placed plaintiff on administrative leave. Plaintiff resigned when defendant demoted him and placed him on probation in December, 1984.
A personnel policy manual which included a grievance procedure for defendant’s administrative professional staff members was in effect from the time that plaintiff was placed on administrative leave until he resigned. Plaintiff alleged that the personnel policy manual provided that administrative professional employees could not be discharged except for just cause.
The fifth step in the grievance procedure was a review panel authorized to reach final binding decisions on grievances. The panel was comprised of five members: two selected by defendant; two selected by the Administrative Professional Association (apa), an association of administrative professional employees but not a collective bargaining group; and one selected by the four previously chosen panel members.
Plaintiff alleged that the Step v panel could not be impartial because it would be comprised of employees whose future promotions could be affected by their decisions. Plaintiff admitted at trial, however, that the panel could be impartial, depending on who the panel members were. Plaintiff also testified that he was a member of the apa committee which unanimously recommended that the panel be the final step in defendant’s procedure. Although plaintiff served as president of the apa, plaintiff never recommended changing the grievance procedure or the panel. In this case, plaintiff never submitted his dispute to the grievance procedure.
On appeal, plaintiff raises four issues. First, plaintiff claims that the trial court erred in ruling that plaintiff’s breach of employment contract claim was barred by his failure to exhaust defendant’s grievance procedure. We affirm.
Assuming, arguendo, that plaintiff had an employment contract which was only terminable for just cause, plaintiff’s claim is barred because he failed to use the grievance procedure. Employers may provide a procedure for resolution of disputes concerning the discharge of employees. The grievance procedure, set forth in the employee’s manual, was part of plaintiff’s contract of employment. A decision reached under the grievance procedure precludes submission to a jury of a wrongful discharge claim, subject only to limited judicial review. Toussaint v Blue Cross & Blue Shield of Michigan, 408 Mich 579, 624; 292 NW2d 880 (1980); Khalifa v Henry Ford Hospital, 156 Mich App 485, 494-495; 401 NW2d 884 (1986); Vander Toorn v Grand Rapids, 132 Mich App 590, 598-599; 348 NW2d 697 (1984), lv den 424 Mich 886 (1986).
A plaintiff may challenge the determination of the grievance process on procedural grounds. Renny v Port Huron Hospital, 427 Mich 415; 398 NW2d 327 (1986). In Renny, our Supreme Court identified the elements necessary for a fair adjudication in administrative and arbitration grievance proceedings. Renny, supra, pp 436-437.
In this case, a Step v panel was never established to hear plaintiff’s grievance. Thus, plaintiff is not claiming that this particular panel was not impartial. The record indicates that, if such a panel had been established, it could have resolved plaintiffs grievance in an acceptable manner. Plaintiff even admitted that impartial panels could be established through the member selection process in place.
Plaintiff argues that a Step v panel could not be impartial because it would be comprised of defendant’s employees whose future promotions could be affected by their decisions. We decline to rule that all grievance committees comprised of employees are inherently defective. We also note that plaintiff was a member of the apa committee which unanimously recommended that defendant replace its old grievance procedure with the five-part procedure, including the Step v panel. Plaintiff never recommended changing the grievance procedure, although he was president of the apa at one time. We affirm the trial court’s judgment that plaintiffs breach of employment contract claim is barred by his failure to use the grievance procedure.
Plaintiffs second claim is that the trial court erred in granting defendant’s motion for summary disposition on plaintiffs negligent evaluation claim. Plaintiff alleged that defendant breached its duty to exercise reasonable care when evaluating plaintiff by evaluating him in a subjective and unfair manner.
In Schipani v Ford Motor Co, 102 Mich App 606, 623-624; 302 NW2d 307 (1981), a panel of this Court recognized a cause of action for negligent performance of employee evaluations. No other Michigan court has recognized a negligent evaluation claim in the context of an employment contract. The Schipani decision has been criticized by other panels of this Court. See Struble v Lacks Industries, Inc, 157 Mich App 169; 403 NW2d 71 (1986), Hetes v Schefman & Miller Law Office, 152 Mich App 117; 393 NW2d 577 (1986), Brewster v Martin Marietta Aluminum Sales, Inc, 145 Mich App 641; 378 NW2d 558 (1985), and Haas v Montgomery Ward & Co, 812 F2d 1015 (CA 6, 1987). These Courts followed the rule that an action in tort will not arise from a breach of contract unless it would arise independently of the contract’s existence. See Hart v Ludwig, 347 Mich 559; 79 NW2d 895 (1956).
In this case, defendant would not have evaluated plaintiff if plaintiff did not have an employment contract. There could be no breach of duty to evaluate plaintiff distinct from the breach of contract, and plaintiff cannot maintain an independent tort action for negligent evaluation. Brewster, supra, p 668; Haas, supra, p 1017. We affirm the trial court’s grant of summary disposition on plaintiff’s negligent evaluation claim.
Plaintiff’s third claim is that this Court should recognize a claim for breach of an implied covenant of good faith and fair dealing. We decline to recognize such a cause of action, because such a radical departure from the common law and Michigan precedent should come only from the Supreme Court. Prussing v General Motors Corp, 403 Mich 366; 269 NW2d 181 (1978); Cockles v International Business Expositions, Inc, 159 Mich App 30, 37; 406 NW2d 465 (1987); Schwartz v Michigan Sugar Co, 106 Mich App 471, 481; 308 NW2d 459 (1981), lv den 414 Mich 870 (1982). We affirm the trial court’s grant of summary disposition for defendant on plaintiff’s implied covenant of good faith and fair dealing claim.
Finally, plaintiff claims that the trial court erred in granting defendant’s motion for summary disposition on plaintiffs claim of intentional infliction of emotional distress.
Damages for intentional infliction of emotional distress are not recoverable in a breach of employment contract action. Khalifa, supra, p 499. We also note that the tort of intentional infliction of emotional distress has not been formally adopted in Michigan. Roberts v Auto-Owners Ins Co, 422 Mich 594, 597; 374 NW2d 905 (1985). We afiirm the trial court’s grant of defendant’s motion for summary disposition on plaintiffs intentional infliction of emotional distress claim. MCR 2.116(C)(8).
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P. D. Houk, J.
Plaintiff, Rita Russell, appealed from three decisions made by either hearing referee Russell E. Bine or Charles C. Conklin. On September 30, 1985, the Workers’ Compensation Appeal Board affirmed all three decisions. Plain tiffs petition for leave to appeal to this Court was denied, as was her motion for reconsideration. Plaintiff applied for leave to the Supreme Court which, in lieu of granting leave, remanded the case to this Court for consideration as on leave granted. Russell v General Motors Corp, 428 Mich 879; 402 NW2d 483 (1987). We affirm the wcab’s decision.
The facts are not in dispute. On August 19, 1969, while employed by defendant, General Motors Corporation, plaintiff injured her neck and back while pulling at an automobile seat that was caught in her sewing machine. She went on sick leave from that date to January 25, 1971, and from February 8 to March 29, 1971. In May, 1971, plaintiff started to experience breathing difficulties and went on sick leaves from May 14, 1971, to March 7, 1972, and from August 3, 1972, to July 31, 1973. Her last day of work was August 22, 1973.
On July 30, 1979, the wcab ordered that workers’ compensation benefits be paid to plaintiff for her neck and arm orthopedic disability, but not for her pulmonary problems. Russell v General Motors Corp, 1979 WCABO 1940. Neither party appealed, and that decision became final on August 29,1979.
When defendant commenced payment of the benefits on October 5, 1979, it deducted the amount of sickness and accident and extended-disability insurance benefits that plaintiff had received either while on sick leave or after her final day of work. Plaintiff protested and petitioned for a Rule v penalty hearing. See MCL 418.801; MSA 17.237(801). Referee Bine fined defendant $350 for the seven-day delay in payment, but refused to order defendant to pay back the amount of benefits deducted.
On April 18, 1980, defendant sent plaintiff a letter in which it offered her favored work. Plaintiff never responded and defendant filed a petition to stop payment of benefits. A hearing was held before referee Conklin, who found that plaintiff had unreasonably refused to perform favored work and thereby granted defendant’s petition.
Five days after referee Conklin issued his decision, on April 13, 1981, defendant fired plaintiff pursuant to her union contract. On October 27, 1981, plaintiff presented herself to defendant, and asked to be permitted to do the favored work. Defendant refused, and plaintiff requested a second penalty hearing on the question whether workers’ compensation benefits should be resumed. At that hearing, referee Conklin found that defendant’s nonpayment of benefits did not constitute noncompliance with the prior award and refused to impose any penalties.
Plaintiff appealed the last three decisions to the wcab, which affirmed all three.
On appeal, plaintiff raises six issues. Plaintiff claims that her right to receive workers’ compensation benefits resumed either on April 13, 1981, when defendant fired her and, thereby, withdrew its offer of favored work, or, at the latest, in October, 1981, after defendant refused to employ her. We disagree; and, in doing so, we interpret Steward v Westran Corp, 130 Mich App 68; 343 NW2d 7 (1983), differently than did the panel in Hartsell v Richmond Lumber Co, 154 Mich App 523; 398 NW2d 456 (1986), lv den 426 Mich 886.
As stated in Steward, 130 Mich App at 70: "It is well-settled that an injured employee who unjustifiably refuses an offer of favored work forfeits his right to compensation benefits.” The Steward Court answered the question whether an unjustifi able refusal resulted in a permanent forfeiture of benefits by holding that, "[ujnder the circumstances of this case,” the employee’s right to benefits was merely suspended for the duration of the refusal. Steward, 130 Mich App at 72. The Hartsell majority interpreted Steward as meaning that the receipt of benefits was suspended only during the period of an employee’s unreasonable refusal. Hartsell, 154 Mich App at 534. Thus, the plaintiff in Hartsell was entitled to continuing disability compensation when defendant withdrew its offer of favored work by closing its plant. We reject the blanket rule of Hartsell, which bases its decision on one factor, namely the duration of the employee’s unreasonable refusal; instead we opt for a formula which evaluates many factors, including the reasonableness of the parties’ conduct.
Our approach agrees with that set out in the partial dissent in Hartsell, written by Mackenzie, P.J. (who was on the Steward panel). Judge Mackenzie interprets the favored work doctrine as requiring only that an employer keep open an offer for a reasonable time under all the circumstances. Hartsell, 154 Mich App at 534-535. The policies of mitigation and rehabilitation are not served by forcing a company to hold open a job offer indefinitely, as explained by Judge Mackenzie in Hartsell, and such an approach would promote unsound results. It must be remembered that it is the employee’s unreasonable refusal which triggers the initial forfeiture of benefits. There comes a point after which it is unreasonable to think that such employee might someday accept the offer that was originally spurned. It is at that point that a company should be permitted to withdraw its offer with no fear of disadvantage.
Since the wcab applied the correct legal test when determining whether to order the resump tion of benefits, our function as a reviewing court is extremely limited. The findings of fact of the wcab are conclusive in the absence of fraud and will not be disturbed if supported by competent evidence in the record. Bower v Whitehall Leather Co, 412 Mich 172, 197; 312 NW2d 640 (1981); MCL 418.861; MSA 17.237(861), MCL 418.861a; MSA 17.237(861a). As noted by the wcab, plaintiff attempted to return to work only after she unreasonably refused to perform, and the job became unavailable only because of her earlier rejection. It should also be noted that she was discharged pursuant to the terms of her contract. We find that the wcab did not err in refusing to order the resumption of benefits.
Plaintiff claims that error arose by reason of the deductions taken by defendant as reimbursement for the sickness and accident and extended-disability benefits paid to plaintiff. Plaintiff received compensation during her initial 1969-1971 sick leave. After her last day of work, she received extended-disability benefits from Metropolitan Life Insurance Company. She signed a reimbursement agreement for the sickness and accident benefits, but not for the extended-disability benefits.
Since the extended-disability benefits were provided by Metropolitan Life Insurance Company pursuant to its policy with defendant, they were benefits "caused to be paid” by defendant within the meaning of MCL 418.811; MSA 17.237(811). Therefore, they could be considered in fixing workers’ compensation benefits, and defendant was entitled to credit. Under this provision, a reimbursement agreement is not necessary.
Furthermore, it does not matter that the extended-disability benefits were for injuries which were not work-related. In Aetna Life Ins Co v Roose, 413 Mich 85; 318 NW2d 468 (1982), under MCL 418.821(2); MSA 17.237(821X2), an insurance company was found to be entitled to reimbursement from the employee to whom it had made sickness and accident payments. In the instant case, all but the first applications for sick leave were based on plaintiffs pulmonary problems, which were determined not to be work-related. We believe that the employer should be allowed to take a credit for the amounts paid to plaintiff, since extended-disability benefits serve the same purpose as sickness and accident benefits, namely, providing a way for an employee to make ends meet while a workers’ compensation claim is pending. We find no error.
Plaintiff next argues that the wcab erred in failing to order defendant to pay interest on all of the accrued workers’ compensation benefits, including those subtracted as a credit to defendant for the sickness and accident benefits and extended-disability benefits. Since plaintiff had been paid these alternative benefits which were later credited against the award, she had use of the money, and her argument fails. McCaslin v General Motors Corp, 133 Mich App 782, 788; 349 NW2d 544 (1984), lv den 419 Mich 945 (1984); see also Martin v General Motors Corp, 156 Mich App 557, 559-560; 402 NW2d 4 (1986), lv den 426 Mich 880 (1986). To the extent that Montanez v Chrysler Corp, 145 Mich App 551, 556-558; 378 NW2d 546 (1985), suggests that interest is payable on alternative benefits provided by a separate group insurer assignee, that language is dicta and cannot be relied on in the face of the McCaslin holding.
Next, plaintiff challenges the wcab finding that her refusal to perform the favored work was unreasonable. In making this finding, the wcab referred to the testimony of Dr. James Horvath, an orthopedic surgeon. Although Dr. Horvath’s testi mony did not cover plaintiff’s pulmonary problems, we find that there was competent evidence to support the wcab’s conclusion. The wcab clearly addressed and decided the issue when it summarized Dr. Horvath’s testimony that plaintiff was able, to perform the favored work.
Plaintiff’s argument that her due process rights were violated when defendant refused to pay workers’ compensation benefits prior to the final establishment of plaintiff’s physical capability also fails. Defendant’s internal system of payment did not involve any government action and, thus, neither the United States nor Michigan Constitutions were implicated. Edmond v Dep’t of Corrections (On Remand), 143 Mich App 527, 533; 373 NW2d 168 (1985).
Lastly, since defendant properly took as a credit the extended-disability benefits paid to plaintiff and paid the proper amount of interest on the net amount, it complied with the wcab order, and the wcab properly refused to impose any penalties. See Martin, 156 Mich App at 560 (since defendant was not obligated to pay interest, no penalty can be assessed for its failure to pay that interest).
The wcab decision is affirmed. | [
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Per Curiam.
Defendant appeals as of right from the trial court’s judgment of divorce awarding plaintiff partial attorney fees, alimony, and one-half of defendant’s pension. We affirm in part and reverse in part.
The parties married on June 5, 1958, and separated on September 3, 1984. The parties had four children, all of whom had reached the age of majority prior to the entry of the judgment of divorce.
Defendant was born on November 10, 1935. Before the marriage, defendant earned his bachelor of science degree in mechanical engineering at the University of Notre Dame. Defendant began working for Ford Motor Company in 1958. He earned his master of business administration degree from the University of Detroit (u of n) in 1963. Defendant earns in excess of $60,000 per year, including his bonus. Defendant also receives other fringe benefits, including medical insurance, life insurance, and a pension and participates in various stock purchase programs.
Plaintiff was born on March 11, 1936. Before the marriage, she earned a degree in education from u of d. Plaintiff also received a fellowship to pursue her master’s degree; however, the parties decided that plaintiff should give up the fellowship because it did not pay a salary. Plaintiff then accepted a position with the Detroit School District. Plaintiff gave up her position shortly after the marriage because she became pregnant.
In 1970, plaintiff began working as a teacher’s aide in the Ferndale adult education program. Plaintiff earned $4 per hour. The next year, plaintiff actually taught the class and earned $8 per hour. Thereafter, plaintiff claims that she was offered a full-time teaching position; however, she did not accept that position because defendant allegedly objected. Had plaintiff accepted the position, she might now be earning $39,000 per year as a tenured teacher. In 1977, however, plaintiff began working at u of d because the parties needed money for their children’s educations. Plaintiff earned $9,000 per year and received free tuition for herself and one of the parties’ children. Plaintiff earned her master’s degree in remedial reading. When plaintiff left her position in 1985, she was earning $10,000 per year. Plaintiff left her position on May 1, 1985, to join a business venture. Plaintiff was to earn $20,000 per year for teaching English to foreign businessmen. Plaintiff left this job after ten months when it appeared that no one was interested in the service to be offered.
Defendant testified that plaintiff drank heavily; however, he conceded that her problem has subsided since she began taking Antabuse in 1982. In 1981, the parties began having problems with their youngest child, Sheila, who was born on April 3, 1967. Plaintiff sought counseling with Maria Brane, a psychologist. Although plaintiff first consulted with Brane regarding her daughter, she later sought counseling for herself. Ultimately, it was determined that plaintiff suffered from depression. In fact, plaintiff’s depression was so severe that she was hospitalized in September, 1984, for five weeks and, again, in April, 1986, for three weeks. Plaintiff currently uses medication to control her depression and takes Antabuse.
Since she left her last position, plaintiff has applied for substitute teaching positions in three school districts; however, when asked to work by one of those districts, plaintiff became so nervous and depressed that she became ill and could not work. When plaintiff was called again, she did not report because there was a show cause hearing involving the present divorce case on that same day. A substitute teacher makes $45 per day.
After plaintiff’s April hospitalization, she was offered the chance to interview for the position of a remedial reading instructor. Plaintiff did not interview because her psychologist and Dr. Rhona B. Ahmad, a psychiatrist who treated plaintiff during her April hospitalization, felt that her depression was too severe and that, if she failed to obtain the job, she would become more depressed.
Plaintiff intended to continue her search for teaching employment or to seek other nonstressful work. Brane testified that plaintiff’s prognosis is guarded and that she is limited in her ability to work because she might require extensive absences due to her hospitalizations and lack of energy because of her depression. Brane believed that plaintiff’s depression was in part biological.
Dr. Paul Guerrero, who worked with Brane, testified that plaintiff’s prognosis was fair to good with treatment. He did not believe that plaintiff could handle a job unless it was nonstressful. Guerrero suggested that plaintiff do volunteer work instead.
Ahmad also testified that plaintiff’s prognosis was fair with continued treatment and that plaintiff would be employable with continued treatment. Ahmad believed that employment for plaintiff would be therapeutic, but Ahmad recognized that if plaintiff became severely depressed, she would require acute treatment either at her home or in the hospital.
The parties began to have marital problems shortly after the birth of their first child. They sought counseling for a time, but soon stopped. Plaintiff sought the divorce because defendant allegedly objected to her attempts to pursue activities outside the home throughout the marriage and because she could no longer tolerate defendant’s allegedly domineering attitude.
Plaintiff testified that her attorney charged $100 per hour. Plaintiff paid her attorney fees until February, 1986. Plaintiff estimated that she owed between $4,000 and $5,000 in attorney fees. Plaintiff’s two older children had offered to help pay these fees. Plaintiff did not want to ask these children to help pay her attorney fees because they were already helping to pay her living expenses. Plaintiff’s mother was also sending her money. Plaintiff had been receiving $125 per week in temporary alimony.
After hearing the testimony, the trial court awarded plaintiff $3,000 in attorney fees as well as $500 per week alimony until further order of the court. The alimony award was made on the basis of testimony by plaintiff’s experts that plaintiff would have difficulty finding and maintaining employment because of her depression. Plaintiff also received one-half the proceeds from the sale of the marital home, a $3,000 bank account, an automo bile, a $3,000 Individual Retirement Account, one-half of the value of the parties’ life insurance policies and stocks. Defendant received essentially equivalent assets. Defendant estimates the value of these assets to be approximately $95,000. The trial court also ordered defendant’s pension divided under a formula suggested by plaintiff.
Defendant first claims that the trial court abused its discretion when it ordered him to pay $3,000 of plaintiffs attorney fees. An award of attorney fees in a divorce case is within the discretion of the trial court; however, attorney fees should be awarded only if necessary to enable a party to carry on or defend the litigation. MCL 552.12; MSA 25.93 and MCR 3.206(A). See also Ozdaglar v Ozdaglar, 126 Mich App 468, 472-473; 337 NW2d 361 (1983). Defendant argues that, because plaintiff received substantial assets in the property settlement arid alimony awards, she was not entitled to attorney fees. We disagree and find no abuse of discretion under these facts. See and compare Atkinson v Atkinson, 160 Mich App 601, 612; 408 NW2d 516 (1987), lv den 429 Mich 884 (1987); Rapaport v Rapaport, 158 Mich App 741, 751-752; 405 NW2d 165 (1987), modified on other grounds 429 Mich 876 (1987); Rethman v Rethman, 156 Mich App 74; 401 NW2d 314 (1986), vacated in part on other grounds 429 Mich 868 (1987); Bone v Bone, 148 Mich App 834, 840; 385 NW2d 706 (1986); Fulton v Fulton, 143 Mich App 187, 192-193; 371 NW2d 522 (1985); Carlson v Carlson, 139 Mich App 299, 305; 362 NW2d 258 (1984); Ozdaglar, supra at 472-473; Vaclav v Vaclav, 96 Mich App 584, 593; 293 NW2d 613 (1980); Radway v Radway, 81 Mich App 328, 333; 265 NW2d 202 (1978); Abadi v Abadi, 78 Mich App 73, 79-80; 259 NW2d 244 (1977), lv den 402 Mich 870 (1978); Gove v Gove, 71 Mich App 431, 434-436; 248 NW2d 573 (1976); Mixon v Mixon, 51 Mich App 696, 702-703; 216 NW2d 625 (1974); Pinney v Pinney, 47 Mich App 290; 209 NW2d 467 (1973), lv den 391 Mich 767 (1974); Schaffer v Schaffer, 37 Mich App 711, 715; 195 NW2d 326 (1972).
Defendant next claims that the trial court abused its discretion when it awarded plaintiff $500 per week in alimony because it failed to: (1) consider his ability to pay that amount, (2) consider defendant’s "obligation” to pay for Sheila’s college education in light of plaintiff’s testimony that she had told Sheila that there would be sufficient money in the parties’ assets for Sheila to attend school, and (3) restrict defendant’s payment of alimony to a certain time in the future to motivate plaintiff to seek employment.
An award of alimony is within the discretion of the trial court. Cloyd v Cloyd, 165 Mich App 755, 759; 419 NW2d 455 (1988). This Court reviews such an award de novo and exercises its independent judgment in reviewing the evidence, but gives grave consideration to the trial court’s findings and will not reverse unless convinced it would have come to a different conclusion had it been sitting in the trial court’s position. Id. Factors to be considered in determining whether alimony should be awarded in a judgment of divorce include: (1) the past relations and conduct of the parties, (2) the length of the marriage, (3) the ability of the parties to work, (4) the source and amount of property awarded to the parties, (5) the age of the parties, (6) the ability of the parties to pay alimony, (7) the present situation of the parties, (8) the needs of the parties, (9) the health of the parties, (10) the prior standard of living of the parties and whether either is responsible for the support of others, and (11) general principles of equity. Id.
We reject defendant’s claim that the trial court failed to consider his ability to pay in awarding plaintiff alimony. Reviewing the trial court’s opinion, we believe that the trial court did consider defendant’s ability to pay. On these facts, an alimony award of $500 per week was not an abuse of discretion. Compare Giesen v Giesen, 140 Mich App 335; 364 NW2d 327 (1985), with Fulton, supra.
Although defendant concedes that the trial court could not have ordered either of the parties, absent a consent judgment, to pay child support to be used for Sheila’s college education because she was over the age of majority, Felcoski v Felcoski, 159 Mich App 762; 407 NW2d 11 (1987); Kalter v Kalter, 155 Mich App 99, 105; 399 NW2d 455 (1986), lv den 428 Mich 862 (1987), reconsideration den 428 Mich 904 (1987); Arndt v Kasem, 135 Mich App 252, 258-259; 353 NW2d 497 (1984), he claims that plaintiff’s testimony confirms that she told Sheila that her college education would be paid out of the parties’ assets. Therefore, defendant contends that he is merely fulfilling a contractual and moral obligation on the part of the plaintiff by providing such support and that the trial court should have considered his support of Sheila in setting alimony. Defendant relies on Parrish v Parrish, 138 Mich App 546; 361 NW2d 366 (1984).
MCL 552.23(1); MSA 25.103(1) provides:
Upon entry of a judgment of divorce or separate maintenance, if the estate and effects awarded to either party are insufficient for the suitable support and maintenance of either party and any children of the marriage as are committed to the care and custody of either party, the court may further award to either party the part of the real and personal estate of either party and alimony out of the estate real and personal, to be paid to either party in gross or otherwise as the court considers just and reasonable, after considering the ability of either party to pay and the character and situation of the parties, and all other circumstances of the case.
In Parrish, the parties had a child who was eighteen years old and suffered from cerebral palsy. The trial court awarded the plaintiff mother $25 per week as alimony as long as the child was alive and in the plaintiff’s care, custody, and control and the plaintiff assumed the child’s expenses. While this Court held that the trial court could not order the defendant father to pay child support for a child beyond the age of eighteen unless the court had previously obtained jurisdiction over the child while that child was a minor, this Court also held that the trial court did not err when it considered the plaintiff’s assumed responsibility for her handicapped daughter’s support in determining the alimony award. Id. This Court noted that the trial court was not precluded from considering the plaintiff’s voluntary assumption of her handicapped daughter’s support, even though there was no legal obligation for the plaintiff to do so. This Court also noted that in the predecessor to MCL 522.23; MSA 25.103, the Legislature had not used the term "minor children” as it had in the child support statute and, therefore, the alimony statute was not so limited. Id.
We believe that Parrish is distinguishable. We do not believe that Sheila was committed to the care and custody of either party, as was the child in Parrish, or that either party was "responsible” for her support. Consequently, the trial court did not err when it failed to consider defendant’s voluntary assumption of this obligation in determining the amount of plaintiff’s alimony and, instead, held that the parties could independently agree to share Sheila’s college expenses. Fulton, supra at 191.
Moreover, the trial court did not abuse its discretion when it provided that defendant pay alimony until further order of the court. We note that defendant could move to modify the alimony award upon new facts or changed circumstances arising since the judgment which would justify revision. MCL 552.28; MSA 25.106. See also Eckhardt v Eckhardt, 155 Mich App 314, 316-317; 399 NW2d 68 (1986).
Defendant also claims that he will be unable to exercise his ability to move for modification because he will be unable to discover plaintiff’s condition given the physician-patient privilege, MCL 600.2157; MSA 27A.2157, and the psychologist-patient privilege, MCL 333.18237; MSA 14.15(18237). Thus far, plaintiff has waived these privileges and has not indicated an intent to invoke them. If problems arise in the future, defendant may certainly bring them to the trial court’s attention.
Finally, defendant claims that the trial court violated MCL 552.18(1); MSA 25.98(1) when it awarded plaintiff pension benefits pursuant to the following formula: the percentage of the pension awarded to plaintiff by the trial court multiplied by a fraction, the numerator of which was the total period of time defendant was a participant in the plan while married and the denominator of which was the total period of participation in the pension plan by defendant at his date of retirement or the date upon which he could begin to receive benefits, at plaintiff’s option, multiplied by defendant’s monthly pension benefits on the date which plaintiff elects to receive benefits. For example, if defendant retired at age fifty-five after thirty years of service and the parties had been married for twenty-eight of those thirty years and the trial court awarded plaintiff one-half of a monthly pension benefit of approximately $1,800, plaintiff would receive Vz x %o x 1800 = $840.
John Bremer, defendant’s expert, testified that the present value of defendant’s pension was $77,335 if defendant retired at age sixty-two, but $54,447 if he retired at sixty-five. Charles Monroe, plaintiff’s expert, testified that defendant’s pension had a present value of $84,300 if he retired at age sixty-two. Monroe also testified that defendant’s pension had several present values, which depended upon the date defendant retired. The earlier defendant’s retirement date, the larger the present value of the pension.
Marvin Dery, the records supervisor of Ford Motor Company’s pension department as well as its pension plan administrator, testified that if defendant terminated his employment on December 31, 1985, he would be entitled to receive a pension of $1,829.51 at age sixty-five. If defendant retired at age fifty-two, he would receive either $1,122 each month with survivorship benefits or $1,156 each month without survivorship benefits. In addition, defendant would receive $710 per month supplemental allowance until age sixty-two; at that time, defendant’s minimum life income benefit, which had been reduced, returned to its original level. Dery further testified that defendant’s pension benefits would increase if he continued to work; however, they would decrease if he retired earlier.
MCL 552.18(1); MSA 25.98(1) provides:
Any rights in and to vested pension, annuity, or retirement benefits, or accumulated contributions in any pension, annuity, or retirement system, payable to or on behalf of a party on account of service credit accrued by the party during marriage shall be considered part of the marital estate subject to award by the court under this chapter. [Emphasis supplied.]
MCL 552.101(4); MSA 25.131(4) provides:
Each judgment of divorce or judgment of separate maintenance shall determine all rights of the husband and wife in and to all of the following:
(a) Any pension, annuity, or retirement benefits.
(b) Any accumulated contributions in any pension, annuity, or retirement system.
(c) Any right or contingent right in and to unvested pension, annuity, or retirement benefits.
Defendant argues that by using the formula suggested by plaintiff the trial court allowed her to continue to accrue retirement benefits in direct proportion to his postmarriage contributions, salary increases, future years of service, and any revised methods of determining defendant’s average compensation for pension purposes. Defendant claims that plaintiff is entitled to receive one-half of the accrued monthly benefit to which he was entitled on the date of divorce.
Plaintiff, on the other hand, claims that MCL 552.18(1); MSA 25.98(1) was not intended to limit the discretion of the trial court in dividing a pension which is a marital asset. Plaintiff notes that MCL 552.18(1); MSA 25.98(1) was enacted in conjunction with MCL 28.110(2), 38.40(2), 38.559(7), 38.826(2), 38.927(2), 38.1057(2), 38.1346(4), 38.1553(2) and 552.101(4); MSA 3.340(2), 3.981(40X2), 5.3375(9X7), 27.125(26)(2), 27.3178(60.27)(2), 2.169(57)(2), 15.893(156)(4), 5.4001(53)(2) and 25.131(4). Plaintiff argues that the first eight statutes allowed trial courts to reach state employees’ retirement plans by providing that benefits from such plans "shall be subject to award by a court pursuant to section 18 of chapter 84 of the Revised Statutes of 1846, being section 552.18 of the Michigan Compiled Laws, and to any other order of a court pertaining to child support.” Furthermore, plaintiff argues that MCL 552.101(4); MSA 25.131(4) merely requires a trial court to ensure that the parties’ respective rights in a marital pension are provided for in the divorce or separate maintenance judgment. Defendant disagrees and contends that MCL 552.18(1); MSA 25.98(1) would be unnecessary unless it was intended to limit the trial court’s discretion in distributing a marital pension because MCL 552.101(4); MSA 25.131(4) already allows the trial court to exercise discretion.
We agree with defendant that the trial court erred in dividing the pension. The trial court’s method of division and distribution is dependent, at least in part, on the future accrual of pension benefits by defendant after the divorce. MCL 552.18(1); MSA 25.98(1) clearly provides that a pension may be distributed as part of the marital estate to the extent of service credit accrued by a party during the marriage. It therefore follows that the portion of a pension attributable to service credit earned before the marrriage or after the divorce is not distributable as part of the marital estate. We also find objectionable the fact that the amount awarded to plaintiff has not been reduced to a sum certain at the time of divorce and is contingent upon various actions and choices made by the parties following the divorce: specifically, defendant’s decision as to how much longer he will continue working with his employer and the fact that the judgment gives plaintiff the option of when to start receiving benefits. Inasmuch as the above-mentioned statute directs the courts to treat pensions as part of the marital estate, that is to say, as property, we believe that the value of that property, the pension, must, as with any other property, be valued at the time of divorce and a fixed distribution achieved between the parties.
To equitably distribute the pension, it is necessary for the trial court to determine the value of the pension at the time of divorce. This is achieved by reducing the pension to its present value. Reduction to present value is, as is often the case in divorce matters, a somewhat complex matter which lends itself to manipulation and exaggeration by the parties to achieve a low or high figure as their respective interests may demand. Accordingly, courts must take care to avoid adopting an exaggerated valuation figure proffered by the expert of one party or the other. See Troyan, Pension Evaluation and Equitable Distribution, 10 Fam L Rep (BNA) No. 4, Monograph No. 1, at 3001, November 22, 1983. However, as Troyan points out, it is possible to achieve a neutral and objective present value of a pension. While we find much guidance in the Troyan article, there are some aspects which do not comport with our interpretation of Michigan law. Accordingly, we offer the following guidelines for the trial court in determining the present value of the pension in accordance with the statute.
To begin, we believe that an equitable distribution under the pension statute requires that the method employed reflect the fact that the value of the pension for distribution purposes in a divorce proceeding is only that value which accrued during the course of the marriage. Any accrual of value before or after the marriage may not be considered. Furthermore, the decisions of the parties following the judgment of divorce must not affect the value of the distribution of a portion of the pension to the nonemployee spouse. With these principles in mind, we may establish some guidelines to be employed in determining the present value of the pension.
In order to reduce a pension to present value, it is necessary to know (1) the amount of the monthly benefit subject to division, (2) the percentage of that benefit to be awarded to the nonemployee spouse, and (3) when that benefit would begin payment. See Troyan, supra. While it cannot be known what these variables will be until the employee spouse actually retires and begins to receive retirement benefits, it is unnecessary, indeed improper, to wait until the employee spouse actually retires and use the actual amounts received by the employee spouse. Rather, the amount of the pension benefit can, and should, be determined at the time of divorce based upon three assumptions: (1) that the employee spouse will retire at the earliest date permitted under the plan, (2) that the pension is based upon the employee spouse’s salary at the time of divorce, and (3) that the pension is based upon the number of years of credited service earned up to the date of divorce.
The reason for the first assumption, that the employee spouse will retire at the earliest retirement date permitted under the plan, was explained by Troyan, supra at 3013-3014:
For valuation purposes assume the employee spouse will retire at the earliest retirement date. That is the point at which the benefit is totally under the control of the employee spouse. That is, the employee spouse may unilaterally elect to start receiving the benefit at a time of his choosing. If the earliest retirement date is prior to the date of the valuation then the commencement of action date is to be considered the earliest retirement date. [Emphasis in original.]
Use of the earliest retirement date is desirable because that date is independent of any decision by either party subsequent to the judgment of divorce. That is, the employee spouse may choose to continue working rather than retiring at the earliest allowable date without that choice affecting the value of the portion of the pension distributed to the nonemployee spouse.
Under the second assumption, the trial court should base the pension benefits on the employee spouse’s salary at the time of the divorce. There should be no projection of future salary. This assumption is necessary since any future increase in salary is based upon events which happen following the judgment of divorce rather than events occurring during the course of the marriage. The benefits accrued during the course of the marriage are only those benefits which are related to the salary earned during the course of the marriage.
The final assumption to be employed by the trial court, the number of years of credited service to the employee, is relatively straightforward. The trial court must base the pension benefit for valuation purposes on the number of years the employee spouse worked up until the time of divorce. The benefit must not be based upon any speculation as to how long the employee spouse will continue to work following divorce because any increase in pension benefits attributable to the employee spouse’s continued employment following the judgment of divorce are benefits which accrue after marriage and not during the course of the marriage.
With the above assumptions, the trial court can determine the monthly pension benefit the employee spouse would receive for purposes of the divorce. However, that amount must nevertheless be reduced by two factors. The first is what Troyan refers to as the coverture factor. That factor simply adjusts the benefit to reflect any time for which the employee spouse was a member of the pension system before the marriage. Once the coverture factor is determined, the pension benefit calculated above must be reduced by multiplying it times the coverture factor. Second, the benefit has to be reduced by the distribution percentage to the nonemployee spouse. For example, if the trial court is distributing marital assets evenly, fifty percent of the benefit would be awarded to the employee spouse and fifty percent to the nonemployee spouse. Thus, the monthly benefit for valuation purposes must be reduced by fifty percent to reflect the distribution amount. _
Having determined the monthly pension benefit to be awarded to the nonemployee spouse, the trial court must next reduce that benefit to present value. This is achieved by employing generally accepted actuarial methods. Troyan, supra, describes a method using tables prepared by a government agency, the Pension Benefit Guarantee Corporation, which greatly simplifies the process of determining the present value when the amount of the monthly benefit is known and when distribution of that benefit would begin. The trial court could also, of course, consider testimony by expert witnesses. However, care should be taken to ensure that the expert’s opinion of the present value of the pension is based upon a monthly benefit calculated with the assumptions outlined above.
After going through the above steps, the amount to be distributed to the nonemployee spouse is determined and the trial court must next devise a distribution method. The preferred method is an immediate offset of assets. See Troyan, supra. However, an immediate offset of assets is not always feasible as the present value of the pension may far exceed the remaining marital assets. Id. In such cases, we leave the distribution method to the trial court’s discretion to employ an appropriate method consistent with the principles outlined above.
In any event, whatever method is employed by the trial court must be consistent with the principles that the amount to be distributed should be determined at the time of divorce and should not be influenced by any actions or decisions of the parties following the judgment of divorce. While such determinations are always difficult, they are not unknown in domestic relations matters. For example, there are occasions where the primary marital asset is the marital home. When possession of the home is awarded to one spouse, it is not always feasible to compensate the other spouse for his or her equity interest in the home. In these situations, although the amount of that equity interest is known at the time of divorce, the trial court must nevertheless devise a viable means of distributing that equity interest at some point in the future. Whether that method is a future lump-sum payment, a current smaller payment coupled with installment payments, or future installment payments, or some other method, we leave that determination to the trial court’s discretion. We only direct that the method employed not be dependent upon the amount of the future benefit actually paid to the employee spouse. _
For the above reasons, we reverse the trial court’s division of the pension and remand to the trial court for redetermination of the distribution of the pension plan in a manner consistent with this opinion. Otherwise, we affirm.
Affirmed in part and reversed in part.
Various experts did testify as to the present value of defendant’s pension at trial. However, the trial court apparently rejected use of these present value figures, relying instead on the distribution method which ultimately found its way into the divorce judgment.
Where the pension benefit is based upon an average of the employee’s salary for a certain period of time prior to leaving his employment, rather than the amount of salary at the time of leaving employment, then it would be the average of the employee spouse’s salary for the required period of time immediately preceding the divorce.
This is best explained by use of an example. If the employee spouse worked at his place of employment for twenty-five years prior to the divorce, but was only married during twenty of those years, that portion of the pension which accrued during the course of the marriage was %s or eighty percent of the pension benefit to which the employee spouse would be entitled at the time of the divorce.
We would note that where the employee spouse joined the pension system during the course of the marriage, the coverture factor would always be one hundred percent. This is true since one hundred percent of the pension, in that situation, would have accrued during the course of the marriage until the time of divorce.
A brief example might be in order. If the monthly benefit, after employing the enumerated assumptions, is $800 and the coverture factor is eighty percent and the assets are divided evenly, then the nonemployee’s spouse’s share would be $320 per month ($800 times eighty percent times fifty percent.)
We note another possible means of determining a present value for distribution purposes: namely, once having determined the monthly benefit under the procedure outlined above, it could be determined how much it would cost to purchase an annuity policy which would pay that monthly benefit beginning on the date of earliest possible retirement. Indeed, present value of the pension is, in essence, the amount of money necessary now to fund a future distribution of a known monthly benefit amount beginning on a date certain.
We note one possible method for consideration by the trial court if an immediate offset of assets is not feasible. Taking the monthly benefit determined under the procedures outlined above, prior to its reduction to present value, but including the reduction for the coverture factor and a reduction for the amount to be distributed to the nonemployee spouse, the trial court could order the employee spouse to begin installment payments to the nonemployee spouse in the amount of that benefit to commence on the earliest retirement date and to proceed until death. Those payments would begin on the earliest retirement date, regardless of whether the employee spouse actually retired since the earliest retirement date is the date assumed for purposes of evaluation. While this method has the disadvantage of there being no present determination of the number of payments to be made, the amount of those payments is fixed at the time of divorce based upon the assumptions we have outlined and the date those payments are to begin is also fixed based upon the assumptions made. The ending date, while unknown, is fixed by a future event, death, which is explicitly specified in the judgment and is, presumably, outside the parties’ control. Furthermore, the actual present value could always be determined at any given point since the amount of the benefit and when the benefit would begin is known. We would point out that the employee spouse could redeem that payment obligation at any time by tendering to the nonemployee spouse the amount of money necessary to purchase an annuity contract that would pay the same monthly benefit beginning at the same time. (It would, of course, be up to the nonemployee spouse to determine if he or she actually wished to purchase such a contract.) Similarly, the payment of those installments could be secured by the purchase of life insurance. | [
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Kelly, P.J,
New issues are less congenial than the one presented in this appeal. A child born to the parties ip 1979 after their 1976 marriage is sought tó be illégitimized or denied paternity. The first assault on legitimacy occurred in 1986, some sixteen months after the parties’ divorce judgment was entered, when defendant filed a motion requesting that the court order the parties and the minor child to submit to an hla (Human Leukocyte Antigen) blood test. That motion was denied by the trial court in an order entered May 5, 1987, which order also granted plaintiff actual costs. Defendant appeals as of right, raising two issues on appeal._
i
Did the trial court err by denying defendant’s motion for blood tests when the motion was made over a year after the entry of a judgment of divorce between the parties but was supported by an affidavit claiming new evidence regarding defendant’s fertility?
The trial court correctly denied defendant’s motion for a blood test to determine paternity. The divorce judgment in this case was entered on July 17, 1985. The judgment ordered the defendant to pay for the support of Renee Rucinski and refers to her as the minor child of the parties. Defendant did not contest the issue of paternity during the divorce action and did not seek to open the issue of paternity until November 26, 1986. The basis for defendant’s motion was the alleged new evidence that defendant had a very low sperm count and a correspondingly low likelihood of impregnating; this evidence was grounded on a fertility test taken seven years after the birth of the minor child.
A motion for relief from a judgment based on newly discovered evidence must be made within one year. MCR 2.612(C)(2). It is presumed that a child conceived or born to a married couple during the marriage is legitimate, but this presumption may be rebutted by clear and convincing evidence. Shepherd v Shepherd, 81 Mich App 465, 469; 265 NW2d 374 (1978). Defendant did not attempt to rebut this presumption during his divorce proceedings. Defendant’s divorce judgment and the support order arising from his divorce constitutes an adjudication of his paternity and establishes his duty to pay support. Hackley v Hackley, 426 Mich 582, 585; 395 NW2d 906 (1986). The present proceeding to determine paternity involves the same parties and issue as previously determined in de fendant’s divorce. This issue was previously adjudicated and so is barred by res judicata. Hackley, supra, p 591. As pointed out by our Supreme Court, there is a strong public policy behind the finality of divorce judgments and paternity determinations:
There is no more forceful example of the rationale underlying the requirement of finality of judgments than the chaos and humiliation which would follow from allowing former husbands to challenge, long after a final judgment has been entered, the legitimacy of children born during their marriages. [Hackley, supra, p 599.]
The defendant did not raise the issue of paternity during the divorce proceedings and cannot raise it now more than one year after the divorce judgment is final.
ii
Did the lower court err by awarding costs to plaintiff?
The lower court did not err in awarding plaintiff actual costs and attorney fees and, further, plaintiff is entitled to costs and attorney fees on appeal.
Defendant cites Baumgardner v Balmer, 157 Mich App 159; 403 NW2d 525 (1987), for the proposition that a court may not award attorney fees in a paternity action. This is not a paternity action. Defendant’s arguments below were merit-less and are equally meritless on appeal, so plaintiff is entitled to costs for defending this case below and on this appeal. Briarwood v Faber’s Fabrics, Inc, 163 Mich App 784, 795; 415 NW2d 310 (1987). Plaintiff is awarded expenses incurred in this appeal to be determined by the lower court on remand. MCR 7.216(C)(2).
Affirmed and remanded for a determination of plaintiff’s costs on appeal. | [
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Holbrook, Jr., J.
Plaintiff, the collective-bargaining representative of teachers employed by defendant Dearborn Board of Education, appeals from an order of summary disposition granting defendant relief in the form of declaratory judgment that the conferral of seniority status to five special education teachers was lawful. We affirm for the limited reasons stated in this opinion.
This dispute resulted from the decision of the Wayne County Intermediate School District to reorganize programs providing special education services for hearing impaired students. Prior to the reorganization, the Garden City and Southgate constituent school districts provided these services. Pursuant to the reorganization, the programs provided previously by the two constituent school districts were discontinued, and defendant Dear-born Board of Education assumed the responsibility for providing those services. Five teachers who lost their employment with Garden City and Southgate as a result of the reorganization were then hired by defendant with a carryover of credit for their time of service in their former employment for purposes of seniority. Plaintiff challenges the propriety of granting the five teachers credit for seniority earned in their former employment with the Garden City or Southgate districts. We hold that defendant’s decision to grant this seniority status was proper.
Section 51(5) of the State School Aid Act of 1979 provides:
Special education personnel transferred from 1 district to another to implement the school code of 1976 shall be entitled to the rights, benefits, and tenure to which the person would otherwise be entitled had that person been employed by the receiving district originally. [MCL 388.1651(5); MSA 15.1919(951X5).]
Special education programs and services are mandated by the School Code of 1976. See MCL 380.1701 et seq.; MSA 15.41701 et seq. Since it appears that defendant effected a transfer to implement these statutorily mandated programs and services, it follows that defendant’s determination of seniority status was in accordance with § 51(5). In an attempt to avoid this statutory provision, plaintiff argues that the teachers were not "transferred” within the meaning of the statute, but rather they were severed from employment by one district and then hired by another. We disagree. Plaintiff does not explain exactly what procedures the districts could have implemented if the statute is construed to require a more formal transfer procedure. We are unaware of any statutory provision regulating an interdistrict transfer of employees. It is clear that each school district has the statutory authority to make its own autonomous hiring decisions. See MCL 380.1231(1); MSA 15.41231(1). If, in the absence of statutory authority, a formal transfer procedure was implemented, the resultant divestment of the constituent school district’s authority to make its own hiring decisions would probably run afoul of the allocation of hiring authority and discretion effected by the School Code. Because the overall statutory scheme does not appear to recognize a tranfer procedure substantially different from the actual arrangement used in this case, we conclude that the five special education teachers were "tranferred” within the meaning of § 51(5) and that they are entitled to the benefits, including retention of seniority status, provided in § 51(5).
We find further support for our conclusion from the evinced policy of the Legislature to preserve intact the rights and tenure of school employees affected by reorganizations of special education programs and services. In addition to § 51(5), this policy also finds expression in the School Code. In the context of specified instances of reorganization of special education programs and services, the School Code attempts to ameliorate the disruptive effects of personnel dislocations by providing for a hiring preference in favor of those employees whose employment was terminated as a result of the discontinuation of a special education program or service. The hiring preference obligates the entity assuming the responsibility of providing those programs or services previously provided by the former employer. Thus, the preference obligates an intermediate school district with respect to former employees of a constituent school district, MCL 380.1742; MSA 15.41742, an intermediate school district with respect to former employees of a state agency, MCL 380.1743; MSA 15.41743, and a constituent school district with respect to former employees of an intermediate school district, MCL 380.1766; MSA 41766. Although the School Code is not applicable in this case, which involves a transfer of employment from one constituent district to another, we think that it does highlight pertinent policy considerations.
We further conclude that the § 51(5) provision for retention of employee rights, benefits, and tenure in the event of an interdistrict transfer is not subject to defendant’s duty to engage in collective bargaining pursuant to the public employment relations act. See MCL 423.215; MSA 17.455(15). The specific mandate of § 51(5), contemplating a narrowly defined problem, must control over the more general provisions of the pera. See Wayne Co Prosecutor v Wayne Circuit Judge, 154 Mich App 216, 221; 397 NW2d 274 (1986). Moreover, unlike the situations in Rockwell v Crestwood School Dist Bd of Ed, 393 Mich 616, 627-633; 227 NW2d 736 (1975), and other cases cited by plaintiff, the State School Aid Act was enacted after pera and, therefore, it cannot be said that the Legislature intended pera to diminish pro tanto rights afforded by the State School Aid Act.
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Per Curiam.
Defendant appeals as of by right from his conviction by a jury of assault with intent to rob while armed, MCL 750.89; MSA 28.284, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2).
Defendant raises two issues on appeal. The first of these deals with his guilty plea, entered at the time of sentencing in 1986, to a supplemental charge of habitual offender, fourth offense, pursuant to the habitual offender statute, MCL 769.12; MSA 28.1084.
Defendant’s appeal arises out of the following incident. On the afternoon of February 3, 1986, defendant approached Billie Mercier, an employee of a Northville real estate office, in her office parking lot and told her to drop her purse. Ms. Mercier did not respond and defendant pulled out a gun, pointed it at her and repeated his command. Then he slipped on the ice and Ms. Mercier ran into her office, still holding her purse, and told other employees that a man outside had a gun. They called the police. Ms. Mercier observed defendant leave the premises in an older-model green Chrysler. All of the people in the office with Ms. Mercier who saw defendant testified that he left the parking lot alone in his car.
A Northville police officer arrested defendant about one mile from the real estate office. At the time of arrest, defendant and his sister were in the car; the gun was found pursuant to a permissible search of the sister’s purse.
At trial, defendant testified that he, his sister and her boyfriend were returning from the Twelve Oaks Mall when they turned into the office parking lot. Defendant denied the entire incident with Ms. Mercier. The prosecutor impeached defendant’s testimony with evidence of his prior criminal sexual conduct convictions. These convictions form the basis for both issues now before this Court.
First, defendant argues that he was improperly charged as a fourth-time felony offender because all of his previous convictions were obtained on the same day.
On July 21, 1976, defendant pled guilty in the Recorder’s Court for the City of Detroit to numerous counts of armed robbery and criminal sexual conduct, and one count of unarmed robbery. Although defendant pled guilty to numerous charges at one time, the underlying events occurred at different times and places and were therefore separate incidents or transactions. Specifically, the record shows that on July 21, 1976, defendant pled guilty to one count each of unarmed robbery and first-degree criminal sexual conduct arising out of an incident on March 11, 1976; one count of armed robbery and two counts of first-degree criminal sexual conduct arising out of events on March 12, 1976; two counts of first-degree criminal sexual conduct and one count of armed robbery arising out of different events, including a different victim, on March 12, 1976; and finally one count of armed robbery occurring in an incident on March 15, 1976.
Defendant contends that because there was no time gap between defendant’s prior convictions, that is, because he pled guilty to all the 1976 charges on the same day, he had no opportunity to reform, and, thus, to convict defendant as a fourth-time felony offender denies him the benefit of the legislative purpose of the habitual offender statute.
Defendant’s position simply misstates the law. Separate convictions, arising out of separate transactions occurring at different times and places, may properly result in sentence enhancement under the habitual offender statute even though the convictions were obtained on the same day. People v Chaplin, 102 Mich App 748; 302 NW2d 569 (1980), rev’d on other grounds 412 Mich 219; 313 NW2d 899 (1981). This result is directly opposite that relied upon by the defendants in People v Cavanaugh, 127 Mich App 632; 339 NW2d 509 (1983), and People v Ross, 84 Mich App 218; 269 NW2d 532 (1978).
In Ross, defendant was charged with two felonies, committed in one transaction and contained in one information, which the prosecutor unsuccessfully sought to count as two separate felonies for purposes of triggering the habitual offender statute. The Ross Court held that defendant could only be charged as a second-time felony offender because the events in question arose from the same transaction and the proofs relied on the same testimony, and concerned the same time, place and subject. Similarly, the Cavanaugh Court held that defendant could not be charged as a third-time felony offender if his two previous convictions involved one time, place and subject and required the same evidence to convict.
Most recently, in People v Stoudemire, 429 Mich 262; 414 NW2d 693 (1987), our Supreme Court held that when prior multiple convictions arise out of a single incident or transaction, these convictions may count only as a single conviction for purposes of the habitual offender statute. Id., p 278. This means that, consistent with Ross and Cavanaugh, previous convictions arising from the same incident cannot be strung together for purposes of the habitual offender statute where the incident involved the same subject and victim, occurred at the same time and place, and the proofs required the same evidence.
Such is not the case here. While entered on the same day, defendant’s convictions followed a crime spree over one week’s time in March, 1976, where he raped, sexually assaulted and robbed, sometimes at gunpoint, at least four different women at four different places and at four different times. Contrary to defense counsel’s assertion, these convictions did not all arise from the same transaction, and it is simply untrue to state otherwise. It is also futile for defendant to assert that he somehow did not have time to reform so as to make application of the habitual offender statute inappropriate in the instant case. Defendant received a ten- to fifteen-year sentence for his participation in the March, 1976, crimes. Certainly, he had considerable time in which to reform, if he had been so inclined, before he committed these later crimes in Oakland County.
Finally, defendant appears to be exactly the type of repeat criminal the Legislature intended to be included within the scope of the habitual offender statute. If defendant is not an habitual offender within the application and intent of the statute, it is difficult to imagine who is.
Defendant next argues that the trial judge improperly permitted defendant to be impeached with evidence of four prior criminal sexual assault convictions and that the judge further engaged in error requiring reversal because he failed to state on the record his reasons for admitting this impeachment evidence.
Prior to trial, defense counsel moved to suppress evidence of defendant’s prior convictions, arguing that these convictions were too similar to defendant’s current charge and that the defense "would be hamstrung significantly” if defendant were barred from testifying by an adverse ruling. The trial court suppressed evidence of defendant’s armed and unarmed robbery convictions, apparently because these were for the same or substantially the same conduct as the offense charged, but admitted evidence of the criminal sexual conduct convictions.
Our Supreme Court recently revised MRE 609 in People v Allen, 429 Mich 558, 614; 420 NW2d 499 (1988). After analyzing this case in light of the Allen clarified balancing test, id., pp 606, 609-610, we conclude that admission of evidence of four prior first-degree criminal sexual conduct convictions was error. Although of recent vintage, these convictions were of low probative value. Id., p 611. Defendant’s testimony was of great importance to the decisional process because it was the only evidence directly contradicting the testimony of the prosecution witnesses. The prejudice to defendant in admitting evidence of the convictions was not outweighed by the probativeness of that evidence.
Notwithstanding the error, the prosecutor’s case was so strong that we do not believe a reasonable juror could have voted to acquit defendant even had the impeachment evidence been suppressed. We therefore find the error harmless. People v Stubl, 149 Mich App 42, 46-47; 385 NW2d 719 (1986), lv den 425 Mich 864 (1986).
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H. D. Stair, J.
On December 30, 1974, suit was commenced in Isabella County Circuit Court to collect on certain promissory notes executed by Sam and George Pappas and on a guarantee of payment executed by George Pappas and his wife Ann. The complaint alleged a joint and several liability on the part of all these defendants for the total amount owed plaintiff.
Following a change of venue to Ingham County, plaintiff filed an amended complaint without seeking leave of the court. This amendment alleged that George Pappas had made certain fraudulent misrepresentations to the plaintiff in obtaining the loans. This misrepresentation was that George Pappas certified himself to be the owner of a particular parcel of realty in East Lansing, Michigan, when in fact the land was owned solely by Ann Pappas. This amended complaint was later withdrawn.
On January 13, 1976, George and Ann Pappas filed a document denominated as a "consent to judgment”. The document assented to all relief prayed for in the original complaint with the exception of the several liability of Ann Pappas.
Thereafter, defendants filed a motion for summary judgment of dismissal in their favor. Alternatively, the motion prayed for a judgment against George Pappas, severally, in the amount of $51,249.28 and against George and Ann Pappas jointly in the amount of $50,000, the latter sum representing the amount of the guarantee of payment. Individual liability of Ann Pappas was impliedly denied.
On January 26, 1976, plaintiff filed an answer to the motion for summary judgment. Also filed was an application for leave to amend the complaint. The amendment sought was the same as had been evidenced in the withdrawn complaint.
The trial court’s final opinion dated June 24, 1976, denied the summary judgment to George and Ann Pappas because the "consent to judgment” did not accede to all the relief prayed for by the plaintiff. The trial court granted summary judgment to Ann Pappas on the issue of her several liability, citing the married women’s property act, MCLA 557.51 et seq.; MSA 26.181 et seq.; as its basis.
Defendants have appealed from the denial of summary judgment in accordance with the "consent to judgment” and also from the order allowing the amendment. Plaintiff has cross-appealed on the issue of Ann Pappas’ several liability.
I. Effect of the "Consent to Judgment”.
On January 13, 1976, as noted, George and Ann Pappas filed a "consent to judgment” with the trial court. That document stated:
"Now come the Defendants George P. Pappas and Ann Pappas and hereby consent to a judgment being entered against George Pappas individually and against George Pappas and Ann Pappas jointly in the amount of Fifty-One Thousand Two Hundred Forty-Nine Dollars and 28/100 ($51,249.28) together with whatever interest, costs and attorney fees the Court may order.”
A close review of this document reveals it to be nothing more than a settlement offer under another name. There is no question that it is not a consent or confessed judgment since the plaintiff never agreed to its terms. See Union v Ewing, 372 Mich 181; 125 NW2d 311 (1963). The trial court’s ruling that the "consent to judgment” had no legal significance is eminently correct.
II. Amendment of Pleadings.
GCR 1963, 118.1 states in part that:
"Leave [to amend] shall be freely given when justice so requires.”
In the case at bar, the plaintiff’s amended complaint brought forth a new allegation, i.e., that defendant George Pappas deliberately defrauded the plaintiff by falsely asserting ownership of certain realty in East Lansing when in fact that realty was owned by his wife. This claim clearly opened new avenues of proof and was plainly related to the subject matter of the litigation. Moreover, the amended complaint rather drastically altered the theory of the case.
The matter had not yet come to trial. It is axiomatic that amendments may be granted prior to trial without a claim of abuse of discretion where "justice so requires”. That requirement was present in this case.
III. Separate Liability of Ann Pappas.
As noted, the trial court’s June 24, 1976, opinion found that no separate liability existed on the part of Ann Pappas despite her having signed the guarantee of payment. That decision was based on MCLA 557.51 et seq.; MSA 26.181 et seq., which militates that unless consideration for a note passes directly to a wife’s estate, a judgment on a note co-signed by her and her husband may reach jointly-held property only.
In the case at bar, pursuant to plaintiff’s well-pleaded allegations, George Pappas fraudulently indicated in his financial statements an ownership of realty belonging, in fact, to his wife.
However, on January 18, 1974, Ann Pappas cosigned a guarantee of payment with her husband. The guarantee was intended as a further security to the earlier loan. There is at least a presumption that, in doing so, Ann Pappas intended to benefit the financial well-being of both spouses. There is nothing to indicate, however, that she did not expect to derive a personal benefit. Persons seldom obligate themselves without some expectation of gain in return.
Therefore, another presumption would exist, i.e., that Ann Pappas intended to benefit her own estate. The issue of consideration is a factual question and cannot be resolved solely by affidavit.
In Arber v Stahlin, 382 Mich 300; 170 NW2d 45 (1969), it was conclusively stated that summary relief is inappropriate where a question of fact turns on a witness’s credibility. Herein, the question of whether Ann Pappas intended her own estate to benefit by her co-signature on the guarantee of payment can only be resolved by Ann Pappas’ testimony and credibility.
Moreover, it should be readily apparent to one and all that the married women’s property act serves as a shield to familial security and protection of the innocent and that it does not serve as a sword to be utilized by the fraudulent in promoting their schemes.
IV. Conclusion.
This matter is reversed and remanded to the trial court with directions to consider the separate liability of Ann Pappas. Affirmed as to all other questions. Costs to plaintiff-appellee and cross-appellant.
Quinn, J., concurred. | [
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D. E. Holbrook, Jr., P. J.
This case arises under the teacher tenure act and deals with a tenured teacher’s right to appeal to the State Tenure Commission (hereafter "tenure commission” or "commission”) when the teacher, here acting in an administrative capacity, alleges a dismissal or demotion for economic necessity is a subterfuge for a dismissal or demotion for cause.
There is little dispute about the facts. The plaintiff, Robert Goodwin, commenced his employment with the defendant, Kalamazoo Board of Education, at the beginning of the 1960-1961 school year. Subsequently he gained tenure as a classroom teacher. In October 1965 plaintiff accepted an administrative position as Assistant Director of Buildings and Grounds and in July 1970 he accepted the position of Director of Buildings and Grounds.
At the beginning of the 1973-1974 school year the defendant advised plaintiff that the position of Director of Buildings and Grounds was being eliminated. Plaintiff reluctantly accepted a lower paying position as Supervisor of the Stockroom and expressly reserved all rights he had in his previous position. Seven months later plaintiff filed a petition with the tenure commission alleging the defendant school board violated the tenure act by "discharging and/or demoting the plaintiff, within the meaning of the tenure act, while completely ignoring the plaintiff’s rights under the teacher tenure act including reasonable and just cause, proper filing of charges, a hearing or statement of rights, and/or any other rights guaranteed him under Article IV, § 5 of the act.” Defendant countered, claiming the position was no longer necessary and that plaintiff was not discharged or demoted and therefore not entitled to charges, a hearing or statement of rights or any other procedures required when dismissing a tenured teacher for cause.
The tenure commission rendered a decision, ex pressly finding that plaintiff had tenure as Director of Buildings and Grounds, but also finding that there was no right to a school board hearing in an economic layoff situation and that plaintiff’s petition with the commission was untimely filed since filed after the 30-day statute of limitation period.
Plaintiff appealed the commission’s decision to circuit court and the court held that when a teacher alleges a termination for economic necessity is a mere subterfuge for what is in fact a discharge for cause and absent a showing of prejudice in the late filing by the school board, the 30-day statute of limitation for appeals to the tenure commission is tolled until a teacher is notified of his rights under the act. The court held that plaintiff’s petition was timely filed. Defendant’s appeal of this circuit court order is the subject of this appeal.
Before reaching the merits, however, we note a second decision of the tenure commission involving the same parties. Before the beginning of the 1975-1976 school year plaintiff was notified that the position of Supervisor of the Stockroom was being eliminated. Plaintiff accepted a position as a junior high school teacher with full reservation of rights and appealed again to the tenure commission. An important aspect of this second commission decision was its conclusion that one may gain tenure in an administrative position only where "certification” is required for that position. Since the Director of Buildings and Grounds did not require certification, the commission concluded that the plain tiff could not gain tenure in that position. The commission therefore determined that it did not have jurisdiction to hear plaintiff’s appeal.
Since the commission’s second decision amounts to a reversal of its first decision, upon which the circuit court order is based, and since both parties have argued various aspects of the commission’s second decision, we must consider this case in light of the second commission ruling.
I
The first question is whether the tenure commission has jurisdiction to hear plaintiff’s appeal. Those who have achieved tenure status in a school district are granted a statutory right to appeal a tenure-related decision-to the commission. MCLA 38.121; MSA 15.2021. We conclude that since plaintiff was granted tenure as Director of Buildings and Grounds, the commission has jurisdiction to hear his appeal.
The parties clash over the issue of whether plaintiff did, or even could, gain tenure as Director of Buildings and Grounds. The issue of "administrative tenure” has been extensively briefed by both parties and is addressed in the tenure commission’s second opinion. Because a resolution of this issue is central to plaintiff’s case and apparently a question of first impression, we examine it now.
Each party argues legislative history supports their respective interpretations of MCLA 38.91; MSA 15.1991. Defendant school board and the tenure commission argue that the only positions in which a teacher can gain non-classroom teacher tenure are those positions which require "certification” by the State Board of Education. The commission contends its expertise lies in the area of educational instruction and not in all aspects of running a K-12 school district. Accordingly, the school board and commission reason, since the Director of Buildings and Grounds does not require certification nor does it involve instructional supervision, plaintiff could never gain tenure in such a position. On the other hand, plaintiff argues that one may acquire tenure in those administrative positions which require the exercise of "supervisory and/or policy-making authority”. Plaintiff appends his official job description and argues he should be granted tenure since his job responsibilities include supervisory and personnel policy decisions. Essentially defendant, plaintiff and commission argue that the spirit of MCLA 38.91; MSA 15.1991 does or does not encompass plaintiffs position and urge us to find certain types of positions are included by or excluded from the statute as a matter of law.
Our interpretation of MCLA 38.91; MSA 15.1991 does not adopt the conclusion of either party or the tenure commission. We read the statute as authorizing individual school districts to determine which administrative positions should carry tenure. Whether a tenured teacher who accepts an administrative positions is to be granted tenure is to be determined by contract between the teacher/ administrator and school board. We reject the contentions of the parties and the commission that the statute should be interpreted to dictate categories of administrative positions which carry tenure as a matter of law. Only when a statute is ambiguous is a court forced to examine legislative intent. Collins v Motorists Mutual Insurance Co, 36 Mich App 424, 430; 194 NW2d 148 (1971). We believe the statute is clear on its face.
Prior to the 1963 amendment, the forerunner of MCLA 38.91; MSA 15.1991 read in pertinent part:
"After the satisfactory completion of the probationary period, a teacher shall be employed continuously by the controlling board under which the probationary period has been completed, and shall not be dismissed or demoted except as specified in this act: Provided, however, That when the controlling board of any school district shall speciñcally provide in each contract of employment of any teacher employed as superintendent, assistant superintendent, or principal, made with such teacher after the completion of the probationary period, that such teacher shall not be deemed to be granted continuing tenure in such administrative capacity by virtue of such contract of employment, then such teacher shall not be granted tenure in such administrative capacity but shall be deemed to have been granted continuing tenure as an active classroom teacher in such school district.” (Emphasis supplied.)
In short, the 1941 act allowed the school board to prevent, by contract, a tenured teacher who was serving as a superintendent, assistant superintendent or principal from gaining tenure in these particular positions. Absent an express contractual exclusion, the teacher would gain tenure in the particular administrative position.
In 1963 the statute was amended accordingly (deletions are lined through; additions are in all capitals):
"Sec. 1. After the satisfactory completion of the probationary period, a teacher shall be employed continuously by the controlling board under which the probationary period has been completed, and shall not be dismissed or demoted except as specified in this act. Frovidod, however, That whon IF the controlling board of any school distr-ief-shall specifically provide in eaeh A contract of employment of any teacher employed OTHER THAN as A CLASSROOM TEACHER, INCLUDING BUT NOT LIMITED TO, A superintendent, assistant superintendent, er principal, DEPARTMENT HEAD OR DIRECTOR OF CURRICULUM, made with such teacher after the completion of the probationary period, that such teacher shall not be deemed to be granted continuing tenure in such administrative capacity by virtue of such contract of employment, then such teacher shall not be granted tenure in such administrative capacity, but shall be deemed to have been granted continuing tenure as an active classroom teacher in such school district.”
This amendment expanded the categories in which a teacher could gain, or be excluded by contract from gaining, tenure in administrative capacities. The "including but not limited to” language allows a school district some flexibility in establishing what types of administrative positions should carry tenure status.
In view of the wide range in size of school districts, the statute enables local school boards to tailor their administrative tenure policies accordingly. The statute does not attempt to dictate uniform tenure policies for administrators in all school districts. One school board may not wish to allow school principals to gain tenure while another board may wish to allow the supervisor of the stockroom to gain tenure. These are decisions to be made by each school board and are to be given effect through contract provisions between the board and administrators.
If the contract of a tenured teacher acting as an administrator does not specify the individual is to be denied tenure, the statute stipulates that the individual is to be granted tenure in the adminis trative position. If the board does not want to grant tenure, it simply inserts a contractual provision denying tenure. The commission’s claims of lack of expertise in noninstructional fields are beside the point. Their task is to determine whether an individual administrator’s contract grants or denies tenure to that administrator. The commission need not look to the policies behind a school board’s decision to accord tenure to particular positions.
In view of the commission’s two decisions that plaintiff’s contracts as Director of Buildings and Grounds did not deny him tenure, plaintiff has achieved tenure in that position. The commission’s second decision denying tenure is erroneous since it relies on an incorrect interpretation of the statute.
However, we do not intend to imply a tenured position may not be validly eliminated or what plaintiff’s remedy or relief, if any, may be. Further we express no opinion as to whether plaintiff’s termination as Director of Buildings and Grounds was due to a valid or invalid reduction in personnel. The commission must evaluate the circumstances surrounding plaintiff’s termination and make factual findings. Our remand to the commission is necessary because the commission erroneously prejudged plaintiff’s claim on jurisdictional grounds rather than reaching the merits.
II
Since we conclude that the commission has jurisdiction we must address the issue of whether plaintiff’s petition was timely filed with the commission. As noted above, MCLA 38.121; MSA 15.2021 imposes a 30-day statute of limitations for appeals to the commission. Plaintiff filed his ap peal approximately seven months after the school board’s decision. The circuit court agreed with plaintiff that the 30-day limitation did not bar his appeal. The trial court issued the following order:
"1. The 30-day limitation for the filing of a petition with the State Tenure Commission in Article VI, § 1, of the Teacher Tenure Act does not bar a petition when a teacher alleges that his termination as a necessary reduction in personnel is a mere pretext for his discharge unless the controlling board of education has provided the teacher with notice of his rights under the Tenure Act and the controlling board proves actual prejudice resulting from the delay in filing the petition.
"2. The Petition of Appellant Robert Goodwin was timely filed with the State Tenure Commission because the Appellee Board of Education has not provided the Appellant with notice of his rights under the Teacher Tenure Act and actual prejudice to the Appellee resulting from the delay in filing has not been shown.”
We agree with the trial court.
When a teacher alleges his demotion or discharge on the grounds of "necessary reduction in personnel” is a mere subterfuge to deny a teacher his or her rights under the tenure act, the tenure commission has the responsibility to make a factual determination as to whether the board’s decision is in good faith or an excuse for a wrongful discharge or demotion. Freiberg v Board of Education of Big Bay De Noc School District, 61 Mich App 404, 414; 232 NW2d 718 (1975). In Freiberg the Court reasoned:
"If the school board’s declaration that a reduction in personnel is necessary is unreviewable, then the board is free to evade the limitations on its authority imposed by the teachers’ tenure act.” 61 Mich App at 414.
To ensure a board does not make arbitrary actions under the guise of "necessary reductions in personnel”, the tenure commission is empowered to review the board’s action.
In Biberstine v Port Austin Public School District No. 9, 51 Mich App 274; 214 NW2d 729 (1974), lv den, 392 Mich 766 (1974), the Court held that the 30-day statutory limitation for filing an appeal with the tenure commission is tolled when the board of education fails to give a teacher written notice of charges and a statement of rights under the act. Such notice and statement of rights, as well as a hearing, are required under MCLA 38.102; MSA 15.2002 upon discharge or demotion of a tenured teacher. However, notice, charges and a school board hearing need not be given when a teacher’s position is being eliminated due to a lack of funds. Steeby v School District of the City of Highland Park, 56 Mich App 395; 224 NW2d 97 (1974). In Steeby the Court concluded that there would be no real reason for "charges” or a school board hearing in an economic discharge situation since the teacher’s conduct or performance is not being called into question. There is no discussion whatever in Steeby regarding a teacher’s right to appeal an economic termination decision to the tenure commission.
A 30-day statute of limitations is an extremely rigorous requirement. In concluding the statute was tolled unless a teacher is given proper notification of his or her rights, the Court in Biberstine was obviously concerned that teachers will be unaware of the brief 30-day appeal period.
"In light of the board’s failure to notify the plaintiff of his rights under the teachers’ tenure act, it is not unlikely that plaintiff was unaware of his right to appeal to the State Tenure Commission. We hold, therefore, that where, as here, a board of education attempts to discharge a tenure teacher without fully complying with the various provisions of the teachers’ tenure act, the 30-day limitation in which the teacher has to appeal to the State Tenure Commission is tolled until such time as the school board makes its decision in accordance with the teachers’ tenure act. Our holding is based upon sound reasoning and common sense. To rule otherwise would permit a school board to unilaterally circumvent the procedural safeguards of the teachers’ tenure act by its own wrongdoing.” (Emphasis supplied.) 51 Mich App at 278.
While Biberstine deals with a situation where the school board was discharging for cause, the statutory appeal period is the same in an economic termination case and the need for notification of the teacher’s right to appeal is equally great.
We must read Biberstine in light of Freiberg. If a teacher is to be afforded the right to tenure commission review of a board’s "economic necessity” termination, the teacher must be properly notified of his or her right to that review. When, as here, a teacher alleges that a termination for economic necessity is a mere subterfuge, he or she is, in effect, alleging that the termination is a discharge or demotion without reasonable cause. To allow a board to discharge on the pretext of economic necessity, not inform the teacher of appeal rights and then hold the teacher to the 30-day limit would allow the board to profit from its own wrongdoing.
Defendant school board argues that it will never know when a teacher will allege a discharge is a subterfuge and a teacher may challenge a termination months or years after it occurs. We agree with the trial judge’s response to this argument— to forestall any appeals after the 30-day period the board can notify a teacher of the right to appeal a termination, whether for cause or economic neces sity. Presumably a teacher will be notified of an economic termination in writing so it would not seem too great a burden to append a statement of the right to appeal to the tenure commission.
The teachers’ tenure act must be construed liberally in favor of protecting teachers’ rights. Weckerly v Mona Shores Board of Education, 388 Mich 731, 734; 202 NW2d 777 (1972), Freiberg, supra, at 412. A major purpose of the act is to eliminate arbitrary and capricious demotions or dismissals by boards of education. By allowing a board to disguise a discharge or demotion for cause as one for economic necessity and not notify the teacher of his or her right to appeal would undermine a major purpose of the tenure act.
We therefore hold that the 30-day statute of limitations for appeals to the tenure commission is tolled until a teacher is notified of his right to appeal. This holding is not in any way in conflict with Steeby, supra, which deals only with charges, notice and hearing before the school board in an economic layoff situation and does not deal with notification of a teacher’s right to appeal to the tenure commission.
Affirmed and remanded to the teachers’ tenure commission for factual findings. No costs, interpretation of a statute being involved.
MCLA 38.71 et seq.; MSA 15.1971 et seq.
MCLA 38.105; MSA 15.2005.
MCLA 38.121; MSA 15.2021.
See text of the circuit court order, infra.
"Certification” is defined and granted by the Michigan Department of Education and, in general, indicates qualification for a particular position, whether teaching or administrative.
We note also that plaintiff retains his tenure as a classroom teacher despite promotions to, or demotions from, administrative positions. MCLA 38.91; MSA 15.1991. | [
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Per Curiam.
On May 11, 1976, defendant was convicted of delivery of heroin, contrary to MCLA 335.341(l)(a); MSA 18.1070(41)(l)(a), following a jury trial in Kent County Circuit Court. Defendant was also convicted of being a second offender under MCLA 335.348; MSA 18.1070(48). Defendant was sentenced May 26, 1976, to a prison term of from 5 to 40 years. He appeals as of right.
An addict-informer allegedly made a heroin purchase from defendant with money obtained from police officers. The prosecution’s case rested on the testimony of the addict-informer. The possible personal interests, biases and prejudices of the addict-informer were brought out during the trial. The only issue on appeal raised by defendant concerns the trial court’s refusal to give a requested instruction that an addict-informer’s testimony deserved special scrutiny by the jury.
At the time of defendant’s trial the law in Michigan was that an instruction such as that requested by defendant was unnecessary. People v Foster, 68 Mich App 276, 278-279; 242 NW2d 553 (1976), People v Martin, 53 Mich App 321; 220 NW2d 186 (1974), People v Atkins, 47 Mich App 558; 209 NW2d 735 (1973), lv granted, 391 Mich 766 (1974). Therefore it was not error for the trial court to refuse to give the requested instruction.
Subsequent to defendant’s trial, the Supreme Court decided People v Atkins, 397 Mich 163; 243 NW2d 292 (1976). In Atkins, the Supreme Court, at 170, noted that it "would not be adverse” to an instruction similar to the one requested in the instant case. In the future, therefore, an instruction concerning special scrutiny of the testimony of addict-informants should be given upon request, where the testimony of the informant is the only evidence linking the defendant to the offense. We note that a majority of the Supreme Court in Atkins, 397 Mich at 171, refused to adopt an argument similar to defendant’s argument that the logic of People v McCoy, 392 Mich 231; 220 NW2d 456 (1974), changed the law in Michigan and made it necessary that the instruction in question be given. The circumstances in McCoy are distinguishable, as mentioned by the Supreme Court in Atkins, and we do not find that McCoy affects the decision in this case.
Affirmed.
CJI 5:2:04 suggests the form for such an instruction. | [
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M. F. Cavanagh, J.
On September 13, 1973, defendant Otis Van Slyke was driving his automobile when it collided with another vehicle. Defendant-appellant, Vera Van Slyke, was a front seat passenger in the vehicle driven by Mr. Van Slyke. Mr. and Mrs. Van Slyke were husband and wife and living in the same household at the time of the accident.
Defendant-appellant Vera Van Slyke instituted suit in Muskegon County Circuit Court, alleging that the defendant, Mr. Van Slyke, was guilty of negligence for having proceeded into the intersection against a red traffic signal and otherwise having failed to make proper observations and drive with due care and caution. Mrs. Van Slyke alleged that she had sustained severe and permanent injuries as a result of Mr. Van Slyke’s negligence.
Mr. Van Slyke sought the defense of the plaintiff-appellee, Detroit Automobile Inter-Insurance Exchange (hereinafter DAIIE). However, DAIIE refused to defend Mr. Van Slyke, maintaining that an exclusion in the policy issued to Mr. Van Slyke precluded coverage of Mr. Van Slyke for injuries incurred by his wife, Vera Van Slyke. DAIIE thereafter commenced a declaratory action in Kent County Circuit Court, seeking a determination of the parties’ respective rights. The case was submitted to the circuit judge upon briefs, and the trial judge issued a declaratory judgment in which he held that under the terms of the insurance policy issued by the DAIIE to Mr. Van Slyke, the latter was not provided liability coverage for injuries sustained by his wife. The court further ruled that an exclusionary clause in the automobile liability insurance policy was valid and enforceable, citing Weisberg v Detroit Automobile Inter-Insurance Exchange, 36 Mich App 513; 194 NW2d 193 (1971), as controlling. It is this determination which the defendant-appellant, Vera Van Slyke, appeals to this Court as of right. The original negligence action which was instituted in Muskegon County Circuit Court is being held in abeyance until this Court makes its determination on the propriety of the Kent County Circuit Court declaratory judgment.
The liability provisions of the policy issued to defendant, Otis Van Slyke, provided that the insured would be covered for bodily injury and property damage claims arising out of the insured’s operation, ownership or maintenance of a motor vehicle.
In the same section of the insurance policy is found a list of exclusions which limited Mr. Van Slyke’s liability protection under the policy. One of them provides that:
"This policy does not apply under Section I: (a) to bodily injury to any named insured.” (Emphasis supplied.)
Appellee contends, and the trial court found, that Mrs. Van Slyke was included under the definition of "named insured” employed in the policy, and that Mr. Van Slyke was therefore without liability protection as against bodily injury sustained by Mrs. Van Slyke. Appellant contends that the definition of "named insured” as used in the policy was ambiguous, and that the term should be construed so as not to include her within its definition. Assuming that the exclusion does in fact apply to her, she maintains that the exclusion is invalid and unenforceable because violative of public policy. Failing this, she finally maintains that if she was not covered under the liability provision of the insurance policy issued by DAIIE, then she would be entitled to recover from the uninsured motorists accident claims fund.
We will first address appellant’s claim that the term "named insured” as contained in the exclusion clause of the policy is ambiguous, requiring us to invalidate the exclusion.
The definition of "named insured” is contained in § I of the policy form:
" 'Named insured’ means the person or persons named in Item I of the Declaration Certificate, and if an individual, includes the spouse, if a resident of the same household. ”
Clearly, the definition of "named insured” contemplated both the person named in the Declaration Certificate and the spouse of that person. We find no ambiguity with respect to the definition of "named insured” within the policy. The exclusion clause by its terms clearly denies Mr. Van Slyke coverage for injuries sustained by his wife, Mrs. Van Slyke. She was a "named insured” under the definition contained in the policy. The trial court did not err in this regard.
We turn now to appellant’s contention that an exclusionary clause which denies coverage to an insured for claims brought against him by a third person, defined by the policy as a "named insured”, violates public policy and is therefore void.
On September 2nd, 1973, when the policy involved in the case at bar was issued, persons who owned or operated motor vehicles on Michigan highways were required to have an insurance policy in effect with liability coverage as specified in MCLA 500.3009; MSA 24.13009. That statute provides that no automobile liability policy shall be delivered or issued for delivery in this state unless it provides liability coverage of specified minima. The statute provides for only one exclusion, clearly inapplicable here. The exclusion contained in the policy before this Court is not authorized by the statute.
In Citizens Mutual Insurance Co v Central Na tional Insurance Co of Omaha, 65 Mich App 349; 237 NW2d 322 (1975), the Court construed the statute to prohibit and render void and unenforceable an exclusionary clause not provided for therein. We find the reasoning of Citizens Mutual persuasive and controlling in the instant case.
Appellee, and the lower court, would base a contrary result on Weisberg v Detroit Automobile Inter-Insurance Exchange, 36 Mich App 513; 194 NW2d 193 (1971). In Weisberg a split panel held that a liability policy which denied coverage for injuries to the vehicle’s owner did not violate public policy.
The Weisberg majority reached this result by defining the legislative purpose behind § 3009’s predecessor as "the protection of the rights and claims of third parties when the vehicle owner becomes liable to those third parties”. 36 Mich App at 518; 194 NW2d at 195. Since the vehicle owner in Weisberg was the injured party, there could be no liability running from him to the injured party, and hence denying him recovery did not contravene the legislative purpose.
The error in this reasoning, as was pointed out in a thorough and persuasive dissent by Justice (then Judge) Levin, is that the automobile liability insurance laws in effect at that time required (even as they do now) that not only the owner but also the operator of the vehicle be covered by liability insurance. Surely this indicates a legislative policy to assure all those injured by another’s negligent operation of a motor vehicle a source of recovery. Because this class could, as it did in Weisberg, include the owner himself, there was in fact a conflict between the presumed legislative policy and the exclusionary clause upheld in Weisberg.
However, even if it were assumed that the Weisberg majority correctly concluded that public policy authorizes an exclusion which denies the owner recovery, that holding would not control here. Plaintiff-appellee alleged in its complaint, and defendant admitted, that the insurance policy issued in the. instant case provided coverage for a vehicle owned and operated at the time of the accident by Otis Van Slyke. Even if Weisberg’s holding were correct, it would not justify denying coverage to Mr. Van Slyke’s passenger and non-owner spouse, to whom he may be liable.
In view of our determination that the exclusion here is void as contrary to public policy, appellant’s alternate claim to relief from the accident claims fund is moot.
Reversed, costs to appellant.
M. J. Kelly, P. J., concurs in the result only.
MCLA 257.1104; MSA 9.2804, MCLA 257.1102; MSA 9.2802.
MCLA 500.3009(2); MSA 24.13009(2):
"When authorized by the insured, automobile liability or motor vehicle liability coverage may be excluded when a vehicle is operated by a named person. Such exclusion shall not be valid unless the following notice is on the face of the policy or the declaration page or certificate of the policy and on the certificate of insurance referred to in subsection (3) of section 4 of Act No. 198 of the Public Acts of 1965, as amended, being section 257.1104 of the Compiled Laws of 1948: Warning — when a named excluded person operates a vehicle all liability coverage is void — no one is insured. Owners of the vehicle and others legally responsible for the acts of the named excluded person remain fully personally liable.”
As the statute clearly states, this exclusion, where applicable, eliminates all liability coverage, as opposed to the denial of recovery by a single person, a named insured, for which appellee here contends. In the instant case there is neither ground nor effort to support an argument that the exclusion was made a part of the policy.
Cf. Gurwin v Alcodray, 77 Mich App 97; 257 NW2d 665 (1977). In Gurwin the insurance policy contained a clause excluding liability to members of the insured’s household. The insured sued for a declaratory judgment that this clause was void as applied to deny coverage for liability to the insured’s children. The lower court found the clause invalid and this Court affirmed, reasoning that the exclusion was unauthorized by statute and therefore invalid.
MCLA 257.520; MSA 9.2220, as incorporated by reference in former MCLA 257.1102(d); MSA 9.2802(d), amended by 1971 PA 211, § 1, Eff Dec 29, 1971. See Citizens Mutual Insurance Co v Central National Insurance Co of Omaha, 65 Mich App 349; 237 NW2d 322 (1975). | [
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Per Curiam.
Plaintiff appeals from a trial court order denying a request for partition of certain real property.
At trial, plaintiff adduced evidence to show that she was persuaded to leave her employment and live with defendant by his false statements concerning his marital status and promise to marry plaintiff. Defendant allegedly stated that he was divorced from his previous wife. Plaintiff discovered this statement to be false, whereupon she ceased cohabiting with him. However, in the interim, the litigants acquired certain real property, taking title as tenants by the entireties. That property is the subject of this litigation.
Where a couple is not married, they cannot take an estate as tenants by the entireties. See Scott v Grow, 301 Mich 226, 234; 3 NW2d 254 (1942). Should they attempt to take property as tenants by the entireties, the court will declare them to be either joint tenants or tenants in common. In the instant case the trial court declared the parties to be joint tenants and we cannot disagree. The historic unities of time, title, interest, and possession were present. Further, that the parties took title as tenants by the entireties expresses an apparent intent that their ownership should assume the form of joint tenants, albeit they are not legally entitled to the special incidents of the entireties form of ownership.
MCLA 600.3304; MSA 27A.3304 provides that a joint tenant may have his land partitioned. The Supreme Court, in Henkel v Henkel, 282 Mich 473; 276 NW 522 (1937), ruled that when a party requests partition the court is obligated to comply unless some superior equity exists that warrants refusal. If the lands cannot be physically divided without prejudicing the parties, then the court must sell the property and divide the proceeds. MCLA 600.3332; MSA 27A. 3332, Henkel, supra.
In the instant case, we can find no equities that would warrant a denial of partition. The fact that the parties took the property as tenants by the entireties does not evidence an intent on their part not to allow partition. Such an intent has only been found in cases where a joint tenancy is created, and the parties expressly declare that there is to be a right of survivorship. See Ballard v Wilson, 364 Mich 479; 110 NW2d 751 (1961), Ames v Cheyne, 290 Mich 215; 287 NW 439 (1939). In such cases, the express creation of a right of survivorship has been said to create life estates in the tenants with a remainder in fee simple to the survivor. Ballard, supra. Under these circumstances, the Court has ruled that a party cannot sell or partition his interest.
This Court believes that the rule enunciated in Ames and Ballard should be limited to cases involving joint tenancies where a right of survivor-ship has been expressly created. To rule otherwise would make the plaintiffs interest in the property practically inalienable. This Court favors the alien-ability of property.
Since defendant was married at the time he and plaintiff bought the land, his wife has the right to claim a dower interest in the property. However, her interest will not affect partition since MCLA 600.3340; MSA 27A.3340 gives a court the right to partition property in which a dower interest exists, even if the wife has not released her interest. Since the wife’s interest attaches only to her hus band’s share, on partition it will not reduce any amount which is due to plaintiff.
We also note that evidence of fraud has been presented to the trial court. In adjusting the relative equities of the litigants vis-á-vis their interests in the property, the trial court may take this factor into consideration. As a court of equity, effecting justice and equality among the parties, the court should not permit a party to profit from wrongful conduct.
Because this Court can find no reason to deny partition, it must reverse the trial court. This case is remanded for proceedings consistent with this opinion.
Reversed and remanded. Costs to plaintiff. | [
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0.0164794921875,
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] |
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