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Per Curiam:.
On June 18, 1971, plaintiff received an injury in the course of his employment which left him a totally disabled paraplegic. At the time he was injured, plaintiff was 19 years old, attending college with the intention of becoming a teacher, and employed part-time at the Meijer store. Following the injury, compensation equaling two-thirds of plaintiffs average weekly wage was voluntarily paid. At a hearing before an administrative law judge, plaintiff was held to be entitled to additional payments by virtue of MCL 418.359; MSA 17.237(359). The Workers’ Compensation Appeal Board affirmed the decision. Defendants now appeal the granting of the maximum scheduled benefits to plaintiff.
This Court limits review of Workers’ Compensation Appeal Board decisions to questions of law involved in the case. Questions of fact decided by the board are conclusive if the correct legal standard has been applied.
MCL 418.359; MSA 17.237(359) provides:
"Whenever an employee who has not attained his twenty-fifth birthday is injured so that he is entitled to compensation as permanently and totally disabled as defined in this act, if it is established that the injured employee was of such age and experience when injured that, under natural conditions, his wages or position would be expected to increase, that fact, subject to the statutory minimum and maximum weekly payments, may be considered by a hearing referee in determining his weekly payments.”
Defendants argue that plaintiff should not receive maximum benefits until 1974, when he would have finished college and begun earning a wage sufficient to support such benefits.
In applying the statute, the majority of the board determined that plaintiff was under 25 years of age and was of such age and experience at the time of the injury that his wages or position would be expected to increase. The decision noted that § 359 does not require a determination that those contingencies would, in fact, occur.
Therefore, there need not be an actual showing that plaintiff’s wages or position would actually increase sometime in the future. A holding that the board would have to determine when (or if) plaintiff would have completed his education and when (or if) plaintiff would have attained employment would require a high degree of speculation and pose evidentiary problems of an unusual nature. Clearly, this would not seem to have been the intent of the Legislature.
In ordering the additional compensation, the board relied on Schram v Witt Jewelry Co. The facts and reasoning in that case are nearly identical to the case at bar. The board, in Schram, also awarded the maximum weekly benefits to a 19-year old who, as did plaintiff in the instant case, planned to continue his college education with the intention of becoming a teacher at the time he became permanently disabled.
In the instant case, the board considered plaintiffs age and experience and determined that they would increase under natural conditions. We find that the board applied the correct legal standard in reaching its conclusion.
Affirmed.
Const 1963, art 6, §28, MCL 418.861; MSA 17.237(861), Askew v Macomber, 398 Mich 212; 247 NW2d 288 (1976), LaForest v Vincent Steel Processing, Division of Letts Industries, 59 Mich App 386; 229 NW2d 466 (1975), aff’d 395 Mich 364 (1975).
1972 WCABO 1171, lv den Court of Appeals Docket No. 14,878 (1972), lv den 389 Mich 756 (1972). | [
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Per Curiam.
Plaintiff, Ronald Fiser, appeals the entry of summary judgment for defendants City of Ann Arbor and Ann Arbor police officers David L. Miller, Donald Terry, and Walter Lunsford. In his complaint against these defendants, plaintiff sought damages for injuries sustained in an automobile accident involving plaintiff’s car and a car driven by Michael Lehman, who was being chased by an Ann Arbor police car driven by defendant Lunsford at the time of the accident.
In the early morning hours of October 19, 1975, plaintiff was driving his automobile south on South Main Street in Ann Arbor. At the same time an automobile driven by Michael Lehman was proceeding east on Madison Street toward the intersection of Madison and South Main. Lehman was being pursued by a fully marked Ann Arbor police car with activated emergency sirens and overhead oscillating lights. Traveling at a high rate of speed, Lehman disregarded the flashing red light at the intersection, entered the intersection without stopping, and struck plaintiff’s car, causing personal injury to plaintiff.
All three of the defendant police officers had been involved in the chase of the vehicle driven by Lehman. Lehman had first been seen by defendants Miller and Terry when he failed to stop for a flashing stoplight. Lehman ignored the officers’ signal to stop. Officer Miller, the driver of the police car, activated the overhead emergency lights and began to pursue Lehman. Lehman increased his speed. At some point in the pursuit Lehman lost control of his vehicle. After being struck by the police car, Lehman’s car came to a stop. As Officer Terry left the police car, Lehman sped away again, nearly running down Officer Terry.
Officer Miller continued to pursue Lehman’s vehicle. After following him the wrong way on a one-way street, Miller lost track of the Lehman car. Officer Lunsford, who was also operating a fully marked Ann Arbor police car and who had received a radio report of the high-speed chase, the collision with Officer Terry, and a description of the Lehman vehicle spotted Lehman’s car and began pursuit with his emergency light and siren activated. Lunsford pursued Lehman for approximately six blocks at a maximum speed of about 55 miles per hour. Lunsford saw Lehman ignore a stop sign, make an improper turn, disregard the flashing red light at Madison and South Main, and strike the car driven by plaintiff. According to Lunsford, Lehman’s car had been going faster than 55 miles per hour.
Plaintiff alleged that his injuries were caused by the negligence of defendant police officers. Defendants moved for summary judgment. In ruling on the motion, the trial court reviewed the affidavits of the police officers, the allegations of plaintiff’s amended complaint, and testimony given by Offi cer Lunsford at the hearing on the motion for summary judgment. The court identified two theories of negligence advanced by plaintiff: (1) defendant officers’ negligent decisions to continue their pursuit of Lehman, and (2) defendant officers’ negligent operation of their police cars. Summary judgment was entered for all defendants on both theories.
With respect to plaintiff’s first theory, we affirm entry of summary judgment for defendants. Defendant City of Ann Arbor is statutorily immune from liability under this theory since the operation of a police department is a governmental function. MCL 691.1407; MSA 3.996(107). Walkowski v Macomb County Sheriff, 64 Mich App 460; 236 NW2d 516 (1975), Berger v City of Berkley, 87 Mich App 361; 275 NW2d 2 (1978), lv den 406 Mich 969 (1979).
The defendant police officers are protected from liability for tortious acts committed in the scope of their employment if their acts are "discretionary” and not "ministerial”. Antkiewicz v Motorists Mutual Ins Co, 91 Mich App 389, 397; 283 NW2d 749 (1979), Bush v Oscoda Area Schools, 405 Mich 716, 734; 275 NW2d 268 (1979) (opinions of Moody, J., and Coleman, C.J.). In our judgment, the decision of a police office to pursue and to contine to pursue a fleeing motorist, under circumstances like those in this case, is a discretionary act which is protected by immunity from tort liability. See Bratt v City and County of San Francisco, 50 Cal App 3d 550, 553; 123 Cal Rptr 774 (1975), Sparks v City of Compton, 64 Cal App 3d 592, 596; 134 Cal Rptr 684 (1976).
Under his second theory of liability for negligence, plaintiff sought to avoid governmental immunity through the motor vehicle exception:
"Governmental agencies shall be liable for bodily injury and property damage resulting from the negligent operation by any officer, agent, or employee of the governmental agency, of a motor vehicle of which the governmental agency is owner, as defined in Act No. 300 of the Public Acts of 1949, as amended, being sections 257.1 to 257.923 of the Compiled Laws of 1948.” MCL 691.1405; MSA 3.996(105).
With respect to defendants Officers Miller and Terry, we affirm entry of summary judgment under plaintiff’s second theory. It is undisputed that these officers did not operate or even occupy the police car which was pursuing the Lehman car at the time of the accident with plaintiff’s car. Their sole participation, if any, at the time of the accident was in making the decision to chase. As noted above, they are protected from liability for any negligence in making that decision.
We next address the question concerning the liability of Officer Lunsford and the City of Ann Arbor with respect to Lunsford’s allegedly negligent operation of the police vehicle.
We are of the view that plaintiff’s injury was not caused by any "negligent operation * * * of a motor vehicle” by an employee of the City of Ann Arbor within the meaning of MCL 691.1405; MSA 3.996(105).
Certainly, an officer responding in an emergency situation must act in a reasonable manner. Officer Lunsford was required to pursue Lehman with due regard for the safety of the public in mind. But even if Officer Lunsford was operating his police vehicle negligently during the course of his pursuit of Lehman, that negligence was not a proximate cause of plaintiff’s injuries since Officer Lunsford’s vehicle was not involved in the accident in which plaintiff was injured. The accident was directly caused by the negligent driving of Lehman, who was attempting to flee from an officer performing his duties. Whereas Lunsford’s decision to chase may have been a contributing cause of the injuries suffered by plaintiff, the manner in which Luns-ford drove the police vehicle was not. Since both the city and the officers are immune from liability for the making of the decision to pursue, summary judgment was properly granted.
The decision of the circuit court is affirmed. | [
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Per Curiam.
These cases were consolidated for appeal from final orders entered in Ingham County Circuit Court in separate, but virtually identical, actions brought against the Michigan Department of Management & Budget under the Freedom of Information Act (FOIA), 1976 PA 442; MCL 15.231 et seq.; MSA 4.1801(1) et seq. In Nos. 72112 and 72113, the Michigan State Employees Association (MSEA) sought under the FOIA the names and addresses of all employees in the Institutional and Business and Administrative Bargaining Units of the State Civil Service. In No. 72179, the Michigan Association of Governmental Employees (MAGE) sought under the FOIA the names and addresses of all employees classified as excluded employees under the civil service employee-relations policy. In each case, summary judgment was granted to the plaintiff and defendant has appealed. We affirm.
In all three cases the defendant had offered to provide a list of the names and work-station ad dresses for the employees. Plaintiffs rejected this offer and requested the employees’ home addresses.
However, on appeal the defendant has stated that the sole issue is whether the privacy exemption of FOIA, § 13(l)(a), permits defendant to exempt a list of employees’ names and home addresses from disclosure to a union or employee organization seeking such list to assist it in an organizational drive.
The FOIA applies to all public records and separates them into two classes: (i) those which are exempt from mandatory disclosure under § 13, and (ii) all others which must be disclosed. MCL 15.232(c); MSA 4.1801(2)(c). In the trial court the parties agreed that the requested lists of home addresses are public records, that defendant is a public body and that plaintiffs followed proper procedures in requesting disclosure of such information under the FOIA. The parties also agree that § 13(l)(a) provides that:
"A public body may exempt from disclosure as a public record under this Act:
"(a) Information of a personal nature where the public disclosure of the information would constitute a clearly unwarranted invasion of an individual’s privacy.”
The § 13 exemptions are not an absolute bar to disclosure. The first sentence of § 13(1) states that a public body may exempt from disclosure public records falling under one of the listed exemptions. Thus, the public body has discretion to disclose public records exempt under § 13.
The parties agree that the sole issue of the case is simply whether the employees’ home addresses fall under the privacy exemption of § 13(l)(a).
This issue has been decided in Tobin v Civil Service Comm, 416 Mich 661; 331 NW2d 184 (1982), International Union, United Plant Guard Workers of America v Dep’t of State Police, 118 Mich App 292; 324 NW2d 611 (1982), and Penokie v Michigan Technological University, 93 Mich App 650; 287 NW2d 304 (1979). The three cases all required the employer to disclose the names and addresses of its employees.
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Per Curiam.
In December 1981, James L. Carter in propria persona filed a complaint in the United States District Court for the Eastern District of Michigan claiming that he had been discharged from his employment with defendant in violation of Title VII of the Civil Rights Act. Carter subsequently retained an attorney and, on January 25, 1982, he and his wife filed an action in the Wayne Circuit Court alleging that he had been discharged by defendant in violation of an employment contract. The federal action was dimissed on October 22, 1982, due to James Carter’s failure to obey orders of the court to attend the final (and apparently the second scheduled) pretrial conference and for lack of progress. Thereafter, defendant moved for accelerated and/or summary judgment on the grounds of res judicata and failure to exhaust contractual remedies. Due to the withdrawal of plaintiffs’ attorney, they were granted additional time to obtain substitute counsel and prepare for the motion. On March 4, 1983, defendant’s motions were denied, but on rehearing, the trial court, by opinion dated August 23, 1983, and by order dated September 7, 1983, granted defendant’s motion for accelerated judgment on the basis of res judicata.
We find that the instant case is controlled by Brownridge v Michigan Mutual Ins Co, 115 Mich App 745; 321 NW2d 798 (1982), and, thus, affirm the judgment rendered below. In Brownridge, the plaintiff had initially filed an action in federal court claiming that her discharge was the result of sex discrimination. Pursuant to stipulation, the action was dismissed with prejudice. Prior to the dismissal of the federal action, plaintiff had filed suit in state court alleging that her discharge was the result of her refusal to engage in certain discriminatory "redlining” practices.
Michigan has adopted the broad application of the rule of res judicata. Gose v Monroe Auto Equipment Co, 409 Mich 147; 294 NW2d 165 (1980); Gursten v Kenney, 375 Mich 330; 134 NW2d 764 (1965). Under this theory, claims that were actually litigated are barred from the second action, as well as "those claims arising out of the same transaction which plaintiff would have brought, but did not”. Gose, supra, p 160. Further explication of the scope of the doctrine is found in Harrington v Huff & Mitchell Co, 155 Mich 139, 142; 118 NW 924 (1908), where the Supreme Court stated:
"The plea of res judicata applies, except in special cases, not only to points upon which the court was actually required by the parties to form an opinion and pronounce a judgment, but to every point which properly belonged to the subject of litigation, and which the parties, exercising reasonable diligence, might have brought forward at the time.”
We find that the present factual situation is almost identical to the situation which existed in Brownridge and agree with the Brownridge panel that because "both actions arose out of the same discharge from employment, both actions arose 'out of the same transaction’, both actions involved 'point[s] which properly belonged to the subject of litigation’, and both involved 'the same matter in issue’ ”. 115 Mich App 748. Had plaintiff sought to have his state claim joined with his federal case, the federal judge would have had the discretion to hear and decide the issue under the court’s pendent jurisdiction. See, e.g., United Mine Workers of America v Gibbs, 383 US 715; 86 S Ct 1130; 16 L Ed 2d 218 (1966).
Unlike Brownridge, the present case involves not a voluntary dismissal but an involuntary dismissal for failure to comply with court orders and for lack of progress. Both dismissals were with prejudice. The question is whether the October 22, 1982, dismissal of plaintiff’s federal action constitutes an adjudication on the merits. Based on federal and state authority, we find that, under the circumstances of this case, the dismissal is a final judgment on the merits.
An involuntary dismissal pursuant to Fed R Civ P 41(b) is an adjudication on the merits unless the court in its order of dismissal provides otherwise. Dismissal under this rule is proper for plaintiff’s failure to prosecute or for plaintiff’s failure to comply with the court rules or any order of the court. 2B Barron & Holtzoff, Federal Practice & Procedure, § 916, pp 134-135. Although it is recognized that a dismissal with prejudice is a harsh and drastic sanction, the matter resides within the discretion of the federal trial court. 2B Barron & Holtzoff, Federal Practice & Procedure, §§ 917-918, pp 136-145. While such a dismissal may be overturned, it appears that plaintiff has made no attempt to appeal the dismissal or to reinstate his case and has made no claim of excuse or justification for the failure to prosecute the federal action.
Similarly, in Michigan practice, an involuntary dismissal due to plaintiff’s failure to comply with the court rules or any order of the court will operate as an adjudication on the merits unless the order of dismissal provides otherwise. GCR 1963, 504.2. While a ministerial "no-progress” dismissal might not constitute an adjudication on the merits, a dismissal on motion of the defendant and by order of the court, after judicial consideration, would most likely be considered an adjudication on the merits. Caughey v Rozycki, 22 Mich App 317; 177 NW2d 257 (1970); Corley v Krawczak, 34 Mich App 472; 191 NW2d 514 (1971); Green v Wayne Soap Co, 33 Mich App 74; 189 NW2d 729 (1971), rev’d 385 Mich 785; 189 NW2d 220 (1971). While recognizing that the federal court dismissal was not preceded by a motion to dismiss by defendant, we find that the order was not a ministerial dismissal entered in a routine fashion but, instead, was a discretionary determination of the federal judge based on the individual facts of the case. We believe that under both federal and Michigan law, the involuntary dismissal was an adjudication on the merits, thus barring plaintiff’s state action.
We have considered plaintiffs’ allegation of error and find that the trial court properly granted defendant’s motion for accelerated judgment based on the prior dismissal of the federal claim. Although cognizant of the fact that plaintiff James Carter proceeded in propria persona in federal court, we are not persuaded that his decision to act without the aid of counsel entitles him to the relief he seeks. He was apparently able to obtain counsel within a short time after he filed his federal court action. We believe that, in the exercise of reasonable diligence, he could have brought all issues involved in his discharge in a single proceeding.
Affirmed.
Plaintiffs claim is based on the contract theory discussed in Touissant v Blue Cross & Blue Shield of Michigan, 408 Mich 579; 292 NW2d 880 (1980). | [
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Bronson, J.
Defendant, Roadway Express, Inc., appeals as of right from an order of summary judgment entered in favor of plaintiff, Citizens Insurance Company of America.
The relevant facts are undisputed. On September 21, 1981, Roadway’s employee, James A. Lang, was injured during the course of his employment. Upon arriving at a delivery location, Lang exited from the cab portion (tractor) of Roadway’s 45-foot-long tractor-trailer combination and walked to the rear of the storage portion (trailer). In an attempt to open the trailer’s overhead door, Lang fell off the trailer’s rear ICC bar and injured his back.
Lang petitioned Roadway for no-fault benefits exceeding his workers’ compensation disability benefits. Roadway, which was self-insured, refused Lang’s claim because the trailer portion of the tractor-trailer was not licensed in Michigan and had not been in the state long enough to require insurance coverage. Lang then applied for benefits from Citizens, the no-fault carrier for his private automobile. Citizens accepted the claim and began paying benefits.
Citizens commenced this action against Roadway seeking declaratory relief under GCR 1963, 521, and requesting that the circuit court find that Roadway was the proper party to pay Lang’s benefits. On February 25, 1983, Citizens filed a motion for summary judgment; and, on March 2, Roadway filed a cross-motion for summary judgment, requesting that the court find Citizens liable for Lang’s benefits. After hearing both motions, the circuit court found that Roadway was the proper party to pay Lang’s benefits.
The motions for summary judgment were brought pursuant to GCR 1963, 117.2(3), and both parties filed supporting affidavits. We agree with the circuit court that there was no genuine issue as to any material fact; however, we find that Roadway, not Citizens, was entitled to judgment as a matter of law. Rizzo v Kretschmer, 389 Mich 363, 372; 207 NW2d 316 (1973).
Under MCL 500.3101(1); MSA 24.13101(1), the owner or registrant of a motor vehicle required to be registered in this state must maintain security for payment of no-fault insurance benefits. However, an owner or registrant of a motor vehicle not registered in Michigan must maintain the requisite security for payment of benefits under the Michigan no-fault insurance act only if the vehicle is operated in Michigan for more than 30 days in any year, MCL 500.3102(1); MSA 24.13102(1).
Roadway submitted uncontroverted affidavits stating that its trailer was registered in the State of Tennessee and had not been operated in Michigan for more than 30 days during the preceding calendar year. Roadway argues, therefore, that its trailer was a motor vehicle not covered by the requirements of the no-fault act and consequently Roadway is not liable for payment of Lang’s benefits. Covington v Interstate System, 88 Mich App 492; 277 NW2d 4 (1979).
On the other hand, Roadway, was subject to the provisions of the no-fault act with respect to the tractor. Citizens contends that, under the no-fault insurance act, the tractor-trailer unit is a single "motor vehicle” and Roadway, as the self-insurer of the unit, was liable for payment of Lang’s benefits.
A motor vehicle required to be registered in this state is subject to the security requirements listed in MCL 500.3101(1); MSA 24.13101(1). "Motor vehicle” is defined in MCL 500.3101(2)(c); MSA 24.13101(2)(c) as follows:
"(c) 'Motor vehicle’ means a vehicle, including a trailer, operated or designed for operation upon a public highway by power other than muscular power which has more than 2 wheels. Motor vehicle does not include a motorcycle or a moped, as defined in section 32b of Act No. 300 of the Public Acts of 1949.”
The sole issue presented in this case is whether the trailer is a separate and distinct "motor vehicle” within the meaning of the no-fault act. If it is, Roadway, as the owner of a motor vehicle which is not subject to the provisions of the Michigan no-fault insurance act, is relieved from payment of no-fault insurance benefits. Covington, supra.
The instant case presents a novel question of statutory construction. We do not find the cases cited by Citizens, Sherman v Michigan Mutual Ins Co, 124 Mich App 700; 335 NW2d 232 (1983); Teman v Transamerica Ins Co of Michigan, 123 Mich App 262; 333 NW2d 244 (1983), and Hathcox v Liberty Mutual Ins Co, 90 Mich App 511; 282 NW2d 374 (1979), dispositive for two reasons. First, those opinions use the terms "truck”, "trailer”, and "vehicle” interchangeably. We are thus unable to infer with any certainty whether the appellate panels intended to use the term "vehicle” to describe the truck or the trailer or the truck-trailer unit.
We note that recently, in Griffin v Lumbermens Mutual Casualty Co, 128 Mich App 624, 630-631; 341 NW2d 163 (1983), also involving a tractor-trailer, this Court looked at that plaintiffs proximity to both the trailer and the cab or tractor portion prior to concluding that the plaintiff was not "occupying” a vehicle under MCL 500.3106; MSA 24.13106. Citizens’ suggested analysis would lead us to conclude that the Griffin Court perceived the tractor and trailer as two separate vehicles for no-fault purposes.
Aside from the ambiguous use of language in the aforementioned cases, we hesitate to find those cases dispositive because none of the prior cases involved an uninsured unit. Even in BASF Wyandotte Corp v Transport Ins Co, 523 F Supp 515, 517 (ED Mich, 1981), wherein the court specifically referred to the tractor-trailer as "together, constituting] a motor vehicle for the purpose of the Michigan No-Fault Act”, both the tractor and trailer involved therein were insured. Since none of those cases involved an uninsured unit, the issue of distinguishing between the tractor and trailer was not presented to the reviewing courts. We are, therefore, unpersuaded that the prior cases stand for the proposition that a tractor-trailer unit is a single "motor vehicle” for all no-fault purposes.
Roadway primarily relies on Kelly v Inter-City Truck Lines, Inc, 121 Mich App 208; 328 NW2d 406 (1982), where this Court addressed the issue of whether a trailer detached from the tractor was a motor vehicle under MCL 500.3101(2)(c); MSA 24.13101(2)(c). The Kelly Court refused to draw an arbitrary distinction between an attached and unattached trailer and held that "a semi-trailer, whether attached to a cab or freestanding, is a 'motor vehicle’ under the no-fault act”. 121 Mich App 211.
Roadway argues that Kelly should be read as holding that an uninsured trailer is a separate and distinct "motor vehicle” regardless of whether it is attached to a tractor. Citizens responds that the Kelly Court’s holding only means that a trailer does not lose its status as a motor vehicle simply because it is detached from its power source. Although Citizens’ interpretation is plausible, we believe that the Kelly Court’s expressed refusal to distinguish between an attached and unattached trailer corroborates Roadway’s contention that a trailer remains a separate "motor vehicle” when it is hooked up to a tractor.
Our conclusion is reinforced by a plain reading of the statutory definition of a "motor vehicle”. MCL 500.3101(2)(c); MSA 24.13101(2)(c) states that "motor vehicle means a vehicle, including a trailer”. The statutory language indicates that a trailer is first a vehicle, and if it complies with the other enumerated conditions, it attains the status of a "motor vehicle”.
Moreover, recognition of the separate insured status of the trailer acknowledges the practical relationship between the insurance and trucking industries vis-á-vis the no-fault act. Tractors and trailers are often owned, operated, and insured by totally different entities. The very nature of a tractor-trailer allows each unit to be used and insured separately in different states for different periods of time.
We hold that Roadway’s trailer was an uninsured motor vehicle. Accordingly, Citizens, as Lang’s personal automobile insurance carrier, was liable to Lang for payment of no-fault benefits. Becker v Wolverine Ins Co, 113 Mich App 572; 317 NW2d 344 (1982).
The order of summary judgment for Citizens is vacated and an order of summary judgment for Roadway should be entered. Roadway should be reimbursed by Citizens for any benefits paid to Lang as a result of the instant controversy. | [
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On Remand
Before: R. B. Burns, P.J., and R. M. Maher and Beasley, JJ.
R. B. Burns, P.J.
This case comes to us upon remand from the Supreme Court. See 419 Mich 862 (1984).
Originally, this Court in 120 Mich App 1; 327 NW2d 377 (1982), held that the medical malpractice arbitration act, MCL 600.5040 et seq.; MSA 27A.5040 et seq., was unconstitutional. The Supreme Court’s remand order stated:
"On order of the Court, appellants’ applications for leave to appeal having been ordered held in abeyance pending decision in Morris v Metriyakool (Docket No. 67480), and Jackson v Detroit Memorial Hospital (Docket No. 68280), and said decision having been issued on March 1, 1984, 418 Mich 423,
"Now, therefore, the applications for leave to appeal are considered and, pursuant to GCR 1963, 853.2(4), in lieu of granting leave to appeal, we reverse the judgment of the Court of Appeals and remand the case to the Court of Appeals to consider the issue raised by ' plaintiff concerning alleged revocation of consent to arbitrate.
"We do not retain jurisdiction.”
The facts of the case were set forth in our earlier opinion as follows:
"On February 27, 1978, plaintiff’s decedent, Christine Edwards, was admitted as an inpatient in the defendant St. Mary’s Hospital for the purpose of undergoing surgery to remove a pituitary tumor. Prior to surgery Mrs. Edwards executed an arbitration agreement with the hospital. On February 28, 1978, the surgical procedure was performed by defendant Dr. Hedeman, with defendant Dr. Thompson serving as anesthesiologist. Plaintiff claims that, though Mrs. Edwards’ chart indicated she was allergic to penicillin, the chart was not consulted and she was intravenously administered a dose of ampicillin. As a result, shortly thereafter, she suffered a cardiovascular collapse and fell into a coma.
"In April, 1978, while Mrs. Edwards remained in a comatose condition, her husband, the plaintiff in this action, mailed a letter signed by him to defendant hospital purportedly revoking the arbitration agreement. Mrs. Edwards remained as a patient in St. Mary’s Hospital until May 3, 1978. She died on August 4, 1978, without regaining consciousness.
"On October 24, 1978, plaintiff Willie C. Edwards was appointed administrator of the estate of his deceased wife by probate court order, and on April 23, 1979, commenced this suit alleging professional negligence. Defendants moved for an order to proceed to arbitration asserting the attempt to revoke the arbitration agreement was ineffective since plaintiff was not his wife’s 'legal representative’ as that term is used in the medical malpractice arbitration act, MCL 600.5040 et seq.; MSA 27A.5040 et seq., and, therefore, the revocation was ineffective. Plaintiff appeals from the trial court’s order granting defendant’s motion.” 120 Mich App 3-4.
The precise legal issue in this case is the defini tion of the words "legal representative” as used in the Michigan medical malpractice statute, MCL 600.5042(3); MSA 27A.5042(3):
"The agreement to arbitrate shall provide that the person receiving health care or treatment or his legal representative, but not the hospital, may revoke the agreement within 60 days after discharge from the hospital by notifying the hospital in writing.”
These words have never been interpreted as applying to this specific statute.
However, in a different context, the United States Supreme Court did interpret these words:
"The term 'legal representatives’ is not necessarily restricted to the personal representatives of one deceased, but is sufficiently broad to cover all persons who, with respect to his property, stand in his place and represent his interests, whether transferred to them by his acts or by operation of law.’ Mutual Life Ins Co of New York v Armstrong; 117 US 591, 597; 6 S Ct 877, 879; 29 L Ed 997, 999 (1886).”
It appears natural to include a husband within the term "legal representative” when his wife is comatose. Under normal circumstances the husband will look out for his wife’s business and best interests. These sentiments seem to be naturally inferred from Valisano v Continental Ins Co, 254 Mich 122; 235 NW 868 (1931). In that case, the plaintiffs husband had been insane since 1913. In looking after her husband’s property, the plaintiff bought insurance from the defendants. The defendants, however, refused to pay, arguing that the plaintiff had no authority to insure her husband’s property. In rejecting this argument the Court ruled:
"Defendants, through their agent, both in issuing the policies and in attempting to adjust the loss made no objections whatsoever to her so acting. As an agent ex necessitate she had a right to act. Although as such agent she would not have the right to engage in new enterprises, nevertheless it was both her right and duty to conserve plaintiffs property, and in that connection to take out the insurance and attempt to adjust the loss.
"Unless and until a guardian is appointed, it was incumbent on the wife to protect her insane husband’s property.” Id., pp 124-125.
In our opinion, under the facts of this case, the husband was the legal representative of his comatose wife until an administrator was appointed.
Reversed and remanded for trial. | [
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Per Curiam:.
Respondents appeal as of right an order of the circuit court reversing the final decision of respondent director óf the Department of Natural Resources affirming the denial by the Department of Natural Resources (DNR) of petitioner’s application for renewal of a license to operate its landfill. We affirm the court’s order as clarified in this opinion.
The landfill involved in the instant case had been operated by plaintiff for approximately 20 years. In 1981, respondent DNR denied petitioner’s application for a renewed license based on petitioner’s failure to institute a hydrogeological monitoring program as required under § 14(2) of the Solid Waste Management Act, MCL 299.401 et seq.; MSA 13.29(1) et seq. Respondent DNR also based its denial of the license on petitioner’s failure to comply with certain DNR rules promulgated under the predecessor statute to the Solid Waste Management Act which set forth restrictions relative to burning of refuse, cover, compaction, salvaging, grading, and drainage of surface water.
The circuit court reversed, concluding that respondent DNR had impermissibly demanded compliance with provisions of the Solid Waste Management Act in violation of the Headlee Amendment, Const 1963, art 9, § 29. However, the court found substantial evidence supporting respondent’s conclusion that petitioner had violated the aforementioned rules promulgated under the predecessor statute which were in effect prior to adoption of the Headlee Amendment. The court ordered that, if petitioner submitted to respondent DNR a written promise to comply with those rules, respondent DNR could not deny petitioner’s reapplication for a license on the basis of these past deficiencies. The court’s order also stated that those provisions of the Solid Waste Management Act which did not offend the Headlee Amendment could be enforced by respondent DNR.
The Headlee Amendment became effective December 22, 1978, prior to the January 11, 1979, effective date of the Solid Waste Management Act, MCL 299.401 et seq.; MSA 13.29(1) et seq. As pertinent to the instant case, the Headlee Amendment provides that the "state is prohibited from requiring any new or expanded activities by local governments without full state financing”, Const 1963, art 9, § 25, and similarly provides:
"A new activity or service or an increase in the level of any activity or service beyond that required by existing law shall not be required by the legislature or any state agency of units of Local Government, unless a state appropriation is made and disbursed to pay the unit of Local Government for any necessary increased costs”. Const 1963, art 9, § 29.
The circuit court concluded that, even though petitioner was not required to operate a landfill under the Solid Waste Management Act or its predecessor, any new requirements for licensure imposed under the Solid Waste Management Act which were not imposed under the predecessor statute came within the scope of the above-quoted portions of the Headlee Amendment. In short, the circuit court reasoned that where a local government was engaged in an activity prior to adoption of the Headlee Amendment, regardless of whether that activity itself is required by the state or not, any new requirements imposed by the state to lawfully continue that activity fall within the scope of the Headlee Amendment. We find it unnecessary to so expansively interpret the scope of the Headlee Amendment in order to resolve the dispute in the present case.
Section 24 of the Solid Waste Management Act provides:
"A municipality or county shall assure that all solid waste is removed from the site of generation, frequently enough to protect the public health, and are [sic] delivered to licensed solid waste disposal areas * * *.” MCL 299.424; MSA 13.29(24).
The predecessor statute, while providing for licensing and regulation of refuse disposal facilities, contained no such provision. We agree with the holding in Delta County v Dep’t of Natural Resources, 118 Mich App 458; 325 NW2d 455 (1982), lv den 414 Mich 954 (1982), that § 24 imposes upon municipalities a new duty to take steps necessary to assure the proper disposal of solid waste. We reject as contrary to the plain language of the statute respondent’s contention that § 24 does not impose any such duty.
The record in the present case reflects that petitioner’s operation of its landfill, while initially voluntarily undertaken under the predecessor statute, is now required to satisfy its duty under § 24 of the Solid Waste Management Act. Consequently, any new, post-Headlee requirements for licensure imposed under the Solid Waste Management Act, i.e., requirements which did not exist under the pre-Headlee predecessor statute or rules promulgated thereunder, constitute state laws requiring an increased level of activity by petitioner, and thus may not be enforced by defendant unless petitioner is provided with state funds to cover any necessary increased costs. Delta County, supra; Const 1963, art 9, §§ 25, 29. We are unpersuaded by respondents’ argument that, because licensure requirements were imposed prior to Headlee, the state may now change or add to those requirements with the Headlee Amendment applying to those new requirements.
The circuit court found that two particular provisions of the Solid Waste Management Act repre sented new post-Headlee requirements for licensure, compliance with which would occasion increased expenditures by petitioner: the hydrogeological monitoring system required by § 14(2) of the act and the amount of bond required under § 19 of the act. Our comparison of the Solid Waste Management Act with the predecessor statute and rules promulgated thereunder confirms the court’s determination that these are new licensure requirements which did not exist prior to the Head-lee Amendment.
Section 14(2) of the Solid Waste Management Act provides as follows:
"(2) The department shall not license a landfill facility operating without an approved hydrogeologic monitoring program until the department receives a hydro-geologic monitoring program and the results of the program.” MCL 299.414(2); MSA 13.29(14)(2).
1982 AACS, R 299.4305(2)-(3), promulgated pursuant to the Solid Waste Management Act, provides as follows:
"(2) The hydrogeological characteristics of the site shall be determined by a study including onsite testing or from earlier reliable survey data to indicate soil conditions, groundwater level, and subsurface characteristics. * * *
"(3) Based on the hydrogeological study prepared pursuant to subrule (2) of this rule, the applicant shall install a monitor system speciñcally designed to adequately assess the impact of the sanitary landñll on groundwater. A monitor system shall be provided to evaluate groundwater quality at the solid waste boundary as well as at other locations based on the hydrogeological study, considering the local geology, surface water, and groundwater conditions specific to each site. These factors shall determine the number and location of monitor stations.” (Emphasis added.)
The now repealed predecessor statute, MCL 325.291 et seq.; MSA 14.435(1) et seq., contained no reference to a hydrogeological monitoring system, and although a rule promulgated under the former statute, 1979 AC, R 325.2721(2), provided that the "geological characteristics of the site shall be determined by on-site testing or from earlier reliable survey data to indicate soil conditions, water tables and subsurface characteristics”, it did not require the installation of a hydrogeological monitoring program as is now mandated by § 14(2) of the act and the present rule, 1982 AACS, R 299.4305(3), quoted above.
With respect to bond, § 19(l)(a) of the act, MCL 299.419(l)(a); MSA 13.29(19)(l)(a), requires a significantly greater amount of bond for sanitary landfills than was required under the now repealed predecessor statute, MCL 325.294(2)(a); MSA 14.435(4)(2)(a). There is also support in the record for the court’s conclusion that compliance with the new monitoring program and bond requirements would necessitate increased expenditures by petitioner. Consequently, respondent DNR may not deny petitioner’s reapplication for a license based on noncompliance with these requirements in the absence of state funds to pay for the necessary increased costs.
We note that there may be other provisions of the Solid Waste Management Act and the new rules promulgated thereunder which also represent new post-Headlee requirements for licensure and which may occasion increased expenditures by petitioner in order to comply therewith; if so, respondent DNR may not deny petitioner a license based on noncompliance with any such requirements in the absence of state funding to pay for any necessary increased cost. For guidance as to what constitutes increased "necessary costs” for which the state must provide funds, we refer the parties to this Court’s recent decision in Durant v State of Michigan (On Remand), 129 Mich App 517; 342 NW2d 591 (1983).
Respondents argue on appeal that new licensure requirements imposed under the Solid Waste Management Act, even if they do require increased expenditures by petitioner in order for petitioner to achieve compliance, may be enforced despite the absence of state funding if there exist means by which petitioner can raise the necessary money other than by increasing local taxes, for example by charging a user fee, granting contracts or franchises to private entities to operate disposal facilities, or by issuing revenue bonds. We decline to address this argument since respondents did not raise it below. Sowels v Laborers’ International Union of North America, 112 Mich App 616, 623; 317 NW2d 195 (1981).
Finally, there is no dispute that petitioner had violated various DNR rules promulgated prior to the Headlee Amendment under the predecessor statute to the Solid Waste Management Act. We find no error in the court’s order providing that respondent DNR shall not deny petitioner’s reapplication for a license on the basis of these past infractions if petitioner submits a written promise to comply with those rules. Of course, should petitioner fail to act in accordance with its promise to comply with those rules, respondent DNR may take appropriate action.
In sum, respondent DNR may not deny petitioner a license to operate its landfill based on noncompliance with new post-Headlee requirements imposed by the Solid Waste Management Act or rules promulgated thereunder if compliance therewith would require an increase in expenditures by petitioner and if state funds have not been made available to petitioner. However, respondent DNR may deny petitioner a license based on failure to comply with any requirements which existed prior to the Headlee Amendment, and also any new post-Headlee requirements with which petitioner can comply without incurring any increase in "necessary costs”, as that term is explained in Durant, supra, or for which state funds have been provided. In view of our affirmance of the court’s order, we need not address the issue raised by petitioner in its cross-appeal.
Affirmed; no costs, a question of public significance being involved. | [
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Shepherd, P.J.
Nancy Baerwaldt, the commissioner of insurance, and David R. Coleman, an Assistant Commissioner of Insurance for Licensing and Admissions, appeal as of right from an August 28, 1985, order of the Ingham Circuit Court. In the order the court issued a writ of mandamus and ordered the commissioner to approve the application of plaintiff BCS Insurance Company for authority to write medical malpractice insurance in Michigan. We affirm the order.
i
The facts of the instant case are not in dispute. Plaintiff bcs is an Ohio insurance corporation. Its parent company is BCS Financial, which is a subsidiary of the National Blue Cross & Blue Shield Association. Bcs is licensed to transact insurance in all fifty states. Bcs first underwrote insurance in Michigan in 1960 when it was granted authority to market liability insurance. In 1980, bcs was granted authority to write disability insurance in Michigan. On February 13, 1985, bcs filed an application with the commissioner of insurance, seeking additional authority so that it could provide medical malpractice insurance to Michigan health maintenance organizations (hmos) operated by Blue Cross & Blue Shield of Michigan (bcbsm).
On July 15, 1985, David Coleman, Assistant Commissioner of Insurance for Licensing and Admissions, wrote bcs a letter denying its application. The denial was based on representations by bcs that it intended to reinsure one hundred percent of its malpractice obligations with Central Insurance, Ltd., located in the Bahamas, and Business Group Insurance, Ltd., located in the Cayman Islands. These "offshore” reinsurance companies are subsidiaries of bcbsm. The commissioner contends that the effect of this reinsurance arrangement would be that bcbsm would be providing insurance. Under MCL 550.1206(4); MSA 24.660(206X4), a health care corporation is forbidden to market insurance. In the denial letter, Coleman stated: "It is the Insurance Bureau’s position that under Michigan statutes [bcbsm] does not have the authority to own an offshore company to either write the business of insurance directly or reinsure such risks.” Coleman also asserted that, if bcs were granted authority to write medical malpractice insurance, it would merely act as a conduit to enable bcbsm to do directly what it could not otherwise do legally. Because of the relationship between bcs, the national bcbs association, and bcbsm, Coleman concluded that bcs was not "safe, reliable and entitled to public confidence” as required by MCL 500.424(3); MSA 24.1424(3), and denied bcs’s application.
On August 5, 1985, bcs filed the instant complaint in the Ingham Circuit Court, seeking four alternate means of review, including mandamus. The trial court agreed with bcs that the commissioner should pursue its dispute over the allegedly illegal ownership of these reinsurance companies in a direct action against bcbsm, and granted mandamus, ordering the commissioner to approve bcs’s application for authority to write malpractice insurance. The parties do not dispute that in fact the commissioner did bring an action to divest bcbsm of its ownership of the reinsurance subsidiaries in 1983, Ingham Circuit Court Docket No. 83-51321-AW, which, according to the parties in the present action is, still pending.
ii
The commissioner argues on appeal that the writ of mandamus was improperly granted because the act (approval of bcs’s application) sought to be compelled was discretionary and there was not a clear legal duty requiring the commissioner’s approval.
A court may not issue a writ of mandamus unless the plaintiff proves he or she has a clear legal right to the performance of the specific duty sought to be compelled and the defendant has a clear legal duty to perform the action. Bannan v City of Saginaw, 120 Mich App 307, 324; 328 NW2d 35 (1982), aff'd 420 Mich 376 (1985). In the instant case, bcs asserts that it meets the statutory requirement for approval under MCL 500.424; MSA 24.1424. However, the commissioner found that bcs was not "safe, reliable and entitled to public confidence” under the same statute. The only basis which the commissioner has cited for her conclusion is bcs’s self-confessed intention to reinsure one hundred percent of its business with reinsurance comphnies which the commissioner believes are illegally owned by bcbsm. The commissioner asserts that a grant of the authority requested would enable bcs to facilitate the illegal activity of bcbsm.
The commissioner of insurance has the statutory duty to review applications for insurance authority and to approve applicants who meet the requirements of MCL 500.424(3); MSA 14.1424(3). That subsection provides:
(3) The commissioner shall examine such application and if satisfied that such applicant is safe, reliable and entitled to public confidence and is possessed of the capital and assets required of like insurers organized in this state, is authorized to do the kind or class of insurance it seeks to transact, and has complied in all other respects with the laws of this state, as applicable thereto, he shall issue his certificate of authority to such applicant.
Here, the commissioner denied bcs’s application solely on the ground that bcs was not "safe, reliable and entitled to public confidence” because of bcbsm's allegedly illegal ownership of the reinsurance companies. Neither party has briefed the issue of whether bcbsm's ownership of these rein surance companies is in fact in violation of MCL 550.1206(4); MSA 24.660(206X4). That presumably is the topic of the commissioner’s earlier filed case against bcbsm, which is still pending. The commissioner in this case has not suggested why the ownership of the reinsurance companies by bcbs renders bcs unsafe, unreliable or not entitled to public confidence. She apparently based her determination solely upon the fact of the allegedly illegal ownership rather than any perceived adverse consequences of the ownership which would render bcs unsafe, unreliable or not entitled to public confidence, or any finding that the reinsurance companies were unsafe or unreliable.
Although the statutory phrase "safe, reliable and entitled to public confidence” has not been previously interpreted, we find it clear from the statutory context that the commissioner may deny an application if she concludes, based on insufficient assets or a prior course of disapproved conduct, that the applicant may not be financially secure or willing or able to meet its obligations at the time of the application or in the future. Here, the commissioner has not suggested that the allegedly illegal ownership of the proposed reinsurers by bcbsm might somehow leave the public unprotected. We note that bcs, which is itself financially sound and entitled to public confidence, would remain the insurer liable to the policy holders. See 44 Am Jur 2d, Insurance, §§ 1831-1841, pp 823-833.
The commissioner could have moved to consolidate this case with its previously filed divestiture action against bcbsm under MCR 2.505(A). If the cases had been consolidated the commissioner might have been in a better position to assert that the illegality of the reinsurers’ ownership by bcbsm, if shown, somehow rendered bcs unsafe, unreliable and not entitled to public confidence. In the present case, even assuming that the ownership of the proposed reinsurers is illegal, the commissioner has not stated why the ownership scheme renders bcs unsafe or unreliable. The commissioners may not use bcs’s application for authority to provide medical malpractice insurance as a device to address bcbsm's ownership of the proposed reinsurers unless that relationship renders bcs unsafe, unreliable or not entitled to public confidence. We have found no explanation in the record which supports that conclusion. The commissioner’s concern seems to be only that these reinsurance companies are owned by someone who is not supposed to own them. Accordingly, the commissioner had a clear legal duty to approve the application and the writ of mandamus was properly entered. If, in the commissioner’s pending action against bcbsm, the court determines that bcbsm's ownership of the reinsurers is illegal, then bcbsm, which is not a party to this case, would have to divest itself of its holding in those corporations or take other action found by the court to be required by law.
Affirmed.
MCL 550.1206(4); MSA 24.660(206)(4) provides:
(4) A health care corporation shall not market or transact, as defined in sections 402a and 402b of Act No. 218 of the Public Acts of 1956, being sections 500.402a and 500.402b of the Michigan Compiled Laws, any type of insurance described in chapter 6 of Act No. 218 of the Public Acts of 1956, as amended, being sections 500.600 to 500.644 of the Michigan Compiled Laws. This subsection shall not be construed to prohibit the provision of prepaid health care benefits. | [
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M. J. Kelly, P.J.
This controversy involves the destiny of 42.5 acres of land located in Port Huron, Michigan, commonly known as the "Peerless Grand Trunk Site”. The land is on the St. Clair River and is owned by the city. Originally, this case came to us as an election controversy. Plaintiffs’ claim of appeal was accompanied by a motion for immediate consideration, requesting the issuance of an opinion prior to September 21, 1982, to accommodate a deadline for ballot printing. Plaintiffs sought to have placed on the November, 1982, election ballot an ordinance providing for a specific development plan for the Peerless Grand Trunk Site. We denied plaintiffs’ application for immediate consideration and although the 1982 as well as 1983 elections have now passed, we decline to declare the case moot since plaintiffs claim the controversy remains a viable one.
The City of Port Huron acquired the Peerless Grand Trunk Site in the early 1970’s. In 1978, plaintiff corporation, the Citiziens Lobby of Port Huron, Michigan, Inc. (Citizens Lobby), obtained by initiatory petition an amendment of the city charter restricting the development or disposition of city-owned waterfront property. The 1978 amendment to § 78 of the city charter provides:
"The City shall not have the power to develop, lease, sell or otherwise dispose of any waterfront property, or property contiguous to the waterfront, unless such ac tion is approved by a majority of the electors voting therein in a general or. special election.”
After passage of the amendment, the city government began promoting a plan for development of the Peerless Grand Trunk Site and employed for this purpose American City Corporation, a professional land use planning company which had previous experience with municipal waterfront developments in Baltimore, Maryland, and Buffalo, New York. The Citizens Lobby contemporaneously developed an alternative plan for use of the waterfront property with emphasis on the public use of the property. The city’s plan included 24 acres of residential condominiums with supporting commercial facilities and an adjunct park utilizing about 18-1/2 acres of the site.
The city’s plan was placed on the November, 1982, ballot for voter approval as required under the 1978 charter amendment. Prior to the November, 1982, election, Citizens Lobby had circulated petitions under the initiative provisions of the Port Huron City Charter to have its plan placed on the same ballot as an alternative proposed ordinance. Although Citizens Lobby obtained a sufficient number of signatures on an authorized petition form, both the city clerk and the city council refused to certify the initiatory petition, thereby precluding Citizens Lobby’s plan from being placed on the November, 1982, ballot.
Plaintiffs commenced this lawsuit in circuit court on July 30, 1982, seeking mandamus against both the city clerk and the city council compelling certification of plaintiffs’ initiatory petition and ordering the city to either adopt the proposed ordinance specified in the petition or to submit the initiated ordinance to the voters.
The controversy was submitted to the circuit court on a stipulated statement of facts:
"1. Defendant City of Port Huron is the owner of approximately 42.5 acres of waterfront property contiguous to the St. Clair River, as described in a warranty deed recorded in Liber 1005, page 402, St. Clair County Records, and entirely situated within the City of Port Huron, St. Clair County, Michigan, commonly being known as the 'Peerless Grand Trunk Site’.
"2. Pursuant to Sections 27 a-e of the 1969 Charter of the City of Port Huron, 'Charter’, plaintiff Citizens Lobby of Port Huron, Michigan, Inc., caused to have prepared a petition with the intention of using the initiative procedure to enact an ordinance prescribing a plan for development of the Peerless Grand Trunk Site.
"3. By letter dated July 13, 1982, City Attorney Anthony M. Bonadio approved plaintiffs’ petition as to form only such approval as to form being required by Section 27b of the Charter.
"4. Plaintiff circulated its petition and obtained a number of valid signatures sufficient to authorize certification of its petition by the city clerk, as admitted by the city clerk, defendant Guy C. Provost, in his letter dated July 27, 1982.
"5. Defendant Provost declined to certify plaintiffs’ petition to city council because, as set forth in his letter, the petition 'is in substance and character administrative and not appropriately referable to the electorate.’
"6. Plaintiffs brought suit on July 30, 1982, seeking mandamus against both the city clerk and city council to compel certification of plaintiffs’ petition and either adoption of the ordinance specified in the petition or submission of the initiated ordinance to the voters at the November 2, 1982, general election.
"7. This Court [St. Clair County Circuit Court] issued its order to show cause why mandamus should not issue on August 2, 1982, scheduling a hearing for August 16, 1982.
"8. The Port Huron City Council adopted a resolution on August 9, 1982, directing the city clerk to place on the November 2, 1982, election ballot a development plan for the Peerless Grand Trunk Site. The city plan differs from the plan proposed by plaintiffs’ petition. Section 78 of the Port Huron City Charter requires prior voter approval of any disposition of waterfront property owned by the city.”
At a hearing held on August 16, 1982, the St. Clair County Circuit Court dismissed plaintiffs’ complaint for mandamus finding that the development of the Peerless Grand Trunk Site was an administrative function of the city council not properly referable to the electorate which, by implication of the city charter, could only vote on matters legislative in character.
I
Is the subject matter of the initiative ordinance proposal developed by the Citizens Lobby so clearly legislative in character that the failure of the circuit judge to grant mandamus constitutes an abuse of discretion? In Schwartz v Secretary of State, 393 Mich 42; 222 NW2d 517 (1974), the Supreme Court took jurisdiction of an original action for mandamus filed in the Court of Appeals. Justice Williams, writing for the majority, concluded:
"Mandamus is not issued as matter of right but is a discretionary writ. * * * The plaintiff has not made a case for the exercise of our discretion to grant the writ of mandamus by proving that the Legislature has exceeded its constitutional authority.” 393 Mich 50 (citations and footnote omitted).
We similarly find that plaintiffs have failed to make a case below for the exercise of the trial court’s discretion to grant the writ of mandamus because they have failed to prove that the city council violated the provisions of its charter by refusing to place the initiated ordinance on the ballot.
More specifically, we are not convinced that the trial court abused its discretion in deciding that (1) planning for the development of the Peerless Grand Trunk Site was an administrative function of the city; (2) the subject matter of plaintiffs’ initiative petition was administrative in nature; and (3) administrative matters are not referable to the electorate by the process of initiative or referendum. In our opinion, city voters may vote by referendum or initiative on legislative matters but not on matters that are administrative in nature.
The lead opinion of Justice Levin in West v City of Portage, 392 Mich 458; 221 NW2d 303 (1974), illuminates the administrative/legislative dichotomy in the context of an amendment to a city zoning ordinance. Although ours is not a zoning case, we believe that the issue presented here is sufficiently analogous to the issue presented in West to justify our reliance on that opinion. Justice Levin stated that the genesis of initiatory or referable petitions is in the home rule act, MCL 117.1 et seq.; MSA 5.2071 et seq. Section 4i of that act provides:
“Each city may in its charter provide * * * (6) [f|or the initiative and referendum on all matters within the scope of its powers and for the recall of all of its officials.” MCL 117.4Í; MSA 5.2082.
Construing this provision in light of the historical meaning of the terms "initiative” and "referendum”, Justice Levin held that the right of initiative and referendum "on all matters” as provided in § 4i refers to all matters legislative in nature. 392 Mich 462-465. Justice Levin’s opinion under Part I in West was subsequently adopted by a majority of the Supreme Court in Beach v City of Saline, 412 Mich 729, 730-731; 316 NW2d 724 (1982), reh den 413 Mich 1108 (1982):
"In West v Portage, 392 Mich 458, 465-466; 221 NW2d 303 (1974), the lead opinion by Justice Levin concludes that a right of referendum authorized by the home-rule act extends only to legislative acts:
" 'We hold that the words "initiative” and "referendum” are themselves an implicit limitation on the matters that may properly be the subject of an initiative or referendum, and that the Legislature did not in 1909 intend to confer on the electors of home-rule cities the power to vote on questions not truly legislative in character.’
"The opinion was signed by three Justices, one Justice concurring in the result. In Rollingwood Homeowners Corp, Inc v City of Flint, 386 Mich 258, 268; 191 NW2d 325 (1971), the Court stated that '[t]here is nothing inherently legislative about a decision to acquire real estate’. We are of the view that the opinion of Justice Levin in West, supra, correctly and adequately treats the governing legal principle and adopt the reasoning and conclusion of Justice Levin in Part I of West.” (Footnotes omitted.)
We find that § 27b of the Port Huron City Char ter of 1969 which provides for initiatory or referendary petitions is a provision authorized under § 4i of the home rule act. Consequently, matters appropriate for initiative or referendum in Port Huron are limited to matters legislative in nature. The only remaining question is whether the subject matter of plaintiffs’ petition is administrative or legislative in character.
II
The Port Huron City Council determined upon the advice of corporate council that the subject matter of the petition was administrative and therefore not properly referable to the electorate. Importantly, this is not a case where the city council refused to submit an initiatory petition which covered a clearly legislative matter. Plaintiffs argue that the subject matter of their petition concerns a policy issue of property use and is therefore legislative, rather than administrative. We disagree. The city acquired the Peerless Grand Trunk Site when the Peerless Cement Company closed its doors in the early 1970’s. It is clear to us that this acquisition was an administrative act authorized by the city charter. While removing the cement company buildings and preparing the site for further development, the city conducted public hearings on proposed uses for the land. In September of 1978, the city council adopted a resolution amending its city-wide land use plan (Master Plan), allowing for any development of the Peerless Grand Trunk Site to include park and multiple residential and commercial uses. It was at that time that plaintiff Citizens Lobby, in an attempt to promote a total park use for the site, succeeded in amending § 78 of the charter as described earlier in this opinion.
By the amendment to § 78 of the charter any development of the Peerless Grand Trunk Site by the city must first be approved by the voters. We find that the process of submitting a proposed plan to the voters is no more a legislative act than is the city’s original acquisition of the property. To permit the electorate to initiate piecemeal measures affecting land development is as inconceivable to us as allowing the electorate to initiate ordinances affecting the fiscal affairs of the city without regard to the budget or to the overall fiscal program. We believe that the implementation by ordinance of a general policy, program or plan is an administrative act which is not subject to voter initiative or referendum. See Part II of Justice Levin’s opinion in West, supra, and 1 Antieau, Municipal Corporation Law, § 4.34, pp 4-59ff.
We hold that the proposed ordinance constitutes an attempt to implement existing charter policy on land development and that the subject matter of plaintiffs’ petition ordinance is administrative in nature and therefore not referable. To the extent that plaintiffs rely on cases decided prior to the Supreme Court opinion in Beach v City of Saline, supra, we find such authority to have been superseded thereby. The trial court in this case did not abuse its discretion in dismissing plaintiffs’ action for mandamus.
Affirmed.
The parties informed this Court that the city council development plan was soundly defeated in the November 2, 1982, general election. Plaintiffs state that the plan was rejected by approximately 63% of the vote. Defendants confirmed the rejection at oral argument, but pointed out that a park-type plan similar to the Citizens Lobby plan was likewise defeated at a subsequent election.
In this opinion, we consider only the actions of the city council. Appellants have urged us to decide the question of whether the city clerk had authority to refuse to certify an initiative ordinance petition which was proper in form. We believe that he did not. It appears that the trial court similarly opined he did not. However, inasmuch as the main issue centers on the administrative/legislative dichotomy which is outcome determinative, we will not address the issue of the city clerk’s authority.
"An initiatory or a referendary petition shall be signed by registered qualified electors of the city in number equal to twenty-five per cent (25%) of the electors of the city voting for the city councilman receiving the highest number of votes at the last regular city election held prior to the filing of the petition. Before being circulated for signatures, all such petitions shall be approved as to form by the City Attorney. No such petition need to be on one paper, but may be the aggregate of two (2) or more petition papers. Each signer of a petition shall sign his name in ink or indelible pencil, and shall place thereon, after his name, the date and his place of residence by street and number, or by other customary designation. To each petition paper there shall be attached a sworn affidavit by the circulator thereof, stating the number of signers thereto and that each signature thereon is the genuine signature of the person whose name it purports to be, and that it was made in the presence of the affiant. Any such petition shall be filed with the City Clerk who shall within ten (10) days, determine the sufficiency thereof and so certify. If found to contain an insufficient number of names of qualified electors of the city, or to be improper as to form or compliance with the provisions of this section, ten (10) days shall be allowed for the filing of supplemental petition papers. When found sufficient and proper, the City Clerk shall present the petition to the City Council at its next regular meeting.” | [
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P. C. Elliott, J.
A jury convicted defendant of breaking and entering an occupied dwelling. Defendant claims he was denied effective assistance of counsel because of his lawyer’s failure to request instructions on lesser included offenses and his failure to challenge certain jurors.
This Court said in People v Armstrong, 124 Mich App 766, 769; 335 NW2d 687 (1983):
A difference of opinion as to trial strategy does not amount to ineffective assistance of counsel. People v Peery, 119 Mich App 207, 216; 326 NW2d 451 (1982).
Defendant’s first assertion is that his trial counsel made a serious mistake in not requesting lesser included offense instructions. Defendant’s defense at trial was that he took no part in the drug transaction. We find defense counsel’s decision not to request lesser included offense instructions to be a matter of trial strategy. Accord, People v Rone (On Second Remand), 109 Mich App 702, 718; 311 NW2d 835 (1981), lv den 414 Mich 873 (1981).
In this case, too, the decision not to request lesser offenses was a matter of trial strategy. Defendant’s defense was that he was not one of the three men who committed the burglary. Instruction on lesser offenses might have reduced the chance of an acquittal. Defendant counsel may have correctly assumed that the minimum sentence for the offense charged, if defendant should be convicted of it, would be no more than the probable minimum sentence for a conviction of a lesser included offense. In fact, the sentence imposed was a prison term of only from two years to fifteen years. For all we know it may have been defendant’s wish, concurred in by his lawyer, that no lesser offense instructions be requested. Compare People v Jones, 146 Mich App 736; 381 NW2d 803 (1985).
Six jurors were previously victims of crimes involving larceny, but all of them indicated they could set those experiences aside and each said he or she could be impartial. Defense counsel may have correctly assumed that challenges for cause would be properly denied and that unsuccessful challenges for cause would not be viewed favorably by the jury. One of the six was excused by the prosecutor, another was excused peremptorily by the defense, and one said that he might find it difficult to convict anyone on circumstantial evidence which was all that would link defendant to the crime. Other jurors (we do not know which ones) gave, by a nod of the head, the same indication of difficulty with proof by circumstantial evidence.
A reviewing court cannot see the jurors or listen to their answers to voir dire questions. A juror’s race, facial expression, or manner of answering a question may be important to a lawyer selecting a jury:
"Of all the important communications between human beings, at least 50% is nonverbal.” [Gadde v Michigan Consolidated Gas Co, 377 Mich 117, 127; 139 NW2a 722 (1966).]
A lawyer’s hunches, based on his observations, may be as valid as any method of choosing a jury. Defense counsel may want to retain certain prospective jurors, especially, and be willing to express satisfaction so the prosecution will not or cannot eliminate them. ABA Standards for Criminal Justice, "The Defense Function,” 7-5.2(b) provides:
The decisions on what witnesses to call, whether and how to conduct cross-examination, what jurors to accept or strike, what trial motions should be made, and all other strategic and tactical decisions are the exclusive province of the lawyer after consultation with his client. [Emphasis supplied.]
Our research has found no case in Michigan where defense counsel’s failure to challenge a juror or jurors has been held to be ineffective assistance of counsel. We cannot imagine a case where a court would so hold, and we do not so hold in this case.
Defendant also contends that his motion for a directed verdict was improperly denied because, he claims, the circumstantial evidence linking him to the crime was insufficient. We disagree. Defendant was in a car when it was stopped by police six miles from the break-in, twenty to twenty-five minutes later and with the stolen property in the trunk. The victim, who saw the faces of only two of the three burglars, identified the two men who were in the car with the defendant. His presence with them in that car was sufficient, in the circumstances, for a conviction.
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Beasley, J.
Each of the plaintiffs in these consolidated cases, Amy Ternan, a minor, by her next friend Lawrence R. Ternan, and Donald F. Berschback, a minor, by his next friend Don R. Berschback, filed a complaint alleging that the "transfer eligibility” rule adopted by defendant, Michigan High School Athletic Association, Inc., (mhsaa) denied plaintiffs equal protection of the laws, in violation of US Const, Am XIV. Plaintiffs also alleged that the specific application of the mhsaa rule by defendants, mhsaa, Rochester Community School District and Grosse Pointe Public School District, denied plaintiffs their right to due process of law, in violation of US Const, Am XIV. Each of the plaintiffs sought declaratory relief and a temporary restraining order to enjoin enforcement of the rule in order to allow them to participate in interscholastic sports during the fall semester of 1985.
Defendant mhsaa brought a motion for summary disposition under MCR 2.116(C)(10) in each action, claiming that there were no genuine issues of material fact and that it was entitled to judgment as a matter of law. The trial judge in each action granted defendant mhsaa’s motion for summary disposition and denied each plaintiff’s request for a temporary restraining order. Each plaintiff filed a motion in this Court for immediate consideration and for a stay of enforcement of defendant mhsaa’s transfer-eligibility rule. This Court granted each plaintiff’s motion, enjoining the defendants from enforcing the rule. Defendant mhsaa then filed motions in the Michigan Supreme Court, requesting that this Court’s injunctive order in each case be set aside and requesting leave to appeal prior to decision by this Court. The Supreme Court denied defendant mhsaa’s motions, but directed this Court to expedite the appeals.
The factual situations in both cases are remarkably similar and are not in serious dispute. In September, 1985, Amy Ternan transferred from a parochial school, Lutheran High North, to a public high school, Rochester Adams High School, to begin the tenth grade. Rochester Adams High School is a three-year high school which includes the tenth, eleventh and twelfth grades and is the public high school for the area where Amy Ternan resides with her parents.
During the summer prior to Amy Ternan’s transfer, she became aware of defendant mhsaa’s transfer-eligibility rule which, if applied to her, would bar her from participating in interscholastic sports for the first semester she attended Rochester Adams High School. Since Amy Ternan wished to participate on the Rochester Adams girls basketball team during the fall semester of her tenth grade, she requested that the superintendent of the Rochester Community School District request a waiver of the transfer-eligibility rule in her case. Pursuant to defendant mhsaa’s rules, the superintendent requested the waiver for Ternan. On August 6, 1985, defendant mhsaa’s executive committee considered the superintendent’s request, but denied the waiver. At this point, Ternan filed a complaint in the circuit court and the judicial proceedings described above followed.
Also in September, 1985, Donald F. Berschback transferred from a parochial high school, Warren DeLaSalle, to a public high school, Grosse Pointe South High School, to begin eleventh grade. Grosse Pointe South High School is the four-year public high school for the area where Donald F. Berschback resides with his parents.
Prior to his transfer, Donald F. Berschback became aware that defendant mhsaa’s transfer-eligibility rule, if applied to him, would bar him from participating in interscholastic sports for the first semester he attended Grosse Pointe South High School. Since Donald F. Berschback wished to participate on the Grosse Point South High School varsity football team during the fall semester of his eleventh grade, he requested, pursuant to de fendant mhsaa’s rules, that the deputy superintendent of Grosse Pointe Public School system request a waiver of the transfer-eligibility rule in his case. The deputy superintendent declined to request a waiver from the mhsaa for Berschback. Berschback then filed a complaint in the circuit court, and the judicial proceedings described above followed.
Initially, we note that all the parties agree that the issues raised in these cases are technically moot, as they relate to Amy Teman and Donald F. Berschback. This Court’s order staying enforcement of defendant mhsaa’s transfer-eligibility rule effectively allowed both plaintiffs the relief they requested, since each was allowed to participate in interscholastic sports during the fall semester of 1985. However, we also note that the time period between a denial of a waiver request and the start of the athletic season is normally too short to allow a case to progress fully through the appellate system. Since the situation presented by these cases appears to arise frequently at the beginning of each school year and involves issues of significant public importance, and since the trial courts fully addressed the issues now raised on appeal, we will address the issues raised by the parties in this appeal.
On appeal, both plaintiffs first argue that defendant mhsaa’s transfer-eligibility rule denies them equal protection of the law, in violation of US Const, Am XIV. The mhsaa transfer-eligibility rule, with its thirteen express exceptions, provides:
A student who transfers from one high school or junior high/middle school to another high school is ineligible to participate in an interscholastic athletic contest for 1 full semester in the school to which the student transfers, except that the following students may be declared eligible:
(1) A student who moves into a new district or school service area with the persons with whom he or she was living during his or her last school enrollment.
(2) A student who moves into a district or school service area and resides with his or her parents in that district or area.
(3) A student who is a ward of the court or state and is placed in a district or school service area by court order. Guardianship does not fulfill this requirement.
(4) A foreign exchange student who is placed in a district or school service area by a bona fide exchange program.
(5) A student who marries and establishes a new residence in a new district or school service area.
(6) A student who transfers to another school because his or her school ceases to operate.
(7) A student in attendance at a school designated by the governing body of that school as the result of reorganization, consolidation or annexation, or at the public school in the district where he or she resides.
(8) A student from divorced or legally separated parents who moves into a new school district with one of the aforementioned parents and the principal of each of the two schools involved signs the Educational Transfer Form which certifies the reason for the move as it relates to the divorced/ separated parents. The transfer is permitted one time and must be approved by the Executive Director before the student competes in interscholastic athletic competition. (1981)
(9) A student ordered transferred within a school system for other than athletic purposes, by a board of education or the governing body of a private or parochial school system.
(10) A student who enters in the ninth grade of a four year high school and has not been previously enrolled in the ninth grade.
(11) A student who completes the last grade available in the school system previously attended. (1971)
(12) A student eighteen (18) years or older who moves from one school district to another without being accompanied by a parent or parents and resides within that new school district and both principals sign the Educational Transfer Form certifying the transfer is in the best educational interest of the student. The transfer is permitted one time and must be approved by the Executive Director before the student competes in interscholastic athletic competition. (1983).
(13) A student who becomes a bona fide boarding student of a boarding school, as defined in the school code, and the principal of each of the two schools involved signs the Educational Transfer Form which certifies the reason for the move as it relates to his/her enrollment at the boarding school. The transfer is permitted one time and must be approved by the Executive Director before the student competes in interscholastic athletic competition (1982).
The mhsaa is an athletic association as described in MCL 380.1289(2); MSA 15.41289(2):
An association established for the purpose of organizing and conducting athletic events, contests, or tournaments among schools shall be the official association of the state. The association shall be responsible for the adoption and enforcement of regulations relative to eligibility of pupils in schools for participation in interscholastic athletic events, contests, or tournaments.
Individual school boards join the mhsaa by adopting the rules and regulations of the mhsaa, as authorized in MCL 380.1521; MSA 15.41521:
A board may join an organization created pursuant to section 1289 which has as its object the promotion of sport and the adoption of rules for the conduct of athletic contests between students. The association is the official association of the state for the purpose of organizing and conducting athletic events, contests, and tournaments among schools. The association shall be responsible for the adoption and enforcement of regulations relative to eligibility of athletes in schools for participation in interscholastic athletic events, contests, and tournaments.
Virtually every public and private secondary school in Michigan is a member of the mhsaa.
Technically, the mhsaa is a private, nonprofit corporation. The mhsaa is governed by a representative council made up of fourteen members elected by the member schools and four members appointed by the elected members. The representative council elects the mhsaa’s executive committee, which consists of seven members. The executive committee reviews requests made by member schools for waiver of eligibility rules, as provided in the mhsaa rules:
Except for the eligibility rule in regard to age, the Executive Committee shall have the authority to set aside the effect of any eligibility rule upon an individual student when in its opinion the rule fails to accomplish the purpose for which it is intended, or when the rule works an undue hardship upon the student.
Request for the consideration of such exceptions shall be acted upon by the Executive Committee three (3) times during each school year. The first meeting for the consideration of such exceptions shall be held during the month of August, the second meeting shall be held during the month of November and third meeting shall be held during the month of March. Other cases may be heard at the discretion of the Executive Committee if the incident causing the hardship occurred between the regular meeting scheduled or the hardship ruling.
Application for the consideration of such exceptions must be made in writing by the superintendent or principal or their designated representative of the high school and should contain all the facts pertinent to the case, including sufficient data to make it possible to reach a decision without further investigation. Such application shall be filed in the office of the Executive Director not later than five (5) days before the meeting of the Executive Committee. A hearing before the Executive Committee is not necessary and will be allowed only if requested in the application.
Appeals from decisions of the Executive Committee to the Representative Council shall proceed as in other appeals to the Representative Council.
In addressing plaintiffs’ equal protection claim, we first note that all of the parties assume that the mhsaa eligibility rules involve state action for purposes of the Fourteenth Amendment. We believe that this assumption is correct, since the mhsaa is comprised to a large extent of public school members and is statutorily characterized as the "official association of the state.” Therefore, we conclude that the adoption and application of eligibility rules by the mhsaa constitutes state action for purposes of the Fourteenth Amendment.
In challenging the transfer-eligibility rule on equal protection grounds, plaintiffs argue that the rule is unreasonably overbroad. In making this argument, plaintiffs correctly note that the primary purpose of the transfer-eligibility rule is to prevent interscholastic athletic recruiting at the secondary school level. As the mhsaa executive board stated in addressing Ternan’s waiver request, the rule is designed to prevent "school shopping” for athletic purposes and the undesirable results that would flow from such athletic recruiting and transfer practices.
Plaintiffs, after noting this primary purpose of the rule, then call attention to the fact that the specific rule adopted by the mhsaa will often apply to students, such as those herein, who transfer for reasons other than athletics. Plaintiffs then argue that the rule, which classifies students based only upon whether they have transferred from one school to another and which broadly bars students who have transferred from participating in interscholastic sports in order to prevent athletic recruiting, constitutes a denial of equal protection.
In making their argument, plaintiffs rely on two cases involving transfer-eligibility rules of athletic associations in other states. In Sullivan v University Interscholastic League, the court found that the purpose of the transfer-eligibility rule to discourage recruitment of high school athletes was a legitimate state objective. However, the Sullivan court went on to find that the transfer-eligibility rule involved in that case was unreasonably over-broad and overinclusive because it burdened many student athletes who were not recruited and were forced to transfer when their families moved for employment or other reasons. Thus, the Sullivan court concluded that the rule constituted a denial of equal protection.
In Sturrup v Mahan, the court also found that the rule’s purpose of discouraging recruiting was a legitimate state purpose. However, the Sturrup court went on to find that the transfer-eligibility rule involved in that case was unreasonably over- inclusive, since it automatically barred all transferring students, other than those who moved to a new school district with their families or those who moved due to unavoidable circumstances, from participating in athletics for a period of one calendar year. The court held that the rule constituted a denial of due process.
After reviewing these two cases from other states, we do not believe that they control the result in this case. First, we note that defendant mhsaa’s transfer-eligibility rule is definitely narrower than the rules involved in Sullivan and Sturrup. The mhsaa rule in question expressly provides for thirteen exceptions for transferring students. These exceptions, which apply to students who have moved to a new district with their parents and students who are entering the ninth grade for the first time, factually distinguish the mhsaa rule from those involved in either Sullivan or Sturrup. Furthermore, the transfer-eligibility rules in Sullivan and Sturrup barred transferring students from athletic participation for a period of one calendar year, which is double the period of the mhsaa rule which bars transferring students for a period of only one semester.
More importantly, the decisions in Sullivan and Sturrup appear to be anomalies in this area of the law. Specifically, the focus on the "overbroad” and "overinclusive” nature of the rules by the Sullivan and Sturrup courts to find a denial of equal protection departs significantly from traditional equal protection analysis. Courts in other jurisdictions that have applied a traditional equal protection analysis in addressing challenges to athletic association transfer-eligibility rules have upheld these rules.
Under traditional equal protection analysis where classifications do not involve a suspect class or a fundamental right, once a legitimate regulatory purpose has been identified, the only question remaining is whether the rule makers reasonably believed that use of the challenged classification would promote that purpose. Therefore, a rule will be upheld against an equal protection challenge if it contains a classification rationally related to a legitimate governmental interest.
This extremely deferential rational basis test applies in the within cases since the mhsaa’s classification of students based on whether they have transferred to a new school or not does not involve a suspect classification such as race, or a quasi-suspect classification such as gender. Furthermore, the mhsaa’s classification of students does not infringe upon any fundamental rights. The United States Supreme Court has held that public education itself is not a fundamental right for purposes of equal protection analysis. Therefore, we conclude that participation in high school interscholastic athletics does not constitute exercise of a fundamental right. Furthermore, since the rule expressly excepts students who have moved to a new district with their parents or students who have had to move for other various reasons, we do not believe the rule significantly infringes upon the fundamental right of interstate travel.
Applying the traditional rational basis test to the mhsaa transfer-eligibility rule, we believe that the rule is rationally related to the legitimate regulatory purpose of discouraging the recruiting of high school athletes and, thus, does not constitute a denial of equal protection. The mhsaa has rationally concluded that barring certain high school students who transfer from one school to another after initial entry into the ninth grade will substantially discourage recruiting, pirating and jumping of high school athletes from one school to another. We do not conclude that the mhsaa’s determination concerning its transfer-eligibility rule is irrational, arbitrary or capricious. In addition, we believe the fact that the rule will apply to students, such as these plaintiffs, who have not transferred for athletic reasons, does not render the rule irrational or arbitrary. Even if we were to assume these are somewhat overbroad and overinclusive classifications, they are not necessarily irrational and, in fact, may be necessary for the realization of a legitimate state purpose.
We believe this is true even in the case of Amy Ternan, who entered a three year public high school at the initial tenth grade level. The fact that the mhsaa rule classifies and treats Amy Ternan differently than a student who enters a four year public high school at the initial ninth grade level does not render the rule irrational or arbitrary. The mhsaa, in formulating its transfer-eligibility rule, may have reasonably concluded that high school students entering the tenth grade are much more susceptible to recruitment by other schools than are students entering the ninth grade. Students entering the tenth grade have had one more year to mature physically and to demonstrate their athletic abilities. Therefore, we conclude that the failure to except students initially entering the tenth grade in three year high schools from the application of the transfer-eligibility rule is not irrational or arbitrary and does not constitute a denial of equal protection.
On appeal, both plaintiffs also argue that the application of the transfer-eligibility rule in these cases constituted a denial of procedural due process, in violation of US Const, Am XIV. Specifically, plaintiffs argue that the procedures used by defendant schools and defendant mhsaa’s executive committee in addressing and denying their applications for waiver of the rule violated each students right to due process. Plaintiffs claim that there existed a due process right to a hearing on the issue of whether the waiver should be granted and that this due process right has been violated by the application of the transfer-eligibility rule in these cases.
Plaintiffs rely on the decision of the United States Supreme Court in Goss v Lopez to support their claim that participation in interscholastic athletics is a property or liberty interest protected by the due process clause of the Fourteenth Amendment. The Goss Court found that appellees, who were students in the Ohio public schools, had legitimate claims of entitlement to a public education based on the fact that Ohio statutes concerning compulsory attendance, etc., extended the right of a public education to the appellees. The Court went on to hold that these legitimate claims of entitlement to a public education created by state law gave rise to a property interest protected under the due process clause of the Fourteenth Amendment. Therefore, the Goss Court concluded that the state, through the action of individual school principals, could not withdraw the appellees’ right to a public education by suspending them from school for ten days based on their alleged misconduct absent fundamentally fair procedures (due process) to determine whether the misconduct had occurred.
The foundation of the Goss decision rests on the Court’s determination that the student appellees had a legitimate claim of entitlement to a public education, which was created by state education laws. In finding that the appellees had this legitimate claim of entitlement protected by the Fourteenth Amendment, the Court expressly discussed the source of this protected interest:
The Fourteenth Amendment forbids the State to deprive any person of life, liberty, or property without due process of law. Protected interests in property are normally "not created by the Constitution. Rather, they are created and their dimensions are defined” by an independent source such as state statutes or rules entitling the citizen to certain benefits. Board of Regents v Roth, 408 US 564, 577 [92 S Ct 2701; 33 L Ed 2d 548] (1972). [419 US 572-573.]
In the within case, plaintiffs argue that Michigan law creates a protected, legitimate claim of entitlement to a public education and that this protected interest in a public education includes a legitimate claim of entitlement to participation in interscholastic athletics. Although we believe Michigan law, through its compulsory education statute, creates a protected interest in public education, we do not believe this protected interest in public education extends to a student’s participation in interscholastic sports.
The term public education, used in Goss to refer to an interest in classroom attendance, is a broad term not limited to mere classroom attendance. Public education includes many separate components, such as participation in school athletics, clubs, social groups, etc. We do not read Goss to establish a constitutionally protected property interest in each of these educational components based merely upon compulsory classroom attendance and education statutes. The compulsory education statute may create a protected, legitimate claim of entitlement to basic classroom attendance, but, alone, it does not create a legitimate claim of entitlement to participation in interscholastic athletics. Therefore, we believe that plaintiffs’ assertion of a protected property interest in interscholastic athletics must be based on a legitimate claim of entitlement created by Michigan law beyond the compulsory education statute.
Plaintiffs, in attempting to find a further basis for their assertion that Michigan law creates a legitimate claim of entitlement to participation in interscholastic athletics, point to the Michigan Supreme Court decision in Richards v Birmingham School Dist. The Michigan Supreme Court in Richards found that a school district which fostered and promoted interscholastic athletics in accordance with state regulations as part of its educational program was engaged in a governmental function for purposes of the governmental immunity doctrine. Plaintiffs argue that this finding in Richards creates a legitimate claim of entitlement to participation in interscholastic athletics. We disagree.
The Richards Court merely found that, when a school district chooses to allow, foster and promote interscholastic athletics, such interscholastic athletic programs are a component of a school’s edu cational program and, thus, constitute a government function for purposes of the governmental immunity analysis. The Richards Court in no way found that school districts were required to allow students to participate in interscholastic athletics or that individual students had a legitimate claim of entitlement to participation in interscholastic athletics. Therefore, we find that the holding in Richards does not provide a basis for plaintiffs’ assertion that they have a constitutionally protected interest in interscholastic athletics.
Our conclusion on plaintiffs’ argument based on Richards is further supported by the Michigan statutes regarding interscholastic athletics. Extracurricular interscholastic athletic programs are not statutorily mandated courses of instruction. MCL 380.1502; MSA 15.41502 only requires a school district to provide a course in physical education, not interscholastic athletic programs. In addition, the language of MCL 380.1521; MSA 15.41521 makes it clear that the participation of a school district in an interscholastic athletic association is merely permissive and not required.
Based on the fact that Michigan statutory and case law merely allows a school district to participate in interscholastic athletics and does not mandate such participation, we conclude that Michigan law does not provide plaintiffs with a basis for a legitimate claim of entitlement to participation in interscholastic athletics. Thus, we conclude that plaintiffs have not shown that there is a property or liberty interest involved in the participation in interscholastic athletics such that participation in interscholastic athletics is protected by the Fourteenth Amendment of the United States Constitution. Therefore, we find that plaintiffs’ claim that there was a denial of the constitutional right to due process of law when defendants applied the transfer-eligibility rule in these cases without conducting a hearing or without providing an opportunity for effective review is without merit.
Although we reject plaintiffs’ claims that defendant mhsaa’s application of the transfer-eligibility rule denies plaintiffs their constitutional rights, we are constrained to underline the fact that this is a narrow decision based on constitutional principles and does not indicate our support for the sometimes heavy-handed application of the rule. As previously indicated, the rule often applies to students who have transferred for legitimate educational reasons beyond athletics and who have not been recruited for athletic reasons. Due to this extremely broad net that the rule throws over all transferring students, we believe defendants should be especially sensitive to the facts of individual cases in applying the rule.
Specifically, we believe defendants should apply the rule with sensitivity to the hardship it sometimes places on students, such as these plaintiffs, who have transferred for legitimate educational reasons without the farsightedness or ability to transfer a semester prior to the athletic season they wish to participate in. However, as our analysis above indicates, we do not believe that plaintiffs’ opposition to, and our concerns about, the defendant mhsaa’s transfer-eligibility rule rises to the level of a constitutional right. Therefore, any attempt by plaintiffs to change the transfer-eligibility rule, and application of that rule, must be through the political, rather than the judicial, process. This Court is not the proper forum for making or reviewing decisions concerning the eligibility of transferring students in interscholastic athletics.
Affirmed.
See Grano v Ortisi, 86 Mich App 482; 272 NW2d 693 (1978); Milford v Peoples Community Hospital Authority, 380 Mich 49; 155 NW2d 835 (1968).
See In re United States ex rel Missouri State High School Activities Ass’n, 682 F2d 147 (CA 8, 1982).
616 SW2d 170 (Tex, 1981).
261 Ind 463; 305 NE2d 877 (1974).
See Missouri State High School Activities Ass’n, supra; Anno: Validity of regulation of athletic eligibility of students voluntarily transferring from one school to another, 15 ALR4th 885.
Minnesota v Clover Leaf Creamery Co, 449 US 456, 464-465; 101 S Ct 715; 66 L Ed 2d 659 (1981).
Rouge Parkway Associates v City of Wayne, 423 Mich 411, 422; 377 NW2d 748 (1985).
San Antonio Independent School Dist v Rodriguez, 411 US 1; 93 S Ct 1278; 36 L Ed 2d 16 (1973).
419 US 564; 95 S Ct 729; 42 L Ed 2d 725 (1975).
419 US 574.
MCL 380.1561; MSA 15.41561.
See Albach v Odle, 531 F2d 983, 985 (CA 10, 1976).
348 Mich 490; 83 NW2d 643 (1957). | [
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Per Curiam.
Defendant pled guilty to obtaining a controlled substance by fraud. MCL 333.7407(1)(c); MSA 14.15(7407)(1)(c). He was sentenced to five years probation with the first year to be served in the county jail.
Shortly after his release from jail, the probation department moved to amend defendant’s probation by adding the following conditions:
Add Rule 12: That he shall not leave his county of residence without prior knowledge and permission of the supervising probation agent.
Add Rule 13: That he shall submit to urinalysis screening as directed by his supervising probation agent and that his testing shall show no signs of the use of illegal drugs.
On appeal, defendant contests the constitutionality of the two conditions.
There appear to be no Michigan cases directly on point holding that submission to urinalysis testing is a lawful condition of probation. In Peo ple v Johnson, 92 Mich App 766; 285 NW2d 453 (1979), this Court upheld a probation condition that defendant cooperate in anti-drug efforts. The Court concluded:
In the instant case, we are unable to say that the condition of cooperating in anti-drug efforts was not rationally tailored to the defendant’s rehabilitation. Such a course of action would promote defendant’s withdrawal from the drug scene rather than impede it. Therefore, that condition was lawful. [92 Mich App 769.]
The condition of defendant’s probation, that he submit to unannounced urinalysis tests, is both lawful and rationally tailored to defendant’s rehabilitation.
A probationer retains only those rights which are consistent with his probationary status. People v Hardenbrook, 68 Mich App 640; 243 NW2d 705 (1976). A condition of probation restricting defendant’s right to travel may be imposed without violation of the constitution. People v Ison, 132 Mich App 61; 346 NW2d 894 (1984). Therefore, such condition is lawful.
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Per Curiam.
Plaintiffs’ decedent, Timothy Dye, was found dead in his Wayne County jail cell on June 4, 1980, hanging from the cell door bars by a towel around his neck. Plaintiffs filed a four-count complaint alleging (i) negligence in supervising inmates and providing defective premises, (n) a respondeat superior claim against the county defendants, (hi) wrongful death, and (iv) intentional infliction of emotional distress. The trial court granted partial summary judgment:
It is hereby ordered and adjudged as follows:
1. That pursuant to the provisions of Article VII, Section 6 of Michigan Constitution, the Defendant County of Wayne, Wayne County Board of Commissioners is not responsible for the acts of the Sheriff.
2. That pursuant to the Doctrine of Governmental Immunity, the Defendant County of Wayne, Wayne County Board of Commissioners is hereby dismissed from those allegations contained in Count i, Paragraph 9, Subsection (1) through (23).
3. That with respect to the allegations contained in Count ii, the County of Wayne, Wayne County Board of Commissioners is hereby dismissed from all allegations of negligence as asserted in Count ii.
4. That the Defendant William Lucas, pursuant to the provisions contained in MCLA 51.70; MSA 5.863 is not responsible for the acts of his deputies under any agency or respondeat superior theories as alleged in Count i and Count n of the Plaintiffs’ Complaint.
5. That the Defendant William Lucas, is hereby dismissed from all allegations contained in Count i, Paragraph 9, Subsections (1) through (26) except for those allegations contained in Subsections (1), (2), (8) and (13).
An near as we can determine, plaintiffs ultimately proceed to trial only on the theory that various deputies intentionally killed Timothy Dye. At the close of plaintiffs’ proofs, the trial court granted defendants a directed verdict.
On appeal, plaintiffs raise four issues. We affirm.
i
In reviewing a grant of a directed verdict, this Court reviews the evidence in a light most favorable to plaintiffs and determines whether a prima facie case was established. If there were material issues of fact upon which reasonable minds might differ, they must be submitted to a jury. Hall v Citizens Ins Co of America, 141 Mich App 676, 682; 368 NW2d 250 (1985).
Plaintiffs argue that the trial court erred in granting a directed verdict for defendants on the issue of whether Timothy Dye’s death was caused by the intentional tortious conduct of Wayne County Deputies acting within the scope of their duties. Plaintiffs’ exact theory with regard to what acts were done to bring about Timothy Dye’s death is unclear from the arguments below and plaintiffs’ brief on appeal. Plaintiffs apparently changed their theory from the initial claim of negligence, predicated on decedent’s suicide, to a claim of intentional homicide perpetrated by the deputies. This is the claim reviewed by the trial court in deciding defendants’ motion for directed verdict.
Other inmates testified that Timothy Dye and his brother Jeffrey were harassed by the deputies while incarcerated, including references made about Jeffrey Dye’s escape. The same inmates also testified that, two days before Timothy Dye was found dead in his cell, four or five deputies may have beaten him in his cell after he said something to one of them, although the altercation may only have involved yelling and an attempt to transfer Timothy Dye to another cell. After Timothy Dye was found dead, one of the deputies allegedly said "Jeffrey Dye’s life of crime is over now.” One deputy later said, "We got the wrong one.” There was also testimony by a social worker that Timothy Dye did not seem suicidal, and defendants stipulated that Dye’s death was unusual. No nearby inmates heard anything unusual that night, though the doors to the cells were apparently quite noisy. The inmate who found Dye apparently thought at first that Dye did not look as though he was hanging.
Viewed in light most favorable to plaintiffs, there was ample evidence that Timothy Dye’s death was by suicide. The above evidence was not sufficient for a reasonable person to conclude that Timothy Dye was murdered. We find that the trial court did not err in granting a directed verdict for defendants.
n
Plaintiffs called Marian Patricia Kobe, m.s.w., who had interviewed Timothy Dye shortly before his death, as an expert witness. Kobe interviewed Dye as part of her graduate work. Plaintiffs contend on appeal that the trial court improperly excluded her testimony to the effect that she did not believe Dye was suicidal, that the manner of his death was unusual, that she did not believe Dye’s death was a suicide, and her testimony concerning methods of suicide.
Kobe testified that Dye told her he was not thinking of suicide, but had previously feigned being suicidal in an attempt to "get up on the medical floor.” She testified that she did not believe Dye was suicidal at the time. After defendants objected to Kobe’s testifying about suicide methods, defendants stipulated that hanging one’s self with a towel is an unusual method of taking one’s own life, though it is not clear if the stipulation covered the situation of an inmate with few other means of doing so. Given this testimony, we question the relevance of evidence about other methods of suicide. We also concluded above in part i that Kobe’s testimony, viewed with the other evidence in a light most favorable to plaintiffs, was insufficient to survive the motion for directed verdict.
While Kobe had considerable experience in counseling and suicide prevention, and considerable contact with suicidal persons, nothing in the record suggests that she was an expert in forensic pathology or other forensic sciences such that she could determine when a death was a suicide. She was permitted to testify that she did not believe Dye was suicidal and that she was surprised by his death. We believe that was the extent of her expertise, based on the record before us. Therefore, the trial court did not abuse its discretion in excluding Kobe’s testimony as to the cause of Timothy Dye’s death. Wolak v Walczak, 125 Mich App 271, 276; 335 NW2d 908 (1983).
hi
Plaintiffs argue that the trial court erred in excluding evidence that Jeffrey had escaped and that eight deputies were disciplined as a result of the incident. Plaintiffs argue that this evidence was relevant to the motives for Timothy Dye’s alleged murder. It appears that none of those deputies was on duty the night that Timothy died, though one of the deputies on duty that night was on duty the night Jeffrey escaped. Plaintiffs’ theory seems to be that the fact that eight deputies were disciplined might have engendered hostility in other deputies. The trial court excluded the evidence as irrelevant.
The determination of relevancy is within the trial court’s discretion. Citizens National Bank of Cheboygan v Mayes, 133 Mich App 808, 811; 350 NW2d 809 (1984), lv den 421 Mich 852 (1985); MRE 403. We find no abuse of discretion here.
IV
Finally, plaintiffs argue that the pretrial summary judgment improperly dismissed Count i, paragraph 9(4) of their complaint, which alleged that defendants had:
The duty to maintain a proper, safe and non-defective-premises so that injury to Decedent could not occur, and so that Decedent could easily be kept under observation.
This is the only appeal plaintiffs make from the grant of summary judgment. Plaintiffs assert, apparently for the first time on appeal, that the jail cell was defective as it had horizontal cross bars which would enable persons within the cell to hang themselves or be hanged from the bars. Plaintiffs thus attempt to bring their claim within the public building exception to governmental immunity, MCL 691.1406; MSA 3.996(106).
This Court held in Mosqueda v Macomb County Youth Home, 132 Mich App 462, 469-470; 349 NW2d 185 (1984), that plaintiffs must sufficiently plead the statutory defect exception to governmental immunity in the complaint, including a specific allegation of the defect and a mention of the statute. Unlike the defendants in Davis v Detroit, 149 Mich App 236; 386 NW2d 169 (1986), a similar case involving a jail death by hanging, the instant defendants timely objected to plaintiffs’ complaint by moving for summary judgment. Accordingly, we find no error in granting summary judgment.
Affirmed.
The trial court, after saying that it did not believe a murder was involved, stated, "I would say—and I have to admit it’s kind of stretching the imagination for you, but for a direct [sic] verdict you might say that question has to go to the jury.” However, the trial court then concluded that a directed verdict was required because governmental immunity would bar plaintiffs’ claims for intentional torts under a respondeat superior theory, and that the county defendants could not be liable for ultra vires acts of their employees. Our conclusion that there was insufficient evidence of an intentional killing to survive the motion for directed verdict makes it unnecessary to decide this question. Nonetheless, our reading of Ross v Consumers Power Co (On Rehearing), 420 Mich 567, 621-625; 363 NW2d 641 (1984), convinces us that defendants would not be vicariously liable for such an intentional tort. See also Lowery v Dep’t of Corrections, 146 Mich App 342, 357; 380 NW2d 99 (1985). | [
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Per Curiam:.
Gregory R. Lucas appeals as of right from a February 8, 1983, decision of Wayne County Circuit Court. The court found that the Michigan Employment Security Commission (MESC) Board of Review had correctly interpreted the Trade Act of 1974, 19 USC 2201 et seq., in holding Lucas ineligible for Trade Readjustment Allowance (TRA).
Lucas was employed by Massey-Ferguson from September 24, 1974, through August 1, 1980. He worked on the cab line from 1978 until he was temporarily laid off on May 5, 1980. When he returned to work on June 23, 1980, he was assigned to the B-line. He worked on the B-line for two weeks and then took a medical leave of absence from July 7, 1980, to August 15, 1980, whereupon he was laid off again because the entire plant had been shut down August 1, 1980. The workers on the cab line who were laid off on or after August 1, 1980, were certified as eligible for TRA benefits by the Department of Labor. The workers on the B-line were denied eligibility to apply for adjustment assistance.
The MESC Board of Review found that Lucas had terminated employment on the certified cab line on June 23, 1980, upon his transfer to the B-line. Since the B-line was denied eligibility for adjustment assistance and that is the line from which Lucas was separated on August 1, 1980, he was found to be not eligible for adjustment assistance.
Lucas claims the MESC erroneously interpreted the TRA eligibility requirements. Under Michigan law, a decision by the MESC may be reversed only where it is contrary to law or is not supported by competent, material, and substantial evidence on the whole record. MCL 421.38(1); MSA 17.540(1); Chrysler Corp v Sellers, 105 Mich App 715; 307 NW2d 708 (1981). The issue in this case is a legal one, i.e., interpretation of provisions of the Trade Act of 1974.
19 USC 2291, in effect in 1980 stated in pertinent part:
"Payment of a trade readjustment allowance shall be made to an adversely affected worker covered by a certification under subpart A of this part who files an application for such allowance for any week of unemployment which begins after the date specified in such certification pursuant to section 2273(a) of this title, if the following conditions are met:
"(1) Such worker’s last total or partial separation before his application under this part, occurred—
"(A) on or after the date, as specified in the certification under which he is covered, on which total or partial separation began or threatened to begin in the adversely affected employment * * *.”
The certification by the Department of Labor provides in pertinent part:
"All workers of the North American Tractor Plant, Detroit, Michigan, of the Tractor Division of Massey-Ferguson Inc., engaged in employment related to the production of small farm tractors (A-line) who became totally or partially separated from employment on or after October 1, 1979, and workers engaged in employment related to the production of cabs for farm tractors (Artesian Building) who became totally or partially separated from employment on or after August 1, 1980, and before January 1, 1981, are eligible to apply for adjustment assistance under Section 223 of the Trade Act of 1974.
"I further determine that workers at the North American Tractor Plant, Detroit, Michigan, of the Tractor Division of Massey-Ferguson, Incorporated, engaged in employment related to the production of medium farm tractors (B-line) and loader-backhoes (C-line) are denied eligibility to apply for adjustment assistance under Section 223 of the Trade Act of 1974.
"Signed at Washington, D.C., this 30th day of June, 1981.”
29 CFR 91.7 also states qualifying requirements. It states in pertinent part:
"§ 91.7 Qualifying requirements.
"To qualify for a trade readjustment allowance an individual must meet each of the following requirements.
"(a) Certification. The individual must be an adversely affected worker covered by a certification.
"(b) Separation. The individual’s last separation must occur:
"(1) On or after the impact date * * *”.
29 CFR 91.3(a)(4) defines "adversely affected worker” for the purposes of the Trade Act:
"(4) 'Adversely affected worker’ means an individual who, because of lack of work in adversely affected employment:
"(i) Has been totally or partially separated from such employment, or
"(ii) Has been totally separated from employment with the firm in a subdivision of which such adversely affected employment exists.”
Section 91.3(a)(4)(ii) would seem to support Lucas’s interpretation that a claimant need not be directly separated if the other requirements are met. The fact that subsections (i) and (ii) are separated by the disjunctive "or” implies that (ii) is an alternative to (i). Subsection (i) states "from such employment”. Since "adversely affected employment” (i.e., "such employment”) is defined as "employment in a firm or appropriate subdivision of a firm if workers of such firm or subdivision are certified * * * as eligible to apply for adjustment assistance”, 29 CFR 91.3(a)(3), there would be no reason to provide an alternative to (i) unless the intention was to include workers who were not directly separated from "such employment”.
However, § 91.7(b)(1) requires that a claimant’s "last separation must occur: * * * [o]n or after the impact date”. "Last separation” is defined at 29 CFR 91.3(a)(20) as follows:
"(20) 'Last separation’ means the total or partial separation from adversely affected employment most recently preceding an individual’s application to trade readjustment allowances as to which it is determined that the individual qualifies under § 91.7.”
So, although a claimant need not necessarily be directly separated from "adversely affected employment”, it would seem that his previous separation from "adversely affected employment” still must occur on or after the impact date specified by the certification. This is precisely the point that should distinguish the present case from the case relied on by Lucas. Dewhirst v Review Board of Indiana Employment Security Division, 419 NE2d 150 (Ind App, 1981).
In the instant case, Lucas was separated from adversely affected employment (the cab line) on June 23, 1980. The impact date specified in the certification is August 1, 1980. Therefore, Lucas was not separated from adversely affected employment on or after the impact date and does not meet the requirements provided in § 2291 and § 91.7 to qualify for a trade readjustment allowance.
Lucas argues that to deny him TRA benefits because his employer transferred him to a noncertified product line shortly before layoff is unreasonable and unfair. However, it is a requirement of the Trade Act that an impact date be specified. 19 USC 2273(a). Since Mr. Lucas was separated from adversely affected employment before the impact date, he failed to meet a specific qualifying requirement. As such, the language of the act is clear and must be applied, not interpreted. City of Lansing v Lansing Twp, 356 Mich 641, 649; 97 NW2d 804 (1959).
We hold that MESC incorrectly interpreted 19 USC 2291 as well as the accompanying regulations, 29 CFR 91.7 and 29 CFR 91.3(a), subds (3), (4), (20), and the trial court incorrectly upheld its decision based upon this interpretation. Those sections do not require the separation of an employee directly from adversely affected employment. However, those sections do require that, in order to qualify for TRA benefits, the claimant’s separation from adversely affected employment, whether direct or indirect, must be on or after the impact date specified by the Department of Labor’s certification for adjustment assistance. Such was not the case herein.
While we reject the lower court’s interpretation of the statute, we affirm the result reached. Where, as here, the trial court achieves the right result, but assigns the wrong reason therefor, we will not disturb the result on appeal. Gilbert v Grand Trunk Western R Co, 95 Mich App 308; 290 NW2d 426 (1980).
Affirmed. | [
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R. R. Lamb, J.
Each of the defendants was charged with armed robbery, MCL 750.529; MSA 28.797, breaking and entering an occupied dwelling with the intent to commit larceny, MCL 750.110; MSA 28.305, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). Following a joint jury trial in the Detroit Recorder’s Court, defendant Cedric Hayden was convicted of all charges, defendant Eric Dickerson was convicted of the armed robbery and the breaking and entering charges, and defendant Abrom Hayden was convicted only of breaking and entering.
Cedric Hayden was sentenced to serve concurrent prison terms of from 10 to 20 and 6 to 15 years respectively on the armed robbery and breaking and entering convictions. A two-year consecutive term of imprisonment was imposed for the felony-firearm conviction. Eric Dickerson was sentenced to serve concurrent terms of imprisonment of from 15 to 30 years (armed robbery) and 7 to 15 years (breaking and entering). Abrom Hayden was sentenced to serve a term of from 3 to 15 years imprisonment for his breaking and entering conviction.
All three defendants now appeal as of right. This Court, on its own motion, consolidated the three appeals in an order dated February 2, 1983.
The charges arose out of a criminal transaction occurring on March 24, 1981, at the residence of Bernard Lafferty in Detroit. Lafferty testified that he was awakened at approximately 11:45 p.m. to find Cedric Hayden, partially masked, standing over his bed. Cedric pointed a sawed-off shotgun in Lafferty’s face and demanded guns, money, and jewelry. A second man, whom Lafferty could not identify, stood behind Cedric. This man was armed, with a revolver. Lafferty said that he could hear other individuals rummaging through the house, and he heard one of the offenders say something like "look here Tyronne”.
Lafferty’s observance of the two men lasted for approximately fifteen seconds. One of the men then kicked him in the face, and Lafferty buried his head into a pillow. Before the perpetrators left the premises, they tied Lafferty’s feet with an electrical cord and his hands with a belt.
After Lafferty heard the downstairs door close, he untied himself. He discovered that two television sets, a jewelry box containing $60 to $70 in coins, a "couple” of gold necklaces, and a revolver with serial number 707023 were missing. Lafferty’s roommate, Bruce Allen, also reported various items missing, including a deer rifle, over $400, and jewelry.
Birk Stennis testified that he was convicted of armed robbery and possession of a firearm during the commission of a felony arising out of the Lafferty incident. Stennis was sentenced to 1 year, 1 day to 20 years imprisonment for the robbery and an additional two-year consecutive term was imposed for the felony-firearm conviction. The prosecution dismissed another case against Stennis involving a charge of breaking and entering and agreed not to bring charges against him in three other matters in which he was implicated. In exchange for this disposition of the various crimi nal matters in which he was involved, Stennis agreed to testify against the defendants.
Stennis alleged that he had served as a lookout while the defendants and Aaron Hayden, also known as Tyronne, broke into the Lafferty home. Stennis’s description of the items which the four took from Lafferty’s house corroborated Lafferty’s testimony. Stennis specifically testified that defendant Dickerson returned to the car with a .38-caliber handgun he had taken from the Lafferty residence.
The remainder of the case against the defendants was "similar acts evidence”. Frank Sheckell described an attempted breaking and entering which occurred at his Birmingham home on April 27, 1981, thirty-four days after the charged offense. At approximately 3:15 a.m., on April 27, Sheckell was awakened by a noisy vehicle. A few minutes later he noticed a flashlight shining on the wall outside his bedroom door. Upon investigation, Sheckell saw persons outside by a downstairs window and another person walking back and forth on his porch. Upon hearing a tap on the window, and the window being raised, Sheckell turned on a light and yelled, and the intruders fled. The following evening, Sheckell found a revolver in his yard which proved to be the handgun stolen from Lafferty’s house.
At approximately 8:30 a.m. on April 27, Officer John Hepner received a radio transmission that a woman in Bloomfield Township had found three people in her car in her garage. This ultimately led to the arrest of the defendants in the area of the Sheckell home._
All three defendants admitted their involvement in the Sheckell incident. Their confessions were introduced into evidence. The trio stated that they ran away from the Sheckell house after hearing somebody scream and upon seeing a police car. Thereafter, the trio went to sleep in an automobile in a nearby garage.
Other facts will be set forth when relevant to specific issues.
I. Issues Common to All Defendants
Defendants first assert that the trial court erred in admitting into evidence the similar-acts testimony concerning the aborted attempt to break into the Sheckell residence. The admissibility of this evidence was extensively argued, and the trial court ultimately held that this evidence could be considered by the jury because the revolver taken in the Lafferty incident was found in Sheckell’s backyard. The court apparently did not believe that the two criminal incidents were so similar that the other-acts evidence tended to establish defendants as the perpetrators of the Lafferty incident through proof of a distinctive common modus operandi, although the prosecution on appeal argues for the admissibility of the other-acts evidence on this basis.
In People v Golochowicz, 413 Mich 298, 308; 319 NW2d 518 (1982), the Supreme Court held that, before similar-acts evidence may be introduced, the following requirements must be satisfied:
"(1) there must be substantial evidence that the defendant actually perpetrated the bad act sought to be introduced; (2) there must be some special quality or circumstance of the bad act tending to prove the defendant’s identity or the motive, intent, absence of mistake or accident, scheme, plan or system in doing the act and, in light of the slightly different language of MRE 404(b) we add, opportunity, preparation and knowledge; (3) one or more of these factors must be material to the determination of the defendant’s guilt of the charged offense; and (4) the probative value of the evidence sought to be introduced must not be substantially outweighed by the danger of unfair prejudice.” (Footnote omitted.)
In this case, defendants contend that the other bad act had no tendency to show their identities as the perpetrators of the crimes committed at the Lafferty residence. We agree that the Sheckell offense and the charged offense were not so similar that it was, in the words of the prosecution on appeal, as "if each of the defendants personally signed their names on Mr. Sheckell’s front door”. As appellate counsel for defendant Dickerson notes:
"Five participants, including accomplice Birk Stennis, were allegedly involved in the charged offense, while only three, defendant and codefendant Cedric and Abrom Hayden, participated in the subsequent breaking and entering. The charged offense took place late in the evening on the near east side of Detroit, the subsequent incident during the early morning hours in the northwest suburb of Birmingham. The charged offense was a brazen and forceful home invasion, the Birmingham incident a surreptitious cat burglar type crime.”
In Golochowicz, supra, p 325, the Supreme Court made it clear that when similar-acts evidence is introduced to prove identity through a distinctive modus operandi, the prosecution must show a "high degree of similarity” and that special characteristics "so uncommon, peculiar and distinctive” compel the conclusion that the defendant perpetrated the charged offense. In this case, to the extent that the charged offenses and the other acts were similar, they were not so distinctive as to compel the conclusion that the same person or persons were responsible for both criminal episodes. Indeed, the methods used to perpetrate each criminal episode strike us as singularly unexceptional and as being two common means of committing a breaking and entering.
We next consider whether, because a revolver stolen from the Lafferty residence was found in Sheckell’s yard within hours of the aborted effort to break into the Sheckell residence, the other-acts evidence was properly admitted. The parties argue this issue as if the dispositive question is whether a 34-day lapse of time between the theft of the revolver from Lafferty and its discovery on Sheckell’s property is such that the revolver can be characterized as "recently stolen”. Defendants argue that this time lapse so attenuates any possible inference that the possessor was guilty of the theft of the revolver that, as a matter of law, the jury should not have been allowed to infer guilt of the theft from the possession. While this presents an interesting question, it is one which we believe need not be answered. The issue as argued by the parties simply ignores testimony pertinent to resolution of evidence of the other-acts problem.
The testimony at trial indicates that only one revolver was stolen from Lafferty’s house. Birk Stennis, who admitted his involvement in the Lafferty incident and who alleged the involvement of the defendants, testified that defendant Dickerson returned from Lafferty’s home with a .38-cali-ber revolver which Dickerson admitted he had taken from the house. No other handguns were taken from Lafferty’s home. In respect to Dickerson, then, there was no reason to rely on the inference that one in possession of recently stolen property is the thief. Stennis’s testimony sufficiently established Dickerson’s status as the thief and possessor of the handgun. Thus, as to Dickerson, under the first three requirements of Golochowicz, supra, the trial court could permissibly allow the jury to consider his involvement in the Sheckell incident as material to a determination of his guilt in the Lafferty incident.
As to the defendants Hayden, however, there was no evidence introduced which tended to show their joint possession of the handgun with Dickerson. Nor were any other items stolen from the Lafferty house and tied to the Haydens found on Sheckell’s premises. Consequently, the other-acts evidence as to the Haydens required the jury to assume that any time Dickerson and others committed a criminal act, those others were the Hay-dens. In the absence of empirical evidence to the contrary, we do not believe it is reasonable to infer that, because a group of defendants committed one crime, that same group must also have committed a second crime because substantial evidence shows that one of the defendants participated in both offenses. Indeed, this case suggests a flaw in this inference. It is inherently believable that a criminal may commit his crimes with different accomplices. The other-acts evidence was impermissibly introduced against the Haydens, then, because the prosecution failed to prove that either of them possessed the handgun stolen from Lafferty.
We must now consider whether the introduction of the other-acts evidence entitles any of the defendants to reversal of their convictions. In this regard, we note that the court was very careful to charge the jury as to the limited purpose for which the other-acts evidence could be considered. This is a factor which, as to each of the defendants, weighs in favor of a finding that the introduction of the evidence was not harmful.
Dickerson’s counsel argues that, even if, as we have found, the first three prerequisites to admissibility under Golochowicz were satisfied, the probative value of the other-acts evidence was nevertheless substantially outweighed by the potential for unfair prejudice caused by its introduction. The evidence against Dickerson, apart from Stennis’s testimony, was not very compelling. As Dickerson’s counsel acknowledges, Stennis was extended favorable treatment by the prosecution in exchange for his testimony. Given this fact, the jury would naturally tend to be somewhat wary of his testimony. Under these circumstances, we cannot say that the trial court abused its discretion in finding that the probative value of the other-acts evidence was not outweighed by its prejudicial effect.
Dickerson also argues that a disproportionate amount of the trial was spent on the other-acts evidence given its limited purpose in the case, and, therefore, the jury may have been confused as to what crimes were actually in issue. We agree with defense counsel that entirely too much testimony was taken in respect to the Sheckell incident. The prosecution should have been limited in its presentation of the other-acts evidence to Sheckell’s testimony concerning the circumstances of the aborted breaking and entering, Dickerson’s confession that he was at Sheckell’s house with the intention of committing a breaking and entering (but redacted to exclude any reference to the Haydens as his cohorts), and proof that the gun found on Sheckell’s property was the same weapon stolen from Lafferty. Nevertheless, we do not believe that Dickerson is entitled to reversal of his convictions on this basis. The most incriminating aspects of the other-acts evidence were properly admitted. In light of the court’s cautionary instructions, we do not believe that the excessive .scope of the other-acts evidence confused the jury or was otherwise harmful.
As to defendant Cedric Hayden, because he was identified by Lafferty at a line-up and in court, we find that the exclusion of the other-acts evidence would not have altered a reasonable juror’s opinion that he was guilty of the crimes of which he was convicted. As we have relied on the identification of Cedric Hayden in finding admission of the other-acts evidence harmless as to him, we now analyze his argument that the line-up and in-court identifications should have been suppressed.
The following facts are applicable to the identification issue. Detroit Police Officer Jerry Conklin, the officer in charge of the Lafferty investigation, learned that the revolver taken from Lafferty’s residence was found in Birmingham. He later discovered that Cedric Hayden, Abrom Hayden, and Eric Dickerson were in custody. Thereafter, Officer Conklin obtained photographs of the three defendants. These photos were placed in a mug book which contained in excess of 200 photos and the book was shown to Lafferty at his residence. Lafferty tentatively identified defendants Dickerson and Cedric Hayden. No counsel was present at this showing, however, and the prosecutor conceded that, pursuant to People v Anderson, 389 Mich 155; 205 NW2d 461 (1973), the photographic identifications had to be suppressed.
Thereafter, a live line-up in which all three defendants participated was conducted. At this time, Lafferty identified Cedric Hayden as the gunman. Neither Dickerson nor Abrom Hayden was identified.
On appeal, and in the trial court, Cedric Hayden has asserted that the line-up and in-court identifications were mere extensions of the impermissible photographic show-up. The trial court conducted a Wade hearing [United States v Wade, 388 US 218; 87 S Ct 1926; 18 L Ed 2d 1149 (1967)], considered and weighed all the factors set forth in People v Kachar, 400 Mich 78; 252 NW2d 807 (1977), and found that there was an independent basis for both the line-up and in-court identifications. We will not upset a lower court’s ruling at a suppression hearing unless it was clearly erroneous. People v Ealey, 102 Mich App 301, 305; 301 NW2d 514 (1980). On the record before us, we are convinced that the trial court’s ruling was correct. Had the police exploited the photographic show-up conducted without counsel present we would have anticipated positive identifications of all of the defendants at that time. Moreover, Lafferty, who had tentatively identified Dickerson’s photo, forthrightly admitted that the only person he could identify at the live line-up was Cedric Hayden. We are impressed with Lafferty’s sincerity and find no error in the admission of his line-up and in-court identifications.
In respect to defendant Abrom Hayden’s conviction, the admission of the other-acts evidence requires reversal. Without the other-acts evidence, the case against Abrom was based on accomplice Stennis’s testimony. As noted earlier, there is reason to conclude that .reasonable jurors might not have chosen to convict the defendants of any of the crimes alleged against them based solely on Stennis’s testimony.
Defendants next assert that the trial court’s other-acts evidence instruction was erroneous because it had the tendency to dilute the constitutionally required burden of proof beyond a reasonable doubt. See In re Winship, 397 US 358; 90 S Ct 1068; 25 L Ed 2d 368 (1970). Specifically, defendants object to the court’s instruction that the jury could infer that defendants had taken the revolver if it found that defendants possessed it at a time when it could be characterized as "recently stolen” and this possession was "not explained”. It is the phrase "not explained” appearing in the charge which defendants assert is constitutionally offensive. The court’s instruction was patterned after CJI 23:1:02 which, at that time, used the phrase "if not explained” in respect to the permissible inference which may be drawn from possession of recently stolen property. A similar argument was made and rejected in People v Wilbert, 105 Mich App 631, 635-639; 307 NW2d 388 (1981). As in Wilbert, the trial court here was careful to instruct the jury that the inference need not be made. We conclude that the instruction passes constitutional review.
Defendants also assert that the court’s failure to incorporate CJI 3:1:10, ¶¶ 6 and 7, into its instruction on mixed direct and circumstantial evidence requires reversal of their convictions. This argument was rejected in People v Corbett, 97 Mich App 438, 443-445; 296 NW2d 64 (1980), lv den 411 Mich 856 (1981). See also People v Mahaday, 108 Mich App 591, 595; 310 NW2d 805 (1981), lv den 411 Mich 1079 (1981).
Defendants further assert that their convictions must be reversed because the prosecutor asked the police witness who took their statements whether Cedric Hayden had said that he possessed a gun while he was on Sheckell’s property. All defense counsel objected, contending that the question was asked in violation of a court order. Following arguments outside the presence of the jury, the court ruled that the inquiry was impermissible. When the jury returned, the trial court delivered a strong cautionary instruction, telling the jurors not to speculate as to the answer which might have been given to the question.
It is not clear that the prosecutor violated the court’s order by asking the question. The court had ruled inadmissible any testimony concerning the questioning of Cedric Hayden in respect to the theft of a gun in an unrelated crime. The prosecutor contended that he had no intention of asking about that crime but, rather, wanted to elicit testimony pertaining to LafFerty’s gun found on the Sheckell property. The trial court ruled this line of questioning improper because the prosecutor admitted that each of the defendants had denied possessing a gun.
It is difficult to understand either the prosecutor’s desire to elicit this testimony or the defense’s desire to have it excluded. The anticipated responses would seem to support defendants’ contention that they did not possess the LafFerty gun —particularly given that each of the defendants made statements in which they admitted an intent to commit criminal acts on the Sheckell property. In light of this fact and the court’s cautionary instruction, we find no basis for reversal in this assignment of error.
Defendants also contend that the trial court erred in charging the jury on their theories of the case without a request for such an instruction. Counsel for defendants objected to the court’s action in this regard. On appeal, defendants argue that the trial court misstated their theories of the case. Although the judges of this Court are not unanimous in their views, it has been held that, where a defendant fails to request an instruction on his theory of the case, the trial court is nevertheless obligated to provide such an instruction where the theory presented by defendant is a central issue in the case. See, e.g., People v Gayton, 81 Mich App 390, 394; 265 NW2d 344 (1978). Contra: People v Gary Wilson, 122 Mich App 1, 2-3; 329 NW2d 513 (1982). In any case, if the trial court does take it upon itself to instruct on the defendant’s theory, the theory presented must be accurate. People v Peery, 119 Mich App 207, 217; 326 NW2d 451 (1982).
In our opinion, the court’s statement of defendants’ theories of the case accurately summarized the arguments of defense counsel. On appeal, counsel fail to explicitly delineate in what manner the court’s instruction was incorrect. Under these circumstances, reversal is not required.
Defendants also argue that the trial court erred in allowing the prosecutor to indorse certáin witnesses, including Birk Stennis, after the final pretrial hearing was conducted in this case. The statutory provision requiring the indorsement of witnesses, MCL 767.40; MSA 28.980, specifically allows for their late indorsement, even during trial. As the lower court noted, the purpose of this provision is to ensure that the defense has an adequate opportunity to prepare its case. See People v Hence, 110 Mich App 154, 166-169; 312 NW2d 191 (1981); People v Henry, 101 Mich App 585, 588; 300 NW2d 639 (1980), lv den 411 Mich 386 (1981). In allowing the late indorsement, the trial court adopted specific procedures to guarantee that the defense would have adequate time to prepare. Defendants have failed to prove that their ability to present their defenses was prejudiced by the late indorsement. We are convinced that the trial court did not abuse its discretion in this regard.
Defendants also contend that they were denied certain discovery in advance of trial. However, defendants fail to detail what evidence they were denied through discovery or how this denial prejudiced their defenses. Our review of the record fails to answer these questions. Consequently, we see no basis for reversal in this assignment of error.
Defendants’ final common claim is that the trial court erred in denying their motion for a mistrial, made after the following question was asked by the prosecutor during voir dire:
"You do understand that at some time in the past the defendants were arrested and charged with this crime. Is that correct?”
The trial court immediately cautioned the jurors that just because defendants were arrested and charged in connection with the crimes did not necessarily mean that they were guilty. Moreover, even in the absence of such a cautionary instruction, we do not believe that this inquiry would compel reversal. It would be the height of naiveté to believe that the jurors would not surmise that the defendants had been arrested for, and charged with, the crimes for which they were on trial.
II. Issues Common to Dickerson and Cedric Hayden
Defendants assert that the trial court’s instructions on armed robbery were erroneous and require reversal. The trial court charged the jury that, if defendants were in actual possession of a dangerous weapon at the time they robbed Lafferty, they could be convicted of armed robbery even if the weapon was not used or seen by Lafferty.
The parties frame this issue as requiring us to choose between one or two conflicting analyses heretofore adopted by different panels of this Court. In People v Parker (On Rehearing), 100 Mich App 406; 299 NW2d 56 (1980), this Court held that a defendant could be convicted of armed robbery in the absence of proof, apart from his mere words, that he possessed a dangerous weapon or an article used or fashioned as a dangerous weapon. In People v Krist, 93 Mich App 425, 431-433; 287 NW2d 251 (1979), lv den 407 Mich 963 (1980), on the other hand, this Court held that an armed robbery conviction could not be sustained where only the defendant’s oral insinuations would support a finding that defendant possessed a gun in committing the robbery.
Following the submission of this case, however, the Michigan Supreme Court issued its opinion in People v Parker, 417 Mich 556; 339 NW2d 455 (1983), reversing this Court’s decision in Parker on the basis that the trial court’s instructions on armed robbery did not stress that the jury’s focus must be on the actual presence of a weapon and not the belief of the victim that defendant possessed a weapon. In Parker, the prosecution’s case for an armed robbery conviction rested on defendant’s actual possession of a dangerous weapon. The Supreme Court determined that there was not sufficient evidence from which the jury could conclude that defendant had fashioned an article harmless in itself in such a manner as to induce the victim’s reasonable belief that he did possess a dangerous weapon. The Supreme Court in Parker rejected the reasoning of Krist to the extent that Krist held that the defendant’s mere words are insufficient to establish that he did, in fact, possess a dangerous weapon.
The armed robbery statute, MCL 750.529; MSA 28.797, as recently acknowledged by the Supreme Court in Parker, embodies two alternative methods for proving a violation of the statute. The first method is proof beyond a reasonable doubt that a dangerous weapon was possessed, whether or not the weapon was actually seen by the victim. This alternative represents an eminently reasonable legislative determination that the mere possession of a dangerous weapon escalates the risk of violence and the degree of danger to the victim, even if the weapon is not seen by the victim. If the weapon is possessed by the defendant, the possibility that it will be used exists and this is a sufficient basis to define the offense as an armed robbery.
The second method of proving an armed robbery is to show that the defendant used or fashioned an article in such a manner as to cause the victim to reasonably believe that a dangerous weapon could be employed. Several reasonable legislative decisions could be the basis for this alternative. First, where the defendant induces the victim to turn over his property by the threat of violence associated with a dangerous, weapon, since that false threat and apparent possession of the weapon nevertheless facilitate the robbery, the Legislature might have concluded that the defendant should be treated as if he actually did possess the dangerous weapon. Second, the Legislature could simply have been concerned that persons actually guilty of armed robbery would escape liability commensurate with their acts because of the frequent inability of the victim to honestly testify to anything more than that "it looked like the defendant had a gun”. Third, the Legislature could have concluded that the potentially more severe psychological consequences to the victim of an assault believed to be accomplished with a dangerous weapon should be the basis for escalating the defendant’s criminal liability.
In this case, Lafferty positively identified Cedric Hayden as the individual who pointed a sawed-off shotgun in his face. As such, the evidence was certainly sufficient to convict him of armed robbery. Without regard to the possibility that Dickerson was found guilty as an aider and abettor, Stennis testified that Dickerson went into Lafferty’s house armed with a handgun. We believe that this testimony was sufficient to allow the jury to conclude that Dickerson possessed a dangerous weapon.
Unlike the situation in Parker, the trial court’s instructions in this case did not direct the jury’s attention to the victim’s belief that defendants were armed but, rather, the actual presence of a weapon. Therefore, no reversal is required on this basis.
Defendants also argue that their convictions must be reversed because no gun was ever introduced into evidence. In People v Mason, 96 Mich App 47, 51; 292 NW2d 480 (1980), one panel of this Court said in dictum that, where the victim testifies that he saw a gun, the defendant may permissibly be convicted of felony-firearm even if the weapon is never recovered. We agree with this view. Where conviction of an offense requires proof beyond a reasonable doubt that a defendant possessed a firearm, this element may be proven without the actual admission into evidence of the weapon. To hold otherwise would greatly reduce the protections afforded by those statutes intended to stop the illegal use of firearms.
III. Issue Applicable to Cedric Hayden Only
Defendant contends that the trial court invaded the province of the jury by giving the jurors the impression that defendant made statements to a police officer concerning the Sheckell incident. We disagree. In instructing the jury in respect to the alleged statements, the trial court was careful to inform the jurors that they must find that each statement was, in fact, made by Cedric Hayden before they could consider that statement for any purpose.
IV. Issues Applicable to Abrom Hayden Only
Defendant contends that the evidence was insufficient to support his conviction for breaking and entering. Specifically, defendant alleges that the prosecution failed to show that he participated in a breaking. We disagree. Stennis testified that he was approached by the three defendants and Aaron "Tyronne” Hayden to participate in a "rush job”. Stennis served as a lookout, and stated that Abrom returned with a rifle and some coins. Lafferty testified that his door had been damaged during the breaking. Although the evidence is not compelling that this defendant actually participated in the breaking of the door, the evidence was ample to prove defendant’s guilt as an aider and abettor beyond a reasonable doubt. People v Clark, 34 Mich App 70, 72; 190 NW2d 726 (1971).
V. Issue Applicable to Dickerson Only
Defendant contends that he was denied the effective assistance of counsel when his substitute attorney at sentencing failed to bring to the court’s attention several factual errors in the presentence report. Moreover, defendant contends that substitute counsel was ineffective in that he failed to inform the judge that the prosecution had recommended a sentence of 10 to 20 years imprisonment in a pretrial conference before this case was tried and in failing to argue that, by acquitting defendant of the felony-firearm count, the jury must have believed he was not as culpable as the other participants in the Lafferty episode.
We are precluded from granting defendant any relief. In an order dated February 1, 1983, another panel of this Court denied defendant’s motion to remand on this same issue "for lack of merit in the ground presented”. Therefore, we are precluded from reaching the merits of this issue by the law of the case doctrine. See, e.g., People v Wiley, 112 Mich App 344, 346; 315 NW2d 540 (1981).
Defendant Dickerson’s and defendant Cedric Hayden’s convictions are affirmed. Defendant Abrom Hayden’s conviction is reversed and his case is remanded for a new trial.
Aaron "Tyronne” Hayden was also charged in the Lafferty incident. However, he was never apprehended and, consequently, was not tried with the three defendants.
The prosecution argument is confused in that the relevant inquiry is whether the similarities between the Sheckell and Lafferty episodes were such that it can be said that the defendants left their signatures on Lafferty’s door. The confessions by the defendants fully establish their involvement in the Sheckell matter.
Indeed, Stennis indicated that he was solicited by the other defendants to participate in a "rush job” of Lafferty’s house. He defined a "rush job” as going up to somebody’s house and simply walking inside. Stennis’s testimony, itself, implies that the method used in the Lafferty incident is a recognized technique in breaking and entering offenses and anything but distinctive. Moreover, the aborted Sheckell breaking and entering was a surreptitious "cat burglar” type effort, not a "rush job”.
It is well established that the jury may infer that the possessor of recently stolen property was the thief. See, e.g., People v Williams, 368 Mich 494, 501; 118 NW2d 391 (1962), cert den 373 US 909; 83 S Ct 1297; 10 L Ed 2d 411 (1963); People v Fry, 17 Mich App 229, 231; 169 NW2d 168 (1969).
No Michigan decisions have considered what lapse of time between the theft, and defendant’s possession of, a firearm renders the inference that the possessor was the thief too attenuated to allow the inference to be drawn. This problem has been addressed by other jurisdictions which have reached conflicting results and which decisions are generally closely tied to the specific circumstances of the case. See Anno: What Constitutes "Recently” Stolen Property Within Rule Inferring Guilty From Unexplained Possession of Such Property, 89 ALR3d 1202, § 13, pp 1228-1229. None of the decisions collected in the annotation held that the inference could not be drawn where the time lapse between the theft and the discovered possession was as slight as 34 days. However, in at least one of these decisions, Robinson v State, 257 So 2d 300, 302 (Fla App, 1972), language employed in the opinion would support the notion that a 34-day lapse is too long. The Robinson Court said:
"[T]he doctrine as to possession of recently stolen property can be invoked when a longer period between the time of its theft and its discovery is involved where the item is an automobile which presents difficulty and legal complications for its sale or transfer, than would be applied to an item such as a 'two dollar pistol’, which can be passed from hand to hand almost as readily as a pack of cigarettes. In the instant case it does not appear to have been established that the gun in question was recently stolen property.” (Emphasis added.)
Although MRE 404(b) is usually referred to as the similar-acts rule, the fact is that MRE 4040?) does not. even use the term "similar” but, rather, refers to "evidence of other crimes, wrongs or acts”. The rule is most frequently invoked to prove matters which require a high degree of similarity between the charged offense and the other act for the other-acts evidence to be very probative and admissible. However, a "special quality or circumstance of the bad act” may give the other act a high degree of probative value even where there is little similarity between the other act and the charged offense. For instance, in a murder prosecution, depending on the specific circumstances, it may be proper to introduce testimony that the victim of the homicide had earlier reported to the police some other criminal activity of the defendant to establish a motive for the killing.
This fact distinguishes this case from People v Thompson, 114 Mich App 302, 307; 319 NW2d 568 (1982), in which this Court allowed the inference to be drawn against one of two individuals, both of whom were stopped in a truck containing the stolen goods within minutes of the crime. In Thompson, this Court essentially found joint possession of the stolen property given that the defendant and the other person in the truck were apprehended together and other evidence tended to show that they had acted in concert to commit the crime.
In fact, this issue is raised only by defendant Dickerson. However, because this is a consolidated appeal arising out of one trial, we choose to give each of the defendants the benefit of any issue raised by any one of the defendants to the extent that that issue is applica ble to more than one defendant. We do this to avoid inconsistent results on appeal which would only result in further appellate litigation.
CJI 3:1:10(6) and (7), which has been superseded by CJI 4:2:02, provided:
"(6) Circumstantial evidence must be considered by the following rules:
"(A) The circumstances themselves must be believed.
"(B) The circumstances must be consistent with guilt and inconsistent with innocence.
"(C) The circumstances must be of such a conclusive nature and tendency that they convince you beyond a reasonable doubt of the defendant’s guilt.
"(7) If the evidence is open to two reasonable constructions, one indicating guilt and the other innocence, it is your duty to accept the construction indicating innocence.”
This issue is actually raised only by defendant Abrom Hayden. See fn 8 supra.
This claim is actually raised only by defendant Cedric Hayden. See fn 8 supra.
Actually only counsel for Dickerson and Cedric Hayden spoke to this issue below. However, early in the proceedings the court told counsel that it would treat an objection by any one of them as pertaining to each of the defendants unless a particular attorney explicitly opted out of the objection.
This issue is raised by Cedric Hayden. See fn 8 supra.
This issue is actually raised by Cedric Hayden. See fn 8 supra.
This issue is raised by Cedric Hayden. See fn 8 supra.
Since Abrom Hayden was acquitted of armed robbery, this issue is inapplicable to him.
MCL 750.529; MSA 28.797 provides in pertinent part:
"Any person who shall assault another, and shall feloniously rob, steal and take from his person, or in his presence, any money or other property, which may be the subject of larceny, such robber being armed with a dangerous weapon, or any article used or fashioned in a manner to lead the person so assaulted to reasonably believe it to be a dangerous weapon, shall be guilty of a felony, punishable by imprisonment in the state prison for life or for any term of years.”
Indeed, the failure of the robber to show the dangerous weapon he possesses may well affirmatively enhance the prospects that the robbery will become violent. The victim who is not shown the dangerous weapon is more likely to attempt to resist than is the victim staring down the wrong end of a gun barrel.
This issue is raised by Cedric Hayden. See fns 8 and 16 supra. | [
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Per Curiam.
The prosecutor appeals the dismissal with prejudice of the charge against defendant for receiving and concealing stolen property valued over $100, MCL 750.535; MSA 28.803. By opinion dated January 11, 1983, the trial court ruled that defendant was an "inmate” for purposes of the 180-day rule and granted defendant’s motion to dismiss.
Defendant was arrested on June 16, 1982, while on parole from the Department of Corrections. He was unable to make bail and was therefore detained in the Jackson County jail. On June 28, 1982, defendant waived preliminary examination and the Department of Corrections placed a parole hold against him. Following the pretrial conference on October 15, 1982, defendant filed motions to suppress testimony, for severance of his trial from that of his codefendants and for a bill of particulars. The motions were granted, and on December 20, 1982, the trial date was set for January 18, 1983. Defendant filed a motion to dismiss for violation of the 180-day rule of MCL 780.131 et seq.; MSA 28.969(1) et seq., on December 23, 1982.
The question presented is whether an individual detained in a local facility, and against whom a parole hold has been filed, is "an inmate of a penal institution of this state” to whom the protection of the 180-day rule applies. We hold that he is not and reverse the order of dismissal entered by the trial court.
In People v Hill, 402 Mich 272, 280-281; 262 NW2d 641 (1978), the Supreme Court set forth the following discussion on the running of the 180-day statutory time period:
"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 extent of the statute has been said to be "unambiguously plain” and the Supreme Court has emphasized that the object of the act is to dispose of untried charges against prison inmates and, to that effect, the statute "is to be applied as written”. People v Woodruff, 414 Mich 130, 136; 323 NW2d 923 (1982).
Although the Supreme Court has not addressed this issue in the context of the present factual situation, other panels of this Court have recently considered the applicability of the 180-day rule to parolees. In People v Wright, 128 Mich App 374; 340 NW2d 93 (1983), under facts substantially similar to those of the present case, this Court held that the filing of a parole hold did not trigger the running of the 180-day time period. Continuing, the Court stated that, until parole was revoked, a paroled prisoner who was being held in a local facility was not awaiting incarceration in a state prison by virtue of the parole hold. Thus, the 180-day rule was inapplicable and the dismissal of the criminal charges was improper.
A similar result was reached in People v Sanders, 130 Mich App 246; 343 NW2d 513 (1983). In that case, this Court examined the scope of the phrases "penal institution” and "state prison” and determined that the 180-day rule only applies "where a person is assigned to a state correctional facility on preparóle status”. Although a parolee is technically under the legal custody and jurisdiction of the Department of Corrections, the parolee is free from the enclosures of the prison facility and, therefore, is not an inmate of a state penal institution or incarcerated for purposes of the 180-day rule.
We find the cases cited above to be dispositive. Keeping in mind that the object of the act is to dispose of untried charges against prison inmates, Woodruff, supra, we hold that defendant was not an inmate for purposes of the 180-day rule. Defendant was not incarcerated in a state prison nor under detention in a local facility awaiting incarceration in a state prison. Thus, the trial judge erroneously dismissed the charge pending against defendant.
Due to our resolution of the threshold question on the applicability of the statutory 180-day time period, we need not address the second issue raised by the prosecutor. We note, however, that defendant, by virtue of his status as a parolee, has not lost the right to avail himself of other means by which to secure a prompt disposition of any pending charges, such as the constitutional right to a speedy trial. US Const, Am VI; Const 1963, art 1, §20.
Reversed and remanded for further proceedings. | [
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Per Curiam.
This case involves a dispute over the ownership of certain Series HH United States savings bonds purchased by the deceased. Respondents appeal as of right from an opinion of the probate court finding petitioner Delores Haase sole owner of the bonds and the court’s subsequent denial of their motion for rehearing. We affirm.
Petitioner is a niece by marriage of Lydia Bell, who died testate on January 27, 1984. Respondents are also Bell’s nieces. On October 7, 1981, Bell purchased $7,500 worth of Series HH United States savings bonds which named herself and petitioner as co-owners. On November 21, 1981, Bell purchased additional Series HH savings bonds. Bell and petitioner were named as co-owners of $35,000 worth of these bonds. The bonds were stored in Bell’s safe deposit box until her death.
On November 27, 1981, six days after the second purchase, Bell issued a codicil to her will providing that the bonds she purchased as co-owner with petitioner should be divided among Bell’s nieces, nephews, grandnieces, and grandnephews.
Following Bell’s death, her will and the codicil were admitted into probate. Petitioner, as personal representative of the estate, filed a petition to determine title to the savings bonds issued to Bell and petitioner as co-owners. Following a hearing, the probate court issued a written opinion finding that petitioner held rights of survivorship in the bonds and was now their sole owner. The court found that the interests in the bonds were analogous to interests in bank accounts held in joint tenancy with rights of survivorship and, accordingly, the mandates of MCL 487.703; MSA 23.303 were applicable to resolve this dispute. Pursuant to this statute, the probate court applied a presumption that petitioner possessed a right of survivorship in the jointly-held bonds and found that respondents failed to produce sufficient evidence to overcome this presumption. The probate court subsequently denied respondents’ motion for rehearing or new trial.
On appeal, respondents contend that the probate court committed error requiring reversal in apply ing the presumption of a right of survivorship in joint bank accounts set forth by MCL 487.703; MSA 23.303, and, consequently, in finding petitioner sole owner of the savings bonds by right of survivorship. We agree with respondents that the court’s reliance on the statute constituted error. Nevertheless, this Court will not reverse where the lower court reaches the right result for the wrong reason. In the Matter of Slis, 144 Mich App 678; 375 NW2d 788 (1985). We conclude that under the federal regulations governing ownership of Series HH savings bonds, when Bell died petitioner, as surviving co-owner of the savings bonds, was vested with absolute ownership of the bonds.
A U S savings bond is a valid and binding contract between the federal government and the parties named on the bond. Wolak v United States, 366 F Supp 1106 (D Conn, 1973). The treasury regulations under which savings bonds are issued form part of this contract, and such regulations have the force and effect of federal law. In re Estate of Chase, 82 Idaho 1; 348 P2d 473 (1960).
The treasury regulations governing Series HH savings bonds are found at 31 CFR 353. 31 CFR 353.5(a) provides:
Savings bonds are issued only in registered form. The registration must express the actual ownership of, and interest in, the bond. The registration is conclusive of ownership.
31 CFR 353.70 provides in pertinent part:
The following rules govern ownership or entitlement where one or both of the persons named on a bond have died without the bond having been surrendered for payment or reissue:
(b) If one of the coowners named on a bond has died, the surviving coowner will be recognized as the sole and absolute owner, and payment or reissue will be made as though the bond were registered in the name of the survivor alone.
Under these regulations, it is clear that when a co-owner of a savings bond dies, the surviving co-owner is vested with absolute ownership of the bond. Accord: In re Estate of Chase, supra; Marcum v Marcum, 377 SW2d 62 (Ky App, 1964), In re Haas’s Estate, 10 NJ Super 581; 77 A2d 523 (1950). See also Anno: Rights Upon Death of Co-Owners of United States Savings Bonds, 37 ALR2d 1221, and cases cited therein. The fact that the savings bonds were purchased solely with the funds of the deceased co-owner Bell does not affect the rights of the surviving co-owner to absolute ownership in the bonds. See, e.g., Marcum v Marcum, supra, Levites v Levites, 27 111 App 2d 274; 169 NE2d 574 (1960). See also 37 ALR2d, supra, and cases cited therein. Moreover, this right of absolute ownership cannot be defeated by Bell’s codicil. The federal law represented by the treasury regulations is supreme, Free v Bland, 369 US 663; 82 S Ct 1089; 8 L Ed 2d 180 (1962); the statutory right afforded by the state to dispose of property by will must therefore yield to the regulations. See Ex Parte Little, 259 Ala 532; 67 So 2d 818 (1953).
Respondents further assert that the probate court committed error requiring reversal in concluding that Bell made a gift of an interest in the savings bonds in favor of the petitioner because each of the elements necessary to establish an inter vivos gift has not been satisfied. See, e.g., Serkaian v Ozar, 49 Mich App 20; 211 NW2d 237 (1973). The argument is without merit. The law of gifts has no application to the question of a co-owner’s ownership of a savings bond upon the death of another co-owner. Marcum v Marcum, supra. This is because, as noted above, a savings bond is a valid and binding contract. As such, ownership is fixed by the terms of the bond contract, including the treasury regulations (which a party is presumed to know), not be the transfer and acceptance of physical possession. Under the treasury regulations, the ownership interests in the bonds were fixed at the time of purchase. No more was needed to create an ownership interest in petitioner.
Affirmed. | [
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Per Curiam.
This appeal is the result of directed verdicts for defendants in this medical malpractice suit. Two issues are raised. One deals with the court’s determination of whether a witness is competent to testify as an expert. The other concerns the protections of the "Good Samaritan” act when an outside doctor is contacted by a hospital on behalf of a patient.
The facts center around the birth and first few hours of Jamie Lynn Higgins’ life, and can be stated briefly for purposes of this appeal. After birth at defendant Riverside Osteopathic Hospital, the delivery doctors, defendants David Wolf, D.O. and Raymond Dieter, D.O., noted that the newborn was having difficulties. Dr. Wolf requested the hospital contact defendant Rick Poston, D.O., a pediatrician. Following a telephone call at his home, Dr. Poston rushed over to the hospital and conducted a series of tests before having Jamie Lynn transferred to another hospital that specialized in neonatal care.
Plaintiff sued all involved for medical malpractice. The trial court granted directed verdicts for defendants. Plaintiff appeals.
The first issue relates to expert testimony. At trial, plaintiff offered several doctors as expert witnesses. The trial court refused to allow these doctors to testify as to the osteopathic standard of care. Plaintiff argues that this refusal was error. We agree.
The general rule is found in MRE 702 which provides:
If the court determines that recognized scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert by knowledge, skill, experience, training, or education, may testify thereto in the form of an opinion or otherwise.
This Court in Haisenlenden v Reeder, 114 Mich App 258, 264-265; 318 NW2d 634 (1982), lv den 417 Mich 969 (1983), stated the general rule and applied it to a case very similar to the present one:
In the present case, the court concluded that Dr. Baublis could not base his knowledge of the applicable standard of care upon hearsay information from contact with other physicians. This conclusion was erroneous.
A witness may be qualified as an expert "by knowledge, skill, experience, training, or education”. MRE 702. Siirila v Barrios, 398 Mich 576, 591; 248 NW2d 171 (1976). Medical training, experience and continuing review of literature may be sufficient, Croda v Sarnacki, 106 Mich App 51, 60; 307 NW2d 728 (1981).
A member of one medical school of thought may testify as to the standard of care applicable to members of another school of thought if the witness is familiar with the applicable standards of care, Siirila, supra, 591. A specialist may testify as to the standard of care for a general practitioner. As stated in Siirila:
"The rule therefore as to the ability of a specialist testifying as to a general practitioner’s compliance with the requisite standard of care of a general practitioner is only that the witness have knowledge of the standard of care about which he or she is testifying. The standard of care discussed must of course be that of a general practitioner. . . . The weight to be given such testimony is, of course, a matter for the jury.” Siirila, supra, 593.
Finally, the geographical area of practice is not determinative; only whether the proposed expert knew what the practice was. Callahan v William Beaumont Hospital, 400 Mich 177; 254 NW2d 31 (1977). See also LeBlanc v Lentini, 82 Mich App 5; 266 NW2d 643 (1978).
Applying these rules to the present case leads us to conclude that the trial court erred in refusing the testimony of the proffered witness. Unlike the proposed expert witnesses in Siirila, supra, and Callahan, supra, Dr. Baublis testified that he knew the standard of care for an emergency room physician. He also stated that the standard would apply to an osteopathic physician. The foundation for Dr. Baublis’s knowledge was his experience in emergency rooms, although several years ago, and frequent contact with emergency room osteopathic physicians requesting consultation. Merely because Dr. Baublis was a specialist and not a "troop in the trench” does not render him unqualified as long as he knows the applicable standard of care. The weight of his opinion is for the jury to decide.
In the instant case, plaintiffs counsel offered Edgar Beaumont, M.D., Lee B. Stevenson, M.D., and Charles Vincent, M.D. as expert witnesses. Dr. Beaumont testified that he was board certified in pediatrics and neonatal-perinatal medicine (the care of infants during their first twenty-eight days of life). For the last 2 Vi to 3 years Dr. Beaumont had worked with osteopathic pediatricians on staff at Butterworth Hospital in Grand Rapids. Dr. Beaumont had discussed management of critically ill newborns with these osteopathic pediatricians. Further, during Dr. Beaumont’s residency at the University of Chicago he had treated patients who had been referred by osteopathic pediatricians. During treatment of these patients he had had phone conversations or discussions regarding the patients’ management with the referring doctors. Dr. Beaumont testified that he knew the osteopathic pediatric standard of care for critically ill newborns as of the date of Jamie Lynn’s birth based upon his clinical experiences while at the University of Chicago, University of Michigan, and Butterworth Hospital. Dr. Beaumont noted that the standard had changed between 1980 and 1984 but that the standard of care was always the same for both allopathic and osteopathic pediatricians.
The lower court found this testimony insufficient. It concluded that Dr. Beaumont could not base his knowledge of the applicable standard of care upon hearsay information from contact with other physicians. The court required Dr. Beaumont to recall specific instances of treatment of infants referred by osteopathic pediatricians during his residency at the University of Chicago. Dr. Beaumont, however, was unable, in certain instances, to remember treating more than three infants referred from osteopathic pediatricians with certain medical problems. At the conclusion of this testimony, the court refused to allow Dr. Beaumont to testify as to the standard of care with respect to the management of blood gases, prescription of Dopamine, breathing problems, flacidity in the lower extremities of infants, or lumbar punctures where an infant had suffered a transected spinal cord: all relevant in this case. The court, however, did allow Dr. Beaumont to testify as to the standard of care with respect to x-rays and lumbar punctures used to uncover problems with sepsis and subarachnoic bleeding problems.
Charles Vincent, M.D., testified that he had been board certified in obstetrics and gynecology since 1965. From 1977 he had been a tenured associate professor of obstetrics and gynecology at Wayne State University. He had also been appointed by Governor Milliken to the Medical Licensure Board. As a member of this board he was responsible for determining what examinations should be required before a doctor could practice medicine and disciplining physicians who were not practicing properly or who were not following rules and regulations. He currently had staff privileges at Detroit Receiving, Hutzel, Harper-Grace, and Southwest General Hospitals. He had had staff privileges at Kirwood Hospital and St. Joseph Mercy. Osteopathic obstetric gynecologists also had priviledges at Harper-Grace, Kirwood, Southwest General and St. Joseph Mercy.
Dr. Vincent had been the department chair at Kirwood and was currently the department chair at Detroit Receiving. As the department chair it was his responsibility to see that the department functioned in compliance with rules and regulations as provided by the board of trustees of the institution. Dr. Vincent had been present at staff meetings where cases were discussed and had engaged in dialogue with obstetric gynecologic osteopathic doctors regarding obstetrical care and management. Prior to Jamie Lynn’s birth date, Dr. Vincent had worked with obstetric gynecologic osteopathic physicians. Also, there were osteopathic physicians in residency programs where Dr. Vincent was on staff.
Dr. Vincent stated that he was familiar with the osteopathic obstetric standard of care for vaginal delivery of breech presentations as of Jamie Lynn’s birth date and that there was only one standard of care for all physicians. Dr. Vincent also noted that obstetricians and gynecologists who were osteopathic physicians and had written articles referred to the same text books that were used in allopathic institutions. Dr. Vincent admitted that he had discussed the standard of practice in general but had not specifically discussed breech presentation deliveries. The court, however, found this testimony insufficient to establish Dr. Vincent’s knowledge of the osteopathic standard of care for breech vaginal deliveries.
Plaintiffs attorney did not present the testimony of Lee B. Stevenson, M.D., at trial as Stevenson would not have been able to meet the court’s "narrow requirement of having discussions that he can specifically recall that he had had prior to September 8, 1980, with an osteopathic obstetrician-gynecologist, physician, regarding the obstetrical management of breech birth.” Plaintiffs attorney noted that Stevenson would testify that for a number of years prior to Jamie Lynn’s birth, he had served on the Michigan State Medical Society’s Maternal Mortality Committee with an obstetric gynecologic osteopathic physician who had been trained in the osteopathic manner and had been an intern and resident in an osteopathic hospital. From discussions with this osteopathic physician, Dr. Stevenson could testify that the osteopathic obstetrical gynecological standard for the care and management of breech births was the same as the allopathic obstetrical gynecological standard of care for breech births as of Jamie Lynn’s birth date.
In applying the stated standard to the detailed facts above, we are forced to say that the trial court erred in determining that plaintiff’s witnesses were not qualified to testify as to the osteopathic standard of care. An expert may base his knowledge of the applicable standard of care upon hearsay information from contact with other physicians.
The second issue deals with the "Good Samaritan’’ act, MCL 691.1502; MSA 14.563(12). Plaintiff argues that the trial court erred in determining that defendant Poston was within the protection of this act.
MCL 691.1502; MSA 14.563(12) provides:
(1) In instances where the actual hospital duty of that person did not require a response to that emergency situation, a physician . . . who in good faith responds to a life threatening emergency within a hospital or other licensed medical care facility, shall not be liable for any civil damages as a result of an act or omission in the rendering of emergency care, except an act or omission amounting to gross negligence or wilful and wanton misconduct.
(2) The exemption from liability under subsection (1) shall not apply to a physician where a physician-patient relationship existed prior to the advent of the emergency nor to a licensed nurse where a nurse-patient relationship existed prior to the advent of the emergency.
Under the facts of this case, we can not conclude that the trial court erred in its application of partial immunity pursuant to MCL 691.1502; MSA 14.563(12). There was no prior doctor-patient rela tionship between either plaintiff or Jamie Lynn and Dr. Poston. Dr. Poston was telephoned at home and informed that there had been a problem with the delivery: specifically, the baby was not breathing and would die if she did not receive immediate attention. Based on these facts it can be said that a "life threatening emergency” did exist.
A subissue plaintiff raises is that Dr. Poston was guilty of gross neglect or wilful and wanton misconduct and therefore not within the protection of the statute. To constitute wilful and wanton conduct, there must be evidence of:
"(1) Knowledge of a situation requiring the exercise of ordinary care and diligence to avert injury to another; (2) ability to avoid the resulting harm by ordinary care and diligence in the use of the means at hand; (3) the omission to use such care and diligence to avert the threatened danger, when to the ordinary mind it must be apparent that the result is likely to prove disastrous to another.” [Gibbard v Cursan, 225 Mich 311, 322; 196 NW 187 (1923).]
Wilful and wanton misconduct is made out only if the conduct alleged shows an intent to harm or such indifference to whether harm will result as to be the equivalent of a willingness that it does. Burnett v City of Adrian, 414 Mich 448, 456; 326 NW2d 810 (1982).
In the instant case, there was absolutely no indication that Dr. Poston’s acts or omissions in his treatment of Jamie Lynn Higgins were grossly negligent. The most plaintiff’s proofs suggest was that Dr. Poston was guilty of ordinary negligence in misreading Jamie Lynn Higgins’ x-rays and in performing a lumbar puncture. The trial court did not err in granting defendant Dr. Poston’s motion for directed verdict on the basis of the Good Samaritan statute.
Reversed and remanded as to the first issue. | [
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Per Curiam.
Defendant appeals as of right from the May 15, 1987, order of the Wayne Circuit Court entering judgment in accordance with an earlier consent agreement of the parties and imposing sanctions against both defendant and his attorney. We affirm.
Plaintiff Michigan Bell Telephone Company commenced this action in March of 1984 to recover sales commissions and cash advances which were allegedly fraudulently obtained by defendant, a former employee of Michigan Bell. On two occasions before commencing this suit, Michigan Bell had discharged defendant because of "unauthorized advertising” activity. Each time defendant filed for unemployment benefits. Although Michigan Bell protested his entitlement to benefits, the issue was ultimately decided against the employer by the Michigan Employment Security Commission. Defendant never sought judicial review of the agency decisions.
On March 17, 1987, Michigan Bell filed a motion to exclude certain evidence and a motion for summary disposition on the breach of contract claim for the cash advances paid to defendant. On the same date, defendant moved to strike the fraud claim, asserting that the mesc proceedings operated to bar the claim under the doctrines of res judicata or collateral estoppel. The trial court granted Michigan Bell’s motion for partial summary disposition and granted its motion to exclude evidence in part. The court initially took defendant’s motion under advisement and, on a later date, denied the same, holding that the mesc decisions do not have "the same quality or standard as many judgments.”
Trial in the matter was scheduled to commence on March 19, 1987. Prior to the start of the proceedings, defense counsel informed the court that defendant had been in the courtroom that morning but had left because he was ill and "did not feel that he could appear at the trial today.” Apparently, defendant was suffering a series of intestinal problems around this time. Defense counsel requested that the court adjourn the trial to an unspecified date. The court responded that it was without authority to adjourn the matter outright but would grant a continuance until the following Monday, i.e., March 23, 1987. Before concluding the day’s proceeding, defense counsel was allowed to place on the record his belief that there was a breakdown in the attorney-client relationship due to defendant’s refusal to pay attorney fees and to accept counsel’s recommendations regarding settlement.
Immediately thereafter, the attorneys for both parties appeared before Chief Judge Richard C. Kaufman of the Wayne Circuit Court to voice their respective positions on defendant’s request for adjournment. Defense counsel also requested that he be allowed to withdraw from the case. The chief judge denied the adjournment and withdrawal requests, and ordered the matter to continue on March 23. It was also ordered that defendant appear on that date with documentation from a physician indicating the nature and extent of his purported illness.
Defendant did not appear as ordered on March 23. However, because the trial judge was ill, the case was postponed until the next day. On March 24, defendant did not appear himself but his wife did. She brought a letter from a physician, dated March 23, 1987, stating that defendant had an ileostomy which was creating problems and that, while it could be controlled with medication over a period of time, defendant’s activity in the interim had to be restricted. The case was postponed until April 6, 1987. Defense counsel renewed, but the court denied, his request to withdraw.
On April 6, defendant’s wife again appeared in his stead. She asserted that he was still ill. Counsel for Michigan Bell challenged that assertion. He stated he had reason to believe that defendant’s condition was not as his wife claimed but that defendant was, in fact, at his place of business on March 23, 1987. Defendant’s wife acknowledged that he had been going to work. After the trial judge stated that "as far as I’m concerned the trial should go or you [Michigan Bell] should get a judgment today,” defense counsel stated that he was prepared for trial. The case was recessed at 10:30 a.m. to allow the parties to take the adjournment matter up with the chief judge.
The chief judge again denied defendant’s request for adjournment and, faced with an immediate trial, the parties negotiated a settlement of the case. Court reconvened later that afternoon and the terms of the settlement were placed on the open record. Defendant was in attendance at this time. As part of the settlement, the proceeds of a redemption order, which were owed to defendant and which arose from an unrelated workers’ disability compensation claim, were to be deducted from the agreed upon settlement amount. The tried court approved the terms of the settlement and directed preparation of an order outlining those terms.
On April 7, 1987, Michigan Bell’s attorney forwarded to defense counsel a proposed settlement agreement and stipulation for entry of judgment. Also forwarded was a workers’ compensation check drawn by Michigan Bell payable to defen dant which was to be endorsed over to Michigan Bell by defendant. Subsequently, defense counsel notified Michigan Bell that defendant had changed his mind and had refused to sign both the settlement agreement and the check.
On May 1, 1987, Michigan Bell filed a motion for entry of judgment. Sometime thereafter, defendant retained new counsel to represent him. On May 14, 1987, that counsel filed objections to Michigan Bell’s motion, one of which was that the fraud and breach of contract issues had been raised and adjudicated before the mesc on two prior occasions and, therefore, Michigan Bell should be barred from bringing the instant action under the doctrine of collateral estoppel.
At a hearing on May 15, 1987, the trial court ordered entry of judgment and, pursuant to Michigan Bell’s request, imposed sanctions on both defendant and his attorney in the amount of $1,500 each.
Defendant then filed motions for a stay of execution and an appeal bond. The trial court denied those motions at a hearing held on July 17, 1987. This appeal as of right followed.
As his first issue on appeal, defendant claims the trial court erred in holding that an mesc decision does not have the same quality or standing as many judgments and, therefore, cannot be used as collateral estoppel in the circuit court. Since the time defendant filed this claim of appeal, that issue, in a different context, was decided adversely to his position in Storey v Meijer, Inc, 431 Mich 368; 429 NW2d 169 (1988). The trial court did not err in its holding.
Defendant next raises several arguments concerning the imposition of sanctions against him by the trial court. We find that none of the arguments warrant reversal.
The court rule authorizing the imposition of sanctions, MCR 2.114, provides in pertinent part:
(D) Effect of Signature. The signature of an attorney or party, whether or not the party is represented by an attorney, constitutes a certification by the signer that
(1) he or she has read the pleading;
(2) to the best of his or her knowledge, information, and belief formed after reasonable inquiry, the pleading is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law; and
(3) the pleading is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation.
(E) Sanctions for Violation. If a pleading is signed in violation of this rule, the court, on the motion of a party or on its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, including reasonable attorney fees.
In the instant case, the trial court properly assessed costs against both defendant and his newly retained counsel because, had the attorney made reasonable inquiry, he would have learned that the collateral estoppel defense was previously raised and rejected. See Lloyd v Avadenka, 158 Mich App 623, 630-631; 405 NW2d 141 (1987), lv den 428 Mich 905 (1987). Although defense counsel allegedly made investigative efforts to determine whether the issue had already been adjudicated, we do not believe this excuses his conduct. Assuming the defense had not been raised previously, counsel should have been aware that it was waived because defendant failed to assert it in his first responsive pleading. MCR 2.116(D)(1). Counsel offered no explanation for the untimeliness of the defense.
Moreover, because defendant was present when the terms of the settlement agreement were read in open court and he voiced no objections thereto, we must conclude that it met his approval. He did not provide the trial court below, or this Court on appeal, with an adequate explanation for his subsequent refusal to sign the consent decree. Defendant’s objections to entry of judgment all involved matters which were, or should have been, within his knowledge or contemplation at the time he agreed to the settlement. Further, it does not matter that defendant’s objections were not filed for an improper purpose. Lloyd, supra, p 629.
Contrary to what defendant asserts, we do not believe MCR 2.114(E) limits the type of sanctions which may be imposed to actual costs and reasonable attorney fees only. Had our Supreme Court intended such a result it could have stated so expressly, as it did in promulgating other court rules that authorize only the imposition of "actual costs” (MCR 2.403[0][1]) or "reasonable expenses, including attorney fees” (MCR 2.313[A][5][b] and 2.313[B][2]). By using the term "sanction,” we can only assume the Supreme Court did not intend to limit it in the manner urged by defendant.
By definition, a sanction is "a penalty or punishment provided as a means of enforcing obedience to a law.” Black’s Law Dictionary (Rev 4th ed, 1968), p 1507. Utilizing dictionary definitions is an appropriate method of interpreting the language of a court rule to determine the Supreme Court’s intent in promulgating the rule. See In re Harris Estate, 151 Mich App 780, 784; 391 NW2d 487 (1986)(dictionary definitions are appropriate guides for ascertaining legislative intent), and Stepp v Dep’t of Natural Resources, 157 Mich App 774, 777; 404 NW2d 665 (1987), lv den 429 Mich 860 (1987) (principles of statutory construction apply in construing court rules). That the dictionary assigns the appropriate definition to sanctions under MCR 2.114(E) is established by several factors. First, MCR 2.116(F) expressly refers to the MCR 2.114(E) sanctions as "penalties.” Second, a leading authority has recognized that "MCR 2.114(D)[sic] puts no limit on the type of sanction that a court may impose.” 1 Martin, Dean & Webster, Michigan Court Rules Practice (3d ed), p 276. Third, and perhaps most significantly, federal courts—in interpreting FR Civ P 11, the federal court rule upon which MCR 2.114 is patterned—have unequivocally held that sanctions may be imposed for purely punitive purposes. Harris v Marsh, 679 F Supp 1204, 1390 (ED NC, 1987); Mercury Service, Inc v Allied Bank of Texas, 117 FRD 147, 156-157 (CD Cal, 1987) and authorities cited therein. For the above reasons, we conclude that MCR 2.114(E) authorizes the imposition of punitive fines and is not limited to actual costs and reasonable attorney fees. Contra, Hicks v Ottewell, 174 Mich App 750, 756; 436 NW2d 453 (1989). Assuming, without deciding, that the sanctions imposed in the instant case were purely punitive, we believe the amounts assessed by the trial court were appropriate considering the conduct which precipitated their imposition.
Defendant next claims that the order imposing sanctions should be held to have no effect because it was not dated by the court. Defendant’s failure to raise this claim below precludes appellate review absent manifest injustice. Smith v City of Pontiac, 169 Mich App 559, 562; 426 NW2d 704 (1988). Here, we cannot discern any manifest injustice resulting to defendant. He has not informed this Court of any substantial prejudice flowing from the undated order. Furthermore, defense counsel was present when the trial judge signed the praecipe for the order in open court. Defendant should not now be heard to complain that he was prevented from ascertaining when the period for posttrial actions began to run.
Defendant next asserts that the consent decree presented to the court for signature was not a valid judgment because he withdrew his consent before entry of the decree. We disagree.
An agreement or consent made in open court by the parties or their attorneys is binding on the parties. MCR 2.507(H). A party cannot, after agreeing in open court, refuse to sign a proposed judgment which accurately incorporates the agreement unless there was mistake, fraud, or unconscionable advantage which would justify setting aside the settlement agreement. Meyer v Rosenbaum, 71 Mich App 388; 248 NW2d 558 (1976). Defendant relies on City of Norton Shores v Carr, 59 Mich App 561; 229 NW2d 848 (1975), in furtherance of his position. That case appears to hold that a litigant is free to revoke a consent judgment between the time it is orally placed on the record and the time the judgment is actually entered by the court. To the extent that Norton Shores stands for that proposition, we join those cases which have since unanimously rejected its apparent holding. See, e.g., Siegel v Spinney, 141 Mich App 346, 349; 367 NW2d 860 (1985); Van Wagoner v Van Wagoner, 131 Mich App 204, 212-213; 346 NW2d 77 (1983); Michigan Nat'l Bank of Detroit v Pat mon, 119 Mich App 772, 777-778; 327 NW2d 355 (1982); Meyer, supra, pp 392-393. This is not a situation where an attorney enters into a consent agreement without the approval of the party. See Patmon, supra, pp 776-777.
Defendant lastly argues that the provision in the consent agreement directing him to sign over his workers’ compensation redemption check was in violation of MCL 418.821; MSA 17.237(821). We decline to review the merits of this claim. By agreeing to the terms of the consent judgment, defendant cannot challenge it on appeal. Longo v Minchella, 343 Mich 373, 377-378; 72 NW2d 113 (1955). Also, because defendant withdrew this argument below, appellate review should be precluded.
As a final matter on appeal, Michigan Bell requests this Court to assess costs against defendant on appeal. As the prevailing party in this cause, Michigan Bell is entitled to costs. MCR 7.219.
Affirmed.
Judge Maher acknowledges that he was a member of the majority in Hicks, supra. However, upon further reflection, he repudiates Hicks insofar as it holds that "punitive” sanctions may not be awarded under MCR 2.114(E). | [
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M. J. Kelly, P.J.
State Farm Mutual Automobile Insurance Company filed this action for a declaratory judgment on the question of liability for medical expenses incurred by Gregory Schultz. The trial court granted summary disposition in favor of defendants by order of August 14, 1985. Plaintiff appeals that order as of right and we affirm.
Gregory Schultz sustained injuries as a result of an automobile accident that occurred on October 22, 1983. At that time, Schultz was insured by an automobile no-fault insurance policy issued to him by State Farm. He was also a participant in a medical benefit plan provided through his employment with defendant C. A. Muer Corporation. The plan, entitled C. A. Muer Corporation Employees’ Medical Benefits Plan (Class 7), is administered by C. A. Muer Corporation. The plan supervisor is Northern Group Services, Inc. The parties do not dispute that the Muer plan is uninsured and funded by defendant corporation.
Under the terms of the Muer Plan, Gregory Schultz is entitled to certain health and medical benefits, subject to a coordination of benefits clause which provides as follows:
If an Enrolled Person is entitled to receive benefits under this Plan and is entitled simultaneously to receive benefits under any other Health Plan which provides similar benefits, payment of benefits as between Health Plans shall be resolved in the following manner.
(1) If any other Health Plan does not contain a Coordination of Benefits provision, the benefits of such plan shall be determined prior to determination of the benefits of this Plan.
(2) If any other Health Plan does contain a Coordination of Benefits provision, the benefits of such plan shall be coordinated with the benefits of this Plan. Priority shall be given, in the order listed, to the plan under which the individual is entitled to receive benefits:
(a) other than as a dependent;
(b) as a dependent of a male individual;
(c) as a dependent of a female individual.
If priority cannot be established by the above, priority shall be given to the plan under which the individual has been covered for the longer period of time.
"Health Plan” is specifically defined in the Muer Plan to include no-fault insurance policies required under state law.
Schultz’s no-fault policy also includes a coordination of benefits clause, which provides:
Benefits shown as coordinated will be reduced by any amount paid or payable to you or any relative under any:
1. vehicle or premises insurance;
2. individual, blanket or group accident or disability insurance; and
3. medical or surgical reimbursement plan.
State Farm paid some of the expenses resulting from Schultz’s accident and, upon discovering the existence of Schultz’s employee benefit plan, filed this action for declaratory judgment seeking a determination of its liability for expenses already paid as well as for unpaid expenses incurred and future expenses.
Defendants denied liability, relying on the Muer Plan’s coordination of benefits clause, and moved for summary disposition on four grounds: (1) plaintiff’s coverage of Schultz pre-dated defendants’ coverage making plaintiff liable for all of Schultz’s benefits as a matter of law; (2) plaintiff’s claims were preempted by the Employee Retirement Income Security Act, 29 USC 1001 et seq.; (3) plaintiff had failed to comply with the Muer Plan’s claim procedures and had thus failed to exhaust its administrative remedies prior to commencing suit; and (4) C. A. Muer Corporation was not a proper party defendant. Plaintiff responded with a countermotion for summary disposition and, following a hearing on both motions, the trial court entered an order in favor of the defendants. The court concluded that the terms of the Muer Plan controlled and, since the no-fault policy had been issued to Schultz at least ten months prior to Schultz’s enrollment in Muer’s benefit plan, plaintiff was liable for primary coverage of Schultz’s medical expenses.
On appeal, State Farm relies upon § 3109 of Michigan’s no-fault act in asserting that the benefits provided by the Muer Plan and the no-fault policy must be coordinated in accordance with Michigan law. Section 3109a requires no-fault insurers to provide insureds with the option of purchasing a coordination of benefits clause in their policy for a lower premium rate:
An insurer providing personal protection insurance benefits shall offer, at appropriately reduced premium rates, deductibles and exclusions reasonably related to other health and accident coverage on the insured. The deductibles and exclusions required to be offered by this section shall be subject to prior approval by the commissioner and shall apply only to benefits payable to the person named in the policy, the spouse of the insured and any relative of either domiciled in the same household. [MCL 500.3109a; MSA 24.13109(1).]
In Federal Kemper Ins Co, Inc v Health Ins Administration, Inc, 424 Mich 537; 383 NW2d 590 (1986), the Michigan Supreme Court interpreted § 3109a as imposing primary liability upon the health insurer where an insured is also covered by a no-fault policy containing a coordination of benefits clause. Application of Federal Kemper in this case would thus require the Muer Plan to pay Schultz’s medical expenses up to the limits of its liability.
Defendants respond that Michigan law does not apply because it is preempted by erisa. Although the trial court declined to address this argumment when defendants asserted it below, we will consider it on appeal because we are persuaded that resolution of this purely legal issue is necessary to the proper disposition of this case. DeWitt Twp v Clinton County, 113 Mich App 709; 319 NW2d 2 (1982). Moreover, erisa is a comprehensive federal statute regulating all employee pension and welfare plans provided by employers engaged in an industry or activity affecting commerce. 29 USC 1003(a). Since the Muer Plan is an employee benefit plan and since C. A. Muer Corporation is engaged in an industry or activity affecting commerce, we are bound to consider erisa and relevant federal case law in resolving the dispute before us.
The erisa provision governing the instant controversy is § 514, 29 USC 1144. Section 514(a) expressly provides that erisa preempts "any and all State laws insofar as they may now or hereafter relate to any employee benefit plan” provided by an employer engaged in an industry or activity affecting commerce. The United States Supreme Court has broadly interpreted the term "relate to” so that a state law is preempted if it "has a connection with or reference to such a plan.” Shaw v Delta Air Lines, Inc, 463 US 85, 97; 103 S Ct 2890; 77 L Ed 2d 490 (1983). Thus, our application of § 3109a in this case is preempted unless otherwise saved by § 514 of erisa.
Plaintiff argues that § 3109a is not preempted under the saving clause of § 514(b)(2)(A), which provides:
Except as provided in subparagraph (B), nothing in this subchapter shall be construed to exempt or relieve any person from any law of any State which regulates insurance, banking, or securities. [29 USC 1144(b)(2)(A).]
Plaintiff reasons that since § 3109a is a Michigan law regulating insurance, it is expressly saved from federal preemption and thus applies in the instant case.
The saving clause of § 514(b)(2)(A) is, however, limited in its scope by what is commonly referred to as the "deemer clause” in § 514(b)(2)(B), which provides:
Neither an employee benefit plan described in section 1003(a) of this title, which is not exempt under section 1003(b) of this title (other than a plan established primarily for the purpose of providing death benefits), nor any trust established under such a plan, shall be deemed to be an insurance company or other insurer, bank trust company, or investment company or to be engaged in the business of insurance or banking for purposes of any law of any State purporting to regulate insurance companies, insurance contracts, banks, trust companies, or investment companies. [29 USC 1144(b)(2)(B).]
This deemer clause has recently been scrutinized by the federal courts. We are persuaded on the basis of the resulting case law that the erisa saving clause does not save § 3109a from preemption for purposes of this case because the Muer Plan is not insured by a commercial insurance company and is thus not subject to the insurance laws of Michigan.
In Metropolitan Life Ins Co v Massachusetts, 471 US —; 105 S Ct 2380; 85 L Ed 2d 728 (1985), the United States Supreme Court considered for the first time the interplay between the insurance saving and deemer clauses of § 514(b), in deciding whether a Massachusetts insurance statute applied to an erisa plan issued to Massachusetts residents and commercially insured through Metropolitan Life. The Massachusetts law required health insurers to provide certain minimum coverage for mental health expenses. The erisa plan insured through Metropolitan Life did not meet this state law requirement.
The Supreme Court ruled that, because the erisa plan was commercially insured, the insurance company insuring the plan was subject to Massachusetts insurance laws, which were saved under § 514(b)(2)(A). The insurer was thus required to provide the requisite coverage. In reaching this conclusion, the Supreme Court distinguished between commercially insured and uninsured employee benefit plans and recognized that its decision would result in different treatment of these plans under state law. By way of dicta, the Supreme Court indicated that an uninsured employee benefit plan will not be subject to state insurance regulation because the plan is not an insurance company and may not be "deemed” an insurance company under § 514(b)(2)(B).
The federal district court of Michigan has been presented with at least two opportunities to consider the same issue now before this Court. In Auto Club Ins Ass’n v Pipeline Industry Benefit Fund, Docket No. 85-70415 (ED Mich, decided December 13, 1985) (unreported), the no-fault insurance carrier had issued a policy with a coordination of benefits clause to an insured who was also a participant in an employee benefit fund. The no-fault insurer relied upon § 3109a and Michigan case law in asserting that its liability was secondary to the health coverage provided the insured under the employee benefit plan. Judge Julian Abele Cook, Jr., disagreed and held that § 3109a was preempted by erisa because the "other health coverage” was provided by an uninsured erisa plan and was thus not subject to Michigan insurance regulation. The same conclusion was drawn by Judge Anna Diggs Taylor in Northern Group Services, Inc v State Farm Mutual Automobile Ins Co, Docket No. 85-75383 (ED Mich, decided June 2, 1986), (unreported), which also involved an uninsured employee benefit plan.
On the basis of the foregoing analysis, we conclude that § 3109a does not govern the parties’ liability for coverage in this case. Whether defendants are liable for Gregory Schultz’s medical expenses is a matter of federal law. Since the coordination of benefits clause contained in the Muer Plan expressly provides that primary coverage shall be provided under the plan in effect for the longer period of time, the trial court did not err in the result reached in this case. Given our disposition of the preemption issue, we need not consider plaintiff’s remaining arguments on appeal.
Affirmed._
See also Children’s Hospital v Whitcomb, 778 F2d 239 (CA 5, 1985), and Blue Cross & Blue Shield of Florida, Inc v Matthews, 473 So 2d 831 (Fla app, 1985).
Although plaintiff and defendant Northern Group Services, Inc., in this case were also involved in the federal court action, the dispute in that case involved a different employee benefit plan. | [
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Gribbs, P.J.
Respondent-appellant Storer Communications, Inc., appeals as of right from the Wayne Circuit Court’s January 27, 1986, order denying Storer’s motion to quash grand jury subpoenas and its March 18, 1986, order holding Storer’s employee, television news reporter Bradley M. Stone, in contempt of court for failure to surrender confidential videotapes to a Wayne County citizens grand jury. We affirm.
Late in its term, the 1984-1985 Wayne County citizens grand jury began to investigate the shooting death of an off-duty Michigan state trooper. On August 29, 1985, Trooper Paul Hutchins and a female companion were accosted in Hart Plaza in downtown Detroit by two young males who announced a holdup. Trooper Hutchins’ wallet was taken and he was shot and killed by one of the pair as he reached for his own weapon. The assailants escaped on foot.
On September 27, 1985, grand jury subpoenas were served on William Flynn, vice president and general manager of Channel 2, Storer’s station, and on William Vance, Channel 2’s news director, directing them to appear before the grand jury on October 3. The subpoenas demanded production of all written, filmed or recorded materials and notes relating to a Channel 2 news series on Detroit area teen gangs, including all censored and edited portions and silhouette filmings related to or disclosing the identities of all persons who appeared in the news story and film. A motion to quash was filed. On October 21, the trial court heard arguments on that motion and, on November 25 and 26, the testimony of Michigan State Police Detective Sergeant Eric Humphrey and of Channel 2 reporter Bradley M. Stone was taken in a closed session. On January 27, 1986, in a lengthy, well-reasoned opinion, the trial court denied the motion to quash. On March 18, 1986, the trial court held Stone in contempt for failure to surrender the tapes to the grand jury in accordance with Grand Jury Subpoena No. 86-23.
On March 25, 1986, a panel of this Court granted a stay to Storer. On April 24, 1986, this Court set aside the stay. On May 15, 1986, the Supreme Court, in lieu of granting leave to appeal, remanded the case to this Court with directions to reinstate the order staying enforcement of the contempt order until the date of release of our opinion and to expedite hearing of and decision in this case. On May 21, 1986, this Court issued an order staying enforcement of the contempt order until further order of this Court or until release of our opinion.
On appeal, we are faced with two issues. First, we must determine the reach of Michigan’s "shield law,” MCL 767.5a; MSA 28.945(1). Second, we must decide if a television news reporter has a common-law or constitutional privilege to withhold information sought by a grand jury._
Michigan’s shield law, MCL 767.5a; MSA 28.945(1), is contained in the chapter of the Code of Criminal Procedure dealing with grand juries. It provides:
In any inquiry authorized by this act communications between reporters of newspapers or other publications and their informants are hereby declared to be privileged and conñdential. Any communications between attorneys and their clients, between clergymen and the members of their respective churches, and between physicians and their patients are hereby declared to be privileged and confidential when such communications were necessary to enable such attorneys, clergymen, or physicians to serve as such attorney, clergyman, or physician. [Emphasis added.]
The question presented in this appeal, which is one of first impression, is whether or not television news reporters come within the purview of that statute. We hold that they do not.
First, we note that the statute itself makes no mention of television or radio réporters. Rather, it refers to "reporters of newspapers or other publications.” Appellant urges us to construe the statute broadly to read "publication” as including a television news show.
Courts may not speculate as to the probable intent of the Legislature beyond the words employed in a statute. Ordinary words are given their plain and ordinary meaning, Winiecki v Wolf, 147 Mich App 742, 744; 383 NW2d 119 (1985). When the language of a statute is clear and unambiguous, judicial construction is neither required nor permitted, Attard v Adamczyk, 141 Mich App 246, 250; 367 NW2d 75 (1985). Such a statute must be applied, and not interpreted, since it speaks for itself, City of Lansing v Lansing Twp, 356 Mich 641, 649; 97 NW2d 804 (1959); Winiecki, supra.
As the trial court noted, "publication” in its commonly understood sense means printed material for public dissemination. This conclusion is bolstered by the fact that the legislatures of other states have specifically referred to television and radio reporters. The State of Maryland amended its shield statute to include radio and television reporters in 1949, the year Michigan enacted its shield law. See Tofani v State, 297 Md 165, 169; 465 A2d 413 (1983). Michigan’s shield law was amended in 1951, 1951 PA 276, and the grand jury statutes were amended in 1965, 1965 PA 251, and in 1970, 1970 PA 9. The Legislature could have included a reference to television and radio news reporters on those occasions, but it chose not to do so.
As the trial court noted, reading the statute to include television news reporters would be an inappropriate exercise of the judicial function, and arguments concerning the fairness of the statute must be addressed to the Legislature. The shield law is plain on its face and needs no construction. We conclude that the shield law applies only to the print media. See Humphrey, Shield Statutes: A Changing Problem in Light of Branzburg, 25 Wayne L Rev 1381, 1388 (1979) (Michigan’s shield law "afford[s] a unique privilege to the printed press in that state” [emphasis added]).
Storer contends, however, that, if we give the statute its plain meaning, it violates the rights of broadcast journalists to equal protection of the law, US Const, Am XIV; Mich Const 1963, art 1, § 2. It urges us to construe the statute to avoid the asserted constitutional infirmity.
In Fox v Employment Security Comm, 379 Mich 579; 153 NW2d 644 (1967), the Supreme Court noted:
There is no doubt that State legislatures have a broad range of discretion in establishing classifications in the exercise of their powers of regulation. However, the constitutional guarantees of equal protection are interposed against discriminations that are entirely arbitrary. In determining what is within legislative discretion and what is arbitrary, regard must be had for the particular subject of the State legislation. There must be a relation between the classification and the purposes of the act in which it is found. [379 Mich 588. Citations omitted.]
When it creates a statutory distinction, the Legislature is not required to deal with every aspect of a particular problem at the same time, nor are the classifications which it creates required to be the perfect alternative with respect to solving the problem the Legislature is addressing, Babbitt v Employers Ins of Wausau, 136 Mich App 198, 200-201; 355 NW2d 635 (1984), lv den 419 Mich 962 (1984). A state may properly direct its legislation against what it deems an existing evil without covering the whole field of possible abuses. The statute should not be overthrown merely because other instances may be suggested to which it might also have been applied, People’s Appliance Inc v City of Flint, 358 Mich 34, 45; 99 NW2d 522 (1959). Equal protection does not require that the Legislature choose between attacking every aspect of a problem or not attacking the problem at all. Sutton v Cadillac Area Schools, 117 Mich App 38, 43; 323 NW2d 582 (1982).
Absent a fundamental right or a suspect classification, a legislative classification does not violate equal protection guarantees if it has a rational basis, Sutton, supra. Where a fundamental right or suspect classification is involved, the "strict scrutiny-compelling state interest” test is used to de termine the validity of legislation. See Sutton, supra, p 42. In applying these tests, the challenged legislative judgment is accorded a presumption of constitutionality, Babbitt, supra, p 200. Fundamental interests include the right to vote and travel, due process in criminal matters, and specific guarantees in the bill of rights, Anderson v Detroit, 54 Mich App 496, 499, n 1; 221 NW2d 168 (1974), lv den 400 Mich 826 (1977).
Essentially, appellant’s argument is that strict scrutiny applies to this statute because it deals with the fundamental right of freedom of the press. We disagree. In Branzburg v Hayes, 408 US 665; 92 S Ct 2646; 33 L Ed 2d 626 (1972), the United States Supreme Court held that requiring a newsman to appear before a state or federal grand jury does not abridge the freedom of speech and the press guaranteed by the First Amendment, and that the Constitution of the United States does not exempt a newsman from appearing before a grand jury and answering questions relevant to a criminal investigation. Thus, our interpretation of the shield law does not interfere with a fundamental right.
Consequently, the rational basis test is the correct framework for analysis of the shield law. The statute needs only a rational basis to be valid, and the burden of showing that the statute does not rest on a rational basis is on the litigant attacking the enactment, Anderson, supra, p 499. The statute must be upheld unless "it is so lacking in an adequate or reasonable basis as to preclude an assumption that legislative discretion was exercised,” Struble v DAIIE, 86 Mich App 245, 253; 272 NW2d 617 (1978), lv den 406 Mich 885 (1979). The test of reasonableness is satisfied where any set of facts may reasonably be conceived to justify the legislative discrimination, Morgan v Win Schu ler’s Restaurant, 64 Mich App 37, 42; 234 NW2d 885 (1975).
We believe that the Legislature could have rationally accorded a privilege to the print media and not to the broadcast media. Where there is any justification for the classification, we refrain from questioning the Legislature’s wisdom in creating the classification scheme. The United States Supreme Court has concluded that the broadcast media and other media can be treated differently. See Red Lion Broadcasting Co v Federal Communications Comm, 395 US 367, 387; 89 S Ct 1794; 23 L Ed 2d 371 (1969). In our view, appellant has not met its burden of showing that the shield law did not rest on a rational basis, People’s Appliance, supra.
Second, appellant argues that the lower court erred when it ruled that, under Branzburg, supra, the First Amendment does not protect Channel 2’s reporter from compelled disclosure of his confidential work product in the circumstances of this case. We disagree.
In Branzburg, the United States Supreme Court held that requiring a newsman to appear and testify before a state or federal grand jury did not abridge the freedom of speech and press guaranteed by the First Amendment, Branzburg, supra, p 667. The Court declined to grant to newsmen a testimonial privilege not enjoyed by other citizens, and concluded that the grand jury plays an important, constitutionally mandated role in the process of fair and effective law enforcement, Branzburg, supra, p 690. The Court stated that, "[o]n the records now before us, we perceive no basis for holding that the public interest in law enforcement and in ensuring effective grand jury proceedings is insufficient to override the consequential, but uncertain, burden on news gathering that is said to result from insisting that reporters, like other citizens, respond to relevant questions put to them in the course of a valid grand jury investigation or criminal trial,” Branzburg, supra, pp 690-691. The Court noted that, "we cannot seriously entertain the notion that the First Amendment protects a newsman’s agreement to conceal the criminal conduct of his source, or evidence thereof, on the theory that it is better to write about crime than to do something about it,” Branzburg, supra, p 692.
The entire text of Justice Powell’s concurring opinion reads as follows:
I add this brief statement to emphasize what seems to me to be the limited nature of the Court’s holding. The Court does not hold that newsmen, subpoenaed to testify before a grand jury, are without constitutional rights with respect to the gathering of news or in safeguarding their sources. Certainly, we do not hold, as suggested in Mr. Justice Stewart’s dissenting opinion, that state and federal authorities are free to "annex” the news media as "an investigative arm of government.” The solicitude repeatedly shown by this Court for First Amendment freedoms should be sufficient assurance against any such effort, even if one seriously believed that the media — properly free and untrammeled in the fullest sense of these terms — were not able to protect themselves.
As indicated in the concluding portion of the opinion, the Court states that no harassment of newsmen will be tolerated. If a newsman believes that the grand jury investigation is not being conducted in good faith he is not without remedy. Indeed, if the newsman is called upon to give information bearing only a remote and tenuous relationship to the subject of the investigation, or if he has some other reason to believe that his testimony implicates conñdential source relationships without a legitimate need of law enforce ment, he will have access to the court on a motion to quash and an appropriate protective order may be entered. The asserted claim to privilege should be judged on the facts by the striking of a proper balance between freedom of the press and the obligation of all citizens to give relevant testimony with respect to criminal conduct. The balance of these vital constitutional and societal interests on a case-by-case basis accords with the tried and traditional way of adjudicating such questions.
In short, the courts will be available to newsmen under circumstances where legitimate First Amendment interests require protection. [Emphasis added. 408 US 709-710.]
We think that, standing alone, Branzburg is very clear. That case squarely rejected the notion that the First Amendment gives a reporter a privilege to refuse to reveal relevant information to a grand jury, unless the grand jury is not being conducted in good faith, the information bears "only a remote and tenuous relationship to the investigation,” or there is no "legitimate need of law enforcement” for the information.
After Branzburg was decided, however, courts struggled with the opinion. As noted by one commentator:
The various opinions in Branzburg are less than clear. Four Justices concluded that reporters could be compelled to disclose their sources; four Justices said they could not be so compelled; and Justice Powell took a middle position by allowing compelled disclosure in some circumstance^. but not in others. This left the lower courts to decide on a case-by-case basis whether a privilege exists in various situations extending beyond the facts of Branzburg. [Emphasis added. Newman, qualifíed privilege for journalists — Branzburg v Hayes: A decade later, 61 U Det JUL 463, 476 (1984).]
We believe that the approach of the majority in Branzburg, read along with Justice Powell’s limitations as stated in his concurrence, correctly states the law as to a newsgatherer’s privilege in the context of grand jury proceedings. As noted above, courts have had trouble with the opinion in situations extending beyond the facts of Branzburg. See Developments in the law—Privileged communications; 98 Harv L R 1450, 1604 (1985); Newman, supra, p 486. The facts of this case are not, however, distinguishable from those considered in Branzburg.
In criminal proceedings and in civil suits, some federal courts, using a balancing approach, have been willing to accord a privilege to newsgatherers more liberal than that found in Branzburg. See United States v Cuthbertson, 630 F2d 139 (CA 3, 1980); United States v Cuthbertson, 651 F2d 189 (CA 3, 1981); Riley v City of Chester, 612 F2d 708 (CA 3, 1979); United States v Burke, 700 F2d 70 (CA 2, 1983); United States v Criden, 633 F2d 346 (CA 3, 1980). See also King v Photo Marketing Ass’n International, 120 Mich App 527, 530-531; 327 NW2d 515 (1982). But see In re Farber, 78 NJ 259, 267-269; 394 A2d 330 (1978), cert den 439 US 997; 99 S Ct 598; 58 L Ed 2d 670 (1978).
However, in cases involving grand jury proceedings, courts have recognized that Branzburg is the controlling precedent. We need not balance the competing interests, because the Supreme Court has already done so. See In re Grand Jury Matter, Gronowicz, 764 F2d 983, 986 (CA 3, 1985), where the court required the government to show that the information sought was relevant to the investigation, properly within the jurisdiction of the grand jury, and not sought primarily for another purpose. See also Tofani, supra; 99 ALR3d 37, §§ 5-6, pp 53-60.
Thus, we hold that a reporter must divulge confidential information to a grand jury unless the grand jury is not being conducted in good faith, the relationship between the material sought and the object of the grand jury’s investigation is remote and tenuous, or the investigation does not implicate a legitimate need of law enforcement.
In this case, the trial court found:
First, it has not been suggested that the subpoena under consideration was issued other than. in good faith. Second, the relationship between the material sought and the object of the grand jury’s investigation is not remote and tenuous. By its quest for Channel 2’s tapes the grand jury seeks to establish the very identity of persons guilty of Trooper Hutchins’ homicide, and the information at hand, whether or not it eventually proves to be accurate, affords a reasonable basis to believe that the films can assist in that endeavor. And, finally, it cannot be claimed that establishing those identities is not a legitimate need of law enforcement.
We agree. The trial court did not err when it refused to quash the grand jury subpoena and held Stone in contempt.
Affirmed.
The order setting aside the stay was by a 2-1 vote. Judge Beasley’s dissent was then followed by the Supreme Court in granting a stay. | [
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Per Curiam.
After adoption by the Detroit City Council of the city budget for the fiscal year ending June 30, 1984, the Honorable Coleman Young, Mayor of the City of Detroit, faced with an excess of anticipated expenditures over anticipated revenues, and in order to avoid a budget deficit, implemented in late August of 1983 an austerity program which forced the layoff of personnel from various city departments, including 224 police officers. The individual plaintiffs herein are two of those officers. The Detroit Police Officers Association was permitted to intervene as a plaintiff.
The complaints allege that defendant, Mayor Young, implemented an amended budget without submitting such amended budget to the city council as required by law. Defendants characterize the mayor’s action as a "savings plan”, not a budget amendment.
Plaintiffs moved below for an order requiring the reinstatement of the laid-off officers, charging a violation of the Uniform Budgeting and Accounting Act, MCL 141.421 et seq.; MSA 5.3228(21) et seq. Defendants moved for accelerated judgment pursuant to GCR 1963, 116.1, subds (2), (3), (4), and (5), and for summary judgment pursuant to GCR 1963, 117.2, subds (1) and (3). The trial court denied defendants’ motions and, treating plaintiffs’ motion as one for summary judgment, granted it, on the ground that defendants had violated § 17 of the Uniform Budgeting and Accounting Act, MCL 141.437; MSA 5.3228(37). Defendants’ motion for a stay of the trial court’s order was denied by this Court and granted by the Michigan Supreme Court on November 4, 1983.
Although the individual plaintiffs claim a different basis for relief than does the intervening plaintiff, both claims come to this Court within the context of the Uniform Budgeting and Accounting Act.
Although defendants’ appeal raises a variety of issues, we address only one, as we believe it is dispositive of this suit.
Do plaintiffs have standing, either as city employees or as city taxpayers, to bring this suit?
We think not. The pertinent provisions of the Uniform Budgeting and Accounting Act state:
"Sec. 17. Except as otherwise provided in section 19, a deviation from the original general appropriations act shall not be made without amending the general appropriations act. The legislative body of the local unit shall amend the general appropriations act as soon as it becomes apparent that a deviation from the original general appropriations act is necessary and the amount of the deviation can be determined. An amendment shall indicate each intended alteration in the purpose of each appropriation item affected by the amendment. The legislative body may require that the chief administrative officer or fiscal officer provide it with periodic reports on the financial condition of the local unit. If, during a fiscal year, it appears to the chief administrative officer, or the fiscal officer in local units which have not elected or designated a chief administrative officer, or to the legislative body that the actual and probable revenues from taxes and other sources in a fund are less than the estimated revenues, including an available surplus upon which appropriations from the fund were based and the proceeds from bonds or other obligations issued under the fiscal stabilization act or the balance of the principal of these bonds or other obligations, the chief administrative officer or fiscal officer shall present to the legislative body recommendations which, if adopted, would prevent expenditures from exceeding available revenues for that current fiscal year. The recommendations shall include proposals for reducing appropriations from the fund for budgetary centers in a manner that would cause the total of appropriations to not be greater than the total of revised estimated revenues of the fund, or proposals for measures necessary to provide revenues sufficient to meet expenditures of the fund, or both. The recommendations shall recognize the requirements of state law and the provisions of collective bargaining agreements.” MCL 141.437; MSA 5.3228(37).
"Sec. 20. A violation of sections 17 to 19 by the chief administrative officer, the fiscal officer, an administrative officer, employee, or member of the legislative body of the local unit disclosed in an audit of the financial records and accounts of the local unit in the absence of reasonable procedures in use by the local unit to detect such violations shall be filed with the state treasurer and reported by the state treasurer to the attorney general. For local and intermediate school districts, the report of a violation shall be filed with the state superintendent of public instruction instead of the state treasurer. The attorney general shall review the report and initiate appropriate action against the chief administrative officer, fiscal officer, administrative officer, employee, or member of the legislative body. For the use and benefit of the local unit, the attorney general or prosecuting attorney may institute a civil action in a court of competent jurisdiction for the recovery of funds of a local unit, disclosed by an examination to have been illegally expended or collected as a result of malfeasance and not accounted for as provided in sections 17 to 19, and for the recovery of public property disclosed to have been converted or misappropriated.” MCL 141.440; MSA 5.3228(40).
It is assumed, for purposes of this opinion, that the mayor’s "savings plan” is in reality an attempt by him to amend the Detroit city budget without council approval.
The substantive purposes of the Uniform Budgeting and Accounting Act, as expressed in its title, are "* * * to provide a. uniform budgeting system for local units; and to prohibit deficit spending by a local unit of government”.
The mere fact that a statute designates a public official or body as its enforcer does not deprive an individual of a private right of action seeking its enforcement. Pompey v General Motors Corp, 385 Mich 537, 557-559; 189 NW2d 243 (1971). The test as applied by both the federal and Michigan courts is whether the statute is designed to protect the public or the private sector. If the latter, then generally a private right of action exists. As early as 1916, the federal courts applied the test to find a private right under the Federal Safety Appliance Acts for an injured railroad employee. The purpose of the act, expressed in its title, was "to Promote the Safety of Employees and Travelers”.
"A disregard of the command of the statute is a wrongful act, and where it results in damage to one of the class for whose especial benefit the statute was enacted, the right to recover damages from the party in default is implied * * Texas & Paciñc R Co v Rigsby, 241 US 33, 39; 36 S Ct 482; 60 L Ed 874 (1916).
The federal courts have continued to apply the "especial benefit” test in Cort v Ash, 422 US 66; 95 S Ct 2080; 45 L Ed 2d 26 (1975), where the Court found no private right in a stockholder suing under a criminal statute prohibiting corporations from making expenditures in connection with federal elections; and in Cannon v University of Chicago, 441 US 677; 99 S Ct 1946; 60 L Ed 2d 560 (1979), where the Court found an implied private right of action under a federal law prohibiting sex discrimination.
The Cannon Court, as did its predecessors, implied the creation of the private right by looking to the language of the statute which provided ”[n]o person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program”. 441 US 681-682. (Emphasis added.) The Cannon Court further rec ognized the special benefit test as the threshold factor to be considered among the four factors delineated in Cort, supra. The following comment sheds further light on the Court’s reasoning:
"There would be far less reason to infer a private remedy in favor of individual persons if Congress, instead of drafting Title IX with an unmistakable focus on the benefitted class, had written it simply as a ban on discriminatory conduct by recipients of federal funds or as a prohibition against the disbursement of public funds to educational institutions engaged in discriminatory practices.” Cannon, supra, pp 690-693.
Contrary to the opinion of the learned trial judge, the federal courts have not abandoned the "especial benefit” test as the threshold factor to be considered, in favor of the legislative intent test (the second factor established in Cort, supra). An examination of the cases relied on by him, i.e., Northwest Airlines, Inc v Transport Workers Union of America, AFL-CIO, 451 US 77; 101 S Ct 1571; 67 L Ed 2d 750 (1981), and Middlesex County Sewerage Authority v National Sea Clammers Ass’n, 453 US 1; 101 S Ct 2615; 69 L Ed 2d 435 (1981), reveals that in each case the Court first considered the "especial benefit” factor before considering the legislative intent factor.
We agree with the trial judge, however, that the mere fact that federal courts may find a private right under a federal law does not mean that state courts must of necessity find a state right under a state law. This is, in essence, the fourth factor considered in Cort, supra:
"And finally, is the cause of action one traditionally relegated to state law, in an area basically the concern of the States, so that it would be inappropriate to infer a cause of action based solely on federal law?” Cort, supra, p 78.
And that is the case before us, there being no question but that the management of local budgets is a matter of only state concern.
The "especial benefit” test crops up early in Michigan law. In Taylor v Lake Shore & MSR Co, 45 Mich 74, 77; 7 NW 728 (1881), plaintiff sued under an ordinance requiring owners or occupants of realty to keep the adjoining sidewalks free of snow. The Court, examining the duty which the ordinance imposed on the owner, said:
"The nature of the duty and the benefits to be accomplished through its performance must generally determine whether it is a duty to the public in part or exclusively, or whether individuals may claim that it is a duty imposed wholly or in part for their especial benefit.”
To like effect are Sterling v Union Carbide Co, 142 Mich 284; 105 NW 755 (1905), Lepard v Michigan Central R Co, 166 Mich 373; 130 NW 668 (1911), Sorenson v Kalamazoo Auto Sales Co, 201 Mich 318; 167 NW 982 (1918), Bolden v Grand Rapids Operating Corp, 239 Mich 318; 214 NW 241 (1927), and Pompey v General Motors, supra.
Defendants call attention to the so-called "disappointed bidder” cases wherein Michigan has routinely rejected the complaint of the losing bidder suing to enforce an ordinance which requires the municipality to accept the lowest responsible bid. The Court’s rationale is that the loser is not within the class of persons intended to be benefit-ted by the legislation. See Talbot Paving Co v Detroit, 109 Mich 657; 67 NW 979 (1896), Detroit v Wayne Circuit Judge, 128 Mich 438; 87 NW 376 (1901), and Attorney General ex rel Allis-Chalmers Co v Public Lighting Comm of Detroit, 155 Mich 207; 118 NW 935 (1908), where the Court ruled that:
"[t]he proceeding [by the Attorney General] is the proper one to determine the question, and the only one by which any action could be taken. The public represented by the proper officer is the real complainant before the court.” Id., p 211.
It disturbs us that the plaintiffs and the intervening plaintiff’s members are forced out of employment, but they are without standing to maintain this suit under the Uniform Budgeting and Accounting Act. Its purpose is to promote uniform budgets and to avoid deficit spending, not to afford security of employment. Any action under this statute must be initiated by the Attorney General (or the prosecuting attorney if assets are to be recovered). Oleksy v Sisters of Mercy of Lansing, Michigan, 74 Mich App 374; 253 NW2d 772 (1977).
Plaintiffs further cite several sections of the Detroit City Charter in support of their claim. The only sections which touch on the questions raised by plaintiffs are § 7-1103, which imposes on the Board of Police Commissioners the duty of reviewing and approving the departmental budget before its submission to the mayor, and § 7-1106, which empowers the police commissioner to discharge employees for disciplinary reasons. We find neither of these sections helpful in resolving the question of plaintiffs’ standing in this suit.
It is also urged that the plaintiffs have standing to sue as taxpayers. Plaintiffs did not assert this claim in their complaint, but voice it for the first time in their appeal brief.
There are many cases where taxpayer suits have been maintained, and the trial judge makes this point in his opinion. The attitude of courts in general toward taxpayer suits is set forth in 18 McQuillin, Municipal Corporations (3d ed), § 52.13, p 24:
"it is generally held, unless otherwise provided by statute, that a taxpayer cannot sue to enjoin an illegal or unauthorized act on the part of a municipality unless such act will result in an increase of his taxes or will otherwise result in direct or indirect pecuniary injury to him.”
This is the view adopted by the Michigan Courts: Nichols v State Administrative Board, 338 Mich 617; 62 NW2d 103 (1954), Menendez v Detroit, 337 Mich 476; 60 NW2d 319 (1953), Grand Rapids Independent Publishing Co v Grand Rapids, 335 Mich 620; 56 NW2d 403 (1953), and Kaminskas v Detroit, 68 Mich App 499; 243 NW2d 25 (1976), lv den 399 Mich 826 (1977). Plaintiffs nowhere assert that their taxes will be increased or that as taxpayers they will suffer any pecuniary loss as a result of the mayor’s action.
We should not end this discussion without recognizing Slavin v Detroit, 262 Mich 173; 247 NW 145 (1933). Defendants cite this case in support of their position that there was no common-law remedy available to plaintiffs before the enactment of the Uniform Budgeting and Accounting Act. Since Slavin was heard on its merits, it could be argued that it does in fact point to the existence of a common-law remedy prior to adoption of the Uniform Budgeting and Accounting Act. We note, however, that the question of whether plaintiffs had standing to sue was not raised or decided in that case.
Reversed. No costs, a public question being involved. | [
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M. J. Kelly, J.
Petitioners appeal and respondent cross-appeals from an order of the State Board of Tax Appeals, affirming an income tax assessment for the years 1975 and 1976 and awarding a credit for Indiana income taxes previously paid.
I
Petitioners are Michigan residents. During 1975 and 1976, they were shareholders of Brock Manufacturing, Inc., an Indiana small business corporation electing federal tax treatment under subchapter S of the United States Internal Revenue Code, IRC §§ 1371-1379. During this period, Brock was engaged in the manufacture of feed and grain bins for sale in interstate commerce.
In their 1975 and 1976 Michigan individual income tax returns, petitioners subtracted the distributions which they had received from Brock from their adjusted gross incomes. Petitioners included the Brock distributions on their 1975 and 1976 Indiana nonresident income tax returns. Subsequently, the Michigan Department of Treasury disallowed the subtraction of the Brock distributions from petitioners’ adjusted gross incomes and issued an assessment.
Petitioners then filed a petition with the State Board of Tax Appeals. The board ruled that the distributions from Brock were dividends allocable entirely to Michigan and were subject to Michigan tax. The board ruled also that petitioners were entitled to a credit against their Michigan tax liability for taxes paid to the State of Indiana.
II
The starting point for computation of Michigan taxable income for an individual is that person’s federal adjusted gross income. See MCL 206.30(1); MSA 7.557(130X1). This figure is subject to an array of adjustments, including, in particular, adjustments resulting from the allocation and apportionment provisions of Chapter 3 of the Income Tax Act of 1967. MCL 206.30(l)(j); MSA 7.557(130)(l)<j).
Chapter 3 establishes allocation and apportionment rules for taxpayers having income from business activity which is taxable both within and without Michigan. MCL 206.103; MSA 7.557(1103). The chapter provides that in the case of resident individuals, such as petitioners in the instant case, all taxable income from any source whatsoever is allocable to Michigan with the exception of that income attributable to another state under the provisions of MCL 206.111-206.115; MSA 7.557(1111)-7.557(1115). MCL 206.110(1); MSA 7.557(1110X1).
Two of these statutory exceptions are relevant to the instant problem. One is MCL 206.113; MSA 7.557(1113), which provides that "dividends are allocable to this state if the taxpayer is a resident”. The other is MCL 206.115; MSA 7.557(1115), which provides a three-factor apportionment formula for "[a]ll business income”. The apportionment formula for business income, which considers property, payroll, and sales, would apportion a great deal, if not all, of petitioners’ distributions from Brock to the State of Indiana. At issue, therefore, is whether distributions to its shareholders from a small business corporation which has elected subchapter S tax treatment are to be considered "dividends” or "business income”. Business income is statutorily defined as:
" 'Business income’ means income arising from transactions, activities and sources in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, rental, management and disposition of the property constitutes integral parts of the taxpayer’s regular trade or business operations.” MCL 206.4(2); MSA 7.557(104X2).
III
An election by a small business corporation to receive subchapter S treatment eliminates the federal corporate tax and passes the corporation’s gains and losses through to its shareholders for tax purposes. IRC § 1372(b); see Bittker & Eustice, Federal Income Taxation of Corporations and Shareholders (4th ed), ¶¶ 6.05-6.09. Subchapter S corporations, therefore, are analogous to partnerships. Indeed, as Bittker and Eustice explain, one announced purpose of the subchapter S legislation was to allow "businesses to select their legal forms free of undue tax influence”. Bittker & Eustice, supra, ¶ 6.01, p 6-2.
The term "business income” includes both positive and negative business results. Grunewald v Dep’t of Treasury, 104 Mich App 601, 604; 305 NW2d 269 (1981), lv den 412 Mich 875 (1981). Conversely, there is no tax concept of a "negative dividend” for shareholders of non-subchapter S corporations. The distributions passed on from a subchapter S corporation to its shareholders, therefore, are more akin to the concept of "business income” rather than to "dividends”. This conclusion is supported by the fact that subchapter S shareholders must include in their gross income their pro-rata percentage of all undistributed taxable income of the corporation. See IRC § 1373. This "return” from a subchapter S corporation cannot properly be considered a dividend, as the shareholder receives no cash or check from the corporation, only a paper profit or an account status notice. The return is more properly considered business income, similar to the return a partner receives from undistributed partnership income. See generally IRC §§ 701, 702.
Distributions from partnerships, both gains and losses, have been held to be "business income” subject to Michigan’s three-factor apportionment formula. See Grünewald. Due to the striking similarity between subchapter S income and partnership income, and the lack of similarity between subchapter S income and the concept of dividends, we hold that subchapter S income is "business income” and, therefore, is subject to the apportionment formula provided at MCL 206.115; MSA 7.557(1115).
IV
Our holding is consistent with current rules promulgated by the Department of Treasury. Effective April 5, 1978, 1979 AC, R 206.12(17X20). provide that:
"(17) All distributive income from a subchapter S corporation includable in the shareholder’s adjusted gross income’ is subject to tax if allocated or apportioned to Michigan.
"(18) Dividend distributions taxable as ordinary income, plus undistributed income taxable as ordinary income, are apportioned to Michigan if all of the corporation’s business activities are confined to Michigan. If the corporation is taxable both within and without Michigan, such income is apportioned to Michigan as provided in sections 115 to 195 of Act No. 281 of the Public Acts of 1967, as amended.
"(19) Dividend distributions taxable as long-term capital gains and undistributed long-term capital gains are allocated as follows:
"(a) Capital gains from the disposition of real property are allocated to Michigan if the property is located in Michigan.
"(b) Capital gains from the disposition of tangible personal property are allocated to Michigan if the property has a situs in Michigan at the time of sale.
"(c) Capital gains from the sale of intangible personal property are allocated to Michigan when received by a Michigan resident.
"(20) Distributive income from a subchapter S corporation not allocated or apportioned to Michigan may be claimed as a subtraction from adjusted gross income. Conversely, losses not allocated or apportioned to Michigan shall be added to adjusted gross income.”
Although these administrative rules were not in force in 1975 and 1976, the tax years pertinent to the instant case, the rules make clear that income received from an out-of-state subchapter S corporation is to be apportioned rather than entirely included in a resident taxpayer’s gross income. Indeed, it is only when "the corporation’s business activities are confined to Michigan” that a shareholder’s income from a subchapter S corporation is attributable solely to Michigan. 1979 AC, R 206.12(18).
V
This decision creates a split of authority on the Court. Our holding is directly contrary to another panel of this Court’s decision in Wilson v Dep’t of Treasury, 122 Mich App 711; 333 NW2d 3 (1982), lv den 417 Mich 967 (1983). We believe that Wilson reached an incorrect result and that it should be overruled.
Wilson relied for its conclusion in part on dicta found in Grunewald, supra, p 607, where, in discussing a decision of the Board of Tax Appeals in another case, the Court stated that "we agree with the board’s treatment of subchapter S distributions as corporate dividends”. The decision of the board discussed in Grünewald, however, was based on a statute, subsequently repealed in 1975, which required shareholders in a subchapter S corporation to include their proportionate share of the corporation’s taxable income in their gross income for state tax purposes without distinguishing between in-state and out-of-state subchapter S corporations. We do not believe that, the dicta found in Grünewald is adequate support for the result reached in Wilson. Rather, we believe that the repeal of a statute which required inclusion of all subchapter S corporation income in a resident shareholder’s gross income without regard to the location of the corporation lends support to our conclusion that income received from an out-of-state subchapter S corporation must be apportioned in accordance with the current statutory scheme covering business income.
In addition, Wilson reaches an untenable conclusion that positive subchapter S flow-throughs are to be considered dividends while negative flowthroughs are to be considered as deductions arising in a trade or business, i.e., business income. The effect of Wilson on a resident taxpayer having an interest in an out-of-state subchapter S corporation is to have his gain taxed in Michigan but to have his losses attributed to another state. We find no support in Michigan’s Income Tax Act of 1967 for such a dubious result.
As noted earlier, the starting point for computation of Michigan taxable income for an individual is federal adjusted gross income. Both subchapter S corporation distributions and net operating losses are used in determining federal adjusted gross income. See Treas Reg §§ 1.1373-1, 1.1374-1(b). Thus, unless a specific adjustment under MCL 206.30; MSA 7.557(130) is applicable, the figures remain unchanged in determining Michigan taxable income. The only adjustment potentially affecting these figures is found at MCL 206.30(l)(j); MSA 7.557(130)(l)(j), in regard to adjustments from the allocation and apportionment provisions of Chapter 3. The only provision of Chapter 3 affecting an adjustment is MCL 206.115; MSA 7.557(1115), regarding the allocation of "business income”. As noted in Grünewald, supra, p 604, income includes both positive and negative business results. Any allocation of income is also an allocation of losses attributable to the same activity. Accordingly, either subchapter S corporation distributions and subchapter S corporation net operating losses are "business income” in the hands of the shareholder and, therefore, subject to the adjustment resulting from formulary apportionment or both distributions and losses are not "business income” and not subject to adjustment. At oral argument in the instant case, petitioners and the Department of Treasury opined that Wilson was incorrect in its inconsistent treatment of gains and losses.
Further, the Court in Wilson reasoned that sub-chapter S distributions cannot be "business income” as that term is statutorily defined because the "business” is carried on by the corporation, not by the shareholders-taxpayers. We see no reason for requiring that the individual taxpayer himself be the one conducting the actual operation of the business which generates the return on the taxpayer’s investment. The shareholder owns the business. Indeed, the taxpayers in Grünewald, found to have "business income” subject to apportionment, were limited partners. Limited partners are basically investors in, rather than operators of, the partnership. See 60 Am Jur 2d, Partnership, § 370, p 253. We find no significant difference between limited partners and subchapter S corporation shareholders.
Finally, the Wilson Court did not consider the Department of Treasury’s own administrative rules regarding subchapter S flow-throughs. The rules require apportionment, see 1979 AC, R 206.12(18), and consistent treatment of both gains and losses, see 1979 AC, R 206.12(20).
We therefore depart from the holding in Wilson. Subchapter S corporation business income, both positive and negative, is subject to the statutory apportionment rules.
VI
Having reached the above result, we find it unnecessary to address petitioners’ argument that the multistate tax compact, MCL 205.581 et seq.; MSA 4.146(101) et seq., is applicable.
VII
Finally, we agree with the board that petitioners are entitled to a credit, pursuant to MCL 206.255; MSA 7.557(1255), for the payment of Indiana tax on income that is finally subjected to tax in Michigan.
Reversed and remanded for recomputation of petitioners’ Michigan tax liability in accordance with MCL 206.115-206.119; MSA 7.557(1115)-7.557(1119) and this opinion. No costs, a public question being involved. | [
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Cynar, P.J.
Defendants appeal from a June 30, 1983, circuit court order denying defendants’ motion to remove the case from mediation. Application for leave to appeal was granted by this Court on July 28,1983.
Defendants have filed a statement of facts and proceedings for purposes of this appeal which was certified by the trial court on August 25, 1983.
Plaintiff instituted this action on January 22, 1979, for damages for injuries allegedly received on January 30, 1976, when her vehicle was struck by a van owned by defendant D. G. Standhardt Associates, Inc., and driven by its employee, defendant Michael John Lange.
The case was scheduled for mediation on December 17, 1979; however, the mediation was ordered postponed pursuant to stipulation of the parties for at least 60 days because additional discovery was necessary. Mediation was set again for May 14, 1980. No objection was raised that the mediation was untimely or that discovery was incomplete. Both parties submitted extensive mediation summaries. The mediation panel’s evaluation was $65,000. (Defendants’ certified statement of facts reports $55,000, which appears to be in error.) The evaluation also reminded plaintiff, pursuant to GCR 1963, 316.7(b)(1), that if she rejected the evaluation she would have to obtain a jury verdict of at least $71,500 (ten percent above the evaluation) or else pay actual costs.
On June 2, 1980, defendants filed their acceptance of the mediation award. Plaintiff filed nothing within the 20-day acceptance period, and under GCR 1963, 316.6(h)(1), this constituted rejection. However, on July 15, 1980, plaintiff’s attorney made repeated settlement offers to defendants on the premise that "discovery has been completed with this being an obvious case of liability”. However, discovery continued thereafter in 1980, 1981 and 1982. Defendants did not settle. A trial date was set, then adjourned several times.
Having received notice that the trial was set for June 7, 1983, the parties met on May 2, 1983, for a status conference with the trial judge. During the status conference, plaintiff requested remediation because discovery had not been completed at the time of the first mediation. The trial court ordered remediation on that ground. No transcript of the status conference of May 2, 1983, exists, since the conference was held off the record. Defendants filed a motion to remove this cause from mediation on May 16, 1983. The motion was heard and denied. An order denying defendants’ motion to remove from mediation was entered on June 30, 1983.
Defendants filed an emergency application for leave to appeal from that order, which this Court granted on July 28, 1983. Defendants subsequently obtained the trial court’s certification of defendants’ proposed concise statement of facts and proceedings. Plaintiff did not file a brief in this appeal.
The issue in this appeal is whether the trial court erred reversibly in ordering remediation.
Litigants are entitled to a just, speedy and inexpensive determination of their case. These basic concepts are expressed in the Michigan General Court Rules, Rule 13, Construction:
"These rules are to be construed to secure the just, speedy, and inexpensive determination of every action so as to avoid the consequences of any error or defect in the proceedings which does not affect the substantial rights of the parties.”
The appeal concerns the construction and application of Michigan’s mediation rule, GCR 1963, 316, which reads in pertinent part as follows:
".1 Scope and Applicability of Rule.
"(a) A court may submit to mediation any civil case in which the relief sought consists of money damages or division of property.
".2 Selection of Cases.
"(a) The judge to whom a case is assigned or the chief judge may select it for mediation by written order at least 90 days after the filing of the answer.
"(1) on written stipulation by the parties,
"(2) on written motion by a party, or
"(3) on the judge’s own motion.
"(b) Selection of a case for mediation has no effect on the normal progress of the case toward trial.
".3 Objections to Mediation.
"(a) To object to mediation, a party must file a written motion to remove from mediation and a notice of hearing of the motion and serve a copy on counsel of record and the mediation clerk within 15 days after notice of the order assigning the case to mediation. The motion must be set for hearing within 15 days after it is filed, unless the court orders otherwise.
".6 Procedure for Mediation.
"(h) Action on Board’s Decision.
"(1) Each party must file a written acceptance or rejection of the panel’s evaluation with the mediation clerk within 20 days after the mailing of the panel’s evaluation. The failure to file a written acceptance within 20 days constitutes rejection.
".7 Effect of Mediation.
"(b) If any party rejects the panel’s evaluation, the case proceeds to trial in the normal fashion.
"(1) If the defendant accepts the evaluation but the plaintiff rejects it and the case proceeds to trial, the plaintiff 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 10 percent greater than the panel’s evaluation, or pay actual costs to the defendant.”
Mediation was first scheduled for December 17, 1979, this date being approximately 11 months after suit was instituted. Pursuant to stipulation of the parties, the trial court adjourned mediation to allow further discovery. Mediation was again set for May 14, 1980. No objection, written or otherwise, was made to this mediation date. Mediation took place on the date as set and a mediation award was made.
Several trial dates were set prior to the last trial date, June 7, 1983. The parties met with the trial judge on May 2, 1983, for a status conference. On the said date almost three years had elapsed since the mediation award and over seven years had elapsed since the date of the accident. Over defendants’ objection, the trial court granted plaintiffs request for remediation because discovery had not been completed at the time of the May 14, 1980, mediation.
A fair reading of the court rule on mediation, GCR 1963, 316, adopted in 1980, provides for submission of any civil case in which the relief sought consists of money damages or division of property. The court rule does not provide for multiple, repeated mediation or remediation hearings. We are not inclined to hold as a matter of law that GCR 1963, 316 does not authorize trial courts to order remediation, because cases may arise where valid reasons are determined to exist for setting aside a mediation evaluation. This is not such a case.
Granting remediation in this case may raise a number of problems. Foremost in mind is whether the parties would be bound by the mediation or by the remediation award. Further, whether granting remediation at the request of one side would accord a similar right thereafter to the opposing party.
Since it is incumbent upon the parties to pay the mediation panel for its services, remediation will cause additional costs and attorney fees to be incurred.
To order remediation some three years later because discovery had not been completed at the time of the May 14, 1980, mediation was contrary to GCR 1963, 316.3(a). Plaintiff did not file a written motion to remove the cause from the May 14, 1980, mediation as required.
The trial court in this case abused its discretion in ordering a remediation when plaintiff did not object, until years later, that the mediation was premature due to incomplete discovery.
Reversed. | [
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Danhof, C.J.
Defendant appeals as of right from a Muskegon Circuit Court jury verdict which awarded damages to plaintiffs Gordon and Stephanie Rinard for the costs of raising their daughter Christine’s child, which they adopted. We reverse.
In May of 1983, Stephanie Rinard took fifteen-year-old Christine to see defendant because she discovered that Christine was sexually active. Christine was not pregnant at this time. On December 5, 1983, Christine was again taken to defendant who examined her regarding her possible pregnancy. Christine replied negatively when defendant asked her if she had engaged in sexual intercourse since the last time that he saw her. Actually, she had been having sexual relations with her stepbrother. Defendant incorrectly concluded that Christine was not pregnant at this time. On July 9, 1984, Christine gave birth to a normal, healthy baby which Gordon and Stephanie Rinard adopted.
Plaintiffs Gordon, Stephanie and Christine Rinard brought this medical malpractice action against defendant based on his failure to diagnose Christine’s pregnancy in December of 1983. Christine’s claim was dismissed with prejudice on motion of her own counsel prior to trial. Plaintiffs testified that Christine probably would have had an abortion if defendant had informed them that she was pregnant in December of 1983. The jury awarded damages to Gordon and Stephanie Rinard for the costs of raising the child. The lower court denied defendant’s post-trial motions.
We conclude that the child’s mother was the only plaintiff who could have properly brought a cause of action based on defendant’s failure to diagnose her pregnancy. She could have recovered the costs of pregnancy and birth, and related damages, but not the costs of raising the child. The mother’s parents could not maintain this cause of action for the costs of raising their daughter’s child, whom they adopted. Nobody, including natural and adoptive parents, can recover the costs of raising a normal, healthy child because those costs are outweighed by the benefits of that child’s life.
We resolve the primary issues in this case by addressing three questions: (1) Can a cause of action be maintained in Michigan for failure to diagnose pregnancy? (2) What recovery is available based on this cause of action? and (3) Can the child’s grandparents, who are also the adoptive parents in this case, bring this cause of action?
A cause of action can be maintained in Michigan for failure to diagnose pregnancy. In Proffitt v Bartolo, 162 Mich App 35, 46-47; 412 NW2d 232 (1987), lv den 430 Mich 860 (1988), this Court stated that as long as abortion remains an option allowed by law, physicians owe a duty to furnish patients with adequate information for them to be able to decide whether to choose that course of action. Proffitt was a wrongful birth case. The term "wrongful birth” is a shorthand name given to actions brought by the parents of a child born with severe defects against a physician, or other responsible party, who negligently fails to inform them in a timely fashion of the risk that the mother will give birth to such a child, effectively precluding an informed decision as to whether the pregnancy should be avoided or terminated. 162 Mich App 40. The instant case does not involve a wrongful birth cause of action. However, the claim asserted in this case is more analogous to that cause of action than to other causes of action such as wrongful life or wrongful pregnancy which Michigan courts have addressed. See Proffitt, supra, pp 40-41. This Court impliedly recognized a cause of action for failure to diagnose pregnancy in Clapham v Yanga, 102 Mich App 47; 300 NW2d 727 (1980), lv gtd 412 Mich 889 (1981), dis by stipulation 412 Mich 889 (1982). Our Supreme Court granted leave to appeal in that case and directed the parties to brief the issues of whether the defendant should be liable for damages for failure to diagnose pregnancy and, if so, how the damages should be measured. The appeal was dismissed upon stipulation by the parties.
We turn to the question of what recovery is available based on a cause of action for wrongful failure to diagnose pregnancy. The lower court instructed the jury to determine damages by applying the "benefits rule” which was set forth in Troppi v Scarf, 31 Mich App 240; 187 NW2d 511 (1971), lv den 385 Mich 753 (1971). Michigan courts have applied the benefits rule on numerous occasions. However, for the reasons set forth below, we conclude that the benefits rule should not be used to determine damages in this type of case.
Under the benefits rule, the trier of fact determines the amount of damages to be awarded by evaluating the benefits of having the child according to the circumstances of the case and subtracting the dollar value of those benefits from the dollar value of the injury to the plaintiff caused by the defendant’s tortious conduct. Troppi, supra, pp 254-257. In Troppi, the defendant pharmacist neg ligently failed to fill a woman’s prescription for birth control pills, resulting in the birth of a normal, healthy child. Under Troppi, the costs of raising a normal, healthy, but unwanted, child, is an element of gross damages. 31 Mich App 261. See also Green v Sudakin, 81 Mich App 545, 547; 265 NW2d 411 (1978), lv den 403 Mich 855 (1978). The Troppi Court noted that, in the great majority of cases, the birth of a healthy child confers so substantial a benefit as to outweigh the expenses of his or her birth and support. However, the Court felt that it could not say, as a matter of law, that a healthy child always confers such an overriding benefit. Troppi, supra, p 254.
Michigan is among the minority of states which allow the recovery of the costs of raising a child as an element of damages, offset by the benefits received by the parents from the parent-child relationship. In a substantially greater number of jurisdictions, courts have denied the recovery of child-rearing costs. See Morris v Sanchez, 746 P2d 184, 186-187 (Okla, 1987); Cockrum v Baumgartner, 95 Ill 2d 193, 197; 69 Ill Dec 168; 447 NE2d 385, 387-388 (1983), cert den 464 US 846; 104 S Ct 149; 78 L Ed 2d 139 (1983), and cases cited therein.
Courts have not allowed the recovery of the costs of raising a normal, healthy child as an element of damages for many reasons. Morris, supra, pp 187-188; Cockrum, supra, pp 198-199. We consider the best reason to be that the costs of raising such a child are outweighed by the value of that child’s life. In Rohm v Stroud, 386 Mich 693, 696; 194 NW2d 307 (1972), our Supreme Court stated that the value of a minor child’s services to a parent is at least as great as the amount expended by the parent on the child’s support, maintenance and education. In that wrongful death case, our Supreme Court further stated that par ents are at least entitled to the presumption that a child is worth his keep, and the negligent act which snuffs out their child’s life deprives them of services at least equal to the amount of their pecuniary outlay. 386 Mich 697.
The instant case does not involve a wrongful death claim. However, allowing the costs of raising a child as an element of damages logically requires the conclusion that the nonexistence of that child would be a benefit. Morris, supra, p 188. We agree with the reasoning of the Illinois Court of Appeals which stated:
The existence of a normal, healthy life is an esteemed right under our laws, rather than a compensable wrong. [Wilczynski v Goodman, 73 Ill App 3d 51, 62; 29 Ill Dec 216; 391 NE2d 479, 487 (1979).
In a proper hierarchy of values, the benefit of life should not be outweighed by the expense of supporting it. Cockrum, supra, p 201. A court " 'has no business declaring that among the living are people who never should have been born.’ ” Proffitt, supra, p 51, quoting Smith v Cote, 128 NH 231, 249; 513 A2d 341, 353 (1986).
Another reason for not allowing the recovery of child-rearing costs as an element of damages is that, to maximize their recovery under the benefits rule, parents must demonstrate that they did not want their child and that the child is of minimal value to them. Michigan should not allow " 'the unseemly spectacle of parents disparaging the "value” of their children or the degree of their affection for them in open court.’ ” Cockrum, supra, p 202, quoting Public Health Trust v Brown, 388 So 2d 1084, 1086, n 4 (Fla App, 1980). A related concern is for the child who may learn that his parents did not want him to exist and sued to have the person who made his existence possible provide for his support. Wilbur v Kerr, 275 Ark 239, 242-244; 628 SW2d 568, 570-571 (1982).
We do not dispute the fact that child rearing is a costly enterprise. We simply believe that the benefits of raising a normal, healthy child must be conclusively presumed to be greater than the costs of raising that child. As a matter of public policy, parents should not be able to recover the costs of raising a normal, healthy child as an element of damages. We would limit the parents’ recovery for a physician’s failure to diagnose pregnancy to the costs of pregnancy and birth, and related damages for pain and suffering, medical complications caused by the pregnancy, mental distress, lost wages, and loss of consortium. See Wilczynski, supra, p 63. These damages should not be offset with what the factfinder speculates to be the benefits of a child. The benefits rule should not be used to measure damages in this type of case.
We turn to the question of whether the child’s grandparents, who are also the adoptive parents in this case, can bring this cause of action. They should not be able to recover child-rearing costs as an element of damages for the same reasons that the child’s parents should not be able to recover those costs. Plaintiffs’ reliance on cases which have extended a physician’s duty to third parties is misplaced. Regardless of the existence of a special relationship and the foreseeability that the doctor’s failure to diagnose the pregnancy would result in someone’s having to provide for the child, the grandparents should not be able to recover damages because the benefits that they gain from raising the child outweigh the child-rearing costs. Further, making a defendant doctor liable to peo pie who voluntarily choose to raise a child, based on a determination that their choice was foreseeable, opens the door to claims in future cases by relatives or other people who could argue that they were foreseeable adoptive parents. There are many potential parents who would gladly adopt a normal, healthy child and not claim that they are injured because they must raise that child. Grandparents should not be allowed to adopt a cause of action by adopting their daughter’s child.
In Clapham, supra, a panel of this Court set forth the proposition that the only person who would profit from a holding that the grandparents are not entitled to damages would be the defendant doctor who would escape the consequences of his own negligence. 102 Mich App 60. We disagree. The appropriate consequences for a doctor who negligently fails to diagnose a pregnancy resulting in a normal, healthy child are to pay for the costs of pregnancy and birth, and related damages. The Clapham Court set forth the above-described proposition after explaining that guardianship with the grandparents was in the best interests of the child in that case. 102 Mich App 59-60. We recognize that in some cases such as Clapham, which involved an older child and different circumstances, adoption by the grandparents might be in the child’s best interests. However, the instant case involves a young child who will grow up in a household where her adoptive parents’ children are her natural parents. We question whether this situation is really in the child’s best interests.
Our decision that this case must be reversed makes it unnecessary for us to address defendant’s remaining claims concerning jury instructions and the admission of evidence.
We recognize that portions of this opinion could be interpreted as being contrary to portions of this Court’s opinions in cases such as Proffitt, supra, and Eisbrenner v Stanley, 106 Mich App 357; 308 NW2d 209 (1981), lv den 414 Mich 875 (1982). Both Proffitt and Eisbrenner allowed wrongful birth causes of action for children who were born with severe birth defects. We will continue to allow parents who successfully maintain a wrongful birth cause of action to recover for their extraordinary medical expenses and the extraordinary costs of raising the child, as well as the emotional harm they have suffered. Proffitt, supra, p 46. If changes are to be made in this area of the law, then they should be made by the Legislature or our Supreme Court. Proffitt, supra, pp 58-59. We question whether the benefits rule should ever be used when it requires that a value be placed on human life. We invite our Supreme Court to grant leave to resolve the issues raised in this case.
Reversed.
R.L. Olzark, J., concurred.
I no longer maintain the position that the benefits rule should be used to measure damages in wrongful pregnancy cases. See Bushman v Burns Clinic Medical Center, P.C. (After Remand), 83 Mich App 453; 268 NW2d 683 (1978), lv den 403 Mich 850 (1978) (Danhof, C.J., dissenting). | [
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Per Curiam.
Defendant was convicted by a jury of driving a vehicle while under the influence of intoxicating liquor, third offense, MCL 257.625; MSA 9.2325. Following an initial appeal, the trial court held an evidentiary hearing regarding the validity of a prior conviction. Defendant now appeals as of right from the trial court’s order adjudging the prior conviction a proper basis for the conviction as a third offender.
Defendant had pled guilty to driving a vehicle while under the influence of intoxicating liquor at a district court proceeding in 1977, without counsel representing him. At that plea-taking proceeding he received a form explaining the rights which he was waiving, but the trial court did not engage in any colloquy explaining the waiver. We find that the omission of such a colloquy was improper and that it renders the plea-taking for the prior conviction constitutionally infirm. See People v Taylor, 89 Mich App 238; 280 NW2d 500 (1979); People v Lee, 112 Mich App 194; 315 NW2d 896 (1982).
Our conclusion that a colloquy is contemplated derives from the language of DCR 785.4. GCR 1963, 785.7, specifically provides that "the court shall personally carry out” the imparting of information at a plea-taking proceeding. Plaintiff argues that absence of this phrase from DCR 785.4 indicates that a colloquy is not mandated in the district court. Although this phrase does not appear in the district court rule, the language nonetheless evinces an intent to mandate a colloquy at a district court plea-taking proceeding.
DCR 785.3 provides:
"Unless a writing is permitted, a verbatim record of the proceedings before a judge under subrules 785.4 to 785.6 must be made.”
DCR 785.4 provides:
"Arraignment, District Court Offenses.
"(a) Whenever a defendant is arraigned on an offense over which the district court has jurisdiction, he must be informed of
"(1) the name of the offense charged;
"(2) the maximum sentence permitted by law;
"(3) the mandatory minimum sentence, if any; and
"(4) his right
"(A) to the assistance of a lawyer and to a trial;
"(B) (if subrule 785.4[b] applies) to an appointed lawyer; and
"(C) (unless he is charged under an ordinance that does not correspond to a criminal statute or permit a jail sentence) to a trial by jury.
"The information may be given in a writing that is made a part of the file, or by the court on the record.
"(b) An indigent defendant has a right to an appointed lawyer whenever
"(1) the offense charged is punishable by more than 90 days in jail;
"(2) the offense charged requires on conviction a minimum term in jail; or
"(3) the court determines that it might sentence him to jail.
"If an indigent defendant is without a lawyer and has not waived his right to an appointed lawyer, the court may not sentence him to jail.
"(c) The right to the assistance of a lawyer, to an appointed lawyer, or to a trial by jury is not waived unless the defendant
"(1) has been informed of the right; and "(2) has waived it in a writing that is made a part of the file or orally on the record.
"(d) Prior to accepting a plea of guilty or nolo contendere, the court shall
"(1) advise the defendant that if his plea is accepted, he will not have a trial of any kind, so he gives up the rights he would have at a trial;
"(2) determine that the plea is voluntary; and "(3) establish support for a finding that defendant is guilty of the offense charged or the offense to which the defendant is pleading.
"The court may not accept the plea unless it is convinced that the plea is understanding, voluntary, and accurate.” (Emphasis added.)
The rule states that the only information which the district court has the option of imparting in a writing (other than when taking a plea by mail, DCR 785.4[e]) is that contained in DCR 785.4(a). A verbatim record must be made of the remainder of the proceedings listed in DCR 785.4 to 785.6, one of which is the taking of a guilty plea.
The dissenting opinion interprets a "verbatim record” to mean either a recording of spoken words or the inclusion of written forms in the file. Such an interpretation renders pointless the specific exception of DCR 785.4(a) from the rest of the rule. The option of communicating the information "in a writing that is made a part of the file” is not available to the district court when it advises the defendant of the consequences of pleading guilty; instead, the information must be given "by the court on the record”.
The purpose of DCR 785.4(d)(1) is not different from that of its circuit court counterpart, GCR 785.7: to provide adequate advance notice of rights which are waived by virtue of a plea.
"The purpose of requiring the court to personally address the defendant is two-fold.
"First, it gives the plea-taking court an opportunity to observe the defendant’s demeanor and the manner in which he replies to the court’s questions.
"Second, it reinforces the fact that pleading guilty is a serious occasion at which the defendant sheds his presumption of innocence and assumes the burden of being [convicted] * * *. To permit the defendant to waive the recital of his rights lessens the impact of the occasion and reduces the dignity of the judicial system.” People v Napier, 69 Mich App 46, 48-49; 244 NW2d 359 (1976), lv den 397 Mich 849 (1979).
A defendant’s constitutional right to adequate notice should not depend upon the mere fact that he has pleaded in district rather than circuit court. The potential for an unknowing waiver of rights was enhanced here by the fact that defendant was not represented by counsel.
Since the plea which formed the basis of the prior conviction was invalid, the conviction, in turn, may not properly be used here as the basis for defendant’s conviction as a "third offender”. Accordingly, we reverse the trial court order adjudging the prior conviction to have been a proper basis for conviction as a third offender.
Reversed and remanded. | [
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Per Curiam.
Defendant Employers Temporary Service, Inc. (ets) appeals by leave granted from the March 3, 1987, order of the Wayne Circuit Court which denied its motion for summary disposition as to plaintiffs negligence claim. We affirm.
On March 24, 1984, defendant Kenneth Widick caused a sixty-pound mini-van door to fall across plaintiffs arms, resulting in severe injuries. Plaintiff claimed that Widick was intoxicated and had negligently caused the accident. At the time, Widick was employed by ets (a labor broker) and was assigned to work at Tuff-Kote, Inc., in Hamtramck. Plaintiff was a former ets employee and had just accepted full-time employment with Tuff-Kote on the day of the accident.
Plaintiff commenced this lawsuit in the Wayne Circuit Court on November 14, 1984, naming Widick, the bar where Widick had been drinking, and the bar’s owners as codefendants. The complaint alleged a cause of action sounding in negligence. On July 11, 1985, plaintiff filed a first amended complaint adding ets as a named codefendant. The substantive allegations remained the same.
On February 5, 1987, ets filed a motion for summary disposition pursuant to MCR 2.116(C)(10), no genuine issue of material fact. Ets made the following inductive argument: (1) At the time of the accident, Widick was employed by both ets and Tuff-Kote; (2) plaintiff, being an employee of Tuff-Kote, was necessarily a coemployee of Widick; (3) as plaintiffs coemployee, Widick was im mune from suit under the Workers’ Disability Compensation Act, MCL 418.827(1); MSA 17.237(827)(1); and (4) since Widick was immune, ets could not be held liable for his negligence under the theory of respondeat superior.
In response to the motion, plaintiff admitted that "under the holdings of Farrell v Dearborn Manufacturing Co, 416 Mich 267 [330 NW2d 397] (1982), defendant Widick must be considered an employee of both ets and Tuff-Kote but only as the exclusive remedy provision [of the workers’ compensation act, MCL 418.131; MSA 17.237(131)] applies to defendant Widick.” Plaintiff went on to argue, though, that he was not employed by ets and, therefore, he and Widick were not coemployees. Plaintiff apparently did not consider the possibility of an employment relationship with Widick vis-á-vis their mutual employment with Tuff-Kote.
A hearing on the motion was conducted on February 27, 1987. The trial court ruled that plaintiff was not an ets employee and, therefore, the exclusive remedy provision did not operate to bar his negligence suit. As to ets’s claim that plaintiff and Widick were coemployees, the court held:
I don’t even think that I have to get to the second analysis .... But if I get to your second analogy [sic: argument?] that Mr. Widick is an employee of both parties, first of all, I don’t know if that’s true, but there is a factual dispute there. The counsel for plaintiff has provided the Court with sufficient documentary evidence that raises a factual dispute, and makes an issue of whether or not Mr. Widick was an employee of Tuff-Kote, or of the two employers. So, based on all that, your motion is denied.
Accordingly, an order denying summary disposition to ets was entered on March 3, 1987.
Ets thereafter applied for, and was granted, leave to appeal the denial of its motion to this Court.
The first issue we must address is whether the trial court erred in finding that there was a genuine issue of material fact as to whether Widick was a Tuff-Kote employee, and thus a coemployee of plaintiff. We hold that the trial court did err.
As previously mentioned, plaintiff admitted in his response to ets’s motion for summary disposition that Widick must be considered an employee of both ets and Tuff-Kote pursuant to the holding of Farrell, supra. As to Widick’s status as a Tuff-Kote employee, there was no factual dispute. Even had plaintiff not made his concession, though, the trial court nevertheless erred on the facts before it.
Whether a company is a particular worker’s "employer,” as that term is used in the workers’ compensation act, is a question of law for the courts to decide if the evidence on the matter is reasonably susceptible of but a single inference. Nichol v Billot, 406 Mich 284, 302-303; 279 NW2d 761 (1979) (quoting Flick v Crouch, 434 P2d 256 [Okla, 1967]). Only where the evidence bearing on the company’s status is disputed, or where conflicting inferences may reasonably be drawn from the known facts, is the issue one for the trier of fact to decide. Id.
The facts of the case are substantially similar to those in Wooten v Sennett Steel Co (a companion case to Farrell, supra) and Renfroe v Higgins Rack Coating & Mfg Co, Inc, 17 Mich App 259, 266; 169 NW2d 326 (1969), wherein it was held that, under the "economic reality test,” the plaintiff was employed by both the labor broker and the temporary employer. Without reciting the numerous facts which satisfy the economic reality test in this case, it is enough to say that, in conformity with Wooten and Renfroe, Widick was the employee of both ets and Tuff-Kote.
In his appellate brief, plaintiff seemingly argues that a factual dispute exists as to whether he and Widick were coemployees since he was not employed by ets. Such an argument is flawed because it ignores the employment relationship that arose by virtue of plaintiffs and Widick’s mutual employment with Tuff-Kote. Both the law and logic dictate that two persons, who work side-by-side for a common purpose at the same location and who share a common employer (i.e., Tuff-Kote), are "coemployees” under the workers’ compensation act.
Although we have determined that there is no genuine issue of material fact that plaintiff and Widick are coemployees, our inquiry is not at an end. We must now decide how that determination affects ets’s liability, if any, to plaintiff. Ets claims that, since Widick is immune from tort liability, it should not be held vicariously liable for the negligent acts. If that claim is correct, the trial court erred in denying its motion for summary disposition. Hence, the principal issue on appeal is whether a labor broker is vicariously liable, under the doctrine of respondeat superior, for the tortious acts of its employee where that employee is statutorily immune from a common-law negligence action. _
In Michigan, most workers who are injured on the job fall within the coverage of the Workers’ Disability Compensation Act, MCL 418.101 et seq.; MSA 17.237(101) et seq. Section 827(1) of the act, which is known as the "coemployee provision,” provides that an injured employee can maintain a common-law action for employment-related damages only where the circumstances of the injury create "a legal liability in some person other than a natural person in the same employ or the employer.” MCL 418.827(1); MSA 17.237(827X1), White v Chrysler Corp, 421 Mich 192, 196; 364 NW2d 619 (1984). In other words, an injured employee may bring an action against third persons other than his or her employer and coemployees. Nichol, supra, p 297. The coemployee provision does not prohibit all lawsuits for injuries sustained in the workplace regardless of the relationship between the injured worker and the tortfeasor. One reason for permitting common-law actions against third-party tortfeasors is to protect the worker and his or her family by recognizing that benefits under the act are not expected to be full compensation for all losses suffered. Franges v General Motors Corp, 404 Mich 590, 613; 274 NW2d 392 (1979).
The factual circumstances of the instant case present an issue of first impression not only to this state but apparently to many other states as well. In our research, we have been able to find only three cases where the plaintiff sued a labor broker/general employer in tort for injuries caused by its employee who, at the time, was the plaintiffs fellow employee and thus immune from common-law actions under the exclusive remedy provision of the particular workers’ compensation act. Two of those cases—both from California—held that the plaintiff was not barred as a matter of law from bringing a common-law action against the labor broker/general employer. Marsh v Tilley Steel Co, 26 Cal 3d 486; 162 Cal Rptr 320; 606 P2d 355 (1980); Campbell v Harris-Seybold Press Co, 73 Cal App 3d 786; 141 Cal Rptr 55 (1977). The third case held contra. Pichardo v Kreger Truck Renting Co, Inc, 57 AD2d 177; 394 NYS2d 189 (1977). We believe the California cases, especially Marsh, are better reasoned and more consistent with the workers’ compensation laws of this state.
In Marsh, the plaintiff was employed as a truck driver and laborer by Maxwell Construction Company, a general concrete contractor. The defendant, Tilley Steel Company, subcontracted with Maxwell Construction to install reinforced steel in a freeway construction project. During construction, the plaintiff was injured due to the alleged negligence of Andy Wynglarz, a Tilley Steel Employee whose services as a skilled crane operator had been "borrowed” by Maxwell Corporation. 26 Cal 3d 490-492.
The plaintiff thereafter filed a common-law tort action against Tilley Steel and others. By the time a jury trial commenced in the Los Angeles County Superior Court, Tilley Steel remained as the only named defendant. At the conclusion of the plaintiff’s proofs, Tilley Steel moved for a judgment of nonsuit. The trial court granted the motion, reasoning that Wynglarz was a special employee of Maxwell Construction and that the plaintiff, as a Maxwell Construction employee too, was limited to his workers’ compensation remedy against Maxwell Construction and had no remedy against Tilley Steel. 26 Cal 3d 492.
The case eventually made its way to the California Supreme Court. In reversing the decision of the trial court, the Supreme Court held:
The case involves the interplay between tort and workers’ compensation remedies within the relationship of special and general employers and employees. We will conclude that, where the negligence of a special employee injures another of the special employer’s workers, the victim is not barred by workers’ compensation law from suing the general employer of the tortfeasor in negligence on respondeat superior principles. The general employer is liable in tort if, at the time of the injury, it retained total or partial concurrent control over the tortfeasor’s work. [26 Cal 3d 490.]
The Marsh court went on to hold that a question of fact existed as to whether Wynglarz remained wholly or partially under Tilley Steel’s control at the time of the accident and, thus, the trial court’s judgment of nonsuit was improper. 26 Cal 3d 490.
For purposes of the case at bar, the Marsh decision is important not so much for its result but for the reasoning used to reach that result. The Marsh decision addressed several points that are of concern in the instant case as well.
First, the Marsh court noted:
Under the workers’ compensation law, recovery of statutory benefits is an injured employee’s sole remedy against "the employer or against any other employee of the employer acting within the scope of his employment . . . .” (Lab.Code, § 3601, subd.(a); all statutory references are to that code unless otherwise indicated.) However, this statutory restriction does not affect the employee’s rights to tort damages from persons with whom the employee has no employment relationship. (§ 3852; Witt v Jackson, (1961) 57 Cal 2d 57, 69; 17 Cal Rptr 369; 366 P2d 641.) [26 Cal 3d 495.]
This is also true in Michigan. Sections 131 and 827(1) of the workers’ compensation act, taken together, bar common-law actions only against the injured worker’s employer or coemployee. MCL 418.131 and 418.827(1); MSA 17.237(131) and 17.237(827)(1). The act does not bar the injured worker from seeking damages against a third-party tortfeasor. Nichol, supra, p 297.
The Marsh court also addressed the claim that the coemployee’s statutory immunity should be extended to his or her general employer:
The identical argument was recently and persuasively rejected in Campbell v Harris-Seybold Press Co, (1977) 73 Cal App 3d 786; 141 Cal Rptr 55. The Campbell court concluded that, because a coemployee’s statutory immunity defense did not determine the merits of the claim, i.e., the negligence of the coemployee, the statutory defense was personal and could not thereby absolve the coemployee’s general employer from liability for such negligence on a theory of respondeat superior. (Id., at p 791; 141 Cal Rptr 55; Cardenas v Ellston, (1968) 259 Cal App 2d 232, 238; 66 Cal Rptr 128; see Baugh v Rogers, (1944) 24 Cal 2d 200, 214; 148 P2d 633; compare Freeman v Churchhill, (1947) 30 Cal 2d 453, 461; 183 P2d 4 [invoking a contrary rule where employee’s defense does resolve the merits of plaintiff’s claim].)
The reasoning of Campbell is sound. Where the tortfeasor is not the plaintiff’s employer or coemployee, the statutes by necessary implication reserve for plaintiff his tortious remedy against defendant. Moreover, general respondeat superior principles seek to place the cost of work-related negligence on those enterprises the actions of which have produced the negligence risk. (Hinman v Westinghouse Elec Co, supra, [1970] 2 Cal 3d [956,] 959-960; 88 Cal Rptr 188; 471 P2d 988.) This policy would be defeated by extending to an employer the benefit of a technical defense reserved solely for the employee. As Campbell noted, a defendant has no workers’ compensation responsibility to a plaintiff who is not its employee. Accordingly, defendant’s argument would relieve de fendant from its normal respondeat superior liability, while at the same time giving no accompanying benefit to the workers’ compensation system. (73 Cal App 3d at p 791; 141 Cal Rptr 55.) The result in the case before us is that if there is no tort liability of defendant to plaintiff because Wynglarz is deemed plaintiffs fellow employee, and there is no workers’ compensation remedy because plaintiff is not defendant’s employee, the defendant effectively immunizes itself from any liability whatever. [26 Cal 3d 495-496.]
Again, the same reasoning applies under Michigan law. It has been held that, absent statutory authority to the contrary, there is no derivative immunity of the master from the servant for tortious acts committed within the scope of employment. Hamburger v Henry Ford Hosp, 91 Mich App 580, 589; 284 NW2d 155 (1979), lv den 407 Mich 942 (1979). Cf., Nicholson v Detroit, 129 Mich 246, 255; 88 NW 695 (1902) ("one cannot be held liable under an application of the rule of respondeat superior where he would not be liable for the same act of negligence if done by himself . . .”). In the instant case, the immunity granted by the workers’ compensation act is personal and does not purport to grant derivative immunity to general employers in the position of ets. Additionally, like Tilley Steel in Marsh, ets here had no workers’ compensation responsibility to plaintiff since it was not his employer. To grant ets derivative immunity would effectively shield it from all liability, either for common-law damages or for workers’ compensation benefits, without obtaining any accompanying benefit to the workers’ compensation system.
Finally, the Marsh court addressed the problem of the general employer suing its employee (the actual tortfeasor) for indemnification and, thus, circumventing the immunity conferred upon that employee under the workers’ compensation act. The court stated that this was not cause for concern because a provision of the California workers’ compensation act provided that the employee " 'shall [not] be held liable, directly or indirectly, to his employer, for injury or death of a coemployee.’ ” 26 Cal 3d 496 (citing Lab Code, §3601[d]). Because Tilley Steel’s liability, if any, was premised on its status as Wynglarz’ employer, it was precluded, under the above provision, from suing Wynglarz for indemnity. Hence, the Marsh court concluded that there was no fear that the injured party’s suit would produce indirect liability for an immune party. Id.
The Michigan workers’ compensation act, unlike the California act, does not have a provision which exempts the immune employee from indirect liability to his or her employer. Consequently, there is nothing which would bar the employer from seeking indemnity against the employee. This, of course, would accomplish indirectly that which could not be done directly under this state’s workers’ compensation scheme, i.e., exposing the employee to civil liability for torts committed to a coemployee. However, unlike the California courts (see Popejoy v Hannon, 37 Cal 2d 159; 231 P2d 484 [1951]), we do not believe this indirect civil liability warrants extending immunity to ets.
It is well established in Michigan that an action for indemnity, either contractual or at common law, is not precluded by the Michigan workers’ compensation act where the indemnitee is free from personal fault even though the indemnitor would otherwise be immune from suit by the injured employee. See, e.g., Indemnity Ins Co of North America v Otis Elevator Co, 315 Mich 393, 398-399; 24 NW2d 104 (1946); Ready v Clark Equipment Co, 91 Mich App 474, 477-478; 283 NW2d 650 (1979), lv den 407 Mich 888 (1979); McLouth Steel Corp v A E Anderson Construction Corp, 48 Mich App 424, 430-431; 210 NW2d 448 (1973), lv den 391 Mich 754 (1973). We hold that ets’s possible indemnity right against Widick does not foreclose plaintiffs common-law action against ETS.
Having concluded that plaintiff is not barred as a matter of law from suing ets in tort, we must next decide whether such a suit is supported by the facts of the case. In Marsh, it was held that the general employer would be liable in tort if, at the time of the injury, he retained total or partial concurrent control over the tortfeasor’s work. 26 Cal 3d at 494-495. That rule is consistent with Michigan law. See Haynes v Monroe Plumbing & Heating Co, 48 Mich App 707, 718-719; 211 NW2d 88 (1973), lv den 391 Mich 765 (1974). Here, there remains a question of fact whether ets retained any concurrent control over Widick’s work. If it did, it would be liable for plaintiff’s injuries (although its indemnity rights against Widick would remain intact). Because resolution of this question was for the trier of fact, the trial court properly denied ets’s motion for summary disposition.
Affirmed.
Due to the trial court’s ruling on the summary disposition motion, this issue was not decided helow. Generally, we will not address issues which were not decided by the trial court. Joe Dwyer, Inc v Jaguar Cars, Inc, 167 Mich App 672, 685; 423 NW2d 311 (1988). But, we will do so if, as in this case, the issue is purely legal and necessary to the proper disposition of the case, State Farm Mutual Automobile Ins Co v C A Muer Corp, 154 Mich App 330, 334; 397 NW2d 299 (1986), or the interests of justice demand our consideration, see DeWitt Twp v Clinton Co, 113 Mich App 709, 713; 319 NW2d 2 (1982).
In the case at bar, plaintiffs complaint did not allege any personal fault on the part of ets. Its presence in the lawsuit was based only on its responsibility and liability for the negligent acts of Widick under the doctrine of respondeat superior.
We recognize that the trial court denied the motion on a different ground. However, this Court may affirm the decision of a trial court where the correct result was reached although for the wrong reason. Albro v Total Petroleum, Inc, 108 Mich App 1, 4; 310 NW2d 252 (1981), lv den 413 Mich 870 (1982). | [
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Sawyer, J.
The people appeal from an order of the circuit court dismissing the amended informations on two counts of the complaint against defendants. We affirm.
The prosecutor filed a nineteen-count complaint in district court charging defendants with one count of conspiracy to defraud Medicaid, MCL 400.606; MSA 16.614(6), one count of conspiracy to defraud a health care corporation, MCL 752.1005; MSA 28.547(105), five counts of billing the Medicaid program for services rendered by nonmedically-trained office staff, MCL 400.607; MSA 16.614(7), five counts of billing the Medicaid program for anesthesiology services not rendered, MCL 400.607; MSA 16.614(7), and five counts of billing Blue Cross and Blue Shield of Michigan for anesthesiology services not rendered, MCL 752.1003; MSA 28.547(103). Additionally, the following two counts were also charged:
In Bay City, Michigan, between the dates of February 1, 1986 and April 1, 1987, Defendants James D. Payne, D.O., P.C., and James D. Payne, D.O., using a common plan or scheme to defraud the State of Michigan, Medicaid program, knowingly made or presented, or caused to be made or presented, numerous false claims to employees of the State of Michigan, Medicaid Program, contrary to MCL 400.607(1).
(maximum penalty: 4 years and/or $50,000 fine)
In Bay City, Michigan, between the dates of February 1, 1986 and April 1, 1987, Defendants James D. Payne, D.O., P.C., and James D. Payne, D.O., using a common plan or scheme to defraud Blue Cross/Blue Shield of Michigan, a health care corporation, knowingly made or presented, or caused to be made or presented, numerous false claims to Blue Cross/Blue Shield of Michigan, contrary to MCL 752.1003(1).
(maximum penalty: 4 years and/or $50,000 fine).
The district court dismissed two of the original counts; however, the two above-quoted counts remained. Furthermore, only those two counts are relevant to this appeal.
The prosecutor subsequently amended the above-quoted counts by attaching a list of the alleged false claims upon which the informations were based. A total of 505 false claims were listed in support of the information. However, the trial court subsequently granted defendants’ motion to dismiss the amended informations for those two counts, concluding both that the charged crime, i.e., common plan or scheme, does not exist and, even if it did, the prosecutor would have had to establish the crimes at the preliminary examination.
On appeal, the people argue that they are permitted to aggregate separate violations of the law and charge one count alleging a "common plan or scheme.” As noted above, the common plan or scheme charged in the instant case was based upon the alleged 505 false claims submitted by defendants between November 3, 1986, and April 1, 1987.
Some courts have accepted the concept of aggregating separate or ongoing violations of a statute into one count, alleging a common plan or scheme. The federal courts have permitted this under the federal mail and wire fraud statutes, United States v Robinson, 651 F2d 1188 (CA 6, 1981), and for traveling in interstate commerce with the intent to carry on an unlawful gambling activity in violation of the Travel Act, United States v Alsobrook, 620 F2d 139 (CA 6, 1980). However, there do not appear to be any decisions by a Michigan court which have specifically addressed the propriety of aggregating separate violations into one count under a "common plan or scheme” theory. The case relied upon by the people, People v Lee, 134 Mich App 278; 351 NW2d 294 (1984), did not specifically consider the propriety of charging a defendant under a common plan or scheme theory. Rather, the Lee Court considered a res gestae issue in such a case.
While we are not prepared to say that there are no circumstances under which a defendant may be charged under a common plan or scheme count, we do not believe that the charging of defendants in the case at bar under the common plan or scheme counts is appropriate. MCL 400.607(1); MSA 16.614(7)(1) makes it illegal to submit a false claim under the Medicaid statutes. Similarly, MCL 752.1003(1); MSA 28.547(103X1) makes it illegal to submit a false claim to a health care, corporation or insurer. Because the statutes focus on submission of a false claim, each claim which is false constitutes a separate offense and must be tried as such.
The mere fact that a defendant may have committed multiple violations of a statute does not permit a charging under a common plan or scheme theory. As the Court noted in Alsobrook, supra at 142, there are limits on the ability to charge under a common plan or scheme theory and the prosecutor’s discretion to do so is limited by the potential dangers to the defendant, such as subjecting the defendant to double jeopardy, prejudicing him by evidentiary rulings during trial, and the possibility that he may be convicted on less than a unanimous verdict.
Turning to the case at bar, we believe that the dangers of adverse evidentiary rulings and conviction by less than a unanimous jury are very real in the instant case. That is, by charging defendants with one count under a common plan or scheme theory but supporting that count by reference to 505 allegedly false claims submitted by defendants, the people will be relieved of the burden of having to establish beyond a reasonable doubt that defendants submitted each of those 505 claims knowing them to be false, while at the same time avoiding the restrictions under MRE 404(b) on presenting evidence of other grimes, wrongs or bad acts. Similarly, it is conceivable that a jury presented with 505 allegedly false claims could convict defendants without all of the jurors agreeing on even one of the claims’ actually being false.
We believe that the language of the statute contemplates that each submission of a false claim constitutes a criminal act, as opposed to making some ongoing conduct criminal activity. Simply put, if the people wish to overwhelm the jury with evidence of 505 violations of the statutes against submitting false claims, it will have to charge 505 violations, have defendants bound over on 505 counts, and receive a unanimous verdict on each count.
For the above reasons, we conclude that the trial court was correct in dismissing the two counts based upon a common plan or scheme theory.
Affirmed.
18 USC 1341,1343.
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Per Curiam.
Plaintiff, J. Harvey Sedger, as assignee of Katana Resources, Ltd., appeals as of right from a lower court verdict of no cause of action with regard to his claim of breach of contract against defendant, Kinnco, Inc. We affirm.
In October of 1981, Katana was attempting to outfit an oil drilling project in Liberia. On October 28, Mr. Sedger of Katana contacted defendant in an attempt to locate eighteen drill collars for the project. At the time, the collars were in short supply and were needed immediately by Katana. Mr. Kinney, president of defendant Kinnco, Inc., said that they were no longer in the business of selling drill collars but that a mutual acquaintance, Mr. McMinn, president of Magnum Power Tongs, Inc., was present in defendant’s office and might be able to help. Mr. McMinn talked to Mr. Sedger. Later that day, through the efforts of McMinn, Kinney was able to locate the eighteen drill collars. Kinney immediately telephoned Mr. Sedger and advised him that he had been successful. During this conversation, agreement was reached on the price. Although there was conflicting testimony on the point, the trial court found that Mr. Sedger agreed that the drill collars would be stored at Magnum Power Tongs in Houston, Texas, and that Katana would pick them up for export to Liberia.
On October 29, 1981, defendant invoiced eighteen drill collars to Katana for $71,172. On November 3, 1981, Magnum Power Tongs, Inc., invoiced defendant $63,072 for the collars. On December 4, 1981, defendant received payment from Katana and on the following day defendant paid the Magnum Power Tongs invoice.
According to the findings of the trial court, Katana did nothing further regarding the collars until April, 1983. In the interim, Katana’s United States subsidiary had filed for reorganization in bankruptcy, but the schedules were silent regarding the collars. On April 29, 1983, Katana Resources, Ltd., the parent company, advised defendant that the drill collars could not be located. Apparently Magnum Power Tongs was no longer in business and Mr. McMinn had disappeared outside the country.
The trial court found that defendant had performed all the terms and conditions of the original agreement, that the sale contemplated a relatively short period for pickup by Katana, and that time was of the essence in the contract. Further it held that the risk of loss had passed to Katana. Finally, it found that defendant had been prejudiced by Katana’s dilatory conduct and it held that Katana’s claim was bárred pursuant to the equitable doctrine of laches. A judgment of no cause of action therefore was entered.
Katana’s assignee, Mr. Sedger, appeals, raising two issues. First, appellant argues that the trial court incorrectly applied the law controlling risk of loss. Appellant argües that the special sections of the law for bailees should have been applied. Second, appellant argues that his claim should not be barred by laches. For reasons different from those raised by appellant, we agree that the trial court was mistaken in its risk-of-loss analysis. However, the trial court did not clearly err in finding that Katana’s dilatory conduct had prejudiced defendant. Therefore we affirm the trial court’s holding that Katana’s claim was barred by the equitable doctrine of laches.
The trial court’s risk-of-loss analysis is incorrect in that it interpreted MCL 440.2510(3); MSA 19.2510(3) to shift the risk of loss permanently to Katana. The section in question provides:
(3) Where the buyer as to conforming goods already identified to the contract for sale repudiates or is otherwise in breach before the risk of their loss has passed to him, the seller may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as resting on the buyer for a commercially reasonable time. [MCL 440.2510(3); MSA 19.2510(3), emphasis added.]
The emphasized phrase indicates that the risk would have been effectively shifted to the buyer, Katana, only for a commercially reasonable period of time. After that time, the seller again would have been responsible.
Since the trial court based its conclusion upon MCL 440.2510(3); MSA 19.2510(3), it was unnecessary for the court to make findings which would otherwise be essential for a complete risk-of-loss analysis. In particular, the trial court did not explicitly make findings either regarding defendant’s status as a merchant or nonmerchant, MCL 440.2104(1); MSA 19.2104(1), or concerning whether Mr. McMinn or Magnum Power Tongs, Inc., was acting as Katana’s agent for purposes of determining receipt of the goods, MCL 440. 2509(3); MSA 2509(3). Moreover, the underlying reasons for application of this section of the code were not adequately identified.
The trial court’s holding on the second issue removes the necessity for considering a remand for further findings of fact. It is to that issue that we now turn.
The application of the doctrine of laches requires a passage of time combined with a change in condition which would make it inequitable to enforce the claim against the defendant. Lothian v Detroit, 414 Mich 160, 168-169; 324 NW2d 9 (1982). In determining whether a party is guilty of laches, each case must be determined on its own particular facts. Edgewood Park Ass’n v Pernar, 350 Mich 204, 209; 86 NW2d 269 (1957).
The opinion of the trial court stated:
The Court further finds that Kinnco was prejudiced by Katana’s negligent delay, and is not responsible for Katana’s dilatory conduct pursuant to the equitable doctrine of laches.
A review of the record discloses that a finding of prejudice to Kinnco is not clearly erroneous and thus will not be set aside. Keller v Paulos Land Co, 5 Mich App 246, 254; 146 NW2d 93 (1966), aff'd 381 Mich 355; 161 NW2d 569 (1968).
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Per Curiam.
This case comes to us on remand from our Supreme Court for consideration as on leave granted. 429 Mich 879 (1987). The sole issue concerns whether the trial court erred in denying third-party defendant Pompano Marine-Blue Lagoon, Inc.’s, motion to quash service for lack of personal jurisdiction.
A motion for summary disposition based on a lack of personal jurisdiction is resolved based on the pleadings and the evidential support submitted by the parties. MCR 2.116(C)(1) and (G)(5). The burden of establishing jurisdictional facts is on the plaintiff. Gardner v McDonagh, 124 Mich App 253; 333 NW2d 568 (1983); Avery v American Honda Motor Car Co, 120 Mich App 222, 225; 327 NW2d 447 (1982), lv den 417 Mich 1100.49 (1983).
Here, both Blue Lagoon and third-party plaintiff Jefferson Beach Marina, Inc., submitted affidavits in support of their respective positions on the motion. Taken with the pleadings, this record demonstrates that the cause of action arose from the sale of a boat in July, 1986, in Michigan. Plaintiff Donald Gooley was the purchaser, Jefferson Beach Marina was the seller, and Blue Lagoon was the supplier.
Plaintiff went to the Jefferson Beach Marina, a Michigan corporation located in Michigan, on July 11, 1986, in an effort to purchase a 1986 Wellcraft boat for delivery within one week. After the Jefferson Beach Marina informed plaintiff that it could not procure that specific model boat on such short notice, plaintiff told the marina that he had seen the boat at a boat show and that it could be obtained from the Blue Lagoon business located in Florida. Jefferson Beach Marina telephoned Blue Lagoon and made the purchase. Blue Lagoon shipped the boat to Jefferson Beach Marina, which then delivered it to plaintiff.
On August 10, 1986, plaintiff commenced a breach of warranty action against the Jefferson Beach Marina, alleging various product defects and missing equipment. Jefferson Beach Marina responded by filing a third-party complaint against Blue Lagoon, while Blue Lagoon moved for dismissal based on a lack of personal jurisdiction. The motion was supported by the affidavit of Rusty Bohrer, the president of Blue Lagoon. The affidavit indicated that the boat transaction was an isolated incident and that the "excessive majority” of Blue Lagoon’s business was localized in Florida. Bohrer averred that Blue Lagoon did not advertise or otherwise transact business in Michigan. Bohrer further averred that the watercraft in question never appeared at any boat show in Michigan and that the only reason the sale took place was because he was contacted with respect to the availability of a specific watercraft, which Blue Lagoon just happened to have in stock.
In opposition to the motion, Jefferson Beach Marina submitted an affidavit setting forth representations allegedly made by Blue Lagoon pertaining to the condition of the boat. No factual dispute was shown as to the jurisdictional facts averred by Bohrer. Jefferson Beach Marina primarily contended that jurisdiction was proper under the long-arm statute, MCL 600.715; MSA 27A.715, while Blue Lagoon primarily contended that jurisdiction was lacking under the Due Process Clause of US Const, Am XIV. The trial court found that jurisdiction was proper under the long-arm statute, citing Blue Lagoon’s agreement to sell the boat to a Michigan customer, Blue Lagoon’s arrangement to ship the boat to Michigan, and the lack of dispute on representations made by Blue Lagoon on the condition of the boat, as circumstances justifying the exercise of limited personal jurisdiction.
We hold that an exercise of limited personal jurisdiction under the facts of this case would violate the Due Process Clause of US Const, Am XIV, and, hence, find it unnecessary to consider the trial court’s conclusion that the statutory requirements for exercising limited personal jurisdiction were satisfied.
In Witbeck v Bill Cody’s Ranch Inn, 428 Mich 659, 666; 411 NW2d 439 (1987), our Supreme Court declined to consider issues pertaining to Michigan’s long-arm statute where the exercise of jurisdiction would violate US Const, Am XIV. The due process analysis applied was described as follows:
The Due Process Clause of the Fourteenth Amendment "does not contemplate that a state may make binding a judgment in personam against an individual or a corporate defendant with which the state has no contacts, ties, or relations.” Int’l Shoe Co v Washington, 326 US 310, 319; 66 S Ct 154; 90 L Ed 95; 161 ALR 1057 (1945). The "constitutional touchstone” is whether the defendant purposefully established "minimum contacts” in the forum state "such that the maintenance of the suit does not offend 'traditional notions of fair play and substantial justice.’ ” Id., 316. Burger King Corp v Rudzewicz, 471 US 462, 474; 105 S Ct 2174; 85 L Ed 2d 528 (1985).
The foreseeability of causing injury in another state is not a "sufficient benchmark” for exercising personal jurisdiction over an out-of-state defendant who has not consented to suit there. World-Wide Volkswagen Corp v Woodson, 444 US 286, 295; 100 5 Ct 559; 62 L Ed 2d 490 (1980); Khalaf v Bankers & Shippers Ins Co, 404 Mich 134, 145; 273 NW2d 811 (1978). Rather, "the foreseeability that is critical to due process analysis ... is that the defendant’s conduct and connection with the forum State are such that he should reasonably anticipate being haled into Court there.” World-Wide Volkswagen Corp, supra, 297. [428 Mich 666-667.]
The focus of this due process analysis is primarily on the defendant, rather than the plaintiff. Id., p 668. It is only when the purposeful availment threshold has been satisfied that it becomes necessary to decide whether an exercise of personal jurisdiction, if based on the defendant’s contacts and weighed in light of other factors, would comport with notions of fair play and substantial justice. Id., p 669.
The threshold requirement of purposeful availment was not established by Jefferson Beach Marina in this case. The only fact established was that Blue Lagoon made an isolated sale of a boat and shipped that boat to Michigan as a result of a customer’s desire to purchase a specific boat on short notice. Although it was certainly foreseeable that the customer’s injury would occur in Michigan, the "substantial connection” with the forum state required to exercise limited personal jurisdiction was lacking. Id., p 668. When attempting to establish limited personal jurisdiction based on single or occasional acts related to the forum, their nature and quality and the circumstances of their commission become significant factors. Id., p 682. As was stated in Khalaf v Bankers & Shippers Ins Co, 404 Mich 134, 156-157; 273 NW2d 811 (1978):
If causing foreseeable effects alone constituted purposeful availment, a Chicago grocery store supplying consumables, a haberdashery or boutique providing clothing, or a marina purveying boat supplies, to a person known to have a Michigan cottage, or a physician performing cosmetic surgery on him, could be subject to Michigan long-arm jurisdiction. In each instance the Chicago provider knows that the product or service is for use in Michigan, and that negligent performance will cause effects in Michigan. The enterprise is commercial, affecting the stream of commerce. But the nature of the provider’s business is nevertheless so clearly localized that proof of transactions with Michigan residents should not alone subject the provider to long-arm jurisdiction. The generating cause is not the provider’s desire to enlarge his business into Michigan but, rather, the Michigan customer’s desire to do business with the Chicago provider.
Based on Khalaf, we hold that the trial court erred when it found that the isolated sales transaction in this case was sufficient to subject Blue Lagoon to limited personal jurisdiction. Accordingly, the trial court’s opinion and order denying Blue Lagoon’s motion to quash service based on the lack of personal jurisdiction is reversed.
Reversed. | [
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Per Curiam.
Appellant, Michigan Department of Licensing and Regulation, appeals from a circuit court order requiring it to return records belonging to appellee, Cardinal-Franklin Collections, Ltd.
In November of 1986, Dr. Sidney H. Grossberg, executive director of Counseling Associates, Inc., filed a formal complaint against Cardinal-Franklin with the department. Grossberg complained that Counseling Associates, Inc., had not been able to obtain a status report on its accounts sent to Cardinal-Franklin for collection. As a result of this complaint, the department began to investigate Cardinal-Franklin.
In July of 1987, the department attempted to audit Cardinal-Franklin’s records pursuant to the statutory authority contained in MCL 339.910; MSA 18.425(910). These records were in the possession of Root Collection Service, Ltd., which was considering purchasing Cardinal-Franklin. Root turned these records over to the department. On July 30, 1987, the department filed a petition for the issuance of a subpoena duces tecum, which the circuit court granted. The subpoena provided that Cardinal-Franklin produce all records pertaining to all trust accounts held by the company and was not limited solely to the accounts of Counseling Associates, Inc.
Cardinal-Franklin filed a petition to quash the subpoena, arguing that the subpoena was over-broad and exceeded the department’s statutory authority to subpoena records. The lower court, on December 9, 1987, reasoned that, because the department was engaged in an investigation of Dr. Grossberg’s complaint, a subpoena requesting all of Cardinal-Franklin’s records was overbroad and had to be limited solely to records concerning the accounts of Counseling Associates, Inc. The court ordered the department to return all of Cardinal-Franklin’s records, with the exception of those pertaining to the accounts of Counseling Associates, Inc.
The department appealed this order to return the records, raising two issues on appeal.
i
The department first argues that the trial court erred by partially quashing its subpoena for all records pertaining to all trust accounts held by Cardinal-Franklin. We agree.
Sections 502 and 503 of the Occupational Code give the department authority to initiate and investigate complaints and to subpoena books, papers, or documents pertaining to the investigation. MCL 339.502; MSA 18.425(502) and MCL 339.503; MSA 18.425(503). However, the department’s investigative powers are not limited to investigation of allegations contained in a specific complaint. Section 910 of the Occupational Code provides:
(2) A collection agency shall preserve the books, accounts, and records within the state, and make them or true copies of them accessible to the department for at least 3 years after making the final payment entry on an account recorded in those books, accounts, and records.
(5) Collection agency books, accounts, and records shall be audited by the department on a biennial basis or when determined necessary by the director. [MCL 399.910(2), (5); MSA 18.425(910X2), (5).]
We note that §910 of the code does not place significant restrictions on the department’s ability to audit a collection agency’s books or the methods that are used in conducting such an audit. The department’s right to conduct an audit under § 910(5) should be broad when substantive allegations of a trust account violation are made by a proper party. When necessary, a collection agency’s books, accounts, and records should be released to the department for the purpose of conducting an audit authorized by § 910(5).
Here the department requested the subpoena pursuant to § 503 of the Occupational Code in order to conduct an investigation and audit of Cardinal-Franklin, as authorized by §§ 502 and 910(5) of the code. Although the subpoena may have been overbroad with regard to Dr. Gross-berg’s complaint, it was not overbroad with regard to an audit of Cardinal-Franklin’s books pursuant to § 910(5). The trial court erred by concluding that the department’s subpoena was overbroad.
ii
The department also argues that Cardinal-Franklin lacked standing to file a petition to quash the subpoena because it had been automatically dissolved as a corporation for failure to file annual reports. We disagree.
Failure to file an annual report for over two years from the date on which the report was due will result in automatic dissolution of a corporation. MCL 450.1922(1); MSA 21.200(922X1). However, subsequent compliance with statutory filing requirements will renew the previously dissolved corporate status. MCL 450.1925; MSA 21.200(925). In the case where a dissolved corporation regains corporate status upon subsequent compliance, "the rights of the corporation shall be the same as though a dissolution or revocation had not taken place, and all contracts entered into and other rights acquired during the interval shall be valid and enforceable.” MCL 450.1925; MSA 21.200(925).
Cardinal-Franklin had been automatically dissolved for failure to file annual reports at the time it filed its petition to quash the department’s subpoena. However, because of its subsequent compliance with the statutory requirements, this dissolution is treated as if it had not taken place, so Cardinal-Franklin’s standing to file the petition was never in question. Cardinal-Franklin had standing to file the petition to quash the department’s subpoena.
Reversed and remanded for further proceedings consistent with this opinion. | [
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L. F. Simmons, Jr., J.
Plaintiffs appeal as of right from Kalamazoo Circuit Judge C. H. Mullen’s opinion and order of October 14, 1986, granting defendant Borgess Medical Center’s motion to compel arbitration and denying plaintiffs’ motion for summary disposition. Plaintiffs also appeal from Kalamazoo Circuit Chief Judge Richard Ryan Lamb’s order denying plaintiffs’ motion to disqualify Judge Mullen.
On March 29, 1985, plaintiff Clarence McKain, accompanied by his fiancee Karen, presented himself at defendant Borgess Medical Center’s emergency room, complaining of right shoulder pain. Eventually, he was examined by defendant Dr. Charles Moore and the shoulder was x-rayed. Dr. Moore diagnosed a pulled muscle, immobilized Clarence’s right shoulder with a sling, and recommended that he not return to work for a couple of days. Sometime between the time he arrived at Borgess and his discharge, Clarence signed an arbitration agreement.
The following day, defendant Dr. John Copenhaver, employed by defendant Kalamazoo Radiology, P.C., reviewed the shoulder x-rays. He diagnosed a defect or possible malignancy in the lateral portion of Clarence’s right scapula and recommended that follow-up testing be done. No further action was taken and Clarence was not notified of Dr. Copenhaver’s diagnosis or recommendation.
Over two months later, Clarence returned to Borgess with continued shoulder complaints and was diagnosed as suffering from osteosarcoma, a generally malignant bone tumor.
On May 9, 1986, Clarence and Karen McKain, then married, filed suit in Kalamazoo Circuit Court alleging medical malpractice against the named defendants. Clarence died on May 20, 1986, as a result of the osteosarcoma.
Borgess moved to compel arbitration. Plaintiffs responded with a motion for summary disposition. Judge Mullen ruled that the arbitration agreement signed on March 29, 1985, was valid and binding. Accordingly, he granted Borgess’ motion to compel arbitration and denied plaintiffs’ motion for summary disposition.
Plaintiffs later learned that Judge Mullen sat on the Board of Directors of Bronson Methodist Hospital, another Kalamazoo hospital, as he had done for twenty-five years. Plaintiffs also learned that Dr. Copenhaver had hospital privileges at both Borgess and Bronson. Based upon this information, plaintiffs sought unsuccessfully to have Judge Mullen recuse himself. Plaintiffs then sought de novo review of Judge Mullen’s denial of the motion to disqualify. Chief Judge Lamb found that plaintiffs had presented him with no reason to justify the disqualification of Judge Mullen and denied plaintiffs’ motion to disqualify.
A stipulation and order was subsequently entered applying the order compelling arbitration to defendants Copenhaver and Kalamazoo Radiology.
On appeal, plaintiffs assert that the March 29, 1985, arbitration agreement is invalid. Plaintiffs argue that the arbitration agreement was not executed in strict compliance with the Medical Malpractice Arbitration Act (mmaa), MCL 600.5040 et seq.; MSA 27A.5040 et seq., that the agreement is an invalid unilateral contract, and that it is not binding because (1) Borgess’ representative failed to sign Clarence’s copy of the agreement, (2) plaintiffs never received a copy of the arbitration information booklet, (3) the agreement was offered and signed prior to Clarence’s receiving emergency medical care, and (4) the conduct giving rise to plaintiffs’ allegations of malpractice occurred after discharge and outside the scope of the specific language of the arbitration agreement.
Pursuant to MCR 2.613(C), an appellate court will set aside the findings of fact of a trial judge sitting without a jury when such findings are clearly erroneous. A finding is clearly erroneous when, although there is evidence to support it, the reviewing court is left with a definite and firm conviction that a mistake has been made. Tuttle v Dep’t of State Highways, 397 Mich 44, 46; 243 NW2d 244 (1976); Rozier v Dep’t of Public Health, 161 Mich App 591, 600; 411 NW2d 786 (1987).
There is strong public policy in this state favoring arbitration: arbitration clauses should be liberally construed with all doubts about the arbitrability of an issue to be resolved in favor of arbitration. However, an arbitration agreement under the mmaa cannot be legally valid unless it is in strict compliance with the arbitration statute. Ewald v Pontiac General Hospital, 121 Mich App 793, 797; 329 NW2d 495 (1982); Stefani v Bhagat, 149 Mich App 431, 434; 386 NW2d 203 (1986), lv den 426 Mich 856 (1986).
In McKinstry v Valley Obstetrics-Gynecology Clinic, PC, 428 Mich 167, 173; 405 NW2d 88 (1987), our Supreme Court held that the party pleading the existence of a valid arbitration agreement bears the initial burden of going forward with the evidence establishing that the arbitration agreement was executed in strict compliance with the mmaa. This statutory presumption of validity accrues when the defendant offers evidence of the following:
(1) A written arbitration agreement complying with the provisions of the mmaa has been signed by the person receiving health care or treatment or his legal representative;
(2) The arbitration agreement provides that the offer to arbitrate, if accepted by the patient, must be revocable in writing for sixty days;
(3) The arbitration agreement states, above the signature line in twelve-point boldface type: "this AGREEMENT TO ARBITRATE IS NOT A PREREQUISITE TO HEALTH CARE OR TREATMENT AND MAY BE REVOKED WITHIN 60 DAYS AFTER EXECUTION BY NOTIFICATION IN WRITING TO_”;
(4) The patient has been given a booklet detailing the specific provisions of the arbitration agreement;
(5) The patient has been given a copy of the arbitration agreement; and
(6) The offer to arbitrate did not precede the provision of emergency care. [McKinstry, supra, p 181.]
If a trial court determines that an arbitration agreement complies with the mmaa’s provisions, factors (l)-(3), and that other independent evidence demonstrates compliance with factors (4)-(6), then the agreement to arbitrate must be presumed valid. Once the presumption of validity has been established, it will stand unless rebutted by evidence that either demonstrates noncompliance with the statutory requirements or establishes one or more defenses, such as coercion, mistake, duress or fraud. McKinstry, supra, p 181.
To sustain its ultimate burden of persuasion, a defendant may use evidence of habit or routine used by a hospital in admitting its patients. McKinstry, supra, pp 181-182.
We have reviewed Clarence’s and Borgess’ copies of the arbitration agreement in view of the statutory requirements and find that its content and form comply with the statute. Further, the testi mony of Debra Howe, the control clerk for Borgess’ emergency department on the date of Clarence’s treatment, concerning Borgess’ custom and habit of providing each patient an information booklet and giving patients treated in the emergency room an arbitration agreement only after treatment had been rendered met McKinstry factors (4)-(6). McKinstry, supra, pp 181-182. On these facts, defendants have carried their burden, and the agreement is presumed valid.
The issue now becomes whether plaintiffs presented evidence that demonstrates noncompliance with McKinstry factors (4)-(6), and thereby rebutted the presumption of validity established by defendants.
Plaintiffs assert that Clarence was never provided with an arbitration information booklet as mandated by MCL 600.5042(7); MSA 27A.5042(7); MCL 600.5041(6); MSA 27A.5041(6). The trial court made no express finding on this issue, although finding that the mmaa had been complied with.
In this regard, Karen testified that neither she nor Clarence received a copy of the arbitration information booklet. On the other hand, Howe testified that in March, 1985, she customarily gave every patient, except those arriving by ambulance, a copy of the information booklet at the same time that she prepared the patient’s chart and obtained the necessary treatment and insurance authorizations. Howe also testified that an emergency room nurse provided the arbitration agreement to each patient after treatment and that the patient then came to Howe’s desk and signed the agreement. Howe added her signature, the date and the time of signing. The patient was given the yellow copy, but only after Howe signed the agreement.
However, plaintiffs severely damaged Howe’s credibility by introducing the yellow patient copy of the arbitration agreement Clarence received on March 29, 1985. The document does not bear Howe’s signature, the date or time. However, Borgess’ copy does. Despite her testimony, Howe obviously did not follow her usual custom and habit on the evening of March 29, 1985, and admitted as much to the trial court.
On these facts, a finding that Borgess provided Clarence with a booklet is clearly erroneous. Therefore, the trial court’s finding that the statute had been complied with was in error and the order compelling arbitration is reversed.
Plaintiffs next argue that, although Clarence received emergency treatment, Borgess presented the arbitration agreement and Clarence signed it prior to receiving treatment, contrary to the MMAA.
MCL 600.5042(1); MSA 27A.5042(1), the "emergency exception,” provides:
A person who receives health care in a hospital may execute an agreement to arbitrate a dispute, controversy, or issue arising out of health care or treatment rendered by the hospital. A person receiving emergency health care or treatment may be offered the option to arbitrate but shall be offered the option after the emergency care or treatment is completed.
The trial court ruled that Clarence had been given the arbitration agreement after treatment based upon the following rationale:
MCL 600.5042 states that "a person receiving emergency health care or treatment may be offered the option to arbitrate but shall be offered the option after the emergency or treatment is completed.” . . . Therefore, the option was offered after the treatment was completed. The plaintiff could have rejected arbitration for 60 days. The Court finds no problem with compliance with MCL 600.5042.
Application of this reasoning would result in deeming valid every arbitration agreement signed upon entry to a hospital and prior to the receipt of emergency medical treatment which is not revoked within the statutory period. This interpretation nullifies the effect of the express language of the statute.
The rules of statutory construction were concisely stated in Nicholas v Michigan State Employees Retirement Bd, 144 Mich App 70, 74; 372 NW2d 685 (1985):
Briefly stated the rules are: (1) when a statute is unambiguous, further construction is to be avoided; (2) if an ambiguity exists, the intent of the Legislature must be given effect; (3) a construction which best accomplishes the statute’s purpose is favored; (4) statutes are to be interpreted as a whole and construed so as to give effect to each provision; (5) specific words in a statute are given their ordinary meaning unless a different interpretation is indicated; and (6) respectful consideration is to be given to the construction of a statute used by those charged with its application.
Because the phrase "emergency health care or treatment” is ambiguous, the statute must be construed to give effect to the Legislature’s intent. The question to be answered is whether emergency health care or treatment is to be defined so as to include the mere act of walking into an emergency room to seek health care or, rather, by the nature of the medical care or treatment necessary or believed necessary.
In Pipper v DiMusto, 88 Mich App 743, 745-746; 279 NW2d 542 (1979), a panel of this Court consid ered the nature of a patient’s illness or injury in determining whether the emergency exception was applicable. Our Supreme Court engaged in such an analysis in McKinstry, supra, p 189.
The Legislature likely intended the emergency exception to prevent the endangering of life or health of a patient caused by the delay that would result if a seriously or critically ill or injured patient was required, prior to treatment, to read and consider the offered arbitration agreement. Therefore, we construe "emergency health care or treatment” to mean any care or treatment urgently warranted by circumstances under which such a delay would endanger the life or health of a patient.
Here, delaying Clarence’s treatment for the length of time necessary for him to read a presented arbitration agreement and to decide whether to accept or reject it would not have endangered his life or health. Clarence did not receive emergency medical care treatment within the meaning of the mmaa and the emergency exception does not apply here. Therefore, it is irrelevant whether Clarence signed the agreement upon entry to the emergency room or upon discharge and plaintiffs’ argument in this regard must fail.
Plaintiffs also claim that, because Borgess did not give Clarence a copy of the agreement bearing Borgess’ agent’s signature, Borgess did not communicate its acceptance of Clarence’s offer to arbitrate and, therefore, no binding contract came into existence. The trial court disagreed, concluding that the pertinent parties had reached a meeting of the minds. We agree with the trial court.
Contract principles apply to arbitration agreements. Horn v Cooke, 118 Mich App 740, 744; 325 NW2d 558 (1982). A true meeting of the minds is required for a valid arbitration agreement, just as in any contract. Mariani v Holloway, 157 Mich App 570, 574; 403 NW2d 463 (1986), lv den 428 Mich 870 (1987). A meeting of the minds is judged by an objective standard, looking to the express words of the parties and their visible acts. Siegel v Spinney, 141 Mich App 346, 350; 367 NW2d 860 (1985).
Here, Borgess presented Clarence with the arbitration agreement, which constituted an offer of the option to arbitrate. Clarence was free to accept or reject the offer. Karen read the agreement and explained its contents to Clarence, as did a member of the hospital staff. Clarence understood the agreement and signed it voluntarily. His signature constituted an acceptance of Borgess’ offer. At that moment, there existed a meeting of the minds and a valid and enforceable contract. No error occurred.
Finally, plaintiffs argue that the alleged malpractice that serves as the gravamen of their complaint arose post-hospital discharge and, therefore, is not covered by the arbitration agreement. The trial court ruled otherwise on the ground that all of plaintiffs’ claims of negligence arose from the mistreatment or misdiagnosis arising from the x-rays taken during Clarence’s first visit.
The arbitration agreement Clarence signed reads:
This agreement applies to my care during this hospital stay and/or emergency room visit and includes the hospital, its employees and its independent staff doctors and consultants who have also agreed to arbitrate.
The language of the agreement is clear and unambiguous. When the language of a contract is clear and unambiguous, the intent of the parties will be ascertained according to its plain sense and meaning. New Amsterdam Casualty Co v Sokolowski, 374 Mich 340, 342; 132 NW2d 66 (1965); Wilson v Home Owners Mutual Ins Co, 148 Mich App 485, 490; 384 NW2d 807 (1986), lv den 425 Mich 876 (1986). Given its plain meaning and the fact that the word "this” is printed in capital letters and in bold-face type, we must conclude that the agreement was intended to include any malpractice committed while Clarence was on the hospital premises and receiving treatment. Medical action taken or not taken subsequent to Clarence’s discharge is not covered by the agreement. X-rays were taken on March 29, 1985, during Clarence’s emergency room visit, and most of plaintiffs’ allegations of malpractice arise out of the subsequent readings of those x-rays on March 30, 1985, and actions taken or not taken thereafter.
While this Court notes that other language contained in Borgess’ arbitration agreement booklet states that the arbitration agreement covers claims arising from care and treatment rendered, this language does not appear on the form Clarence signed. Borgess may not now assert that the booklet language is binding where that language was not included in the text of the agreement and where, in any event, Borgess has not shown that it gave a booklet to Clarence. Accordingly, we are left with a firm conviction that the trial court erred in ruling that the arbitration agreement was binding with regard to the defendants’ actions taken subsequent to the treatment rendered Clarence on March 29, 1985.
Plaintiffs’ second claim on appeal is that Judge Mullen should have been disqualified from presiding in this case pursuant to MCR 2.003(B)(1) and (2). This Court disagrees. Where a party relies on alleged prejudice or bias of the trial judge in seeking his disqualification, the prejudice or bias must be shown. MacDonald v Ford Motor Co, 117 Mich App 538, 542; 324 NW2d 489 (1982), lv den 417 Mich 970 (1983).
Although Judge Mullen indicated that he had in fact sat on Bronson’s Board of Directors for some time, it is clear that he is not a party interested in the instant litigation. Borgess is defending this suit, not Bronson, and Judge Mullen has no direct interest in the outcome of this suit against Borgess. Further, plaintiffs have shown no relationship between Borgess and Judge Mullen, and have presented no evidence that Judge Mullen harbored any bias or prejudice or that he let such prejudice override his responsibilities in providing a fair forum for the determination of the issues before him. Clearly, neither Judge Mullen nor Judge Lamb erred in denying plaintiffs’ motion to disqualify.
The order denying disqualification of Judge Mullen is affirmed. That part of the order compelling arbitration is reversed, and this case remanded to the trial court for further proceedings consistent with this opinion.
Affirmed in part, reversed in part and remanded. | [
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ON REMAND
Before: Kelly, P.J., and Hood and Sullivan, JJ.
Per Curiam.
By order of remand from our Supreme Court, 430 Mich 894 (1988), this case is before us for reconsideration in light of People v Allen, 429 Mich 558; 420 NW2d 499 (1988). Our original opinion appears at 166 Mich App 33; 420 NW2d 167 (1988).
Defendant was convicted of feloniously receiving and concealing stolen property worth over $100, MCL 750.535; MSA 28.803, specifically, a motorcycle. Defendant testified at trial that he had purchased the cycle and did not know it was stolen at the time of the sale. In our earlier opinion we affirmed the trial court’s decision to admit for purposes of impeachment evidence of an eight-year-old conviction for receiving and concealing stolen property worth less that $100.
In light of the clarified balancing test enunciated in Allen, supra, we find that Judge Qppliger was correct in his dissenting opinion in our original opinion that the prejudicial effect outweighed the probative value. We therefore reverse on the impeachment issue alone and remand for a new trial. In all other respects our prior decision remains the same.
Reversed and remanded. | [
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Per Curiam,
Plaintiffs appeal as of right from the trial court’s order granting summary disposition to defendant under MCR 2.116(C)(10). We affirm.
This case involves defendant insurance company’s duty to defend plaintiffs, their insureds, under a farmowners insurance policy issued to plaintiffs by defendant. Originally, the Village of Mendon filed a complaint against plaintiffs alleging that their hog farm, immediately adjacent to Mendon, was a public nuisance. Mendon sought abatement by permanent injunction along with attorney fees and costs. Plaintiffs timely tendered defense of the suit to defendant, which refused to defend or indemnify plaintiffs because the action sought only injunctive relief, not money damages. Plaintiffs were obliged to fund their own defense. Following a bench trial, an opinion was issued granting a permanent injunction and costs to Mendon. Plaintiffs then sued defendant, alleging defendant had breached its duty to defend plaintiffs under the insurance contract. Cross-motions for summary disposition were brought under MCR 2.116(0(10) and defendant’s motion was granted.
The sole issue on appeal is whether the trial court erred in granting summary disposition on the grounds that injunctive relief was not a form of "damages” within the meaning of the insurance policy, which would obligate defendant to defend the suit brought against plaintiffs.
Summary disposition pursuant to MCR 2.116(0(10) is proper only if there is no genuine issue as to any material fact and the party in whose favor judgment is granted is entitled to judgment as a matter of law. Hagerl v Auto Club Group Ins Co, 157 Mich App 684, 686-687; 403 NW2d 197 (1987). A motion based on MCR 2.116(0(10) tests the factual support for the claim. Morganroth v Whitall, 161 Mich App 785, 788; 411 NW2d 859 (1987). In ruling on the motion, the court must consider the pleadings, affidavits, depositions and other documentary evidence, and must give the benefit of any reasonable doubt to the nonmoving party, being liberal in finding a genuine issue of material fact. Id. Summary disposition is appropriate only if the court is satisfied that it is impossible for the nonmoving party’s claim to be supported at trial because of a deficiency which cannot be overcome. Id.
Construction of an insurance contract containing unambiguous language is a question of law for the court. Auto Club Ins Ass’n v Page, 162 Mich App 664, 667; 413 NW2d 472 (1987). Whether an ambiguity exists in an insurance contract is a question for the court which may consider extrinsic facts. Mayer v Auto-Owners Ins Co, 127 Mich App 23; 338 NW2d 407 (1983). The language of an insurance contract will be construed with reference to the party’s relations and the type of property insured. Boyd v General Motors Acceptance Corp, 162 Mich App 446, 452; 413 NW2d 683 (1987). We look to the language used and the context to determine the purpose sought to be achieved. Id. The contract language will be given its ordinary and plain meaning, rather than a technical or a strained construction. Id.
In the present case, the farmowners insurance policy provided in relevant part:
SECTION II
1. Coverages
If Coverages a, b and c are shown under Section ii in the declarations, the following coverages are afforded:
Coverage a — personal liability (public and employer’s)
This Company agrees to pay on behalf of the insured all sums which the Insured shall become legally obligated to pay as damages because of bodily injury or property damage, to which this insurance applies, caused by an occurrence. This Company shall have the right and duty, at its own expense, to defend any suit against the Insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent, but may make such investigation and settlement of any claim or suit as it deems expedient.
1. COVERAGES — PERSONAL INJURY LIABILITY
The Company will pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages because of injury (herein called "personal injury”) sustained by any person or organization and arising out of one or more of the following offenses:
d. contamination or pollution arising out of the accidental discharge, dispersal, release, or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material, or other irritants, contaminants, or pollutants into or upon land, the atmosphere, or any watercourse or body of water;
. . . and the Company shall have the right and duty to defend any suit against the Insured seeking damages on account of such personal injury
In addition, § n, coverage A in the insurance policy defines "occurrence” as "an accident . . . which results ... in bodily injury or property damage.” We find the language of the insurance contract to be clear and unambiguous.
First, the suit by Mendon alleged that the operation of plaintiffs’ hog feedlot resulted in obnoxious odors, air contamination, large numbers of flies and other disease-carrying insects, and the violation of zoning and environmental laws. Mendon sought abatement of the public nuisance. Absent any allegation that the violations or conditions were accidental in nature, there has been no "occurrence” which would obligate defendant to defend their insured. See American States Ins Co v Maryland Casualty Co, 587 F Supp 1549 (ED Mich, 1984).
Second, we find the word "damages” as used in the policy to be clear and unambiguous. The policy limits the insured’s liability to "all sums which the insured shall become legally obligated to pay as damages.” Again, the insured’s duty to defend extended to "any suit against the insured seeking damages on account of such bodily injury or property damage.” We note that several jurisdictions have held, under clauses similar to the ones at issue here, that an insurance company has no duty to defend when the action seeks only injunctive relief. See United States Aviex Co v Travelers Ins Co, 125 Mich App 579, 588-589; 336 NW2d 838 (1983). Here, the suit by Mendon sought an abatement of a nuisance and thus injunctive relief only. The suit did not allege injury to Mendon’s property which could, in any way, have required plaintiffs to pay money damages to Mendon. Thus, this case is easily distinguished from United States Aviex Co, supra. We conclude that the word "damages,” given its ordinary and plain meaning, cannot encompass strictly injunctive action.
We also note that a complaint seeking costs or attorney fees is not a complaint seeking money damages. See Bd of Co Rd Comm’rs of Larimer Co v Guarantee Ins Co, 90 FRD 405, 407 (D Colo, 1981).
The trial court properly entered summary disposition in favor of defendant.
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Kelly, J.
In these consolidated cases, both the Second Injury Fund and Asplundh Tree Expert Company, along with its insurer, Aetna Casualty & Surety Company, appeal the decision of the Workers’ Compensation Appeal Board that reversed the finding of the hearing referee. The wcab concluded that plaintiff was totally and permanently disabled on the basis of incurable insanity as of January 29,1970.
i
The underlying facts of this case are contained in large part in Page v Asplundh Tree Expert Co, 91 Mich App 408; 283 NW2d 758 (1979). Plaintiff sustained a work-related injury in 1959 while working for Asplundh. Asplundh’s insurer subsequently voluntarily paid five hundred weeks of compensation benefits, which period ended January 9, 1969. Thereafter, in February, 1970, plaintiff petitioned for a hearing, alleging disabilities that included a claim of "imbecility or feeble minded.” At the hearing on this petition in 1971, the determination was that plaintiff had failed to sustain his burden of showing that he was totally and permanently disabled.
In 1972 plaintiff appealed that decision to the wcab. However, because plaintiff failed to provide a transcript of the hearing before the referee, the wcab dismissed plaintiff’s claim.
Plaintiff filed a new petition in 1976, alleging disability that included
loss of industrial use of both legs; traumatic shock with onset of psychogenic dysfunction; total permanent disability. [Id. at 411.]
The referee granted a motion to dismiss made by Aetna and the Second Injury Fund, concluding the matter had been fully tried previously and therefore the rule of res judicata applied. On appeal to the wcab, the wcab agreed. Plaintiffs appeal to this Court followed and a panel of this Court found that "the application of res judicata principles to the present case was premature” and remanded to the wcab "for a determination of what was at issue and decided in the 1971 hearing”. Id. at 414.
The wcab subsequently determined that only the issues of plaintiff’s alleged imbecility and loss of the industrial use of his legs were litigated at the 1971 hearing. The wcab concluded that, with regard to the issue of plaintiff’s insanity, there was no earlier claim or decision. Therefore, the wcab decided that the doctrine of res judicata did not apply. The wcab then remanded this case back to the bureau.
Following hearings in 1982, and the admission of the deposition testimony of medical experts, the referee found that plaintiff had failed to sustain his burden of proof that he suffered from (1) a change in condition that would establish that plaintiff had suffered a loss of the industrial use of his legs, (2) a change in condition that would establish that plaintiff is entitled to total and permanent benefits by reason of imbecility, or (3) incurable insanity, that would entitle plaintiff to total and permanent benefits. However, plaintiff appealed that decision to the wcab, which reversed the referee and found plaintiff incurably insane as of January 29, 1970.
This decision was based on facts gleaned both from the 1971 hearing and from evidence presented at the hearings held and deposition testimony taken after the wcab’s determination that the issue of plaintiff’s insanity had not been litigated in 1971. The decision was also based on the legal conclusion that the law of the case doctrine prevailed over any subsequent decision concerning a broad application of res judicata in workers’ compensation cases.
Defendants appeal this decision of the wcab by leave granted.
ii
Defendants argue on appeal that where plaintiff became totally and permanently disabled by reason of insanity on January 29, 1970, and therefore could have presented his insanity claim at the first hearing in 1971, the wcab made an error of law in refusing to apply the doctrine of res judicata as a bar to plaintiffs subsequent claim of insanity. At the time this case was remanded back to the wcab by this Court, the remand was made in order to determine whether the issue of plaintiffs incurable insanity had been raised or argued at the 1971 hearing.
In this Court’s earlier opinion, the panel relied on the narrow interpretation of the res judicata rule that, in workers’ compensation cases, "res judicata applies only where the precise issue of fact or law under consideration in one case was at issue and decided in prior proceedings.” Page, supra at 413. Subsequent to the remand, but prior to the decision of the bureau and final decision of the wcab here, Gose v Monroe Auto Equipment Co, 409 Mich 147; 294 NW2d 165 (1980), was decided by the Supreme Court. In that decision the Supreme Court adopted the broad rule of res judicata for workers’ compensation claims. That is: the doctrine of res judicata bars a second claim for compensation if the second claim arises out of the same transaction and the claimant could have brought the claim in the first proceeding, but did not. Id. at 160-161. Defendants claim the wcab made an error of law when it declined to apply this new rule in its 1987 opinion to the facts of this case.
Review of wcab decisions is limited to questions of law and, in the absence of fraud, is restricted to whether there is any competent evidence to support the findings of fact. Gilroy v General Motors Corp, 166 Mich App 609, 612; 420 NW2d 829 (1987).
Here, defendants urged the wcab that the broad rule of res judicata should apply, barring plaintiff from raising his claim of incurable insanity. The wcab was also faced with plaintiff’s counter argument that urged application of the law of the case doctrine. That is: since a panel of this Court, after determining that the narrow rule of res judicata applied, remanded to the wcab to determine whether incurable insanity had been raised or pled in 1971, the law of the case doctrine (that once an appellate court has ruled on a legal question and remanded, that legal question cannot be requestioned or redetermined on a subsequent appeal) prohibited subsequent application of the broad rule of res judicata to these facts.
The wcab opted to adopt the plaintiff’s reasoning, apply the law of the case doctrine, and determine whether plaintiff had stated a claim for benefits based on incurable insanity. This conclusion was reached despite the wcab’s determination that but for the law of the case doctrine "we would find that plaintiff’s claims would be barred by res judicata under Gose, supra, or the absence of a sufficiently great change of condition [Hlady v Wolverine Bolt Co, 393 Mich 368; 224 NW2d 856 (1975)].”
It is this legal determination that both defendants challenge. We disagree with defendants’ arguments and hold that the wcab was correct in applying the law of the case doctrine in declining to adopt the broad rule of res judicata.
In CAF Investment Co v Saginaw Twp, 410 Mich 428, 454; 302 NW2d 164 (1981), the rule of law of the case was stated as follows:
|T]f an appellate court has passed on a legal question and remanded the case for further proceedings, the legal questions thus determined by the appellate court will not be differently determined on a subsequent appeal in the same case where the facts remain materially the same.
In Bauer v Garden City, 163 Mich App 562, 569; 414 NW2d 891 (1987), this Court was presented with a problem similar to that presented here. After specifically stating that governmental immunity did not apply, a panel of this Court reversed the trial court’s grant of summary judgment on an independent issue (natural accumulation of snow and ice in a city-owned parking lot), and remanded. See Bauer v Garden City, 139 Mich App 354; 362 NW2d 280 (1984). Ross v Consumers Power Co (On Rehearing), 420 Mich 567; 363 NW2d 641 (1984), was subsequently decided and defendant Garden City moved for summary disposition, claiming governmental immunity. In Bauer, despite the fact that this Court termed the earlier determination, that governmental immunity did not apply, obiter dicta (163 Mich App 570), this Court still applied the doctrine of law of the case. On that basis we concluded that defendant was barred from relitigating the issue of governmental immunity. Despite finding its previous statements on the issue obiter dicta, this Court stated that the litigants had an opportunity to argue the issue and have it decided. The Bauer Court concluded: "If an issue is properly before this Court, the Court’s decision on the question is binding on the lower court and on any later panels which hear the case, under the doctrine of the law of the case.” Id. at 571. This conclusion was reached despite the intervening contrary legal conclusion reached by the Supreme Court in Ross.
Similarly, here the issue of res judicata was clearly before this Court when this case was first here in 1979. This Court clearly held that the narrow rule of res judicata applied. Neither defendant employer nor defendant Second Injury Fund chose to appeal that decision to the Supreme Court. This Court’s decision on the issue of res judicata was then binding on the wcab and also on this subsequent panel. We therefore reject defendants’ claim that the wcab erred in applying the narrow rule of res judicata, as directed by the earlier reasoning of another panel of this Court, where the facts and litigants remained the same.
hi
The next issue raised by defendant Second Injury Fund is that the wcab erred, as a matter of law, in finding plaintiff totally and permanently disabled by reason of incurable insanity. The fund specifically argues that the record lacks evidence to support this finding. This claim is without merit.
The fund correctly points out that the findings of the wcab are conclusive if supported by any competent evidence in the record. Gilroy, supra at 612. In Redfern v Sparks-Withington Co, 403 Mich 63, 85; 268 NW2d 28 (1978), relied on by the fund, the Supreme Court defined incurable insanity, for purposes of being classified as totally and permanently disabled, as a severe social dysfunction. A severe social dysfunction is one that "affects the quality of the worker’s personal, nonvocational life and significant activity comparable to the loss of two members or sight of both eyes, and is incurable if it is unlikely that normal functioning can be restored.” Id. at 85.
At the hearing, plaintiff presented his own testimony and the depositions of several medical experts. Included in this expert testimony were statements that plaintiff was a "simple schyzophrenic,” and that he suffered from "an obvious chronic schyzophrenic reaction.” This evidence along with plaintiff’s own testimony provided competent evidence to support the wcab’s finding.
On this point, defendant Asplundh also argues that it was error to find plaintiff incurably insane since no findings were made to support a conclusion that plaintiff’s insanity was incurable. This claim is also without merit. The wcab specifically found that the evidence presented was "sufficient to support a finding of incurable insanity.”
IV
Defendant fund next argues that the wcab’s determination that plaintiff was totally and permanently disabled by reason of incurable insanity as of January 29, 1970, denied the fund due process of law. The fund’s basis for this contention is the wcab’s reliance on proofs presented at the 1971 hearing to establish the date of and the claim for total and permanent disability. The fund argues that by using this evidence the fund was denied its due process right to present evidence on the issue of the date of permanent disability. Its argument is simply that due process of law and fundamental fairness require that before a finding is made on an issue of fact which involves fund liability, the fund must be permitted an opportunity to be heard and to present evidence on the issue.
It must first be noted that the fund was represented at the 1971 hearings where it was determined that plaintiff failed to sustain his burden of proof in his claims of imbecility and loss of the industrial use of his legs. The fund, just like defendant Asplundh, was able to present its position and to protect its interests. It appears that the fund is actually challenging the use of evidence presented at the 1971 hearing as a basis for the wcab’s conclusion in 1987 that plaintiff was totally and permanently disabled by reason of incurable insanity.
In its 1987 opinion the wcab stated:
In this case, we accept that the proofs adduced in the 1971 hearing, primarily the testimony of Dr. Forrer, are sufficient to support a finding of incurable insanity and find as fact that the plaintiff has proved that he is totally and permanently disabled on this basis, under Redfern, supra.
We are bolstered in this conclusion by the later testimony of Dr. Forrer, finding deterioration in the plaintiff’s condition on examination in 1981, as well as the opinion testimony of psychiatrists Klarman and Rubenfaer and psychologist Gold-stein. The plaintiff’s mental status appeared to be consistent for the exams of all these experts. His history to each was consistent and comported closely to his testimony at trial.
We therefore, affirm Judge Condino’s ruling that plaintiff has failed to prove a change of condition relative to his industrial loss of use of legs and imbecility claims. We reverse the determination of Judge Condino that the plaintiff has failed to prove by a preponderance of the evidence that he is psychiatrically disabled to the point of being "incurably insane” and order total and permanent disability benefits as of January 29, 1970 until further order.
Defendant Asplundh challenges the determination of the wcab that plaintiff was incurably insane as of January 29, 1970. Defendant Asplundh also challenges the use of evidence from the 1971 hearing as a basis for finding plaintiff incurably insane. Asplundh argues that if evidence of incurable insanity was raised in 1971, then, even under the narrow interpretation of res judicata, plaintiff was prohibited from bringing his claim since he was not arguing a change in circumstance. See Hlady, supra.
In its 1987 opinion the wcab stated in a footnote:
Although the 1980 Appeal Board opinion found that plaintiff had not specifically alleged incurable insanity in his 1969 petition, we are not entirely convinced that this claim was not litigated in the 1971 hearing. Dr. Forrer’s 1971 testimony was replete with reference to the plaintif s schizophrenia, delusions, and paranoid ideation. Presuming that the law of the case doctrine applies to prior Board orders, under that doctrine discussed earlier, we are constrained to find that this unappealed order is final.
Asplundh relies on this statement, and the previously quoted statement from the 1987 wcab decision, for its argument that the issue of incurable insanity was raised in 1971 and therefore even under the narrow rule of res judicata, plaintiff was barred from relitigating this issue. In response to the wcab’s statement that the law of the case doctrine applied to the wcab’s 1980 opinion because that order was an unappealed final order and therefore regardless of whether incurable insanity was raised in 1971 defendants were now barred from challenging the 1980 wcab opinion, Asplundh contends the wcab made an error of law requiring reversal.
Asplundh is correct in its assertion that the wcab made an error of law in stating that the order of the wcab that sent this case back to the bureau was an unappealed final order and thus law of the case. Since the 1980 opinion was not a final determination, but merely a remand to the bureau for a hearing, it was not a final decision and not appealable to this Court. See Boggetta v Burroughs Corp, 368 Mich 600; 118 NW2d 980 (1962), and MCL 418.861; MSA 17.237(861). We agree that an error of law was made by the wcab, and that this case should be remanded for a determination of whether plaintiff, following the 1980 remand from the wcab to the bureau, submitted sufficient proofs to sustain his burden for his claim of incurable insanity. Because we are remanding this case back to the wcab for decision based on the proofs presented subsequent to the wcab’s 1980 order, the fund’s due process challenge is adequately answered.
v
Asplundh also challenges the finding of the wcab that plaintiffs wife was in fact a dependent. Mindful of the standard of review for such decisions, we find no error in the wcab’s decision on this point. Our review of the record reveals evidence from which a finding of dependency can be inferred. The couple had been married for over thirty years. The wife’s only occupation outside the home had been part-time jobs and at the time of the hearing she was collecting less than $100 per month in social security.
vi
Asplundh finally claims that the one-year back rule applies, limiting its liability. That rule provides in pertinent part:
If payment of compensation is made, other than medical expenses, and an application for further compensation is later filed with the bureau, no compensation shall be ordered for any period which is more than 1 year prior to the date of filing of such application. [MCL 418.833(1); MSA 17.237(833X1)]
Here, plaintiff received general disability payments from 1959 to 1969. Plaintiff then sought total and permanent disability payments for (1) the loss of the industrial use of his legs, (2) imbecility, and (3) incurable insanity. In Martin v Somberg-Berlin Metals Co, 407 Mich 737, 741; 288 NW2d 574 (1980), the Supreme Court held:
If compensation is paid for a particular disability (general on account of back injury) and subsequently another disability is determined (total and permanent on account of loss of industrial use of legs) compensation for the second disability is not "further compensation” subject to the one-year-back rule but is a separate "category” not so limited.
Because the facts in Martin concerned an appeal by the Second Injury Fund only, Asplundh argues that Martin’s holding is only applicable to the fund. We find no authority for this limitation. Plaintiffs claim here is not for further compensation requiring application of the one-year-back rule. Plaintiffs claim is for total and permanent disability based on incurable insanity, a separate category, not limited by his earlier voluntary award of general compensation.
Reversed and remanded. | [
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Per Curiam.
Defendant, Wayne Richard Wilson, pled guilty to criminal sexual conduct, second degree, in violation of MCL 750.520c; MSA 28.788(3). Some time after being sentenced to serve not less than ten years nor more than fifteen years in prison, defendant filed a delayed motion for resentencing, which was granted. Upon resentencing, defendant was sentenced to serve not less than seven and one-half years nor more than fifteen years in prison. He now appeals as of right.
On appeal, defendant claims that the trial court failed to articulate all of its reasons for deviation from the guidelines and, thus, violated the rule of People v Fleming, 428 Mich 408, 428; 410 NW2d 266 (1987). We do not agree. On resentencing, the trial judge expressed his reasons for deviating from the guidelines and imposing a more severe sentence upon defendant than called for in the guidelines. In the Sentencing Information Report, the trial judge wrote in his reasons for deviating in a shorter form than that articulated on the record to defendant. We do not believe that this constitutes error under Fleming.
Second, defendant claims that the so-called victim impact statement should not have been considered nor placed in the file. The basis for defendant’s argument is that while the within offense was committed in July or August of 1983, the Crime Victim’s Rights Act, MCL 780.751 et seq.; MSA 28.1287(751) et seq., was not enacted until 1985 and provided that it would only apply to "crimes committed on or after the effective date” of the act. However, the fact is that defendant did not at any time object to the impact statement in the trial court proceedings and, in fact, did not raise any objection at the time of sentencing.
We do not believe that prior to passage of the Crime Victim’s Rights Act the type of information included in the victim’s impact statement was precluded from consideration by the trial judge and probation department. While the Crime Victim’s Rights Act established a new procedure and gave an opportunity to a victim to be heard, the use of such information in sentencing prior to passage of the Crime Victim’s Rights Act was not erroneous. In the within case, we do not believe that the use of the victim impact statement constituted error requiring reversal. In addition, under the facts of this case, the failure of defendant to object to the trial court’s comments or to the inclusion of the victim’s impact statement in the file constituted a waiver of any complaint defendant might otherwise have with respect to use of the impact statement prior to the effective date of the statute.
Third, defendant claims that the sentencing court based its sentence on assumptions that appellant was guilty of other uncharged offenses. We do not agree. The trial court was entitled to give consideration to the guilty plea which defendant offered. There was no error in consideration of the matters contained in defendant’s guilty plea.
Fourth, defendant claims that the trial court based its sentence upon his refusal to admit his guilt. We do not agree. Apparently, defendant seeks to equate the trial court’s statement in the sir that defendant did not "accept responsibility for his actions” with a so-called failure to admit guilt. On the contrary, in his guilty plea, defendant clearly admitted what he had done and gave no indication that he did not recognize his guilt. Defendant’s claim in this connection is without merit.
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Danhof, C.J.
Defendant pled guilty to breaking and entering with intent to commit larceny, MCL 750.110; MSA 28.305. He was sentenced to six to ten years in prison. Defendant appeals his sentence as of right, claiming that the lower court erred by departing from the sentencing guidelines and that his sentence should shock our conscience. We affirm.
The proper criteria for determining an appropriate sentence include the disciplining of the wrongdoer, the protection of society, the potential for reformation of the offender, and the deterring of others from committing like offenses. The sentencing court must state on the record which criteria were considered and what reasons support the court’s decision regarding the length and nature of punishment imposed. People v Coles, 417 Mich 523, 550; 339 NW2d 440 (1983). Departure from the sentencing guidelines is permitted. The sentencing court must give specific explanations for departure where there are special characteristics of the offense or offender necessitating a departure or where the court believes the recommended ranges are inappropriate. People v Fleming, 428 Mich 408, 426; 410 NW2d 266 (1987).
At sentencing, the lower court stated that it was troubled by defendant’s continuing drug use and apparent unwillingness to take advantage of an opportunity to help himself. The court indicated that it imposed defendant’s sentence to punish and rehabilitate him and to protect society. The lower court properly stated on the record which criteria it considered and its reasons for departing from the guidelines when imposing defendant’s sentence. Fleming, supra, p 426; Coles, supra, p 550.
When reviewing a trial court’s exercise of discretion in sentencing, we will afford relief to a defendant only if we find that the trial court abused its discretion to the extent that it shocks our conscience. Coles, supra, p 550. Defendant’s sentence is appropriate. Our conscience is not shocked.
Affirmed.
Beasley, J., concurred. | [
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Per Curiam.
Vivian Dew (hereafter plaintiff), along with five other individuals, brought suit against Michigan Osteopathic Medical Center (momc), a Michigan corporation, and Michigan Health Care Corporation, a Michigan corporation, jointly and severally, on April 11, 1985. Plaintiff’s three-count complaint alleged breach of employment contract, age discrimination in violation of the Civil Rights Act, MCL 37.2101 et seq.; MSA 3.548(101) et seq., and negligence, specifically failure to properly evaluate plaintiff’s job performance and failure to supervise the personnel who evaluated plaintiff. On August 12, 1987, defendants renewed their motion for summary disposition against plaintiff Dew only. On November 2, 1987, Wayne Circuit Judge William J. Giovan granted defendants’ motion on the age discrimination and negligence claims. Plaintiff appeals as of right. We affirm.
Plaintiff, a middle-aged woman, is a respiratory therapy technician employed by the Michigan Osteopathic Medical Center. In early 1982, the medical center began advising all respiratory therapists that certification requirements were being estab lished. In 1982, therapists were verbally informed that they were required to work towards certification and this verbal communication was followed by written notification issued in November of 1982. In December, 1983, plaintiffs supervisor confronted her with the discovery that plaintiff had not enrolled in any classes at all. Thereafter plaintiff enrolled in classes at Highland Park Community College. She was informed in January, 1984, that continued employment was contingent upon certification by December 31, 1984. On May 14, 1984, plaintiff was informed by letter that certification examinations were scheduled and further employment was contingent upon certification by December 31, 1984. On January 9, 1985, a letter was sent to plaintiff notifying her that on January 12, 1985, she would be released from employment.
In granting summary disposition under MCR 2.116(0(10) the trial court had before it an affidavit submitted by defendant medical center that read: "As of the time of Ms. Dew’s termination, no respiratory technicians employed by momc . . . failed to possess the minimum certification requirement.”
On appeal plaintiff contests the grant of summary disposition both as to plaintiffs claim of age discrimination and as to her claim of negligence.
Plaintiffs claim of discrimination is based upon the Civil Rights Act, specifically MCL 37.2202(l)(a); MSA 3.548(202)(l)(a), which states: "An employer shall not . . . discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment because of . . . age . . . .” Plaintiff contends that whether a person was a victim of discrimination is always a question of fact for the trier of fact. Plaintiff relies in part on a deposition of one Helen Jones, her former supervisor, which she has not supplied to this Court as part of her exhibits. In her own deposition in response to the question of the basis for her age discrimination claim she stated:
Well, I feel that the corporation did not particularly want people to work there who had any type of seniority. I had been there for 15 years. I had a perfect record. And I think the benefits that they had to pay out and the bonuses were something they didn’t particularly — they weren’t pleased with. I can’t see any other basis for it, you know, rather than the length of time and possibly age.
Defendants quote from Helen Jones’ deposition the following exchange:
Q. In terms of the — now we are switching over to Grant, et al. In terms of the individuals you have discussed previously: Grant, Gibbs, Wolff, Dew, Ealy, and Maggitt; none of these people did get their certification, did they?
A. No.
Q. Then they were terminated because they did not get a certification?
A. As told to myself by Christyne Gomillion, yes.
Q. Do you have any reason to disbelieve that statement by her?
A. No.
Q. Had, as far as you know, if any of those six individuals had been able to get their certification, they would have remained an employee at momc and mhc; is that correct?
A. Yes.
From our examination of the briefs and record we find that if plaintiff had secured the necessary certification she would have kept her job. Plaintiff has failed to establish a prima facie case that she was qualified for the job. Her naked assertion that she was the victim of age discrimination is unsupported. Bouwman v Chrysler Corp, 114 Mich App 670; 319 NW2d 621 (1982), lv den 417 Mich 989 (1983). Furthermore, summary disposition was proper even if plaintiff had established a prima facie case because plaintiff failed to rebut defendants’ proffered legitimate, nondiscriminatory reasons for their action. Clark v Uniroyal Corp, 119 Mich App 820, 825; 327 NW2d 372 (1982).
Plaintiff’s complaint in regard to the negligence count was that momc negligently performed its periodic review of plaintiff and negligently supervised those employees who had authority and control over plaintiff’s job performance. We recently analyzed a so-called negligent evaluation claim in Struble v Lacks Industries, Inc, 157 Mich App 169; 403 NW2d 71 (1986). We follow Struble and hold that plaintiff’s negligence claim is not separate and distinct from the contract out of which it arises. In Sankar v Detroit Bd of Ed, 160 Mich App 470, 479-480, n 2; 409 NW2d 213 (1987), after a review of Schipani v Ford Motor Co, 102 Mich App 606; 302 NW2d 307 (1981), another panel of this Court concluded that the Schipani Court’s "recognition of the tort of negligent evaluation should be limited to the particular facts of that case.” We agree. We find that plaintiff’s purported negligence claim does not state a distinct and separate cause of action from her breach of contract claim. This is a very tenuous claim at best since plaintiff was fired because she did not get certified; not because she had poor evaluations.
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Per Curiam.
Defendant was convicted following a jury trial of carrying a concealed weapon, MCL 750.227; MSA 28.424, and was subsequently sentenced to one year’s probation, with sixty days in jail, and assessed $1,610 in fines and costs. He appeals as of right, claiming that the weapon found in his van by the arresting officers should have been suppressed and that the trial court erred in denying his requested instruction on the "place of business” exception to carrying a concealed weapon. We affirm.
At the preliminary examination, the district judge denied defendant’s motion to suppress the gun found in his van. A trial court’s decision on a motion to suppress evidence will be reversed only if the court abused its discretion or if its decision is clearly erroneous. People v Tanis, 153 Mich App 806, 808; 396 NW2d 544 (1986), lv den 426 Mich 877 (1986). A finding is clearly erroneous where, although there is evidence to support it, the reviewing court is firmly convinced that a mistake has been made. People v Harris, 164 Mich App 567, 571; 417 NW2d 502 (1987).
Plaintiff correctly asserts that defendant was properly "stopped and frisked.” The stop-and-frisk exception to the warrant requirement allows seizure of objects found during a search necessitated by a legitimate concern for personal safety. The reasonableness of such a search depends on a balancing of the need to search against the intrusion the search entails. Terry v Ohio, 392 US 1, 21; 88 S Ct 1868; 20 L Ed 2d 889 (1968).
In this case, we find that the search of the van and the seizure of defendant’s gun found under the driver’s seat resulted from the officers’ legitimate safety concerns. Defendant was found in a van parked after hours in a used car lot where there had been reports of recent thefts. Although one arresting officer indicated at the preliminary examination that at the time the gun was found the buildings in the area were deemed secure and defendant was not suspected of any criminal activity, the other officer, who actually reached for the gun, testified that he had not finished checking the buildings and suspected that there was a breaking and entering in progress. This officer testified that the rag wrapped around the gun was visible from his position outside of the van. When he asked defendant what the object was, defendant repeat edly attempted to reach down beside his seat. We believe that the arresting officer had probable cause to retrieve the rag-wrapped object and to open the box once he retrieved it from underneath defendant’s seat, based upon his past experience and training as a police officer. Given the entire circumstances, there was no clear error in finding that the officers were justified in making a protective Terry search and in denying defendant’s motion to suppress.
We also find no error in the trial court’s denial of defendant’s requested jury instruction. Defendant contended that, because he was in the business of delivering produce, his van was his "place of business” for purposes of the concealed weapons statute.
MCL 750.227; MSA 28.424 provides:
[A] person who shall carry a pistol concealed on or about his person, or, whether concealed or otherwise, in a vehicle operated or occupied by him, except in his dwelling house or place of business or on other land possessed by him, without a license to so carry the pistol as provided by law . . . shall be guilty of a felony, punishable by imprisonment in the state prison for not more than 5 years, or by fine of not more than 2,500 dollars. [Emphasis added.]
This Court has held, contrary to plaintiff’s position, that the words "other land” indicate the legislative intent to limit the place of business exception to business property on land. People v Brooks, 87 Mich App 515-518; 275 NW2d 26 (1978), lv den 406 Mich 946 (1979). To adopt defendant’s reasoning would render the statutory prohibition inapplicable to any traveling business person who wishes to carry a concealed weapon. This was certainly not the legislative intent.
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Allen, J.
In 1971, defendant, Phillip Lee Lip-pert, was charged with first-degree murder, MCLA 750.316; MSA 28.548, and pleaded guilty to second-degree murder, MCLA 750.317; MSA 28.549. He was sentenced to life in prison and began serving that sentence in 1971. This Court affirmed that conviction and sentence in an unpublished order dated September 23, 1971. We accepted appellate defense counsel’s assertion that there were no meritorious grounds for an appeal. See Anders v California, 386 US 738; 87 S Ct 1396; 18 L Ed 2d 493 (1967).
On February 18, 1976, more than five years after sentencing, defendant filed a motion for a new trial in the trial court. By supporting affidavit, defendant alleged that he had been innocent of the charged offense and that both his limited participation in the crime and his subsequent guilty plea had been the product of duress applied by one of his codefendants. The motion for a new trial was also supported by an affidavit from that codefendant confirming the defendant’s allegations.
An evidentiary hearing was held. At that hearing, the codefendant for the most part recanted his recantation, although his testimony did support the defendant’s allegations in some respects. Faced with a defense motion to set aside the plea on the ground that the plea had not been voluntarily entered, the trial judge denied that motion. He reasoned that a defendant bringing such a motion must establish involuntariness by a preponderance of the evidence. And he concluded that the defendant had failed to meet that burden.
Two weeks later, the motion for a new trial was renewed — this time, based on an allegation that the plea had been untruthful. Having previously ruled that a defendant seeking to set aside his plea based on allegations of untruthfulness need only establish a reasonable doubt as to his guilt, the trial judge found that the defendant had met that burden. He therefore set aside the earlier plea and conviction and ordered the defendant remanded to district court for a preliminary examination on the original charge of first-degree murder.
We granted leave for the prosecutor to appeal from that order. The prosecutor argues that the "reasonable doubt” standard used by the trial judge in this context is too lenient. The prosecutor urges us to announce a standard that should be followed by all trial judges when defendants seek to set aside their guilty pleas after sentencing. He naturally argues that the standard we propound should be more difficult to satisfy than the one applied by the trial judge in this case.
The defendant joins with the prosecutor in ask ing this Court to speak authoritatively on the question of what standard trial courts should use in this type of situation. However, defendant argues that the standard should be one of trial court discretion and that this Court should affirm trial court rulings in the absence of an abuse of discretion. Also, defendant has brought his own appeal from that portion of the trial judge’s order which allowed the prosecutor to refile the original first-degree murder charge. The defendant argues that, pursuant to People v McMiller, 389 Mich 425; 208 NW2d 451 (1973), the highest possible charge against the defendant is second-degree murder.
The Motion to Set Aside the Plea
The trial judge set aside the defendant’s guilty plea because, after hearing the testimony at the evidentiary hearing, he had a reasonable doubt as to the defendant’s guilt. The principal authority for the use of a reasonable doubt standard in this context was People v Taylor, 383 Mich 338; 175 NW2d 715 (1970) (opinion of Brennan, C. J.). Although four justices concurred in some parts of Chief Justice Brennan’s opinion, the portion cited by the trial judge in this case was dicta and was approved by only one other justice.
The trial judge in this case recognized that the precedential value of Taylor was questionable. However, he was unable to find any other directly on point authority and concluded that "[i]n any event, the opinion of two justices of the Supreme Court does carry considerable weight”. We appreciate the trial court’s dilemma but we believe that the standard proposed by Chief Justice Brennan in his Taylor opinion was not appropriate in the present case. We therefore remand this case to the trial court for reconsideration in light of the following discussion.
The precise question before us is: what standard should a trial court apply when a defendant returns after pleading guilty and being sentenced, and belatedly contends that he is innocent after all and pled guilty only as a matter of convenience? In answering this question, we must balance two concerns. First, relief should be available to a defendant who was wrongly convicted even if he was convicted on his own then untruthful admissions. Second, the people are entitled to insist that this relief be available only where a defendant makes a strong showing of innocence. In the vast majority of cases — especially where the defendant pleads guilty — the case should remain closed after the initial right of appeal has been exhausted. Otherwise, there will be no finality in the plea taking system.
While the relief granted in the present case may or may not be appropriate, we believe that the standard employed by the trial judge was too lenient and would allow for the reopening of too many cases. As the prosecutor points out in his brief, defendants who plead guilty waive their right to insist that the prosecutor prove them guilty beyond a reasonable doubt. This waiver would be meaningless if it could be upset at any time when a defendant believed that he could make a showing of reasonable doubt. In fact, it would be worse than meaningless since, in some cases, it could effectively serve as a means of obtaining a long continuance and allow a defendant to come back and demand a trial at such time as he believed the prosecution would no longer be able to assemble an effective case.
It is, of course, impossible to produce an exact formula which will objectively determine all such disputes. But we do wish to emphasize that a defendant who seeks to set aside his plea after conviction and sentencing must do more than create a reasonable doubt as to his guilt. We think that the appropriate test is found in People v Winegar, 380 Mich 719; 158 NW2d 395 (1968). In that decision, the Supreme Court held that, where a defendant seeks to set aside a plea following conviction and sentence, his motion is addressed to the discretion of the trial court which must make a determination as to whether the defendant has shown that his prior guilty-plea conviction was a "miscarriage of justice”. 380 Mich at 730-731.
The defendant in Winegar pleaded guilty and was sentenced in 1961, then returned to the trial court in 1965 with a motion to set aside his plea. In support of that motion, he made two arguments. First, he contended that the trial judge had not complied with the court rule procedures governing the taking of guilty pleas. Second, he stated that he was innocent of the charges against him and that he had pled guilty only because the police had withheld medical treatment from his wounded codefendant and threatened the safety of his pregnant wife. Based on those allegations, this Court reversed the trial court and set aside Winegar’s guilty plea. (4 Mich App 547; 145 NW2d 257 [1966]). However, the Supreme Court reversed this Court and reinstated the conviction. The Supreme Court opinion states that a defendant cannot obtain relief from his plea, based on mere procedural irregularities, unless he makes a showing that a miscarriage of justice has occurred. The Supreme Court concluded that Winegar’s assertions of inno cence were not sufficiently persuasive to establish that a miscarriage of justice had occurred.
Winegar might be distinguished from the present case because that defendant was relying upon a procedural error by the trial court as well as his own assertions of innocence. But we see no sound reason for drawing that distinction. If the miscarriage of justice standard applies where both procedural errors and allegations of innocence are raised, standards should obviously be at least as strict where the parties concede that the trial judge fully complied with all procedural requirements.
The Winegar rule was followed by this Court in People v Gamble, 39 Mich App 227; 197 NW2d 500 (1972), and when the Winegar case recently reappeared in this Court. People v Winegar, 78 Mich App 764; 261 NW2d 45 (1977).
A very similar rule is recommended by the ABA Project on Minimum Standards for Criminal Justice, Standards Relating to Pleas of Guilty (1968 Approved Draft), Standard 2.1:
"2.1 Plea withdrawal.
(a) The Court should allow the defendant to withdraw his plea of guilty or nolo contendere whenever the defendant, upon a timely motion for withdrawal, proves that withdrawal is necessary to correct a manifest injustice.
(i) A motion for withdrawal is timely if made with due diligence, considering the nature of the allegations therein, and is not necessarily barred because made subsequent to judgment or sentence.”
Although we have rejected the legal standard employed by the trial judge, we do not mean to express any opinion as to what his ruling should be on remand. Our concern was that the reasona ble doubt standard employed by Judge Corkin would allow for the reopening of too many guilty plea cases years after conviction, sentence and supposedly final appeal. We believe that the tougher standard adopted in People v Winegar, supra, and also set forth in the ABA standards relating to guilty plea cases, supra, will protect against abuse while also assuring that relief will be available in exceptional cases. We recognize Judge Corkin’s greater familiarity with this case. We reverse only so that he may apply the proper legal standard. Winegar indicates that his ultimate decision as to whether a miscarriage of justice has occurred should be affirmed unless an abuse of discretion can be shown.
The McMiller Issue
Judge Corkin’s order provided that the previous conviction should be set aside and that the defendant could be tried on the original charge of first-degree murder. In his appeal in Docket No. 773686, the defendant argues that he cannot be tried for a charge higher than the one on which he was previously convicted, viz., second-degree murder. The defendant relies upon People v McMiller, 389 Mich 425; 208 NW2d 451 (1973), and People v Thornton, 70 Mich App 508; 246 NW2d 9 (1976). However, McMiller has so far been limited to situations in which a guilty plea is set aside because of a procedural error in the plea-taking process. The rather restrained reaffirmation of McMiller which appears in Guilty Plea Cases, 395 Mich 96, 135; 235 NW2d 132 (1975), indicated that application of the McMiller rule is appropriate in the context of a procedural error because the prosecutor shares the responsibility for notifying the trial judge if a procedural error occurs. How ever, where a defendant makes a belated claim of innocence and asks to be allowed to withdraw his guilty plea even though no procedural error occurred, he may be retried on the original charge if his request is granted. Moore v Ninth District Judge, 69 Mich App 16; 244 NW2d 346 (1976), People v Moore, 74 Mich App 195; 253 NW2d 708 (1977). The facts of the present case call for an application of the rule announced in the two Moore cases. We therefore affirm that portion of the trial court’s order which allowed the prosecutor to once again charge defendant Lippert with first-degree murder. Obviously this aspect of our holding will be relevant only if Judge Corkin again sets aside the 1971 guilty plea.
Affirmed in part, reversed in part and remanded for proceedings consistent with this opinion.
Winegar recently reappeared in this Court as People v Winegar, 78 Mich App 764; 261 NW2d 45 (1977). | [
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] |
Per Curiam.
Defendant was convicted by a jury, on January 21, 1975, of breaking and entering a building with intent to commit larceny therein, MCLA 750.110; MSA 28.305. Following sentence, defendant appeals by right.
Defendant presents the following issues for our determination:
1) Was the evidence of heroin used by the defendant shortly after a breaking and entering properly admitted to establish a motive for the breaking and entering?
2) Was the large amount of money found by the police in the defendant’s brother’s apartment properly admitted into evidence?
The second issue is clear and simple. A question of fact was presented to the jury and they apparently determined that the brother had given permission to the police to enter his apartment and conduct a search. There was no error on this issue.
The first issue, however, requires reversal.
Generally, evidence which tends to show that a defendant has committed a crime other than that charged is inadmissible at trial. This is so because such evidence is usually collateral and prejudicial. People v DerMartzex, 390 Mich 410, 413; 213 NW2d 97 (1973). The admission of narcotic evidence in nondrug theft cases is prejudicial to such a degree that a reversal is mandated. It does not, under the facts of this case, establish defendant’s motive, intent, scheme or plan and fall within the purview of MCLA 768.27; MSA 28.1050.
For a detailed analysis of this problem, we refer the reader to People v Lorenzo Williams, 63 Mich App 389; 234 NW2d 537 (1975).
Reversed, and remanded for new trial. | [
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D. E. Holbrook, J.
On December 12, 1975, defendant was convicted by an Oakland County Circuit Court jury of first-degree murder, contrary to MCLA 750.316; MSA 28.548. On January 15, 1976, defendant was sentenced to life in prison with credit for 411 jail days served. Defendant appeals as of right.
This case arose from the murder of two attend ants at a Tulsa gas station during the course of an armed robbery at approximately 6 a.m., on November 30, 1974. A recitation of the facts is important for an understanding of the issues raised upon appeal.
At 3:05 p.m., on November 30, 1974, the defendant confessed to the double homicide. On May 21, 1975, the defendant filed a motion to suppress the confession and for an evidentiary hearing. On September 24, 25, 26 and 30, 1975, the circuit court judge held an evidentiary hearing on admission of the confession pursuant to People v Walker (On Rehearing), 374 Mich 331; 132 NW2d 87 (1965). On November 24, 1975, the trial court denied the motion to suppress and the confession was subsequently read into evidence at the trial.
Testimony at the Walker hearing disclosed that the bodies of the two attendants were found inside the bathroom of a Tulsa gas station. The bodies were found shortly after 6 a.m., on November 30, 1974. At 6:30 a.m., on that date, defendant was observed by a deputy sheriff entering a restaurant located about 10 to 15 minutes from the murder scene. Defendant was with three other persons: co-defendant Kowalski, Stella Kowalski and Debbie McLaughlin, the defendant’s girlfriend. The deputy sheriff, who had just finished having breakfast in the restaurant, spoke briefly to defendant on his way out. The deputy, who was aware there had been a shooting at the Tulsa gas station, mentioned it to defendant because he knew defendant had previously worked at the gas station.
Upon leaving the restaurant, the deputy sheriff drove to the Tulsa gas station to see if he could be' of any assistance. He spoke with the officer in charge, Detective Lister, and mentioned that he had just seen defendant at the restaurant. Detec tive Lister requested the deputy to return to the restaurant and ask defendant if he would come to the gas station so that Lister could talk with him. Lister thought that defendant was or could be a suspect.
The deputy sheriff returned to the restaurant and found defendant still sitting in a booth. The deputy approached defendant and stated that there had been a shooting at the Tulsa station. He asked defendant if he remembered Detective Lister and defendant answered "Yes”. Defendant was told that Lister would like to talk to him at the Tulsa gas station, if that was alright, and the defendant said it was fine. Together with the two women, defendant and Kowalski entered Kowalski’s car and drove to the gas station. The deputy stated that defendant was not placed under arrest and went "strictly voluntarily”. The defendant and Kowalski arrived at the Tulsa gas station shortly after 7 a.m. The defendant walked over to Lister’s police vehicle and after an initial perfunctory conversation, Lister advised the defendant of his rights, which the defendant stated he understood. Lister asked defendant if he wanted an attorney and defendant said no, because he hadn’t done anything. Lister asked the defendant if he would waive his rights not to answer questions, and defendant said, "Yes”. Lister then asked him what his movements were "from midnight on”. This questioning, to which defendant responded, lasted until approximately 7:15 a.m. After defendant gave an exculpatory story, he was told that he was free to go. They all remained at the gas station until 8 a.m. At this time, officers noticed that one of the girls with the defendant had work gloves in her purse which were identical to those sold in the Tulsa station. Also, another similar glove was found on the floor of the car in which defendant rode. While the defendant was at the gas station, the sheriffs department towed the car in which defendant had ridden to the police station for having improper plates. Lister then offered the defendant and his friends a ride to the police station so they could make a telephone call in order to get a ride home.
Prior to defendant’s arrival at the gas station, a tracking dog had led officers from the gas station to a parking lot located near the station where fresh tire tracks and footprints were observed in the snow. Some oil spots or drippings were also observed in the snow. After defendant and his friends arrived in their car, the officers noticed similarities between the car’s tire tracks and oil drippings and those previously observed in the snow at the parking lot.
While at the police station, Lister asked Stella Kowalski and Debbie McLaughlin some questions. At or about 9 or 9:30 a.m., Lister told the individuals they could go. They told Lister that they were going to a nearby restaurant. At no time did the officer tell defendant he was under arrest.
After defendant and his friends left, Detective Lister spoke with the chief assistant prosecutor for Oakland County. Following this conversation, Lister requested that Officer Mercer go to the restaurant where defendant and Kowalski had said they were going and bring them back for further questioning. Officer Mercer went to the restaurant and told Kowalski and Sands that Detective Lister would like to talk with them. Officer Mercer testified that as far as he was concerned, defendant had a choice in deciding whether or not to go to the police station and that defendant voluntarily went with him.
When defendant and Kowalski arrived at the police station, they were ushered into a report writing room and asked to have a seat until Detective Lister returned. The officer told them that there was coffee in the back, as well as a restroom. Officer Mercer then left the police station. Apparently there was no one, other than Kowalski, defendant and the dispatcher, at the police station at this time.
Detective Lister returned to the police station around 11:30 or 12 o’clock. Detective Lister testified that he advised defendant of his rights and questioned him. Lister also testified that defendant "wasn’t officially arrested”, but "was being held for questioning”. "He wasn’t free to leave. He was there for interrogation purposes.”
At 1:45 p.m., defendant gave a statement in the presence of the chief assistant prosecutor, Detective Lister and a court reporter. Prior to giving this statement, defendant was advised of his Miranda rights. The defendant denied involvement in the crime and he was then taken back to the room where he had been waiting. During the next 45 minutes to an hour, the codefendant Kowalski and Kowalski’s sister were questioned. During this 45-minute period, the defendant agreed to submit to a nitrate test. However, the nitrate test was never sent in for analysis because the test was conducted too long after the crime for the results to be reliable.
After the questioning of Kowalski and Kowalski’s sister, defendant indicated that he wanted to see the chief assistant prosecutor. At 3:05 p.m., the chief assistant prosecutor took the defendant’s 25-minute stenographically recorded confession. Lister and the Pontiac Township police chief, Robert Rayner, were also present.
Defendant in his confession detailed the planning of the robbery and the intent to kill the attendants after getting the money. Defendant explained how he and Kowalski parked in the cement company’s parking lot and approached the station carrying an 8mm lever action sniper rifle. After getting the money, he stated how he ordered the victims into the bathroom and repeatedly shot them as they tried to talk him out of it. Defendant said he shot the victims because he had worked with them before and they could identify him. The defendant presented no witnesses on his behalf at the trial.
At the trial of this cause, testimony was introduced that the bodies of the two attendants were found by a customer around 6 a.m. The victims were found lying on the floor of the men’s bathroom with the top of their heads "blown off”. A witness who lived directly across from the gas station testified that she had heard 3 distinct sounds, similar to small explosions, around 6 a.m. on November 30.
Debra McLaughlin, the girl with whom defendant was living at the time, testified that about 4 or 5 a.m., on the morning in question, defendant left their home in the company of Kowalski. She testified that defendant left the house carrying a rifle. Ms. McLaughlin further stated that defendant and Kowalski returned around 6 a.m. and told her to go into another room while they carried on a conversation. Shortly thereafter, before leaving for a nearby restaurant, defendant told her that he had $900 in the attic if she needed any money.
An audit of the Tulsa gas station disclosed that $1,275.81 including checks was missing from the safe. Deputy Donald McLaughlin, employed by the Oakland County Sheriffs Department Crime Laboratory, testified that he found a metal jacket of a fired bullet on the floor of the gas station. Pursuant to a search warrant, he found four fired UMC 8mm Lebel cartridge cases in the living room of Ms. McLaughlin’s home. Also, an 8mm Lebel caliber rifle was found in the closet. As a ballistics expert, he testified that the shell casing found at the gas station had been fired from the rifle found in the closet. Also found pursuant to the search warrant was $872 in plastic sandwich bags located in the rafters above a trap door in the bedroom. Also, the victims’ payroll checks, along with other checks from the Tulsa station, were discovered under a blanket in the same bedroom.
Apparently, sometime during the questioning of the defendant at the police station, his shoes were taken from him to see whether or not they would match the footprints found in the snow near the crime scene. A police officer testified that the shoes had the same size and pattern as the footprints in question.
The defendant was not placed under arrest on the day in question until around 4 or 5 p.m.
The defendant first raises two procedural issues, neither of which merits a reversal or remand.
The main issue defendant raises on appeal is whether the defendant’s confession should have been suppressed as the fruit of the poisonous tree. Defendant asserts that since he was arrested without a warrant and without probable cause, his confession was therefore illegal and inadmissible in evidence as the fruit of a poisonous tree.
In order to analyze this issue, we must first determine if and when the defendant was arrested.
A definition of an arrest was made in People v Gonzales, 356 Mich 247, 253; 97 NW2d 16 (1959), wherein the Court, quoting from 4 Am Jur, Arrest, § 2, stated as follows:
" 'An arrest is the taking, seizing, or detaining of the person of another, either by touching or putting hands on him, or by any act which indicates an intention to take him into custody and subjects the person arrested to the actual control and will of the person making the arrest. The act relied upon as constituting an arrest must have been performed with the intent to effect an arrest and must have been so understood by the party arrested.’ ”
See also, Dixon v Shiner, 12 Mich App 573, 582; 163 NW2d 481 (1968).
Applying this definition to the instant case, we find that defendant was not under arrest until his questioning in the afternoon on November 30, 1974. A review of the facts supports this view.
When the defendant gave his first statement at 1:47 p.m., the facts indicate that he was under arrest at this time. Detective Lister admitted that although defendant was not officially under arrest at the time of his statement, he was not free to leave. Additionally, his shoes were removed from him and a nitrate test was administered to his hands. These facts indicate that the defendant was under arrest as defined by Gonzales.
In order to determine whether or not the defendant’s arrest at this time was legal, we must determine whether or not there was probable cause for his arrest. People v Wolfe, 5 Mich App 543, 552; 147 NW2d 447 (1967). Our review of the facts indicates that there were sufficient facts known to justify a finding of probable cause at this time. Thus, the arrest was valid and the confession of defendant was not the fruit of the poisonous tree. Therefore, the trial judge properly admitted the confession in evidence.
We feel the following facts were sufficient to establish probable cause. The oil stains and tire tracks at the scene of the crime matched those of the car in which defendant was riding. Also, officers observed a work glove in the car in which defendant was riding and a pair of work gloves were seen in the purse of one of the women who accompanied defendant. These work gloves were identical to the work gloves that were sold at the gas station. The defendant was observed shortly after the crime was committed at a restaurant within ten minutes from the scene of the crime. Additionally, the police knew that the defendant had previously worked at the station and two weeks prior had taken $1,400 from the station for which he had lost his job.
The trial judge held at the evidentiary hearing as follows:
"Thank you gentlemen, for a very thorough treatment of this somewhat gray area. Let me say, first of all, that I do not find an illegal arrest here, under all of the attendant circumstances that have been presented, and analyzing the hours and moments surrounding preceding the giving of the statement that occurred with regard to these two respondents.”
The ruling of the trial judge was not clearly erroneous and is upheld by this Court.
We have ruled that the arrest was legal and proper and that defendant’s confession was properly admitted. We find that the trial judge committed no error.
Next, defendant asserts that the admission of the testimony relating to the use of the police tracking dog was reversible error. The defendant does not challenge the Michigan rule that tracking dog evidence is admissible. People v Harper, 43 Mich App 500, 508; 204 NW2d 263 (1972), Iv den, 389 Mich 759 (1973), People v Norwood, 70 Mich App 53, 55; 245 NW2d 170 (1976). Instead, the defendant maintains that the foundation laid by the prosecutor was improper.
Before tracking-dog evidence is admissible, the prosecution must establish four conditions which provide a proper foundation. The conditions are:
"(1) [T]he handler was qualified to use the dog; (2) the dog was trained and accurate in tracking humans; (3) the dog was placed on the trail where circumstances indicate the alleged guilty party to have been; and, (4) the trail had not become so stale or contaminated as to be beyond the dog’s competency to follow it.” Harper, supra, at 508.
Also see, Norwood, supra, at 55.
The people admit that not all the foundational requirements were met in the instant case, however, the people assert that this does not require reversal of defendant’s conviction. We agree. Defendant made no objection at trial or thereafter until appeal, and absent a showing of manifest injustice, specific objection to the admission of evidence cannot be raised for the first time on appeal. People v Alexander, 72 Mich App 91, 99; 249 NW2d 307 (1976). We find no manifest injustice. The evidence against the defendant was overwhelming and the admission of the testimony regarding the tracking dog could not have aided an otherwise undecided juror on the issue of defendant’s guilt beyond a reasonable doubt. People v Swan, 56 Mich App 22, 33; 223 NW2d 346 (1974).
Affirmed.
Detective Lister and the defendant had met previously in regard to an investigation of a theft of $1,400 from this Tulsa station. Defendant had admitted to Lister that he had stolen the money and was going to pay it back to the owner. The defendant had been dismissed from his job at the Tulsa station because of this theft.
Lister testified that the first time he had a conversation with the defendant, the latter indicated that he had picked up his girlfriend (Debbie McLaughlin) at midnight from Knapp’s Restaurant. They drove to her home in Utica which she shared with the Kowalskis and went to bed. Sands indicated that he had slept until about 3 a.m., when he woke up for a cigarette and then went back to sleep and finally awoke about 6 a.m. on the day that the bodies were found. The codefendant awakened him to have breakfast and all four went to the Flame Restaurant in the codefendant’s car because the defendant’s car was broken down.
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR3d 974 (1966). | [
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Bronson, J.
Plaintiffs, some 78 licensed physicians engaged in the practice of medicine in Oakland County, appeal from a March 19, 1976, judgment denying their motion for partial summary judgment and dismissing their complaint against defendant California Union Insurance Company for failure to state a claim upon which relief can be granted. GCR 1963, 117.2(1). For the reasons developed in this opinion we reverse the grant of summary judgment in favor of defendant California Union Insurance Company, affirm the denial of plaintiffs’ motion for summary judgment, and remand the case for trial.
The complaint alleges that each plaintiff holds an individual certificate of malpractice liability insurance issued by defendant California Union under and pursuant to a single master policy issued by California Union to the William Beaumont doctors’ association. The master policy states the policy period to be from June 26, 1974, to June 26, 1977.
The individual insurance certificates also include the following cancellation clause, which is required by MCLA 500.3020; MSA 24.13020:
"This certificate may be cancelled by the Named Insured by surrender thereof to the Company or any of its authorized representatives or by mailing to the Company written notice stating when thereafter the cancellation shall be effective. This certificate may be cancelled by the Company by mailing to the Named Insured at the address shown in this certificate, written notice stating when not less than 90 days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the certificate period. Delivery of such written notice either by the Named Insured or by the Company shall be equivalent to mailing.”
Sometime in 1973, representatives of William Beaumont Hospital began negotiating for a group malpractice insurance program under which the hospital and its staff could obtain malpractice insurance coverage in a single program from one insurance company. Negotiations were undertaken with California Union through its agents, Commercial Insurance Services and the Seed-Roberts Agency. It is claimed that California Union, and/ or its agents, offered plaintiffs a program which would provide such insurance with a three-year term, a single premium to be paid in advance with no annual or periodic premium increase, and termination of any individual doctor’s insurance only upon cause attributable to the individual.
It is alleged that shortly after individual certificates of insurance were delivered to plaintiffs in late 1974, the defendants first attempted to amend those certificates so as to provide only one year of coverage at an increased premium, then sent cancellation notices to each plaintiff pursuant to the 90-day cancellation clause. The cancellation notices included an offer to reinstate the insurance for one year only upon payment of a new, much higher premium.
The complaint contains four separate counts. Count 1 asserts that the attempted cancellations would breach the agreements between plaintiffs and defendants and seeks declaratory relief.
Count 2, pled alternatively, asks for reformation of the contract on the basis of fraud in the event the contract as written is interpreted as permitting the attempted cancellations absent cause attributable to the individual doctors.
Count 3 of the complaint seeks monetary damages on the basis of fraud as an alternative to the relief requested in Counts 1 and 2, and Count 4 seeks monetary damages on a negligence theory.
On October 6, 1975, defendant California Union filed a motion for summary judgment pursuant to GCR 1963, 117.2(1), on the ground that plaintiffs’ complaint failed to state a claim upon which relief could be granted. The motion referred to the inclusion of the 90-day cancellation clause in the contracts of insurance and to an integration clause. The motion also stated that the issuance of such a contract of insurance without a cancellation clause would have been in violation of Michigan law. MCLA 500.3020; MSA 24.13020.
On January 28, 1976, plaintiffs filed a motion for summary judgment against defendant California Union pursuant to GCR 1963, 117.2(3). Plaintiffs asserted that there was no genuine issue as to any material fact inasmuch as one of defendant’s offi cers, upon being deposed, had admitted that California Union had decided to amend or cancel plaintiffs’ policies in order to obtain higher premiums for the sole reason that plaintiffs’ premiums were lower than premiums being charged by other companies. Plaintiffs claimed that cancellation of plaintiffs’ coverage for such a reason was contrary to public policy and prohibited. Plaintiffs therefore requested summary judgment on their request in Count 1 for declaratory relief. Plaintiffs argued that inasmuch as defendant California Union had admitted cancellation of the certificates of insurance without cause attributable to plaintiffs and for the reason of raising premiums and shortening the terms of coverage, there was no dispute as to any facts material to a decision on whether such use of the cancellation clause was contrary to public policy and a breach of contract.
After hearing arguments on the motions, the trial court denied plaintiffs’ motion for summary judgment and granted defendant California Union’s motion. An order was entered on March 19, 1976, dismissing plaintiffs’ complaint as to defendant California Union with prejudice. Plaintiffs now appeal.
I.
As noted, Count 1 of plaintiffs’ complaint requested a declaratory judgment that the contracts of insurance could be cancelled by the company only for cause and for injunctive relief restraining defendant California Union from carrying out threatened cancellations.
Plaintiffs’ motion for summary judgment on Count 1 pursuant to GCR 1963, 117.2(3), also requests, in the first instance, a purely legal determination that cancellation of malpractice insurance absent cause attributable to the insured violates public policy. Under plaintiffs’ theory, plaintiffs would be entitled to summary injunctive and declaratory relief because of the alleged deposed admissions by defendant California Union as to the reasons for the threatened cancellations.
The theory behind defendant’s summary judgment motion is that the contract’s cancellation clause plainly and unambiguously gives defendant the right to cancel the malpractice insurance at any time for any or no reason, that MCLA 500.3020; MSA 24.13020 requires such a construction of the clause and precludes any conclusion that such a clause could be against public policy, and that the merger clause prohibits reference to any prior negotiations or agreements of the parties leading up to their entering into this contract.
Essentially then, the opposing motions for summary judgment on Count 1 asked for a summary declaratory determination whether the contract could be cancelled at any time for any reason or whether the contract could be cancelled only for cause.
To begin with defendant’s motion for summary judgment, we are not of the opinion that the previously quoted cancellation clause unequivocally and unambiguously grants defendant the right to cancel plaintiffs’ insurance at any time for no reason so as to justify summary judgment for defendant on Count 1.
Policies of insurance are much the same as other contracts; they are matters of agreement by the parties and the job of the courts is to determine what that agreement was and enforce it accordingly. Eghotz v Creech, 365 Mich 527, 530; 113 NW2d 815 (1962). If the terms of that contract are plain and unambiguous, their plain meaning should be given effect. Wozniak v John Hancock Mutual Life Insurance Co, 288 Mich 612; 286 NW 99 (1939). An ambiguous policy, however, is open to construction and questions of interpretation may well present jury questions. Clark v Hacker, 345 Mich 751; 76 NW2d 806 (1956).
Insurance policies must be interpreted by reading them as a whole. Sloan v Phoenix of Hartford Insurance Co, 46 Mich App 46; 207 NW2d 434 (1973). Courts should attempt to harmonize all parts of a contract of insurance so as to give effect to each clause contained therein. Jackson v British America Assurance Co, 106 Mich 47; 63 NW 899 (1895). Such a reading of the contract as a whole may be necessary to determine whether ambiguity exists in particular clauses. Insurance Co of North America v L C Young Painting & Decorating Co, 11 Mich App 304; 161 NW2d 24 (1968). Cf. DeLand v Fidelity Health & Accident Mutual Insurance Co, 325 Mich 9; 37 NW2d 693 (1949).
Defendant asserts that the statutory cancellation clause in the policy of insurance requires summary judgment in its favor. It is claimed that the meaning of the language is clear. We do not agree that the language requires the result defendant seeks. The statute is silent as to permissible grounds for cancellation. It need not be read as requiring that an insurance company have the absolute right to cancel at its whim and caprice. Rather, several factors indicate that the intended purpose of the statutory provision is to provide minimum procedural steps for cancellation and no more.
First, this clause does not expressly state that cause attributable to the insured is required for the defendant insurance company to cancel the policy. On the other hand, neither does that clause expressly state that the company may cancel without cause. A literal reading of the contract term provides only an understanding of the procedure by which defendant may cancel the policy, but not permissible grounds for cancellation. The provision would be consistent with a separate clause allowing cancellation only for cause attributable to the insured. It would also be consistent with a separate clause allowing cancellation for any or no reason. The cancellation clause itself therefore is ambiguous as to the requisite grounds for cancellation; it prescribes only the necessary procedure.
The Michigan Insurance Code was enacted for the benefit of the public and the insurance laws should be liberally construed in favor of policy holders, creditors and the public. Dearborn National Insurance Co v Commissioner of Insurance, 329 Mich 107, 118; 44 NW2d 892 (1950); Commissioner of Insurance v American Life Insurance Co, 290 Mich 33, 43-44; 287 NW 368 (1939). The quoted provision has at least two goals beneficial to an insured. The first is to require that an insured be unequivocally notified that his policy is subject to cancellation. DeLand, supra, at 20. The second is to provide a minimum procedure of providing notice to an insured of impending cancellation of his policy. State Automobile Mutual Insurance Co v Babcock, 54 Mich App 194, 206-210; 220 NW2d 717 (1974). Thus, reading the statute as procedural only does not strip it of meaning.
The statute does not require that insurance companies always retain an unequivocal right to cancel for any or no reason. For example, despite the general rule that mandatory statutory provisions are read into a contract if not inserted by the parties, the minimum procedural notice requirements for cancellation will be read into insurance contracts, Babcock, supra, while the right of the insurance company to cancel will not. DeLand, supra. In DeLand, an insurance contract which did not contain the statutory cancellation provision was read as permitting cancellation by the insurance company only for nonpayment of premiums and for reasons explicitly spelled out in the contract. That case is consistent with the general rule that the parties to a contract of insurance can insert additional terms on a subject covered by mandatory statutory provision as long as the additional terms are beneficial to the insured and do not materially avoid the statutory scheme of the contract. Mutual Benefit Life-Insurance Co v Commissioner of Insurance, 151 Mich 610, 615; 115 NW 707 (1908). The implication is that the grounds for cancellation of a policy of casualty insurance are a matter for agreement by the parties to the contract, and those grounds are not supplied by the statutory cancellation clause. I.e., the statutory cancellation clause is procedural only; it does not specify for what reason, if any, an insurance policy may be cancelled.
In addition, the policy states that it is for a three-year term. If the cancellation clause were read as permitting cancellation at any time without cause, it would be rendered ambiguous by the express term of the policy.
On appellate review of summary judgment for failure to state a claim, the test is whether plaintiffs claim, on the pleadings, is so clearly unenforceable as a matter of law that no factual development can possibly justify a right to recovery. Stewart v Troutt, 73 Mich App 378; 251 NW2d 594 (1977). We cannot say, applying this test to the instant case, that the cancellation clause relied on by defendant renders plaintiffs’ claim unenforceable as a matter of law under every possible factual development. The summary judgment for defendant on Count 1 of plaintiffs’ complaint must therefore be reversed.
At the same time, however, we must affirm the denial of plaintiffs’ motion for summary judgment on this count. There are genuine issues of material fact concerning the meaning of the insurance contract, such as whether the cancellation clause allows cancellation without cause.
Plaintiffs would have us hold that public policy will never permit cancellation of a policy of casualty insurance, or at least, malpractice insurance, absent cause attributable to the insured. We are not prepared to go so far. We can envision situations where parties of equal bargaining power have bargained for and agreed upon a contract clause providing for an unlimited right of cancellation on either side.
This is not to say that considerations of public policy have no part to play in this litigation. Some discussion of public policy considerations may well be of aid to the trial court in construing the contract on remand or in evaluating the use made of the cancellation clause.
In Skutt v Grand Rapids, 275 Mich 258, 263-265; 266 NW 344 (1936), our Supreme Court engaged in the following extended discussion of public policy in affirming the trial court’s refusal to enforce a contract on the grounds that it was contrary to public policy:
"The rule of public policy as enunciated by Mr. W. W. Story was adopted by this court in McNamara v. Gargett, 68 Mich. 454 (13 Am. St. Rep. 355) [36 NW 218 (1888)]. He said:
" 'Public policy is in its nature so uncertain and fluctuating, varying with the habits and fashions of the day, with the growth of commerce and the usages of trade, that it is difficult to determine its limits with any degree of exactness. It has never been defined by the courts, but has been left loose and free of definition in the same manner as fraud. This rule may, however, be safely laid down, that wherever any contract conflicts with the morals of the time, and contravenes any established interest of society, it is void, as being against public policy.’ W. W. Story, Contracts (5th Ed.), §675.
" 'The principle that contracts in contravention of public policy are not enforceable should be applied with caution and only in cases plainly within the reasons on which that doctrine rests.’ Twin City Pipe Line Co. v. Harding Glass Co., 283 U.S. 353 (51 Sup. Ct. 476, 83 A.L.R. 1168); 6 R.C.L. p 710 [75 L Ed 1112 (1931)].
"We adopt as did the trial judge the following from Pittsburg, C.C. & St. L.R.. Co. v. Kinney, 95 Ohio St. 64 (115 N.E. 505, L.R.A. 1917 D, 641, 643, Ann. Cas. 1918 B, 286):
" 'What is the meaning of "public policy?” A correct definition, at once concise and comprehensive, of the words "public policy,” has not yet been formulated by our courts. Indeed, the term is as difficult to define with accuracy as the word "fraud” or the term "public welfare.” In substance, it may be said to be the community common sense and common conscience, extended and applied throughout the State to matters of public morals, public health, public safety, public welfare, and the like. It is that general and well-settled public opinion relating to man’s plain, palpable duty to his fellow men, having due regard to all the circumstances of each particular relation and situation.
" 'Sometimes such public policy is declared by Constitution; sometimes by statute; sometimes by judicial decision. More often, however, it abides only in the customs and conventions of the people, — in their clear consciousness and conviction of what is naturally and inherently just and right between man and man. It regards the primary principles of equity and justice and is sometimes expressed under the title of social and industrial justice, as it is conceived by our body politic. When a course of conduct is cruel or shocking to the average man’s conception of justice, such course of conduct must be held to be obviously contrary to public policy, though such policy has never been so written in the bond, whether it be Constitution, statute or decree of court. It has frequently been said that such public policy is a composite of constitutional provisions, statutes and judicial decisions, and some courts have gone so far as to hold that it is limited to these. The obvious fallacy of such a conclusion is quite apparent from the most superficial examination. When a contract is contrary to some provision of the Constitution, we say it is prohibited by the Constitution, not by public policy. When a contract is contrary to statute, we say it is prohibited by a statute, not by a public policy. When a contract is contrary to a settled line of judicial decisions, we say it is prohibited by the law of the land, but we do not say it is contrary to public policy. Public policy is the cornerstone — the foundation — of all Constitutions, statutes, and judicial decisions, and its latitude and longitude, its height and its depth, greater than any or all of them. If this be not true, whence came the first judicial decision on matter of public policy? There was no precedent for it, else it would not have been the first.’ ”
Considerations of public policy have at times persuaded courts to refuse to permit attempts to cancel insurance even pursuant to unrestricted reserved rights to cancel. Thus it has been held that fire insurance may not be cancelled where the danger of a fire has become imminent. Home Life Insurance Co of New York v Heck, 65 Ill 111, 114 (1872).
In L’Orange v Medical Protective Co, 394 F2d 57 (CA 6, 1968), it was held that even under an unconditional right to cancel, the defendant insurer would not be permitted to cancel the medical malpractice insurance of the plaintiff dentist in order to threaten him not to testify as a witness in pending and future malpractice lawsuits against the defendant insurer. The Court held that such a use of the cancellation clause would permit insurance companies to use the clause to commit an act prohibited by the public policy of the State of Ohio and was therefore void and a breach of contract.
These cases indicate that public policy considerations may void an attempted cancellation of an insurance policy, even under an unrestricted contractual right to cancellation. Perhaps even more important to this case is the more general rule laid down by the Supreme Court some years ago in J R Watkins Co v Rich, 254 Mich 82, 84-85; 235 NW 845 (1931), where the Court said:
"A provision in a contract for termination at the option of a party is valid. But where the relationship is commercial and does not involve fancy, taste, sensibility, judgment, or other personal features, the option may be exercised only in good faith.”
The Court went on to affirm the trial court’s holding in that case that the plaintiff company had not acted in good faith in cancelling a contract to provide goods on credit to the defendant salesman where no reason for the cancellation had been given and where the evidence raised serious doubt as to whether plaintiff had intended to extend the benefit of the contract to the defendant salesman for the stated term of the contract. The plaintiffs arbitrary termination of the contract was held to be a breach of the contract. J R Watkins Co v Rich, supra, at 85.
The particular public policy argument which has been made by plaintiff in this appeal is that to permit the threatened cancellations in this case would be to sanction a type of "bait and switch” selling tactic by defendant California Union which would be prohibited by §2007 of the Insurance Code, MCLA 500.2007; MSA 24.12007. The argument is similar to that accepted in Watkins, supra.
The Michigan Attorney General, who has filed a brief as amicus curiae, makes the following specific public policy argument:
"The insurance code, supra, speaks to companies like California Union in sections 1840 through 1864 and sets forth under what circumstances and in what manner they may operate in Michigan. Succinctly stated, the code allows a surplus lines carrier to write policies in this state when similar coverage is not available from insurers represented in the State. * * * The facts show that California Union is a surplus lines insurer * * * . Presumably, since at least two other insurers were writing malpractice policies in this State (Medical Protective and Shelby Mutual), the three-year term of the policy must have been the operative factor in these policies being written.”
We have reviewed the pleadings, affidavits, depositions and exhibits in the case and conclude that there are material facts in dispute, as to both of these theories, as well as on the issue of whether the cancellation clause, even if construed as being unrestricted by the contract, was exercised in good faith. Summary judgment for the plaintiffs is consequently inappropriate at this time and we affirm the trial court’s denial of summary judgment for plaintiffs on Count 1 of the complaint.
II.
Defendant California Union was also awarded summary judgment on the basis that Counts 2-4 of plaintiffs’ complaint failed to state a claim upon which relief could be granted. The substance of those counts has previously been related in this opinion. Since the elements of fraud and negligence were sufficiently pled in the complaint, and the contract’s merger clause obviously provides no defense to the fraud and negligence charges, it appears that summary judgment was entered on a theory that an unrestricted and unreviewable right to cancel was required by law to be in the contracts of insurance and that consequently the exercise of such a clause could not form the basis of an action for damages or reformation. We rejected this theory in part I of this opinion and it follows that summary judgment was improperly granted on these counts. The summary judgment for defendant as to Counts 2-4 of plaintiffs’ com plaint is reversed and this case is remanded for trial on the merits.
Affirmed in part, reversed in part. Remanded for further proceedings consistent with this opinion. No costs.
Babcock, supra, 54 Mich App at 206 and cases cited therein.
As noted above, the cancellation clause could be read consistently with provisions allowing cancellation only with or without cause. Therefore, parol evidence is admissible to determine whether the parties agreed to allow cancellation by the insurer only with cause. See Union Oil Co of California v Newton, 397 Mich 486; 245 NW2d 11 (1976).
"The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance:
"Making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio station, or in any other way, an advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading.”
Plaintiffs also rely on Argonaut Insurance Co v Florida Medical Association, Inc, USDC, Middle District Florida, No. 75-140 Civ-J-T, an unpublished case in which an attempted cancellation by the defendant insurance company of medical malpractice insurance was held to be void. It is unclear, however, whether the result in that case was based on the particular contract before the court, whether public policy influenced the decision, or whether other factors entered into the decision. Consequently that case is of little value as precedent. | [
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N. J. Kaufman, P. J.
The Michigan Property and Casualty Guaranty Association Act (hereinafter referred to as the "Act”), 1969 PA 277, was enacted to provide a guarantee to both insureds and parties injured by insureds that insurance claims would not become uncollectible if an insurer became insolvent. The Michigan Property and Casualty Guaranty Association (hereinafter referred to as the "Association”) was created by the Act. The Association has the statutory obligation to pay and discharge in full those obligations of an insolvent insurer which come within the definition of "covered claims”.
This legislation was intended to remedy the situation which existed prior to its passage. Previously, if an insured’s company went bankrupt, he was left facing an outstanding judgment, despite having paid money to the insurer in the form of premiums. On the other hand, the injured party frequently held a judgment against an uninsured party. Often, the uninsured party was uncollectible; certainly if the judgment was large enough, the losing party would declare bankruptcy. Furthermore, under the old system, attorneys for bankrupt insurance companies would almost certainly file motions to be relieved on the basis that they could not collect for their work.
Subsequent to the passage of the Act, the inequities of the prior system are substantially remedied. Now the Association supplants bankrupt insurers, allowing attorneys to be hired to represent clients of the insolvent insurers and, if necessary, satisfy judgments which normally would be paid by the insurer. The Association, by assessing pro rata every insured driver in Michigan on future premiums, accumulates the funds necessary to discharge its obligations.
This action, which involves consolidated cases from different Wayne County circuit courts, revolves around whether the definition given the term "covered claims” in the Act includes certain types of legal fees.
In the Metry case, plaintiff is a Michigan copartnership authorized to practice law in the State of Michigan. The action seeks recovery of legal fees for services performed as attorneys or "legal representatives” of LaSalle National Insurance Company, an Illinois insurance company, prior to the insolvency of LaSalle. Defendant is the Association.
After a full trial on the merits, Judge Benjamin D. Burdick held that plaintiff’s claims were not "covered claims” under the Act because they did not "arise out of insurance policy contracts” issued by LaSalle, but instead arose out of separate retention agreements between the plaintiff firm and LaSalle. Plaintiff there appeals.
In the Vandeveer case, the plaintiff is a Michigan professional corporation, authorized to practice law in the State of Michigan, which brings this action for fees for legal services performed as attorneys or "legal representatives” of Citizens Casualty Company of New York, a New York insurance company, and of Commercial Underwriters, a Michigan reciprocal insurance exchange. Plaintiff law firm brought suit against the Association in November, 1973, seeking recovery of $18,-000 for legal services performed pursuant to its agreement with Citizens. Thereafter, plaintiff filed a supplemental complaint seeking recovery of an additional $201,000 for legal services performed pursuant to its agreement with Commercial Underwriters.
Plaintiff filed a motion for summary judgment and defendant filed a cross-motion for summary judgment. After due consideration, Judge Thomas Roumell found that the disputed language was clear and unambiguous. Legal fees were obligations which arose "out of the insurance policy contracts of the insolvent insurer”. He noted that if the Legislature wished to exclude legal fees, it could have done so clearly in the statute. Therefore, he granted plaintiffs motion. Defendant appeals.
The sole issue before this Court is whether plaintiffs’ claims for legal fees are "covered claims” pursuant to MCLA 500.7925; MSA 24.17925. We initially acknowledge this to be a case of first impression in Michigan. To adequately discuss this issue, it is necessary to delve back into the legislative history of this statutory provision.
The original House Bill No. 3699, one of a number of proposed bills dealing with the establishment of some sort of insolvency fund, provided for the establishment of an insolvency pool which would have assumed all the obligations owed by an insurance company on the date of its insolvency— specifically including "legal expenses and claims”.
After reviewing the various insolvency fund bills which were before the Legislature, the Insurance Bureau of this state drafted and submitted Substitute House Bill No. 3699 to the Legislature. That bill ultimately became the Guaranty Association Act and contained a number of changes from the original bill. The most notable from our standpoint was the omission of legal fees and expenses from the definition of "covered claim”. We must decide its significance.
2A Sutherland’s Statutory Construction § 48.18, p 224, notes that "[generally, the rejection of an amendment indicates that the legislature does not intend the bill to include the provisions embodied in the rejected amendment”. Indeed, the Michigan Supreme Court espoused a similar point of view in People v Adamowski, 340 Mich 422, 429; 65 NW2d 753 (1954):
"When the legislature affirmatively rejected the statutory language which would have supported the State’s present view, it thereby made its intention crystal clear. We should not, without a clear and cogent reason to the contrary, give a statute a construction which the legislature itself plainly refused to give.”
However, in this case, it can be argued that there is a "clear and cogent reason to the contrary”. Sutherland, supra, at 224-225 explains:
"An amendment may have been .adopted, however, only because it expressed better a provision already embodied in the original bill or because the provision in the original bill was deemed unnecessary because unwritten law would produce the same result without it.” (Footnote omitted.)
If, as Judge Roumell found, the language "arising out of’ is so clear that legal fees must be so included, the cautionary expression from Sutherland would be valid.
We are unable to resolve this controversy. We are not persuaded that the logic of either position so overwhelms the other that it should be adopted as definitive. We therefore look to the situation prevailing prior to the enactment of the Act be cause we find that, as to this precise issue, the Act made no change in prior law. Under prior law, as a general rule, attorneys were treated as were any other creditor.
However, other provisions of the Act make it necessary to make a practical modification in our holding. We are unable to ascertain from the facts what fees plaintiffs are suing for. The Association is responsible for defending claims unsettled at the time of insolvency. As it admits that it pays for the cost of attorneys who defend insureds after insolvency, potentially a class of obligations exists which defies proper legal categorization. It is likely that not all of plaintiffs’ obligations were neatly wrapped up prior to the insurers’ insolvency. In those unfinished cases, the Association will have to hire some law firm to complete the work plaintiffs had already started. If a new law firm is hired, all of plaintiffs’ work will be duplicated. The drivers of the state will save nothing. Thus, where plaintiff firms are hired by the Association to complete work already started, it is both senseless and needlessly punitive to deny them compensation for their earlier work product.
We reiterate, however, that plaintiffs are not entitled to any sums which represent legal work completed for the insolvent insurers prior to insolvency. They were not entitled to compensation before and we don’t feel the Act confers that right upon them. It should be remembered that the Association is a quasi-trust on behalf of the gen eral driving public. We believe that to tax every insured driver in this state for attorney fees should require a more definitive legislative enactment.
We therefore remand both cases to their respective trial courts for proceedings consistent with this opinion. No costs, a public question being involved.
V. J. Brennan, J., concurred.
MCLA 500.7901 et seq.; MSA 24.17901 et seq.
MCLA 500.7925; MSA 24.17925, in pertinent part:
"(1) 'Covered claims’ means obligations of an insolvent insurer which: (i) arise out of the insurance policy contracts of the insolvent insurer issued to residents of this state or are payable to residents of this state on behalf of insureds of the insolvent insurer, [and] (ii) were unpaid by the insolvent insurer, * * * .”
While other states have struggled with the broad issue posed by this case, see Kelly, Walker & Liles v McFarling, 509 SW2d 659 (Tex, 1974), Withers v Great American National Life Guardian, 124 NJ Eq 4; 200 A 485 (1938), our sister jurisdictions have not undertaken the precise question facing us here. Lower courts in other jurisdictions which have analyzed our problem, O’Connor v New Jersey Property, Liability Insurance Guaranty Association, 17073/74 (New York County, NJ, 1975), O’Malley v Florida Insurance Guaranty Association, Inc, 71-502 Leon County Circuit Court (Fla, 1972), were not working with the same wording nor is there any indication of similar legislative histories.
We are aware that the insolvent insurers’ policies provided for legal representation. However, they also provided for insurance coverage, in the broader sense. We are not so naive to suggest that the logic that would allow for legal fees as part of that coverage magically excludes claims adjusters, investigators and other integral components of the claims settlement process. An informed judiciary will be wary of setting up attorneys as a privileged class, divorced from the risks endured by those unable to call themselves "professionals”. | [
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Per Curiam.
Defendant Robert Lee Webb and a codefendant, one Henderson, were charged with two counts each of first-degree murder, MCLA 750.316; MSA 28.548. The date of the offense was March 10, 1975, in the City of Detroit.
On September 24, 1975, defendant filed a motion to sever the trials of himself and Henderson, claiming that the positions were antagonistic. The motion was heard and denied on October 7, 1975. Trial commenced on November 24, 1975, in Recorder’s Court and continued until December 5, 1975.
On December 12, 1975, the jury returned a verdict of guilty on both counts of the charged offense in regard to defendant. The jury was un- ' able to reach any verdict as to Henderson. On December 23, 1975, defendant was sentenced to two concurrent terms of life imprisonment. Appellate counsel having been appointed, defendant appeals as of right.
At the beginning of the trial, both defendants renewed their respective motions to sever and these motions to sever were again denied.
The decision to try codefendants jointly or separately is in the discretion of the trial court. MCLA 768.5; MSA 28,1028. To find an abuse of discretion where a trial court has denied a motion for severance, it must be shown that the joint trial worked to prejudice the rights of at least one of the defendants.
In the present case, defendant claims that the court abused its discretion in denying a motion to sever because the defense theories of the codefendants were antagonistic. In particular, defendant claims that his codefendant’s theory of the case was that defendant alone committed the offense, making the codefendant a victim of circumstances. Defendant contends that he should not have been required to defend against the accusations of his codefendant.
The case law supports defendant’s position. In People v Hurst, 396 Mich 1; 238 NW2d 6 (1976), the Michigan Supreme Court dealt squarely with the question of a joint trial where the codefendants accuse each other of the crime. The Hurst Court stated:
"The general rule is that a defendant does not have a right to a separate trial. Joinder of defendants for a trial is usually within the discretion of the court. However, '[a] severance should be granted when the defense of several defendants jointly indicted are antagonistic to each other’. 5 Wharton’s Criminal Law and Procedure, § 1946; Anno: Right to severance where two or more persons are jointly accused, 70 ALR 1171.
"The commentary accompanying the American Bar Association Standards Relating to Joinder and Severance states: 'it has long been the view that defendants joined for trial should be granted a severance whenever their defenses are antagonistic to each other.
" 'A separate trial will be ordered where the defenses of the accused are antagonistic * * * .’ State v Klein, 97 Conn 321; 116 A 596, 597 (1922).
" 'Where defenses are antagonistic and one defendant accuses the other, thus making it impossible for the defendants asking for a severance to have a fair trial, the severance should be granted.’ People v Meisenhelter, 381 Ill 378; 45 NE2d 678, 684 (1942).” (Footnote omitted.) 396 Mich at 6.
Quoting from People v Braune, 363 Ill 551, 557; 2 NE2d 839, 842 (1936), the Hurst Court set forth the prejudicial impact of a joint trial involving antagonistic defendants:
" 'The trial was in many respects more of a contest between the defendants than between the People and the defendants. It produced a spectacle where the People frequently stood by and witnessed a combat in which the defendants attempted to destroy each other. Any set of circumstances which is sufficient to deprive a defendant of a fair trial if tried jointly with another is sufficient to require a separate trial.’ ” 396 Mich at 7.
In State v Thibodeaux, 315 S2d 769 (La, 1975), also cited with approval in Hurst, supra, the Louisiana Supreme Court reversed the denial of a pretrial motion for severance where it appears from the arguments of counsel that the defense theories would conflict:
"The only evidence adduced at the hearing held on the motion was the testimony of counsel for Thibodeaux who testified that the gravamen of his intended defense of Thibodeaux would be to establish that the contraband forming the basis of the prosecution, which was found in an apartment shared by the defendants, was the sole property of Sallettes and that Thibodeaux had no knowledge of its existence.
"Thus, the thrust of Thibodeaux’s defense is directly accusatory of Sallettes, requiring him, in effect, to stand trial before two accusers, the state and Thibodeaux. Under these circumstances, justice requires that the joint charge be severed to allow the separate trial of each defendant.” 315 S2d at 770-771.
The record in the present case reveals that the trial court was aware of the claimed antagonism of the defense theories in süfíicient time to have granted defendant’s motion for severance. The motion to sever was first made prior to trial and this motion was heard and denied on October 7, 1975.
The motion was raised again by defendant at the start of the joint trial.
When the motion was renewed at the start of the trial, in response to the court’s inquiry as to whether the reasons were any different from those contained in the motion prior to trial, the following occurred:
"MR. ARDUIN [defense attorney]; No, your Honor, but I do want to tell the Court that these defenses, your Honor, are inconsistent and they are antagonistic, and I believe, your Honor, because of the inconsistencies of the defense, that my client will not be receiving a fair trial if your Honor has us go ahead and try this case together.
"That’s my motion, your Honor.
"THE COURT: That’s a luxury that’s pretty hard to aiford in this court, as busy as we are.”
The codefendant also requested the severance of these trials and the court’s response was that it thought it would be a fair trial if both parties were tried jointly.
A reading of this discussion indicates that the trial court was put on notice of a potential conflict between the defendants and this conflict became clearly apparent as the defendants began to present their cases and continued throughout the argument and testimony. The trial thus became the type of prejudicial confrontation between codefendant contemplated by the Court in Hurst and Thibodeaux. The trial court, having been advised of this upcoming conflict, erred in failing to grant defendant’s motion to sever the trial.
Defendant also alleges misconduct on the part of the jurors and error on the part of the court for allowing testimony of a key witness to be recreated after the transcript of that testimony could not be prepared. Defendant also claims that he was denied his right to appeal for a portion of the transcript could not be produced and the court held a hearing to reconstruct the testimony and settle the record. Since none of these last enumerated items are apt to reoccur at the subsequent trial of this defendant, it is not necessary to write further concerning any of the other claimed reasons for appeal.
The denial of the motion to sever was prejudicial error. The conviction of the defendant is reversed and the matter is remanded for trial. | [
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Per Curiam.
Plaintiff appeals the grant of defendant’s motion for accelerated judgment for the reason that defendant had sovereign immunity from tort liability under MCLA 691.1407; MSA 3.996(107).
In her complaint plaintiff alleged the following. While operating a farm tractor under defendant’s complete control and direction at Southern Michigan Prison, plaintiffs incarcerated decedent became entangled in the power take-off shield of the tractor and received fatal injuries. Defendant was negligent in failing to provide adequate protective shielding of moving parts of the power take-off shaft.
Plaintiff claims that her case falls under a statutorily defined exception to sovereign immunity, namely, injury resulting from the operation of a motor vehicle.
Defendant claims that it has absolute immunity in its exercise of the governmental function of incarceration and rehabilitation of prisoners, that a farm tractor is not a "motor vehicle” as this term is used in the statutory exception, MCLA 691.1405; MSA 3.996(105), and that this statutory exception becomes operable only when third parties are injured.
MCLA 691.1405; MSA 3.996(105), provides that governmental agencies shall be liable for bodily injury resulting from the negligent operation, by any agent or employee of the governmental agency, of a motor vehicle of which the agency is the owner, "as defined in” the Michigan Vehicle Code, MCLA 257.1-257.923; MSA 9.1801-9.2623.
Whether the phrase "as defined in” applies to "owner” or to "motor vehicle”, defendant must be regarded as the owner of a motor vehicle, to-wit, the tractor. Defendant has not disputed its ownership of the tractor. The vehicle code gives two definitions, either of which includes the tractor:
"Sec. 16. "Farm tractor” means every motor vehicle designed and used primarily as a farm implement for drawing plows, mowing machines, and other implements of husbandry.” MCLA 257.16; MSA 9.1816.
"Sec. 33. "Motor vehicle” means every vehicle which is self-propelled and every vehicle which is propelled by electric power obtained from over-head trolley wires, but not operated upon rails.” MCLA 257.33; MSA 9.1833. Plaintiffs allegations in her complaint indicate that plaintiffs decedent was defendant’s agent or employee in operating the tractor.
"Negligent operation” of a motor vehicle may occur even though the vehicle is standing still as long as it is being used or employed in some specific function or to produce some desired work or effect. Orlowski v Jackson State Prison, 36 Mich App 113, 116; 193 NW2d 206 (1971).
MCLA 691.1413; MSA 3.996(113), denies immunity in actions arising out of performance of a proprietary function, defined as "any activity which is conducted primarily for the purpose of producing a pecuniary profit for the state”. Incidental public benefit from a function does not disturb its nature as proprietary. Carlisi v Marysville, 373 Mich 198, 205; 128 NW2d 477 (1964).
If defendant employed plaintiff under the terms of the Correctional Industries Act, MCLA 800.321-800.335; MSA 28.1540(1)-28.1540(15), defendant may have been engaged in a proprietary function. The present stage of the suit does not permit resolution of this issue by accelerated judgment.
What this Court stated in Green v Department of Corrections, 30 Mich App 648, 659; 186 NW2d 792 (1971), may apply here:
"Further, we regard it as inequitable that the state should be permitted to imprison the plaintiff, instruct him to work at a knowingly defective machine, and then be able to escape liability for the ensuing injury by invoking their defense of statutory immunity.”
Reversed and remanded. | [
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D. E. Holbrook, Jr., J.
Defendant-appellant William Edward Suiter was convicted by jury of arson of real property, MCLA 750.73; MSA 28.268, after a trial on January 14 and 15, 1976, the Honorable Joseph P. Swallow, Montmorency County Circuit Court Judge, presiding. The charge resulted from a fire in the Atlanta Coin Laundry, west of Gerber Road, Atlanta, Montmorency County, Michigan, on May 9, 1975. On February 23, 1976, appellant was sentenced to two to ten years imprisonment. He appeals as of right raising three issues on appeal.
The first reason advanced by appellant for reversing his conviction is that the county prosecutor acted as defense counsel at defendant’s trial in violation of MCLA 776.14; MSA 28.1271. While it is true that he did we do not believe such practice to automatically require reversal. The defendant cites People v LaPine, 61 Mich App 345; 232 NW2d 401 (1975), as authority for the proposition that defendant’s conviction must be reversed. This is not, in our opinion, what LaPine stands for. In LaPine this Court found waiver and no showing of prejudice and affirmed. While it is true the Court stated at 349 thereof: "While the actions of defense counsel in similar cases should be avoided, we see no reason to reverse defendant’s conviction where he has not been prejudiced”, such language supports the appellee’s position and not that of the defendant.
Review of the court file indicates that defense counsel filed his appearance on behalf of the defendant on May 16, 1975. On July 24, 1975, the then prosecutor of Montmorency County filed a motion with the trial court to have one Jon L. Rise appointed special prosecutor for this particular case. An order granting such relief was issued by the court. On July 28, 1975, defendant was arraigned with his counsel being present. Defense counsel had previously represented defendant at the preliminary examination. On September 1, 1975, defendant’s counsel was appointed prosecu tor of Montmorency County. The instant case was noticed for trial on November 20, 1975, and trial took place on January 14 and 15 of 1976. The record fails to reveal that while acting as prosecutor defense counsel performed any acts pertaining to defendant’s case. The same was true in LaPine, supra.
Prior to the taking of any testimony in defendant’s case the following colloquy transpired between the trial judge and defendant:
"THE COURT: * * * All right. Now, before we proceed, I think — and call the jury — the record should reflect we are out of the presence of the jury at this time. And there has been prior discussions with the Court among counsel relative to the fact that Mr. Tibbetts is now the prosecuting attorney. But he is representing Mr. Suiter as defense counsel.
"Now, Mr. Suiter, I understand that you are satisfied with Mr. Tibbetts as your defense counsel, even though the fact that he is now prosecutor. Is that correct?
"MR. SUITER: Yes, sir.
"THE COURT: All right. And you want to proceed with Mr. Tibbetts as your attorney?
"MR. SUITER: Yes, sir.
"THE COURT: Even understanding the fact that this may constitute — while Mr. Tibbetts is bound by his oath as a lawyer to do the best job that he can for you, and I’m sure he will, but even under that circumstance, it is possible for you to raise an objection of conflict of interest and have another attorney appointed for you. But even realizing that, it’s my understanding, it has been expressed to me by Mr. Tibbetts, that you desire to proceed with him as your defense counsel. Is that correct?
"MR. SUITER: I am satisfied.
"THE COURT: All right. And you want to proceed with him as your counsel?
"MR. SUITER: Right.”
From the foregoing it is apparent that defendant wanted to proceed with his attorney despite repeated advice by the court that he did not have to do so and that the court would appoint substitute counsel if defendant so wished. Such conduct by the defendant, in our opinion, constitutes both acquiesence and waiver. Such also was the case in LaPine, supra.
The circumstances herein are most analagous to LaPine and absent a showing of prejudice or an affirmative showing that while serving as prosecutor defendant’s counsel did something as prosecutor which pertained to defendant’s case reversal is not mandated on the basis of the prosecutor’s violation of MCLA 776.14; MSA 28.1271. We find no such affirmative action on the part of the prosecutor nor any prejudice. Moreover, when a defendant attempts to use a possible error to his tactical advantage and the results are not to his liking, this Court will not allow him to use that as grounds for reversal. People v Baines, 68 Mich App 385, 388; 242 NW2d 784 (1976). While the prosecutor may or may not be subject to criminal prosecution and/or disciplinary action for violation of the statute such violation by the prosecutor, under the facts in this case, is not grounds for reversal of defendant’s conviction.
The second reason given by appellant for reversal of his conviction are the following remarks made by the prosecutor during closing argument:
"Now, let’s review the facts. First of all, did he start the fire? I feel he did. If I didn’t feel he did, I wouldn’t be here.”
Appellant claims that People v Humphreys, 24 Mich App 411; 180 NW2d 328 (1970), prohibits such remarks and labels them "prejudicial error”. We submit this is not the case at all. While it is true that the foregoing remarks, standing alone, might well constitute reversible error, when the special prosecutor relates his personal beliefs to the evidence same do not. Humphreys, supra at 414. Following the above quoted remarks the special prosecutor continued:
"And there are several things that indicate that to me. I think the strongest point is the fact that Deputy Teets and Deputy Baker saw him leaving, running from a burning building. Now, to say that he could not have known that building was on fire when a few seconds after he left it was completely filled with smoke, is ridiculous. He had to know it was on fire. And since he was the only one in the building, I feel he had to have started it.
"Now, what did he do after he left this burning building? Now, you will notice from this map that the laundromat is here, the Standard Station is here. What is in between? The Sheriff’s Department. Now, did he call the Sheriff’s Department to report the fire? No. Did he stop off at the Sheriff’s Department and report the fire? No. In fact, when he was arrested — and remember at the time he was arrested the police officers testified that his car was parked in front of the Standard Station, the door open, the motor running, which indicates to me a hasty retreat from the auto — he denied knowing anything about a fire.
"Now, we didn’t see him light the match. Be a heck of a lot easier if we did. We didn’t. But you can, without any question in your mind, indicate from the circumstances involving this thing that he did in fact start that fire.”
Prosecutorial remarks must be read as a whole and it is readily apparent from a reading of same together with the transcript that the special prosecutor related his personal beliefs to the evidence in the case and properly before the jury. Hence no reversible error. Furthermore, there was no objec tion to said remarks nor was there a request for a curative instruction.
As to the final issue advanced by appellant we find same to be equally lacking in merit. Appellant claims that the trial court was in error when it told the jury that it was not permitted to allow the jury, once deliberations had commenced, to view certain geographical areas. While we agree that the trial court has discretion to allow a jury a view of the premises even after deliberations have commenced, here the jury was not requesting to view the premises where the crime was committed. The request of the jury was stated thus:
"We, the jury, would like to know if it is at all possible if we could walk a couple of the routes on the map and visit a few of the spots referred to during the trial.”
At no point in the request did the jury specifically request to view the premises where the crime took place. The law applicable to this final issue is set forth in 1 Gillespie, Michigan Criminal Law and Procedure (2d ed), § 462, p 574, where it is stated:
"The question of whether or not the jury shall view the premises where a crime has been committed * * * rests in the sound discretion of the trial court.” (Emphasis supplied.)
Since this is not what the jury requested there was no failure to recognize or exercise discretion on the part of the trial judge.
Affirmed.
Allen, J., concurred. | [
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M. J. Kelly, P. J.
On leave granted, plaintiff appeals from a decision of the Workmen’s Compensation Appeal Board, denying death benefit compensation on the ground that the death of plaintiffs decedent did not arise "out of and in the course” of his employment.
Plaintiffs decedent was a partner in the law firm of Parmenter, Forsythe, Rude & Dethmers. On October 5, 1971, with the approval of the managing partners of defendant law firm, he attended a probate and estate planning seminar in the City of Grand Rapids. As decedent specialized in this area of legal practice, he was expected to participate in the seminar and all his expenses were paid by defendant law firm. Defendant law firm’s principal office is in the City of Muskegon.
At the conclusion of the seminar, which lasted one hour, there was a cocktail party at which decedent imbibed two drinks of presumably alcoholic content. Decedent left the cocktail party at 6:15 p.m., and was next seen at a restaurant-bar two hours later in the City of Muskegon. The proprietor of this establishment testified that decedent did not appear to have been drinking, and he consumed no alcoholic beverages while there.
Subsequently, however, decedent appeared at the Nite Hawk Bar in Muskegon not long after 8 p.m., where he stayed until 2:30 a.m. when the bar closed. During this time he consumed several alcoholic beverages. It appears to be undisputed that decedent was a victim of alcoholism.
After leaving the Nite Hawk Bar, decedent was seen at an all-night restaurant, where he snacked on two hamburgers and an equal number of cups of coffee. According to the waitress, decedent gave evidence of being substantially intoxicated.
Decedent left the restaurant shortly after 3 a.m. At 3:12 a.m. the Muskegon Police received a telephone call reporting an incident on Getty Street. Police officers who responded to the call discovered decedent in his automobile, fatally wounded by a shotgun blast to the face. The investigating officer testified that, from the restaurant where decedent was last seen alive, Getty Street would be an appropriate route to decedent’s home.
The Workmen’s Compensation Appeal Board, after taking note of plaintiff’s argument that the case should be viewed as a deviation from a business trip, in which the deviation has ended and the return trip home has commenced, commented:
"The notion that the business mission involved here opened such floodgates as to give decedent the employment-related right to go off on his own for hours upon returning to his home base area in pursuit of [Bjacchanalian pleasures, and in the early morning hours of the next day when he decides to start the last leg of his journey home then re-enter the course of his employment, is so outrageous and fundamentally unreasonable as to be thoroughly ludicrous. Decedent’s conduct upon returning to Muskegon not only dwarfed whatever may have remained of the business purpose of the trip but effectively ended it and his work day.”
With this statement, we disagree.
The appeal board’s somewhat emotional rationale fails to withstand critical analysis because it obscures the central point at issue. The appeal board focused almost entirely on the nature of decedent’s deviation from his return business trip, and finding decedent’s "bar hopping” to be unre lated to his employment concluded that his fatal injuries were also unrelated to his employment.
However, under the circumstances of this case the nature of the deviation has no relevant connection with decedent’s untimely demise. Whether decedent spent eight hours, from the end of the seminar until resuming his trip home, in pursuit of "Bacchanalian pleasures”, or instead spent those hours engaged in more laudable conduct, such as by improving his mind in the public library or redeeming his soul at a religious institution of his choice, has no relationship to the circumstances or cause of his death.
Our decision might, of necessity, be different if decedent died as a result of drunk driving, for then his arguably wrongful conduct, becoming drunk in the service of his employer, would be the proximate cause of his death and it is well established that under such circumstances compensation may be denied. Crilly v Ballou, 353 Mich 303, 327; 91 NW2d 493 (1958). Nor do we find the mere passage of time controlling or even particularly relevant. Except in unusual circumstances not here present, the timing of the trip bears no relationship to its hazards, and it is the general hazards which allow liability for injury to be imposed on the employer in the first place. Stark v L E Myers Co, 58 Mich App 439, 443; 228 NW2d 411 (1975), lv den, 394 Mich 814.
Under the rule of Stark, supra, because decedent was engaged in a trip of special benefit to his employer, it is his employer who must bear the risk for one complete round trip. Deviations from the business route may or may not be covered, a question we do not here decide, but upon resumption of the trip out or the return trip the employer’s liability recommences. Again, if decedent had met his death in one of the places he visited we might well hold that plaintiff had no right to compensation.
The present case can properly be viewed as one in which decedent was simply a person who had the misfortune to be in the wrong place at the wrong time. Berry v Sugar Notch, 191 Pa 345; 43 A 240 (1899). The fact decedent was killed at 3 a.m. was mere happenstance, for he might just as well have been the victim of a shotgun-wielding felon at 6 p.m. if he had returned home in the most expeditious possible manner. Analytically, decedent was the victim of a "blind agency of death”, and he may as well have been struck by a meteorite, a bolt of lighting, or a tornado. If in fact decedent was on his way home at the time of his death, he was "in the course of his employment”, Stark v LE Myers Co, supra, and any injury inflicted upon him by an external force or agency would be compensable, for as a matter of law his employment would be the occasion of his injury. Whetro v Awkerman, 383 Mich 235; 174 NW2d 783; 42 ALR3d 375 (1970).
To be sure, a detour or deviation grossly disproportionate in time or distance to the business portion of the trip might in a proper case be deemed a disqualification for compensation benefits. See Thomas v Certified Refrigeration, Inc, 392 Mich 623, 635; 221 NW2d 378 (1974), Beaudry v Watkins, 191 Mich 445; 158 NW 16 (1916). Here, however, it could only be expected that decedent would return to his home or his office in time to begin the next working day; whether decedent opted to stay overnight in Grand Rapids or return directly to Muskegon was of no concern to his employer, since his workday was completed by the time the seminar ended. We reiterate that it was not the hazards of traffic or of the time of day when decedent resumed his trip home that proximately caused his death, or even contributed thereto.
The appeal board therefore erred in declaring plaintiffs decedent disqualified from benefits by virtue of the nature and length of his deviation where, as here, neither the passage of time nor the nature of the deviation proximately contributed to decedent’s fatal wound. We are unable to discern from the opinion of the board whether it foünd as fact that decedent was returning home at the time he was shot. The referee did clearly so find and the exhibits appear to support his conclusion. However we cannot take as a finding of fact the language in the appeal board opinion that "he perhaps started home by a circuitous route” or that "he supposedly started home” and elevate these phrases to a factual finding. By law, Const 1963, art 6, § 28, it is the appeal board, not this Court, which must draw conclusions from the evidence of record, subject to limited judicial review. Consequently, we remand this cause to the Workmen’s Compensation Appeal Board for further proceedings consistent with this opinion, to be supported by statement of law and facts supporting its ultimate conclusion. McClary v Wagoner, 16 Mich App 326; 167 NW2d 800 (1969). We do not retain jurisdiction. | [
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Per Curiam:
Defendant appeals as of right from an order granting plaintiffs summary judgment motion on the basis that the governmental benefits set-off provision of Michigan’s no-fault insurance act, MCLA 500.3109(1); MSA 24.13109(1), is unconstitutional. Defendant, plaintiffs insurer, reduced payments due plaintiff by the amount of Social Security survivor’s benefits received by plaintiff.
This case is controlled by Pollock v Frankenmuth Mutual Insurance Co, 79 Mich App 218; 261 NW2d 554 (1977). Pollock involved a set-off for workmen’s compensation benefits. Its reasoning is equally applicable to a set-off for Social Security benefits.
We also note that Richardson v Belcher, 404 US 78; 92 S Ct 254; 30 L Ed 2d 231 (1971), is inapposite, as that case found a rational basis for a Federal set-off statute in the need to preserve state workmen’s compensation programs, a consideration not applicable to the case at bar.
Affirmed. Costs to appellee. | [
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Bronson, J.
Plaintiff appeals by right the judgment of the circuit court affirming the determination of various administrative authorities of the Michigan Employment Security Commission (MESC) that plaintiff was disqualified from receiving unemployment benefits under MCL 421.29(l)(a); MSA 17.531(l)(a).
The underlying facts are undisputed. Plaintiff, David Laya, a plumber by trade, was living in Warren, Michigan, with his wife and two children when he was laid off in the spring of 1976. He reported to his local union in search of work, but, due to the poor economic conditions then existing, he was told no work was available in the community. He was told, however, that work was available through the union local in Cincinnati, Ohio. Despite the fact that he would have been eligible for unemployment benefits, plaintiff decided to make the trip to Ohio where he took a job with the Cebar Construction Company. Due to the 272-mile distance between his home in Warren and his employment in Ohio, plaintiff was forced to live in Ohio and travel home only on weekends. It soon became apparent that the great distance between home and work was difficult to drive, even on weekends, and was contributing to problems with plaintiff’s family life. After 25 days of work, plaintiff quit his job in Ohio and returned home to Warren on April 16, 1976.
Plaintiff applied for unemployment benefits on April 23, 1976, but on May 21, 1976, the MESC issued a determination that he was disqualified from receiving benefits under MCL 421.29(1)(a); MSA 17.531(l)(a) because he voluntarily left work in Ohio without good cause attributable to his employer. This decision was affirmed on redetermination by the MESC on June 4, 1976, by a hearing referee on February 9, 1977, by the MESC board of review (one member dissenting) on August 10, 1978, and by the circuit court on April 30, 1979. Because there is no dispute as to the underlying facts, the questions presented are questions of law. Baker v General Motors Corp, 74 Mich App 237, 244-245, fn 2; 254 NW2d 45 (1977), rev’d on other grounds 409 Mich 639 (1980).
The statutory section under which plaintiff was disqualified provides:
"An individual shall be disqualified for benefits in all cases in which he:
"(a) Has left work voluntarily without good cause attributable to the employer or employing unit.” MCL 421.29(l)(a); MSA 17.531(l)(a).
Plaintiff claims that, under the circumstances of this case, he did not quit "voluntarily” so that he is not disqualified under the statute. We have found no controlling Michigan authority directly on point, but the Supreme Court’s split decision in Lyons v Employment Security Comm, 363 Mich 201; 108 NW2d 849 (1961), is so factually similar that it warrants detailed consideration.
In Lyons, plaintiff was an auto worker with a home and family in Trenton when he was laid off. After learning that work was available in Indianapolis, plaintiff sought and found employment at an auto plant there. He lived and worked in Indiana during the week and made the 273-mile journey to his family on weekends. After about two and one-half weeks on the job, it became apparent to him that things were not working out. Transportation difficulties developed, the job was not turning out as he had expected, and problems were developing at home. After about two and one-half weeks of attempting to make this plan work, he quit and returned to Trénton.
His request for unemployment benefits was denied on the basis that he had voluntarily left his Indiana employment without good cause attributable to his employer, and the case eventually reached the Supreme Court. Although the denial of benefits was upheld, the justices split over the grounds of the decision. Three justices, led by Justice Carr, held that benefits were properly denied because the case presented a situation where, as a matter of law, the plaintiff clearly had left his job voluntarily and without good cause attributable to his employer. These justices expressed the opinion that, while plaintiff may have felt his quitting was justifiable, it was nevertheless based on wholly personal considerations which did not render the quit involuntary. Id., 217-227. Two other justices agreed with this result, but refused to view the case as properly presenting a question of law as to whether the plaintiff quit his job voluntarily. They viewed the issue of voluntariness as one of fact which had been decided against the plaintiff by the Employment Security Commission. Since they found record evidence to support such a finding, they held that judicial review was foreclosed. Id., 228-231.
The remaining three justices, in an opinion by Justice Edwards, id., 202-217, agreed with Justice Carr’s opinion in treating the issue of voluntariness as a question of law. After examining the facts and the purpose of the Employment Security Act, however, they reached an opposite conclusion and expressed the view that plaintiff had not voluntarily left his employment. These justices noted the lack of a philosophical consensus on the question of whether any human act may be said to be truly voluntary, but, for purposes of the Employment Security Act, they advocated a realistic standard which recognized that the physical distance between home and work, as well as the economic problems in trying to maintain two homes, could render a decision to quit as involuntary as it would be if compelled instead by law, the elements, or a serious illness.
"We hold that the word 'voluntary’ as used in section 29(l)(a)(l) must connote a decision based upon a choice between alternatives which ordinary men would find reasonable — not mere acquiescence to a result imposed by physical and economic facts utterly beyond the individual’s control.” Id., 216.
Because there was no majority as to the grounds of decision in Lyons, none of the three opinions is controlling. Negri v Slotkin, 397 Mich 105, 109; 244 NW2d 98 (1976), People v Anderson, 389 Mich 155, 170; 205 NW2d 461 (1973). In the face of this precedential void, we adopt the reasoning of Justice Edwards as the most persuasive. Because the factual situation in Lyons and in the instant case are practically indistinguishable, we adopt his result as well and hold that, as a matter of law, plaintiif did not leave his job "voluntarily”. Plaintiif was not faced with a choice between alternatives that ordinary persons would consider reasonable. He could choose to remain in Ohio, hundreds of miles from home, attempting to return on weekends and watching his family deteriorate, or he could quit. Such a choice is the same as no choice at all.
There are many other factors which bolster our conclusion in this regard, and we will devote the remainder of this opinion to their discussion. First, case law has held that even though an employee leaves a job through some act directly traceable to his or her own choice, the leaving is not necessarily "voluntary” under the Employment Security Act. For example, in Larson v Employment Security Comm, 2 Mich App 540; 140 NW2d 777 (1966), the plaintiif was injured on the job and received both unemployment compensation and worker’s compensation benefits due to the fact that he could no longer perform his job. The employer presented him with a document whereby he resigned his employment in return for a lump-sum settlement of his worker’s compensation claim. He testified that he signed the document due to economic pressures, but apparently without regard for its effect on his unemployment compensation. His unemployment benefits were terminated on the basis that he had voluntarily left his employment, but this Court held that the facts of the case did not establish a truly voluntary resignation:
"We do not deny that the claimant undoubtedly knew what he was doing when he signed this instrument, but it is another thing to say that he had a tenable alternative. Signing a settlement agreement under the circumstances in which Paul A. Larson found himself does not equate with leaving work voluntarily.
"Under the facts presented to us, voluntariness under these circumstances comes down to one thing. He may have 'voluntarily’ signed the settlement statement, which included the termination of employment, but it does not necessarily follow that he left work 'voluntarily.’ ” Id., 545, 546.
See also, Thomas v Employment Security Comm, 356 Mich 665; 97 NW2d 784 (1959) (claimant did not leave work voluntarily where discharged after being incarcerated on way to work because of traffic violation), Copper Range Co v Unemployment Compensation Comm, 320 Mich 460; 31 NW2d 692 (1948) (claimants did not leave work voluntarily when they voted to reject wage reduction which employer had made condition of keeping plant open). Accordingly, the fact that the plaintiff in the instant case quit his job in Ohio does not automatically mean that he quit it voluntarily.
Additional support for our conclusion is found in the purpose and structure of the Employment Security Act. It is undisputed that, if plaintiff had simply sat at home and watched television while waiting for work in his own community, he would have collected benefits. It also appears that, if he had been offered the Ohio job and refused it, his benefits would not have beeen jeopardized as the distance between work and home is a factor in determining whether offered work is "suitable”. MCL 421.29(6); MSA 17.531(6), Bingham v American Screw Products Co, 398 Mich 546, 563-564; 248 NW2d 537 (1976). The declaration of policy found in the employment security act provides:
"Declaration of policy. The legislature acting in the exercise of the police power of the state declares that the public policy of the state is as follows: Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state. Involuntary unemployment is a subject of general interest and concern which requires action by the legislature to prevent its spread and to lighten its burden which so often falls with crushing force upon the unemployed worker and his family, to the detriment of the welfare of the people of this state. Social security requires protection against this hazard of our economic life. Employers should be encouraged to provide stable employment. The systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment by the setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own, thus maintaining purchasing power and limiting the serious social consequences of relief assistance, is for the public good, and the general welfare of the people of this state.” MCL 421.2; MSA 17.502. (Emphasis added.)
It bears repeating that the courts should construe the provisions of the act liberally in order to give effect to this remedial policy. General Motors Corp v Employment Security Comm, 378 Mich 110, 117; 142 NW2d 686 (1966), Linski v Employment Security Comm, 358 Mich 239, 245; 99 NW2d 582 (1959). For this same reason, the disqualification provisions of the act should be narrowly construed. Chrysler Corp v DeVine, 92 Mich App 555, 558; 285 NW2d 373 (1979). It would be a sad commentary on our values and would be wholly inconsistent with the purposes of the act for our law to be interpreted in such a manner as to discourage the initiative displayed by the plaintiff in the instant case. Rather than remaining content with unemployment benefits, plaintiff chose to travel hundreds of miles to look for work — work he did not need to take in order to receive benefits. After this option proved unworkable, plaintiff abandoned his experiment and returned home. This is not a worker who is unemployed through his own fault. The fault is more directly assignable to the distance involved, and if there was any fault on the part of plaintiff, it lay only in his optimism.
"Because our hardy optimist took a chance (along with a job) and soon found he 'couldn’t make it,’ he would be held to be a quitter of the 'voluntary’ variety. As to him (and his wife and children), his decision in the Indianapolis employment office is to be made one of the sudden death variety.” Lyons, supra, 203 (Edwards, J., dissenting).
We could not remain faithful to the policy of the Employment Security Act were we to hold that this plaintiff, who attempted a job he was not required to accept and found it unsuitable within a month, was disqualified because he quit "voluntarily”.
This position has been accepted by other jurisdictions as well. In Herman v Florida Dep’t of Commerce, 323 So 2d 608 (Fla App, 1975), the claimant had been employed in a Miami Beach dress shop for 18 years when she left under circumstances not challenged as disqualifying on appeal. She then obtained employment in a pharmacy, but soon found the work there beyond her physical capabilities. In reversing an order denying her benefits because she had voluntarily left her job at the pharmacy, the Florida Court of Appeals stated:
"There is no contention in the brief filed upon the review that Ms. Herman would not be entitled to benefits if she had not taken the second job. It is our view that the Commission in approving the Appeals Referee’s decision has departed from the purpose of the Unemployment Compensation Law, which is 'remedial, humanitarian legislation * * * [that] should be liberally and broadly construed.’ * * * A claimant ought not be penalized for seeking to be employed even if, in her desire to be employed, she takes an unsuitable job and after a few days cannot continue the employment.” Id., 609. (Footnote omitted.)
In Wallace v Dep’t of Employment Security, 134 Vt 513; 365 A2d 517 (1976), the Supreme Court of Vermont was faced with the question of whether an unemployed teacher, who took a legally "unsuitable” job as a clerk/typist and then quit after ten days, was disqualified because she had voluntarily left her job without good cause attributable to her employer. Similar to the instant case, she could have refused the clerical job without adversely affecting her eligibility for benefits. The Court held she was entitled to benefits and responded to the Employment Security Board’s arguments as follows:
"The Employment Security Board maintains that the claimant, by accepting unsuitable employment at a time when she was eligible for benefits, forfeited or waived those benefits. To subscribe to such a draconian interpretation of the relevant provisions of the Unemployment Compensation Act would be to defeat the remedial nature of that legislation.” Id., 514.
In Wojcik v Division of Employment Security, 58 NJ 341; 277 A2d 529 (1971), the claimant had been employed as a chemical engineer when he was discharged and found eligible to receive unemployment compensation. After failing to find work in his own profession, the claimant accepted a job involving general factory labor. The job was, for several reasons, not legally "suitable”, so that he could have refused to accept such employment while continuing to receive benefits. After five weeks on the new job, he found he was unable to continue and quit. In determining that the claimant was not disqualified from receiving benefits, a unanimous Supreme Court of New Jersey stated:
"The question is whether a person who takes work he is not required to take should suffer the loss of unemployment benefits when he is unable to cope with that work. We do not believe he should. A contrary result would inhibit persons who are temporarily unemployed from taking work which, although not commensurate with their former employment, is nevertheless gainful activity which serves the general public interest. Cf. Campbell’s Soup Co v Div of Employment Security, supra, 13 NJ at 436 [100 A2d 287]. We do not believe a person should be penalized for so laudable an effort. The philosophy of the Unemployment Compensation Law, NJSA 43:21-1 et seq., is to encourage persons to work and, although the Law wisely recognizes that persons should not be compelled to accept employment which is unsuitable, it is contrary to the spirit of the Law to penalize persons who take such work. It is well known that today many highly trained persons are unable to find work in their own fields because of economic factors beyond their control. If they are to work at all, many must experiment in new areas which are not 'suitable’ under the statute. They should be given a reasonable time to measure their ability to cope with their new work, and to reapply for benefits if they cannot.” Id., 345-346.
We also note that, although not previously discussed in any appellate decision in this state, the MESC, as a matter of policy, allows an unemployed worker a similar "trial period” in which to determine if certain available work is suitable. In the decision of the MESC Board of Review in the matter of Randy W. Weller, claimant, and Nordco Drum, Inc., employer (appeal docket No. B7615964-54555, dated July 18, 1978), the board stated: "It is well established that a claimant has a right to a trial period on a new job without being subjected to a disqualification if he should decide that it is not suitable work for him.” In the instant case, the MESC concedes the existence of this policy, but argues that it is inapplicable to the facts before us. The MESC contends that the work itself must be unsuitable, such as in a case where a different degree of skill or knowledge is required that the claimant does not possess. This argument is without merit. The concept of "suitability” is not limited to the nature of the work itself and includes consideration of the distance which must be traveled to reach the job. MCL 421.29(6); MSA 17.531(6), Bingham, supra. The MESC also contends that, in any event, 25 days is too long a time to be considered a "trial period”. For reasons not readily apparent, the issue of whether plaintiff’s work in Ohio constituted a "trial period” was not decided at any of the various levels of decision making within the MESC. There is no factual finding as to whether 25 days was indeed too long to be considered a "trial period”. The only place that the concept was mentioned was in the opinion of the dissenting member of the Board of Review. Although our decision in the instant case is predicated on our holding that plaintiff did not quit voluntarily within the meaning of the statute, we do not believe that 25 days is an unreasonable period of time to constitute a trial period on the facts of the instant case. Larger periods of time have been accepted as "trial periods” when the facts were such that it could be expected that the unsuitable nature of the work would have become apparent at a sooner time. See Wojcik, supra.
The judgment of the circuit court is reversed, and the case remanded to the MESC for a determination of the amount of benefits due plaintiff.
Reversed.
R. M. Maher, P.J., concurred. | [
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E. A. Quinnell, J.
Plaintiff filed a complaint and moved for a declaratory judgment that defendant Lumbermen’s Mutual Insurance Company (hereinafter Lumbermen’s) was liable to him under an insurance policy for damages to a dwelling caused by the freezing of boiler and water pipes. Lumbermen’s denied liability and also moved for declaratory judgment. The trial court granted plaintiffs motion for declaratory judgment. Lumbermen’s now appeals as of right.
This case comes to this Court on stipulated facts. Defendant Lynas, the land contract vendor of the subject dwelling, agreed to tender possession to plaintiff on or before January 9, 1977. As part of the agreement, Lynas was permitted to remain in possession of the subject premises for 60 days after closing or until tender of possession was accomplished by turning over the keys to the premises. An appropriate proration of the occupancy charge was made. Also, as part of the agreement, plaintiff was to obtain insurance coverage on the subject property. Plaintiff obtained a policy of insurance from Lumbermen’s, naming both himself and Lynas as insureds. The premium was paid entirely by the plaintiff.
The closing of the deal took place at the hospital where defendant Lynas was then a patient. In late November, 1976, Lynas returned to the subject premises. Sometime during the first week of December, Lynas moved into an apartment for which he had taken out a lease. However, many of his household items and personal possessions remained within the subject dwelling. On December 6, 1976, Lynas notified the Marathon Oil Company that "the house has been sold, please discontinue service”.
In mid-December, 1976, plaintiff’s mother was informed by the realtor handling the sale of the possibility that plaintiff could move into the dwelling prior to January 10, 1977. However, no tender of possession by turning over the keys was accomplished.
On December 22, 1976, Lynas fell in his apartment and was admitted again to a hospital for treatment. Between December 25, 1976, and Janu ary 9, 1977, while Lynas was in the hospital, the supply of oil to the premises became depleted, rendering no heat to the dwelling and resulting in the water pipes freezing and bursting, causing extensive damage. On January 9, 1977, plaintiff entered the premises after Lynas tendered the keys to the premises. The damage had been discovered earlier that day by Lynas’ daughter when she was there to remove Lynas’ remaining property.
On January 11, 1977, plaintiff received $1,200, being the total amount escrowed for rent at the time of the closing. Following plaintiff’s notification of loss, Lumbermen’s denied coverage for the damages, maintaining that the premises were "vacant or unoccupied” within the meaning of the insurance policy.
The portion of the insurance policy upon which Lumbermen’s relies provided under the general heading of "PERILS INSURED AGAINST” that:
"This policy insures against direct loss to the property covered by the following perils as defined and limited herein:
"17. Freezing of plumbing, heating and air conditioning systems and domestic appliances, but excluding loss caused by and resulting from freezing while the building covered is vacant or unoccupied, unless the insured shall have exercised due diligence with respect to maintaining heat in the building, or unless the plumbing and heating systems and domestic appliances had been drained and the water supply shut off during such vácancy or unoccupancy.”
The trial court found that this provision was ambiguous and resorted to rules of construction in resolving the matter against Lumbermen’s. We agree with the lower court that the provision in question is ambiguous. Neither "vacant” nor "unoccupied” is defined in the insurance policy. There exists a continuum of possible uses between the two obvious points at which we can say that the clause in the policy does and does not apply. On the one hand, where residents of a house are physically inside the dwelling at the very moment of the incident resulting in the loss, it is apparent that the building is not "vacant or unoccupied”. On the other hand, where the building stands totally vacant, devoid of all signs of human habitation when the loss is suffered, it is equally clear that the building is "vacant or unoccupied”. A plethora of other possible uses is manifest, however, and the quality or extent of any given use may not readily lend itself to categorization as either vacant or full, occupied or unoccupied.
If there is any doubt or ambiguity in a contract of insurance which has been drafted by the insurer, it must be construed most favorably to the insured. Gorham v Peerless Life Ins Co, 368 Mich 335; 118 NW2d 306 (1962), Foremost Life Ins Co v Waters, 88 Mich App 599, 604; 278 NW2d 688 (1979). This rule of construction has particular force where contract exclusions and exceptions are under consideration. Whittaker Corp v Michigan Mutual Liability Co, 58 Mich App 34, 36; 227 NW2d 1 (1975), Kalamazoo Aviation, Inc v Royal Globe Ins Co, 70 Mich App 267, 270; 245 NW2d 754 (1976), lv den 399 Mich 871 (1977). This does not mean, however, that the insured must always prevail if there is an ambiguity. It is still the duty of the courts to determine the true intent of the parties insofar as this is possible. A patently unreasonable interpretation of a contractual ambiguity will not be employed merely to allow the insured to recover his losses. American Fellowship Mutual Ins Co v Ins Co of North America, 90 Mich App 633, 636; 282 NW2d 425 (1979).
Lumbermen’s contends that past decisions of the Michigan Supreme Court preclude the possibility of our construing the clause in dispute in plaintiffs favor. In Bonenfant v American Fire Ins Co, 76 Mich 653, 659; 43 NW 682 (1889), the Supreme Court held that: "Occupancy implies an actual use of the house as a dwelling place.” Lumbermen’s points to the fact that nobody was using the house as a dwelling at the time the pipes froze and burst and concludes that it was not occupied. We disagree. The proposition that occupancy implies an actual use of the premises as a dwelling house first found its way into Michigan jurisprudence in Shackelton v Sun Fire Office of London, England, 55 Mich 288, 292; 21 NW 343 (1884). However, in Shackelton, as in the instant case, the house in question was not being used as a dwelling as this term is normally used at the time of the loss. In Shackelton, the insured had rented the premises to tenants who had moved out of the house. She decided to occupy the premises herself. Toward this end, she moved furniture and goods into the building and readied it by cleaning. As her husband was ill and could only be left alone for short periods of time, the insured did not stay any nights at the house. The house ultimately burned while the insured was on business in northeastern Michigan before she ever began actually living in the house. Nonetheless, the Supreme Court ruled that the policy was still in force. Although occupancy may imply an actual use of the house as a dwelling place, circumstances may arise in which an insured can be said to be "occupying” a building without continuous possession.
Lumbermen’s also relies on Richards v Conti nental Ins Co of the City of New York, 83 Mich 508; 47 NW 350 (1890). In Richards, however, the insured had instructed his tenant to vacate the house, which the tenant did. Neither the landlord nor any other person was moving in to take his place. This is not the situation here where plaintiff intended to move into the house when defendant Lynas completely vacated it.
The lower court relied upon Krajenke v Preferred Mutual Ins Co, 68 Mich App 211; 242 NW2d 70 (1976), in reaching its conclusion that the policy remained in full force and effect. In Krajenke, the insured’s loss came at a time when she was on one of her numerous extended vacations. We held that her temporary physical absence from the residence did not render the house "vacant or unoccupied”. As Lumbermen’s notes, Krajenke can be distinguished from the case at bar. However, in our opinion the similarities between the cases are more important than the differences.
Although defendant Lynas did not intend to return and live in the subject dwelling, plaintiff most assuredly did. Thus, at all times there was a mere temporary physical absence from the house which did not render it unoccupied. Lumbermen’s knew at the time that it issued the policy that the subject dwelling was being sold under land contract and that the individuals who occupied the house would change. In many respects, what occurred here is just what happens when rental property is between tenants. As 43 Am Jur 2d, Insurance, § 951, p 900 states:
"The great majority of courts have adopted, as to rented property, a liberal construction of provisions against the property becoming vacant and unoccupied. They hold that it is impliedly contemplated by the parties to the contract that any temporary vacancy caused by or incident to a change or removal of tenants is not within the vacancy or unoccupancy clause, and that a reasonable time will be allowed the insured to obtain other tenants before the forfeiture of the policy may be effected. Following this principle, it has been held that a provision avoiding a policy of insurance if the buildings become unoccupied does not apply where a tenant has commenced moving and part of his goods have been taken away and part remain on the insured premises, or where the buildings are vacant for a few days pending a change of tenants. It has likewise been held that where an outgoing tenant has partially removed from the insured premises and the incoming tenant has partially occupied such premises, or where the owner has commenced renovating the premises for the incoming tenant, the premises are not vacant and unoccupied.” (Footnotes omitted.)
By analogy, it seems to us that, where the insurer is aware that the dwelling is being sold on a land contract, it is "impliedly contemplated by the parties to the (insurance) contract that any temporary vacancy caused by or incident to a change” to allow the old residents to leave the premises and the new residents to arrive is not within the vacancy clause, absent a clear expression of this intent in the insurance policy.
Having concluded that the premises were not "vacant or unoccupied”, we need not address the "due diligence” question.
We review actions in the nature of declaratory judgments de novo on the record. We will not reverse the findings of the lower court unless they are clearly erroneous. McComb v McComb, 9 Mich App 70, 74; 155 NW2d 860 (1967). In the case at bar, no error was committed.
Affirmed.
D. C. Riley, J., concurred. | [
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Cynar, J.
Following a bench trial, defendant was found guilty of receiving or concealing stolen property over the value of $100, MCL 750.535; MSA 28.803. He was sentenced to a term of from two and a half to five years in prison and appeals as a matter of right.
The lower court record and the transcript of proceedings do not contain any findings of fact or conclusions of law made by the trial judge.
Two issues are raised for our consideration. The first is whether the trial judge erred by not articulating the reasons for his decision in findings of fact. The second is whether defense counsel effectively waived any requirement that the court below state its findings of fact. We address these issues seriatim.
In People v Robert Jackson, 390 Mich 621, 627; 212 NW2d 918 (1973), Justice Levin, on behalf of a unanimous Court, stated that:
"We are now of the opinion that in criminal cases as well as civil cases a judge who sits without a jury is obliged to articulate the reasons for his decision in findings of fact. Findings of fact in a nonjury case serve a function paralleling the judge’s charge in a jury case, that of revealing the law applied by the fact finder.
Seizing on the dictum found in footnote 3 of the Court’s opinion in Robert Jackson, the prosecution now contends that the case at bar falls within the quoted exception to the otherwise absolute duty which devolves upon the trial court under GCR 1963, 517.1. In addition, the people cite People v Theron Jackson, 81 Mich App 18; 264 NW2d 101 (1978), in support of their position, claiming that the circumstances in that case are analogous to those in the case sub judice. We disagree.
In Theron Jackson, supra, the "only” issues for the trial judge to determine were whether the defendant acted in self-defense and whether he assaulted the complainant with an intent to murder. Under the circumstances, this Court concluded that a remand for fact finding by the trial court was unnecessary, citing to the exception found in footnote 3 of the Supreme Court’s opinion in Robert Jackson, supra.
The facts involved in Theron Jackson appear to be substantially more complicated than those in either of the cases mentioned in the footnote which states the exception. One involved an unarmed robbery in which the only point of contention was identification. Manifestly, the finding of guilt indicated a resolution of identification issue contrary to the defendant’s position. People v Green, 32 Mich App 482; 189 NW2d 122 (1971). The other involved a conviction for statutory rape in which the age of the victim was not in dispute and where the trial court, on the record, reviewed the testimony disclosing penetration, the only other element upon which proof was required. This Court found substantial compliance with the mandate of GCR 517.1, on those facts. People v George Scott, 21 Mich App 217; 175 NW2d 312 (1970).
We question the wisdom of this Court in Theron Jackson in applying the previously noted exception to the fact finding requirement in a case which seems to us an inappropriate one in which to employ it. Moreover, it is not entirely clear that the Supreme Court intended its footnote to set forth an exception. Its language may have evinced only an intent not to require remand in cases decided prior to its opinion in Robert Jackson.
Notwithstanding our reservations regarding this Court’s decision in Theron Jackson, we find the case at bar readily distinguishable from it. Upon the court’s request therefor, the prosecution in this case submitted proposed findings of fact and conclusions of law which contained 40 points of fact and eight points of law. Additionally, while the defendant herein did not contest the value of the property alleged to have been stolen, he did contest his possession thereof, his guilty knowledge, and the legal status of the goods. The testimony of prosecution witnesses, taken alone, creates issues of fact on each of these elements. By rendering a general verdict of guilty, the trial judge failed to disclose either the facts he found or the law he purported to apply. We conclude that this case required findings of fact and conclusions of law thereon under the rule announced in Robert Jackson. The failure to do so cannot be excused under the perceived exception to such obligation. See People v Stanford, 68 Mich App 168, 173-175; 242 NW2d 56 (1976).
However, we must yet decide whether this failure may be excused on account of a waiver of the fact finding requirement by defense counsel.
On the day set for sentencing (December 20, 1978), the prosecutor stated that it was his understanding that the court would state on the record its findings of fact before sentencing. The judge did not respond on the record. The court adjourned sentencing for a week, and the prosecutor asked if the court would then state its findings. The judge said he would. On December 27, 1978, the court delayed final sentencing for one year. The following exchange took place:
[Mr. Fenton, the prosecutor, speaking] "I respectfully request — the Court asked this same Prosecutor to remind you to read the Court’s findings from the non-jury trial that was conducted November 6, 7, 15 and 17 into the record.
"MR. FINN: Good morning, your Honor. For the Record, Michael D. Finn present in court with my two clients.
"THE COURT: Do you waive the reading of the findings?
"MR. FINN: Your Honor, I don’t think — excuse me. I don’t object to the waiver. I think the Record probably should reflect the Court’s findings of fact in the absence of a jury trial. I don’t know what specific findings the Court is referring to.
"THE COURT: All right. I’ll do that later this morning. Thank you. About eleven o’clock.
"MR. FENTON: Fine, your Honor.
"THE COURT: Could I see both counsel at the bench?
"(Discussion was held off the Record between the Court and both counsel.)
"THE COURT: Well, we may as well dispose of this matter now. Didn’t you wish me to pass sentence at this time?
"MR. FINN: Your Honor, it’s my request — I was confused as to the Court’s initial communication. It is my desire to waive the findings of fact and have the Court pass sentence at this time.”
These facts arguably fail to establish a knowing waiver by defense counsel. It is unclear from the brief, on-the-record discussion whether defendant’s counsel intended to waive the reading of the findings at that time only, intended to waive the reading of the findings in open court, or intended to waive any submission of findings of fact by the trial court. It is clear that the prosecution did not, at that time, intend to waive the submission of findings of fact. Absent an unequivocal attempted waiver, one should not be presumed.
However, even assuming, arguendo, that an adequate waiver is established in form, the question remains whether such waiver is of any legal effect. Robert Jackson, supra, is silent on the question of waiver of the fact-finding mandate.
The requirement of specific findings of fact in a bench trial has as its major purpose facilitation of appellate review. People v Matthews, 53 Mich App 232, 240; 218 NW2d 838 (1974). GCR 517.1 is most important, therefore, to a reviewing court. Decisions of this Court strongly intimate that GCR 517.1 is not a right of the parties, but a requirement for the effective administration of justice. Matthews, supra, Stanford, supra, People v Bruce Ramsey, 89 Mich App 468; 280 NW2d 565 (1979), People v Cook, 89 Mich 72; 279 NW2d 579 (1979).
A previous decision of this Court suggests that an attempt to waive would be ineffective. In Nicpon v Nicpon, 9 Mich App 373, 378; 157 NW2d 464 (1968), the parties did not raise the question of noncompliance with rule 517.1 on appeal, but the Court remanded, saying:
"Clear and complete findings by the trial judge are essential to enable us properly to exercise and not exceed our powers of review.
" 'We must know what a decision means before the duty becomes ours to say whether it is right or wrong.’ Mr. Justice Cardozo, for the Court, in United States v Chicago, M St P & P R Co (1935), 294 US 499, 511 (55 S Ct 462, 467; 79 L Ed 1023, 1032).
"The parties in the trial court did not request the trial judge to make findings of fact under the rule. However, the duty to make such findings of fact is not dependent upon a request, but is mandatory upon the trial judge.
"The failure of the trial court to comply with the mandates of GCR 1963, 517.1, requires us to set aside the judgment of divorce and remand the cause to the trial court for further proceedings and compliance with the rule.”
Of equal, if not greater, importance to our resolution of the issue is this Court’s approving citation in Matthews, supra, 240, of the following explanation of the need for specific findings of fact:
" 'Since rule 517 is based upon Federal rule 52(a), it may be presumed that the purpose of the Michigan rule is the same as that underlying the Federal rule. This purpose has been stated as follows:
"' "The purpose of rule 52(a) is to aid the appellate court by affording it clear understanding of the ground or basis of the decision of the trial court. Another purpose of requiring findings of fact and conclusions of law is to make definite just what is decided by the case in order to apply the# doctrines of estoppel and res judicata to future cases. Finally, and possibly most important, the requirement that findings of fact be made is intended to evoke care on the part of the trial judge in ascertaining the facts.” Baron and Holtzoff, Federal Practice and Procedure, § 1121, pp 481-482.’ 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 592.”
Although we are not bound by Federal decisions analyzing the above-cited Federal rule, they nonetheless provide a guide for decision on matters regarding GCR 517 heretofore not decided by Michigan appellate courts.
Addressing the question of whether a party may effectively waive the otherwise required findings of fact, the Court in Swanson v Levy, 509 F2d 859, 861 (CA 9, 1975), answered in the negative. Cf., United States v Horsfall, 270 F2d 107, 110 (CA 10, 1959). Although a civil case, Swanson does illuminate the necessity of fact finding as an aid to appellate review and lends credence to the notion that the primary intended beneficiary of such findings is the reviewing court, not the parties. Such reasoning is also consonant with a no-waiver rule of law. A no-waiver rule is all the more important in the criminal setting, where the privation of a defendant’s liberty almost always hangs in the balance. We choose to follow the Federal lead and hold, as a matter of Michigan law, that neither party to a criminal case may effectively waive the requirement that the trial court find the facts specially and state separately its conclusions of law thereon, which requirement is imposed pursuant to GCR 1963, 517.1 and Robert Jackson, supra.
We, therefore, remand this case to the trial court which shall, within 60 days, make findings of fact pursuant to GCR 1963, 517.1. We retain jurisdiction.
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. See People v Green, 32 Mich App 482; 189 NW2d 122 (1971). See, also, People v George Scott, 21 Mich App 217-218; 175 NW2d 312 (1970).” | [
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Mackenzie, J.
Plaintiff, Robert E. Ricciuti, was injured when his motorcycle skidded on a wet license plate lying in the road on an exit ramp, causing plaintiff to crash into a guardrail. Plaintiff, who had no-fault insurance coverage through Detroit Automobile Inter-Insurance Exchange (DAIIE) on a van he owned, brought this action under the no-fault act, MCL 500.3101 et seq.; MSA 24.13101 et seq., for personal protection insurance benefits. From the trial court’s order of July 11, 1979, granting summary judgment in favor of defendant under GCR 1963, 117.2(3), plaintiff appeals as of right.
Under Michigan law, a motorcyclist who suffers bodily injury as the result of an accident involving a motor vehicle is entitled to no-fault benefits. Underhill v Safeco Ins Co, 407 Mich 175; 284 NW2d 463 (1979).
For plaintiff to recover personal protection insurance benefits, however, the accident must have arisen "out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle”. MCL 500.3105; MSA 24.13105. In Rangas v Aetna Casualty & Surety Co, 64 Mich App 1, 17; 235 NW2d 42 (1975), lv den 395 Mich 787 (1975), the following test was set forth for determining whether an accident arises out of the ownership, operation, maintenance, or use of a motor vehicle:
"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 test in Rangas has been applied by several panels of this Court to deny no-fault recovery to the victim of an assault which occurred in or near an automobile. DAIIE v Higginbotham, 95 Mich App 213; 290 NW2d 414 (1980), Hamka v Automo bile Club of Michigan, 89 Mich App 644; 280 NW2d 512 (1979), O’Key v State Farm Mutual Automobile Ins Co, 89 Mich App 526; 280 NW2d 583 (1979). Likewise, recovery has been denied to a plaintiff who was not personally involved in an automobile accident but who suffered mental distress due to her daughter’s death in an automobile accident. Williams v Citizens Mutual Ins Co of America, 94 Mich App 762; 290 NW2d 76 (1980).
Plaintiff herein argues that his injuries arose out of the ownership, maintenance, or use of a motor vehicle because the accident would not have occurred had not the license plate fallen from an automobile being driven on the highway. Plaintiff does not allege that the accident occurred immediately after the license plate fell off the car but that it occurred at least two days after the car had lost its license plate. The fact that the license plate had once been attached to an automobile does not supply a sufficient causal connection between ownership, use, or maintenance of a motor vehicle and the injury under the Kangas analysis. Plaintiff has merely shown that his accident was incidentally or fortuitously related to the ownership, use, or maintenance of a motor vehicle.
Affirmed. Costs to defendant. | [
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M. J. Kelly, J.
Defendant appeals by leave granted the circuit court’s affirmance of a district court judgment, which found the defendant liable in damages for his negligent care of the plaintiffs impounded automobile.
On September 19, 1977, defendant accepted plaintiff’s 1968 Chevrolet Camaro for storage after local police impounded it for displaying improper license plates. The car was towed to defendant’s service station in the rural town of Capac, Michigan, where it was parked adjacent to the station in an area which was lighted at night. The doors were locked, and the key was placed on a rack inside the service station. There was no fence around plaintiff’s vehicle, and the station was unattended between 6 p.m. and 8 a.m. each day.
Periodically thereafter, plaintiff stopped at the defendant’s station to check on the condition of his car. On October 4, 1977, plaintiff asked defendant where his car was, it not being visible on defendant’s premises. Defendant could only respond that he had last seen the car at 6 p.m. on October 3, 1977, when he closed the station. At the time of trial in August, 1978, Michigan State Police records indicated the car had been stolen, a theory agreed to by the parties. Plaintiff filed suit against defendant, demanding return of his car or damages in the amount of $1,500. In a bench trial, the district court found defendant negligent in storing the automobile and awarded plaintiff $950 in damages. Specifically, the district court found that the defendant’s efforts to protect vehicles in his control did not meet the judicially noticed standard of care for garage owners in the City of Port Huron. The court found the Port Huron standard of care applicable to defendant’s business despite the rural character of the area surrounding Capac:
"The Court: Here is what I have to say about it: One, this man owned the car. Two, common law bailment, there is no doubt in my mind there was a bailment. The defendant wouldn’t have returned the car to him unless he got paid, he is not running a public charity.
"There [sic] question is was there negligence? I believe there was. The standard practice here in Port Huron is they lock them up in the yard. I know a lot of places where they take these cars, if they don’t have a yard, they chain the thing up if nobody is around; they put a chain through the wheels and around the axle; they do not leave the car unprotected.
"I find for the plaintiff and give him a judgment for nine hundred and fifty dollars, costs to be taxed.”
Defendant argues on appeal that the district court improperly measured his actions against a standard of care not applicable to the community in which his garage was located. We agree and reverse and remand for a new trial.
The liability of a garage keeper for vehicles left in his control is generally governed by MCL 256.541; MSA 9.1721, which provides:
"Whenever any damage shall be done to any motor vehicle while in the possession or under the care, custody or control of the owner, his agent or servant, or the keeper of any public garage or other establishment where such vehicle shall have been accepted for hire or gain, proof of such damage shall be prima facie evidence that such damage was the result of the negligent act of such owner or keeper of the place where such vehicle was stored.”
Under this statute a bailor need only prove a demand for and failure to return his bailed vehicle to establish a prima facie case of bailee negligence. General Exchange Ins Corp v Service Parking Grounds, Inc, 254 Mich 1; 235 NW 898 (1931). Once such a prima facie case is made out, the burden of going forward with the evidence shifts to the defendant who must show by a preponderance of the evidence his freedom from negligence or that his negligence was not a proximate cause of the plaintiffs injury. Loving v Howard Lare, Inc, 344 Mich 97, 99; 73 NW2d 290 (1955).
In its decision, the district court apparently rejected evidence presented by the plaintiff relating to the standard of care for rural garage owners, choosing instead to measure the defendant’s conduct against the judicially noticed Port Huron standard. For the reasons explained below, we find that the trial court erred in applying an improper standard of care to determine whether the defendant’s conduct was negligent.
The rule governing judicial notice of adjudicative facts is MRE 201(b), which provides:
"A judicially noticed fact must be one not subject to reasonable dispute in that it is either (1) generally known within the territorial jurisdiction of the trial court or (2) capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned.”
The Port Huron practice in storing impounded vehicles is not susceptible to either of the above definitions. In reaching this conclusion, we note that Michigan courts have recognized business standards and practices in rare cases. See e.g., Lane v B & J Theatres, Inc, 314 Mich 666; 23 NW2d 120 (1946), Minneapolis Fire & Marine Ins Co v Porter, 328 Mich 11; 43 NW2d 46 (1950), Loving v Howard Lare, Inc, supra. Additionally, nothing in the trial court record suggests the uniformity of practice necessary to show the standard of care. Tatro v Baker-FiskHugill Co, 215 Mich 623; 184 NW 449 (1921). In the instant case, the practice to be noticed was not shown to be generally known and there is no unquestionably accurate source to which the issue may be referred. Further, evidence was offered to show that the standard in Capac was different than that applied in more urban Port Huron. This testimony alone establishes that the standard practice was not susceptible of judicial notice.
In the absence of a judicially noticed standard of care, defendant was required to present evidence of the standard applicable to the Capac area and his compliance therewith, to defeat the plaintiffs prima facie case. Loving v Howard Lare, Inc, supra. To establish the local standard, defendant must show that his conduct equalled that of "a reasonable man under like circumstances”. Moning v Alfono, 400 Mich 425, 443; 254 NW2d 759 (1977). Further, in determining the reasonableness of the defendant’s actions, the trier of fact must weigh the utility of defendant’s conduct against the degree of risk thereby created. Meyers v Robb, 82 Mich App 549; 267 NW2d 450 (1978), McLaughlin v Great Lakes Contracting Co of Detroit, 82 Mich App 729; 267 NW2d 489 (1978).
At trial, the only evidence offered to establish the applicable standard of care was the testimony of plaintiffs witness William Diriex, a service station owner in Richmond, Michigan. Diriex provided the following limited explanation of the steps used by him to protect impounded vehicles:
"Mr. Diriex, would you agree that if a car was towed into your place of business that was lighted at night, the vehicle was locked up on the premises without a fence, the keys removed from the vehicle and secured inside the building, that would be adequate security?
"Well, it isn’t the best, but that is what we did do.
"That is standard in the industry, isn’t it?
"Yes.”
A careful reading of this testimony discloses that Diriex did not say the procedures followed by defendant met a perceived standard of care for rural garage owners. Rather, Diriex merely stated that the lack of additional protective measures was "standard” among such persons. In Marietta v Cliffs Ridge, Inc, 385 Mich 364, 369-370; 189 NW2d 208 (1971), the Supreme Court distinguished evi dence of the usage and practice of an industry from the conclusion that such practices established a standard of care:
"The customary usage and practice of the industry is relevant evidence to be used in determining whether or not this standard has been met. Such usage cannot, however, be determinative of the standard. As stated by Justice Holmes:
"’What usually is done may be evidence of what ought to be done, but what ought to be done is fixed by a standard of reasonable prudence, whether it usually is complied with or not.’ Texas and Pacifíc R Co v Behymer (1903), 189 US 468, 470 (23 S Ct 622, 47 L Ed 905).
"The danger inherent in allowing an 'industry’ standard to be the sole criteria for determining whether or not the defendant exercised due care was recognized in Witt v Chrysler Corporation (1969), 15 Mich App 576, 583 [167 NW2d 100]:
" 'To adopt this view would permit the industry to set its own standard of care.’ ”
Thus, the testimony relating to the practice of local garagemen does not ipso facto indicate the standard of care.
Under GCR 1963, 517.1, a trial court must state its findings of fact and conclusions of law thereon. This Court may only set aside such findings when they are clearly erroneous. Smith v Michigan State Accident Fund, 403 Mich 201; 267 NW2d 909 (1978). Further, a factual finding will be found "clearly erroneous” where the reviewing court is left with a definite and firm conviction that a mistake was committed. Tuttle v Dep’t of State Highways, 397 Mich 44; 243 NW2d 244 (1976).
The testimony offered at trial relating to the standard of care does not support the lower court’s factual conclusion regarding application of the Port Huron standard. Without the aid of its erroneous judicially noticed standard of care the trial court could not, based upon the evidence, conclude that defendant’s conduct fell short of that of a reasonably prudent man under similar circumstances. We thus find it necessary to reverse the decisions of the lower courts and remand the case for a new trial, at which evidence of the appropriate standard of care should be heard and findings of fact and conclusions of law be made thereon. Hensley v Colonial Dodge, Inc, 69 Mich App 597; 245 NW2d 142 (1976).
Reversed and remanded to the district court for new trial.
G. R. Corsiglia, J., concurred. | [
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Per Curiam:.
The defendant Joseph Handley, Jr., and codefendant Caroline Pegram were charged with first-degree murder, MCL 750.316; MSA 28.548, and with possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). Codefendant Pegram entered a plea of guilty to second-degree murder, MCL 750.317; MSA 28.549, and felony firearm, MCL 750.227b; MSA 28.424(2). Defendant Handley was tried before a jury in the Detroit Recorder’s Court, and, on June 14, 1978, he was convicted as charged. The defendant was sentenced to a term of life imprisonment for murder with an additional two-year mandatory sentence for the felony firearm conviction. On September 27, 1978, defendant’s motion for a new trial was denied. Defendant appeals as of right.
At approximately 11 a.m. on February 8, 1978, a passerby alerted several officers in a patrol car that there was a dead body lying in a ditch in a deserted area near Leland and Russell streets in Detroit. The officers found the body of a young black female whose head had been "blown open”. There was blood everywhere. A search of the immediate locale turned up a man’s gold ring lying 3 feet from the body, a man’s digital watch lying 20 feet from the body, a hat with blood on it, a belt from a coat, and a bloody potato chip bag. The body was later identified as Ira Marie Hesterley. An autopsy disclosed that the victim had died as the result of two gunshot wounds to the head. One of these was a "contact” wound, meaning that the muzzle of the gun had been placed right against the victim’s head when the gun was fired. There was also evidence of strangulation, as well as seven lacerations which were "blunt force” injuries which may have been the result of pistol whipping.
At 1:30 a.m. on February 9, 1978, the police observed a brown, two-door Mercury, which was reportedly involved in an armed robbery, parked in front of the Town Motel. A box of bullets was lying on the front seat. The officers arrested defen dant and Ms. Pegram in a motel room where they also found a gun. A blue parka with brown stains on the front was hanging in the closet. Later testing disclosed that these were bloodstains of the same type as that of the victim. There was also a small trace of blood of undetermined type on the front passenger door of the Mercury Cougar and a spent bullet casing under the driver’s seat. Ballistic tests revealed that the bullet slugs removed from the victim’s head had been fired from the gun recovered from defendant’s motel room.
The defendant had been dating the victim for about a month prior to her death. The defendant was also "going with” Ms. Pegram and shared an apartment with Pegram and her homosexual lover, Renee Smithson. Ms. Smithson identified the ring and watch recovered near the victim’s body as belonging to the defendant. She also identified the blue parka as belonging to the defendant.
Mitchell Sanders, a neighbor of the defendant, stated that he had a conversation with the defendant on the day of the murder. The defendant told Mitchell that earlier that day he (defendant), Pegram, and Hesterley had "jumped on some girl” and pulled her into a car. The defendant was afraid that Hesterley might go to the police, and defendant was worried because he did not want to go back to the penitentiary. The defendant said he did not know whether he should "take her out”, i.e., kill her. Shortly after this conversation, Sanders saw defendant leave the building with Ms. Hesterley. Michael Sanders Mitchell’s twin brother, said that he saw the defendant at the apartment building on the evening of February 7, 1978, some time before midnight. At that time, defendant allegedly said, "I’m going to fuck that bitch up”. Michael did not know who the "bitch” was.
At the trial, defense counsel introduced a taped statement made by the defendant and Ms. Pegram on February 9, 1978, and taken by Detroit Police Sergeant Gilbert Hill as follows. Ms. Pegram said that she told defendant she wanted "to beat [the victim’s] ass”, and he told her he knew of a place where she could beat the victim. When they arrived on the scene, defendant pushed the victim out of the car. He got out and hit the victim and pushed her to the ground. Pegram then attempted to strangle the victim and fell on the victim’s head with her knees a couple of times. Pegram then stabbed the victim in the head with a screwdriver and hit her on the head with a pistol. She then decided to kill her and shot her twice in the head, using defendant’s gun. Pegram said that she had not intended to kill the victim prior to this time and claimed that defendant did not know that she would shoot the victim. The defendant then stated that he had no idea that Ms. Hesterley was going to be killed when he struck her and that he told Pegram to stop the attack. Ms. Pegram did not testify at the trial.
On cross-examination, Sergeant Hill indicated that after making the taped statement, Pegram told him that the defendant had actually pistol whipped and shot the victim, but she did not want him to go back to prison as defendant was afraid he would be hurt if he returned to prison. Sergeant Hill also revealed that, in a statement made by Pegram to Sergeant Brantley prior to the taped statement, she admitted that she was the one who shot the victim twice.
We find that one of the issues raised by the defendant on appeal is dispositive. Defendant claims that the trial court’s jury instruction on lesser offenses was coercive because it required the jurors to acquit the defendant of the charged offense before considering any lesser offenses.
The instruction in question provided as follows:
"Quite obviously you must determine in effect whether or not, first, the defendant is guilty of first degree murder. If you find the evidence insufficient, if you find for example there is no premeditation, you should turn to determine whether or not the defendant is guilty of second degree murder. If you find the evidence is insufficient, finding, for example, there is no malice, then you must determine whether or not the defendant is guilty of manslaughter. The unlawful killing by some act of the defendant in the manner that I have described, if you find not insufficient evidence of manslaughter, then, of course, the defendant is entitled to acquittal on all three of the homicide charges.”
In the absence of manifest injustice, a failure to make timely objection to a jury instruction precludes appellate review. People v Dixon, 84 Mich App 675, 685; 270 NW2d 488 (1978), People v Sherman Hall, 77 Mich App 456; 258 NW2d 517 (1977). In the instant case, defense counsel failed to object to the allegedly erroneous jury instruction. However, this Court will review the issue despite the failure to object, since defendant was convicted of the charged crime leading to a conclusion that the instruction was indeed prejudicial. See People v Ray, 43 Mich App 45; 204 NW2d 38 (1972), People v Harmon, 54 Mich App 393; 221 NW2d 176 (1974).
In People v Hurst, 396 Mich 1, 10; 238 NW2d 6 (1976), the Michigan Supreme Court considered the following instruction:
"If you find either of the defendants not guilty of the charge of manslaughter then you should proceed to determine whether that defendant not guilty of the crime of manslaughter is guilty of the crime of assault and battery.”
Although reversal was not predicated on this basis, the Court disapproved of the instruction for the following reasons:
"We agree with Hurst that this instruction improperly interfered with the jury’s deliberations by requiring agreement of all twelve jurors to acquit the accused of the charged offense before considering a lesser offense.
"Under the judge’s instruction, even if the jurors were 11 to 1 for acquittal and a significant number of jurors desired to discuss the possibility of convicting the defendant of a lesser offense, consideration of a lesser offense could not begin unless the one juror holding out for conviction were [sic] dissuaded from that view.
"The instruction is unrealistic and improper.
"Our disposition of this case does not require that we decide whether the giving of the instruction was reversible error. In the future, however, such instructions should be avoided.” Id. (Footnote omitted.)
In the past, there were two lines of cases in this Court as to reversal for instructional errors which suggest an order of deliberations. One line of cases held that there was no reversible error unless the trial judge expressly told the jury that they had to reach a unanimous agreement of innocence on the principal offense before they could commence consideration of the lesser offenses. People v Ronald L Johnson, 74 Mich App 250; 253 NW2d 722 (1977), People v Shears, 73 Mich App 683; 252 NW2d 563 (1977), People v Erwin, 70 Mich App 60; 245 NW2d 173 (1976), People v Don Francisco Lopez, 65 Mich App 653; 237 NW2d 599 (1975). The other line of cases holds that an instruction which does not expressly require unanimity is reversible if there is "implied coercion”. People v Johnson, 83 Mich App 1; 268 NW2d 259 (1978), People v Summers, 73 Mich App 411; 251 NW2d 311 (1977), Harmon, supra.
This split was recently resolved in People v Mays, 407 Mich 619, 621; 288 NW2d 207 (1980), where the trial judge gave the following instruction:
"The first lesser included offense which you may consider, if you ñnd the defendant not guilty of ñrstdegree sexual conduct, you may consider whether the prosecutor has proven beyond a reasonable doubt the elements of criminal sexual conduct in the second degree.”
Defendant objected, and the Court agreed that the instruction was impliedly coercive and reversed defendant’s conviction. The Court added the following reservation:
"It is not error to suggest an order of consideration of offenses. The jury probably should be reminded to consider the charged offense first and it probably would be helpful to suggest that consideration be given to offenses with a 'greater’ number of elements before considering those with a 'lesser’ number.
"In this.respect an instruction will not be deemed erroneous unless the instruction or manner of giving it conveys the impression that there must be acquittal on one charge before consideration of another.
We find that the instruction in the instant case is indistinguishable from the one considered reversibly erroneous by the Supreme Court in Mays, supra, and we must, therefore, reverse defendant’s conviction and remand the case for a new trial.
We will now proceed to discuss several other issues raised by the defendant as they may recur on retrial.
The defendant contends that the trial court erred in denying defendant’s motion to suppress evidence of his prior criminal record. After listening to the arguments at the hearing on the motion, the trial judge merely stated, without any elaboration, that the motion was denied.
As defendant was tried in June of 1978, the admission of evidence of his prior convictions for impeachment purposes is governed by MRE 609, which provides in pertinent part:
"(a) General rule. For the purpose of attacking the credibility of a witness, evidence that he has been convicted of a crime shall be admitted if elicited from him or established by public record during cross-examination but only if
"(1) the crime was punishable by death or imprisonment in excess of one year under the law under which he was convicted, or the crime involved theft, dishonesty or false statement, regardless of the punishment, and
"(2) the court determines that the probative value of admitting this evidence on the issue of credibility outweighs its prejudicial effect.”
MRE 609(a)(1) retains the rule set forth in People v Jackson, 391 Mich 323; 217 NW2d 22 (1974), which requires the trial court to recognize that it has the discretion to admit or exclude references to a defendant’s prior convictions.
In People v Crawford, 83 Mich App 35, 38-39; 268 NW2d 275 (1978), this Court held that the Jackson rule envisioned a true exercise of discretion by balancing the competing factors involved. The Court set out the following criteria which were to be considered:
"The factors which the judge must weigh in making his determination include: (1) the nature of the prior offense (did it involve an offense which directly bears on credibility, such as perjury?), (2) whether it is for substantially the same conduct for which the defendant is on trial (are the offenses so closely related that the danger that the jury will consider the defendant a 'bad man’ or infer that because he was previously convicted he likely committed this crime, and therefore create prejudice which outweighs the probative value on the issue of credibility?), and (3) the effect on the decisional process if the accused does not testify out of fear of impeachment by prior convictions (are there alternative means of presenting a defense which would not require the defendant’s testimony, i.e., can his side of the story be presented, or are there alternative, less prejudicial means of impeaching the defendant?).”
In People v Joyner, 93 Mich App 554, 560-561; 287 NW2d 286 (1979), this Court stated that in ruling on the admission of evidence of a defendant’s prior convictions, the trial court should note its discretion and the factors underlying its decision on the record, or the record should specifically indicate its cognizance of the Crawford criteria.
We, therefore, caution the trial court that on retrial his ruling on the admission of evidence of defendant’s prior convictions should contain the fact that he recognizes his discretion and has considered the Crawford criteria in reaching his decision.
The defendant also alleges that the trial court erred reversibly in admitting into evidence the gun which was recovered subsequent to a warrant-less search of the motel room where defendant and Pegram were arrested. Defendant argues that the scope of the search violated the standard of Chimel v California, 395 US 752; 89 S Ct 2034; 23 L Ed 2d 685 (1969), and that, as the fruit of an illegal search and seizure, the gun should have been suppressed.
A warrantless search and seizure is unreasonable per se and violates the Fourth Amendment of the United States Constitution as well as art 1, § 11 of the state constitution unless it is shown to be within one of the exceptions to the warrant requirement. The people bear the burden of showing that an exception to the warrant requirement exists. People v Reed, 393 Mich 342, 362; 224 NW2d 867 (1975).
The facts surrounding the search and seizure in the instant case may be summarized as follows. Detroit Police Officer Harris and his crew spotted a car, which had allegedly been involved in an armed robbery, parked in front of the Town Motel at about 1:30 a.m. on February 9, 1978. When he looked through the window, Harris saw a box of bullets on the front seat of the car. Harris spoke with the manager of the motel, then proceeded to unit six. Harris and approximately five other officers entered the motel room after defendant opened the door. The defendant and Pegram were clad only in their underwear. Both the defendant and Pegram were placed under arrest for armed robbery and were told to dress. Harris noticed that the refrigerator had been moved from its position near the cabinet. When he went over and shined his flashlight into this space, he saw the barrel of a gun propped against some water pipes at the rear of the refrigerator. Harris retrieved the gun. At that time, neither the defendant nor Pegram had been handcuffed. Pegram was standing two feet to his right, while the defendant was across the room.
The parameters of a search incident to an arrest as an exception to the warrant requirement were set forth in Chimel, supra, 763:
"There is ample justification, therefore, for a search of the arrestee’s person and the area 'within his immediate control’ — construing that phrase to mean the area from within which he might gain possession of a weapon or destructible evidence.
"There is no comparable justification, however, for routinely searching any room other than that in which an arrest occurs — or, for that matter, for searching through all the desk drawers or other closed or concealed areas in that room itself. Such searches, in the absence of well-recognized exceptions, may be made only under the authority of a search warrant.” (Footnote omitted.)
We find that the search and seizure in the instant case fits within the scope of the exception in Chimel. Codefendant Pegram was only two feet away from Harris and had not been handcuffed so that the gun behind the refrigerator could reasonably be viewed as being within her immediate control. Therefore, the trial court did not err in denying defendant’s motion to suppress the gun.
We find that the other issues raised by the defendant are without merit and decline to discuss them in view of the fact that there will be a new trial.
Reversed and remanded for a new trial.
“1 Instruction to this effect may be given:
" 'You should begin your deliberations by considering (the charged offense). Unless all of you agree to find the defendant guilty of (the charged offense), you may consider the other offenses upon which I have instructed you in the order in which the instructions were given. You may consider any of those offenses without having reached agreement concerning the defendant’s guilt or innocence of any other of those offenses.’
"The foregoing instruction is suggested but is not mandatory. Another formulation consistent with this opinion or eschewing instruction on this subject is not error.” Id., 623._ | [
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Cynar, J.
Plaintiff, Philip McCallister, filed for a divorce on February 3, 1978. A judgment of divorce was granted following trial in Wayne County Circuit Court. Plaintiff appeals as a matter of right pursuant to GCR 1963, 806.1.
Plaintiff, Philip McCallister, and defendant, Mary McCallister, were married on April 13, 1968. This was the second marriage for both of the parties. Each previous marriage of the parties ended in a divorce. The plaintiff had three children by his previous marriage, and the defendant had four children by her previous marriage. No children were born as a result of plaintiff’s and defendant’s marriage. At the date of trial, November 16, 1978, the plaintiff was 50 years old, and the defendant was 51 years of age.
At the time of trial, plaintiff was paying child support for one of his children by his first marriage. Plaintiff paid alimony to his first wife while he was married to defendant. During this marriage, plaintiff made contributions to the support of defendant’s children by her previous marriage.
At the time of the parties’ marriage on April 13, 1968, defendant was renting a house in Pontiac Township owned by her brother, and both parties decided to continue to rent the Pontiac Township residence. The plaintiff testified that, after approximately three years of leasing the house in Pontiac Township to the parties, the defendant’s brother expressed a desire to sell the premises. Plaintiff testified that, since he was not able to finance property on the east side and defendant was not willing to move to the east side at that time, the parties purchased the Pontiac Township residence. The plaintiff stated that he decided to move from the Pontiac Township residence because neither his employment, children, or recreation (sailing his boat) were located close to the Pontiac residence. The plaintiff testified that, although the defendant was not delighted at the prospect of moving to Grosse Pointe, she agreed to the move.
The defendant testified that she was unwilling to move because the move would affect her job, that she was a tenured speech therapist in the Pontiac school system at the time the parties were married, and that in 1973, her gross income from such a position was $15,143.83. The reasons given by defendant for her unwillingness to move were that her tenured position was in the City of Pontiac, that her son was finishing his junior year in high school, and that her daughter was finishing a program at Oakland Community College. According to the defendant, the move was to the advantage of her husband and to her disadvantage. The plaintiff testified that the defendant had stated that one of her objections to the move was that her specialty was in short demand on the east side of town. The defendant, at the time of trial, was working 20 hours per week as a receptionist at the information desk at Bon Secours Hospital in Grosse Pointe.
In June of 1974, the parties purchased a condominium in Grosse Pointe. The Pontiac Township residence was sold for $33,750, and the parties used some of the money they received to put 20 percent down on the purchase price of the Grosse Pointe residence. At the time of trial, the equity in the Grosse Pointe home was $33,000.
After the parties moved from Pontiac Township to Grosse Pointe, some six years after their marriage, defendant took a leave of absence from her employment. She failed to pick up her option to renew her employment, thereby losing her tenure. Plaintiff testified that, within a year after they were married, the defendant had told him that she was tired of working and that she thought he should take care of her and that the plaintiff replied that, with the responsibilities of seven children and college, he thought she should con tinue to work. Plaintiff further testified that, when defendant told him she had taken a leave of absence, he told her that he thought she should attempt to find employment right away, either on the east side of town or that she should continue her employment in Pontiac. Plaintiff testified that he offered to pay for the defendant’s further education and he stated that she was not interested. Plaintiff testified that he made it clear to her from the time that she took her leave of absence that he was not in favor of it.
Defendant testified that she liked working. She stated that she made efforts to secure employment on the east side of town prior to the expiration of her one year leave of absence from the Pontiac school system, however, such efforts were fruitless. The defendant testified that the plaintiff told her he had decided he did not want her to continue to work. The defendant further testified that the plaintiff told her that he was making good money and things were looking good so that she could relax and rely on him.
On cross-examination, the defendant stated that plaintiff had objected to her leaving her job. Defendant acknowledged that plaintiff had offered to pay for her further education. Defendant stated that she went to register at Wayne State University but never completed registration.
Plaintiff testified at trial that the defendant became extremely critical of him. Plaintiff testified that both defendant and he had gone to a marriage counselor to help save their marriage. Plaintiff testified that the defendant told him on several occasions that she did not marry him to cook his meals or to do his laundry. Plaintiff stated that for many years he went to a laundromat, that the defendant was unwilling to recognize their level of income and spent too much money, that the defendant refused to vacation with him, and that she had offered little companionship to the plaintiff in the last few years of their marriage.
The plaintiff admitted on cross-examination that he was residing, at the time of trial, with another woman. The plaintiff testified that he met this other woman on April 7, 1978, that he had taken three trips with this other woman, and that he contributed to the expenses for meals while he stayed at her residence.
Plaintiff is a civil engineer who has been employed by the United States Army Corps of Engineers since 1958, earning some $44,500 a year at the time of trial. Sharlyn Wilkerson, a personnel management specialist for the Corps of Engineers who was subpoenaed to testify at trial, stated that plaintiff had a life insurance policy which would pay $47,000 upon his death. Ms. Wilkerson further testified that, on June 28, 1978, the named beneficiary of said policy was changed from a person whom she was unable to identify to the three daughters of plaintiff by his previous marriage. Ms. Wilkerson testified that plaintiff had a pension fund which, at the end of the 1977 calendar year, contained the sum of $26,028.62, and that plaintiff contributed to the pension fund at a rate of approximately seven percent of his salary.
There was testimony that, at the time of trial, the martial home had an equity of $33,000, that plaintiff owned a sailboat worth approximately $5,000, that the sailboat was security for $3,000 of an $8,500 debt owed to the Detroit Federal Employees Credit Union and that plaintiff owned a 1973 Chevrolet, while the defendant owned a 1969 Ford and a 1978 Chevrolet.
Defendant testified that she did not want to break the bonds of matrimony.
The trial judge did not include in his opinion a statement regarding the disposition of the debts of the parties. While this Court hears appeals in divorce cases de novo, it does not generally reverse a property settlement rendered by the trial court unless it is convinced it would have reached a different result had it sat as the trier of fact. Irish v Irish, 59 Mich App 635, 636; 229 NW2d 874 (1975). Several factors, including the source of the property, contribution towards its acquisition, the length of the marriage, the needs of the parties, and the earning abilities of the parties affect the equitable distribution of property in a divorce judgment. Johnson v Johnson, 346 Mich 418, 431; 78 NW2d 216 (1956), Hostetler v Hostetler, 46 Mich App 724, 726; 208 NW2d 596 (1973), inter alia.
Plaintiff testified at the time of trial that he owed $8,500 to the Detroit Federal Employees Credit Union, of which $3,000 of this debt was secured by plaintiffs boat. The money that plaintiff borrowed was used to purchase the Grosse Pointe residence. Plaintiff testified that he had previously borrowed money from the credit union to purchase the Pontiac Township house.
Defendant testified that she was not sure whether the money the parties put down on the Pontiac house came from their joint checking account or from the credit union. Defendant testified that the money she contributed to the joint checking account was used to pay back the credit union. Plaintiff testified on cross-examination that the money borrowed from the credit union was a revolving account and that the plaintiff had used the money in the account in the past for upkeep on his sailboat. Plaintiff stated that, for most of the years of their marriage, the account had also been used for defendant’s expenses. Arguably, at least some of the debt owed the credit union was incurred by the defendant during the marriage, since the plaintiff testified that the defendant also used the account.
The trial judge made no statement in his opinion as to which of the parties, or both, owed the debt to the credit union or the amount owed by each party, if any. A finding of fact on this issue should have been made pursuant to GCR 1963, 517.1.
The facts do not clearly indicate that, had this Court decided the case in the first instance, the amount of $2,700 awarded as attorney fees on behalf of the defendant-wife would not have been allowed. Irish, supra.
The trial court, relying on Kretzschmar v Kretzschmar, 48 Mich App 279; 210 NW2d 352 (1973), considered the plaintiffs living with another woman while still married to the defendant, as well as an indication of dissipation of some of the plaintiff’s income for the benefit of the other woman. The court awarded alimony in the amount of $500 a month until defendant remarried, died, or established residence with a male not related to her for a period of 31 consecutive days in any 12-month period. The award also provided that, should the defendant become employed at an annual income of $13,500 or more at any time prior to January 1, 1982, alimony shall be reduced to $380 per month. After January 1, 1982, if defendant is employed at $15,000 a year or more, alimony shall be reduced to $380 per month.
While the husband argues that there was a marriage breakdown before the divorce was filed and denies dissipating his earnings for the benefit of the other woman, the record is sufficient to support the trial court’s award of alimony to the wife based on disparity in amount as well as capability for earning income. However, to award $500 or $380 as proposed, no matter what change of circumstances occurs in this case in the future, constitutes a clear abuse of discretion.
This Court has held that a pension interest should be included as a marital asset where the pension was created in part from deductions from one of the marriage partners’ salary. Tigner v Tigner, 90 Mich App 787; 282 NW2d 481 (1979), Miller v Miller, 83 Mich App 672; 269 NW2d 264 (1978). See also Hutchins v Hutchins, 71 Mich App 361; 248 NW2d 272 (1976).
In Miller, supra, 677, this Court remanded the case to the trial court, stating that it should:
"(1) find whether the pension interests have a reasonably ascertainable value or whether the interests are expectancies or subject to contingencies, (2) determine that value, if any, and (3) applying equitable principles, allocate the distributable marital property between the parties. To aid the trial court on remand, we reiterate that pension interests are distributable only if they are marital property with a reasonably ascertainable value. Interests which are contingent upon the happening of an event which may or may not occur are not distributable. The party seeking to include the interest in the marital estate bears the burden of proving a reasonably ascertainable value; if the burden is not met, the interest should not be considered an asset subject to distribution.”
It appears that the trial judge determined that the value of the pension benefits as of the date of trial were $26,088.62. The plaintiff had been contributing to the pension for 20 years and had been married to the defendant for ten of those years. The trial court considered somewhat more than half of plaintiff’s $26,088.62 pension as an asset of the marriage. Plaintiff will not receive any pension payments until 1986.
There is no dispute that the equity in the marital home, at the time of the trial, was $33,000. The trial court reasoned that, since the plaintiff-husband’s pension interest cannot be divided, the defendant-wife’s interest in the pension should be compensated by awarding to her the marital home, with a second lien of $10,000 going to plaintiff. The trial court did not determine how or when the second lien of $10,000 is to be paid off and did not order payment of interest.
The record appears to support an award to each party of $23,022.21 which appears to be arrived at by taking one half of half of the pension, which amounts to $6,522.21, and one half of the marital home equity of $33,000 or $16,500. Be that as it may, the husband will not draw on the pension until 1986 and the wife is awarded the marital home on which the husband has a second lien of $10,000 to be paid someday. The trial court did abuse its discretion on this phase of the property settlement.
This case is remanded to the trial court to make a finding of fact concerning the extent, if any, of each party’s obligation to pay off the credit union debt. Further, that part of the award concerned with payment of alimony is amended to permit filing of a petition for a hearing to determine if a change of circumstances has occurred, and in the event a change of circumstances has occurred the alimony payments are to be modified accordingly. The provision for paying off the second lien of $10,000 on the marital home is reversed. Defendant is given 60 days to pay off the plaintiff and, upon failing to do so, the home is to be sold and the amount owing to the plaintiff on the second lien is to be paid to the plaintiff from the proceeds.
The judgment of the trial court is reversed in part and affirmed in part. No costs or attorney fees are awarded on appeal to either side, neither side having prevailed in full. | [
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Per Curiam.
Defendant pled guilty in Recorder’s Court of Detroit to robbery armed, MCL 750.529; MSA 28.797, and to possession of a firearm in the commission of or attempt to commit a felony, MCL 750.227b; MSA 28.424(2). He appeals from his sentences on these plea-based convictions as of right, pursuant to GCR 1963, 806.1.
One question is presented by defendant in his appeal, that being: Did the trial court err in failing to give defendant credit for time spent in a Georgia jail while extradition proceedings brought by the State of Michigan were pending? The prosecution has not filed an answer to defendant’s brief on appeal. We, therefore, assume that appellant’s contentions are undisputed.
At the sentencing hearing, the following colloquy occurred:
"THE COURT: The sentence of the Court will be one to twenty years on Count I, robbery armed, and the mandatory two years on the possession of a firearm.
"He will be given credit for 35 days on Count II only
"MR. TROPP [Defense counsel]: He tells me that he did quite a bit of time down in Georgia. Evidently was a period of time they had him in custody — three months, he says — to bring him up here to Michigan.
"Is there a chance he can get credit for that?
"THE COURT: He didn’t waive extradition down there. That’s why it took three months.
"MR. TROPP: He said he signed it when they told him to sign it.
"THE COURT: Well, he waited three months.
"MR. TROPP: Is there any chance of him getting credit for that?
"THE COURT: No, he can’t get credit for that.
"MR. TROPP: When they told him to sign, he signed, he said.”
We agree that the trial court erred in failing to give defendant credit for the time spent in the Georgia jail while awaiting extradition to Michigan. The applicable statute provides:
"Whenever any person is hereafter convicted of any crime within this state and has served any time in jail prior to sentencing because of being denied or unable to furnish bond for the offense of which he is convicted, the trial court in imposing sentence shall specifically grant credit against the sentence for such time served in jail prior to sentencing.” MCL 769.11b; MSA 28.1083(2).
In People v Havey, 11 Mich App 69; 160 NW2d 629 (1968), lv den 381 Mich 756 (1968), the Court of Appeals ruled that a defendant who was held in custody in the State of Oregon while awaiting extradition to Michigan was entitled to credit for the time spent in the Oregon jail.
Relying on the precursor to the above-cited statute, the Havey case stated:
"Statutes relating to the computation of time served under a sentence, and the allowance of credit thereon for time served under particular circumstances, were designed to confer a benefit on the person lawfully detained, and may not be interpreted to his detriment.” Havey, supra, 82.
The Court then continued:
"The right to credit under the statute is not limited to the time spent in prison or jail in a jurisdiction, but also includes the time spent in jail in another jurisdiction, in which he was apprehended, preliminary to being sent back for trial.” Id.
Because Havey is exactly on point with the case at bar, we remand to the trial court for a determination of the number of days of credit to which defendant is entitled and for imposition of a new sentence in accordance therewith. We do not retain jurisdiction.
Reversed and remanded. | [
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Per Curiam.
Defendant Second Injury Fund (Fund) appeals as on leave granted the decision of the Workmen’s Compensation Appeal Board (WCAB) which reversed the decision of an administrative law judge ordering plaintiff to submit to medical examinations requested by the Fund. The WCAB additionally ordered the Fund to pay supplemental and basic benefits due plaintiff as a totally and permanently disabled employee under MCL 418.521; MSA 17.237(521).
On February 4, 1974, plaintiff fell approximately eight feet and severely injured his left hand. On April 15, 1976, plaintiff petitioned for a lump sum advance payment of the compensation being paid as a result of the hand injury for the stated purpose of paying off the balances on various charge accounts on which plaintiff was paying 18% annual interest. Pursuant to a hearing held January 4, 1977, the administrative law judge found that plaintiff had received a personal injury arising out of and in the course of his employment and that on the date of the injury he had one dependent and earned $243.62 per week at unskilled labor. During the hearing, plaintiff testified that he had had no vision in his left eye since he was three years old, and, based on this testimony, the administrative law judge found that plaintiff had total and permanent loss of vision in the left eye. The defendant employer and its carrier were ordered to pay compensation at the rate of $106 per week for a period of 215 weeks for the "permanent and total loss of industrial use of left hand”. The plaintiff, the employer, and the insurance carrier stipulated to this award. The Fund was not directly involved in any of these proceedings. As requested by plaintiff, the administrative law judge ordered a lump-sum partial advance payment, thereby reducing plaintiff’s weekly benefits to $52 during the period of time between June 27, 1977, and February 8, 1978.
On June 17, 1977, plaintiff filed a petition for hearing against the Fund claiming total and permanent disability benefits pursuant to MCL 418.521(1); MSA 17.237(521X1) for the loss of the left hand and the prior loss of the left eye. The Fund requested that plaintiff undergo medical examinations regarding both the hand and the eye, but plaintiff refused to do so on advice of counsel. The Fund then brought a motion for an order requiring plaintiff to submit to the medical examinations. After a hearing held January 30, 1978, an administrative law judge granted the request. Plaintiff appealed this order to the WCAB which, on July 25, 1978, reversed the order of the administrative law judge and ordered the Fund to pay plaintiff basic and supplemental benefits as a totally and permanently disabled person based on the decision of the Supreme Court in White v Weinberger Builders, Inc, 397 Mich 23; 242 NW2d 427 (1976).
The Fund then sought leave to appeal to this Court, which was denied. The Fund sought leave to appeal to the Supreme Court and the Supreme Court in lieu of granting leave to appeal remanded the case to this Court for plenary consideration as on leave granted. Harris v Harlan Electrical Construction Co, 406 Mich 895 (1979).
The issue on appeal is whether the administrative law judge’s findings that plaintiff suffered a total and permanent loss of the industrial use of his left hand and a prior total and permanent loss of vision in his left eye are res judicata and binding on the Fund so that plaintiff is entitled to be compensated by the Fund pursuant to MCL 418.521(1); MSA 17.237(521)(1).
The Supreme Court has recently resolved a conflict in prior cases as to the proper scope of res judicata in worker’s compensation cases. In Gose v Monroe Auto Equipment Co, 409 Mich 147; 294 NW2d 165 (1980), the Court held that the "broad” application of the principle was correct and that a claimant is barred from litigating those claims actually litigated in a prior proceeding between the parties as well as those claims which a claimant could have brought but did not. In addition, regardless of the scope of the doctrine, a prior determination is binding in subsequent proceedings between the parties only where resolution of the specific issue was necessary to the first action and not merely collateral. Hlady v Wolverine Bolt Co, 393 Mich 368, 375-377; 224 NW2d 856 (1975), Herbert v Ford Motor Co, 285 Mich 607, 613; 281 NW 374 (1938). See Gose, supra, 159 fn 1. Accordingly, we. are faced with two questions: whether there is a sufficient identity of parties and whether the issues now sought to be raised by the Fund were necessarily determined in the first action.
The initial question may be answered by reference to the Supreme Court’s decision in White, supra, where the Court held that the Fund’s rights were derivative of the employer so that, where the employee and the employer enter into a redemption agreement prior to any adjudication of responsibility, all liability has been redeemed and the employee cannot proceed further against the Fund. The timing of the settlement is crucial; if the parties enter into a redemption agreement after a determination of liability or stipulate to the results of a hearing adjudicating responsibility on the part of the employer, the Fund is bound by that decision through its jural identity with the employer. Grice v General Motors Corp, 407 Mich 465; 286 NW2d 238 (1979), Pleiness v Mueller Brass Co, 56 Mich App 169; 223 NW2d 634 (1974). Accordingly, although the Fund was not directly a party to the first proceeding, for the purposes of applying the doctrine of res judicata, it shares an identity with the employer.
The next question is whether the facts necessary for plaintiff to prevail in his action against the Fund were determined in the prior action. In the instant case, plaintiff needs to show the compensable loss of the left hand preceded by the loss of vision in the left eye. The issue of whether plaintiff had suffered the permanent and total loss of the industrial use of his left hand was clearly determined in his action against the employer requesting a lump sum advance payment. Furthermore, it was necessary to make such a determination in order to properly resolve the matter. This determination is binding on the Fund, and the WCAB was correct in reversing the administrative law judge’s order that plaintiff submit to a physical examination of his hand. As regards the prior loss of vision in plaintiffs left eye, testimony was presented by plaintiff that he had been without vision in the eye since he was three years old, and the administrative law judge "found” that plaintiff, indeed, had a total and permanent loss of vision in the eye. The question is whether this "finding” was necessary to a proper determination of the questions presented at that time. If not, the finding is not binding on the Fund.
After reviewing the pertinent sections of the Worker’s Disability Compensation Act, we do not believe it was necessary for the administrative law judge to determine whether plaintiff had previously suffered a loss of vision in his left eye. Plaintiff’s application was for an advance payment on the 215 weeks of compensation due for the loss of the hand. He did not assert at the hearing that he was totally and permanently disabled due to a prior injury. The administrative law judge awarded 215 weeks of compensation for the loss of the hand, and the parties stipulated to the award. The advance payment requested by plaintiff was then ordered. Whether the plaintiff was suffering from a prior disability was totally irrelevant to these determinations, and the Fund is, thus, not bound by the finding concerning the loss of the eye.
Under MCL 418.521; MSA 17.237(521), an employee who suffers from a permanent disability in the form of the loss of an eye who then suffers an injury arising out of and in the course of employment that results in the permanent loss of a hand is conclusively presumed to be totally and permanently disabled and is entitled to benefits from the Fund. In the instant case, only the finding concerning the loss of the hand is binding on the Fund, and, as there has yet been no determination of a prior permanent disability properly binding on the Fund, the Fund has not yet incurred the responsibility of paying total and permanent disability benefits under the statute. The order of the WCAB is reversed, and this matter is remanded to the WCAB for further proceedings on plaintiff’s claim for total and permanent disability benefits. The question of whether plaintiff may be ordered to submit to a medical examination concerning his eye has not yet been addressed by the WCAB, and plaintiff’s objections to this procedure should be raised there on remand.
Reversed and remanded.
MCL 418.835; MSA 17.237(835).
See MCL 418.361(1)(h); MSA 17.237(361)(1)(h).
The statute provides in part:
"If an employee has a permanent disability in the form of the loss of a hand, arm, foot, leg or eye and subsequently has an injury arising out of and in the course of his employment which results in another permanent disability in the form of the loss of a hand, arm, foot, leg or eye, at the conclusion of payments made for the second permanent disability he shall be conclusively presumed to be totally and permanently disabled and paid compensation for total and permanent disability after subtracting the number of weeks of compensation received by the employee for both such losses. The payment of compensation under this section shall be made by the second injury fund, and shall begin at the conclusion of the payments for the second permanent disability.”
The purpose of this provision was to encourage the hiring of handicapped employees and to insure that such employees would be compensated for the full extent of their disability. Whitt v Ford Motor Co, 383 Mich 726, 730-731; 178 NW2d 917 (1970), 2 Larson, Workmen’s Compensation Law, § 59.31, p 10-285. See Weaver v Maxwell Motor Co, 186 Mich 588; 152 NW 993 (1915).
The facts in Pleiness, supra, are very similar to those in the instant case in that the plaintiff there also suffered from the loss of the industrial use of a hand coupled with the prior loss of vision in an eye. In Pleiness, however, the Fund was not contesting the loss of the eye, but rather was attempting to circumvent the binding effect of the decision regarding the hand. Since in Pleiness the determination concerning the hand was made in a proceeding where the condition of the hand was properly in issue, and since the Fund was not contesting the loss of the eye, all the requirements of res judicata were met. | [
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D. R. Freeman, J.
Defendants appeal as of right from the trial court’s order granting summary judgment to plaintiff on June 19, 1979, which provided that defendant Board of Education discharge intervenor-defendant Jibson for failure to pay the mandatory agency shop fee provided for in the collective bargaining agreement between the parties.
Defendant Board and plaintiff entered into a collective bargaining agreement for the 1977-1978 and 1978-1979 school years, requiring teachers to become members of the union or pay an agency shop fee equivalent to union dues as a condition of continued employment. When intervenor-defendant Jibson, a tenured teacher, refused to become a member of the union or pay the agency shop fee, the union asked the Board to hold a tenure hearing and dicharge him. Based upon the Michigan teachers’ tenure act ("TTA”), 1967 PA 216 as amended, MCL 38.71 et seq.; MSA 15.1971 et seq., the Board refused to honor the union’s request. The union brought this suit demanding that intervenor-defendant Jibson be discharged for failure to pay the agency shop fee.
The critical issue in this case involves a conflict between the TTA, and the public employment relations act ("PERA”), 1947 PA 336, as amended, MCL 423.201 et seq.; MSA 17.455(1) et seq. MCL 38.101; MSA 15.2001 provides that discharge of a tenured teacher "may be made only for reasonable and just cause, and only after such charges, notice, hearing, and determination thereof, as are hereinafter provided”. Jibson argues that nonpayment of an agency shop fee is not "reasonable and just cause” for discharge of a tenured teacher, and that he is thus protected from discharge for failing to pay the fee.
In conflict with Jibson’s argument is section 10 of PERA, which provides as follows:
"Provided further, [t]hat nothing in this act or in any law of this state shall preclude a public employer from making an agreement with an exclusive bargaining representative as defined in section [eleven] [footnote omitted] to require as a condition of employment that all employees in the bargaining unit pay to the exclusive bargaining representative a service fee equivalent to the amount of dues uniformly required of members of the exclusive bargaining representative.” MCL 423.210(l)(c); MSA 17.455(10)(l)(c).
Section 10 further provides that:
"It is the purpose of this amendatory act to reaffirm the continuing public policy of this state that the stability and effectiveness of labor relations in the public sector require, if such requirement is negotiated with the public employer, that all employees in the bargain ing unit shall share fairly in the financial support of their exclusive bargaining representative by paying to the exclusive bargaining representative a service fee which may be equivalent to the amount of dues uniformly required of members of the exclusive bargaining representative.” MCL 423.210(2); MSA 17.455(10X2).
This section was so amended by 1973 PA 25, following the Michigan Supreme Court’s decision in Smigel v Southgate Community School Dist, 388 Mich 531, 543; 202 NW2d 305 (1972), that an agency shop provision requiring as a condition of employment that all employees either join the union and pay dues or pay the equivalent agency shop fee was repugnant on its face to the provisions of PERA. The United States Supreme Court has since upheld the validity of union shop clauses in the public employment sector. Abood v Detroit Board of Education, 431 US 209; 97 S Ct 1782; 52 L Ed 2d 261 (1977).
In Rockwell v Crestwood School Dist Board of Education, 393 Mich 616, 629-630; 227 NW2d 736 (1975), the Michigan Supreme Court stated as follows with regard to conflicts between PERA and the TTA:
"This Court has consistently construed the PERA as the dominant law regulating public employee labor relations. In Detroit Police Officers Ass’n v Detroit, 391 Mich 44; 214 NW2d 803 (1974), we held that residency and retirement benefits are mandatory subjects of collective bargaining under the PERA, although provisions of a city’s ordinance and charter, promulgated under the home rule act, would otherwise govern. Earlier, in Regents of the University of Michigan v Employment Relations Comm, 389 Mich 96; 204 NW2d 218 (1973), this Court 'harmonized’ the constitutional authority of the Regents to supervise the university and the authority of the Legislature to provide for the resolution of public employee disputes, holding that interns and residents in the University of Michigan Hospital were entitled to engage in collective bargaining. In Wayne County Civil Service Comm v Board of Supervisors, 384 Mich 363, 374; 184 NW2d 201 (1971), this Court held that the original authority and duty of the Wayne County Civil Service Commission 'was diminished pro tanto’ by the PERA 'to the extent of free administration of the latter’.
"The analysis is the same whether we label this reconciliation repeal by expression or by implication, pro tanto diminishing or harmonizing. The supremacy of the provisions of the PERA is predicated on the Constitution (Const 1963, art 4, sec 48) and the apparent legislative intent that the PERA be the governing law for public employee labor relations.
"The teachers’ tenure act was not intended, either in contemplation or design, to cover labor disputes between school boards and their employees. The 1937 Legislature in enacting the teachers’ tenure act could not have anticipated collective bargaining or meant to provide for the resolution of labor relations disputes in public employment. This Court’s observation in Wayne County Civil Service Comm, supra, is pertinent: 'In [no] instance could collective bargaining by public employees have been in the minds of the people, or of the (1937] legislators. The thought of strikes by public employees was unheard of. The right of collective bargaining, applicable at the time to private employment, was then in comparative infancy and portended no suggestion that it eventually might enter the realm of public employment.’ (Emphasis by the Court.)” (Footnotes omitted.)
In a more recent decision, this Court concluded that the PERA provision authorizing agency shop fees superseded both the substantive and procedural protections embodied in the TTA. Detroit Board of Education v Parks, 98 Mich App 22; 296 NW2d 815 (1980). The Parks Court found that a collective bargaining agreement providing for discharge of a nonpaying employee was valid and enforceable, despite the TTA requirement of reasonable and just cause to terminate. The Court also held:
"Unlike section 6 of the PERA, which specifically superseded not only the substantive but also the procedural requirements of the Tenure Act with regard to teachers who are dismissed for striking, section 10 allows an agency shop agreement as a condition of employment but does not provide procedures for dismissal. In light of the legislative intent that the PERA occupy the field of labor relations in the public sector, however, it would be inappropriate to follow the procedures set forth in the Tenure Act.” (Footnote omitted.)
Although the Parks Court rejected as inapplicable the hearing requirements of the TTA, it still found a pretermination hearing necessary to satisfy procedural due process. The sole issue at such a hearing is to be whether the recalcitrant employee paid the agency shop fee. The Court found that the Board failed to provide Parks with a hearing prior to termination. However, in a factual setting similar to the instant case, the Parks Court found the Board’s failure to hold a hearing did not constitute reversible error:
"The agency shop clause itself does now and always has required notice of nonpayment of the fees and Parks received such notice, including notice of the possibility of discharge as a result. It would be pointless, however, to require that the Board now hold a hearing for Parks. She has already appealed her discharge to the Tenure Commission and we review its decision now. Furthermore, she has submitted an affidavit stating that she has not paid agency shop fees since 1973-74 and that she paid the fees that year 'under protest’. There is, therefore, no factual dispute to be resolved at a hearing and we hold that it is not necessary to hold one.”
We find that the provisions of the TTA are not applicable to the instant dispute. We also find that employee Jibson’s admitted refusal to pay requisite agency shop fees precludes the need to hold a hearing to determine the fact of payment. Therefore, the lower court did not err in ordering summary judgment in the plaintiff’s favor.
Jibson also contests that aspect of the lower court’s decision refusing his request to have the disputed fees placed in escrow pending a determination of the amount applicable to collective bargaining and contract administration. Abood v Detroit Board of Education, supra. In pertinent part, the circuit court’s order provides:
"I[t is further ordered and adjudged], that if the Intervenor pays to the Plaintiff the amount of $231.20, which is sought by the Plaintiff as the appropriate amount of the agency shop fee, then this Court will, upon request by the Intervenor, determine the appropriate amount of the agency shop fee pursuant to Abood v Detroit Board of Education, 431 US 209 (1977), and Intervenor’s request that such funds be placed in an escrow account pending such determination is denied.”
Pursuant to the Abood decision, public employees may not be compelled to pay agency shop fees which will be used to support ideological activities unrelated to collective bargaining. Thus, Jibson has the right to challenge that portion of the agency shop fee which is used to support ideological activities to which he objects. See also, Ball v Detroit, 84 Mich App 383; 269 NW2d 607 (1978).
After the circuit court granted plaintiff’s motion for summary judgment, the Board filed a motion for a new trial and amendment of the judgment and Jibson moved to intervene as a defendant. The court granted Jibson’s motion to intervene and agreed to grant a new trial if Jibson first paid the contested fee to the union. The motion was denied when Jibson refused to pay the fee to the union, offering instead to pay it into an escrow account pending the circuit court’s determination of the amount thereof not used for ideological activities Jibson did not choose to support.
In Ball v Detroit, 84 Mich App 383, 397; 269 NW2d 607 (1978), this Court stated as follows with regard to the use of escrow accounts in cases such as this:
"The Supreme Court concluded the Michigan Court of Appeals was correct in denying the, 'broad injunctive relief requested.’ Abood, supra, at 241 (emphasis supplied). However we agree with plaintiffs that allowing the union the use of funds prior to a judicial determination subjects nonmembers to the risk that their fees may be used, even temporarily, for activities to which they are opposed. Because fundamental First Amendment rights are at stake, we believe the proper solution is to require nonmembers to pay service fees into an escrow account. While we recognize this works somewhat of a hardship on the union because temporarily it will be unable to collect even the portion of service fees to which it is entitled, that hardship is outweighed by the possibility that First Amendment rights will be violated. Establishing a temporary escrow account is not the broad injunctive relief prohibited in Abood. Rather it is a temporary measure designed to ensure nonmembers pay their service fees or face dismissal and to ensure the union will have prompt access to the funds to which it is entitled after a judicial determination. Whatever remains in the escrow account shall be refunded to the objecting nonmembers.”
Our ruling in Ball clearly accords paramount status to the employee’s First Amendment rights vis-á-vis the union’s right to that portion of the fee which will be used for collective bargaining, contract administration and grievance adjustment. While we continue to adhere to that principle, we now believe that the employee’s First Amendment rights can be adequately safeguarded if the disputed fee is paid to the union and the employee immediately files suit for declaratory judgment under GCR 1963, 521. That court rule provides for judicial declaration of "the rights and other legal relations of * * * interested part[ies]” and authorizes the circuit court to "order a speedy hearing of an action for declaratory relief’ and to "advance [such hearing] on the calendar”. In this manner, while the employee can quickly move for a resolution of the issue and a vindication of his constitutional rights, the union is not crippled by nonaccess to that portion of the fee which will be used for collective bargaining, contract administration and grievance adjustment. In the context of such an action for declaratory judgment the union shall have the burden of establishing the proportion of the agency shop fee which is dedicated to uses to which the employee does not object. Railway Clerks v Allen, 373 US 113, 122; 83 S Ct 1158, 1163; 10 L Ed 2d 235, 241 (1963). The union possesses the facts and records from which such proportion can be determined and it is only fair that the burden be imposed on the party who has access to that information.
The circuit court decision granting summary judgment to the plaintiff and directing defendant Board of Education to discharge Jibson for failure to pay agency shop fees is affirmed. Should Jibson decide to pay the fees prior to the entrance of a formal discharge order by the Board, he may initiate an action for declaratory judgment for the purpose noted in this opinion.
Affirmed.
Bashara, P.J., concurred. | [
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On Remand
Before: Danhof, C.J., and Cynar and Mackenzie, JJ.
Danhof, C.J.
Defendant was tried before a jury on charges of felony murder (rape), MCL 750.316; MSA 28.548, and first-degree criminal sexual conduct, MCL 750.520b; MSA 28.788(2). He was convicted of felony murder but acquitted of criminal sexual conduct. In People v Horton, 99 Mich App 40; 297 NW2d 857 (1980), we reversed under the inconsistent verdict doctrine, holding that the felony-murder conviction based on a completed act of criminal sexual conduct could not stand where defendant was found not guilty of the same criminal sexual conduct. The people subsequently filed an application for leave to appeal with the Supreme Court, which remanded the case to this Court for reconsideration in light of its decision in People v Vaughn, 409 Mich 463; 295 NW2d 354 (1980).
The defendant in Vaughn had been charged with felonious assault and felony-firearm and the jury convicted him of felonious assault only. This Court vacated that conviction under the inconsistent verdict doctrine, People v Vaughn, 92 Mich App 742; 285 NW2d 444 (1979), but the Supreme Court reversed, stating:
"Juries are not held to any rules of logic nor are they required to explain their decisions. The ability to convict or acquit another individual of a crime is a grave responsibility and an awesome power. An element of this power is the jury’s capacity for leniency. Since we are unable to know just how the jurors reach their conclusion, whether the result of compassion or compromise, it is unrealistic to believe that a jury would intend that an acquittal on one count and conviction on another would serve as the reason for a defendant’s release. These considerations change when a case is tried by a judge sitting without a jury. But we feel that, the mercy-dispensing power of the jury may serve to release a defendant from some of the consequences of his act without absolving him of all responsibility.” (Footnotes omitted.) 409 Mich 466.
The decision in Vaughn was based on Dunn v United States, 284 US 390; 52 S Ct 189; 76 L Ed 356 (1932), which held that each count in an indictment is regarded as if it were a separate indictment and that consistency in the verdict is unnecessary.
In the following paragraph, the Supreme Court suggested an alternative ground for the holding in Vaughn:
"Furthermore, because of the difference in language of the two statutes, the jury verdicts may not have been inconsistent in fact, as the jury may have believed a 'dangerous weapon’ * * * other than a firearm * * * was used.” 409 Mich 467.
Nevertheless, we are compelled to hold that the rule against inconsistent verdicts has been repudiated.
In our previous opinion in this case, we concluded that the lower court should have instructed the jury on rape, rather than criminal sexual conduct, as the underlying felony for first-degree murder. See People v MacDonald, 409 Mich 110; 293 NW2d 588 (1980). However, this error alone did not constitute grounds for reversal. The instruction did broaden the class of sex-related crimes which could be considered as the basis for felony murder because it permitted such a conviction based on sodomy. We find defendant was not prejudiced by this instruction where there was no evidence at trial of anal penetration and what evidence there was on the matter indicated penetration of the victim’s genital opening. Furthermore, instructional error was not one of the issues raised by the defendant on appeal.
Defendant does contend that there was insufficient evidence for a rational jury to find him guilty of a rape or criminal sexual conduct. After reviewing the testimony we conclude that this contention lacks merit. See, People v Ramsey, 89 Mich App 260; 280 NW2d 840 (1979).
Based upon the foregoing, we affirm and order the reinstatement of defendant’s original conviction and sentence. Our prior decision is reversed. | [
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Per Curiam.
Defendant was convicted by a jury of first-degree criminal sexual conduct, MCL 750.520b; MSA 28.788(2). He was sentenced to a term of from 20 to 30 years in prison. Defendant appeals as of right.
On appeal, defendant raises three issues which we address seriatim.
First, defendant contends that the trial court committed error requiring reversal when he cleared the courtroom of spectators during the testimony of the victim, an eight-year-old female. We disagree. The exclusion occurred while the prosecutor was attempting to establish, by the child’s testimony, the details of the illicit sexual intercourse. Understandably, the child was nervous, reticent, and lacked the requisite verbal skills to correctly articulate the names of various anatomical organs and acts. The defendant raised no objection to the trial court’s decision, rather he limited his request to the victim’s mother’s being allowed to remain in the courtroom.
The right to complain about an order of exclusion may be waived either expressly or by an accused’s failure to object. People v Sylvester Smith, 90 Mich App 20, 23; 282 NW2d 227 (1979), lv den 406 Mich 996 (1979). Moreover, we are convinced that spectator exclusion for the limited purpose and limited duration found in the instant case falls within the ambits of extraordinary circumstances recognized in both Detroit Free Press v Macomb Circuit Judge, 405 Mich 544; 275 NW2d 482 (1979), and Detroit Free Press v Recorder’s Court Judge, 409 Mich 364; 294 NW2d 827 (1980).
The second issue on appeal is whether the trial court abused its discretion by questioning the eight-year-old victim-witness. Defendant, again, failed to raise timely objection and, hence, absent manifest injustice, the issue need not be considered on appeal. People v Stinson, 88 Mich App 672; 278 NW2d 715 (1979). However, considering the issue on its merits, there was no error. A trial court may question witnesses in order to shed light on something unclear in the testimony or to elicit additional relevant information. People v Gray, 57 Mich App 289; 225 NW2d 733 (1975), People v Ray, 2 Mich App 623; 141 NW2d 320 (1966). Moreover, we do not interpret the trial court’s solicitude toward the child as being evidence of any judicial partiality. Any plausible detriment to the defendant’s case was amply rectified by the trial judge’s extensive instructions to the jury that he, at no time, intended to convey his own impression of the merits of the case.
Lastly, defendant asserts error in the trial court’s conditional ruling pertaining to impeachment by an unspecified felony. In the instant case, defendant previously had been convicted for criminal sexual conduct involving a minor. Defendant initially raised the issue by a motion to suppress evidence of the conviction if he later chose to testify. The record clearly reveals that the trial court carefully considered and balanced the countervailing factors to be considered in making such a determination. The trial court expressed acute awareness that the similarity of the offense might prevent the defendant from testifying in his own behalf. However, and dispositive, the court and both attorneys acknowledged that the motion was premature, the ruling was not conclusive, and defense counsel, sua sponte, stated that he would raise it again. He failed to renew the motion and now cannot predicate error on the conditional ruling. People v Taylor, 98 Mich App 685, 689; 296 NW2d 631 (1980).
Relatedly, the similarity of the offense did not automatically preclude its admissibility for impeachment purposes. It is only one factor to be considered. People v Baldwin, 405 Mich 550; 275 NW2d 253 (1979), People v Jackson, 391 Mich 323; 217 NW2d 22 (1974). The trial court’s statement that it would allow impeachment by the specified criminal sexual conduct conviction should defendant offer testimony as to his "virtuous” behavior with children is an indication that, at this point, the trial court deemed that the probative value of admitting the evidence on the issue of credibility would outweigh its prejudicial effect. People v Jones, 98 Mich App 421; 296 NW2d 268 (1980).
However, assuming arguendo that there was any error as to the admissibility of the prior felony conviction, it was harmless. People v Moseley, 94 Mich App 461, 465; 290 NW2d 39 (1979), People v Stein, 90 Mich App 159; 282 NW2d 269 (1979). We cannot envision a single juror voting to acquit even if this alleged error had not occurred.
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Per Curiam.
Defendant was convicted, after a jury trial, of possession with intent to deliver heroin, MCL 335.341(l)(a); MSA 18.1070(41)(l)(a). He was sentenced to a prison term of from two to ten years and appeals by right.
Prior to trial, defense counsel moved to suppress heroin, paraphernalia, identification, and other evidence that had been seized pursuant to a search warrant. The sole issue on appeal is whether the warrant affidavit provided a sufficient basis for the issuance of a valid search warrant.
Neither the warrant nor the affidavit in support of the warrant appear in the record before this Court. The warrant was read into the record at trial, however, and it details information from the affidavit. According to this information, a police informant identified only as S.O.I. 471, who had provided the police with reliable information in several narcotics cases, met with Sergeant Joseph Piersante and informed him that heroin could be purchased at the Highland Inn in the City of Highland Park. Piersante accompanied the informant to the motel, searched him, and then issued him marked funds. The informant entered the motel where he met a woman named Luanne, who took him to room 715. Luanne indicated the heroin would be brought up from room 513. After a short period of time, a man named Ronnie arrived with the heroin, saying he had just come from room 513. The heroin was purchased with the marked funds, and the informant reported back to Piersante and turned over the narcotics. Piersante phoned this information to Officer Richard Caretti, who was the actual affiant. A search warrant was issued for room 513 and executed later the same day. The defendant and another were arrested in room 513, and the evidence, which is now challenged, was seized.
The warrant is specifically attacked on the ground that the affidavit did not contain sufficient information to establish probable cause for a search of room 513. As regards room 513, the affidavit contained three levels of hearsay. The first is from Luanne and Ronnie to the informant, the second is from the informant to Piersante, and the third is from Piersante to Caretti, the affiant. This fact alone presents no problem. Hearsay may be properly relied on, Jones v United States, 362 US 257; 80 S Ct 725; 4 L Ed 2d 697 (1960), and the same is true of multiple hearsay, People v Chartrand, 73 Mich App 645, 650; 252 NW2d 569 (1977), lv den 400 Mich 848 (1977). When hearsay is used, however, the judicial officer being asked to issue the warrant must be supplied with (1) some of the underlying circumstances supporting the conclusion that the object of the search is where it is said to be and (2) some of the underlying circumstances supporting the conclusion that the person supplying the information is reliable. Aguilar v Texas, 378 US 108; 84 S Ct 1509; 12 L Ed 2d 723 (1964), Spinelli v United States, 393 US 410; 89 S Ct 584; 21 L Ed 2d 637 (1960), People v Walker, 401 Mich 572; 259 NW2d 1 (1977).
Although this test of "credibility and reliability” must be applied to each level of hearsay, there is no challenge in the instant case to the credibility or reliability of either Piersante or informant S.O.I. 471. Defendant instead argues there was not a sufficient showing regarding Luanne and Ronnie to justify a finding of probable cause based on their statements regarding room 513.
Applying the first part of the test to the instant case, it becomes clear that the affidavit sufficiently related the underlying circumstances supporting the conclusion that narcotics and other relevant evidence could be found in room 513. The affidavit states that Luanne said the heroin had to be brought from room 513. When Ronnie arrived with the heroin, he said that he had come from room 513. The first part of the test seeks to weed out tips that are based on "a casual rumor circulating in the underworld or an accusation based merely on an individual’s general reputation”. Spinelli, supra, 416. The judicial officer must be supplied with circumstances establishing that the information is more than "an offhand remark heard at a neighborhood bar”. Id., 417. The information under examination in the instant case clearly is not subject to these concerns. The information came from participants in the offense who identified room 513 as the source of the narcotics. Far from being a casual rumor or an offhand remark, the information came from very near the source of the offense charged.
It still must be shown, however, that the affidavit contained sufficient information to allow the judicial officer to conclude that the persons supplying the information, Luanne and Ronnie, were reliable. This is so because, even if the information regarding the location of the narcotics appears based on more than casual rumor, probable cause is not established until there is reason to conclude that the source of the information is trustworthy. In this regard the instant case differs from the usual Aguilar-Spinelli situation. In the typical case the informant is unnamed and circumstances, such as the reliability of prior tips or corroboration through independent police work, are needed to establish the credibility and reliability of the informant. See Walker, supra, 583. The instant case is more like Chartrand, supra. There, as here, the information was supplied by persons acting with the defendant in a criminal enterprise. Their names and their relationships with the defendant were known. Similarly, in the instant case, the warrant affidavit named the sources of the contested information and established their relationship with the premises to be searched. The following is also helpful in resolving the instant case:
"If the affidavit rests on hearsay — an informant’s report — what is necessary under Aguilar is one of two things: the informant must declare either (1) that he has himself seen or perceived the fact or facts asserted; or (2) that his information is hearsay, but there is good reason for believing it — perhaps one of the usual grounds for crediting hearsay information. The first presents few problems: since the report, although hearsay, purports to be firsthand observation, remaining doubt centers on the honesty of the informant, and that worry is dissipated by the officer’s previous experience with the informant. The other basis for accepting the informant’s report is more complicated. But if, for example, the informer’s hearsay comes from one of the actors in the crime in the nature of admission against interest, the affidavit giving this information should be held sufficient.” Spinelli, supra, 425 (White, J., concurring; emphasis added.)
We conclude that the affidavit, was a whole, as sufficient to allow the judicial officer to conclude that probable cause to search room 513 was established.
Affirmed. | [
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N. J. Kaufman, J.
Defendants were convicted of two counts of first-degree felony murder in violation of MCL 750.316; MSA 28.548 after a jury trial in Detroit Recorder’s Court which commenced on April 3, 1979. Defendant Harvey was also convicted of possession of a firearm in the commission of a felony in violation of MCL 750.227b; MSA 28.424(2). On April 18, 1979, the trial court dismissed this latter conviction on the grounds that it was unconstitutional and then sentenced both defendants to life in prison. Defendants appeal as of right, pursuant to GCR 1963, 806.1.
Of the issues raised by defendants on appeal, the first presents a novel question. Defendants argue that a requested instruction of manslaughter should have been given. They point to evidence on the record suggesting that defendant Harvey shot one of the victims because she pulled a gun on him. We note that there was no direct testimony at trial that either deceased had a weapon. The only evidence presented that could possibly have suggested provocation was testimony of an accomplice, Rudolph, who had turned state’s evidence. Rudolph stated that when defendant Harvey returned to the car, he said he had shot one of the victims because she had tried to draw a gun.
What defendants were, in essence, requesting was a self-defense instruction. It is well established by case law, and dictated as well by common law and common sense, that an aggressor has no right of self-defense. See People v Etheridge Turner, 37 Mich App 226, 229; 194 NW2d 546 (1971), lv den 387 Mich 767 (1972), People v Couch, 49 Mich App 69, 74; 211 NW2d 250 (1973), lv den 391 Mich 755 (1973), CJI 7:9:04. The defendants, therefore, had no right to shoot the victim even if it was believed that she attempted to defend herself by drawing a gun.
Defendants’ argument in this case, however, is not that the killing was in self-defense but rather that a victim’s attempted self-defense can be viewed as adequate and reasonable provocation which would so influence one’s passions as to reduce the killing to manslaughter.
Generally, the provocation necessary to reduce the crime of murder to manslaughter is that which would cause one to act out of passion rather than with due deliberation and reflection. See Maher v People, 10 Mich 208 (1862), People v Younger, 380 Mich 678; 158 NW2d 493 (1968). While no cases have been found directly addressing the issue of whether a robbery victim’s attempted self-defense can be viewed as sufficient provocation to reduce murder to manslaughter, reason dictates that this cannot be.
Manslaughter is not a necessarily lesser included offense of first-degree murder. People v Van Wyck, 402 Mich 266; 262 NW2d 638 (1978). In fact, the only reason a second-degree murder instruction was given was that it was required. Nothing in the evidence suggested a crime less than felony murder. Under such circumstances, the statement in the CJI Homicide Commentary is well taken: "It would be somewhat ludicrous to let the felon kill in self-defense after creating the danger * * * where, but for the felony, the death would not have occurred”. CJI 16-126.
Defendant Harvey asserts a separate ground of error, which we shall address but briefly. He contends that there was insufficient evidence offered to support the verdict with respect to him. In reviewing the sufficiency of evidence, this Court must consider whether or not the evidence is sufficient for reasonable jurors to find defendant guilty beyond a reasonable doubt. People v Hampton, 407 Mich 354; 285 NW2d 284 (1979).
In the present case, the testimony of Rudolph, the alleged accomplice, established that Harvey planned to rob one of the victims. The testimony of one witness, Mr. Carter, was that Harvey shot both victims. There was also evidence that immediately after the shooting Harvey stated that, "* * * when I tell a bitch to give me some money, I want the money”. This could indicate actual intent to kill. It is therefore concluded that there was sufficient evidence to support the conviction of defendant Harvey.
Defendant Maclin asserts , two grounds of error, applicable only to him, which we shall address in turn. First, defendant Maclin contends that the* trial court erred by admitting evidence of Maclin’s prior conviction for attempted larceny from a person. Defendant Maclin claims that the trial court abused its discretion because the prior conviction for attempted larceny from a person was similar to the crime of armed robbery, the underlying felony in the instant case.
When the prior conviction and the charged offense are similar, a court should consider the similarity as a factor weighing heavily against admissibility. Gordon v United States, 127 US App DC 343; 383 F2d 936 (1967), People v Green, 86 Mich App 142; 272 NW2d 216 (1978). However, in People v Hughes, 93 Mich App 333, 337; 287 NW2d 226 (1979), the Court stated that "similarity does not per se bar every impeachment by evidence of a prior conviction”. See also People v Townsend, 60 Mich App 204; 230 NW2d 378 (1975).
The trial court did consider the similarity issue, which was raised at the time of its ruling on admissibility, and found that the crimes were not particularly similar. We agree. The crimes are significantly dissimilar. The crime of armed robbery is assaultive in nature, whereas the prior conviction was for a nonassaultive crime. The trial court’s ruling in the present case is certainly supportable, and there was no abuse of discretion. See Hughes, supra.
As his final ground of error, defendant Maclin argues that there was insufficient evidence of the requisite intent on his part to defeat his motion for a directed verdict. The evidence, as we view it, was wholly inconsistent with defendant Maclin’s claim that he was merely present. He accompanied Harvey to the scene and, after Mrs. Williams was shot, a witness testified that Maclin took money from her pocket. Both Maclin and Harvey ran from the scene to the car where Rudolph was waiting.
In deciding whether or not to grant a motion for a directed verdict of acquittal, the trial court must consider the evidence in the light most favorable to the prosecution and determine whether a rational trier of fact could find that the essential elements of the crime were established beyond a reasonable doubt. Hampton, supra.
In light of the evidence that defendant Maclin actively participated in the armed robbery, we find that there was sufficient evidence of all elements of the crime to support the denial of a directed verdict.
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Beasley, J.
In the evening of July 7, 1977, a car driven by defendant, Lance C. LaLonde, slid into the rear end of a car driven by plaintiff Rexford P. Cox. There was evidence that a third car, the identity of whose driver and owner is unknown, was negligently involved in the collision. Plaintiff Rexford P. Cox claimed damages for alleged serious impairment of body function and/or permanent serious disfigurement sufficient to take the case out from under the no-fault insurance law, and plaintiff Helen Cox sought damages for loss of consortium. The jury returned a verdict of no cause of action against plaintiffs, holding that defendant was not negligent and that plaintiff Rexford P. Cox did not suffer serious impairment of body function or permanent serious disfigurement. After their motion for new trial was denied, plaintiffs appeal as of right, raising four issues.
Plaintiffs assert error under SJI 12.01 in failing to grant their request to instruct the jury regarding two statutes, the following too closely statute and the careless driving statute. However, the tral court did instruct the jury under SJI 12.01 regarding the not driving at a speed greater than will permit stopping within the assured clear distance ahead statute and the rear end collision presumption of negligence statute, as requested by plaintiffs.
In reviewing this claim of error, we consider four matters. First, did plaintiffs request the trial court to give the instructions which they now complain were not given. Plaintiffs filed a written request for jury instructions, the pertinent portion of which is as follows:
"16. SJI 12.01 Violation of Statute by Defendant. We have State Statute which provide [sic] as follows:
"A. The driver of a motor vehicle shall not follow another vehicle more closely than is reasonable and prudent, and shall have due regard for the speed of such vehicles and the traffic upon and the condition of the highway. MSA 9.2343.
"B. Any person who operates any vehicle upon a highway in a careless or negligent manner likely to endanger any person or property but without wantonness or recklessness, shall be guilty of careless driving. MSA 9.2326(2).
"C. No person shall drive any vehicle upon a highway at a speed greater than will permit him to bring it to a stop within the assured, clear distance ahead. MSA 9.2327(a).
"If you find that the Defendant violated one or more of the stated statutes before or at the time of the occurence [sic], then the Defendant was negligent as a matter of law. You must then decide whether such negligence was a proximate cause of the occurrence.
"17. Statutory Presumption — Defendant SJI 12.02. We have a state statute which provides: When it is shown by competent evidence that a vehicle overtakes and strikes the rear end of another vehicle proceeding in the same direction or lawfully standing upon a highway, the driver of the first-mentioned vehicle shall be deemed prima facie guilty of negligence. MSA 9.2102.”
Second, did the trial court give the instructions which were requested? In this connection, the court instructed as follows:
"Now, we have a Michigan State statute which provides in part as follows, and I will read it to you: A person driving a vehicle on a highway shall drive at a careful and prudent speed, not greater nor less than is reasonable and proper, having due regard to the traffic, surface, and the width of the highway, and of any other conditions then existing. And a person shall not drive a vehicle upon a highway at a speed greater than will permit him to bring it to a stop within the assured clear distance ahead.
"Now, we also have another statute which provides in any action in any Court in this State when it is shown by competent evidence that a vehicle traveling in a certain direction overtook and struck the rear end of another vehicle proceeding in the same direction, or lawfully standing upon any highway within this State, the driver or operator of such first mentioned vehicle shall be deemed prima facie guilty of negligence.
"Now, if you find that the defendant, Lance LaLonde, was in violation of either or both of these statutes, this is prima facie proof of negligence. This means that it is sufficient to prove the case unless it is disproved by evidence to the contrary.
"Now, such rebuttal could include or would include strong evidence of a sudden emergency which is unexpected or unusual or for some other justifiable reason the defendant could not comply with these statutes.
"Now, when I have used the words proximate cause, I mean first that there must have been a connection between that conduct of the defendant which the plaintiff claims was negligence and the injuries sustained by the plaintiff. And, second, that the occurrence which is claimed to have produced that injury was the natural and probable result of such conduct of the defendant.
"By the same token, when I use the term proximate cause with respect to the conduct of the plaintiff which the defendant claims caused or contributed to his own injury which the plaintiff sustained, and that the occurrence which is claimed to have produced the injury was a natural and a probable result of such conduct of the plaintiff.
"Now, there may be more than one proximate cause. To be a proximate cause the claimed negligence of the plaintiff or defendant need not be the only cause nor the last cause. A cause may be proximate although it and another cause act at the same time or in combination to produce the occurrence.
"If you decide that the defendant was negligent and that such negligence was a proximate cause of the occurrence, it is not a defense that the conduct of the driver of the unidentified car, who was not a party to this suit, may also have been a cause of this occurrence. However, if you decide that the only proximate cause of the offense was the conduct of someone not a party, then your verdict should be for the defendant.”
Third, were the instructions applicable? And fourth, did the requested instructions accurately state the law?
In resolving these four matters, w.e follow Socha v Passino, where the Supreme Court held:
"We do not believe Javis [v Ypsilanti Board of Education, 393 Mich 689; 227 NW2d 543 (1975)] totally constrains the discretion of trial judges. The judge’s discretion is still required in determining whether or not the instruction is applicable and whether or not the instruction accurately states the law.” (Footnote omitted.)_
We find that the instructions requested by plaintiffs here do not accurately state the law. While the Standard Civil Jury Instructions have provided that, where an applicable statute is violated, a defendant is negligent as a matter of law, Zeni v Anderson, decided subsequent to adoption of the SJI, holds otherwise. Zeni is authority for changing the language of the standard jury instruction from "negligence as a matter of law” to "prima facie proof of negligence”.
Thus, we hold the trial court was correct in instructing the jury that, if they found defendant was in violation of the statute, it was prima facie proof of negligence. Plaintiffs’ request that the jury be instructed that violation of a statute is negligence as a matter of law was an erroneous statement of the law.
In addition, in their requests to charge, plaintiffs omitted any request or reference to sudden emergency. SJI 12.01 provides that if sudden emergency is an issue in the case, then SJI 12.01(A) must be given. SJI 12.01(A) provides:
"However, if you find that defendant was confronted with a sudden emergency not of his own making and, if you find that he used ordinary care and was still unable to avoid the violation because of such emergency, then his violation is excused.”
Under the evidence in this case, there was clearly a question of fact of whether or not the sudden emergency doctrine should be applied. It would have been error here to neglect to instruct the jury regarding the law of sudden emergency.
We also note that although plaintiffs requested SJI 12.02 and set forth the first paragraph, they omitted the following two paragraphs, which are essential parts of SJI 12.02 and which provide:
"If you find that the defendant violated this statute before or at the time of the occurrence, then the law presumes that he was negligent. However, if you find that defendant was confronted with a sudden emergency not of his own making and if you find that he used ordinary care and was still unable to avoid the occurrence because of such emergency, then the presumption is overcome.
"In deciding whether the presumption is overcome you must weigh the presumption with all the evidence of claim of sudden emergency. If, after so weighing, you are unable to decide that the presumption has been overcome, then you must find that the defendant was negligent.”
Thus, we hold that plaintiffs’ proposed instructions did not accurately state the law. Where a litigant’s request to charge is inaccurate and incomplete, we do not permit him then to obtain reversal and a new trial on the basis that the trial court refused to give the charge that he requested. For example, in Green v Richardson, where the plaintiff requested that SJI 11.01(6) be given, we said:
"But they cannot invoke the strict rule where they have not strictly requested the standard jury instruction but instead their own amended version.”
Of similar import is Nowicki v Suddeth, where we said "the court does not have a duty to give an instruction which is erroneous”.
We also note in connection with plaintiffs’ request for an instruction regarding the careless driving statute that the trial court instructed as follows:
"It was the duty of Lance LaLonde [defendant] in connection with this occurrence to use ordinary care for the safety of Rexford Cox and Rexford Cox’s property.”
As we indicated in Bugar v Staiger, it is unnecessary to give repetitious instructions, saying:
"Moreover, as the statute allows passing on the right in certain conditions if done 'in safety’, an instruction based on the statute would, in this case, merely have been a restatement of a driver’s duty of due care. It is not reversible error to refrain from issuing duplicate instructions on the duty to use reasonable care.”
In summary, since plaintiffs requested instructions regarding four closely inter-related statutes which were generally applicable under the evidence, the trial court instructed regarding two of the four statutes, plaintiffs’ request to charge was not a correct statement of the law and the trial court’s instruction was not clearly erroneous, we hold there was no reversible error.
Plaintiffs also claim that it was error for the trial court to instruct the jury with its own version of SJI 5.01(1). During trial, plaintiffs’ only objection to the instruction was on the ground that the adverse inference instruction was not applicable to the case. The instruction, as given by the trial court, was as follows:
"Now, there has been some testimony in this case that the plaintiff was treated by Dr. Billhart. This evidence was under the control of the plaintiff and could have been produced by him and no reasonable excuse for plaintiffs failure to produce this evidence was given. You may infer that some part of that evidence would have been adverse to the plaintiff.”
No objection was made at trial to the language of the instruction. GCR 1963, 516.2 clearly contemplates that objections should be made before the jury retires so that the trial court has opportunity to reinstruct if deemed necessary. Consequently, we hold that this question has not been properly preserved for review. However, even if we were to hold the question preserved for appellate review, we would not be inclined to find that the conclusions of the trial judge were clearly erroneous in deciding to give an adverse inference instruction. The changes from the SJI are so slight as not to possess any significance in this matter.
Plaintiffs also claim that it was error for the trial court to deny their motion for a directed verdict with respect to both liability and damages. We disagree. The proofs were sufficient to raise issues of fact for determination by the jury, both with respect to whether or not there was serious impairment of bodily function and with respect to liability.
Last, plaintiffs claim that it was error for the trial court to include the interrogatory on serious bodily impairment in the form of verdicts submitted to the jury. While plaintiffs made a specific objection to the verdict form, no objection to the court’s inclusion of a special interrogatory on serious impairment of bodily function, as is raised here, was raised at trial. Under these circumstances, we hold that the question has not been preserved for appellate review.
Affirmed.
MCL 257.643(a); MSA 9.2343(a).
MCL 257.626(b); MSA 9.2326(2).
MCL 257.627(a); MSA 9.2327(a).
MCL 257.402(a); MSA 9.2102(a).
Also, the trial court instructed the jury as to the parties’ theories of their respective cases in exactly the language they requested.
405 Mich 458, 467; 275 NW2d 243 (1979).
397 Mich 117; 243 NW2d 270 (1976).
69 Mich App 133, 136-137; 244 NW2d 385 (1976).
7 Mich App 503, 511; 152 NW2d 33 (1967).
66 Mich App 32, 35-36; 238 NW2d 404 (1975). | [
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Per Curiam.
On June 22, 1973, defendant Kassab Daher was a passenger in an automobile insured by plaintiff, Michigan Mutual Insurance Company. The car was involved in an accident with another vehicle, the driver of which was uninsured. Daher filed a claim with the insurance company for payment of $20,000 under the uninsured motorist provision of the policy. In return for payment, Daher, in the presence of his attorney, defendant Shaheen, signed a release and a trust agreement wherein he agreed to be a trustee in consideration of payment on his claim and to hold, for the benefit of plaintiff, all rights and claims which he had against any other parties involved in the action.
Defendants instituted suit against other parties involved in the action, including a bar. Defendant Daher received a net sum of $40,000 in settlement. Plaintiff made a demand for the $20,000 pursuant to the trust agreement but was informed that it could only be paid $2,500.
Plaintiff brought suit against defendants Shaheen and Daher. Daher moved for summary judgment based on GCR 1963, 117.2(1) and (3). Shaheen moved for summary judgment based on GCR 117.2(1). The motions were granted by the trial judge. Plaintiff appeals as of right.
Defendant Shaheen’s motion for summary judgment was based on GCR 1963, 117.2(1), which is concerned with the legal sufficiency of a claim. Such a motion is tested on the pleadings alone. Todd v Biglow, 51 Mich App 346; 214 NW2d 733 (1974). In examining the pleadings, the trial court is obliged to accept every well-pled allegation as true. The court must also accept as true all conclusions that can reasonably be drawn from the factual allegations. The applicable standard is whether the plaintiffs claim, on the pleadings, is so clearly unenforceable as a matter of law that no factual development can possibly justify a right to recover. Crowther v Ross Chemical & Manufacturing Co, 42 Mich App 426; 202 NW2d 577 (1972).
The trial court relied upon Rogers v Horvath, 65 Mich App 644; 237 NW2d 595 (1975), in granting Shaheen’s motion for summary judgment based on GCR 1963, 117.2(1). In Rogers, this Court held that a plaintiff has no cause of action for medical malpractice against a physician who examined her on behalf of her employer in preparation for testifying before a workmen’s compensation referee and not for plaintiffs benefit to diagnose or treat an ailment.
We agree with the trial court’s ruling in the instant case that plaintiffs complaint does not state a claim against Shaheen upon which relief can be granted. The complaint does not allege that Shaheen was contractually committed to the plaintiff either by the written release and trust agreement or by a separate contract, express or implied. Plaintiff contends that it set forth a cause of action for breach of implied contract. To have an implied contract, however, the defendant must have received a benefit from the plaintiff, one that is inequitable for defendant to retain. Moll v Wayne County, 332 Mich 274; 50 NW2d 881 (1952). Plaintiff has not indicated what benefit Shaheen received from the plaintiff. The benefit of the insurance settlement paid by plaintiff went to Daher, who was the party to the release and trust agreement.
Further, the complaint does not allege that there existed a professional attorney-client relationship between plaintiff and the defendant. In fact, the contrary is clearly implied by the fact that, throughout the complaint, Shaheen is referred to as Daher’s attorney.
Thus, at most, plaintiff’s complaint alleged that, although Shaheen was aware of Daher’s obligations under the release and trust agreement, he assisted Daher in retaining the money. The allegation is insufficient to allege a breach of contract claim.
Defendant Daher’s motion for summary judgment under GCR 1963, 117.2(1) and (3) was based on two separate grounds. Daher first alleged that the release and trust agreement relied upon by the plaintiff were executed without good and valuable consideration, rendering these agreements unenforceable. Daher admits that he signed the release and trust agreement and that the plaintiff paid Daher’s claim under the plaintiffs insurance policy in consideration for Daher’s signing the release and trust agreement.
In Matson v State Farm Mutual Automobile Ins Co, 65 Mich App 713; 238 NW2d 380 (1975), this Court held that an insurance contract may limit the liability of the insurer to an insured under uninsured motorist coverage by reducing the amount payable under the coverage by other sums paid to the insured by any other person or organization liable for the injury. A trust agreement was signed by the insured similar to that signed by Daher here. This Court found the agreement was supported by consideration and enforceable against the estate of the insured. No question arose in Matson as to whether the amount of payment represented by the uninsured motorist insurance coverage compensated the insured for damages suffered. The Court, in fact, was concerned that recovery on the uninsured motorist coverage and additional recovery under the dram-shop act would result in a redundancy of damages.
The insured here argues that there is no consideration for the execution of the release and trust agreement because even receipt of the uninsured motorist insurance proceeds and the dramshop payment do not fully compensate him for his losses. This Court has held that the purpose of uninsured motorist coverage is to place the victim of the uninsured motorist in the same position he would have occupied had the tortfeasor been insured. Reliance Ins Co v Haney, 54 Mich App 237; 220 NW2d 728 (1974), Saari v State Farm Mutual Automobile Ins Co, 72 Mich App 278; 249 NW2d 390 (1976). We therefore agree that, unless the insured was made whole, there was not consideration for his promise to reimburse the plaintiff.
Daher’s motion for summary judgment was also based on the contention that plaintiffs action is barred because it is contrary to and in violation of public policy. Daher argues that public policy requires that the trust agreement be interpreted to entitle the insurer to be subrogated to the proceeds of any settlement only if the injured party has been fully compensated for his losses. Plaintiff contends that the sole interpretation of the trust agreement imposes no conditions on the right of the insurance company to be subrogated to the proceeds of any settlement or judgment from any person legally responsible up to the amount actually paid to the insured.
We find that the trust agreement should be interpreted to compel defendant Daher to reimburse the plaintiff uninsured motorist carrier for that amount of defendant’s recovery which exceeds damages defendant has suffered, including costs and attorney fees. Plaintiff is liable for the amount of damages suffered, reduced by the settlement amount, the liability not to exceed $20,000. Michigan Mutual Liability Co v Karsten, 13 Mich App 46; 163 NW2d 670 (1968), Michigan Mutual Liability Co v Mesner, 2 Mich App 350; 139 NW2d 913 (1966). Thus, Daher is entitled to be compensated for his injuries, but only to the extent of his actual loss, including costs and attorney fees; double recovery is not permitted.
The issue of whether the insured has been fully compensated or whether there has been duplicate recovery has not been determined. Therefore, summary judgment was improper.
Affirmed as to defendant Shaheen; reversed and remanded as to defendant Daher for a determination of the amount of his damages. | [
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M. J. Kelly, J.
Plaintiff-appellant, Michigan Sugar Company, appeals as of right from an opinion and order of the lower court finding no cause of action in the plaintiff’s suit to recover insurance benefits from defendant-appellee, Employers Mutual, and defendant, Commercial Union. In its claim, plaintiff alleged that the destruction of specified amounts of sugar in its storage silo was covered by policies of insurance with each defendant. The lower court, following a bench trial, held the claim against defendant Employers Mutual to be barred by the "Perils Excluded” provision of its policy. As to Commercial Union, the trial court found the evidence could not support a finding that the objects insured in its policy caused the damage to the plaintiff’s sugar. Plaintiff does not appeal that aspect of the judgment finding no cause of action against defendant Commercial Union.
The facts pertinent to this appeal are as follows. Plaintiff maintains a large horizontal storage silo that is "approximately the size of a football field” at its plant in Caro, Michigan. The silo is approximately 220 feet long and 60 feet wide; the side walls are 21 feet high and are gabled 46 feet above ground level. The silo has a total capacity of approximately 200,000 hundredweight of sugar. A hundredweight is equivalent to 100 pounds of sugar.
When the silo was constructed in 1966, heating elements were imbedded in the concrete floor so that moisture could be eliminated. The heating elements were controlled by thermostats. During the first two years of the silo’s operation, the thermostats were set at approximately 70 degrees Fahrenheit and remained at that setting year round. When plaintiff discovered that some of the sugar was caking on the silo floor due to the heat, the procedure was varied so that the heating elements were used only during the one-week period immediately before the sugar was stored. The new procedure was preceded by a yearly cleaning of the silo floor, after which the heating elements would be set at 90 degrees Fahrenheit for the one-week period to dry out the floor.
On or about November 1, 1974, plaintiff entered into the disputed contract of insurance with Em ployers Mutual. The pertinent provisions of the contract stated that, in return for annual premiums of $240,000, Employers Mutual would insure certain property located at plaintiffs Caro plant "against all risks of direct physical loss” in the total amount of $25,000,000. The policy provided in part:
"3. Perils Insured Against:
"This policy insures against all risks of direct physical loss to the property covered from any external cause * * * except as hereinafter excluded.
"4. Perils Excluded: This policy does not insure against loss:
"(k) By shrinkage, evaporation, loss of weight, contamination, change in flavor, color, texture, or finish, change in temperature (whether or not atmospheric) or humidity (but excepting loss by or resulting from freezing of automatic sprinkler, fire hydrant, standpipe, plumbing or heating systems) rust or corrosion; unless loss by fire or explosion not otherwise excluded ensues, and then the Company shall be liable only for such ensuing loss * *
On February 11, 1975, at a time when the silo was almost full of sugar, a worker discovered that a large amount of sugar in the silo "was bubbling through the top of the pile of sugar and running down the side in a black lava-like substance”. According to the plaintiff, the sugar had become heated to a level where it changed from sucrose to levulose and dextrose, which could not be sold or used by plaintiff. The plaintiff claimed a loss of $1,597,464.14, plus interest.
After the silo was cleaned out, Employers Mutual hired Ellis/Naeyaert Associates, Inc., to investigate the loss and determine its cause. Avery Burdick, an electrical staff consultant, conducted the investigation. On September 22, 1975, Ellis/ Naeyaert issued its final report on the loss. The report states in pertinent part:
"In this second report our opinion as to the cause of the loss remains as thermostat C-4 being incapable of controlling the temperature due to a number of factors:
"2. Improper location of the thermistor sensing probe for thermostat C-4.
"3. Inadequate length of heating cables which resulted in an uneven installation and therefore uneven heating of the floor slab.
"5. Uneven lie of heating cables.
"* * * Therefore, improper installation of the heating cables and the thermostat sensing probe are the primary causes of this loss.
"In conclusion it is our opinion the improper installation of the heating cables and the thermostat sensing probe are the primary causes of this loss.”
On October 17, 1975, Employers Mutual advised plaintiff that its claim for the loss was denied and that no payment would be made under the policy. In the trial court’s opinion denying the plaintiffs claims, it was specifically found that: (1) a mechanical breakdown exclusion found in paragraph 4(g) of plaintiffs policy with Employers Mutual was not applicable, (2) the change of temperature exclusion found in paragraph 4(k) of the policy precluded recovery by the plaintiff, and (3) the change of temperature exclusion was not ambiguous, therefore not to be interpreted against Employers Mutual.
We first deal with a question of causation. At trial, Employers Mutual argued that the condition of the plaintiffs stored sugar was caused entirely by a change in the substance’s temperature, a cause of damage precluded under subsection 4(k) of the parties’ insurance agreement. The plaintiff admits that the injury to its sugar was the result of a change in temperature, but argues that the temperature change was itself caused by improper placement of the thermistor sensing probe and heating cables, which would not be excluded from the "all risks” coverage in the contract.
As in negligence cases, the question of proximate cause in insurance cases is generally held to be one for the trier of fact. Kangas v New York Life Ins Co, 223 Mich 238, 244-245; 193 NW 867 (1923), 18 Couch on Insurance (2d ed), § 74:697, p 607. The Rangas majority, per Justice McDonald, also noted the intent of qualifying language in a disputed insurance contract:
"I am of the opinion that the qualifying language of the contract may properly be interpreted to mean that the parties intended efficient, proximate cause to be the ultimate test of liability. This interpretation renders the contract of some substantial value to the man who pays the premium as well as to the party who carries the risk.” Kangas, supra, 244.
In Weissert v City of Escanaba, 298 Mich 443, 452; 299 NW 139 (1941), the Supreme Court defined proximate cause as " 'that which in a natural and continuous sequence, unbroken by any new, independent cause, produces the injury, without which such injury would not have occurred * * See also Selph v Evanoff, 28 Mich App 201, 206; 184 NW2d 282 (1970).
In the present case, the lower court’s finding on the issue of causation was predicated primarily on the report of Avery Burdick, an electrical staff consultant. Burdick concluded that improper placement of the heating cables and thermostat sensing probe, installed in 1966, was the primary cause of the damage herein. Lapse of time does not foreclose the cause of an injury from being its proximate cause. In Parks v Starks, 342 Mich 443, 447; 70 NW2d 805 (1955), the Supreme Court quoted from Solomon v Continental Baking Co, 172 Miss 388, 393; 160 So 732 (1935), for the following rule:
" 'Where an act of negligence is a substantial factor in bringing about an injury, it does not cease to be a legal and proximate cause thereof because of the intervention of a subsequent act of negligence of another which contributed to the injury, if the prior act of negligence is still operating, and the injury inflicted is not different in kind from that which would have resulted from the prior act. 2 Restatement Torts, §§ 440-442, 447.”
Applying the above tests, we find that the improper installation of the silo’s heating appartus was a proximate cause of the damage to plaintiff’s sugar.
This conclusion does not, however, compel the further finding that the plaintiffs claim is compen-sible under its insurance contract with Employers Mutual. The exclusions in subsection 4(k), we believe, encompass the plaintiffs loss and bar liability under the contract.
In Hall v Equitable Life Assurance Society of the United States, 295 Mich 404, 408; 295 NW 204 (1940), our Supreme Court held that an insurance contract is subject to the same rules of construction as other agreements. Among these rules is the general principle that contracts should be inter preted so as to reflect the parties’ intent. Piasecki v Fidelity Corp of Michigan, 339 Mich 328; 63 NW2d 671 (1954). To ascertain the parties’ intent, clear and unambiguous contract language is to be accorded its plain and ordinary meaning. Bank of the Commonwealth v Criminal Justice Institute, 102 Mich App 239, 244; 301 NW2d 486 (1980). The facts and circumstances surrounding execution of the agreement may be looked to for the purpose of resolving ambiguous language in the instrument. Shirey v Camden, 314 Mich 128, 130; 22 NW2d 98 (1946).
Exclusion 4(k) of the policy provided as follows:
"4. Perils Excluded: This policy does not insure against loss:
"(k) By shrinkage, evaporation, loss of weight, contamination, change in flavor, color, texture, or finish, change in temperature (whether or not atmospheric) or humidity (but excepting loss by or resulting from freezing of automatic sprinkler, fire hydrant, standpipe, plumbing or heating systems) rust or corrosion; unless loss by fire or explosion not otherwise excluded ensues, and then the Company shall be liable only for such ensuing loss * *
The language of subsection 4(k) is susceptible to only one conclusion under these facts. Subsection 4(k) excludes from coverage damage to the sugar caused by a change in temperature "whether or not atmospheric”. The following language then exempts from its exclusions (thus providing coverage) the enumerated hazards, if they are caused by a freeze in the silo’s "heating systems”. Reading these two provisions together, we believe the contract anticipated injurious temperature changes caused by the silo’s internal heating system. In those situations when the malfunction resulted in a change of temperature and damage caused by freezing of the heating system, the exclusion from coverage would not apply. Hence, when the temperature change was caused by a heating system malfunction not caused by freezing, the exclusion bars recovery under the contract.
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V. J. Brennan, J.
This litigation involves claims and cross-claims for monies owed for work and a mortgage loan on the construction of a mobile- home park owned by defendant Mt. Vernon Mobile Estates, Inc., which, in turn, is owned and controlled by defendants Vernon and Alice Fitch. For brevity, these parties will be referred to collectively as defendants or Mt. Vernon. They appeal as of right from adverse verdicts rendered by the trial court sitting with an advisory jury. We address the issues raised on appeal seriatim.
Defendants first argue that the liens of both Merucci Bros, and Superior Products were invalid because of their failure to effect personal service on Mt. Vernon or its agents within the county where the mobile-home park was located. Each of the statutory provisions under which Merucci Bros, and Superior Products were obligated to follow in serving their sworn statements or accounts provide that if neither the owner nor his agent can be found within the county where the premises are located, substituted service may be made by posting. MCL 570.4; MSA 26.284 and MCL 570.6; MSA 26.286 respectively. Both Me-rucci Bros, and Superior Products made service by posting the sworn statements on a billboard at the mobile-home park site. The lower court found that this sufficiently complied with the statutory provisions and upheld the liens. The court indicated that it was not convinced that the Fitches’ sales office was actually opened at the time service was being attempted.
At trial, Merucci Bros, and Superior Products offered testimony as to their efforts to perfect personal service. Conversely, defendants claimed that Mrs. Fitch was present at a nearby mobile-home sales office during the relevant period of time. In turn, this was controverted by other evidence. In light of this conflicting evidence, we affirm the trial court’s finding.
An appellate court will set aside the findings of fact of a trial court sitting with or without an advisory jury only where such findings are "clearly erroneous”. In making this determination, regard is given to the special opportunity of the trial court to judge the credibility of those witnesses who appear before it. Tuttle v Dep’t of State Highways, 397 Mich 44, 46; 243 NW2d 244 (1976), Bergy Brothers, Inc v Zeeland Feeder Pig, Inc, 96 Mich App 111; 292 NW2d 493 (1980). In the instant case, we are left with no firm and definite conviction that a mistake has been made. This conclusion is buttressed by the fact that the mechanics’ lien statute is to be construed liberally, in light of its remedial purpose to secure the beneficial results intended. Spartan Asphalt Paving Co v Grand Ledge Mobile Home Park, 400 Mich 184, 188-189; 253 NW2d 646 (1977), MCL 570.27; MSA 26.307. Therefore, the lower court’s finding that service by posting was sufficient is affirmed.
Secondly, defendants contend that the Merucci Bros.’ lien should be set aside because it failed to make a "just and true statement or account of the demand due him” in compliance with MCL 570.5; MSA 26.285.
It has been held that a largely excessive statement must be treated as insufficient. Parties are not permitted to include speculative items, and, since the means of information is within their reach, they are held to a great degree of accuracy. Brennan v Miller, 97 Mich 182; 56 NW 354 (1893). However, an excessive claim will not invalidate a lien where the amount was claimed in good faith. Hart v Reid, 243 Mich 175, 186-187; 219 NW 692 (1928). Thus, a clerical error in the claimant’s accounts will not deprive him of his lien. Corlett-Stone Lumber Co v Parker, 230 Mich 537, 538-539; 203 NW 122 (1925).
Merucci Bros.’ statement of account claimed that $99,214.50 was owed, even though Mt. Vernon had only been billed for $96,214.50. Angelo Me-rucci testified that the correct amount was the lower figure and that the mistake was the result of a mathematical error by his secretary. He stated that he only was made aware of the error when the figures were reviewed later by his attorney. He indicated that he did not intend to claim more than what was owed. The trial court admitted into evidence the secretary’s worksheet, which indeed indicates that a mathematical error was made. There was no testimony or other evidence to indicate that the error was made in bad faith. The lower court concluded that the error was made in good faith and that Mt. Vernon had not been prejudiced. In light of the testimony by Merucci and the absence of any evidence to the contrary, it cannot be said that these findings clearly were erroneous. Tuttle, supra.
Next defendants complain that the trial court’s award of attorney fees was excessive. We disagree.
MCL 570.12; MSA 26.292 provides in part:
"The court may, in its discretion, allow a reasonable attorney’s fee when judgment shall be rendered in such proceeding, in favor of the parties succeeding therein.”
The awarding of attorney fees is within the discretion of the trial judge, and it will be upheld absent an abuse of discretion. Sturgis Savings & Loan Ass’n v Italian Village, Inc, 81 Mich App 577, 584; 265 NW2d 755 (1978), William & Works, Inc v Springfield Corp, 76 Mich App 541, 551; 257 NW2d 160 (1977), lv den 402 Mich 908 (1978). Among factors that are appropriate to consider in assessing such fees are: (1) the complexity and difficulty of the case and the number of working hours which reasonably can be justified; and (2) whether the defendant’s refusal to pay the claimed debt was unreasonable. Sturgis, supra, Bosch v Altman, 100 Mich App 289; 298 NW2d 725 (1980).
It does not appear on this record that the trial court abused its discretion in awarding substantial attorney fees. The case was a complex one from a procedural standpoint. The court file shows that five parties were involved and that numerous motions and discovery proceedings were undertaken over the course of three and a half years. Eventually, a full trial was held. The court correctly reviewed this evidence as to reasonableness of the fees. It cannot be said here that the awards constituted an abuse of discretion.
Fourth, defendants assert error in that the lien of Superior Products was filed 92 days after the last material was supplied to the project.
The applicable statute, MCL 570.5; MSA 26.285, requires that a verified statement of account be recorded within 90 days from the last date on which material shall have been furnished. The statute does not expressly or impliedly alter the general court rule concerning the computation of limitation time.
GCR 1963, 108.6 provides:
"Computation. In computing any period of time prescribed or allowed by these rules, by order of court, or by any applicable statute, the day of the act, event, or default after which the designated period of time begins to run is not to be included. The last day of the period is to be included, unless it is a Saturday, Sunday, or legal holiday, in which event the period runs until the end of the next day which is neither a Saturday, Sunday or legal holiday.” (Emphasis added.)
In the instant case, the 90th day fell on a Sunday, the following Monday was a legal holiday (Washington’s Birthday), and the account was recorded on the next day, a Tuesday. Hence, defendants’ contentions are without merit.
Defendants next assert that the trial court erred in granting judgment in favor of Standard Federal on its foreclosure action and defendants’ cross-claim for breach of contract. Defendants contend that the court erred in these decisions and that the issues should have gone to the jury. We note first that foreclosure actions are equitable in nature, and that defendants had no right to jury trial with regard to the foreclosure action. MCL 600.3180; MSA 27A.3180. Thus, no error occurred in this regard. Further, we find no error in the trial court’s grant of judgment to Standard Federal with regard to defendants’ breach of contract claim following defendants’ counsel’s opening statement. A trial court may direct a verdict following the opening statement when counsel concedes particular facts which demonstrate that no cause of action exists. Tyus v Booth, 64 Mich App 88; 235 NW2d 69 (1975). In the opening statement, defendant's’ counsel conceded that their right to advances from Standard Federal was contingent upon the Fitches submitting signed statements. This was not complied with until after the county had placed a "stop. work” order on the job site which, correspondingly, placed defendants in breach of the mortgage loan agreement and released Standard Federal from the obligation to make further advances. Thus, viewing the evidence in a light most favorable to defendants, it is clear that defendants could not establish a prima facie case of breach of contract with regard to the disbursement refusal. The trial court’s directed verdict in favor of Standard Federal was appropriate. Wynn v Cole, 91 Mich App 517, 524; 284 NW2d 144 (1979).
Lastly, we conclude that although the trial court improperly limited the defendants’ attempts to introduce testimony regarding the nature of the contract with Nick Merucci & Son the error was harmless. The evidence does not support defendants’ contentions that completion of the contract would have been timely but for the fault of Me-rucci Bros.
In summary, we find none of the errors asserted by defendants, individually or collectively, warrant reversal. The decisions of the trial court are affirmed. | [
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Per Curiam.
Defendant, Robert Earl Bailey, appeals from his conviction and sentence for delivery of heroin, contrary to MCL 335.341(1)(a); MSA 18.1070(41)(1)(a). On March 13, 1979, defendant was sentenced to from 4 to 20 years imprisonment. He appeals as of right and raises six grounds for reversal.
This appeal arises out of a purchase of heroin from the defendant by undercover Michigan State Police Trooper Juan Guillen. On September 7, 1976, Guillen and a second officer met with an informant, Ellen Schultz, who said she would contact the police when she had relevant information on the defendant. Schultz did not inform the officers of her whereabouts or of a means to contact her.
On September 27, 1976, Schultz informed Guillen that the defendant had heroin for sale. Guillen then accompanied Schultz to the defendant’s home. The defendant left his home and entered Guillen’s car where, with Schultz present, a sale of five $15 packets containing heroin was concluded. The facts of this purchase did not form the basis for the instant conviction and were not made known during the prosecution’s case in chief.
Later the same day, Guillen contacted the defendant in an attempt to establish a "clean buy” of additional heroin. At about 10:30 p.m., Guillen again met the defendant in the officer’s car. The two men discussed the matter of price of the heroin and a possible future purchase of heroin. Defendant then gave Guillen two packets of a powdery substance, later identified as heroin, for which Guillen paid $30. This purchase formed the basis for the instant charge against the defendant.
At the close of defendant’s proofs, a hearing was conducted to determine whether Ellen Schultz was a res gestae witness and whether due diligence was used by the police to produce her for testimony. The trial court concluded that the initial September 27 purchase which Schultz witnessed was an offense separate from that for which the defendant was charged, thus not making Schultz a res gestae witness. At the close of the hearing, the defendant informed the court of a means to contact Schultz. She was produced in court the next day but was not called by the defendant. As a rebuttal witness for the prosecution, Schultz testified to the defendant’s use of heroin and his business of selling drugs.
The defendant’s first issue alleges a denial of the constitutional right to a speedy trial, US Const, Am VI; Const 1963, art 1, § 20. The defendant’s trial began on January 24, 1979, approximately two years after authorization of a warrant for his arrest.
In Barker v Wingo, 407 US 514, 530; 92 S Ct 2182, 2192; 33 L Ed 2d 101, 116-117 (1972), the United States Supreme Court outlined a four-step balancing test to determine the presence of prejudice under a claim of denial of the right to a speedy trial. The test, adopted by our Supreme Court in People v Grimmett, 388 Mich 590; 202 NW2d 278 (1972), and People v Collins, 388 Mich 680; 202 NW2d 769 (1972), provides:
"A balancing test necessarily compels courts to ap proach speedy trial cases on an ad hoc basis. We can do little more than identify some of the factors which courts should assess in determining whether a particular defendant has been deprived of his right. Though some might express them in different ways, we identify four such factors: Length of delay, the reason for the delay, the defendant’s assertion of his right, and prejudice to the defendant.”
Application of the above criteria leaves the defendant’s claim without merit. A rebuttable presumption of prejudice was created by the approximate 24-month delay between arrest and trial. People v Collins, supra; People v Den Uyl, 320 Mich 477; 31 NW2d 699 (1948). However, the remaining three factors in the Supreme Court’s balancing test weigh heavily against the defendant’s claim. Review of the trial record discloses that approximately 12 months of the delay was due to the defendant’s request for time to retain private counsel, the unavailability of defense counsel and defense counsel’s unpreparedness for trial. Thus, only 12 months of delay may be attributed to the prosecution, a period within the 18-month presumption of prejudice. In People v Collins, supra, 692, the Supreme Court addressed a similar situation:
"To recapitulate on balance the reasons for the delays in this case run against the defendant at least as strongly as against the prosecution. The defendant’s posture certainly was not that of a man seeking speedy trial. As Justice Brennan said in concurring in Dickey v Florida, 398 US 48; 90 S Ct 1574; 26 L Ed 2d 38 (1969), '[a] defendant may be disentitled to the speedy-trial safeguard in the case of a delay for which he has, or shares, responsibility.’ ”
Defendant made no assertion of his right to a speedy trial until the date his trial actually began. In People v Bennett, 84 Mich App 408; 269 NW2d 618 (1978), this Court found the adverse effect of a failure to demand speedy trial diluted, where the prosecution remained responsible for 20 months of a 32-month delay. In this case, however, the prosecution’s delay is not as substantial and does not itself push the defendant beyond the 18-month limit. In Barker v Wingo, supra, 531, the Supreme Court assigned "strong evidentiary weight” to the defendant’s failure to assert his constitutional right. Absent assertion of his right to a speedy trial, the defendant’s claim is heavily offset by this factor.
The final factor, prejudice to the defendant, was described in People v Chism, 390 Mich 104, 114; 211 NW2d 193 (1973):
"There are two types of prejudice which a defendant may experience, that is, prejudice to his person and prejudice to his defense. Prejudice to his person would take the form of oppressive pretrial incarceration leading to anxiety and concern. Prejudice to his defense might include key witnesses being unavailable. Impairment of defense is the most serious, 'because the inability of a defendant adequately to prepare his case skews the fairness of the entire system.’ Barker, 407 US 514, 532.”
Defendant argues that the delay clouded the memory of several witnesses. However, the testimony cited as evidence of unclear witness recall relates only to such insignificant factors as the model of Officer Guillen’s car and matters not prejudicial to the defendant’s case. Therefore, we find that the defendant was not deprived of his right to a speedy trial.
Defendant also contests as violative of his right to a fair trial the admission of testimony detailing the first heroin purchase on September 27 and the defendant’s prior use of drugs. Evidence of a defendant’s prior bad acts or crimes is generally not admissible because the probative value of such evidence is outweighed by its prejudicial effect. People v Bates, 91 Mich App 506, 510; 283 NW2d 785 (1979). An exception to the general rule of inadmissibility is found in MCL 768.27; MSA 28.1050:
"In any criminal case where the defendant’s motive, intent, the absence of, mistake or accident on his part, or the defendant’s scheme, plan or system in doing an act, is material, any like acts or other acts of the defendant which may tend to show his motive, intent, the absence of, mistake or accident on his part, or the defendant’s scheme, plan or system in doing the act, in question, may be proved, whether they are contemporaneous with or prior or subsequent thereto; notwithstanding that such proof may show or tend to show the commission of another or prior or subsequent crime by the defendant.”
See also MRE 404(b).
In People v Wilkins, 82 Mich App 260, 267-268; 266 NW2d 781 (1978), the Court defined three criteria for admission of evidence of prior similar acts: (1) that there be substantial evidence of the defendant’s commission of the previous offense; (2) that there be some special circumstances of the previous act probative of the elements of the present charge; and (3) that the defendant’s motive, intent, absence of mistake or accident, scheme, plan or system be material to the defendant’s guilt of the present offense. Additionally, evidence of similar acts is not admissible if the matter for which evidence is offered is not made an issue by the defendant. People v Duncan, 402 Mich 1; 260 NW2d 58 (1977).
At trial, evidence of the prior heroin purchase was not probative of the defendant’s motive, intent, absence of mistake, scheme, plan or system. Additionally, the first sale is not inextricably blended with the facts of the charged offense, to make admissible the disputed testimony. People v Delgado, 404 Mich 76; 273 NW2d 395 (1978). Thus, error was committed by the trial court’s admission of evidence substantiating the defendant’s prior bad acts.
Once error is found in the trial court’s admission of evidence, we must determine if the error was merely harmless. The harmless error standard involves a dual inquiry: (1) was the error so offensive to the maintenance of a sound judicial system as to require reversal; and (2) if not, was the error harmless beyond a reasonable doubt. People v Wilkins, supra. We conclude that in light of the substantial evidence implicating the defendant in the instant offense, the error was not intrinsically offensive to the maintenance of a sound judicial system. People v Adan, 83 Mich App 326; 268 NW2d 397 (1978). Additionally, the error was harmless beyond a reasonable doubt. Had the trial been free of such error, it is not reasonably possible that any juror would have voted to acquit the defendant. People v Christensen, 64 Mich App 23; 235 NW2d 50 (1975).
Defendant also alleges as reversible error the prosecution’s failure to disclose prior to trial the fact that Officer Guillen was equipped with a wireless microphone. Without such evidence, the defendant argues that he was unable to prepare an adequate defense to the charges against him.
In People v Walton, 71 Mich App 478, 481-482; 247 NW2d 378 (1976), this Court discussed the scope of discovery in criminal proceedings:
"Traditionally, information sought by a defendant is discoverable when, in the sound discretion of the trial court, the object sought is admissible into evidence and the suppression of it might result in a failure of justice. * * * But, discovery has not been limited exclusively to whether the information sought was admissible at trial. Rather, the focus has shifted to whether fundamental fairness to the defendant, in preparing his defense, requires that he have access to the requested information.”
See also People v Fournier, 86 Mich App 768, 784; 273 NW2d 555 (1978). In the present case, the disputed evidence was not beneficial to defendant. Also, upon discovery of the evidence during trial the lower court permitted defendant to reopen his proofs to impeach the undercover officer. Unlike the situation in People v Walton, supra, defense counsel herein was provided a full opportunity to make use of the newly discovered information. Therefore, we find that the defendant was not denied fundamental fairness or impaired in preparing his defense as a result of the prosecution’s actions.
Defendant contends that the actions of his defense attorney deprived him of his right to the effective assistance of counsel. Specifically, the defendant states that defense counsel failed to object to evidence of the defendant’s bad acts, failed to request an instruction limiting the jury’s consideration of such evidence, brought into consideration possible prior crimes committed by the defendant and read a report indicating the defendant committed perjury in a previous Federal drug trial.
In People v Garcia, 398 Mich 250, 264-266; 247 NW2d 547 (1976), the Supreme Court adopted the test for determining effective assistance of defense counsel espoused in Beasley v United States, 491 F2d 687, 696 (CA 6, 1974):
"Defense counsel must perform at least as well as a lawyer with ordinary training and skill in the criminal law and must conscientiously protect his client’s interests, undeflected by conflicting considerations.”
Additionally, even if actual proof of prejudice is presented, the defendant’s claim of error will fail "unless, but for these alleged errors, defendant would have had a reasonably likely chance of acquittal”. People v Krist, 93 Mich App 425, 435; 287 NW2d 251 (1979). In this case, the evidence introduced to show defendant’s guilt was substantial. Also, review of the record and transcript discloses a clear defense counsel strategy to focus the jury’s attention on allegedly improper investigation motives and actions by the police. Finally, defense counsel endeavored to protect the defendant by the use of lengthy cross-examination of prosecution witnesses. In light of the Beasley standards, defense counsel’s performance does not suggest unpreparedness, lack of skill or a failure to protect defendant’s interests. In all respects, the defendant was provided with adequate representation.
We have examined the defendant’s remaining two issues and find them without merit.
Affirmed.
Since repealed by 1978 PA 368, § 7101 et seq. The present controlled substances act is found in MCL 333.7101 et seq.; MSA 14.15(7101) et seq. | [
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Per Curiam.
Defendant was convicted by a jury of breaking and entering a building with the intent to commit the crime of larceny therein, contrary to MCL 750.110; MSA 28.305. Defendant was sentenced to 3 to 10 years imprisonment and appeals.
On appeal, defendant contends that he was denied his Federal and state constitutional rights to trial by jury and a fair trial by the following instruction:
“Now your verdict must be unanimus [sic] if possible. You have a right to disagree if you want to but you ought not to just disagree to disagree. If you find that you are not in accord with the other jurors you ought to examine your position. * * * Is my position based upon the evidence and the law? Not is my position based upon some prejudice or sympathy? You ought to analyze your position if this occurs. If you feel to the point that my position is sound and it is based upon facts and the law you should not change but if you find that your position is based upon sympathy or prejudice you ought to immediately change your position and say so. You ought not to be obstinate. Be reasonable and discuss the evidence and the law with the other jurors. Don’t take the position and say now listen when you come around to the way I think then we’re going to get out of here but until you do we’re going to stay in here, don’t take that position. Be reasonable again and discuss the matter, arrive at a verdict if you can.” (Emphasis added.)
Defendant’s allegation of error focuses on the words "unanimous if possible”. Trial counsel neither objected to the instruction given nor requested a curative instruction. Trial counsel also specifically declined an offer by the trial court to have the jury polled.
After the jury returned the verdict of guilty, the following colloquy occurred:
"CLERK: Everyone rise and raise your right hand.
"THE COURT: Guilty of what, as charged or what?
"FOREMAN: As charged.
"THE COURT: All right.
"CLERK: Everyone stand and raise your right hand.
"Members of the jury, you do say upon your oaths that you find the defendant William Johnson, Jr. guilty of breaking and entering other [sic] building with intent to commit the crime of larceny, so say you Mr. Foreman, and so say you all, members of the jury?”
In addition to claiming that the trial court’s instructions deprived him of his right to a trial by jury and to a fair trial, defendant further claims that trial counsel’s failure to act amounted to a serious mistake which deprived the defendant of his right to a fair trial. See People v Garcia, 398 Mich 250; 247 NW2d 547 (1976), People v Degraffenreid, 19 Mich App 702; 173 NW2d 317 (1969).
The United States Supreme Court has interpreted the Sixth and Fourteenth Amendments to allow states to dispense with the traditional requirement of unanimity in criminal cases. Apodaca v Oregon, 406 US 404; 92 S Ct 1628; 32 L Ed 2d 184 (1972), Johnson v Louisiana, 406 US 356; 92 S Ct 1620; 32 L Ed 2d 152 (1972). However, under Michigan’s constitutional provision that the right to trial by jury "remains”, jury verdicts in criminal cases must be unanimous unless the parties stipulate in writing or on the record that a majority verdict will suffice. See Const 1963, art 1, § 14, People v Burden, 395 Mich 462; 236 NW2d 505 (1975), GCR 1963, 512.1.
In People v Burden, supra, the trial judge failed to instruct the jury that its verdict had to be unanimous. No such instruction was requested, and no objection was made to the instructions given. Defense counsel also specifically declined an offer by the trial court to have the jury polled. The Court held that reversal was not warranted. Justices Levin, Fitzgerald, and Kavanagh so held because of trial counsel’s failure to object or to request that the jury be polled.
"The trial court should instruct a jury in a criminal case that their verdict must be unanimous to avoid any confusion with verdicts in civil cases which need not be unanimous. Inasmuch as trial counsel did not object to the instruction given, and specifically declined an offer by the trial court to have the jury polled, we decline to set aside the verdict. If defendant had any doubt as to the unanimity of the jury’s verdict, he should have polled the jury. People v Willie Johnson, 58 Mich App 165, 169; 227 NW2d 272 (1975).” People v Burden, supra, 468-469.
Justices Williams, Coleman and Lindemer concurred, but reasoned that the defendant received a fair trial for several reasons. First, they explained that the following instruction given by the trial court sufficiently apprised the jury of the requirement of a unanimous verdict:
" 'Now, so that in our system we say, we don’t say he is guilty, or we don’t say he is innocent because if we did there wouldn’t be anything for you to do. We say we presume you innocent until you are proven guilty to the satisfaction of each juror and beyond a reasonable doubt, so it is a presumption.’ ” People v Burden, supra, 470. (Emphasis in Burden.)
Second, when announcing its verdict, the jury-answered in the affirmative when asked the following question by the clerk:
" 'Members of the jury rise and raise your right hand over your heart and hearken to the verdict as recorded to this court, you say upon your oaths you find the defendant, Jimmy Burden, guilty of robbery unarmed, so say you, Mr. Foreman, so say you all members of the jury?’ ” People v Burden, supra, 470. (Emphasis in Burden.)
Third, trial counsel specifically rejected an offer to have the jury polled.
In People v Sanford, 402 Mich 460; 265 NW2d 1 (1978), five of the justices adopted the view of the Burden concurrence, but still refused to reverse where the trial judge failed to instruct the jury that its verdict had to be unanimous because the jury was advised of the unanimity requirement during its orientation and also because all the jurors acknowledged to the trial judge that they agreed on the verdict.
The instant case differs from Sanford and Burden in that the jury was given an erroneous instruction on unanimity. In Sanford and Burden, no instruction at all was given. The phrase "your verdict must be unanimous if possible” implies that even though a 12-0 verdict is desired, perhaps a 7-5 verdict is permissible. The bottom line is that a 12-0 verdict is required. The one question asked by the clerk does not solve the problem. It simply inquired of the foreman and the other jurors whether they collectively found the defendant guilty. Any juror, including the foreman, having been given the instruction in question, could have answered this question in the affirmative, even though defendant’s guilt was determined by a 7 to 5 vote.
Thus, the erroneous instruction coupled with defense counsel’s failure to act upon the judge’s invitation to have the jury polled requires that defendant be given a new trial.
Reversed and remanded. | [
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Per Curiam.
Plaintiffs brought the present suit for personal injuries arising from an auto accident which occurred on July 10, 1976. The statute of limitations for actions for personal injuries is three years. MCL 600.5805(8); MSA 27A.5805(8). Plaintiffs’ complaint was processed and date-stamped by the court clerk on July 12, 1979. The trial court found that plaintiffs’ complaint was "filed” on July 12, 1979, and granted accelerated judgment in defendants’ favor based upon the expiration of the statute of limitations. Plaintiffs appeal as of right.
Although plaintiffs’ attorney alleges that the complaint was mailed six days before the expiration of the statute of limitations, plaintiffs acknowledge that it is impossible to prove the actual date and time the complaint was received by the court clerk. Plaintiffs maintain that the mailing constitutes a filing within the statute of limitations.
"It is a well recognized general rule that a paper or document is filed, so far as the rights of the parties are concerned, when it is delivered to and received by the proper officer to be kept on file, and the indorsement of the officer with whom it is filed is but evidence of the time of filing.” People v Madigan, 223 Mich 86, 89; 193 NW 806 (1923). (Emphasis added.)
Michigan law holds that "mailing” does not constitute "filing”. King v Calumet & Hecla Corp, 43 Mich App 319, 326; 204 NW2d 286 (1972), Detroit United Railway v Dep’t of Labor & Industry 231 Mich 539; 204 NW 707 (1925). The only evidence before the trial court as to the time of the filing of the plaintiffs’ complaint was the endorsement on the complaint which indicated that the time of filing was July 12, 1979.
The trial court’s finding of fact that July 12, 1979, was the date of the filing of the complaint will not be set aside by this Court unless clearly erroneous. A finding is clearly erroneous when this Court, after reviewing the entire record, is left with a definite and firm conviction that a mistake has been committed although there is evidence to support the finding. Tuttle v Dep’t of State Highways, 397 Mich 44; 243 NW2d 244 (1976). GCR 1963, 517.1.
This Court is not left with a definite and firm conviction that the trial court committed a mistake in finding that the plaintiffs’ complaint was filed on July 12, 1979, two days after the expiration of the statute of limitations. The only evidence before the trial court as to the time of filing supports this finding of fact.
The trial court’s award of accelerated judgment in favor of the defendants is hereby affirmed.
Affirmed. Defendants may tax costs. | [
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Cynar, J.
Plaintiffs appeal from an order granting defendant’s motion for summary judgment entered in the Kent County Circuit Court on April 22, 1980. The motion was brought by defendant pursuant to GCR 1963, 117.2(1) and (3). It appears from the order entered that the judgment was granted under GCR 117.2(1), the court finding that plaintiffs had failed to state a claim upon which relief could be granted.
The parties have stipulated to the facts for purposes of this appeal. On May 23, 1979, plaintiff Wittenbach was the owner and operator of a farm tractor which was being driven in a southerly direction on Lincoln Lake Road for the purpose of gaining access to his fields. Defendant, Allstate Insurance Company, was the no-fault automobile insurer of a 1977 Chevrolet belonging to Rory Dean Giles of Greenville, Michigan. Mr. Giles was driving his car on Lincoln Lake Road, also traveling in a southerly direction, when the car collided with the rear of Wittenbach’s tractor.
Mr. Wittenbach’s tractor was damaged as a result of the collision in the amount of $5,900, for which plaintiff Pioneer State Mutual Insurance Company compensated Mr. Wittenbach in the amount of $5,800, pursuant to a general farm policy of insurance. The Pioneer State Mutual Insurance Company and Mr. Wittenbach made a claim to defendant within one year of the accident for compensation for the amount of the damage. The claim was denied.
Plaintiff Pioneer, as subrogor to its insured, Mr. Wittenbach, brought the instant case to recover the $5,800 it had paid to Wittenbach for the damage to his tractor, and plaintiff Wittenbach sought the $100 balance of the damages. Plaintiffs’ complaint alleged that they were entitled to recover the above amounts under § 3121 of the Michigan no-fault act, MCL 500.3121; MSA 24.13121. In its motion for summary judgment, defendant argued that the property damage suffered by plaintiffs was excluded from coverage under § 3123 of the no-fault act, MCL 500.3123; MSA 24.13123, which excludes from coverage property damage to certain "vehicles”.
At the hearing on defendant’s motion, plaintiffs argued that a tractor does not come within the definition of "vehicle” and, thus, is not subject to the above exclusion. Plaintiffs also contended that, if a tractor is a vehicle under the act, the act is unconstitutional.
The trial court found that the exclusion of vehicles under § 3123 is applicable to the tractor in the instant case, rejected plaintiffs’ constitutional challenge, and granted defendant’s motion.
We first address the question of the applicability of § 3123 to the instant case.
The Michigan automobile no-fault act provides the basis for property protection insurance coverage in automobile insurance policies. This coverage is set forth in § 3121 of the act, MCL 500.3121; MSA 24.13121, as follows:
"Under property protection insurance an insurer is liable to pay benefits for accidental damage to tangible property arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle subject to the provisions of this section and sections 3123, 3125, and 3127.”
The act then specifically excludes from this property protection insurance coverage damages to certain kinds of property. Section 3123(1)(a) of the act, MCL 500.3123(1)(a); MSA 24.13123(1)(a), provides:
"Damage to the following kinds of property is excluded from property protection insurance benefits:
"(a) vehicles and their contents, including trailers, operated or designed for operation upon a public high way by power other than muscular power, unless the vehicle is parked in a manner as not to cause unreasonable risk of the damage which occurred.”
Therefore, damage to "vehicles” being operated upon a public highway is excluded from property protection insurance benefits.
The narrow question, then, is whether the tractor in the instant case was, at the time of the accident, a "vehicle” as defined in § 3123(l)(a). If so, plaintiffs may not recover, and the trial court’s grant of summary judgment was correct. If not, plaintiffs must be allowed to proceed.
Plaintiffs contend that the terms "motor vehicle” and "vehicle” are used interchangeably throughout the act and that a farm tractor has been held not to be a motor vehicle under the act, citing Shoemaker v National Ben Franklin Ins Co of Michigan, 78 Mich App 175; 259 NW2d 414 (1977). Plaintiffs are incorrect.
Shoemaker held that the owner of a tractor was not required to maintain no-fault insurance because tractors were exempt from registration and thus § 3101(1) of the act, MCL 500.3101(1); MSA 24.13101(1), did not apply. It does not follow that tractors are not subject to the exclusion of § 3123.
A "motor vehicle” is defined in § 3101(2) of the act, MCL 500.3101(2); MSA 24.13101(2), as one particular type of a broader class of items referred to as "vehicles”. This Court, in Degrandchamp v Michigan Mutual Ins Co, 99 Mich App 664, 667; 299 NW2d 18 (1980), specifically rejected the possibility that the terms in question were used interchangeably and recognized that the term "vehicle” had a distinct definition in § 3123. Degrandchamp held that a motorcycle was not a "motor vehicle” under § 3101(2) but was a "vehicle” under § 3123. See Braden v Spencer, 100 Mich App 523; 299 NW2d 65 (1980).
That a tractor is included within this broader class of "vehicles” is implied in Shoemaker and supported by the fact that the Legislature uses the term "vehicle” as including tractors in various statutes other than the no-fault act. MCL 257.16; MSA 9.1816 defines a "farm tractor” as one type of "motor vehicle”, and MCL 257.62; MSA 9.1862 includes "farm tractors” in a class of "vehicles” called "special mobile equipment”.
The rationale by which the Shoemaker Court arrived at its result that the no-fault act was inapplicable to a tractor was not that the tractor wasn’t a "motor vehicle” but that it was excepted from registration by MCL 257.216(c); MSA 9.1916(c). That section provides that "vehicles” are subject to registration and then it provides for certain exceptions, one of which is "implements of husbandry”. The panel in Shoemaker regarded the tractor as a "motor vehicle” that was not required to be registered by reason of the "implements of husbandry” exception.
Application of § 3123(l)(a) to the instant case shows that the exclusion applies because the tractor was (1) a vehicle, (2) being operated on a public highway, and (3) being operated by power other than muscular power.
As defendant points out, the exclusion of § 3123(l)(a) applies even if the term "vehicle” as used in that section means "motor vehicle” as used in § 3101(2) because the tractor in the instant case met both definitions at the time of the accident, there being no relevant distinction between the two definitions as applied to this case.
We therefore find that the trial court’s decision was correct and that defendant was entitled to summary judgment.
Having made this determination, we now address plaintiffs’ challenge to the constitutionality of the statute as we have interpreted it.
Plaintiffs argue that under our interpretation there exists a class of property owners who are denied due process and equal protection. This class consists of those owners of vehicles excluded from personal property insurance benefits under § 3123 whose vehicles are not also subject to the requirement of § 3101(1) that they maintain no-fault insurance. Plaintiffs specifically argue that the trial court’s interpretation of § 3123 is unconstitutional because it deprives the aforementioned class of their common-law tort remedies without participation in the no-fault scheme and without permitting them to recover personal property insurance benefits for damage done to their vehicles.
Plaintiffs’ argument rests on the premise that there is a difference in treatment of recovery for property damage under the act between owners of "vehicles” under § 3123 and owners of "motor vehicles” required to be registered (and thus required to maintain no-fault insurance) under § 3101(1). In fact, there is no such difference. Both classes of property owners are treated alike under the act with respect to unintentional property damage to their "vehicles” (or "motor vehicles”). Their common-law tort remedy against the owner or registrant of a motor vehicle required to be registered in Michigan is abolished by § 3135(2). They are left with the choice of either voluntarily obtaining insurance for such damage from their own insurer or taking the risk of such damage and absorbing it themselves. The fact that some of these property owners are required to maintain other insurance coverage under § 3101(1) is irrelevant. Thus, plaintiffs have failed to define a meaningful class for purposes of analyzing the constitutionality of § 3123.
Having determined this, it can be seen that plaintiffs’ challenge is controlled by the analyses in Shavers v Attorney General, 402 Mich 554, 625-633; 267 NW2d 72 (1978), which specifically addressed the question of whether the no-fault act’s property damage protection scheme violates the due process and equal protection clauses of the Michigan and United States Constitutions.
Although plaintiffs claim that they have been denied "participation” in the no-fault scheme, they have in fact been included in it by being afforded all of the theoretical benefits of the property damage protection scheme as set forth in Shavers.
As to plaintiffs’ argument that they have been denied an "alternative forum”, the argument is inappropriate to the problem alleged by plaintiffs in that the "alternative forum” language refers to cases where plaintiff has been denied access to the courts. This is not such a case. Furthermore, owners of tractors (and other vehicles) have the same opportunity to insure themselves against property damage as do owners of motor vehicles required to be registered in Michigan. In the instant case, the loss fell on the tractor owner’s insurer to the extent of the insurance voluntarily carried by the owner ($5,800) and on the owner himself to the extent that he chose not to insure himself against such loss (the $100 deductible amount). This is the result analyzed and sanctioned in Shavers.
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Per Curiam.
Before his divorce from his first wife, Charles E. Humphrey, now deceased, established a trust designating himself and his two sons by his first marriage as the beneficiaries. Later, the trust instrument was amended to provide that the Detroit Bank & Trust Company would be the successor trustee upon his death. Humphrey then executed a will naming his second wife, the appellant here, as the sole beneficary and designated Detroit Bank & Trust Company as executor. The assets of the trust were substantial and came primarily from the stock of two businesses owned by Humphrey and his brother.
Upon decedent’s demise in December, 1976, the Detroit Bank & Trust Company assumed its duties as executor of his estate and trustee of the inter vivos trust. It filed its inventory and its first annual account as executor. After the appellant withdrew her objections to the account, the probate court entered an order allowing the first annual account of the executor.
After obtaining the services of different counsel and four months after the allowance of the first annual account, the appellant filed a petition, later twice amended, asking the probate court to remove the Detroit Bank & Trust Company as executor, to set aside the allowance of the first annual account, and to hold the inter vivos trust invalid so that its assets might be included in the decedent’s estate. This petition and one for rehearing were denied.
Appellant then filed with this Court a claim of appeal from the order denying this petition pursuant to MCL 600.861; MSA 27A.861, which provides inter alia that a party to a proceeding in the probate court may appeal as a matter of right to the Court of Appeals from a "final order affecting the rights or interests of any interested person in an estate or trust”. Since the order in question was entered in a decedent’s estate, the issue is whether or not the order here involved was a "final” order and therefore appealable to this Court rather than the circuit court. The parties have filed separate briefs on the question of this Court’s jurisdiction.
Since there is no statutory or rule definition of the term "final” as used in MCL 600.861; MSA 27A.861, the determination of which probate court orders are "final” and which are not, for purposes of determining the appellate jurisdiction of this Court, must be made on a case-by-case basis. In re Swanson Estate, 98 Mich App 347; 296 NW2d 256 (1980). The test of finality of a probate court order is whether it affects with finality the rights of the parties in the subject matter. Equitable Trust Co v Bankers Trust Co, 268 Mich 394, 397-398; 256 NW 460 (1934), In re Swanson Estate, supra.
The fact that one or more rulings of the probate court contained in an order may be appealable as a matter of right to this Court does not render the entire order appealable to the Court of Appeals. In re Butterfield Estate, 100 Mich App 657, 667-668; 300 NW2d 359 (1980). The finality of each ruling or decision contained in the probate court order must be considered individually and can be determined only by an examination of the effect on the rights of the parties involved.
The petition here involved constituted a motion for rehearing of the order allowing the first annual account. An order denying a rehearing is not a "final” order but, rather, a post-judgment order, which, in and of itself, is appealable by leave only. In re Mitros Estate, 106 Mich App 271; 307 NW2d 471 (1981). Therefore, that portion of the order denying the petition to set aside the allowance of the first annual account was not a "final” order appealable as a matter of right to this Court under MCL 600.861; MSA 27A.861.
We also hold that that portion of the order denying invalidation of the inter vivos trust is not a "final order” appealable as a matter of right to this Court under MCL 600.861; MSA 27A.861. We note that the question of the validity of the inter vivos trust is the subject of a separate action pending in the Oakland County Circuit Court.
Regarding the petition to remove the bank as executor, we choose not to apply our dictum in the opinion of In re Butterfield Estate, supra, where we stated that an order denying a petition to remove a trustee of a testamentary trust was a final order appealable as a matter of right but dismissed that portion of the appeal as moot due to the intervening death of the trustee in question. The impact of an order denying removal of an executor or personal representative is different from that of an order denying removal of a testamentary trustee. Normally, testamentary trusts are by nature of long duration. Further, Article 8 of the Revised Probate Code, MCL 700.801 et seq.; MSA 27.5801 et seq., provides for an independent administration of trusts. Although MCL 700.814; MSA 27.5814 requires a trustee to keep all beneficiaries of the trust informed of the administration, no section of Article 8 of the code requires court approval of the annual accounts of testamentary trustees who are acting under the provisions of Article 8 of the code.
On the other hand, the Revised Probate Code indicates a legislative policy in favor of the completion of the administration of decedent’s estates without undue delay. Further, in the instant case, the executor bank is conducting the affairs of the decedent’s estate under the supervision of the probate court. Since that portion of the order denying the petition to remove the bank as executor is not dispositive of any of the substantial rights of the parties, we conclude that this portion of the order is not a "final order” appealable as a matter of right to this Court under MCL 600.861; MSA 27A.861.
This appeal is therefore dismissed without prejudice to the appellant to pursue her appropriate appellate remedies in the circuit court.
The appeal is dismissed.
Although the trustees of the Butterfield trust were not proceeding under Article 8, they may in the future. MCL 700.834; MSA 27.5834.
Section 167 of the Revised Probate Code, MCL 700.167; MSA 27.5167, provides that pecuniary devises bear interest beginning one year after appointment of the first personal representative, unless otherwise provided hy will. Section 357 of the Code, MCL 700.357; MSA 27.5357, sets a fourteen-month time limit on the administration of an estate in independent probate, at the expiration of which time the personal representative must justify failure to conclude the administration of the estate. | [
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Per Curiam.
On February 22, 1977, plaintiff filed a verified complaint and sought relief under the authority of GCR 1963, 908. In his complaint, plaintiff asserted that he was a 50% shareholder, officer, and director of Livonia Physicians X-Ray, P.C., a professional medical corporation. The various allegations included breach of the attorney-client relationship, breach of fiduciary, legal, and ethical duties, fraud, and legal malpractice. Defendant filed a motion for summary judgment on the basis that GCR 1963, 908 did not apply to this case and no attorney-client relationship existed with plaintiff. This motion was denied on August 17, 1977.
Following the trial court’s order denying defendant’s motion for summary judgment, plaintiff deposed attorney Donald Epstein. However, during the deposition Epstein repeatedly refused to answer questions, claiming an attorney-client privilege. Plaintiff moved for an order compelling discovery, but the trial court denied the motion by order dated June 11, 1979. This order also extended to both parties the opportunity to take an interlocutory appeal from the denial of their respective motion.
This Court granted leave to take the interlocutory appeals by orders dated January 8, 1980. One of these orders consolidated the appeals for hearing and decision.
The following factual recitation comes from plaintiffs complaint and the statement of facts appearing in his brief. Since we are obligated to consider the facts in the light most favorable to the nonmoving party when passing on a motion for summary judgment pursuant to GCR 1963, 117.2(1), we are hereinafter setting forth this favorable picture.
In the summer of 1973, plaintiff, a radiologist practicing medicine in Ohio, was asked by Dr. Rudolfo Lopez to come to Michigan and join him in the practice of radiology at St. Mary’s Hospital in Livonia. In August, 1973, the doctors formed a professional corporation known as Livonia Physicians X-Ray. Each doctor owned 50% of the stock, was an employee of the corporation, and received an identical salary. Plaintiff contends that the bylaws adopted by the two shareholders made each of them a member of the Board of Directors and that the two of them constituted the entirety of the board. Dr. Lopez was president of the corporation, and Dr. Fassihi was the secretary-treasurer.
Shortly after the corporation was organized, plaintiff sought and obtained medical staff privileges at St. Mary’s. For a period of approximately 18 months, the doctors practiced together at the hospital in the radiology department.
Sometime on or before June 4, 1975, Dr. Lopez decided that he no longer desired to be associated with plaintiff. Consequently, Lopez requested that the attorney for the professional corporation, the defendant, ascertain how plaintiff could be ousted from Livonia Physicians X-Ray._
On or about June 6, 1975, defendant’s agent, Donald Epstein, Esquire, personally delivered to plaintiff a letter dated June 4, 1975, purporting to terminate his interest in the professional corporation. The letter stated that this termination followed a meeting of the board of directors. Plaintiff denies that any such meeting ever occurred. On June 9, 1975, plaintiff went to St. Mary’s to perform his duties as a staff radiologist. At this time officials at the hospital told him that, due to his "termination” from the professional corporation, he was no longer eligible to practice at St. Mary’s.
Dr. Lopez had an agreement with St. Mary’s Hospital prior to plaintiff’s association with Livonia Physicians X-Ray giving him personal and sole responsibility for staffing the radiology department. This agreement necessitated membership in Livonia Physicians X-Ray, P.C.
Defendant was responsible for drafting all the agreements pertaining to membership in the professional corporation. Defendant, and specifically Donald Epstein, had knowledge of the arrangements between Dr. Lopez and the hospital but never disclosed these facts to plaintiff. Plaintiff finally states that defendant has represented both Lopez individually and the professional corporation without disclosing to him this dual representation.
This case presents us with the difficult question of what duties, if any, an attorney representing a closely held corporation has to a 50% owner of the entity, individually. This is a problem of first impression in Michigan.
We start our analysis by examining whether an attorney-client relationship exists between plaintiff and defendant. If no such relationship exists, plaintiff’s invocation of GCR 1963, 908 as the jurisdictional basis of the suit must fail, and, at a minimum, plaintiff will have to amend his complaint.
A corporation exists as an entity apart from its shareholders, even where the corporation has but one shareholder. Bourne v Muskegon Circuit Judge, 327 Mich 175, 191; 41 NW2d 515 (1950), Elliott v Smith, 47 Mich App 236, 241; 209 NW2d 425 (1973), lv den 390 Mich 767 (1973). While no Michigan case has addressed whether a corporation’s attorney has an attorney-client relationship with the entity’s shareholders, the general proposition of corporate identity apart from its shareholders leads us to conclude, in accordance with decisions from other jurisdictions, that the attorney’s client is the corporation and not the shareholders. See, for instance, US Industries, Inc v Goldman, 421 F Supp 7, 11 (SD NY, 1976), Stratton Group, Ltd v Sprayregen, 466 F Supp 1180, 1184, fn 3 (SD NY, 1979), Fanchon & Marco, Inc v Leahy, 351 Mo 428, 456; 173 SW2d 417, 433 (1943).
Although we conclude that no attorney-client relationship exists between plaintiff and defendant, this does not necessarily mean that defendant had no fiduciary duty to plaintiff. The exis tence of an attorney-client relationship merely establishes a per se rule that the lawyer owes fiduciary duties to the client.
A fiduciary relationship arises when one reposes faith, confidence, and trust in another’s judgment and advice. Where a confidence has been betrayed by the party in the position of influence, this betrayal is actionable, and the origin of the confidence is immaterial. Smith v Saginaw Savings & Loan Ass’n, 94 Mich App 263, 274; 288 NW2d 613 (1979). Furthermore, whether there exists a confidential relationship apart from a well defined fiduciary category is a question of fact. See In re Wood Estate, 374 Mich 278; 132 NW2d 35 (1965). Based upon the pleadings, we cannot say that plaintiffs claim is clearly unenforceable as a matter of law.
Plaintiff asserts that he reposed in defendant his trust and confidence and believed that, as a 50% shareholder in Livonia Physicians X-Ray, defendant would treat him with the same degree of loyalty and impartiality extended to the other shareholder, Dr. Lopez. In his complaint plaintiff states that he was betrayed in this respect. Specifically, plaintiffs asserts that he was not advised of defendant’s dual representation of the corporate entity and Dr. Lopez personally. Plaintiff also alleges that he was never informed of the contract between Lopez and St. Mary’s which gave Lopez sole responsibility in the staffing of the radiology department and, more importantly, the defendant actively participated with Lopez in terminating plaintiffs association with the corporation and using the Lopez-St. Mary’s contract to his detri-ment_
In support of his position that he has an attorney-client relationship with defendant, plaintiff cites a number of cases standing for the proposition that the corporate veil will be pierced where the corporate identity is being used to further fraud or injustice. See Paul v University Motor Sales Co, 283 Mich 587, 601-602; 278 NW 714 (1938), Predeteanu v Freud, Markus, Salvin & Mountain, 79 Mich App 340, 345; 261 NW2d 317 (1977). These cases are not factually similar to the instant matter as they involve claims against a corporate principal attempting to protect himself from personal liability through the corporate entity. At the same time, these cases are instructive as they point out the difficulties in treating a closely held corporation with few shareholders as an entity distinct from the shareholders. Instances in which the corporation attorneys stand in a fiduciary relationship to individual shareholders are obviously more likely to arise where the number of shareholders is small. In such cases it is not really a matter of the courts’ piercing the corporate entity. Instead, the corporate attorneys, because of their close interaction with a shareholder or shareholders, simply stand in confidential relationships in respect to both the corporation and individual shareholders.
In addition to the claim for breach of fiduciary duties, plaintiff contends that his complaint states a cause of action for fraud. The elements of fraud are: (1) a material representation which is false; (2) known by defendant to be false, or made recklessly without knowledge of its truth or falsity; (3) that defendant intended plaintiff to rely upon the representation; (4) that, in fact, plaintiff acted in reliance upon it; and (5) thereby suffered injury. Hyma v Lee, 338 Mich 31, 37; 60 NW2d 920 (1953), Cormack v American Underwriters Corp, 94 Mich App 379, 385; 288 NW2d 634 (1979). The false material representation needed to establish fraud may be satisfied by the failure to divulge a fact or facts the defendant has a duty to disclose. An action based on the failure to disclose facts is one for fraudulent concealment. Wolfe v A E Kusterer & Co, 269 Mich 424, 427-428; 257 NW2d 729 (1934).
Plaintiff’s fraudulent concealment claim is premised on defendant’s failure to divulge its dual representation of Livonia Physicians X-Ray and the failure of defendant to disclose the existence of the contract between Dr. Lopez and St. Mary’s Hospital. We agree with plaintiff that, irrespective of any other duty, defendant would have an obligation to divulge its dual representation of the corporation and Dr. Lopez individually. The failure to divulge this fact might serve as the basis for a fraudulent concealment action. We cannot agree, however, that defendant had an obligation to divulge the existence or contents of the Lopez-St. Mary’s Hospital contract to plaintiff. Defendant’s knowledge of this contract arose out of a confidential attorney-client relationship between them and Dr. Lopez. This attorney-client relationship prohibited defendant from divulging facts learned during the course of representation of Dr. Lopez unless Lopez waived his right to the attorney-client privilege. While defendant should have, and likely did, consider the effect that its relationship with Lopez might have on the representation of the corporation and incidentally plaintiff, as a 50% shareholder, officer, and director, it was not prohibited from representing both if its employees’ independent professional judgment on behalf of either would not likely be adversely affected by representation of the other. Code of Professional Responsibility and Canons, DR 5-105(C).
Plaintiff’s complaint does state a cause of action, albeit not pursuant to GCR 1963, 908. Despite the technical defect in the complaint, we affirm the trial court’s order denying summary judgment. However, plaintiff must amend his complaint in accordance with the dictates of this opinion within 20 days of its receipt. By this opinion we grant plaintiff leave to amend pursuant to GCR 1963, 118.1. Failure to amend will result in the dismissal of this case.
We now turn to the issue of whether defendant has a privilege to refuse to answer questions relative to communications concerning the ouster of plaintiff from the corporation. Defendant contends that these communications are privileged because they were made on behalf of the majority of the board of directors and the attorney-client privilege belongs to the control group.
We hold that under defendant’s own argument, the attorney-client privilege may not be asserted against plaintiff. As a member of the board of directors, plaintiff was a member of the corporate control group. See Diversified Industries, Inc v Meredith, 572 F2d 596 (CA 8, 1977). Thus, with respect to any communications defendant had with Dr. Lopez while representing the corporation, as opposed to Lopez personally, plaintiff, as a member of the control group, is equally entitled to this information.
Additionally, defendant acknowledges that the attorney-client privilege does not protect communications made for the purpose of perpetrating a fraud. See Garner v Wolfinbarger, 430 F2d 1093 (CA 5, 1970). Although plaintiff’s complaint does not use the magic word "fraud”, the gist of his complaint rests on a species of fraud. Plaintiff asserts that defendant, while under the guise of representing the corporation, conspired to withhold information from him which he had a right to have as a 50% shareholder and member of the board of directors and to wrongfully deprive him of the benefits of a business opportunity. These allegations were sufficient to defeat the invocation of the attorney-client relationship pursuant to the fraud exception.
Affirmed in part, reversed in part and remanded for proceedings consistent with this opinion. Plaintiff may tax costs._
Staffney v Fireman’s Fund Ins Co, 91 Mich App 745, 751; 284 NW2d 277 (1979), and cases cited therein.
Whether or not the by-laws of the professional corporation made Drs. Fassihi and Lopez the sole directors of the organization, Donald Ejpstein in a deposition contended that a Joseph Carolan was a third director. Mr. Carolan was apparently the business manager of Livonia Physicians X-Ray. We assume that at least defendant considers him a proper director. Otherwise, it would have been impossible for Lopez to effect his scheme of terminating Fassihi’s association with the professional corporation as Fassihi would have undoubtedly opposed the plan. In any case, a corporate arrangement whereby one 50% shareholder can oust the other 50% shareholder — whether individually or with the assistance of a third director — seems highly unusual and comes to us on a stipulated hypothetical for purposes of this appeal.
See Greenhouse, In Corporate Law, Who’s the Client?, The New York Times (February 15, 1981), p 20E.
If any fiduciary duty does exist, however, the jurisdiction of the court cannot rest on GCR 1963, 908.
The Code of Professional Responsibility and Canons, DR 5-105 requires full disclosure of dual representation of parties to the clients involved and forbids dual representation in some circumstances.
Although factually different, Prescott v Coppage, 266 Md 562; 296 A2d 150 (1972) is illuminating in its discussion of an attorney’s obligations to third parties apart from a specific attorney-client relationship. In Prescott, the Maryland court found that the attorney owed a duty to a preferred creditor on a third-party beneficiary theory. The question in any given case is whether, irrespective of an actual attorney-client relationship, plaintiff has pled sufficient allegations tending to show some legal duty on the part of the attorney to him personally.
This is not to say that Dr. Lopez’s personal failure to divulge the existence of his contract with St. Mary’s Hospital could not serve as the basis for a fraudulent concealment claim.
To the extent the complaint alleges that defendants conspired with Dr. Lopez after plaintiff became a 50% shareholder of the corporation to use the Lopez-St. Mary’s agreement to deprive him of the business opportunity he thought he had obtained, a cause of action is stated for breach of a fiduciary duty. It is not the failure to divulge the existence of the Lopez-St. Mary’s Hospital contract in the first instance which is the basis of the action, however. The cause of action arises because of defendant’s fiduciary duty to plaintiff and breach of this duty by covertly colluding with Dr. Lopez to deprive plaintiff of the business opportunity.
By this opinion we do not want to be understood as making any comment on how this litigation should ultimately come out. | [
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Beasley, J.
Defendant, Gillis James Rice, was convicted in a nonjury trial of assault with intent to commit criminal sexual conduct involving penetration, in violation of MCL 750.520g(l); MSA 28.788(7)(1). He was sentenced to not less than six years and eight months nor more than ten years in prison. Subsequent to this conviction, the prosecutor filed a supplemental information charging defendant as an habitual (third) offender. In a jury trial, defendant was then convicted as a third offender, in violation of MCL 769.11; MSA 28.1083, and his prior sentence was increased to not less than 13 years nor more than 20 years in prison. He now appeals as of right.
Defendant contends that, under the rule stated in People v Fountain, his conviction as an habitual offender must be vacated where the prosecutor had knowledge of defendant’s prior convictions but did not file a supplemental information until after his conviction on the original charge.
In deciding whether this contention has merit, we must address the question of whether Fountain should be given retroactive application.
In Fountain, the Michigan Supreme Court va cated the habitual offender sentences of defendants Fountain and Jones, stating:
"A prosecutor who knows a person has a prior felony record must promptly proceed, if at all, against the person as an habitual offender. People v Hatt, 384 Mich 302; 181 NW2d 912.(1970); People v Stratton, 13 Mich App 350; 164 NW2d 555 (1968). The prosecutor is not foreclosed from proceeding against a person as an habitual offender after conviction on the current offense provided he is unaware of a prior felony record until after the conviction. MCL 769.13; MSA 28.1085. The only recognized exception to this rule is when the delay is due to the need to verify out-of-state felony convictions based on the 'rap sheet’. People v Hendrick, 398 Mich 410; 247 NW2d 840 (1976).
"Here, the prosecutors must be presumed to have known of the defendants’ prior felony records because their respective offices prosecuted the prior felonies. The habitual offender charges should have been filed with the information which charged the last felony to provide fair notice to the accused and avoid an appearance of prosecutorial impropriety.”
Justice Coleman, joined by Justice Ryan, concurred in the results reached:
"Although the result in Jones may not be statutorily or constitutionally required, especially in the absence of any allegation or showing of prejudice from the delay, it is based on this Court’s supervisory powers over the practices and procedures used in the courts of this state. In order to avoid even the appearance of impropriety, the prosecutor should file the habitual offender information with the information charging the principal offense when he or she has prior knowledge of defendant’s previous conviction(s).” (Footnotes omitted.)
In the instant case, the information on the underlying felony was filed on August 4, 1978. At his arraignment on August 7, 1978, defendant was informed on the record that a supplemental information would be filed charging him as an habitual offender if a conviction was obtained. On February 1, 1979, defendant was convicted of the underlying charge (attempted criminal sexual conduct) in a bench trial. On February 2, 1979, he was charged in a supplemental information as a third felony offender. Defendant was convicted by a jury of this charge on June 28, 1979.
The Supreme Court has not given a clear ruling on whether or not the rule in Fountain is to be applied retroactively. In People v Morris which is a one-sentence order, the Court, apparently giving Fountain retroactive effect, vacated the defendant’s habitual offender sentence and ordered that his original sentence be reinstated.
In People v Devine, this Court held that the prosecutor had not erred in filing an habitual offender information after the defendant’s conviction where the prosecutor had knowledge of defendant’s record before trial. The case was remanded for resentencing, however, because the trial court had improperly imposed separate sentences for the underlying felony and for the habitual offender conviction.
The Supreme Court reversed the part of the Devine decision of this Court which remanded the case for resentencing, affirmed the part of the decision which vacated the defendant’s habitual offender sentence, and ordered that defendant’s sentence on the underlying felony remain intact.
While the Court in Devine appeared to be apply ing Fountain to prevent resentencing of defendant on his habitual offender conviction, it did not reverse this conviction and stated that, in resolving this case, it intimated no opinion on the retro-activity of Fountain.
In People v Ronald Brown, in a three-sentence order, the Supreme Court remanded the case to this Court to decide the issues of (1) whether the timing of the prosecutor’s filing of the supplemental information was violative of the rule announced in Fountain and (2), if so, whether Fountain should be given retroactive effect.
In People v Hampton, the Court set forth three factors to be considered in determining whether a law should be applied retroactively or prospectively:
<<* * * (!) the purpose of the new rule; (2) the general reliance on the old rule; and (3) the effect on the administration of justice”.
Purposes which do not go to the ascertainment of guilt or innocence are not reasons to apply a law retroactively. The stated purposes for the rule in Fountain are "to provide fair notice to the accused and avoid an appearance of prosecutorial impropriety”. These purposes do not go to a determination of guilt or innocence.
It should be noted that neither of the purposes for the rule in Fountain were present in the present case. First, the defendant had notice; he was informed at his arraignment that a supplemental information would be filed charging him as an habitual offender if a conviction on the underlying felony was obtained. Second, this case does not give any appearance of prosecutorial impropriety. It does not present the possibility of a prosecutor seeking revenge against the defendant for exercising his right to appeal, as did Fountain where the supplemental information was filed only after the defendant had filed his claim of appeal. Nor does it present a situation where the prosecutor appears to have filed a supplemental information after conviction because of his dissatisfaction with the length of sentence imposed or with the return of a verdict of guilty on a lesser included offense rather than on the principal charge.
The second and third factors to be considered under the three-prong test for retroactivity can be dealt with together, since, as the Court noted in Hampton, supra, "the amount of past reliance will often have a profound effect upon the administration of justice”.
Before Fountain, there had been some indications of the rule that the Court eventually adopted. See, In re Brazel and People v Stratton. In Stratton, Justice Levin stated:
"[A]s we now read sections 10, 11, 12 and 13, they contemplate 2 separate situations and procedures to be followed when the prosecutor desires to make possible the meting out of an increased penalty pursuant to the habitual criminal sections of the code of criminal procedure. The procedure set forth in section 13 is to be followed whenever it appears to the prosecutor ‘after conviction’ of the current charge that the felon has a prior felony record. However, where it appears to the prosecutor before conviction of the current charge that the accused person is a prior felon, the accused person is to be informed against as a prior offender prior to conviction on the current charge; the procedure set forth in section 13 need not be followed.” ((Emphasis in original.)
The Supreme Court stated that it "approved” of these procedures in People v Hatt.
In People v Marshall, the Court held:
"Clearly, the prosecutor has discretion to file a supplemental information under the habitual criminal act after conviction, and is not limited to filing such supplemental information prior to conviction of a current charge, where he has knowledge of the previous conviction.”
The Court pointed out that the language in Brazel and Stratton was dictum and not controlling:
"It should be noted that the specific issue in both People v Stratton, supra, and In re Brazel, supra, was whether the prosecutor could bring a supplemental information charging the respective defendants therein, as subsequent offenders, prior to the conviction on the current charge in those cases. In each case, it was held that the prosecutor could file his supplemental information prior to or concurrent with the then pending charge. The specific question as to whether the prosecutor could file his supplemental information after the conviction on the then pending current charge, where the prosecutor had knowledge of the prior convictions, was not before the Court in either of those cases, nor was it decided by the Court. Thus, while the language in both Stratton and Brazel may be persuasive, it is certainly not controlling, where the specific question herein was not before the Court in those cases and was not decided by those respective Courts._
"Both Brazel and Stratton sepcifically held that the language of § 13 does not preclude the prosecutor from filing a supplemental information prior to defendant’s conviction on the current pending charge.
"The holding of Brazel and Stratton does not, however, make it mandatory on the part of the prosecutor to proceed against an accused as a subsequent offender prior to conviction, but is merely permissive in that it allows the prosecutor to so proceed.”
See also, People v Cairns and People v Moreland where the Court stated that the "better procedure” would be to file supplemental informations after conviction.
In People v Hendrick, the Court quoted Marshall with approval. It held that a prosecutor properly exercised his discretion in delaying until after sentencing the filing of a supplemental information charging the defendant with being an habitual criminal where he first became aware of defendant’s prior record when he received an FBI "rap sheet” and he delayed filing to check the accuracy of the record of out-of-state convictions.
In People v Laslo, the Court again held that a prosecutor who has knowledge of a defendant’s prior convictions is not required to file a supplemental information prior to trial on the most recent charge. This Court decidred Devine, supra, after the filing of the information on the initial charge in the present case, but before the filing of the supplemental information.
In light of the above line of cases, it cannot be said that Fountain clearly presents no new rule of law. Prosecutors could have relied on these cases in waiting until after defendants were convicted of underlying felonies before filing supplemental in-formations charging defendants as habitual offenders. Retroactive application of Fountain could adversely affect the administration of justice by requiring a substantial number of habitual offender convictions to be overturned, despite the absence of prejudice or prosecutorial misconduct. We decline to give Fountain retroactive application to vacate defendant’s habitual offender conviction.
Defendant next contends that he was improperly charged and convicted as a third felony offender where one of his prior convictions, that of unlawfully driving away an automobile, in violation of MCL 750.414; MSA 28.646, was designated a misdemeanor under the applicable penal code provision.
MCL 750.414; MSA 28.646 states:
"Use of motor vehicle without authority but without intent to steal — Any person who takes or uses without authority any motor vehicle without intent to steal the same, or who shall be a party to such unauthorized taking or using, shall upon conviction thereof be guilty of a misdemeanor, punishable by imprisonment in the state prison for not more than 2 years or by a fine or [of] not more than 1,000 dollars: Provided, That in case of first offense the court may in its discretion reduce the punishment to imprisonment in the county jail for a term of not more than 3 months or a fine of not more than 100 dollars: Provided further, That the provisions of this section shall be construed to apply to any person or persons employed by the owner of said motor vehicle or any one else, who, by the nature of his employment, shall have the charge of or the authority to drive said motor vehicle if said motor vehicle is driven or used without the owner’s knowledge or consent.”
"Felony”, as used in the code of criminal procedure of which the habitual offender provisions are a part, has been defined as follows since 1974:
"As used in this act:
"(g) 'Felony’ means an offense for which the offender, upon conviction, may be punished by death or by imprisonment for more than 1 year or an offense expressly designated by law to be a felony.”
At the time of defendant’s 1973 conviction of unlawfully driving away an automobile, the code of criminal procedure definition of "felony” read as follows:
"The term 'felony’ when used in this act, shall be construed to mean an offense for which the offender, on conviction may be punished by death, or by imprisonment in state prison.”
Defendant’s conviction of unlawfully driving away an automobile would constitute a "felony” for purposes of the code of criminal procedure under either of the above definitions.
In People v Rosecrants, this Court addressed the same issue presented here. The Court held that a felon convicted of resisting an officer may be prosecuted under the habitual offender statute despite the fact that the statute creating the offense of resisting an officer defines the offense as a misdemeanor, since the maximum potential term of imprisonment for resisting an officer is two years. The Court reasoned:
"The Legislature has expressed two intents as to the designated grade of defendant’s offense; under the penal code defendant’s activity is termed a misdemeanor, while under the later enacted code of criminal procedure it falls under the classification of a felony. The Legislature has the general power to designate both the grade and the punishment of criminal offenses. The habitual offender statute is an example of the Legislature’s intent to use this power to augment the permissible punishment for second and subsequent felony offenders rather than to make a separate substantive crime out of being an habitual offender.
"Although designating defendant’s offense as a felony under the code of criminal procedure eliminates most, if not all, of the effect the prior designation of the offense as a misdemeanor under the penal code, the Legislature has the inherent power to define crimes, their grades and allowable punishment. We must, if at all possible, uphold the legislative determination as expressed in the applicable statute.”
Rosecrants controls here.
Defendant’s final contention is that the trial court committed reversible error by refusing to grant a defense request for a bill of particulars. Defendant relies on the last sentence of MCL 767.44; MSA 28.984, which states:
"[T]he prosecuting attorney, if seasonably requested by the respondent, shall furnish a bill of particulars setting up specifically the nature of the offense charged.”
This sentence is a proviso to a section setting forth statutory short forms for informations. This proviso does not apply where, as here, the information is not one of the statutory forms. Instead, the standard of review is whether the trial court abused its discretion in finding that the defendant did not need a bill of particulars to inform him of the charge against him.
Where, as in the present case, there was a preliminary examination which adequately informed defendant of the charge against him, the need for a bill of particulars is obviated. We find no abuse of discretion.
Affirmed.
G. R. Deneweth, J., concurred.
407 Mich 96; 282 NW2d 168 (1979).
Id., 98-99.
Id., 99-100.
407 Mich 885 (1979).
87 Mich App 213; 274 NW2d 20 (1978).
People v Devine, 407 Mich 904; 284 NW2d 342 (1979).
407 Mich 913 (1979).
384 Mich 669, 674; 187 NW2d 404 (1971).
Id., 676-677.
Fountain, supra, 99.
Hampton, supra, 677.
293 Mich 632; 292 NW 664 (1940).
13 Mich App 350; 164 NW2d 555 (1968).
id., 356.
384 Mich 302, 309; 181 NW2d 912 (1970).
41 Mich App 66, 72-73; 199 NW2d 521 (1972).
Id., 71.
4 Mich App 633, 644; 145 NW2d 345 (1966).
12 Mich App 483, 493; 163 NW2d 257 (1968).
398 Mich 410; 247 NW2d 840 (1976).
78 Mich App 257; 259 NW2d 448 (1977).
1974 PA 63, § 1(g); MCL 761.1(g); MSA 28.843(g).
1927 PA 175, ch I; MCL 761.1;MSA 28.843.
88 Mich App 667; 278 NW2d 713 (1979).
Id., 669-671.
People v Tenerowicz, 266 Mich 276; 253 NW 296 (1934), People v Harbour, 76 Mich App 552; 257 NW2d 165 (1977).
People v Tenerowicz, supra, People v Harbour, supra.
People v Harbour, supra, People v Jones, 75 Mich App 261; 254 NW2d 863 (1977). | [
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After Remand
Before: Bashara, P.J., and N. J. Kaufman and J. L. Banks, JJ.
Per Curiam.
Plaintiffs appeal summary judgment granted in favor of defendant Marguerita Moore.
The complaint alleged that plaintiffs’ decedent was shot by defendant Thomas Curley, a Detroit police officer, while the decedent and Curley were located in Moore’s bar, the Postage Stamp Lounge. One count of the complaint alleged a cause of action against Moore pursuant to the dramshop act, MCL 436.22; MSA 18.993. Other counts, not at issue herein, alleged causes of action against Curley and against his employer, the City of Detroit.
Moore moved for summary judgment on the grounds that plaintiffs had failed to serve Curley with process, preventing recovery under the dram-shop act pursuant to the "name and retain” clause. The trial court granted the motion.
Plaintiffs’ appeal of the the dismissal was decided in Woodbeck v Curley, 85 Mich App 605; 272 NW2d 152 (1978). This Court remanded the matter to the trial court, holding:
"Therefore, we hold that when an individual has been injured by a third party in circumstances giving rise to a dramshop action, the 'name and retain’ provision need not be complied with if the plaintiff can show that he exercised due diligence in attempting to obtain service of process upon the alleged intoxicated person. Since the issue of due diligence was not ruled on below, this action must be remanded for further findings regarding that issue.” Id., 609-610. (Footnote omitted.) (Emphasis in original.)
Subsequently, a hearing was held on the issue of due diligence. Counsel for plaintiffs stated that no substituted service had been attempted. A private investigator had apparently been retained to find Curley, although his efforts were not described. A Grand Rapids address, where Curley had al-ledgedly been spending his weekends, was visited by Kent County Police with no results. Plaintiffs’ counsel’s business card was left at the residence but Curley did not contact him. No permanent place of abode had been found.
The trial court ruled that plaintiffs’ efforts to locate Curley evinced good faith but failed to rise to the level of due diligence. Summary judgment was granted in Moore’s favor and plaintiffs appeal.
The sole issue before us is whether the trial court erred in holding that due diligence was not shown. In support of this argument, plaintiffs contend that this Court’s decision in Woodbeck implied that the efforts of plaintiffs amounted to due diligence. We find this argument illogical in view of the Court’s holding remanding the issue of due diligence to the trial court. In addition, we find nothing in the language of the opinion that makes such a finding.
Alternatively, plaintiffs assert that the trial court abused its discretion in holding that the facts do not establish due diligence.
The Court in Woodbeck did not define the standard to be applied in determining whether or not due diligence has been shown. Woodbeck relies heavily upon Salas v Clements, 399 Mich 103; 247 NW2d 889 (1976), in which the Court held that where a plaintiff shows that he did not know the identity of the alleged intoxicated person and that he exercised due diligence in attempting to ascertain his identity, the name and retain provision will not operate as a bar to the cause of action. The Salas opinion also does not define "due diligence” and no cases applying the test in dramshop actions has been found. Furthermore, in both Salas and Woodbeck, the Courts made no determination of due diligence but remanded the issue for the trial court’s consideration.
Plaintiffs rely upon criminal law in asserting that they have met the burden of proof in this case. We agree with plaintiffs that due diligence, as defined in cases addressing the prosecutor’s failure to produce a res gestae witness, is the proper standard. Where the failure to produce a res gestae witness is an issue, due diligence is determined from the facts on a case-by-case basis. In his dissenting opinion in People v Pearson, 404 Mich 698, 742; 273 NW2d 856 (1979), Justice Levin stated that diligence "means literally what Webster’s dictionary says it means: devoted and painstaking application to accomplish an undertaking”. Also see People v Johnson, 51 Mich App 224, 230-231; 214 NW2d 713 (1974).
It is our considered judgment that the plaintiffs did not employ "devoted and painstaking application” to find Curley, based upon the record presented. There was no mention of the efforts of the private investigator. We do not know whether Curley’s family was contacted. We do not know whether the plaintiffs sought the assistance of the City of Detroit, Curley’s employer at the time of the shooting. The efforts described herein are certainly less than those held to be inadequate in Pearson, supra, 716-717. Consequently, we find no abuse of discretion in the trial court’s grant of summary judgment to Moore.
Affirmed. Costs to defendant Moore.
An order was subsequently entered allowing plaintiffs to amend the complaint against Moore by adding a claim of failure to maintain the lounge premises in a safe condition. | [
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Per Curiam.
In this case defendant appeals as of right from his conviction by a jury of receiving or concealing stolen property over the value of $100, MCL 750.535; MSA 28.803.
Eugene Woods, the owner of a 1977 Chevrolet pickup truck, testified that on March 8, 1978, at about 5:40 a.m., he parked the vehicle in his employer’s parking lot. Approximately ten minutes later, he was informed that the truck was gone. After his own investigation confirmed that fact, he reported the disappearance to the police.
About 3:30 p.m. that same day, Highland Park police officers Edwin Ostrand and Tyrone Foster drove to 154 West Buena Vista in Highland Park after receiving a radio report of "auto strippers in a garage” at that location. Officer Ostrand proceeded to the garage itself on foot and observed three men working on a Chevrolet pickup truck. One person was removing the front bumper while the other two leaned into the engine compartment from the sides of the vehicle. When Ostrand iden tified himself and ordered the subjects to freeze, they all ran. Officer Ostrand gave chase and radioed descriptions to other officers. An hour and a half later, Officer James Francisco observed defendant walk up to the Buena Vista address. Because defendant fit one of the radio descriptions, Francisco detained him until Officer Ostrand returned to the scene. Ostrand identified defendant as one of the persons seen stripping the truck. Eugene Woods verified that the truck was the same one reported missing earlier in the day.
Defendant initially argues that this identification procedure violated his constitutional right to counsel. He further contends that his defense attorney’s failure to object to Officer Ostrand’s identification testimony at trial evidences a denial of effective assistance of counsel.
Generally, once a suspect is in custody, there is a right to counsel during any corporeal identification procedure. People v Anderson, 389 Mich 155, 180-187; 205 NW2d 461 (1973), People v Jackson, 391 Mich 232, 337-340; 217 NW2d 22 (1974). An exception to this rule is that an on-the-scene identification necessary to determine whether a suspect should be formally arrested may take place without counsel. People v Dixon, 85 Mich App 271, 279-281; 271 NW2d 196 (1978), Russell v United States, 133 US App DC 77; 408 F2d 1280 (1969). Such identification is considered a reasonable police practice which helps expedite the release of innocent suspects. For this reason, the exception does not apply where the police clearly suspect that the person held committed the crime. Dixon, supra, 281.
The justification for an on-the-scene identification was met in this case. When defendant was detained, the police did not have more than a mere suspicion that he was involved with the crime. The description broadcast was a general one, indicating race, sex, height, and clothing of the suspect, and could have fit numerous persons within the area. The officers at the scene had good reason to call Officer Ostrand back to the location to observe defendant. Although the identification was not literally within minutes of the offense, it did occur relatively soon afterwards.
Further, the danger of misidentification was less in this case than in other on-the-scene situations. Generally, when a victim or civilian witness views a suspect at the scene, the suspect is handcuffed and surrounded by police. This may create a somewhat prejudicial atmosphere in that the suspect looks like an offender. Here, the identification was made by another police officer, who would be less prone to allow such circumstances to detract from his observation skills. We are convinced that the on-the-scene identification of defendant was proper despite the absence of counsel.
In any event, defendant was not prejudiced since it was certain that Officer Ostrand had a basis for his trial identification of defendant independent of the on-the-scene procedure. People v Kachar, 400 Mich 78; 252 NW2d 807 (1977). Those factors relevant to the existence of such an independent basis are:
"1. Prior relationship with or knowledge of the defendant.
"2. The opportunity to observe the offense. This includes such factors as length of time of the observation, lighting, noise or other factor affecting sensory perception and proximity to the alleged criminal act.
"3. Length of time between the offense and the disputed identification * * *.
"4. Accuracy or discrepancies in the pre-lineup or showup description and defendant’s actual description.
"5. Any previous proper identification or failure to identify the defendant.
"6. Any identification prior to lineup or showup of another person as defendant.
"7. Still another consideration, not mentioned in [United States v Wade, 388 US 218; 87 S Ct 1926; 18 L Ed 2d 1149 (1967)], but essential to a determination of judging the reliability of the witness’s perceptions is the nature of the alleged offense and the physical and psychological state of the victim. 'In critical situations perception will become distorted and any strong emotion (as opposed to mildly emotional experiences) will affect not only what and how much we perceive, but also will affect our memory of what occurred.’ 389 Mich 211. (Emphasis in original.)
"Factors such as fatigue, nervous exhaustion, alcohol and drugs’, 389 Mich 213 (emphasis in original), and age and intelligence of the witness are obviously relevant. Levine and Tapp, The Psychology of Criminal Identiñcation: The Gap from Wade to Kirby, 121 U Pa L Rev 1079, 1102-1103 (1973).
"8. Any idiosyncratic or special features of defendant.” Id., 95-96.
Here, while Officer Ostrand had no prior relationship with defendant, his opportunity to observe was sufficient. He stated that he viewed defendant for four or five seconds from a distance of from 15 to 20 feet before giving chase. It was daylight, and he was able to see defendant’s face. The on-the-scene identification took place within an hour and a half, and there was no evidence of dehabilitating factors such as fatigue, nervous exhaustion, alcohol, or drugs. Further, the officer, as a trained observer, was not likely to have been affected adversely by the stress inherent in the situation. Cf. United States v Butler, 405 F2d 395, 396 (CA 4, 1968). Finally, there was no evidence of a previous failure to identify defendant or the erroneous identification of another person.
Because the identification of defendant was proper, counsel’s failure to move for suppression was not a decisive error evincing ineffective representation. A defendant is entitled to a new trial if counsel did not perform "at least as well as a lawyer with ordinary training and skill in the criminal law” and did not conscientiously protect his client’s interests undeflected by conflicting considerations. People v Garcia, 398 Mich 250, 264; 247 NW2d 547 (1976). Further, defense counsel must not have made a serious mistake without which defendant would have had a reasonable likelihood of acquittal. Garcia, supra, 266, People v Degraffenreid, 19 Mich App 702, 718; 173 NW2d 317 (1969). Defense counsel’s failure to move for suppression reasonably cannot be seen as having denied defendant the likelihood of acquittal.
Defendant also argues that trial counsel was remiss in failing to object to testimony regarding the radio report received by Officers Ostrand and Foster. Officer Foster testified that the report was of "male subjects stripping a vehicle”. The content of an informant’s tip generally is inadmissible as hearsay. Admission is not justified for the purpose of showing an officer’s state of mind, since the state of mind is not relevant. Therefore, testimony of radio reports should be limited to a statement that the officer was responding to a tip. People v Wilkins, 408 Mich 69; 288 NW2d 583 (1980). In Wilkins, the testimony revealed an informant’s statement that pointed to the defendant’s guilt of carrying a concealed weapon:
"Q. Now, Officer Lutz, what did the informant tell you?
"A. I was informed at 8 o’clock p.m. that evening that a black male, late twenties, wearing a gray suit, would be in a gray Cadillac '75 sedan, license George Paul X-ray 233. He was supposed to be at 14009 Mendota, and that he’s carrying a gun, informant seen that gun with him earlier in the evening.” Id., 71-72.
The testimony in the instant case is readily distinguishable. The brief reference to "male subjects stripping a. vehicle” did not point directly to defendant’s guilt. Since Officer Ostrand testified regarding his own observations of the three men, little prejudice is apparent. While an objection may have limited the testimony to the fact that a tip was received, such a limitation hardly would have afforded defendant a reasonably likely chance of acquittal. Defendant was not denied effective assistance of counsel.
Defendant also argues that the trial court erred in denying his motion for a directed verdict. At the close of the prosecution’s case, defense counsel argued that there was no proof that defendant was aware that the truck was stolen. People v Tanten-ella, 212 Mich 614, 619; 180 NW 474 (1920). The standard for ruling on a motion for directed verdict was set forth in People v Hampton, 407 Mich 354, 368; 285 NW2d 284 (1979).
"In summary, the trial judge when ruling on a mo tion for a directed verdict of acquittal must consider the evidence presented by the prosecution up to the time the motion is made [People v Garcia, 398 Mich 250; 247 NW2d 547 (1976)], People v Vail, 393 Mich 460, 463; 227 NW2d 535 (1975), and determine whether a rational trier of fact could have found that the essential elements of the crime were proven beyond a reasonable doubt, Jackson, supra, p 319.”
Guilty knowledge need not be proven directly but may be inferred from other facts and circumstances. Tantenella, supra. At the time of defendant’s motion, the prosecutor had presented evidence that the truck was stolen on the day of the offense charged. Defendant and the others were observed dismantling the vehicle, as opposed to repairing it. The door locks were jammed, and the ignition system was broken. Finally, when Officer Ostrand identified himself, defendant fled. From these facts a rational trier of fact could have inferred beyond a reasonable doubt that defendant knew that the truck was stolen.
Defendant’s final argument on appeal is that the trial court erred by omitting portions of the standard jury instructions relating to reasonable doubt, the presumption of innocence, and the prosecution’s burden of proof. Although the record reveals that certain portions of the instructions dealing with those concepts were inadvertently omitted, prejudicial error did not occur. Jury instructions must be read as a whole and not extracted piecemeal in an effort to establish error requiring reversal. People v Choate, 88 Mich App 40, 45; 276 NW2d 862 (1979). The concepts of reasonable doubt, the presumption of innocence, and the burden of proof were related to the jury by a reading of CJI 3:1:02, 3:1:03(2), and 3:1:05. Defendant’s claim of instructional error is therefore without merit.
Affirmed.
"Q. Did you have occasion to go to the area of 154 West Buena Vista?
"A. We did, sir.
"Q. And is that in the City of Highland Park?
"A. Yes, sir.
"Q. Were you in uniform and a marked scout car?
'A. I was in uniform and a marked scout car.
"Q. What, if anything, did you do after you got there?
'A. We received a run on male subjects stripping a vehicle at that location. We pulled up in front of 151 Tyler, I let my partner out, he went between the houses at 151 Tyler, going southbound to the northwest Buena Vista alley.” | [
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N. J. Kaufman, J.
Defendant appeals his convictions from two separate jury trials. In the first, docket no. 49087, defendant was convicted of armed robbery, MCL 750.529; MSA 28.797, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). In the second case, docket no. 49088, defendant was once again convicted of armed robbery, MCL 750.529; MSA 28.797, and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2). In each case, defendant was sentenced to from 3 to 25 years on the robbery conviction and to two years on the felony-firearm conviction, the sentences to run concurrently. In case no. 49087, defendant was tried for an armed robbery committed on July 12, 1979. In case no. 49088, defendant was charged, with codefendant Dion Smith, with committing an armed robbery on July 15, 1979.
Defendant first contends that his convictions in case no. 49088 must be reversed due to an unduly suggestive lineup identification. We disagree.
Appellate courts in this jurisdiction have previously held that the failure to object to testimony concerning an allegedly suggestive pretrial identification precludes consideration of this issue on appeal. People v Moss, 397 Mich 69; 243 NW2d 254 (1976), People v Coles, 79 Mich App 255; 261 NW2d 280 (1977). A review of the record indicates that defendant’s counsel failed to move in the trial court to exclude evidence of the allegedly improper pretrial identification. Rather, defense counsel tactically used the complainant’s arguably tenuous lineup identification in an attempt to discredit his more positive in-court identification.
This Court is loathe to substitute its judgment for that of trial counsel in matters of trial strategy. People v Penn, 70 Mich App 638, 648; 247 NW2d 575 (1976). Therefore, we conclude that the admission of evidence of the lineup identification in case no. 49088 did not constitute reversible error.
Defendant next contends that his convictions in case no. 49088 must be reversed due to the erroneous admission of similar-acts testimony. Again, we do not agree.
In defendant’s trial in case no. 49088, the complainant in case no. 49087 testified as to the prior armed robbery perpetrated by the defendant. As a general rule, evidence of similar, but unrelated, criminal activity is not admissible to show that a criminal defendant acted in conformity with an alleged bad character. People v Oliphant, 399 Mich 472; 250 NW2d 443 (1976), People v DerMartzex, 390 Mich 410; 213 NW2d 97 (1973). It has been said that the purpose behind the rule is that the likelihood of prejudice from the admission of this sort of evidence outweighs any probative value the evidence may have. See People v Flynn, 93 Mich App 713; 287 NW2d 329 (1979), lv den 409 Mich 852 (1980). However, exceptions to this general rule are found in a statute, MCL 768.27; MSA 28.1050, and in the Michigan Rules of Evidence, MRE 404(b). In the instant case, we conclude that evidence concerning the prior, similar robbery was properly admitted pursuant to MCL 768.27; MSA 28.1050 and MRE 404(b).
The primary defense asserted by defendant was misidentification. As such, the prior, similar act was probative of one of the purposes delineated in the statute and rule. See People v Gilbert, 101 Mich App 459; 300 NW2d 604 (1980). Additionally, there was substantial evidence to show that defendant committed the bad act. Complainant in case no. 49087 made a positive identification, stating that defendant was the man who had committed the armed robbery in question. Furthermore, there were several distinguishing, peculiar or special characteristics which made the prior robbery similar to the charged crime. Both were committed in the same Ford Motor Company parking lot and were committed at approximately the same time of day. Both robberies were perpetrated by two men with sawed-off shotguns. In short, the commission of the prior robbery bore defendant’s "signature” and was probative of the defendant’s identity when his identity was in issue, and there was no indication that the probative value of the similar-acts testimony was outweighed by its prejudicial effect. See People v Major, 407 Mich 394; 285 NW2d 660 (1979). As such, testimony concerning the prior robbery was properly admitted, and defendant’s conviction in case no. 49088 is also affirmed.
Defendant’s final allegation of error, relating to case no. 49087, is that error requiring reversal occurred when the police and the prosecutor made reference to a series of prior robberies in the same area as that where robberies were allegedly committed by defendant. None of these references were objected to during trial. Because we perceive no resulting, manifest injustice, we decline to consider the matter on appeal. People v Farnsley, 94 Mich App 34, 35; 287 NW2d 361 (1979).
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Per Curiam.
Defendant was charged with criminal sexual conduct in the third degree, MCL 750.520d; MSA 28.788(4). Prior to trial, the trial court heard arguments on the prosecution’s request to admit evidence of a prior similar act. The court heard the testimony of one Ms. Beard concerning the alleged prior similar act of rape by defendant and granted the motion. Defendant waived his right to a jury trial. Defendant was found guilty as charged and was sentenced to 1 to 15 years, the time to be served in a halfway house. Defendant’s motion for a new trial was denied.
The sole issue on appeal is whether the testimony concerning the prior similar act was properly admitted.
The general rule in Michigan is that evidence of a defendant’s other bad acts is not admissible because the prejudicial effect outweighs the probative value. People v Oliphant, 399 Mich 472; 250 NW2d 443 (1976), People v DerMartzex, 390 Mich 410; 213 NW2d 97 (1973). An exception to this rule is provided by statute:
"In any criminal case where the defendant’s motive, intent, the absence of, mistake or accident on his part, or the defendant’s scheme, plan or system in doing an act, is material, any like acts or other acts of the defendant which may tend to show his motive, intent, the absence of, mistake or accident on his part, or the defendant’s scheme, plan or system in doing the act, in question, may be proved, whether they are contemporaneous with or prior or subsequent thereto; notwithstanding that such proof may show or tend to show the commission of another or prior or subsequent crime by the defendant.” MCL 768.27; MSA 28.1050.
See also MRE 404(b).
The prosecutor claims the evidence of a similar act was properly admissible to show common plan or scheme. However, as a threshold requirement, it must first be shown that such a plan or scheme is material. People v Major, 407 Mich 394, 399; 285 NW2d 660 (1979). To be material, a purpose provided for in the statute, in this case common plan, must be in issue. A mere general denial by the defendant is insufficient to place the matter in issue. People v Arenda, 97 Mich App 678, 682; 296 NW2d 143 (1980). Here, defendant has not claimed mistake or accident or that the act was unintended, which would have brought the matter of common plan into issue. Defendant simply claims that the alleged rape did not occur. Therefore, this Court fails to see how alleged prior sexual misbehavior is material to whether the charged rape occurred. To allow this testimony would be only for the purpose of proving that if defendant did it before he must have done it this time.
Besides materiality, the Court in Major set out a second level for admissibility of similar acts:
"The evidential process by which similar acts evidence is properly introduced involves direct proof of three propositions from which a fourth is inferable and thus proved circumstantially. They are:
"D that the manner in which the criminal act in question or some significant aspect of it was performed bore certain distinguishing, peculiar or special characteristics;
"2) that certain specific similar acts, performed contemporaneously with or prior to or subsequently to the act in question, bore the same distinguishing, peculiar or special characteristics;
"3) that the similar acts were performed by the defendant; and
• "4) that, accordingly, the crime in question was committed by the defendant.
"It is the distinguishing characteristics which constitute the acts as similar within the meaning of MCL 768.27 and MRE 404(b), not the fact that all constitute the same crime or are violative of the same statute. The distinguishing, peculiar or special characteristics which are common to the acts and thus personalize them are said to be the defendant’s 'signature’ which identifies him as the perpetrator, or, if his identity is not contested, negates the suggestion that his behavior in performing the challenged act was unintended, accidental, a mistake, or otherwise innocent.” Id., 398-399. (Footnotes omitted.)
Addressing factor one, it must be determined whether the characteristics of the criminal acts are so distinguishing, peculiar or special as to become defendant’s signature. In People v Bolden, 98 Mich App 452; 296 NW2d 613 (1980), lv den 410 Mich 855 (1980), this Court addressed the question of similar acts, as that issue was likely to resurface at defendant’s new trial. This Court held that the following testimony bore the same special characteristics necessary to identify defendant as the perpetrator:
"A comparison of the similar acts evidence proffered here and the evidence of the complainant, Ms. Watson, reveals striking similarity. Both victims were older women who were assaulted in their own homes in the afternoon. In each case the assailant entered the home while the victim was outside. In each case, the assailant put his hand over thé woman’s mouth and threatened to kill her if she did not cooperate. Both women were taken forcibly into the bedroom, raped, and tied in the identical manner to the bedpost. The assailant searched both homes for money and jewelry.” Id., 459.
In another criminal sexual conduct case, People v Baker, 103 Mich App 704; 304 NW2d 262 (1981), the similar acts evidence qualified for admission as being probative of identity which was material because of an alibi defense. This Court found the acts sufficiently similar based on the following testimony:
"Three witnesses testified. The first was a maid at the Holiday Inn in Ann Arbor. She testified that while alone in the hotel cleaning a room, defendant entered the room, grabbed her around the neck, threatened her, and then made her have sexual intercourse with him. Afterwards, defendant fled. The second witness was a guest at the Ann Arbor Campus Inn. She testified that while alone in the hotel, in the women’s sauna, defen dant entered the room with a knife, threatened her, and then made her have sexual intercourse with him. Afterwards, defendant fled. The third witness was a maid at the Troy Hilton Inn. She testified that while alone in the hotel cleaning a room, defendant entered the room, grabbed her around the neck, threatened her, and attempted to have sexual intercourse with her. The witness’s struggling prevented defendant from achieving penile penetration. Afterward, defendant fled.” Id., 710.
In the instant case, defendant claims that he did not rape the complainant. Earlier on the day of the alleged rape, the complainant had come to the office of defendant, who was the Director of Human Relations for the City of Highland Park. According to the complainant, Ms. Brown, defendant called her at home later in the day and asked to come by and do some paperwork. He arrived about 6 p.m. and spent about three hours asking her questions and writing down answers. She then stated that defendant began drinking heavily but that she did not drink. When she resisted his attempt to kiss her, defendant hit her with his fist and she fell to the floor. Defendant then went downstairs to answer the door for a man delivering a pizza. During defendant’s absence, Ms. Brown took a variety of pills, including Valium. When defendant returned and saw the pill bottles, he hit Ms. Brown again and she fell to the floor. He then ripped her pants off and proceeded to force sexual intercourse upon her.
The testimony of Marcia Beard was admitted as similar acts to show a common scheme. Ms. Beard and defendant worked together and initially had been competing for the position of Director of Human Relations, which was ultimately awarded to defendant. On the night of the alleged incident in May of 1976, defendant was expected at Ms. Beard’s house at about 6 p.m. to pick her up to drive to Lansing. The trip was prearranged, combining business and pleasure. Defendant eventually arrived at Ms. Beard’s home at about 11 p.m.; he had been drinking. He fell asleep in a chair and Ms. Beard was unable to arouse him. She then went upstairs, took off her slacks and shoes and went to bed. Sometime later she was awakened when defendant entered her bedroom. When she attempted to get off the bed, he pushed her back on the bed, grabbed her by the hair and proceeded to force intercourse upon her. She never filed a complaint with the police but took her allegations to the Mayor. Defendant admitted that he did have sexual intercourse with Ms. Beard but contended that it had been at her initiation and with her consent.
The prosecutor claims that defendant’s common scheme was to use his position as Director of the Human Relations Department to find women who were vulnerable. He would then go to their homes on the pretext of official business and then force them to have intercourse with him. The pivotal factor in his plan was to use his job to select a vulnerable target so that he bore very little risk of prosecution.
This Court fails to see a pattern of peculiar or special characteristics here. Ms. Beard could hardly be considered vulnerable. She was an educated woman and a coworker of defendant, with whom she had socialized on several occasions. The complainant was described by the trial court as "immature, unstable, a person perhaps filled with anxiety, problems, an individual who apparently desperately needed help”. Although both alleged rapes took place in the victims’ homes after defendant allegedly had been drinking, there do not appear to be any really peculiar aspects to the way defendant allegedly committed the act, as there were in Bolden and Baker.
The trial court’s reliance on Oliphant was misplaced. In Oliphant, the defense was consent. The testimony of three previous similar acts was material to show a common scheme to make it appear that the victim consented. The Court stated:
"Certainly, the fact that an individual commits a rape at one time has no bearing on whether another woman consented to intercourse at a later time. * * * Here, however, the people did not offer the prior acts to prove prior rapes, or that the defendant is a bad man with criminal propensities. The people offered the prior acts to show the scheme, plan or system employed by the defendant in raping the complainant in a manner and under circumstances which gave the appearance of consent should he meet with resistance.” Oliphant, supra, 491. (Citation omitted.) (Emphasis in original.)
In the instant case, the evidence of prior similar acts was not admitted to prove defendant’s identity or to negate the suggestion that his behavior in performing the challenged act was unintended, accidental, a mistake, or otherwise innocent. This Court concludes that, as in Major, this evidence "simply tends to show that the defendant had misbehaved sexually in the past. Since the evidence failed to pass muster both as to relevancy and materiality, it was admitted in error”. Major, 400-401.
The prosecutor contends that any possible undue prejudice to defendant was fully neutralized by the fact that this was a bench trial. Major was also a bench trial but the Court did not find the error in that case harmless. There, as here, the case essentially turned on credibility. The trial court’s opinion in the case at bar indicates that it did rely on Ms. Beard’s testimony. Therefore, this Court cannot conclude that the error of allowing the testimony on prior similar acts was harmless.
In summary, the proffered evidence of prior similar acts has failed to surmount both of the hurdles for admissibility set forth in Major. First, similar acts to prove a common scheme are not material to the issues raised. Defendant has not claimed mistake, accident, consent or any such defense which evidence of a common scheme would tend to negate. Defendant merely claims that the alleged rape did not occur. Therefore, prior sexual misbehavior is not material to the issue involved. Secondly, even if evidence of a common scheme was material, there was nothing in Ms. Beard’s testimony of the alleged rape by defendant that establishes peculiar or distinctive characteristics that rise to the level of being "defendant’s signature”. Therefore, the evidence would not pass the relevancy test in Major.
Reversed and remanded for a new trial where the testimony of prior similar acts is not to be admitted. | [
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V. J. Brennan, J.
Defendant appeals as of right from a trial court judgment finding it liable for breach of an employment contract in the amount of $4,484.70. Plaintiff has filed a cross appeal.
Negotiations concerning the terms of the employment contract were commenced in December, 1976, while plaintiff was employed by Podiatry Services, Inc. Prior to that time, Dr. Kenneth R. Lawrence was president of Podiatry Services and had hired plaintiff after he successfully completed his preceptership training. In November, 1976, Dr. Lawrence left Podiatry Services and formed defendant corporation. Terms were agreed to and on January 29, 1977, the parties executed an 18-month employment contract. The terms recited that plaintiff was to receive a yearly salary of $25,012 "plus such bonuses as shall be approved by the Board of Directors from time to time provided that if any such bonuses are approved, EMPLOYEE’S bonus shall be equal to twenty-five percent (25%) of the total bonus so declared for all employees”. Additionally, paragraph 2 of the contract provided that either party could terminate the contract at will upon 60 days’ written notice.
The employment relationship broke down within a few months and on June 27, 1977, plaintiff was terminated, effective immediately. Plaintiff recov ered damages for 60 days’ salary, automobile rental and health insurance for his wrongful discharge.
Defendant has raised two issues on appeal and plaintiff has raised another issue on cross appeal. Defendant first questions whether the trial court correctly found that defendant failed to carry its burden of proof regarding plaintiff’s duty to mitigate damages.
It is well established that a plaintiff must make every reasonable effort to mitigate damages. Edgecomb v Traverse City School Dist, 341 Mich 106, 115; 67 NW2d 87 (1954), Rich v Daily Creamery Co, 296 Mich 270, 282; 296 NW 253 (1941). Such a defense, however, is an affirmative one, and proof of plaintiff’s failure to mitigate rests upon the defendant. Fothergill v McKay Press, 374 Mich 138; 132 NW2d 144 (1965), Froling v Bischoff, 73 Mich App 496, 499; 252 NW2d 832 (1977). A wrongfully discharged employee is obligated to mitigate damages by accepting employment of a "like nature”. Flickema v Henry Kracker Co, 252 Mich 406; 233 NW 362 (1930), Michigan Employment Relations Comm v Kleen-O-Rama, 60 Mich App 61; 230 NW2d 308 (1975). The criteria for determining "like nature” include the type of work, the hours of labor, the wages, tenure, working conditions, etc. Whether or not an employee is reasonable in not seeking or accepting particular employment is a question for the trier of fact. 2 Restatement Agency, 2d, § 455, comment d, p 373; Restatement Contracts, § 336, p 537; 11 Williston, Contracts (3d ed), § 1359, p 306.
In the instant case, the trial court made the following pertinent findings of fact: that the evidence gave no indication that if plaintiff sought employment he would have obtained it within the 60-day period; that the contract limited plaintiff to seeking employment in an area outside of a ten-mile radius; that podiatry is a profession rather than a job; and that plaintiff required at least 60 days to find proper employment. Hence, the trial court concluded that the burden of proof on mitigation of damages had not been met by defendant.
An appellate court will set aside the findings of fact of a trial court sitting without a jury only when such findings are clearly erroneous. A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with a definite and firm conviction that a mistake has been committed. Smith v Michigan State Accident Fund, 403 Mich 201; 267 NW2d 909 (1978). In making this determination, regard should be given to the special opportunity of the trial court to judge the credibility of those witnesses who appear before it. Ford v Howard, 59 Mich App 548; 229 NW2d 841 (1975). Tuttle v Dep’t of State Highways, 397 Mich 44, 46; 243 NW2d 244 (1976), Bergy Brothers, Inc v Zee-land Feeder Pig, Inc, 96 Mich App 111, 114; 292 NW2d 493 (1980), GCR 1963, 517.1.
Our review of the record discloses that the trial court’s findings are not "clearly erroneous”. The reasonableness of plaintiffs decision as to whom and where he could best form a professional association was a determination to be made by the trier of fact. We are not left with a firm and definite conviction that he erred.
Defendant next questions whether the trial judge correctly found that plaintiff did not have to reimburse defendant for hospital assessments paid by defendant pursuant to the employment contract.
At issue is the following provision:
"Upon the occasion of the EMPLOYEE terminating his employment with the CORPORATION either voluntarily or involuntarily, said EMPLOYEE shall reimburse the CORPORATION for any hospital assessments that have been advanced on his behalf.”
At trial, testimony was adduced which established that defendant had made monthly payments of $55 for hospital assessments beginning with plaintiffs commencement of employment in January and continuing through June for a total of $330. Defendant wanted complete reimbursement, claiming the above provision should be interpreted by "standards of the industry” rather than the plain language of "advanced” as being a future outlay. It is well settled in the law of contracts that language will be construed against the party drafting the instrument. Bruno v Detroit Institute of Technology, 51 Mich App 593; 215 NW2d 745 (1974), Washtenaw Asphalt Co v Michigan, 42 Mich App 132; 201 NW2d 277 (1972). Hence, we are in accord with the trial court’s conclusion that since defendant drafted the contract, it must be construed against him.
Similarly, since the contract was silent as to reimbursement of paid associational and hospital dues, that claim is also without merit.
Finally, plaintiff questions whether the trial court properly denied plaintiffs claim that he was fraudulently induced to execute the employment contract because of certain representations made concerning the payment of bonuses. We think the trial court was correct.
The elements constituting actionable fraud or misrepresentation are well settled. In Candler v Heigho, 208 Mich 115, 121; 175 NW 141 (1919), the Supreme Court set forth those elements:
"The general rule is that to constitute actionable fraud it must appear: (1) That defendant made a material representation; (2) that it was false; (3) that when he made it he knew that it was false, or made it recklessly, without any knowlédge of its truth and as a positive assertion; (4) that he made it with the intention that it should be acted upon by plaintiff; (5) that plaintiff acted in reliance upon it; and (6) that he thereby suffered injury. Each of these facts must be proved with a reasonable degree of certainty, and all of them must be found to exist; the absence of any one of them is fatal to a recovery.”
See also A & A Asphalt Paving Co v Pontiac Speedway, Inc, 363 Mich 634, 639; 110 NW2d 601 (1961), Marshall v Ullmann, 335 Mich 66, 73-74; 55 NW2d 731 (1952), Waldbauer v Hoosier Casualty Co, 285 Mich 405, 408-409; 280 NW 807 (1938). The burden of proof rests with plaintiff. Fraud will not be presumed but must be proven by clear, satisfactory and convincing evidence. Youngs v Tuttle Hill Corp, 373 Mich 145, 147; 128 NW2d 472 (1964).
The initial consideration, then, is whether defendant made a material representation to plaintiff. In Boston Piano & Music Co v Pontiac Clothing Co, 199 Mich 141; 165 NW 856 (1917), the Supreme Court affirmed the rule that an action for fraudulent misrepresentation must be predicated upon a statement relating to a past or an existing fact. Future promises are contractual and do not constitute fraud. See, for example, Hi-Way Motor Co v International Harvester Co, 398 Mich 330, 336; 247 NW2d 813 (1976).
A reading of the testimony most favorable to plaintiff suggests the conclusion that Dr. Lawrence gave the impression that plaintiff would receive a salary of $25,000 plus bonuses paid at least every six months, after the corporation’s profits were reviewed every two or three months. However, under Boston Piano, supra, the fact that this apparent promise was broken did not constitute fraud, nor was it evidence of fraud. The failure by defendant to make good its assurance that bonuses would be paid every six months was merely a breach of contract, which must be enforced by an action on the contract, if at all. Boston Piano, supra, 147.
Plaintiff further contends that even if the representations are found to be promises of future action, they nevertheless fall within the "bad faith” exception to the general rule that such promises are not actionable torts. Plaintiff’s contention is based on Crowley v Langdon, 127 Mich 51, 58-59; 86 NW 391 (1901), where the Court held that a fraudulent misrepresentation may be based upon a promise made in bad faith without intention of performance. However, there was no evidence presented from which it could reasonably be inferred that such a promise was made without intention of performance and as a fraudulent misrepresentation. In Leib v Bostwick, 256 Mich 277, 280; 239 NW 405 (1931), the Supreme Court stated:
"The fraud claimed by the plaintiff is, that when the defendant made these promises to pay, he did not intend to keep them and concealed his intention from the vendors. The defendant denies that he made any such promises, but, assuming that he did, there is no evidence they were accompanied by a fraudulent intent. The nonperformance of a promise is not fraud nor is it any evidence of fraud.”
The evidence in the case sub judice mandates a finding that the defendant did not act in bad faith. Accordingly, the trial court’s finding that plaintiff did not satisfy his burden of proof by clear, satisfactory and convincing evidence was correct and sufficient to satisfy the requirement of GCR 1963, 517.1.
Affirmed. | [
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Mackenzie, J.
Plaintiffs sued for breach of a real estate contract dated September 2, 1975, pursuant to which defendant’s decedent, Neil Tuori (hereinafter "defendant”), agreed to purchase a parcel of real property in Acme Township, Grand Traverse County, Michigan, at a price of $199,379.58, but subsequently refused to perform. Plaintiffs retained possession of the land until March of 1976, when they resold it for $150,000. Damages of $65,230.20 were sought, including: (1) $49,379.58, representing the difference between the contract price and resale price; (2) $15,000, representing a real estate commission paid on resale due to defendant’s breach of the initial agreement; and (3) taxes of $315 on the property between the date of the alleged breach of contract and ultimate resale.
Following a bench trial, the circuit judge made the following findings relevant to the questions raised on appeal:
"(1) Defendant breached the contract sometime between September 15, 1975, and October 2, 1975;
"(2) The measure of damages is the difference between the contract price and market value of the land as of the date of breach, In re Day Estate, 70 Mich App 242; 245 NW2d 582 (1976), McColl v Wardowski, 280 Mich 374; 273 NW 736 (1937);
"(3) There was evidence of a prior offer of $180,000 which was rejected by plaintiffs and a subsequent offer of an option to purchase for $225,000 which fell through, evidence that plaintiffs thought that the property was worth $250,000 at the time of contracting, and evidence that plaintiffs were under extreme financial' pressure to sell;
"(4) Notwithstanding, 'There is no testimony that the Court recalls by the plaintiff or any other party as to the value of this property during the period of the breach between September 15 and October 2. The Court is therefore only left with the subsequent sale price of $150,000. In considering In re Day Estate, supra, as to the measure of damages, the Court cannot find any evidence offered by the plaintiff as to the value of the property as of the date of the breach. The Court would have to speculate as to the value without sufficient testimony or evidence to support the Court’s determination. Therefore, it is the opinion of the Court that the plaintiffs have failed to prove the market value of the real estate which was the subject of the agreement, as of the time of the breach, and therefore the Court cannot determine the damages with respect to the breach of contract * * *’; and
"(5) Taxes paid between the date of breach and date of resale in the amount of $315 plus interest on the Eaton-McNeal land contract in the amount of $535.68 for roughly the same time period were determined to be consequential damages and awarded to plaintiffs (plus costs).”
The first issue is whether the trial judge erred in determining that there was no evidence of the market value of the property at the time of breach except for the evidence of the resale price five months later which, standing alone, he considered insufficient to allow him to make a reasonable determination of damages.
The trial judge correctly held that where a deed has not yet been tendered the vendor’s damages for breach of a purchaser’s promise to pay are measured according to the difference between the contract price and the market value of the land at the time of the breach. Stewart v McLaughlin’s Estate, 126 Mich 1, 7; 85 NW 266 (1901), McColl, supra, 376. In re Day Estate, supra, 246-247. A plaintiff has the burden of establishing proof of the market value, and a directed verdict in favor of the purchaser is proper if no evidence establishing market price is introduced. McColl, supra, 376.
However, where there clearly has been a breach of contract and certain evidence establishing damages has been introduced, although far-ranging, it is the duty of the fact finder to weigh the evidence and, if at all possible, make a reasonable determination of damages.
According to the evidence, the parties entered into a contract on Séptember 2, 1975, whereby defendant agreed to pay $199,379.58 for the parcel of property. Plaintiff Cecil W. McNeal testified that up until the contract date, the property had been listed with Zimmerman & McDonnell, a real estate firm in Traverse City, for $200,000. Prior to September 2, 1975, an offer of $180,000 had been rejected by plaintiffs. Cecil W. McNeal testified that in the fall and winter following the breach, plaintiffs received an offer of a six-month option to purchase for $225,000 which was not accepted due to the necessity of accomplishing a quick sale. Thus, in February of 1976, the property was sold to HABCO, an investment copartnership, for $150,-000. That was the only other offer plaintiffs received. Cecil W. McNeal testified that he thought the property was worth between $200,000 and $250,000 in October of 1975, and that, in his opinion, the market price was appreciating.
Evidence was also admitted tending to show that plaintiffs were under extreme pressure to sell the property quickly and required most of the consideration in cash because they needed money to prevent foreclosure of their hotel and restaurant. No evidence was introduced by either side tending to show a decline in property values. The deposition of realtor Peter Hoppin of Zimmerman & McDonnell indicated that when the property was relisted the economy was not stable and interested buyers were having a difficult time raising the amount of cash required to purchase the property. Hoppin also stated that the listing price of $180,-000 was very close to what plaintiffs would have gotten' on the market in February, 1976. Hoppin testified that there was not a large turnover of pieces of property of this size and that it often took time.-to sell such a parcel. Hoppin, who was also a partner in HABCO, testified that in May of 1976, HABCO received an offer of $215,000 on the property, the financing of which fell through. Hop-pin testified that he estimated that the property was worth $215,000 in May of 1976.
Testimony regarding offers to purchase the property and amounts for which the property was listed during the period of several months before and several months after .the breach, plaintiff’s testimony of his belief as to the worth of the property, and the realtor’s testimony of his assessment of the property’s worth were all some evidence of the market value of the property. The absence of a specific statement of the property’s worth during the precise two-week period in which the breach occurred did not preclude the trial judge from considering the foregoing evidence. A plaintiff is not required to pinpoint the market value at the exact moment of the breach. Here, such a requirement would be impossible since the moment of breach was determined by the fact finder subsequent to the actual trial.
Where there is some evidence of the market value of the property around the time of the breach, the fact finder should weigh all the evidence in an effort to make a reasonable determination of market value and, hence, damages. In weighing such evidence, the proximity of a particular offer, listing, or opinion of market value to the time of the breach is a factor to be weighed. The source of the evidence is also to be considered in assessing its weight.
Evidence of resale price may be considered as some evidence of market value. Royer v Carter, 37 Cal 2d 544; 233 P2d 539 (1951), In re Day Estate, supra. Unless resale occurred in proximity to the actual breach, the trial court must consider possible market changes due to intervening economic conditions. In re Day Estate, supra. Further, where evidence of resale price is the only evidence of market value, the plaintiff has the burden of establishing that resale occurred within a reasonable time, at the highest price obtainable, under terms as favorable as the original contract, and that there has not been a decline in market value. Royer, supra. We cannot say that the trial judge abused his discretion in holding that plaintiffs did not establish that they sold the property for the highest price obtainable and that there were no intervening economic conditions affecting market value in the five-month interim.
However, in the case at bar, there was evidence of market value in addition to the resale price. From a reading of the trial judge’s opinion, we cannot ascertain whether he considered all the evidence or felt that he was precluded from doing so because there was no specific evidence of mar ket value during the two-week period of the breach. The case must, therefore, be remanded for reconsideration and specific findings of fact in light of this opinion. Like the court in Rogers v Lion Transfer & Storage Co, 120 US App DC 186, 187; 345 F2d 80 (1965), we intimate no view regarding the conclusion to be drawn by the circuit court after weighing all the evidence, that is, the trial judge must still determine which, if any, evidence is credible in establishing market value, whether the market value of the property at the time of breach exceeded, equalled, or fell short of the contract price.
Plaintiffs next contend that, even if the court determines that the market price at the time of breach exceeded the contract price, plaintiffs are, nonetheless, entitled to recover the difference between market value and resale price as "consequential damages”. Plaintiffs argue that defendant, as their accountant, entered into the contract with the knowledge that plaintiffs were in dire financial straits and had to sell the property as soon as possible to raise cash. Thus, argue plaintiffs, it was reasonably foreseeable that defendant’s breach would force plaintiffs to sell the property as quickly as possible and hence, suffer a loss by not being able to wait for the best offer.
We find plaintiffs’ claimed losses are neither direct nor consequential damages of the breach. Initially, we note that in plaintiffs’ complaint plaintiffs averred that they were directly damaged by defendant’s breach in the amount of $49,379.58, the difference between the contract price and the resale price. Plaintiffs did not allege that this amount represented special damages suffered as an indirect consequence of defendant’s breach. We have already held that, absent proof that resale price was substantially equal to market value at the time of breach, direct damages for the difference between resale price and contract price are not recoverable. Thus, it seems that plaintiffs are attempting to recoup the difference between the contract price and resale price merely by labelling the sum "consequential damages”.
In 22 Am Jur 2d, Damages, § 56, p 88, the authors state that the English case, Hadley v Baxendale, decided in 1854, sets forth two rules regarding recovery of direct and consequential damages for breach of contract:
"(1) [W]here there are no special circumstances to distinguish the contract involved from the great mass of contracts of the same kind, the damages recoverable are such as would naturally and generally result from the breach according to the usual course of things, and (2) where there are special circumstances in the contract, damages which result in consequence of those special circumstances are recoverable if, and only if, those special circumstances were communicated to or known by both parties to the contract at the time they entered into the contract. The second rule as above stated is sufficient to cover all cases of breach of contract, for it must be presumed that the parties would have contemplated that the party injured by the breach of the contract would sustain such damages as would fairly and substantially, in the usual course of things, result from such breach.” (Footnotes omitted.)
In Clark v Ferro Corp, 237 F Supp 230, 239 (ED Tenn, 1964), the court further explained the term:
"The term 'consequential damages’ has been defined as follows in 25 CJS, Damages, § 2.
" 'Consequential damages. Consequential damages are such as are not produced without the concurrence of some other event attributable to the same origin or cause. The term may include damage which is so remote as not to be actionable. It has also been defined as synonymous with the term "special damages” ’.”
In Hycel, Inc v American Airlines, Inc, 328 F Supp 190, 194 (D Tex, 1971), the court reasoned that:
"[W]hat amounts to consequential damages is largely dependent on the circumstances of each case — the circumstances which should charge the wrongdoing party with constructive knowledge that the resulting injury would be a consequence of his wrongful act — and is essentially a question of fact.”
Inherent in each definition is the notion that to be recoverable the injury not only must be foreseeable but somehow must be a consequence of the breach. In the case at bar, plaintiffs’ precarious financial position was extant prior to the time the contract was entered into. In fact, the record indicates that plaintiffs sold the property to defendant to alleviate their insolvency. Thus, even though defendant knew of plaintiffs’ precarious financial position, we cannot say that the trial judge erred in determining that plaintiffs’ insolvency was not a consequence of defendant’s breach.
The next question is whether the trial court erred in failing to award $15,000, which plaintiffs were required to pay as the real estate broker’s commission on resale, as consequential damages. The only relevant Michigan authority on this question is the general definition of consequential damages in In re Day Estate, supra. The law of other states differs as to the treatment of broker’s commissions. We favor the rule set forth by Justice Traynor of the California Supreme Court in Royer, supra. Justice Traynor reasoned that ordi narily in real estate transactions the seller absorbs the cost of paying the broker’s commission on the sale. Thus, if plaintiff seller is required to pay a second commission on resale due to the buyer’s breach, the seller, already having recovered the commission paid for the initial sale as part of the direct damages awarded for the breach, should not be allowed to recover the amount of the second commission as consequential damages. As Justice Traynor explains, this rule is not without exception:
"In many cases, however, the vendee’s breach may make it necessary for the vendor to incur additional expenses to realize the benefit of the bargain. Given the rule that the value of the property to the seller under section 3307 is ordinarily the market value at the time of the breach (Employees’ Participating Ass’n v Pine, 91 Cal App 2d 299, 301 [204 P2d 965] and cases cited), injustice could result if the vendor were not allowed to recover damages for additional expenses caused him by the vendee’s breach. Thus in a case where the property is sold at the market value and that value remains constant until after the breach, and the property is then resold at the same price, the vendor could recover no damages under section 3307. He would be forced to pay, however, in addition to the expenses of the first sale, the expenses of the resale. When such additional expenses are the natural consequence of the breach, they may be recovered in addition to those provided for in section 3307.” Id., 550.
Justice Traynor concluded that, in the example he cited, the seller could recover the difference between the amount of a broker’s fee on the market price at the time of breach and the amount by which the anticipated expenses of the first sale were reduced by the buyer’s default.
Applying that logic to the circumstances herein, we initially note that there was no broker’s com mission on the first sale which was negotiated by the parties themselves; thus, by virtue of defendant’s breach, plaintiff was obliged to pay an additional expense of $15,000, the broker’s commission on resale. Under these circumstances, even if general damages are awarded plaintiffs for the breach of contract, the damages would not include the broker’s fee on resale. It is for the trial judge to determine whether, from defendant’s standpoint, it was reasonably foreseeable that his breach of the contract would cause plaintiffs to incur additional expenses including real estate commission to resell the property. In deciding this issue, the trial court should consider the evidence that plaintiffs first attempted to resell the property themselves without success, that the size of the lot, its intended use for development as a resort hotel site or for investment purposes, that difficulty of obtaining financing limited the number of available buyers, and that plaintiffs lived some distance from the property, limiting their own ability to show it and sell it to interested parties. If the trial judge finds that the broker’s fee was reasonably foreseeable, the court should award the amount of the fee which plaintiffs proved as consequential damages.
The portion of the trial judge’s judgment and opinion holding that (1) there was no evidence of market value such that direct damages for defendant’s breach were not ascertainable and (2) Michigan law does not allow for recovery of broker’s commissions on resale are reversed and the case remanded for reconsideration in light of our opinion and for specific findings of fact.
Reversed in part and remanded.
The offer of $199,379.58 included $130,000 in cash, debt cancellation for accounting services rendered by defendant amounting to $14,836.62, and cancellation of payments remaining due on another land contract with defendant totalling $54,542.96.
See footnote 1.
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Allen, J.
On September 3, 1980, Bay County Circuit Court entered an opinion granting defendant Colt Industries Operating Corporation’s (hereinafter defendant) motion for accelerated judgment based upon the running of the four-year statute of limitations as provided in the Uniform Commercial Code, MCL 440.2725; MSA 19.2725. Plaintiff appeals as of right.
Plaintiff, an industrial scrap metal processor, contracted with defendant scale manufacturer to purchase a large in-ground railroad and truck scale in 1971. The contract with defendant priced the scale at $16,525 and also contained a price of $12,242 for the installation of the scale. The total price of the contract was $28,767. The scale was built by defendant which subcontracted the installation to Tri-State Scale Installation Company, the third-party defendant. Installation was completed in April, 1972.
Shortly after the installation of the scale, plaintiff discovered cracks in the surface of the concrete pit which housed the scale. Plaintiff wrote defendant concerning these cracks but was assured the cracks were insignificant. Final payment on the scale was made on July 27, 1972. Over the next six years plaintiff made several calls to defendant reporting that the scale was not weighing accurately. Each time defendant adjusted the scale to plaintiff’s satisfaction. When, in 1978, plaintiff was advised by railroad inspectors that the scale was not weighing properly, defendant investigated and discovered that one of the weight-bearing concrete piers in the scale floor had given way. Plaintiff then contacted engineers from one of defendant’s competitors who suggested that the initial scale flooring might well be inadequate but that excavation of the scale would be necessary to inspect the scale floor properly. Excavation occurred September 26, 1978, and, as suspected, the concrete pit floor was found to be inadequate. Specifications called for a floor 24 inches thick, but it had been built with only 10 inches of concrete, thus causing collapse of one of the weight-bearing piers. On June 1, 1979, some seven years and two months after the scale’s installation, plaintiff filed its bill of complaint.
Plaintiff’s complaint proceeds on three theories: breach of express warranty, breach of implied warranty, and negligence. All alleged defects relate to the manner in which the scale was installed. There is no claim that the scale itself was defective. For purposes of defendant’s motion for accelerated judgment, GCR 1963, 116.1(5), the court must accept all well-pled allegations and reasonable conclusions therefrom as true. Crowther v Ross Chemical & Manufacturing Co, 42 Mich App 426; 202 NW2d 577 (1972), Bielski v Wolverine Ins Co, 379 Mich 280; 150 NW2d 788 (1967).
The primary issue before this Court is whether this action is controlled by the Revised Judicature Act, MCL 600.5833; MSA 27A.5833 (hereinafter RJA), or by the Uniform Commercial Code, MCL 440.2725; MSA 19.2725 (hereinafter UCC). The UCC has a four-year statute of limitations in an action for breach of any contract for sale. In the absence of a specific warranty pertaining to future performance of the goods sold, a UCC cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. "A breach of warranty occurs when tender of delivery is made, except that where a warrant explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered.” MCL 440.2725(2); MSA 19.2725(2). The RJA has a six-year statute of limitations in an action for breach of contract. MCL 600.5807(8); MSA 27A.5807(8). Importantly, however, "In actions for damages based on breach of a warranty of quality or fitness the claim accrues at the time the breach of the warranty is discovered or reasonably should be discovered.” MCL 600.5833; MSA 27A.5833.
Defendant contends that the contract between the parties is basically a contract governing the sale of goods subject to the provisions of the UCC, but, if the contract is found to be a contract governing services subject to the RJA six-year period of limitations, the six-year period commenced to run in April, 1972, when plaintiff first noticed cracks in the concrete surface of the pit. Plaintiff argues that the defect is not in the goods sold but in the installation and as such is a service contract governed by the six-year period of limitations. Plaintiff further argues that since neither the pit nor subsurface portion of the scale could be inspected without excavation and since defendant assured plaintiff there was nothing wrong with the pit, the six-year period did not commence to run until September 26, 1978, when excavation was made and the defect was discovered.
The trial court was correct in finding that there is no warranty in the present case which explicitly extended to future performance of the goods. Centennial Ins Co v General Electric Co, 74 Mich App 169; 253 NW2d 696 (1977), Standard Alliance Industries, Inc v Black Clawson Co, 587 F2d 813 (CA 6, 1978). Thus, if this action is controlled by the UCC, the statute of limitations commenced to run in April of 1972, when tender of delivery of the scale was made, and the present action would be barred by the running of the four years. However, if the action is controlled by the RJA, a question of fact arises as to when the breach of warranty was discovered or reasonably should have been discovered. Therefore, since there would be a question of fact as to when the cause of action accrued, accelerated judgment based upon the running of the six-year statute of limitations would be improper.
While the question of which period of limitations should control is of first impression in Michigan, the issue has been addressed in other jurisdictions. A substantially similar case is Dixie Lime & Stone Co v Wiggins Scale Co, 144 Ga App 145; 240 SE2d 323 (1977). In Dixie, as in the present case, the defendant sold the plaintiff a large in-ground scale. The contract between Dixie and Wiggins, like the contract betwen Hirschfield and Colt, contained separate provisions for the sale of the scale and the installation of the scale. Dixie claimed the installation of the scale to be defective. The Dixie court held: 'There is no claim that the scale itself is defective. The agreement underlying this suit was one for the furnishing of services and labor, and the UCC is clearly inapplicable.” Id., 324. This is precisely the situation in the present case.
We find the Dixie rationale persuasive. In accord, see Stephenson v Frazier, — Ind App —; 399 NE2d 794 (1980). In Stephenson, the plaintiffs bought a modular home from the defendants. The total contract price included the installation of a septic system and construction of a foundation. It was argued that the UCC should govern the entire action. The UCC defines "goods” as:
"[A]ll things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities (article 8) and things in action. 'Goods’ also includes the unborn young of animals and growing crops and other identified things attached to realty as described in the section on goods to be severed from realty (section 2107).” MCL 440.2105(1); MSA 19.2105(1).
The Stephenson Court held that while the sale of the modular home was covered by the UCC,
"[t]he part of the contract relating to the construction of the foundation and installation of the septic system, however, does not fall within the definition of 'goods.’ These contractual provisions were for the performance of services and thus the issues pertaining to them must be determined by common law contract principles.” Id., 797.
While respected counsel for defendant acknowledges the validity of Dixie and Stephenson, counsel maintains that the majority rule requires the court to determine whether the contract is pre dominately for the sale of services or predominately for the sale of goods and to apply the UCC to the entire contract if the contract is predominately for the sale of goods. Bonebrake v Cox, 499 F2d 951 (CA 8, 1974), Triangle Underwriters, Inc v Honeywell, Inc, 604 F2d 737 (CA 2, 1979), Aluminum Company of America v Electro Flo Corp, 451 F2d 1115; 10 UCC Rep 88 (CA 10, 1971). However, the contracts in Bonebrake, Triangle and Electro Flo contained only a single, total price which covered both the sale and installation of goods. In addition, the parties in these cases claimed breach of contract relying largely, if not exclusively, on defects in the goods purchased. These cases are distinguishable from the present case in which the contract contains a separate price for installation and plaintiff’s claim relates exclusively to defendant’s improper installation.
We hold that the trial court erred in applying the UCC to plaintiff’s claim against defendant. We limit our holding to the narrow facts of the present case and do not comment on the rule expressed in Bonebrake involving mixed goods-service contracts and a single total contract price. Again, the divisibility of the contract in the present case is significant because plaintiff’s claim is based entirely on deficiencies in the rendition of services for which the contract contained a separate price rather than on any defect in the goods themselves.
Having determined that the UCC does not apply and that the RJA six-year statute of limitations applies, we again note that plaintiff’s cause of action accrued when the breach of warranty was discovered or reasonably should have been discovered. MCL 600.5833; MSA 27A.5833. Accepting plaintiff’s allegations as true, Crowther, supra, we find that, for purposes of defendant’s motion for accelerated judgment, plaintiffs cause of action would accrue on September 26, 1978, the date which plaintiff alleges the deficiency in installation could have been and reasonably was discovered. As such, accelerated judgment was improper as to Counts I and II involving breach of warranties. At the trial on the merits, both plaintiff and defendant may present proofs as to when the alleged breach of warranty in fact was or reasonably should have been discovered. We cannot intimate what these proofs may be or what result they will dictate. It may well be that upon trial on the merits the proofs might disclose that even though the subsurface parts of the scale were buried in the pit, excavation reasonably should have been undertaken by plaintiff sometime prior to June 1, 1973. If so, plaintiff’s action, filed June 1, 1979, would be barred by the six-year period of limitations.
Count III of plaintiff’s complaint states a cause of action alleging negligence. The statute of limitations for negligence actions is three years. MCL 600.5805(8); MSA 27A.5805(8). A cause of action sounding in negligence "accrues at the time the wrong upon which the claim is based was done regardless of the time when damage results.” MCL 600.5827; MSA 27A.5827. The trial court properly found that the negligence claim accrued when the defective installation occurred. Thus, the trial court was correct in concluding that with respect to Count III the statute of limitations had run and that defendant’s motion for accelerated judgment should be granted.
Lastly, plaintiff has claimed during trial and on appeal that the Michigan fraudulent concealment act, MCL 600.5855; MSA 27A.5855, is applicable to the present case. However, plaintiff has acknowledged that the fraud allegations in its complaint may be insufficient, as was found by the trial court. We do not find the trial court’s holding to be erroneous. This in no way affects plaintiff’s ability to move in the lower court to amend its pleadings to allege fraud with sufficient particularity.
The trial court’s grant of accelerated judgment as to Count III and the trial court’s ruling that plaintiff’s allegations of fraud were insufficient are affirmed. The trial court’s grant of accelerated judgment as to Counts I and II is reversed.
Affirmed in part, reversed in part and remanded in accordance with this opinion. No costs, neither party having prevailed in full.
But cf. Lorenz Supply Co v American Standard, Inc, 100 Mich App 600, 606-608; 300 NW2d 335 (1980), where a distributorship of defendant’s products agreement was held not to be a sale of goods coming within the provisions of the Uniform Commercial Code. In Southgate Community School Dist v West Side Construction Co, 399 Mich 72, 78; 247 NW2d 884 (1976), rev’g 63 Mich App 634; 234 NW2d 738 (1975), the four-year period of limitations of the UCC was held to not apply to a products liability action between a manufacturer of an alleged defective product and a consumer.
See also GCR 1963, 116.3 which requires, when the statute of limitations is raised as a defense, that the trial court postpone any hearing on the motion for accelerated judgment, if there is any disputed issue of fact and there has been a jury demand, until after the trial on the merits. 1 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 324. | [
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Per Curiam.
Plaintiff appeals as of right from an order of summary judgment entered in the Wayne County Circuit Court dismissing his complaint for no-fault benefits.
Plaintiff was injured as a result of an automobile accident which arose out of and in the course of his employment with the Detroit Police Department. Although plaintiff was eligible to receive workers’ compensation benefits, he instead elected to receive charter benefits pursuant to Chapter 21, § 18, of the 1974 Charter of the City of Detroit. The absolute right to elect benefits under the charter was extended to plaintiff as a consequence of the collective-bargaining agreement between his union and the City of Detroit, a no-fault self-insurer.
The trial court, noting that plaintiff would receive a windfall if he obtained both no-fault and charter benefits, granted defendant’s motion for summary judgment. The court found that such a double recovery was not intended by the Legislature.
At issue is the proper construction to be given MCL 500.3109(1); MSA 24.13109(1), which provides:
"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.” (Emphasis added.)
Plaintiff contends that the city charter benefits he received are not provided or required to be provided by state or federal law and, as such, that defendant is not entitled to set off these benefits against no-fault benefits due him, citing Luth v Detroit Automobile Inter-Ins Exchange, 113 Mich App 289; 317 NW2d 867 (1982). Defendant, on the other hand, citing Kment v City of Detroit, 109 Mich App 48; 311 NW2d 306 (1981), argues that the charter benefits are "like benefits” comparable to those provided under the Worker’s Disability Compensation Act, MCL 418.101 et seq.; MSA 17.237(101) et seq., and, as such, that a setoff is permissible. We find that neither Luth nor Kment control the resolution of this appeal in favor of either party.
The issue in Kment, heavily relied upon by defendant, was simply whether benefits extended under the City of Detroit’s Charter constituted "like benefits” for purposes of the election required by MCL 418.161; MSA 17.237(161). It may be conceded, however, as we do, that the charter benefits which plaintiff receives are "like benefits” for purposes of MCL 418.161; MSA 17.237(161), without compelling the conclusion that these benefits also fall within the setoff provision of MCL 500.3109(1); MSA 24.13109(1).
In Luth, the plaintiff injured in the motor vehicle accident had the right to choose between workers’ compensation benefits provided under federal law or exhausting his accrued leave time. This Court held that, because the plaintiff chose to exhaust his leave time, the no-fault insurer was not entitled to set off workers’ compensation benefits which would have been received had the plaintiff elected to collect workers’ compensation. The Luth Court reasoned that, given the plaintiff’s decision, the federal government was not required to provide workers’ compensation benefits.
In this case, a more compelling argument can be made that the benefits given to the plaintiff are "required to be provided” under state law than was true in Luth. Section 161(1)(a) of the Worker’s Disability Compensation Act, MCL 418.161(l)(a); MSA 17.237(161)(l)(a), provides that police and fire department employees working for municipalities with charter provisions prescribing like benefits may elect to take workers’ compensation or charter benefits, but not both. This provision may be construed as a requirement of state law that police and fire department employees be entitled to workers’ compensation or charter benefits so that receipt of either is a benefit "required to be provided under state law”. This is the construction which we adopt. Recently, in Perez v State Farm Mutual Automobile Ins Co, 418 Mich 634, 645; 344 NW2d 773 (1984), the three justices who signed the lead opinion indicated in fn 18:
"This construction of the 'required to be provided’ clause of § 3109(1) is consistent with a common definition of the word 'require’. One panel of the Michigan Court of Appeals, in construing § 3109(1), has said that 'the plain meaning of "require” (as shown in Webster’s New World Dictionary) is "to ask or insist upon, as by right or authority; demand” ’. Thacker v DAIIE [114 Mich App 374; 319 NW2d 349 (1982)], supra, p 378.”
Under this definition, we are convinced that charter benefits must be set off. While no statutory provisions specifically require a municipality to provide its police and fire employees with benefits under a city charter, as noted above MCL 418.161(1)(a); MSA 17.237(161)(l)(a) has the effect of requiring municipalities to provide these employees with either workers’ compensation or char ter benefits. Where a municipality does offer an absolute right to charter benefits, MCL 418.161(l)(a); MSA 17.237(161)(l)(a) permits the covered workers to insist upon these benefits. As such, under the construction given MCL 500.3109(1); MSA 24.13109(1) by the Perez plurality, the charter benefits here are "required to be provided” under state law.
This result also advances two major purposes underlying the no-fault act; namely, the prevention of windfall recoveries and the containment of the basic cost of automobile insurance. O’Donnell v State Farm Mutual Automobile Ins Co, 404 Mich 524, 544; 273 NW2d 829 (1979), app dis 444 US 803; 100 S Ct 22; 62 L Ed 2d 16 (1979).
Affirmed. No costs, a public question concerning the proper construction of a statute being involved.
The Luth decision’s continuing vitality is uncertain. The decision was noted in fn 17 of Perez v State Farm Mutual Automobile Ins Co, 418 Mich 634, 645, fn 17; 344 NW2d 773 (1984), but merely as not providing any aid in the resolution of Perez. However, if the Perez plurality really means what it says in fn 18, Luth may well be incorrectly decided, apart from the potential problem noted in fn 3 of Luth, since the plaintiff there could have, but did not, "ask, demand, or call” for workers’ compensation payments available to him.
In addition, in Krawczyk v Detroit Automobile Inter-Ins Exchange, 418 Mich 231; 341 NW2d 110 (1983), the Supreme Court held that fringe benefits were not recoverable as work loss under MCL 500.3107; MSA 24.13107. The underlying basis of Luth, however, was that accrued leave time is a contractual benefit earned for past service, i.e., vacation and sick pay are fringe benefits which neither a workers’ compensation nor no-fault insurer is entitled to claim credits against. If accrued leave time is a fringe benefit within the meaning of Krawczyk, however, the effect of refusing to allow available, but unclaimed, workers’ compensation benefits as a credit against no-fault benefits due is essentially to allow the injured worker to be compensated for the "fringe benefit” of accrued leave time. Alternatively, if vacation and sick time are not treated as fringe benefits but, rather, as the equivalent of wage income, Luth may be incorrectly decided because, by electing to exhaust his accrued leave time, the plaintiff there had suffered no work loss within the meaning of MCL 500.3107; MSA 24.13107. On this point see fn 2 of Luth. | [
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Wahls, J.
Plaintiff appeals a jury verdict which awarded him a judgment against defendant in the amount of $1.4 million for injuries sustained in a railroad crossing collision between plaintiffs automobile and defendant’s train. The jury reduced the award 95% by finding the plaintiff comparatively negligent.
On appeal, plaintiff raises several allegations of error. The dispositive question is whether it was reversible error for the trial judge to instruct the jury from a Standard Jury Instruction which incorrectly stated the law. We answer in the affirmative and remand for a new trial.
On August 17, 1976, at approximately 6:30 p.m., plaintiff was driving westbound on Ten Mile Road when his car collided with defendant’s southbound freight train. Plaintiff testified that he did not hear the train whistle or see the grade-crossing lights flashing as he approached the tracks.
Defendant’s train was travelling at 46 miles per hour as it travelled through the railroad crossing. The crossing was not equipped with gate guards. Several other cars were travelling in the area at the time of the collision. Three drivers testified that, as they approached the railroad crossing, they observed lights on defendant’s train, flashing lights around the crossing and they heard defendant’s train whistle. Two drivers testified that they also drove up to the crossing but, upon observing the flashing lights and hearing the whistle, they both stopped their automobiles at the crossing. However, one driver stated that he neither heard a train whistle nor observed flashing lights and proceeded over the tracks just ahead of plaintiff, and narrowly missed being hit by the train.
On impact, plaintiff’s car was pushed 1,264 feet down the railroad track. Plaintiff and his passenger were pinned inside the wreck. In order to remove plaintiff from the car, a Warren Fire Department medic amputated plaintiff’s arm with a hunting knife.
At trial, plaintiff alleged negligence by the defendant for the excessive speed of the freight train, its failure to erect automatic gate guards and the failure of the train crew to keep a proper lookout. The defendant responded that the plaintiff’s failure to stop at the crossing, in violation of state law, was the sole proximate cause of the accident. In addition to the testimony of drivers who were witnesses to the collision, both parties introduced evidence of ordinances and statutes governing the conduct of the other party under the circumstances. The parties also introduced expert testimony regarding the reasonableness of their conduct under the circumstances.
At the close of the evidence, the trial judge instructed the jury, inter alia, on the effect the plaintiff’s violation of the statute, which requires one to stop at crossing, would have on the question of negligence:
"Whenever any person driving a vehicle approaches a railroad grade crossing under any of the following circumstances, the driver shall stop within 50 feet but not less than 15 feet from the nearest rail of the railroad, and shall not proceed until he can do so safely.
"Those circumstances are, first, a clearly visible electric or mechanical signal device which gives warning of the immediate approach of a railroad train.
"Now, if you find that the plaintiff violated this statute before or at the time of the occurrence then, the plaintiff was negligent as a matter of law. You must then decide whether such negligence was a proximate contributing cause of the occurrence.”
When the trial judge finished instructing the jury, the jury retired to deliberate. Counsel for both parties agreed to a recess so that they could obtain information on the shooting of President Reagan, which had occurred earlier while court was in session. The recess lasted about five min utes. Upon returning, plaintiff’s counsel placed an objection on the record to several instructions. Plaintiff argued that the instruction as to the effect of his failure to stop at the crossing was incorrect. Plaintiff argued that the correct instruction would say that the jury could only infer negligence from his failure to stop at the crossing. The trial judge did not respond to the objection or reinstruct the jury. After the jury returned its verdict, plaintiff filed a motion for a new trial. The motion was denied. Plaintiff appeals as of right.
On appeal, both parties acknowledge that the trial judge instructed the jury from an outdated section of the Michigan Standard Jury Instructions (SJI). The accurate instruction states in pertinent part:
"If you find that the [plaintiff] violated this statute before or at the time of the occurrence, you may infer that the [plaintiff] was negligent.” SJI2d 12.01, p 2-35.
However, the parties disagree on the standard this Court should apply on review. Plaintiff argues that such errors are automatically reversible under the standard expressed by the Supreme Court in Javis v Ypsilanti School Bd, 393 Mich 689; 227 NW2d 543 (1975). Defendant responds that the issue under any standard is not reviewable because of the plaintiff’s failure to object to the instructions before the jury began their deliberations.
The law on instructions to. the jury is governed primarily by rule 516 of the Michigan General Court Rules. GCR 1963, 516. With respect to the SJI, subrule 516.6 provides that a trial court is required to instruct a jury therefrom if the instruction is applicable and if it accurately states the law. Ibid. When a trial court omits or deviates from an applicable and accurate SJI, this state has adopted a strict standard which presumes prejudicial error:
"Where there is an omission of, or a deviation from an applicable and accurate SJI, prejudicial error will be presumed; provided that the erroneously omitted SJI was requested at trial; and provided that in those cases where error is charged as a result of deviation from a SJI, said deviation was brought to the attention of the trial court prior to the commencement of jury deliberations.” Javis v Ypsilanti School Bd, 393 Mich 689, 702-703; 227 NW2d 543 (1975).
The foregoing rule makes it clear that an instruction given by a trial judge from the SJI must be accurate. "The SJI do not establish substantive law, and the trial court has the responsibility for determining that their statement of the law is correct.” 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed Supp, 1983), p 204.
However, we hold that the strict standard of review required under Javis is not applicable to the present case. Here, we are not faced with a scenario in which the trial judge omits or deviates from an applicable and accurate instruction. The SJI here had been overruled three years prior to trial. Rather, the error arises out of the unerring recitation by the trial judge from an applicable but totally inaccurate SJI. The Javis standard was adopted to encourage the bench and the bar to apply the SJI consistently and uniformly whenever an instruction contained therein was applicable and accurate. Javis, supra, p 699. The Javis standard was not intended to supersede the court rule and require automatic reversal for every instructional error.
We hold that, whenever an instructional error concerns an instruction in the SJI which is either inapplicable or inaccurate or both, the general requirements of subrule 516.2 govern:
"Objections. No party may assign as error the giving or the failure to give an instruction unless he objects thereto before the jury retires to consider the verdict, stating specifically the matter to which he objects and the grounds of his objection. Opportunity shall be given to make the objection out of the hearing of the jury.” GCR 1963, 516.2.
The defendant in the present case is correct in stating that under subrule 516.2 review of an alleged error is predicated upon a timely objection by the opposing party. Postill v Booth Newspapers, Inc, 118 Mich App 608, 325 NW2d 511 (1982), lv den 417 Mich 1050 (1983). Drouillard v Metropolitan Life Ins Co, 107 Mich App 608; 310 NW2d 15 (1981), lv den 413 Mich 874 (1982). However, a court on review may review an alleged instructional error sua sponte when it deems it necessary to prevent manifest injustice. People v McCoy, 392 Mich 231, 235; 220 NW2d 456 (1974). Hunt v Dealing, 375 Mich 581, 585; 134 NW2d 662 (1965). Howard v Feld, 100 Mich App 271, 274; 298 NW2d 722 (1980).
In the present case, we find that manifest injustice would result if this Court did not review plaintiffs claim of error. First, our review of the transcript reveals that plaintiff did place an objection to the instruction on the record within minutes after the jury began their deliberations. The reason for the delay seems to lie in an agreement between counsel to recess briefly to acquire information on the condition of President Reagan, who had been shot earlier in the day. It is not clear from the record whether plaintiff’s counsel understood that the jury had been instructed to begin deliberating from the point of the recess but, after resuming, both counsel proceeded to place objections to the instructions on the record. We would hesitate to apply subrule 516.2 in a strict manner on the facts before us. The trial judge could easily have corrected the error by responding to plaintiffs objection and reinstructing the jury. Hunt v Deming, supra, pp 584-585. GCR 1963, 516.4. His failure to either respond to or correct his charge complicates further our application of subrule 516.2. We hold the trial judge’s failure was error, Kirby v Larson, 400 Mich 585, 604-605; 256 NW2d 400 (1977), and under the circumstances of this case excuse plaintiff’s untimely objection.
Second, we find that review is required to avoid injustice because of the very nature of the error. The trial court incorrectly stated the law on the effect of plaintiffs violation of the statute on the question of negligence. Review of such an instruction is appropriate when it is apparent that the verdict of the jury may have been based upon a misconception of the law. Blumelein v Szepanski, 101 Mich App 184, 191; 300 NW2d 493 (1980), lv den 411 Mich 995 (1981). In the present case, the incorrect instruction affected the very essence of the case. Therefore, review is.appropriate.
When reviewing a claimed error in a jury in struction, the instruction must be read as a whole. Broth v DeGrandchamp, 71 Mich App 439; 248 NW2d 576 (1976), lv den 400 Mich 808 (1977). Froling v Bischoff, 73 Mich App 496; 252 NW2d 832 (1977). Reversible error will not result if on balance the theories of the parties and the applicable law are adequately and fairly presented to the jury. Berlin v Snyder, 89 Mich App 38, 41; 279 NW2d 322 (1979). However, where an unlawful, erroneous, contradictory or conflicting instruction is given to a jury on an issue material to the case, the instruction is inherently defective and constitutes reversible error. Kirby v Larson, supra, pp 604-607. Iwrey v Flowler, 367 Mich 311, 314-316; 116 NW2d 722 (1962). Getman v Mathews, 125 Mich App 245, 247-248; 335 NW2d 671 (1983).
In the present case, the issue of negligence was the fundamental issue. We find the erroneous charge inherently defective. Therefore, we reverse and remand for a new trial. Because of our disposition of this issue, we do not consider the merits of plaintiffs remaining allegations.
The relevant statute is set forth in full below:
“(1) When a person driving a vehicle approaches a railroad grade crossing under any of the following circumstances, the driver shall stop the vehicle not more than 50 feet but not less than 15 feet from the nearest rail of the railroad, and shall not proceed until the driver can do so safely:
"(a) A clearly visible electric or mechanical signal device gives warning of the immediate approach of a railroad train.
"(b) A crossing gate is lowered or a flagman gives or continues to give a signal of the approach or passage of a railroad train.
"(c) A railroad train approaching within approximately 1,500 feet of the highway crossing gives a signal audible from that distance, and the train by reason of its speed or nearness to the crossing is an immediate hazard.
"(d) An approaching railroad train is plainly visible and is in hazardous proximity to the crossing.
"(2) A person shall not drive a vehicle through, around, or under a crossing gate or barrier at a railroad crossing while the gate or barrier is closed or is being opened or closed.
"(3) A person who violates this section is responsible for a civil infraction.” MCL 257.667; MSA 9.2367.
The change in the jury instruction was prompted by the rule announced by the Supreme Court in Zeni v Anderson, 397 Mich 117; 243 NW2d 270 (1976). In Zeni, the trial court had instructed the jury that if plaintiff was found to have violated a provision of the Motor Vehicle Code, then plaintiff was negligent as a matter of law. On appeal, the Supreme Court rejected this instruction as a misstatement of Michigan law on the ground that a person’s violation of a Michigan penal statute only gives rise to a rebuttable presumption that the person’s actions were negligent. 397 Mich 143. Thereafter, in Hardy v Monsanto Enviro-Chem Systems, Inc, 414 Mich 29; 323 NW2d 270 (1982), the Zeni rule was applied in a civil setting. | [
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Per Curiam.
Following a jury trial, plaintiff Phoenix Contractors, Inc., was awarded damages in the amount of $199,084. At trial, plaintiff claimed damages for delay caused by defendant’s interference with a construction project. The alleged interference was defendant’s instruction to one of its subcontractors, Darin & Armstrong, Inc., not to allow other subcontractors to keep Darin & Armstrong from completing its contract on time. Plaintiff contended that Darin & Armstrong kept plaintiff from orderly construction and increased its costs of completion.
The construction project was undertaken by plaintiff pursuant to a written contract for the mechanical trades work in the press building of defendant’s plant. This contract was one of sixteen involved in the expansion of defendant’s Fisher Body Production Plant in Wyoming, Michigan, to facilitate production of defendant’s X-car line.
The contract was awarded in the usual manner. There was a series of bid documents, including a request for quotations, bid forms, drawings and specifications. Defendant’s standard general conditions for all construction contracts, including conditions and addenda for the specific contract, were incorporated by reference in the written contract between the parties. Also included in the contract was a "no damage for delay” clause.
Defendant appeals as of right, and plaintiffs cross-appeal.
Issues
I. Did the "no damage for delay” clause in the contract, as a matter of law, defeat plaintiff’s claim for damages?
We find that the plaintiff was entitled to a jury determination of damages.
II. Did plaintiff waive its cause of action?
We find that a jury question existed as to the waiver claim.
III. Did the trial court commit reversible error in charging the jury with regard to the "no damage for delay” clause?
We do not find reversible error in the charge.
The Exculpatory Clause
Plaintiff’s responsibility under the contract involved installing piping for compressed air, heating and water. Plaintiff was also responsible for installing six heating units on the building roof.
Defendant contracted directly with Darin & Armstrong, Inc., for installation and assembly of presses, and with the floor steel contractor, American Bridge. Defendant also acted as its own job representative and general contractor for the press installation project. This was not a typical arrangement since the general contractor did not have all subcontractors under its control.
Plaintiff got behind on its contract obligation because of delays. Additional man hours attributable to project changes were approved and paid for by defendant. Plaintiff got further behind, however, because it could not work while Darin & Armstrong was installing presses.
It was clear, and everyone in the project recognized, that no change in the completion date of the contract could be made. Plaintiff did complete the job on time, but at substantial additional cost which plaintiff attributes to interference and delay caused by defendant and its subcontractors, particularly Darin & Armstrong.
Defendant contends that the exculpatory "no damage for delay” clause relieves it of responsibility for plaintiff’s claim as a matter of law. At the conclusion of plaintiff’s proofs defendant moved for a directed verdict. Defendant contends that it was error for the trial court to deny a directed verdict.
In deciding whether to grant defendant’s motion for directed verdict, the trial court must view the evidence, and all legitimate inferences that may be drawn therefrom, in a light most favorable to plaintiff. If the evidence, as examined in this manner, establishes a prima facie case the motion should be denied. Vandendries v General Motors Corp, 130 Mich App 195, 198; 343 NW2d 4 (1983). •When a party appeals from a denial of a motion for directed verdict, this Court is limited on review to the question of whether the party opposing the motion offered evidence about which reasonable minds could differ. Perry v Hazel Park Harness Raceway, 123 Mich App 542, 549; 332 NW2d 601 (1983).
Article 7(c) of the contract, the "no damage for delay” clause relied upon by defendant, reads as follows:
"(c) If the contractor is delayed in the completion of the several portions or the whole of the work comprehended in the contract due to acts of the owner, acts of the other contractors in performing a contract with the owner, fire, floods, strikes, or other casualties beyond the control and without the fault or negligence of the contractor, the time for completion shall be extended for a period determined by the owner to be equivalent to the time of such delay. The contractor will not be entitled to recover the actual damages he sustains by reason of such delays. (Contingency items in the contractor’s bid are assumed to provide for continuing costs while the job is delayed.)”
We find this exculpatory clause to be valid. See Owen Construction Co, Inc v Iowa State Dep’t of Transportation, 274 NW2d 304, 306 (Iowa, 1979), and Anno: Validity and Construction of ”No Damage” Clause with Respect to Delay in Building or Construction Contract, 74 ALR3d 187, § 3, pp 203-206.
There are exceptions to the enforceability of such clauses. These exceptions infclude situations where the delay (1) was of a kind not contemplated by the parties; (2) amounted to an abandonment of the contract; (3) was caused by bad faith on the part of the contracting authority; or (4) was caused by the active interference of the other contracting party. See Owen, supra, p 307, and cases cited therein, and 74 ALR3d supra, at II, pp 203-231.
In this case, plaintiff contends that the "no damage for delay” clause does not apply because there was no delay. The record shows that plaintiff completed the contract on time. We reject this contention, finding that the clause was applicable under the facts of this case. We do find, however, that a jury issue existed as to plaintiffs claim that the "delay” was of a kind not contemplated by the parties and/or that the delay was caused by the active interference of defendant.
Although plaintiff completed its contract on time, it sustained substantial additional costs. It was not permitted to work while another contractor, Darin & Armstrong, was setting presses. This interfering contractor was directed by defendant to give its work priority. The record shows that the interfering contractor was also insulated from the typical method for resolving on-the-job disputes. Darin & Armstrong answered directly to defendant, as opposed to the contractor in charge of the project. Construction projects of the kind involved in this dispute are normally handled by a tiered structure of authority. This structure is made up of the owner, a general contractor, and subconstractors.
The issue for the jury was whether this arrangement between Darin & Armstrong and defendant was within the contemplation of the parties at the time of entering into the contract. While there was conflicting evidence introduced concerning the availability of this knowledge to plaintiff, we find that such evidence, when viewed in the light most favorable to plaintiff, would prohibit the court from granting defendant’s motion for directed verdict. Compare John E Green Plumbing & Heating Co, Inc v Turner Construction Co, 500 F Supp 910, 913 (ED Mich, 1980), and Owen, supra, p 307.
There was also conflicting evidence from which the jury could find "active interference”. To find "active interference” the jury must find that defendant committed some affirmative wilful act in bad faith which unreasonably interfered with plaintiff’s compliance with the contract. United States Steel Corp v Missouri Pacific R Co, 668 F2d 435, 438 (CA 8, 1982).
The bad faith required implies knowledge on the defendant’s part, which the jury could have found to be present on the basis that its conduct would interfere with plaintiff’s ability to perform its contract on time. See Algernon Blair, Inc v Norfolk Redevelopment & Housing Authority, 200 Va 815; 108 SE2d 259 (1959).
Waiver
Defendant contends that plaintiff waived its right to claim damages. Defendant claims plaintiff did not request an extension of time for the performance of its work and did not provide defendant with notice of a change in the work before proceeding, as required by the contract.
We find that sufficient evidence existed to support a finding that the requirements contained within the exculpatory clauses of the contract were waived. Campbell v City of Troy, 42 Mich App 534; 202 NW2d 547 (1972); Cascade Electric Co v Rice, 70 Mich App 420; 245 NW2d 774 (1976).
There was evidence that both plaintiff and defendant ignored performance of the contract with respect to the contractual clauses relied upon by defendant.
The extension portion of the "no damage for delay” clause was clearly inapplicable because that option was simply not available to plaintiff. It was understood by all parties that the contract would have to be completed by December 31, 1978. No extensions would be allowed.
Article 25 of the contract provided that all claims for changes in work had to be submitted promptly in writing and before the work was done. The evidence, however, established that defendant considered and approved a number of change orders in 1980 and 1981, even though the contract had been completed by that time.
Further, the record established that defendant would often authorize changes in the field or permit work to continue while considering a change order because of the urgent nature of the project. In particular, supervisory personnel of the general contractor testified that as early as September, 1978, well before additional manpower was added to the project, they made it known that plaintiff and other subcontractors were having problems in completing the job. A series of letters was introduced to show that there had been an ongoing dialogue concerning these delays. Defendant’s personnel conceded the existence of this dialogue and their knowledge of the problem. Change orders approved by defendant came long after the fact.
The Jury Charge
The pertinent section of the jury charge provides:
"If you find that defendant actively interfered with plaintiffs performance of its contract in a manner not reasonably contemplated by both parties to the contract, then your verdict will be for plaintiff. If you find that defendant did not actively interfere with the plaintiffs performance of its contract, then your verdict will be for defendant. In this connection, defendant’s interference, if you find there was such interference, it must have been a substantial cause of plaintiffs damages.
"By 'interference’, I mean that General Motors did something which it ought reasonably not to have done or did not do something which it ought reasonably to have done.”
When not limited by the rules governing requests for Standard Jury Instructions, the court has a duty to consider requests by each of the parties and to formulate an instruction which understandably presents the applicable rules of law and essential legal principles involved. Perry v Hazel Park Harness Raceway, supra, pp 548-549; McNabb v Green Real Estate Co, 62 Mich App 500, 513-514; 233 NW2d 811 (1975). When the instructions contain error, this Court will not reverse and order a new trial where the instructions are not sufficiently prejudicial or did not result in a miscarriage of justice. Robertson v Swindell-Dressler Co, 82 Mich App 382, 395; 267 NW2d 131 (1978).
We do not find this instruction to be an inaccurate statement of the law to the degree that defendant was prejudiced or that a miscarriage of justice resulted. As stated in this opinion, sufficient facts were present in the record to permit the jury to find that defendant "actively interfered” with plaintiffs contract performance. Although the language of the instruction could have been more precise and expansive, the instruction does not constitute error.
Moreover, the instruction as given may have misstated the law, but to defendant’s benefit. The instruction can be read as requiring the jury to find both "active interference” and "not within the contemplation of the parties” before plaintiff was entitled to receive a verdict. As noted, these are two separate and independent exceptions to the exculpatory clause. It was only necessary for the jury to find the presence of one of these exceptions in order to support a plaintiffs verdict. Plaintiff was not required to prove the applicability of both exceptions.
Conclusions
Defendant was not entitled to a directed verdict. Fact issues were present. The jury could properly find that the "no damage for delay” clause was inapplicable because defendant "actively interfered” with the contract or because defendant’s conduct was not "within the contemplation of the parties”. There was sufficient evidence to allow the jury to find that contract requirements to validate changes were waived. The court’s charge to the jury dealing with claimed exceptions to the "no damage for delay” clause was not so inaccurate as to be prejudicial to defendant or to result in a miscarriage of justice.
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Per Curiaivi.
Plaintiff and defendant were married on September 16, 1972. One child,, Paul Kasem, was born of the marriage. A judgment of divorce was entered on February 14, 1978. After petitions by plaintiff requesting an increase in child support and by defendant seeking a change in custody, the trial judge entered an order modifying the judgment of divorce. Plaintiff presently appeals as of right from the trial court’s order of May 23, 1983, modifying the judgment of divorce in the areas of custody of the minor child and support payments by both plaintiff and defendant.
Plaintiff first argues that the trial court erred by changing custody of the minor child. In the original divorce judgment, plaintiff was granted custody of Paul and defendant was granted overnight visitation. The trial court changed custody, upon defendant’s petition, awarding joint custody to plaintiff and defendant. Defendant was granted physical custody of the child during the summer months, while plaintiff was awarded physical custody during the school year. Each party was awarded visitation on alternate weekends during the time the other parent had physical custody. Plaintiff argues on appeal that the trial judge erred by failing to determine whether a custodial environment had been established with plaintiff and by granting a change in custody where he found the evidence to be equally balanced between the parties. Plaintiff also argues that the trial judge’s findings of fact were insufficient under GCR 1963, 517.1, were contrary to the great weight of the evidence and that it was clear legal error for the trial court to grant joint custody where the evidence established that the parties could not agree on important decisions affecting the best interests of the child.
It is well settled that when deciding a custody matter the trial court must evaluate each of the factors contained in the Child Custody Act, MCL 722.23; MSA 25.312(3), and state a conclusion on each, thereby determining the best interests of the child. Speers v Speers, 108 Mich App 543; 310 NW2d 455 (1981). The failure to make such specific findings is reversible error. Currey v Currey, 109 Mich App 111; 310 NW2d 913 (1981). Child custody cases are considered de novo by this Court, and the evidence is examined apart from the trial judge’s finding of fact. Outcalt v Outcalt, 40 Mich App 392; 198 NW2d 779 (1972). Review is limited by MCL 722.28; MSA 25.312(8), which requires all orders and judgments of the circuit court to be affirmed on appeal "unless the trial judge made findings of fact against the great weight of evidence or committed a palpable abuse of discretion or a clear legal error on a major issue”.
We first reject plaintiff’s argument that the trial judge failed to make specific findings of fact on the best interests of the child factors. The trial judge made findings of fact and drew conclusions on each of the factors listed in MCL 722.23; MSA 25.312(3). We have reviewed the record and conclude that none of the trial judge’s findings of fact were against the great weight of the evidence. The trial judge’s findings placed the parties in an equal or nearly equal position on all of the best interest of the child factors.
MCL 722.27(c); MSA 25.312(7)(c) governs changes in custody where an established custodial environment exists:
"If a child custody dispute has been submitted to a circuit court as an original action under this act or has arisen incidentally from another action in a circuit court or another or [sic] judgment of a circuit court, for the best interests of the child the court may:
"(c) Modify or amend its previous judgments or orders for proper cause shown or because of change of circumstances until the child reaches 18 years of age. The court shall not modify or amend its previous judgments or orders or issue a new order so as to change the established custodial environment of a child unless there is presented clear and convincing evidence that it is in the best interest of the child. The custodial environment of a child is established if over an appreciable time the child naturally looks to the custodian in that environment for guidance, discipline, the necessities of life, and parental comfort. The age of the child, the physical environment, and the inclination of the custodian and the child as to permanency of the relationship shall also be considered.”
Where there is an established custodial environment, clear and convincing evidence is required to show that it is in the best interests of the child to change the custody arrangement. The burden is on the moving party to establish by a preponderance of the evidence that a change in circumstances has occurred so as to justify a change in custody. Outcalt, supra.
The trial judge here made no finding as to whether an established custodial environment existed. From the evidence produced at trial, we find that an established custodial environment existed with plaintiff. Although plaintiff and the child changed residences four times during the five-year period after the divorce, it was undisputed that the child lived with plaintiff continuously from the date of the divorce decree until the time of trial. Defendant also did not dispute that during the first two and one-half years after the divorce he saw his son only four to five times. After that period, defendant began to see him on alternate weekends for visitation. We think it clear from this testimony that an established custodial environment existed with plaintiff, since hers was the most constant presence in the boy’s life and he would naturally look to her for guidance, discipline, the necessities of life, and parental comfort. MCL 722.27(c); MSA 25.312(7)(c).
In light of . our finding that the established custodial environment was with the mother and the fact that the trial judge found the parties to be equal or nearly equal on all of the best interest of the child factors, we believe that clear legal error on a major issue occurred and that the trial court’s order changing custody must be reversed. Defendant cannot be said to have met his burden of showing by clear and convincing evidence that a change from sole custody in the plaintiff to joint custody between both parties was in the best interests of the child. Where an evidentiary standoff exists, the trial judge should not order a change in custody, Outcalt, supra, particularly when a custody change means altering the established custodial environment of the child.
We base our holding on the presumption in favor of the established custodial environment, absent clear and convincing evidence supporting a change, and on the fact that the trial judge found the parties to be substantially equal. We do not rest our decision on the grounds suggested by plaintiff, that joint custody was improper here, as we do not find the parties’ differences to be so insurmountable that they could not agree on basic decisions affecting the child. We find Fisher v Fisher, 118 Mich App 227; 324 NW2d 582 (1982), relied upon by plaintiff, to be distinguishable since there the parties had major philosophical differences as to the religious training of the children. The problems here do not appear to be of the same magnitude.
Plaintiff’s next argument is that the trial judge erred by ordering that a trust account be established for the college education of the child. Defendant was ordered to pay $18 weekly into this fund and plaintiff was ordered to pay $15 weekly into the account during the weeks in the summer in which defendant had physical custody of the child. Plaintiff argues that this order was in violation of the Age of Majority Act of 1971, MCL 722.51 et seq.; MSA 25.244(51) et seq.
We agree that the trial court erred in creating this obligation for the benefit of the child after he reaches the age of majority. The Age of Majority Act negates any obligation for child support beyond age 18 absent an express reservation in the original divorce judgment of the right to extend support in the future. Sumerix v Sumerix, 106 Mich App 7; 307 NW2d 727 (1981). No such reservation was included in the judgment of divorce of plaintiff and defendant. Although the trust fund created by the court’s order provides for a current obligation on the part of plaintiff and defendant, the benefit to the child will accrue only after the child has graduated from high school. We therefore find the Age of Majority Act and this Court’s decisions in McNames v McNames, 93 Mich App 477; 286 NW2d 892 (1979), and Sumerix, supra, to be applicable. We note that neither party requested a support order providing for the child’s college education, nor was the creation of the fund the object of a stipulation of the parties. The purpose of child support is to provide funds for the immediate needs of the child. While certainly the parents of the child can voluntarily elect to establish a fund for the child’s future education, we believe that the trial court has no authority to do so absent an express reservation of that power in the divorce judgment.
Plaintiff’s final contention is that the trial court erred in failing to order a retroactive increase in defendant’s support obligation. We find no error.
It is the burden of the petitioning party to present evidence establishing a change in circumstances that would justify a change in the child support provisions of the divorce judgment. McCarthy v McCarthy, 74 Mich App 105; 253 NW2d 672 (1977). Plaintiff testified that Paul was attending a private school and thus tuition costs were present. The trial judge ordered defendant to pay one-half of the school tuition. Plaintiff presented no further testimony concerning the increased financial needs of the child. Although the parties stipulated to admit evidence of their incomes, no testimony was presented as to how these figures should be interpreted. Plaintiff failed to meet her burden of proof. We accordingly find no error in the trial court’s denial of an increase in defendant’s support payments, beyond the requirement that defendant pay one-half of the private school tuition cost.
Reversed in part and affirmed in part. Remanded for proceedings consistent with this opinion; we do not retain jurisdiction. No costs, neither party having fully prevailed. | [
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Per Curiam.
Respondent appeals as of right from a juvenile court’s order committing him to the custody of the Michigan Department of Social Services.
Respondent has been a temporary ward of the Ingham County Probate Court since July 8, 1979. The instant appeal arose out of an incident which was alleged to have occurred on May 7, 1983. A petition for rehearing was signed by a Lansing police detective on May 12, 1983, alleging that respondent had committed the crime of larceny in a building by stealing several items from a Lansing store. On May 24, 1983, a preliminary hearing was held before probate court referee Michele Bauer. In accordance with MCL 712A.17; MSA 27.3178(598.17), no transcript was made of the hearing. A preliminary order, dated May 24, 1983, authorized the filing of the petition against respondent and placed him in the temporary care of the Ingham County Shelter Home. A general order, dated May 25, 1983, signed by Probate Court Judge Robert Drake, provided that "a plea having been taken” at the preliminary hearing, a determination had been made to conduct a dispositional hearing. At the dispositional hearing, referee Richard Kerbawy determined that respondent should be committed to the Department of Social Services. An order to that effect was entered by Judge Drake on June 7, 1983.
Respondent raises three issues on appeal. He argues initially that the referees at the preliminary and dispositional hearings committed errors, which separately or together amounted to a denial of his right to due process. We have reviewed the alleged errors and find no denial of due process.
The referees were not required to obtain the consent of any party before holding the preliminary and dispositional hearing since the matter was not placed on the consent calendar. See JCR 1969, 4.3(C). The referee at the preliminary hearing recommended that a petition be filed. An order to that effect was entered the following day by the probate judge. The filing and authorization of the petition was consistent with proceedings on the formal calendar. See JCR 1969, 4.3(D). Respondent’s mother was not denied the opportunity to post bond. The record of the preliminary hearing indicates that JCR 1969, 4.2(B)(9) and MCL 712A.17; MSA 27.3178(598.17) were complied with, since respondent’s parent was advised of the right to post bond. Respondent and his mother were likewise informed of the right to counsel and the right to remain silent at the preliminary hearing, pursuant to JCR 1969, 8.2(C) and (D). Respondent contends that he should have been informed of these rights again at the subsequent dispositional hearing. JCR 1969, 6.1(A) requires only that the child and parent be advised of the right to counsel at the ñrst hearing. Although JCR 1969, 8.5 requires the hearing referee to follow the procedures set forth in subrules 8.2(A) through 8.2(E), we find no reversible error here since respondent had already, in the presence of his mother, acknowledged and admitted to the correctness of the petition at the preliminary hearing, where he was advised of his right to counsel and to remain silent. The dispositional hearing concerned only the question of where respondent should be placed. Respondent’s final allegation of error resulting in a denial of due process likewise is without merit. The referee did not ignore respondent’s request to have his case heard by a judge. The transcript indicates that the referee made every attempt to comply, but that respondent unequivocally withdrew his request.
Respondent’s second argument is that there was no valid basis for the probate court’s exercise of jurisdiction. Respondent contends that jurisdiction was based on his invalid confession of guilt regarding the alleged larceny. Respondent misconstrues the basis for the probate court’s jurisdiction here. Jurisdiction over respondent was obtained prior to July 8, 1979. The probate court continued to exercise its jurisdiction by conducting rehearings and placing respondent in various facilities up until the instant order committing respondent to the custody of the Michigan Department of Social Services. Under MCL 712A.2a; MSA 27.3178(598.2a), when the probate court, as here, has exercised jurisdiction over a child pursuant to subdivisions (a) or (b) of § 2 of the Juvenile Code, jurisdiction continues for a period of two years beyond the maximum age of jurisdiction conferred under § 2. Since respondent was 14 at the time the instant order was entered, he was well within the jurisdictional age discussed in the statute. See MCL 712A.2; MSA 27.3178(598.2). The probate court’s jurisdiction here was not based on any confession obtained from respondent, but was a continuing jurisdiction based on respondent’s past conduct.
Respondent’s final contention is that the referees at the preliminary and dispositional hearings erred by failing sua sponte to appoint for him an attorney or a guardian ad litem. We find no error.
JCR 1969, 8.2(C) requires that the child and his parent be advised of the right to counsel as provided in JCR 1969, 7. JCR 1969, 6.3(A)(1) requires the court to appoint counsel for the child "when the child and those responsible for his support are financially unable to employ counsel, or though able, refuse to employ counsel” unless waived as provided by JCR 1969, 6.2. JCR 1969, 6.2 provides that "[a] child may voluntarily and understandingly waive the right to counsel” with the concurrence of a parent. Informal proceedings in probate court are not required to be transcribed. MCL 712A.17; MSA 27.3178(598.17). In light of the fact that no verbatim transcript need be made at preliminary hearings, we decline to impose the requirement requested by respondent that an express waiver of the right to counsel appear in the record. Such a requirement is not mandated by the Juvenile Code or by the Juvenile Court Rules. In re Gault, 387 US 1, 42; 87 S Ct 1428, 1451; 18 L Ed 2d 527, 554 (1967), relied upon by respondent, states that due process requires that a juvenile be advised of his right to retained or appointed counsel, but recognizes that such right may be waived. The Court makes no finding that due process requires an express waiver of such right on the record. While we believe the better practice would be to require respondent and his parent or guardian to sign a waiver of counsel form, we decline to find error in the referees’ failure to do so in this case.
Respondent has also failed to establish that the failure of the referees to appoint sua sponte a guardian ad litem was an abuse of discretion. JCR 1969, 5, requires the appointment of a guardian ad litem when no parent, guardian or custodian appears on behalf of the child, or where, "in the opinion of the court, the welfare of the child so requires”. Referee Bauer determined at the preliminary hearing that the appointment of a guardian ad litem was not necessary. Respondent’s mother was present at that hearing and both parents were present at the dispositional hearing. There is no evidence that respondent’s rights were prejudiced by the referees’ decision. In light of respondent’s extensive experience in the probate court system and the presence of at least one parent at both hearings, we find no abuse of discretion.
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Bronson, J.
In this appeal we are asked to reconsider the admissibility of evidence of a plaintiffs non-use of a seat belt as evidence of contributory negligence in light of this state’s adoption of comparative negligence.
I
In No. 67515, defendants, Misc.er-Bennett Ford and Monica Tanner, sought to amend their complaint following the deposition of Ronald Hines, M.D., the coroner, during which he opined that, if Nathan Schmitzer, plaintiffs decedent, had used his seat belt, "he would still be alive”. After hearing oral arguments, the circuit court denied defendants’ motion to amend their answer to include the decedent’s failure to use a seat belt as an affirmative defense, but reserved ruling on whether evidence of the decedent’s non-use of a seat belt could be introduced as evidence of decedent’s "comparative negligence”. This Court granted defendants’ application for leave to appeal from the order denying their motion to amend and consolidated the case with No. 68924.
In No. 68924, plaintiffs, Kenneth and Viola Seifert, moved to strike the affirmative defense of comparative negligence by reason of failure to wear a seat belt. The circuit court issued an opinion and order denying plaintiffs’ motion and ruling that "evidence of availability and use or non-use of seat belts may be admitted for consideration by the jury”. Plaintiffs appeal by leave granted from the order denying their motion to strike.
II
It is undisputed that prior to the adoption of comparative negligence in this state, evidence of plaintiffs non-use of a seat belt was not admissible on either the question of plaintiff’s contributory negligence or plaintiff’s failure to mitigate damages. When first confronted with the issue of the admissibility of evidence of the non-use of a seat belt, this Court reviewed the decisions from other juridictions addressing the "seat-belt defense”. Romankewiz v Black, 16 Mich App 119, 122-123; 167 NW2d 606 (1969). Noting that the Michigan statute mandating the installation of seat belts, MCL 257.710b; MSA 9.2410(2), imposed no sanction for failure to use a seat belt, and the statistics demonstrating the general public’s non-use of seat belts as well as studies showing that belt use can exacerbate injuries, this Court explicitly adopted the view expressed in Miller v Miller, 273 NC 228, 233-234; 160 SE2d 65 (1968):
" 'So far as our research discloses, no court has yet held an occupant’s failure to buckle his seat belt to be negligence per se. (Citing cases.) If the failure to buckle a seat belt is not negligence per se, it could be contributory negligence only when a plaintiff’s omission to use the belt amounted to a failure to exercise the ordinary care which a reasonably prudent person would have used under the circumstances preceding that particular accident. Since the facts and circumstances preceding any accident will vary, so must conduct constituting due care. Under what circumstances would a plaintiffs failure to buckle his seat belt constitute negligence? If a motorist begins his journey without buckling his belt, ordinarily he will not have time to fasten it when the danger of accident becomes apparent; so the duty to "buckle up” — if any — must have existed prior to the injury. Furthermore, it must be remembered that until one has, or should have, notice of another’s negligence, he is not required to anticipate it. On the contrary, he is entitled to assume that others will use due care for his safety and their own. (Citing cases.)’
"Accordingly, we hold that as a matter of law, [plaintiffs minor] had no duty to wear a seat belt. The plaintiffs failure to fasten his seat belt was not such negligence as to contribute to the cause of the accident. Unbuckled plaintiffs do not cause accidents.” Romankewiz, supra, pp 125-126. (Emphasis in original.)
Relying on the analysis in Miller, supra, this Court further held that evidence of a plaintiffs failure to use a seat belt was inadmissible under the theory of avoidable consequences or mitigation of damages. We reasoned that where there was no duty to buckle a seat belt, failure to do so cannot be held to be a breach of the duty to avoid consequences or minimize damages.
One year later, this Court affirmed the holding of Romankewiz, supra, in Selmo v Baratono, 28 Mich App 217, 228; 184 NW2d 367 (1970), lv den 384 Mich 834 (1971), where we found no error in the trial court’s refusal to instruct the jury that it could consider failure to wear a seat belt in determining the amount of damages. Finally, in Placek v Sterling Heights, 52 Mich App 619; 217 NW2d 900 (1974), lv den 392 Mich 811 (1974), this Court held that the questioning of a plaintiff concerning his failure to wear a seat belt with or without a shoulder harness is so irrelevant and prejudicial that the plaintiff is entitled to a new trial even in the absence of proof that the jury was influenced by the testimony.
In summary, this Court has consistently opposed the introduction of evidence of a plaintiffs failure to use a seat belt. This rule was based on our determination that there is no duty to use a seat belt as well as the practical "facts of automobile travel today”, Romankewiz, supra, pp 125-126.
Ill
In 1979, the Michigan Supreme Court, acting under its authority to change the common law, replaced the doctrine of contributory negligence as a total bar to recovery with the doctrine of comparative negligence "in the interest of justice for all litigants in this state”. Placek, supra, 405 Mich 650. The various defendants involved in this appeal argue that the bar against the admission of evidence of a plaintiff’s failure to use a seat belt is inconsistent with the doctrine of comparative negligence which dictates that each party to an accident is to bear damages commensurate with his or her degree of fault. Defendants point to cases from other jurisdictions which have allowed the trier of fact to consider seat-belt non-use on the issues of comparative negligence or the failure to mitigate damages. Defendants further argue that it would be inappropriate for us to defer to the Legislature in this matter.
The Supreme Court’s preference for pure comparative negligence was based on the Court’s view that justice is served by a doctrine which "hold[s] a person fully responsible for his or her acts and to the full extent to which they cause injury”. Placek, supra, 405 Mich 661. The Supreme Court’s opinion does not specifically address whether, under the doctrine, plaintiff’s negligence should be compared with defendant’s negligence in terms of the degree to which the parties’ negligence caused the accident or the degree to which the parties’ negligence caused or increased the severity of plaintiff’s injury. Certain portions of the opinion focus on plaintiff’s causation of his or her injuries and damages while other statements by the Court could be interpreted as focusing on "blame” for the accident. The distinction raised is important because rarely does the failure to use a seat belt actually contribute to the occurrence of the accident; rather, the "seat-belt defense” primarily arises where, as in the instant cases, plaintiffs’ failure to use a seat belt may have increased the severity of their injuries.
Defendants’ interpretation of comparative negligence as a doctrine which focuses on contribution to injury does not compel the conclusion that evidence of the plaintiffs’ respective failures to use a seat belt should be admissible. Under any interpretation of comparative negligence, no matter how, or to what, negligence is compared, the trier of fact must first find that the plaintiff was negligent. Negligence will not be found merely upon proof of an act which causes injury; a finding of negligence can be sustained only where the person, in committing the injury-producing act, breached some legally cognizable duty. Butrick v Snyder, 236 Mich 300, 306; 210 NW 311 (1926); Sowels v Laborers’ International Union of North America, 112 Mich App 616, 620; 317 NW2d 195 (1981). Thus, even if we subscribe to defendants’ contention that plaintiffs’ failure to wear a seat belt proximately caused their injuries, we are still left with the question of whether plaintiffs’ failure to wear a seat belt was a breach of some legal duty.
As this Court noted in Romankewiz, supra, p 124, at present, no statute mandates seat-belt use, thus precluding defendants from arguing that failure to use a seat belt is negligence per se. Defendants are consequently relegated to arguing that plaintiffs’ failure to wear a seat belt was a breach of plaintiffs’ duty to use ordinary care.
As we discussed in Romankewiz, supra, pp 125-126, the problem inherent in this thesis is identifying when plaintiffs’ failure to "buckle up” became a breach of their duty to use ordinary care. Obviously, the breach had to have occurred prior to the accident. To assert that plaintiffs had a duty to use ordinary care by "buckling up” at some point between entering their cars and immediately prior to the occurrence of the accidents imputes to plaintiffs the anticipation that an accident would occur. But, as a matter of law, plaintiffs had the right to assume that other drivers would obey traffic laws and use reasonable care. "Contributory negligence cannot be imputed to a plaintiff for failure to anticipate negligent acts of a defendant.” Koehler v Detroit Edison Co, 383 Mich 224, 233; 174 NW2d 827 (1970).
The common law fails to provide a basis for concluding that plaintiffs’ failure to wear seat belts was a breach of their duty to use ordinary care. Moreover, imposition of such a duty is an act more appropriately performed by the Legislature. The Legislature is better equipped to consider the various issues raised by a law mandating seat-belt use, e.g., the majority of the population’s disinclination to wearing seat belts, the contradictory studies regarding the efficacy of seat belts as safety devices, and the collateral problems associated with other types of safety devices. I reiterate the conclusion of the Court of Appeals Judge Fitzgerald, in Romankewiz, supra, p 127, "In summary, it is for the Legislature, which in its wisdom has prescribed seat belts, to prescribe any required use thereof if it chooses.”
We conclude that under our system of compara tive negligence, evidence of a plaintiff’s failure to use a seat belt is not admissible as evidence of plaintiff’s contributory negligence or of plaintiff’s failure to mitigate damages. The circuit court’s order in No. 67515 is affirmed. The circuit court’s order in No. 68924 is vacated, with instructions to the court to grant plaintiffs’ motion to strike.
Placek v Sterling Heights, 405 Mich 638; 275 NW2d 511 (1979), reh den 406 Mich 1119 (1979).
Our decision in Placek, 52 Mich App 619, was not appealed to the Supreme Court. Instead, the case was remanded for a new trial, and it is that retrial which was the subject of the Supreme Court’s opinion adopting comparative negligence. Apparently on retrial, the plaintiff was not questioned about her non-use of a seat belt; consequently, the Supreme Court had no occasion to consider the issue raised in the instant appeal.
Our research discloses that the majority of comparative negligence jurisdictions have rejected the "seat-belt defense”. In particular, we note Taplin v Clark, 6 Kan App 2d 66; 626 P2d 1198 (1981), decided under analogous chronological circumstances. In Hampton v State Highway Comm, 209 Kan 565; 498 P2d 236 (1972), the Kansas Supreme Court, notwithstanding the existence of a safety belt general installation requirement statute, held that there was no statutory or common-law duty requiring use of a seat belt and that evidence of non-use was inadmissible for purposes of contributory negligence or mitigation of damages. Subsequent to Hampton, the Kansas legislature statutorily adopted a system of comparative negligence. The court of appeals in Taplin, supra, concluded that comparative negligence did not change the basic duties required of drivers and passengers and, since the legislature still had not imposed a duty to use seat belts, rejected the argument that under a system of comparative negligence the seat-belt defense could be asserted either to reduce percentage of fault or to mitigate damages.
The aforementioned distinction was addressed in Melesko v Riley, 32 Conn Supp 89; 339 A2d 479 (1975), where the Connecticut Superior Court refused to find that the adoption of comparative negligence by statute changed the rule that an act or omission which merely increased or added to the extent of the loss or injury, without contributing to the happening of the event, does not constitute contributory negligence. Contra, Bentzler v Braun, 34 Wis 2d 362; 149 NW2d 626 (1967).
In my opinion, justice is best served by comparing the parties’ negligent contribution to the accident. For example, suppose that evidence of non-use of a seat belt were admissible on the issue of contributory negligence. Suppose further a defendant who negligently runs through a red light and hits a car driven by an unbelted plaintiff, knocking the plaintiff through the windshield and onto the street. Our hypothetical defendant introduces evidence at trial that had plaintiff been wearing a seat belt, he or she would have suffered 80% less injury. Under a theory which compares negligence in terms of contribution to injury, plaintiff’s damage recovery would be reduced by 80%, a result which is to as patently unfair.
Pending before the Michigan Legislature is HB 4203 which requires the use of seat belts. Section 710 E(3) of this proposed bill provides that failure to wear a seat belt "shall not be considered evidence of negligence nor limit liability of an insurer nor diminish recovery for damages arising out of the ownership, maintenance, or operation of a motor vehicle”. Since we have no way of foreseeing what action the Legislature will finally take with respect to this proposed legislation, the only weight which we assign to the pending bill is that it supports our view that it would be premature for this Court to impose, at the present time, a duty to wear seat belts on automobile drivers and passengers. | [
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On Rehearing
Before: Danhof, C.J., and Allen and M. E. Dodge, JJ.
Per Curiam.
Upon consideration of plaintiffs application for rehearing, we reverse our previous opinion to the extent that it ordered a remand to the trial court to determine whether plaintiff acted with reasonable speed to mitigate its damages. In light of Willis v Ed Hudson Towing, Inc, 109 Mich App 344; 311 NW2d 776 (1981), and Allen v Morris Building Co, 360 Mich 214; 103 NW2d 491 (1960), plaintiff was under no duty to mitigate its damages. This case is remanded to the trial court for entry of an order fixing plaintiff’s damages at the market value of the equipment on the date of conversion minus the net proceeds realized by plaintiff in the post-conversion sale of the equipment, plus interest and any recoverable costs. | [
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Per Curiam.
Plaintiff Numan Abdul-Mujeeb was arrested September 6, 1979, at the Sears Roebuck and Co. store in Highland Park. The complaint against Sears and several of its employees alleges false arrest, assault and battery, false imprisonment and malicious prosecution. Prior to trial the complaint was voluntarily dismissed as to all employees except James Edward Hunt, a security officer. Sears and Hunt were consequently the defendants at trial. At the trial in March, 1985, the jury awarded plaintiff a verdict for $75,000 on the assault and battery charge and $200,000 for malicious prosecution, which was trebled pursuant to statute. Plaintiffs wife was awarded $5,000 for loss of consortium, resulting in a total judgment of $680,000 against the defendants. Defendants appeal the judgment for malicious prosecution. We reverse and remand for new trial.
The facts on which this action is based are that on September 6, 1979, the plaintiff went to the Highland Park Sears store to pick up two pairs of jeans that he had previously ordered from the catalog department. He paid for the jeans with a personal check for which he received a receipt on which was printed his name and address, the catalog numbers, the price and description of the jeans and a notation that the jeans had been paid for by check. The plaintiff then asked where he could try on the jeans and was referred to the fitting room in the men’s department upstairs on the first floor. He went to that room and tried on the jeans. When he exited he was observed by Katrina Griffin, a security guard, stuffing the jeans into a bag. Griffin, after observing defendant pass three cash registers, approached plaintiff and asked if he had a receipt for the merchandise. At that point there is a dichotomy in the testimony. The guard’s version is that plaintiff replied, "Forget it baby,” and ran down the escalator. The plaintiff’s version is. that the guard merely said, "Hi,” and asked him what he had in the bag to which he replied, "I have my pants.” Griffin called for assistance and several guards, including defendant Hunt, responded. They found plaintiff in a restroom in the basement. According to Hunt, the plaintiff was asked if they could look into the bag and if he had a receipt for the merchandise. Plaintiff did not respond so they asked him to accompany them to the security office. The plaintiff testified that he was asked what he had in the bag. He replied, "I have my pants,” and he asked to go the personnel office. He was escorted to the security office. There was an altercation at the door of the office in which plaintiff grabbed the sides of the door and refused to enter. The guards’ testimony was that they released his hands and then escorted plaintiff into the office and he was seated in a chair. An attempt was made to identify him. He refused to answer. The guards again asked for a receipt and plaintiff again refused to respond. Plaintiff claims that he was thrown to the floor by Hunt and handcuffed. He also claims to have given his name and driver’s license.
The Highland Park police were called and plaintiff was taken to the police department where he talked to a Detective Jackson. He did not tell Jackson about the receipt. He was booked and held overnight. A friend and plaintiff’s wife posted bond the next morning and obtained an attorney to whom plaintiff displayed the receipt admittedly for the first time after he received it. The receipt was also produced at the district court hearing and the charge was dismissed.
Two issues are raised on appeal. The first is that the trial court erred in refusing to grant a motion for a directed verdict for the defense. The basis for the motion was that the plaintiff had failed to prove that the defendant lacked probable cause to commence the prior action, which is an element of the tort of malicious prosecution. The second issue on appeal is that the trial court erred in failing to give requested instructions on probable cause and malice to the jury.
We will address the two issues in that sequence.
The first issue revolves around the complaint filed on behalf of Sears by Katrina Griffin, a security guard.
The defendants set forth a series of facts which indicated suspicious circumstances that occurred at the store which they maintain gave probable cause for the plaintiff’s arrest at the commencement of the proceedings.
The plaintiff maintains that the proceedings in the 30th District Court were commenced by a complaint signed by Sears security guard Katrina Griffin, which stated in part as follows:
[That Numan Abdul-Mujeeb did] disorderly engage in fraudulent scheme, device or trick to obtain valuable articles belonging to another. To-wit: In that the defendant did remove from display several pairs of mens slacks, placed same in a paper bag and attempted to leave the premises without paying for same.
It is plaintiff’s position that Griffin swore to and signed the complaint which was false as she had never seen the plaintiff remove the pants from the display. He then rationalizes that this fact establishes lack of probable cause for the prosecution as a matter of law. LaLone v Rashid, 34 Mich App 193; 191 NW2d 98 (1971), lv den 386 Mich 756 (1971).
The defense replies that Katrina Griffin’s written report to the Highland Park police was accurate and therefore probable cause was established.
The defense relies on the rule that, if the prosecuting witness has in good faith stated all the material facts to the prosecutor or his or her own attorney and acted on the advice received, the proof of such action is deemed to satisfy the requirement for probable cause as a defense. Swaney v John Schlaff Creamery Co, 212 Mich 567, 569-570; 180 NW 599 (1920); Pauley v Hall, 124 Mich App 255, 265; 335 NW2d 197 (1983), lv den 418 Mich 870 (1983).
When the defendants made the motion for directed verdict, the probable cause issue was unclear. The court was required to view the evidence in the light most favorable to the plaintiff. If viewed in that light, reasonable minds might differ as to whether probable cause existed for plaintiffs arrest. The court was bound to present the matter to the jury and it did not err by so doing. Taylor v Wyeth Laboratories, Inc, 139 Mich App 389; 362 NW2d 293 (1984), lv den 423 Mich 852 (1985); Hall v Citizens Ins Co of America, 141 Mich App 676; 368 NW2d 250 (1985).
As to the second issue on appeal, namely, that the court erred in refusing to give the requested instructions on probable cause and malice as elements of the tort of malicious prosecution, we find it mandatory that an instruction be given on probable cause and malice which are elements of the tort.
The elements of the tort of malicious prosecution by bringing a criminal prosecution are listed in SJI2d 117.01 as follows:
a. a prosecution caused or continued by one person against another
b. termination of the proceeding in favor of the person who was prosecuted
c. absence of probable cause for initiating or continuing the proceeding
d. initiating or continuing the proceeding with malice or a primary purpose other than that of bringing the offender to justice.
The defense request was for an instruction on probable cause as follows:
I charge you ladies and gentlemen of the jury, that probable cause means a reasonable ground of suspicion supported by circumstances which would satisfy a cautious man.
The defense supported such proposed instruction by citing Hammitt v Straley, 338 Mich 587; 61 NW2d 641 (1953).
The requested instruction did not correctly define the element of probable cause as it paraphrases the Hammitt definition and truncated it by failing to tell the jury what a cautious man should be satisfied about.
The correct definition was discussed and quoted by a panel of this Court in Koski v Vohs, 137 Mich App 491, 514; 358 NW2d 620 (1984), lv gtd 422 Mich 936 (1985). That panel stated:
In Michigan, probable cause in malicious prosecution is defined as follows:
"To constitute probable cause, there must be such reasonable ground of suspicion, supported by circumstances sufficiently strong in themselves to warrant an ordinarily cautious man in the belief that the person arrested is guilty of the offense charged.”
Whether or not probable cause exists is measured as of the time prosecution is commenced.
The judge was within his discretion to refuse to give the requested instructions as they were incomplete and confusing.
However, we find upon reviewing the instructions as a whole that the jury was without guidance as to the definition of probable cause and had scant explanation of the meaning of malice.
The lack of these instructions may well have affected the outcome of the trial. If a jury arrives at a verdict because it was improperly instructed, or not instructed at all, on an essential element of a cause of action, the judgment must be reversed. Getman v Mathews, 125 Mich App 245, 248; 335 NW2d 671 (1983); Richman v City of Berkley, 84 Mich App 258, 264; 269 NW2d 555 (1978), lv den 405 Mich 804 (1979); Rouse v Gross, 357 Mich 475; 98 NW2d 562 (1959).
Upon remand it should be noted that treble damages under MCL 600.2907; MSA 27A.2907 are not automatic, but only apply as to actual damages when the jury is instructed not to find any punitive damages. If the plaintiff elects to have the jury find punitive damages, he must do so prior to trial. LaLone v Rashid, supra.
Reversed and remanded for new trial. | [
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Per Curiam.
Plaintiff appeals as of right from a Kalamazoo Circuit Court order granting defendant’s motion for accelerated judgment.
Plaintiff’s complaint alleges that in October, 1978, he and defendant entered into an agreement to purchase a travel agency and that the business was operated as a partnership until July 29, 1981. In the spring of 1981, plaintiff rejected defendant’s offer to purchase plaintiff’s interest in the partnership. Plaintiff alleged that in August, 1981, defendant, without plaintiff’s knowledge, took exclusive control and possession of the business and the partnership’s assets. Plaintiff claimed that defendant used the profits for her use and benefit to the exclusion of plaintiff and denied plaintiff any participation in the management of the business. In Count i, plaintiff sought an accounting. In Count ii, plaintiff sought damages for defendant’s conversion of partnership assets.
Defendant brought a motion for accelerated judgment pursuant to GCR 1963, 116.1(3), now MCR 2.116(C)(5), arguing that plaintiff lacked the legal capacity to sue since no partnership certificate had been filed as required by MCL 449.101; MSA 20.111. Defendant’s motion was granted on June 7, 1983. On March 17, 1984, upon plaintiff’s motion for rehearing, the trial court affirmed its decision granting defendant’s motion for accelerated judgment.
MCL 449.101; MSA 20.111 (hereinafter referred to as § 1) provides in part:
No two or more persons shall hereafter be engaged in carrying on any business as copartners unless such persons shall first make and file with the county clerk of the county in which such copartnership business is or shall be located, a certificate in writing, to be signed by each, and verified by the affidavit of one of the members of said copartnership, setting forth the full name of each and every person composing the said copartnership, and the residence of each, the name and style of the firm, and the length of time for which it is to continue, if limited by the partnership contract, and also the locality of their place of business; which certificate shall be kept in the office of the said county clerk, as a public document, and open to the inspection of any person.
MCL 449.106; MSA 20.118 (hereinafter referred to as § 6) renders noncompliance with § 1 a misdemeanor and also provides:
. . . [t]he fact that a penalty is provided herein for noncompliance with the provisions of this act shall not be construed to avoid contracts, but any copartnership failing to file the certificate or renewal certificate required by this act shall be prohibited from bringing any suit, action or proceeding in any of the courts of this state until after full compliance with the provisions of this act.
The purpose of both statutes is to inform the public with whom it is dealing in order to prevent imposition and fraud. Maurer v Greening Nursery Co, 199 Mich 522; 165 NW 861 (1917).
We agree with the trial court that as a general rule contracts in violation of statutes enacted to protect the public against imposition or fraud are void. See e.g. Cashin v Pliter, 168 Mich 386; 134 NW 482 (1912). The general rule, however, is not applicable in this case. Section 6 expressly states that noncompliance with § 1 does not render contracts void. Pursuant to § 6, the contracts are merely unenforceable and remain unenforceable until § 1 has been complied with.
Furthermore, as we construe the statute, § 6 does not bar suit on the underlying partnership agreement. The rules of statutory construction require that we give effect to the intent of the Legislature. Words in the statute must be given their ordinary meanings. Where the language of the statute is clear, it is assumed that the Legislature intended the plainly expressed meaning and the statute must be enforced as written. Bailey v DAIIE, 143 Mich App 223, 225; 371 NW2d 917 (1985), lv den 424 Mich 867 (1986).
The language of §6 is clear and unambiguous. The statute states that any copartnership which fails to file a certificate is prohibited from bringing suit until § 1 is complied with. Section 6 does not preclude a partner in the noncomplying partnership from bringing an action against another partner. We are persuaded by this Court’s reasoning in Community Associates v Meridian Twp, 110 Mich App 807, 810-811; 314 NW2d 490 (1981):
The incapacity imposed by [§6] for noncompliance is a penalty. A penalty created by statute cannot be extended by implication. Davidow v Wadsworth Manufacturing Co, 211 Mich 90, 94; 178 NW 776 (1920). Strictly construed, the incapacity provision applies only to courts and not to administrative agencies, including the Tax Tribunal.
Likewise, the incapacity provision, when strictly construed, applies only to copartnerships and not to actions by one partner against another. In this case, plaintiff is not acting as an agent of the partnership, but brings this action to enforce his individual rights under the Uniform Partnership Act, MCL 449.1 et seq.; MSA 20.1 et seq. We hold that noncompliance with the filing requirements of § 1 does not bar a partner from enforcing his individual rights against another partner.
The trial court also held that since the partner ship involved a "silent partner,” the agreement was against public policy and could not be enforced by the courts. In so holding, the trial court relied on Rigo v DeGutis, 341 Mich 126, 129; 67 NW2d 224 (1954), wherein this Court stated:
That a partnership, to operate a liquor business with a silent partner, is against the public policy of the State, and unenforceable, is clearly suggested in Beemer v Hughes, 179 Mich 110 [146 NW 198 (1914)].
The instant case, however, does not involve a liquor business and, thus, the rule of Rigo is not applicable.
The trial court held that plaintiffs suit is barred by the "clean hands” doctrine. A suit for an accounting invokes the powers of a court of equity. Bondy v Davis, 40 Mich App 153, 159; 198 NW2d 418 (1972). "[O]ne who seeks the aid of equity must come in with clean hands.” Stachnik v Winkel, 394 Mich 375, 382; 230 NW2d 529 (1975). Any wilful act concerning the cause of action which transgresses equitable standards of conduct is sufficient cause for the invocation of the clean hands doctrine. Id., p 386.
The trial court did not expressly state why it applied the clean hands doctrine. We surmise from the opinion, however, that the trial court concluded that plaintiff lacked "clean hands” because the partnership certificate had not been filed. We disagree. Even if we characterize the failure to file the partnership certificate as a wilful act, we cannot say that the noncompliance with § 1 is misconduct or bad faith relative to the matter in which he seeks relief. There is no showing of bad faith or improper behavior on plaintiffs part relative to the partnership agreement which would close the doors of equity to plaintiffs right to an accounting.
The trial court also held that an individual partner has no right to an accounting. We disagree. MCL 449.22; MSA 20.22 provides the individual partners with the right to a formal accounting. In Bondy, supra, pp 158-159, this Court stated:
Accounting in equity is an appropriate remedy as between partners, where the suit involves a partnership relation or interest, or partnership property, especially if fraud or concealment is charged, or the partnership affairs or assets are in a complicated condition. In a proper case, suit may be brought by a partner for an accounting as to the firm’s assets or business.
The trial court’s order for accelerated judgment is reversed.
Reversed and remanded for further proceedings. | [
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E. E. Borradaile, J.
Defendant was charged with first-degree murder and felony-firearm. Following a jury trial during September of 1984 in Detroit Recorder’s Court, defendant was convicted of voluntary manslaughter and was found not guilty of the felony-firearm count. He was sentenced to a term of ten to fifteen years and appeals as of right.
Defendant raises a number of questions: whether the preliminary examination testimony was insufficient to bind the defendant over for trial on the charge of first-degree murder, whether the trial court should have instructed the jury on the law pertaining to accidental killing in the absence of a request, whether there was inadequate representation by counsel at trial; whether a struck jury method of selecting the jury was used, and whether the sentencing judge ignored the jury verdict of acquittal of first-degree murder. We reverse and remand for new trial on the issue of the instruction.
i
Defendant claims that there was no evidence at the preliminary examination which would allow a rational trier of fact to find premeditation and deliberation, elements essential to a conviction of first-degree murder. Only two cases cited by appellate counsel in support of the issue are preliminary examination cases, those being People v Doss, 406 Mich 90; 276 NW2d 9 (1979), and People v Oster, 67 Mich App 490; 241 NW2d 260 (1976). All other cases cited are trial issue cases and not applicable to the question raised in this particular case.
At the preliminary examination, Evelyn Waiters, sister of the decedent, John Taylor, testified that she was in her back yard watering her garden when she saw her brother and defendant standing at the side of the house, arguing loudly. Taylor’s girlfriend, Brenda Thomas, was outside the gate. Waiters went to talk to Thomas and found out that defendant was her ex-boyfriend. Defendant had a gun in his hand, but Waiters did not know where it came from. At one point defendant threatened to shoot her if she did not go in the house,
Waiters further testified that, as she walked into the house, she heard what she thought was defendant slapping Taylor in the head with the gun. She turned around and saw Taylor on the ground, holding his head. Waiters called the police; but, before she got off the phone, she heard what sounded like a gunshot and then heard a car as it sped off. She saw her brother come in the side door and fall. On cross-examination, she testified that her brother did not have a gun in the house and she did not know whether he had advanced upon or threatened defendant prior to the shooting. She said that there had been various garden tools on the side of the house. On redirect examination, she testified that she never saw a weapon in her brother’s hand and that there were no tools in the area where her brother had been standing.
The next witness, Melissa Woods, a neighbor of Waiters, testified that she heard an argument outside and went to her porch to see what was happening. Two men were arguing across the street at Waiters’s residence, one outside the fence and one inside the fence. She had seen the man inside the fence, but did not know his name. She identified defendant as the man standing outside the fence. She saw defendant reach over and hit the man inside the fence, who fell. Defendant turned as if to walk away, reached into his shorts, pulled out a gun, and fired at the other man from a distance of about four or five feet. She did not recall seeing anything in the decedent’s hands. On cross-examination, she testified that she had never seen the defendant before the night of the incident, that the incident took place about thirty to fifty feet from where she had been standing, and that she saw defendant’s face only briefly during the argument, which lasted approximately twenty minutes. She saw no tools in the yard and could not hear what defendant was saying because he was speaking very softly and Taylor was talking louder.
The prosecutor moved to bind the defendant over on first-degree, murder and felony-firearm. Defense counsel objected to the bindover on the murder charge, arguing that the testimony had shown that there was a loud, angry argument between defendant and Taylor, which demonstrated "hot blood” on the part of defendant which would mitigate first-degree murder to manslaughter.
The examining magistrate stated:
The Court finds, from the testimony offered today, that there was time for him to reflect. The one witness testified that he threatened her with a gun and told her to go in the house and that she saw her brother on the ground after hearing a noise. And the other witness testified that she also saw the victim being knocked to the ground. And that was enough time to reflect and to walk away, but instead he used the gun.
And the Court finds from the testimony offered today, that the People have sustained their burden on both counts. And the Court finds that the People have proven each and every element of both the counts. And the Court finds that the crime, murder i, feloniously deliberately with malice of forethought and with premeditation to kill one, John Taylor, contrary to Section 750.316 MCLA [MSA 28.548], and Count n, did then and there carry or have possession of a firearm in the commission or attempt to commit a felony to wit: Murder First Degree contrary to MCLA 750.277(d) [MSA 28.488(d)].
The Court finds that both of these Counts were committed in the City of Detroit. And from the testimony offered today, the Court finds there is probable cause to believe the Defendant committed both counts. The Defendant, therefore, shall be bound over for trial on the Counts contained in the complaint and warrant to Recorder’s Court.
The standard for review of a magistrate’s judgment in binding a case over for trial is set forth in People v Grihm, 148 Mich App 285, 289-290; 383 NW2d 631 (1986):
It is well established that a reviewing court may not properly substitute its judgement for that of the magistrate, but may reverse only if it appears on the record that there has been an abuse of discretion. People v Talley, 410 Mich 378, 385; 301 NW2d 809 (1981). People v Shipp, 141 Mich App 610, 612; 367 NW2d 430 (1985). However, the "judgment” of the magistrate in this context is directed to findings of fact. Talley, supra, p 386. It is the duty of the magistrate to bind the defendant over for trial if it appears at the conclusion of the preliminary examination that a crime has been committed and there is probable cause to believe that the defendant committed it. MCL 766.13; MSA 28.931. See also People v Doss, 406 Mich 90, 100; 276 NW2d 9 (1979). If evidence conflicts or raises a reasonable doubt of a defendant’s guilt, such questions should be left for the jury upon trial. Doss, supra, p 103; Shipp, supra, p 613.
Premeditation and deliberation require that there be a thought process undisturbed by hot blood and, although the minimum time necessary to exercise this process is incapable of exact determination, the interval between initial thought and ultimate action should be long enough to afford a reasonable person time to subject the nature of the response to a second look. People v Morrin, 31 Mich App 301, 329-330; 187 NW2d 434 (1971), lv den 385 Mich 775 (1971). In People v Tilley, 405 Mich 38, 44-45; 273 NW2d 471 (1979), the Supreme Court noted that there was a sufficient interval of time to reflect where a codefendant’s resistance led to an argument and scuffle during which defendant obtained possession of a police officer’s gun. In that case, sufficient time for premeditation and deliberation was found, based on evidence revealing that the defendants were in control of the situation, that there was a delay of one second to one minute between securing possession of the gun and firing, and that Tilley fired a second volley of gunshots at a retreating officer.
The magistrate’s finding is supported by testimony at the preliminary examination. There was testimony that the defendant started to walk away and then turned around and shot Taylor, sufficient evidence to show the element of premeditation and deliberation to support the magistrate’s bindover. While the time involved was only a few seconds, that is still sufficient time for the "second look” required by Morrin, supra. While the testimony may raise a strong possibility that there was provocation, which would negate the premeditation and deliberation requirement, the fact that evidence conflicts or raises a reasonable doubt as to a defendant’s guilt is an issue left for the jury. Doss, supra.
The trial judge properly denied defendant’s pretrial motion to quash.
ii
The second question raised by defendant is that the trial court committed reversible error by fail ing sua sponte to instruct the jury with respect to the law applicable to defendant’s theory that the killing was accidental. A review of the jury instructions shows that the trial court instructed the jury on first-degree and second-degree murder, voluntary and involuntary manslaughter, and careless and negligent use of a firearm which results in death, but gave no instructions on the theories of the parties or defenses. In closing argument, defense counsel argued that the jury should not convict defendant as charged, but rather of either manslaughter or perhaps reckless discharge of a firearm. He did not request an instruction on self-defense or accident. Defendant has also raised a question as to inadequate representation of counsel which we will discuss later.
A review of some of the testimony is necessary for us to answer this question. Evelyn Waiters, decedent’s sister who had testified at the preliminary examination, indicated that her brother did not keep a gun in the house nor carry a gun and that she saw nothing in his hands during the incident. She admitted on cross-examination that she said at the preliminary examination she didn’t know where the gun in defendant’s hand had come from, though she testified at trial that defendant pulled the gun from under his T-shirt.
Melissa Woods, who also testified at the preliminary examination, testified that defendant and the decedent engaged in an angry, violent argument lasting five to ten minutes before the shooting. She saw no physical contact between the two before defendant knocked decedent down and fired one shot at him. Other witnesses testified about the argument and hearing shots.
A pathologist testified that she conducted an autopsy on Taylor and determined that the cause of death was a gunshot wound to the neck. She further testified that the absence of gunpowder traces embedded under the superficial layer of skin around the gunshot wound tended to indicate that the muzzle-to-target distance was greater than eighteen inches. She acknowledged that her testimony was based upon a visual test and that eighteen inches was only an approximation.
Brenda Thomas had testified that she had dated the decedent Taylor occasionally and that defendant was her "ex-man.” On the day in question, she drove to Taylor’s house. He was expecting her. She had seen defendant a few times since their mutual and amicable breakup. She knew defendant would be at Taylor’s house because Taylor had told her he wanted to see defendant. She was going to Taylor’s house to pick up a .32-caliber handgun which she had left with him a couple of nights before the shooting. When she arrived, she began talking to Taylor on the side of his house from outside the gate. Defendant arrived ten to fifteen minutes later. Thomas at that point had not yet asked for the gun back. She further testified that Taylor asked defendant to come inside the gate and told Thomas to remain outside. The two men went inside the gate and started talking. Thomas could not hear what they were saying, but she heard defendant say that he did not care what Taylor and Thomas did together. She claimed that the men did not speak in loud voices.
Defendant and Taylor began tussling and arguing, defendant taking out of Taylor’s back pocket a gun which Thomas said looked like hers. Defendant had the gun pointed down at his side.
According to Thomas, defendant came toward her, pointing his finger at her and accusing her of getting him involved in the altercation. She said that Taylor came behind defendant and hit him in his neck, back, or shoulder with garden shears or grass clippers. Taylor had nothing in his hands before defendant arrived. The gun was in defendant’s right hand when he was hit, and he fell into the fence. The two men began wrestling again, but no punches were thrown. While they were wrestling, the gun went off. Thomas said that she was about seven feet away at this time. She was not sure if Taylor had the grass clippers in his hand during the fight. The two men were standing and facing each other when the gun went off, but she could not remember in which of defendant’s hands he held the gun. Defendant was bent over Taylor a bit when the gun went off. The gun was about five feet off the ground, pointed up. She did not see defendant pull the trigger, nor did she see defendant hit Taylor or Taylor fall down before the gun went off. After the shot was fired, Taylor fell down. Defendant looked at Taylor and said, "Damn, what have I got into now?” and left the scene.
Defendant testified that he had gone out with Brenda Thomas for about three years until the relationship ended amicably in March of 1982. He had met Taylor about twenty-one years previously through Taylor’s brother. He had not seen Taylor recently because Taylor had left Detroit and returned only in early 1982, but their relationship was friendly in spite of the fact that Taylor and Thomas were dating. Defendant further said that Taylor had asked him to come to the house on the day in question and that Taylor seemed calm when they spoke.
Defendant testified that Taylor appeared calm and said nothing when defendant walked up to him and asked, "What’s happening?”. Taylor asked defendant to come to the side of the house to talk about Thomas. Defendant claimed that Taylor told Thomas to stay where she was and shut up and that an argument began to develop concerning the fact that Thomas was using defendant’s car. The two men argued loudly, using profanity.
Defendant claimed that he saw a gun in Taylor’s pocket when they started up the walk and became concerned about it when he realized that Taylor was very angry about the relationship between defendant and Thomas. He got close enough to Taylor to prevent him from getting to the gun. He said that Taylor stuck his finger in defendant’s face. When defendant told him to stop, Taylor reached for the gun, but defendant grabbed the gun first and the two struggled for it momentarily.' Defendant snatched the gun and pushed Taylor, believing that Taylor was going to shoot him. Defendant started to leave but stopped to reprimand Thomas for bringing him there. Thomas denied any responsibility for what had happened and told defendant the gun belonged to her. Defendant claimed that Taylor then hit him twice from behind with what defendant thought was a garden tool. Defendant said that he turned around with the gun still in his hand, started to fall into Taylor, who grabbed him, and they fell against the. side of the house, wrestling. He said that the gun had been in his right hand, but at some point he switched hands so he could defend himself with his right hand. He said that Taylor was still trying to get the gun and they began to struggle for it. Defendant’s right hand was grabbing Taylor’s shirt, and Taylor had his hand on defendant’s left hand. During the scuffle, Taylor slipped. As defendant was pushing him, Taylor pushed back and the gun went off. Defendant said that he never intended to shoot Taylor.
Defendant claimed that he did not know Taylor had been shot and that, when Taylor grabbed his heart when falling to the ground, he thought Taylor was having a heart attack. Defendant also said that he ran as a reaction to a man’s being shot, and he was afraid. On cross-examination, he said that he did not know that Thomas would be at Taylor’s home. He also testified that he recognized the gun that Taylor had as the .32-caliber Colt revolver which had belonged to Thomas.
The court instructed on the charges of first-degree and second-degree murder and the lesser included offenses. After instruction, the jury requested a distinction between voluntary and involuntary manslaughter and received further instruction on that point from the court. After about ZVz hours deliberation the first day, the jury reassembled the following morning and, after four more hours deliberation, found defendant guilty of voluntary manslaughter and not guilty of felony-firearm.
The prosecutor argues on appeal that this Court should find that a request must be made before a trial judge has a duty to instruct the jury on a necessary defense. MCL 768.29; MSA 28.1052 provides:
It shall be the duty of the judge to control all proceedings during the trial, and to limit the introduction of evidence and the argument of counsel to relevant and material matters, with a view to the expeditious and effective ascertainment of the truth regarding the matters involved. The court shall instruct the jury as to the law applicable to the case and in his charge make such comment on the evidence, the testimony and character of any witnesses, as in his opinion the interest of justice may require. The failure of the court to instruct on any point of law shall not be ground for setting aside the verdict of the jury unless such instruction is requested by the accused.
GCR 516.2 provided that "[n]o party may assign as error the giving or failure to give an instruction unless he objects thereto before the jury retires to consider the verdict, stating specifically the matter to which he objects and the grounds of his objection.” This case was tried before the effective date of MCR 2.516(B)(3), which provides that "[a]fter the arguments are completed, the court shall instruct the jury on the applicable law, the issues presented by the case, and, if a party requests as provided in subrule (A)(2), that party’s theory of the case.” In People v Trammell, 70 Mich App 351, 354; 247 NW2d 311 (1976), the Court said:
Thus, when no objection is raised to alleged errors in jury instructions, the verdict will not be set aside on the basis of those errors unless they have resulted in a miscarriage of justice, People v Szymarek, 57 Mich App 354, 356-357; 225 NW2d 765 (1975), People v Wheat, 55 Mich App 559, 563; 223 NW2d 73 (1974).
It is quite clear in this case that defense counsel was concerned about the fact that his client was charged with first-degree murder and, as noted above, he argued in his final argument that the most the defendant could be guilty of would be manslaughter or reckless discharge of a firearm resulting in death. It is a very difficult question for a trial judge to determine if an instruction must be given on a defense which apparently comes out in testimony when trial counsel has not raised the question. It would appear from People v Morris, 99 Mich App 98; 297 NW2d 623 (1980), that a defendant is entitled to instruction with respect to the law of accident as a defense, even absent a request, only if the issue was central to defendant’s case. Morris discusses what "central to defendant’s case” means:
In the above-cited cases and others, it is readily apparent that defense counsel emphasized the particular defense theory at trial. For instance, in Ora Jones [395 Mich 379, 385; 236 NW2d 461 (1975)] it is noted that defense counsel asserted accident as a defense in both opening and closing statements. The same was true in People v Lester [406 Mich 252, 253-254, 277 NW2d 633 (1979)], and in People v Hoskins, 403 Mich 95, 99; 267 NW2d 417 (1978), where the opinion recites that, "[d]efense counsel advanced his theory of self-defense from his initial voir dire of and opening remarks to the jury through his closing argument”.
In contrast, the present defendant’s theory of defense was clearly and repeatedly stated to be one of diminished capacity. Defense counsel in both opening and closing arguments, and during discussions while trial was in progress, explicitly asserted that he was pursuing a defense of diminished capacity to intend to commit murder. Nowhere in the transcript did defense counsel proffer a defense based on accident. Through defense witnesses and throughout his arguments defense counsel focused upon defendant’s relationship with her husband and upon the psychological inability of defendant to form a plan to kill her husband. Defendant did testify that she picked up her husband’s pistol intending to frighten him and that the gun went off. She stated, "I guess I must have struck the trigger. I didn’t intend to do it though.” And in closing argument defense counsel asserted, "You’ve got to squeeze the trigger to go off. I’m not going to suggest to you that Hazel Morris didn’t have her hand on it and that it did not go off. It’s like — a sneeze or a cough, it happened.” Perhaps this testimony and these comments of counsel do describe an accident, but that does not mean that the theory of defense was one of accident. Rather, the entire record demonstrates a defense based upon the diminished capacity of the defendant. [99 Mich App 100-101.]
Commentary to CJI 7:1:01 to 7:1:05, p 7-17 states:
The word "accident” has no precise definition. Like the word "ignorance,” it contains several concepts, one of which may excuse while another may not excuse at all.
In the criminal law, accident appears to occur most commonly in one of two ways. Either the person does not volitionally commit the act, or he volitionally commits the act but is unaware of, and does not intend, the consequences.
In the first instance, there is no willed movement and the result which occurs is the effect of some outside force or of an occurrence not planned or intended to occur at all. Thus, where a gun is discharged because of coming into contact with a wall and not as a result of intending to pull the trigger, we call it accident. Similarly, if the finger of the person holding the gun were squeezed by some outside force so that it were forced to activate the trigger mechanism, it would be accidental as to that person. The same occurs if A, being bumped by B, knocks into C, forcing him over a cliff. In any of these instances enumerated there can be no criminal act because there is no volitional act. Such actions cannot be deterred and indicate that the actor did not have the requisite criminal mens rea. See Perkins, Criminal Law (2d ed), pp 749-750.
In this case, we do not face the question of whether the court failed to give a requested theory of the case, nor are we faced with the question of whether the court denied a request to give an instruction, because no request was made in this case either as to theory or as to the instruction on accident or, in the alternative, self-defense. People v Ora Jones, 395 Mich 379, 393; 236 NW2d 461 (1975), relative to failure to give one party’s theory while giving another party’s theory, is not at issue in this case. Nor are we faced with the question raised in People v Hoskins, 403 Mich 95; 267 NW2d 417 (1978), cited in Morris, supra, where the Court indicated that, if there is support from the evidence, defendant’s theory of the case must be given and a defendant need not testify to merit an instruction on self-defense.
The trial court in this case properly instructed the jury from CJI 16:2:01 on first-degree premeditated murder and on second-degree murder as a necessarily included lesser offense, stating:
Murder is the killing of one person by another with a certain mental intent. For murder, the defendant must have intended to kill, have intended to do great bodily harm or have wilfully and wantonly disregarded the strong and plain likelihood that death would result, and he must have done so under circumstances which did not justify, excuse, or lessen the crime.
Further, the trial judge, in giving the elements of second-degree murder, noted in the third element:
A killing is not murder if it is justified or excused. Neither is it murder if it occurs under circumstances which make the killing a lesser crime of manslaughter or some other lesser included offense.
In People v Trammell, supra, p 354, the Court referred to People v Neumann, 35 Mich App 193, 196; 192 NW2d 345 (1971), in saying that instructional error will not occasion a miscarriage of justice unless the incorrect instruction pertains to a basic and controlling issue in the case. In defense counsel’s opening statement in the instant case, he alluded to the fact that a very violent argument and a fight developed between the defendant and the decedent, that there was a struggle between the parties, and that as a consequence the gun was discharged, causing the fatal bullet wound in decedent’s neck. Defense counsel said:
I think you’ll agree when you’ve heard the proofs that, number one, that there was no premeditation, no deliberation, no intent to kill or injure the party; that, as a matter of fact, my client was in an effort to defend himself from an attack by the defendant, who himself had a weapon, and that’s how he died.
When defendant took the witness stand, he testified to a struggle, claiming that the decedent hit him on the head from behind with a garden tool and that during the ensuing struggle the gun discharged.
In 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 565, the authors comment on GCR 516:
While requested instructions serve important functions in assisting the court to formulate its charge, the judge’s power to instruct the jury is not limited to the mechanical acceptance or rejection of requested instructions. The court, of its own motion, may and should formulate instructions on issues in the case which were not covered by requests.
Consistent with People v Trammell, supra, and People v Guillett, 342 Mich 1; 69 NW2d 140 (1955), it is necessary to reverse if an important element is left out, even though defendant fails to request an instruction. Although there is a split in this Court as to whether there is a duty to instruct sua sponte on defendant’s theory of the case, see People v Seabrooks, 135 Mich App 442, 449; 354 NW2d 374 (1984), there is no split of authority as to the court properly instructing upon the law. Ora Jones, supra, p 394. In 75 Am Jur 2d, Trial, § 575, p 560, the authors say:
With respect to criminal cases, the rule has sometimes been stated to be that whether requested or not, it is the duty of the court to instruct the jury upon all questions of law arising therein, or under some statutes, upon all questions of law necessary for the information of the jury in giving their verdict, whereas under some statutes it has been only in felony cases the court is required to give the law applicable to the case irrespective of a request to do so.
Because we reverse the trial court on this issue and remand the case for a new trial, we give no opinion as to whether the accused is entitled to have the jury instructed both as to unintentional shooting and self-defense, but at least one or the other must be given.
in
Defendant next argues that he was denied effective assistance of counsel, raising a number of claims, including that: defense counsel failed to request instruction on the defenses of accident and self-defense (which we have already covered in part ii above); defense counsel committed a serious mistake by introducing evidence of defendant’s prior convictions for unlawful use of an automobile and attempted carrying of a concealed weapon, because the convictions were so old they could not have been introduced pursuant to MRE 609(b); defense counsel committed serious error by not objecting to and in fact utilizing the struck jury method of selecting a jury (which we will deal with below in part iv); and, finally, defense counsel committed a serious error by failing to object to the introduction of highly prejudicial hearsay testimony.
Our search of the record does not indicate that appellate counsel has complied with the requirements of People v Ginther, 390 Mich 436, 443; 212 NW2d 922 (1973), where the Supreme Court indicated that, if a defendant is convicted and the record does not factually support claims he wishes to urge on appeal, he must bring a motion for new trial to raise questions that will allow the trial judge to develop a record before he may appeal those matters. In People v Ford, 417 Mich 66, 112; 331 NW2d 878 (1982), the Supreme Court said:
In People v Ginther, 390 Mich 436, 443; 212 NW2d 922 (1973), this Court held that where a convicted person attacks the adequacy of the representation he received at trial, he must prove his claim. "To the extent his claim depends on facts not of record, it is incumbent on him to make a testimonial record at the trial court level in connection with a motion for a new trial which evidentially supports his claim and which excludes hypotheses consistent with the view that his trial lawyer represented him adequately.”
Inasmuch as this Court is satisfied that defendant has failed to comply with the Ginther rule, and because the matter is being sent back for new trial, it is unnecessary for this Court to deal with the issue. See Anno: Modern status of rules and standards in state courts as to adequacy of defense counsel’s representation of criminal client, 2 ALR4th 27, including a discussion of the Michigan rules in § 8(c) thereof, pp 128-131.
IV
Defendant also claims that a "struck jury” method was used to select a jury and that he is entitled to a reversal of his conviction because such a selection method violates GCR 1963, 511.6, now MCR 2.511(F). He argues that in People v Miller, 411 Mich 321; 307 NW2d 335 (1981), the Supreme Court held that the struck jury method of jury selection, or any system patterned thereafter, could not be used in the future and that automatic reversal is required, without a need for a demonstration of prejudice. Though this case has been reversed because of the court’s failure to instruct on defenses, we will consider this issue briefly so that it does not occur on retrial.
Review of the record shows that, during jury selection, defense counsel was the first to exercise a peremptory challenge. After he exercised his first challenge, and before a replacement juror had been seated, the trial judge asked him if he wished to exercise any more. He excused five more jurors. At that point, six more jurors were seated. Following continued voir dire, defense counsel peremptorily challenged another juror. The trial judge again asked him if he wished to excuse any more, and he challenged two more jurors. Defense counsel did not use his remaining challenges, and the attorneys agreed upon the composition of the jury.
GCR 1963, 511.5 provided in part:
After all challenges for cause are completed, the parties shall make or waive their peremptory challenges. First the plaintiff and then the defendant may exercise 1 or more peremptory challenges alternately until each party successively waives further peremptory challenges or all such challenges have been exercised. A juror peremptorily challenged is excused without cause.
GCR 1963, 511.6 provided:
After a challenge for cause is sustained or a peremptory challenge exercised, another juror shall be selected and examined before further challenges are made. Such jurors shall be subject to challenge as are other jurors.
The note accompanying MCR 2.511(E) indicates that the rule differs from GCR 1963, 511.5 in that the later provision says that peremptory challenges are to be made after all challenges for cause are completed, but indicates that if a juror is peremptorily challenged and a new one called from the panel and questioned, the parties should be able to challenge that juror for cause. Subrule (E)(3) also makes it clear that a pass is not counted as a challenge but does constitute a waiver of further challenge to the jury panel as then constituted.
People v Miller, supra, makes it quite clear that the "struck jury method” of choosing a jury is not to be used, but the Court notes:
A defendant is entitled to have the jury selected as provided by the rule. Where, as here, a selection procedure is challenged before the process begins, the failure to follow the procedure prescribed in the rule requires reversal. The "struck jury method” or any system patterned thereafter is disapproved and may not be used in the future. [411 Mich 326.]
Defendant claims that there was a lack of proper representation by his attorney in failing to object to the method used, but it is quite clear that, unlike People v Miller, supra, there was no objection to the method. It appears that the definition of struck jury as given by the various writers and discussed in People v Miller, supra, is not the same method as was used in the instant case. There is a possible conflict in GCR 1963, 511.5 and GCR 1963, 511.6 which continues in MCR 2.511(E)(3)(a) and 2.511(F), in that the rules permit first the plaintiff and then the defendant to exercise one or more peremptory challenges. That issue was not involved in Miller because the trial judge prior to trial had informed the attorneys that the struck jury method would be used, with challenges for cause to be exercised before there was a seating of the jury. MCR 2.511(F) requires seating of another juror after a challenge for cause is sustained or a peremptory challenge is exercised, and that requirement must be followed. See People v Lawless, 136 Mich App 628, 635-636; 357 NW2d 724 (1984), lv den 422 Mich 881 (1985). We also note that the court rule clearly provides that plaintiff shall be called on for exercise of a peremptory challenge and then defendant, in that order. It appears from a review of the record that such was not done in this case. The trial court is adjured to follow the rule explicitly in requiring the parties respectively to exercise peremptory challenges.
v
Defendant raises a question as to sentencing, particularly claiming that the trial court abused its discretion in sentencing him to ten to fifteen years on a voluntary manslaughter conviction when the jury acquitted him of a first-degree murder charge. The trial judge stated as one of the reasons for departure from the sentencing guidelines that the crime was "too cold and deliberate.”
Though we have referred the case back for retrial, it is necessary that we briefly discuss this issue in case it arises again. A sentencing judge may depart from the guidelines for the reasons and in the manner prescribed by the guidelines. The sentencing ranges in the sentencing guidelines are not mandatory and do not set binding limits on the exercise of a court’s discretion to sentence. Thus, when a trial court exercises its discretion to depart from the guidelines, the exercise of that discretion is reviewed under the Coles standard of whether the sentence imposed shocks the judicial conscience.
A trial judge is not entitled to make an independent finding of a defendant’s guilt on another charge and assert that as a basis justifying sentence, especially where a defendant was found not guilty of that charge. People v Grimmett, 388 Mich 590, 608; 202 NW2d 278 (1972).
Because defendant was found not guilty of first-degree murder, there was no justification for imposing a sentence based upon the trial judge’s opinion that the defendant should have been convicted of the greater offense. Other reasons that the trial judge gave for imposing sentence, such as the fact that a life was lost as a result of defendant’s actions with its consequent social reverberations, were proper but were not included on the sentencing information report (sir) and cannot save the impermissible reasons that were articulated on the sir.
Defendant has also raised questions relative to a health condition which are not pertinent here. This Court accordingly finds that any other errors raised can be dealt with properly at the new trial.
Reversed and remanded for new trial._
See Anno: Accused’s right, in homicide case, to have jury instructed as to both unintentional shooting and self-defense, 15 ALR4th 983. See also Clark & Marshall, Crimes (5th ed), § 284, p 375 for the common law rule on the right of an aggressor to claim self-defense. See also People v Peoples, 75 Mich App 616; 255 NW2d 707 (1977), lv den 400 Mich 857 (1977).
Administrative Order No. 1984-1, 418 Mich lxxx (1984); People v Butts, 144 Mich App 637; 376 NW2d 176 (1985), lv den 424 Mich 860 (1985); People v Kenneth Johnson, 144 Mich App 125; 373 NW2d 263 (1985), lv den 424 Mich 854 (1985).
People v Coles, 417 Mich 523; 339 NW2d 440 (1983). | [
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Per Curiam.
We entertain this case on remand from the Supreme Court, which directed this court to decide the matter as if on leave granted.
This case has a long and complex history. Employee Orville Hartsell injured his right knee in an October 8, 1965, accident which occurred during the course of his employment as a truck driver with defendant Richmond Lumber. Defendant paid Hartsell voluntary compensation from October 9, 1965, until February 25, 1967. Hartsell returned to Richmond Lumber on February 27, 1967, where he was given favored work as a night watchman. He disliked the work and voluntarily quit. On October 9, 1967, Hartsell began working at Community Meat Plant and continued until that company closed on April 18, 1968.
Hartsell petitioned on December 22, 1967, for a hearing on his claim for workers’ disability compensation benefits arising out of the 1965 truck accident. At a hearing before referee James W. Nolan, defendant offered Hartsell his former night watchman job. In an April 28, 1969, decision, referee Nolan ordered compensation for total disability from the date of the accident to the date Hartsell began working as a night watchman, for partial disability up to the date of hearing, and for no compensation thereafter due to Richmond Lumber’s offer of favored work employment, which Hartsell apparently refused. The Workers’ Compensation Appeal Board affirmed referee Nolan’s decision in an opinion and order issued on June 3, 1970. Both this Court and the Supreme Court denied leave to appeal that decision.
Hartsell filed another petition for hearing on July 16, 1970, but voluntarily discontinued the action without prejudice. Thereafter, he began working part-time at Chamberlain’s Shoe Mart, Inc., in September or October of 1974 and continued working there until at least September 19, 1979. On February 1, 1978, defendant Richmond Lumber closed the plant involved in this case.
Hartsell filed another petition for hearing on May 4, 1978, naming Richmond Lumber and the Second Injury Fund, alleging total and permanent disability arising from the 1965 accident and aggravation of this injury and additional injury caused by work in excess of restrictions. Following a September 19, 1979, hearing, hearing referee Edward H. DeVoe issued a decision holding: (1) that the wcab’s 1970 decision was res judicata; (2) that the only issue was whether Hartsell had lost industrial use of his legs owing to the 1965 injury; and (3) that Hartsell had not proven permanent and total disability or the loss of industrial use of his legs.
The wcab dismissed Hartsell’s appeal of hearing referee DeVoe’s decision for failure to file a transcript on November 26, 1980. On December 19, 1980, Hartsell simultaneously moved to reinstate the wcab appeal and filed an application for leave to appeal with this Court. This Court dismissed the appeal as premature, but the wcab granted the motion to reinstate the appeal. In an opinion dated November 21, 1983, the wcab (1) affirmed denial of differential benefits from the Second Injury Fund for total and permanent disability; (2) found that defendant Richmond Lumber had adequate notice of Hartsell’s claim for continuing general disability, based upon withdrawal of favored work; (3) found that the 1970 wcab opinion was not res judicata with respect to issues raised at the 1979 hearing; and (4) held that Hartsell was entitled to compensation from February 1, 1978, the date of the plant’s closing (and withdrawal of the offer of favored work), to the date of Hartsell’s death, which was sometime in 1983. Hartsell’s personal representative was substituted as a party plaintiff following his death.
This Court denied defendant Richmond Lum ber’s application for leave to appeal. On November 9, 1984, the Supreme Court remanded to this Court for consideration of the appeal as if on leave granted. 419 Mich 950 (1984).
i
First, we consider Richmond Lumber’s contention that it did not receive adequate notice of Hartsell’s intention to raise the favored work issue at the 1979 hearing because his petition raised only the issue of total and permanent disability due to loss of industrial use of both legs. We agree with the wcab’s finding that Richmond Lumber had actual notice that it was required to defend against the favored work issue.
Hartsell’s injury occurred in October, 1965, but the two-year time period for filing the claim for compensation was extended by (1) Richmond Lumber’s voluntary provision of compensation until February 25, 1967, and (2) the provision of favored work until Hartsell quit on June 24, 1967. See MCL 418.381(1); MSA 17.237(381X1). Hartsell’s timely December 22, 1967, petition was denied as it related to continuing compensation only because of decedent’s refusal to accept favored work. The wcab affirmed the denial in 1970 and admonished Richmond Lumber not to withdraw its bona fide offer of favored work.
Hartsell’s second petition (against Richmond Lumber and Second Injury Fund) was filed after Richmond Lumber ceased operating in February, 1978. The petition identified the cause of the injury as the 1965 accident and "working in excess of restrictions . . . [which] caused and aggravated back and bilateral leg pathology.” The petition also stated: "Back and bilateral leg pathology— industrial loss of use of both legs—total and permanent disability.”
Richmond Lumber claims this petition did not provide adequate notice that Hartsell was making a claim for general disability compensation benefits against Richmond Lumber based on withdrawal of the offer of favored work. The wcab rejected this argument. In reviewing a Workers’ Compensation Appeal Board decision, this Court must affirm if the proper legal standard has been applied, there is competent evidence to support the board’s finding, and there is an absence of fraud. Collins v Waterford Twp School Dist, 118 Mich App 798, 801; 325 NW2d 585 (1982), lv den 417 Mich 998 (1983), citing Const 1963, art 6, § 28; MCL 418.861; MSA 17.237(861).
We find no legal impediment to affirming the wcab’s finding that Richmond Lumber had adequate and actual notice of the favored work issue. First, the petition itself cited the 1965 work-related accident as one cause of the injury. Although it did not specifically state "general disability,” it stated "total and permanent disability” in describing the nature of the disability and referred to "back and bilateral leg pathology.” The description of the nature of the disability in the petition, taken together with the cause of the injury, informed defendant Richmond Lumber that the 1965 injury and general disability compensation was at issue. With respect to general disability, the only continuing issue after the 1970 wcab opinion was whether favored work was available.
The petition, although somewhat ambiguous, generally described the claim as required by MCL 418.847; MSA 17.237(847). Moreover, the uncontroverted affidavit of plaintiff’s counsel demonstrates that Richmond Lumber had actual notice of the issue. The fact that Richmond Lumber was named at all in the petition demonstrates that favored work was at issue. Finally, Hartsell’s counsel specified at the beginning of the hearing that the remaining issue concerned Richmond Lumber’s liability after the plant’s closing. After the parties argued about whether this ought to be an issue, hearing referee DeVoe concluded that Richmond Lumber was not out of the picture. Based on the foregoing, we affirm the wcab’s finding that Richmond Lumber had actual notice that it was required to defend against the favored work issue.
ii
Richmond Lumber next argues that the wcab improperly reinstated Hartsell’s appeal because Hartsell did not order the transcript and no appeal may be reinstated without substantial compliance with procedural rules. Richmond Lumber cites Dries v Chrysler Corp, 402 Mich 78; 259 NW2d 561 (1977), for the proposition that the wcab may reinstate an appeal dismissed for procedural reasons only if the appealing party has substantially complied with wcab rules. This argument distorts the Dries holding. In Dries, the Court did not indicate that substantial compliance was the only ground which will permit the wcab to reinstate a procedurally defective appeal.
In East Jordan Iron Works v Workers’ Compensation Appeal Board, 124 Mich App 324, 328; 335 NW2d 23 (1983), this Court summarized the rules governing when reinstatement of an appeal is proper:
In Pocs v Buick Motor Co, 207 Mich 591, 593; 175 NW 125 (1919), the Court pointed out that no provision in the statute or the rules allows a rehearing of a final order. In later cases, however, the Court stated the rule more broadly. In Letourneau v Davidson, 218 Mich 334, 339; 188 NW 462 (1922), the Court held that the board had no power to grant a rehearing to review the facts establishing liability as found by the board. On several occasions, the Court’s statement of the rule was that the board had no power to grant a rehearing of its determinations. Panozzo v Ford Motor Co, 255 Mich 149, 150; 237 NW 369 (1931); Guss v Ford Motor Co, 275 Mich 30, 34; 265 NW 515 (1936); Fitzpatrick v Olds Div of General Motors Corp, 282 Mich 646, 648; 276 NW 709 (1937). Other cases explain that the rehearing which is prohibited is one which reopens a case for redetermination of the basic facts. Tulk v Murray Corp of America, 276 Mich 630, 633; 268 NW 761 (1936); McLean v Eaton Mfg Co, 286 Mich 285, 294; 282 NW 150 (1938); Dean v Great Lakes Casting Co, 78 Mich App 664, 667; 261 NW2d 34 (1977). [Emphasis added.]
While Richmond Lumber maintains that reinstatement is barred by authority of Guss v Ford Motor Co, 275 Mich 30; 265 NW 515 (1936), in Dean, supra, this Court explicitly limited Guss to cases where a determination had been made by the board on the merits. Guss does not apply where the board’s determination is only to dismiss an appeal for procedural default. Dean, supra, 78 Mich App 667-668. Dean indicates that the board has power to reinstate appeals which are dismissed for procedural reasons.
Here, Hartsell’s appeal was dismissed because of a procedural defect. The merits of the case were never reached. The wcab acted within its power when it reinstated the appeal.
hi
Finally, we reject Richmond Lumber’s compel ling argument that Hartsell was not entitled to compensation for continuing disability when Richmond Lumber closed its plant and thereby withdrew its offer of favored work.
Richmond Lumber claims that it made a good-faith offer of favored work to Hartsell and kept it open for a reasonable length of time, but that it is unreasonable to force it to keep the offer open for ten years. Hartsell counters that Michigan case law establishes that an employee with a continuing disability who rejects an offer of favored work is nonetheless entitled to compensation when the plant closes, as the offer is deemed to have been withdrawn.
Favored work is work offered by an employer to a disabled employee which accommodates the employee’s limitations. Ayoub v Ford Motor Co, 101 Mich App 740; 300 NW2d 508 (1980), lv den 411 Mich 871 (1981). The rationale behind the favored work doctrine was stated in Stallworth v Chrysler Corp, 144 Mich App 706, 710; 375 NW2d 797 (1985), lv den 424 Mich 857 (1985):
"The favored-work doctrine is a purely judicial creation. Favored, or light, work can be loosely defined as less strenuous post-injury work. Wages from favored work may be used as a setoff against an employer’s compensation liability, MCL 418.361(1); MSA 17.237(361)(1), but favored-work wages do not establish an earning capacity, and when such wages cease, they neither suspend nor bar compensation. Powell v Casco Nelmor Corp, 406 Mich 332; 279 NW2d 769 (1979).
"The primary purpose of the doctrine is that of mitigation. It allows an employer to reduce or completely eliminate compensation payments by providing work within the injured employee’s physical capacity. At the same time, it encourages the employee to return to productive employment rather than to remain idle, thus also serving a rehabilitative function. Pulley v Detroit Engineering & Machine Co, 378 Mich 418; 145 NW2d 40 (1966).” [144 Mich App 710, quoting from Bower v Whitehall Leather Co, 412 Mich 172, 182; 312 NW2d 640 (1981).]
In Bower, the Supreme Court held that an employee who refuses favored work does not forfeit compensation benefits where the refusal is reasonable. However, in Steward v Westran Corp, 130 Mich App 68; 343 NW2d 7 (1983), this Court held that an unreasonable refusal of favored work does not permanently deprive an employee of compensation benefits. Rather, an unreasonable refusal merely suspends the employee’s benefits for the duration of the unreasonable refusal. The Court also stated:
"In PPG Industries, Inc v Aites, 7 Pa Commw Ct 588; 300 A2d 902 (1973), claimant quit favored work to become a minister. When he later found he could not earn a living wage at that profession, he attempted to find additional lighter work. The Court held that by leaving favored employment, he did not forever waive his right to compensation. Once he attempted to secure additional employment other than as a minister, he again became eligible to receive benefíts when his old favored work position was no longer available. [Bower, supra, pp 188-189, n 8, quoted at 130 Mich App 71-72.]
Here, Hartsell was denied benefits in 1970 for an unreasonable refusal of favored work. His entitlement to continuing disability benefits is not at issue. Although he secured alternative part-time employment, unlike the plaintiff in Steward, Hartsell never made a subsequent request of Richmond Lumber for suitable favored work. His claim for continuing disability compensation was not based on his own acquiescence to the proffered work but on Richmond Lumber’s unequivocal withdrawal of the offer on February 1, 1978, caused by cessation of its operations. The wcab agreed with Hartsell that Richmond Lumber should not benefit from continued suspension of benefits since it had effectively withdrawn the offer.
Notwithstanding defendant’s rather persuasive argument that the employer should only be required to keep offers of favored work open for a reasonable length of time, we think that precedent dictates a contrary holding. The doctrine of favored work is anchored in mitigation principles which allow the employer to reduce its established liability to the employee where the employee unreasonably refuses favored work. However, the employee’s unreasonable actions can no longer be the justification for reducing the employer’s liability once the plant closes, as here, or once an offer of favored work is withdrawn. According to Steward, supra, benefits are forfeited only for the duration of the employee’s unreasonable refusal. Here, after Richmond Lumber closed in 1978, the favored work was unavailable to refuse. Under Richmond Lumber’s argument, the employee’s right to subsequently accept favored work, established in Steward, would be cut off. Finally, our holding accords with the well-established policy that the Workers’ Disability Compensation Act is remedial in nature and should be construed in a liberal and humanitarian manner in favor of the employee. See e.g., Fuchs v General Motors Corp, 118 Mich App 547, 554; 325 NW2d 489 (1982), lv den 417 Mich 1077 (1983).
Affirmed.
If the issue were limited to total and permanent disability for the industrial loss of the use of both legs caused by work in excess of restrictions subsequent to 1965, only the Second Injury Fund could have been found liable. See MCL 418.521; MSA 17.237(521). | [
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J. C. Kingsley, J.
Plaintiff appeals from the trial court’s grant of summary judgment under GCR 1963, 117.2(2) in response to defendant Wyant’s motion.
The record discloses that on the evening of September 11, 1982, defendant Wyant was driving his farm tractor, to which two flat haywagons were attached, for a 4-H Club hayride. Defendants Messner were adult chaperones on the hayride. Ten-year-old Jennifer Proctor was riding on the left front corner of the second haywagon, and was seriously injured when she either jumped, fell, or was pushed off the wagon on which she was sitting and was run over by the wheels of the wagon.
Jennifer’s father collected $76,574.42 in personal protection insurance benefits from plaintiff, his no-fault insurer. See MCL 500.3105; MSA 24.13105. Plaintiff then commenced this action against defendants to recover the monies paid, founded on a claim of contractual subrogation pursuant to its insurance policy with Mr. Proctor.
The trial court found that plaintiff’s right to reimbursement was limited to the confines of the no-fault act, specifically MCL 500.3116(2); MSA 24.13116(2); found that plaintiff’s cause of action for subrogation was contrary to the provisions of that statute; and dismissed plaintiff’s complaint because it failed to state a claim on which relief could be granted.
Through the no-fault act, the Legislature has provided that an insurer is liable to pay personal protection benefits for accidental bodily injury "arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle.” MCL 500.3105(1); MSA 24.13105(1).
In Lee v DAIIE, 412 Mich 505, 512-513; 315 NW2d 413 (1982), our Supreme Court held that the right to recover personal protection insurance benefits for injuries sustained in a motor vehicle accident is not dependent on whether that vehicle is one for which no-fault coverage is mandatory under MCL 500.3101(1); MSA 24.13101(1). Instead, the right to recover is dependent only on whether the injury arises out of the ownership, operation, maintenance or use of a motor vehicle, as a motor vehicle, as the term "motor vehicle” is defined in MCL 500.3101(2)(c); MSA 24.13101(2)(c).
Applying Lee to the facts before us, we conclude that personal protection insurance benefits were properly paid in the instant case. Even though a farm tractor is a vehicle which need not be registered in Michigan, it is a "vehicle . . . operated . . . upon a public highway by power other than muscular power which has more than 2 wheels.” MCL 500.3101(2)(c); MSA 24.13101(2)(c). The Supreme Court has found that a tractor operated on a public highway fits the § 3101(2)(c) definition of "motor vehicle.” Pioneer State Mutual Ins Co v Allstate Ins Co, 417 Mich 590, 596; 339 NW2d 470 (1983).
The subject of reimbursement for such payments was addressed by the Legislature in MCL 500.3116(2); MSA 24.13116(2). That section established three situations in which the right of reimbursement may occur, and provides in relevant part:
A subtraction from or reimbursement for personal protection insurance benefits paid or payable under this chapter shall be made only if recovery is realized upon a tort claim arising from an accident occurring outside this state, a tort claim brought within this state against the owner or operator of a motor vehicle with respect to which the security required by section 3101(3) and (4) was not in effect, or a tort claim brought within this state based on intentionally caused harm to persons or property, and shall be made only to the extent that the recovery realized by the claimant is for damages for which the claimant has received or would otherwise be entitled to receive personal protection insurance benefits.
Plaintiff acknowledges the applicability of the Lee decision to the facts and concedes that it was required to pay the benefits on behalf of Jennifer. Plaintiff further concedes that its cause of action does not fall within any of the circumstances enumerated in § 3116. Plaintiff argues, however, that its contractual right of subrogation controls because this case falls outside the purview of the no-fault act. In its appellate brief, plaintiff states:
Even though the No-Fault Act has a "limited application” to the case at hand for purposes of payment of pip benefits, the Act does not apply "across the board” to the case at hand. This is particularly true for purposes of determining Plaintiffs right to Subrogation and Reimbursement. In determining same, the case at hand falls outside the scope of the act and thus, the Act does not apply.
Plaintiff would have this Court hold that the Lee Court’s "broad” definition of "motor vehicle” has application only to the payment of personal protection insurance benefits as required pursuant to the policy of the act to protect "persons, not motor vehicles.” Lee, supra, p 509.
To address plaintiffs claim, we apply the familiar rules of statutory construction:
The most important rule, of course, is to discover and give effect to the legislative intent.
The next rule is to derive the legislative intention from the actual language used in the statute. ... If the language used is clear and the meaning of the words chosen is unambiguous, a common-sense reading of the provision will suffice, and no interpretation is necessary. [Karl v Bryant Air Conditioning Co, 416 Mich 558, 567; 331 NW2d 456 (1982).]
We believe that the language of §§ 3105 and 3116 is clear and unambiguous, and the plaintiffs proffered construction is contrary to the plain language of the act. Section 3105 states the circumstances under which personal protection insurance benefits are payable, and those circumstances exist in this case. Section 3116 states unequivocally and unambiguously the "only” circumstances in which an insurer may seek reimbursement for personal protection insurance benefits "paid or payable.” As noted above, plaintiff concedes that none of the circumstances exist in this case.
We do not believe there should be a partial application of the provisions of the no-fault act in cases such as this. We can reach no other conclusion than that reimbursement for personal protection insurance benefits paid for injuries arising from the operation of a "motor vehicle” as that term is defined in § 3101(2)(c) cannot be recovered except as provided in § 3116(2). Because we believe reimbursement in this case is not permitted by the no-fault act, the subrogation provisions contained in the Proctor policy are invalid. See Boettner v State Farm Mutual Ins Co, 388 Mich 482; 201 NW2d 795 (1972).
Plaintiff argues that because § 3116 was amended to provide for recovery only in limited circumstances, we must amend our application of that section to the facts presented here and permit the policy provisions to control. Plaintiff also claims there are public policy considerations re garding the hesitancy of insurance companies to pay pip benefits in "questionable situations” when they otherwise would do so, if they are not permitted to seek reimbursement as plaintiff attempts to do here.
To construe the act as plaintiff would have us construe it would require a finding that either the Lee Court created common-law liability for insurers under § 3105, or the Legislature did not intend the conditions for insurer reimbursement listed in § 3116 to be exclusive. We cannot so find, and leave the public policy considerations for the Legislature to resolve.
Affirmed.
MCL 257.216(c); MSA 9.1916(c).
Section 3101(2)(c) was revised effective April 19, 1984, subsequent to the accident at issue, to exclude tractors and other implements of husbandry exempt from registration from the definition of motor vehicles. | [
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Per Curiam.
Defendant was arrested on August 28, 1982, in Midland County and charged with operating a motor vehicle while under the influence of intoxicating liquor, third offense, a felony, MCL 257.625; MSA 9.2325. Defendant’s motion to strike, which was considered as a motion to quash the information by the trial court, was denied by written order on January 18, 1983. Defendant’s interlocutory application for leave to appeal from that order was granted by this Court on February 24, 1983.
The two previous convictions were, on January 24, 1974, for driving under the influence of intoxicating liquor, first offense, and for driving under the influence of intoxicating liquor, second offense on January 26, 1981, in the 75th District Court in Midland County. In both cases the defendant pleaded guilty to the charge. In both cases the defendant was not represented by counsel in the district court. The defendant claims that misdemeanor convictions obtained without counsel being present cannot be used against him to support guilt on the present felony charge, nor could they be used to enhance the punishment in the case.
This is not a case where the defendant seeks to set aside a prior misdemeanor conviction or claims that he was denied a constitutional right during the plea-taking process. The question becomes one of whether it is permissible to use prior convictions to support guilt or enhance punishment of a subsequent offense where the records of the prior offenses show that the defendant was informed of his right to counsel and that he thereafter pled guilty, but where the records do not show that he affirmatively waived his right to counsel.
Under the Sixth Amendment to the United States Constitution, a conviction for a felony in a state court without counsel being present and without a valid waiver of counsel having been obtained may not be used to support guilt or enhance punishment for another offense. United States v Tucker, 404 US 443; 92 S Ct 589; 30 L Ed 2d 592 (1972); Burgett v Texas, 389 US 109; 88 S Ct 258; 19 L Ed 2d 319 (1967); People v Nelson, 73 Mich App 395; 251 NW2d 602 (1977). Similarly, conviction of a misdemeanor, where the record indicates no counsel or formal waiver of counsel, may not be used to convert a subsequent conviction into a felony under a state’s enhanced penalty statute. Baldasar v Illinois, 446 US 222; 100 S Ct 1585; 64 L Ed 2d 169 (1980), reh den 447 US 930; 100 S Ct 3030; 65 L Ed 2d 1125 (1980), and People v Olah, 409 Mich 948; 298 NW2d 422 (1980). See also People v Courtney, 104 Mich App 454; 304 NW2d 603 (1981).
Both the defendant and the prosecution agree that in the present case the defendant may not be prosecuted for the third offense felony if he did not effectively waive his right to counsel. What constitutes an effective waiver of counsel in such cases?
"A waiver is ordinarily an intentional relinquishment or abandonment of a known right or privilege. The determination of whether there has been an intelligent waiver of the right to Counsel must depend, in each case, upon the particular facts and circumstances surrounding that case, including the background, experience, and conduct of the accused.” Johnson v Zerbst, 304 US 458, 464; 58 S Ct 1019; 82 L Ed 1461 (1938).
"Presuming waiver from a silent record is impermissible. The record must show, or there must be an allegation and evidence which show, that an accused was offered counsel but intelligently and understanding^ rejected the offer. Anything less is not waiver.” Carnley v Cochran, 369 US 506, 516; 82 S Ct 884; 8 L Ed 2d 70 (1962).
Michigan courts have adopted the Zerbst definition of waiver. See People v Grimmett, 388 Mich 590; 202 NW2d 278 (1972). However, there is no agreement as to the application of waiver to a set of facts. One line of cases supports the prosecution’s contention that an express waiver is not required and that, if the court reads or recites to the defendant his rights and defendant responds by saying he wishes to plead guilty, defendant has thereby "knowingly, intelligently and voluntarily” waived his right to counsel. People v Scott, 381 Mich 143; 160 NW2d 878 (1968); People v Dunn, 380 Mich 693; 158 NW2d 404 (1968); People v Hobdy, 380 Mich 686; 158 NW2d 392 (1968).
Another line of cases supports defendant’s contention that a waiver is constitutionally infirm if the record shows only that the court read defen dant his rights and defendant said he understood but the record does not show that he was given an opportunity to assert those rights or that his statement was not knowingly or intelligently made. People v Simpson, 35 Mich App 1; 192 NW2d 118 (1971); People v Parshay, 379 Mich 7; 148 NW2d 869 (1967); People v Whitsitt, 359 Mich 656; 103 NW2d 424.(1960).
As the trial judge indicated in his written opinion both Baldasar and Olah could be read to support a view that any uncounselled plea is infirm whether right to counsel was effectively waived or not. We agree with the trial judge that not all uncounselled pleas of guilty are infirm. However, People v Courtney, supra, does not stand for the proposition by implication that, if the defendant is informed of his right to counsel and he pleads guilty, he has waived counsel. DCR 785.4(c) states:
"The right to the assistance of a lawyer, to an appointed lawyer, or to a trial by jury is not waived unless the defendant (1) has been informed of the right; and (2) has waived it in a writing that is made a part of the hie or orally on the record. ” (Emphasis added.)
DCR 785.4(c) became effective on October 4, 1976. This rule went into effect after defendant’s first conviction in 1974 but it does apply to the 1981 conviction. The transcript of the conviction in 1981 indicates that the judge took great effort in explaining the applicable rights to the defendant. The judge had to interrupt the defendant on a number of occasions in order to fully explain his right to counsel and that he need not plead guilty. The record does not show that the defendant "waived * * * orally on the record”. This rule contemplates an express waiver on the record and not an implied waiver by reason of the defendant’s responding by pleading guilty.
The order of the trial court denying the motion to quash is reversed. The 1981 conviction may not be used as an element of guilt or basis for enhanced punishment. The 1974 conviction may be so used by the prosecution, but the jurisdiction of such offense, being a misdemeanor, is in the 75th District Court.
Affirmed in part, reversed in part and remanded. | [
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Per Curiam.
Plaintiff filed suit in September, 1979, against the manufacturer (Maren) and retail seller (Donnelly) of a baling-crushing machine, claiming that he suffered injuries as a result of the negligent design and installation of the machine and that the defendants had breached express and implied warranties. Plaintiff abandoned the warranty claims at the close of proofs and the case was submitted to the jury solely on the negligence theory. A verdict of no cause of action was rendered and judgment in accordance with the verdict was entered on July 2, 1982. From that judgment, plaintiff appeals as of right. We affirm.
Plaintiff was employed in a bottle and can recycling plant. His tasks included placement of cases containing bottles onto a conveyor belt which led to the crushing machine. On June 15, 1979, plaintiff climbed onto the moving conveyor belt in an "effort to break up the morning”. The belt was approximately eight feet long and was elevated five feet off the floor. The sides of the crushing chamber, itself, were over six feet high. A co-employee, David Nuss, observed plaintiff climb onto a nearby counter and lie down on the moving conveyor belt. Nuss turned the belt off when plaintiff was within a foot of the belt’s end. Plaintiff sat upright with his legs dangling over the crushing chamber and, as a "prank”, Nuss quickly turned the belt on and then off again. Plaintiff then either fell, slipped, or jumped into the crushing chamber. The self-activating feature of the machine turned on the ramming mechanism which crushed plaintiff’s legs before he could get out of the chamber.
Plaintiff testified that he was aware of the self-activating feature of the machine (a photoelectric cell) which automatically engaged the crusher when the material inside the chamber reached a certain level. He admitted knowing that the machine was dangerous but stated that he did not wish to fall inside but was jerked into the machine, apparently when Nuss started the conveyor belt. Plaintiff testified that he had been on the conveyor belt on previous occasions but that he had not done so when the belt was in motion. Nuss testified that there was no work-related reason for anyone to be on the moving conveyor belt.
Plaintiff first argues that the trial court erroneously permitted counsel for Maren to elicit testimony from a defense witness concerning the arrest of one of plaintiff’s witnesses. The use of evidence of an arrest, not resulting in conviction, for impeachment purposes and the procedure by which this extrinsic impeachment on a collateral matter was permitted, was erroneous. See People v Falkner, 389 Mich 682; 209 NW2d 193 (1973); MRE 608(b). Although erroneous, reversal is not required. A determination of prejudicial error necessarily depends on the circumstances of the case, the fairness of the verdict, and whether the erroneously admitted evidence pertained to a substantive issue in the case. Ilins v Burns, 388 Mich 504; 201 NW2d 624 (1972); Sponenburgh v Wayne County, 106 Mich App 628; 308 NW2d 589 (1981). Here, plaintiff has failed to make a showing of prejudice resulting from the improper admission of this evidence. The testimony concerned a collateral matter and did not bear upon the substantive issue of the case.
Next, citing GCR 1963, 302.4, plaintiff asserts that the trial judge erroneously instructed the jury that admissions contained in the deposition of Donnelly’s president, David Ryan, were not evidence against codefendant Maren. We disagree. While depositions of an opposing party may be used for any purpose, the admissibility of such evidence is still controlled and limited by the rules of evidence. GCR 1963, 302.4. Therefore, the trial court properly followed the long-standing rule that admissions of one defendant are not admissible as substantive evidence against a codefendant. See, e.g., Gibbard v Cursan, 225 Mich 311; 196 NW 398 (1923); Ghezzi v Holly, 22 Mich App 157; 177 NW2d 247 (1970); Fassihi v St Mary’s Hospital of Livonia, 121 Mich App 11; 328 NW2d 132 (1982).
Five months prior to trial, Donnelly filed a cross-claim against Maren seeking indemnification in the event that plaintiff obtained a judgment against Donnelly. Plaintiff sought to introduce that pleading into evidence as an admission against Donnelly in his case in chief. We find that the trial court properly applied the exception to GCR 1963, 604, set forth in Slocum v Ford Motor Co, 111 Mich App 127; 314 NW2d 546 (1981), to prohibit the admission of the cross-claim. The allegations contained within the cross-claim were in the nature of alternative or conditional pleadings and were predicated upon an initial finding of liability against Donnelly in plaintiff’s original action. Thus, introduction of the allegations in the cross-claim would have left Donnelly virtually de fenseless and would have placed Donnelly in the position of having to forgo a claim for indemnification at the risk of having evidence of the inconsistent allegations introduced at trial as admissions of liability in the principal action.
Plaintiff next argues that the trial court erred by giving defendant Maren’s requested jury instructions. Plaintiff claims that the instructions were repetitive, argumentative, not warranted by the evidence, and a misstatement of the law. Plaintiff failed to comply with GCR 1963, 516.2, which requires the objecting party to state with specificity both the subject matter and the grounds for the objection. Our review of the record indicates that the given instructions were neither argumentative nor unsupported by the record. Further, the jury was instructed in accordance with the standard set forth in Owens v Allis-Chalmers Corp, 414 Mich 413; 326 NW2d 372 (1982), and any reference to the "obvious” nature of the risk was harmless, given plaintiff’s own admission that he knew the machine was dangerous and that his actions were foolish and a misuse of the machine.
The final allegation of error involves the conduct of defendant Maren’s trial counsel. We note that the transcript is replete with evidentiary objections and heated exchanges between counsel, but we also note that the exchanges occurred for the most part out of the presence of the jury. We find no. evidence of misconduct on the part of trial counsel which would operate to deny plaintiff a fair trial.
Having reviewed the record in conjunction with plaintiff’s asserted grounds of error, we affirm the judgment of the trial court. Costs to defendant. | [
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Per Curiam.
Defendant appeals by leave granted from an order of the Workers’ Compensation Appeal Board (WCAB), affirming the hearing officer’s determination that plaintiff was disabled by the aggravation of a back condition causally related to his employment. The WCAB modified the award as rendered by the hearing officer to include 12% interest on the accrued, but unpaid, compensation benefits due to the plaintiff. Defendant also appeals from this portion of the WCAB’s order.
Plaintiff commenced his employment with defendant at its Fisher Body plant in Grand Blanc on April 23, 1953, and, in October, 1956, he began to work as a die setter. Plaintiff described his duties as a die setter as being extremely strenuous. The job included prying heavy dies with six-foot bars. Sometime during the early 1960’s, plaintiff was pulling a bar and moving a die into place when he felt a snap and pull in his back. He went to the first aid station, where he was given heat treatments, and he did not miss ány time from work because of the injury.
Plaintiff claimed that following the injury he continued to have pain in his back. The pain became so intense that, in 1963, he was forced to have surgery. Plaintiff recuperated for six months before returning to his job as a die setter on October 18, 1963. The surgery was successful to the extent that plaintiff did not require additional time off from work because of the injury. Plaintiff, however, claimed that the pain continued.
During cross-examination, plaintiff explained that his health insurer had paid some of his surgical bills and that he had paid the balance. The defense entered into evidence a letter written by plaintiff to his health insurer which stated that his back trouble was not related to his employment. Plaintiff identified the writing and signature as his own, but stated that he did not remember writing the letter.
In March, 1967, plaintiff requested a transfer to the position of crane operator because he believed that this job would be less injurious than working as a die setter. This request was granted. Plaintiff stated that in order to get into the crane he had to climb a forty-foot ladder. He estimated that he climbed up and down the ladder 12 to 15 times a day and that the pulling involved in climbing the ladder put a strain on his back. Moreover, in order to get signals from the workers on the ground, plaintiff had to stand up and lean over the cab which placed additional stress on his back.
Roland Willis, who supervised plaintiff at the Fisher Body plant, contradicted plaintiff’s testimony as to the operation of the cranes. Willis stated that plaintiff would operate only one or two cranes a day, necessitating only a limited amount of climbing. In addition, the crane could be turned 180 degrees, enabling the operator to see down from the side of the cab without leaning out over the front of the machine. Willis further testified that plaintiff was only in the cabs about four hours a day and that the only reason for him to stand up was to stretch his legs if they got tired.
On December 5, 1966, plaintiff again injured himself when he slipped on icy pavement in the plant’s parking lot. Plaintiff fell on his tailbone and experienced shooting pains in his hip and right leg. Plaintiff went to the plant’s first aid station and informed them of the slippery conditions in the parking lot. Although plaintiff claimed that he continued to have pain in his right leg because of the accident, he admitted on cross-examination that his right leg had been previously injured during World War II. At the time of the hearing, plaintiff was receiving compensation from the government for the injuries to his right leg. Following the slip and fall, GMC arranged for plaintiff to see Dr. Harris about the resulting pain. The plant’s records reveal that on December 9, 1966, plaintiff reported that he was "much improved” and requested that the appointment be cancelled. At the hearing, plaintiff denied that he had ever made such a request.
Plaintiff did not receive any further medical treatment until July, 1973, when he suffered a ruptured appendix. During plaintiff’s 90-day convalescence following surgery, he experienced an exacerbation of the pain in his back and leg. In addition, plaintiff began feeling brief transient pains in his chest. Notwithstanding his physical infirmities, plaintiff returned to work as a crane operator. He remained on the job for about a month, but was forced to leave because of the pain in his leg. Plaintiff went back to Dr. Herzog, the physician who originally operated on plaintiff’s back, for an examination. Dr. Herzog took x-rays and conducted a myelogram, ultimately determining that plaintiff required additional surgery on his lower back. Plaintiff testified that, even after this surgery, the pain in his back was too intense to allow him to continue, as a crane operator. Plaintiff admitted, however, that his intervening heart disease also prevented him from returning to work.
Following plaintiff’s last day of work at General Motors on July 13, 1973, plaintiff was examined by several physicians. Dr. Van Brocklin concluded that plaintiff could return to work provided he was placed in a "sit-down” job. Van Brocklin did not believe that it was possible for plaintiff to continue as a crane operator because climbing the ladder might affect plaintiff’s heart condition. Van Brocklin noted that there might also be some pain in plaintiff’s back during the climbing.
Dr. Irving Young’s examination revealed that plaintiff suffered no limitation of movement because of back pain. The x-rays showed a narrowing of the disc space and anterior spurring that might have been precipitated by the strenuous nature of plaintiff’s work in the early 1960’s. Young found no evidence that plaintiff’s back injury was further aggravated by his employment.
Dr. Leon Friedman determined that plaintiff could not participate in significant physical activity because of his advanced cardiovascular disease. Friedman believed, however, that plaintiff could perform satisfactorily in a sedentary or semi-sedentary job. Although Dr. Friedman’s examination focused on plaintiff’s heart ailment, the doctor noted that plaintiff continued to complain of back pain.
Although plaintiff originally claimed that his employment caused aggravation to his back, appendix, heart, and lungs, he deleted all claims except those relating to his back. The disability award was accordingly based solely on the aggravation of his back condition.
We address defendant’s second claim on appeal first: namely, that the evidence on the record did not support the WCAB’s conclusion that plaintiff suffered an occupational injury on his last day of work in July, 1973. We address this issue first because, were we to accept this claim, we would not have to address defendant’s other claims.
The WCAB acts as a trier of fact and, by state constitutional mandate, Const 1963, art 6, § 28, the WCAB’s findings of fact may not be disturbed, absent proof of fraud, if there is any competent evidence to support them. Derwinski v Eureka Tire Co, 407 Mich 469, 481-482; 286 NW2d 672 (1979); Bullard v Titus Construction Co, 118 Mich App 631, 637; 325 NW2d 521 (1982).
In the instant case, plaintiff reported that he sustained his first work-related back injury in the early 1960’s. This injury was aggravated by a fall on the pavement of his employer’s parking lot in 1966. Dr. Van Brocklin concluded that plaintiff’s continuing back problems and associated pain were the result of work-related injuries suffered by plaintiff. Dr. Young believed that at least the work plaintiff performed in the early 1960’s may have precipitated his original back problems. Dr. Van Brocklin explicitly opined that plaintiff’s back problems rendered him unable to perform anything other than sedentary work. Plaintiff, himself, testified that the repetitive climbing and bending associated with his crane operator’s job aggravated his pain to the point at which he could no longer carry out his duties. This evidence is sufficient to sustain the WCAB’s findings of fact.
Defendant also argues that the WCAB erred because plaintiffs intervening non-work-related heart disease, if anything, precluded his continued employment. However, an independent, intervening event resulting in a new disabling medical problem does not alone justify the denial of benefits for a continuing work-related injury. Powell v Casio Nelmor Corp, 406 Mich 332, 354-355; 279 NW2d 769 (1979).
Concerning the finding of a work-related disability, defendant finally argues that, because plaintiff informed his health insurer in 1963 that his back problems were not work-related, it was error for the WCAB not to deny benefits. We disagree. While a plaintiffs representations to his insurer may be (and, here, clearly were) considered by the WCAB, the WCAB is not obligated to give preemptive weight to such an admission.
Error is also assigned to the WCAB’s holding that defendant waived the so-called two-year-back rule embodied in § 381 of the Worker’s Disability Compensation Act, MCL 418.381(2); MSA 17.237(381)(2), by failing to raise it as an affirmative defense before the hearing officer. Section 381(2) provides:
"If any compensation is sought under this act, payment shall not be made for any period of time earlier than 2 years immediately preceding the date on which the employee filed an application for hearing with the bureau.”
Under the facts of this case, application of the two-year-back rule would limit defendant’s liability for compensation benefits to the period subsequent to June 23, 1975.
In Kingery v Ford Motor Co, 116 Mich App 606; 323 NW2d 318 (1982), this Court, relying on Kleinschrodt v General Motors Corp, 402 Mich 381; 263 NW2d 246 (1978), determined that the defendant had waived application of the two-year-back rule because it had not raised the issue of the rule’s applicability before the hearing officer. In Kingery, as here, this issue was first raised before the WCAB. Pursuant to MCL 418.859; MSA 17.237(859) and General Rule 20 of the Bureau of Workers’ Disability Compensation, 1979 AC, R 408.50, the WCAB has discretion to go beyond the record made before the hearing officer; however, the WCAB is not required to consider issues raised for the first time before it. On the facts of this case, where the record is devoid of any compelling explanation for defendant’s failure to raise the applicability of the two-year-back rule before the hearing officer, we find no abuse of the WCAB’s discretion.
Defendant’s final claim is that the WCAB erred in awarding interest at 12% per annum on accrued benefits due prior to January 1, 1982. We reject this contention on the authority of Selk v Detroit Plastic Products, 120 Mich App 135; 328 NW2d 15 (1982), lv gtd 417 Mich 934 (1983).
Affirmed. Plaintiff-appellee may tax costs. | [
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Per Curiam.
This appeal arises out of a suit by plaintiffs Mark and Nancy Hartman, not parties to this appeal, against defendant and cross-plaintiff Erb Lumber Company, and defendant and cross-defendant Century Truss Company. Plaintiff Mark Hartman, while working at a construction site, was blinded in one eye by a loose nail in a roof truss. Plaintiffs’ complaint alleged that Century negligently manufactured the truss, that Erb negligently failed to properly inspect the truss, and that both Century and Erb were liable for breach of warranty of merchantability. Erb filed a cross-complaint against Century, claiming that Erb acted only as a broker for the sale of the truss manufactured by Century and seeking common-law indemnification. After all the proofs were in, but before the jury had reached a verdict, the court granted Erb a directed verdict for indemnification "together with any costs or attorney fees allowed to be taxed”. The jury then returned a verdict of no cause of action in favor of both Erb and Century. Subsequently, Erb moved for taxation of costs and attorney fees, which the court denied in the order from which Erb now appeals.
The sole question before us is whether Erb is entitled to tax costs and attorney fees against Century based on the directed verdict for indemnification granted Erb, despite the fact that ultimately the jury returned a verdict of no cause of action as to both Erb and Century. We find that the court properly denied Erb’s motion to tax costs and attorney fees.
Indemnification may be based on three possible sources: an express contract, an implied contract, or the common law. Skinner v D-M-E Corp, 124 Mich App 580, 584; 335 NW2d 90 (1983). In the instant case, Erb relied on the common-law right to indemnification. A party seeking common-law indemnity must show freedom from personal fault, that is, freedom from active or causal negligence; it must show that the active negligence is attributable solely to another whereas its own liability arises by operation of law, thus making it only passively negligent. Langley v Harris Corp, 413 Mich 592, 597-598; 321 NW2d 662 (1982); Dale v Whiteman, 388 Mich 698, 705-706; 202 NW2d 797 (1972); Peeples v Detroit, 99 Mich App 285, 292; 297 NW2d 839 (1980).
A party entitled to common-law indemnification is, as part of that right, entitled to recover costs and attorney fees incurred in its defense of the primary litigation, although it is not entitled to recover those expenses incurred in establishing its right to indemnification. Warren v McLouth Steel Corp, 111 Mich App 496, 507-509; 314 NW2d 666 (1981), lv den 417 Mich 941 (1982); Hayes v General Motors Corp, 106 Mich App 188, 200-201; 308 NW2d 452 (1981). Thus, in the instant case, if Erb is entitled to indemnification, it is entitled, as a corollary to that right, to the costs and attorney fees incurred in defending the suit broüght by plaintiffs. We will assume that Erb did satisfy the prerequisite of showing that it was free from active or causal negligence, since Century does not argue otherwise on appeal. Even so, however, we find that any right to indemnification which Erb may have had on the basis of the court’s directed verdict, granted before the jury’s verdict was taken, vanished when the jury subsequently returned its verdict of no cause of action as to Century.
Common-law indemnity "rests upon the equitable principle of a right to restitution”. Peeples, supra, p 292. The theory underlying common-law indemnity has been summarized as follows:
" 'It is a well-recognized rule that an implied contract of indemnity arises in favor of a person who without any fault on his part is exposed to liability and compelled to pay damages on account of the negligence or tortious act of another, the former having a right of action against the latter for indemnity * * V (42 CJS, § 21, p 596.)
"This right of indemnity is based on the principle that everyone is responsible for his own negligence * * *. It exists independently of statute, and whether or not contractual relations exist between the parties, and whether or not the negligent person owed the other a special or particular legal duty not to be negligent.’ (42 CJS, § 21, p 597).” Dale, supra, pp 705-706. (Emphasis added.)
As reflected in the above, indemnification is proper only where the alleged indemnitor is found to have engaged in some wrongdoing. Here, the jury found that Century was not liable for any wrongdoing. Also, it would contravene notions of equity to hold Century responsible for payment of Erb’s costs and attorney fees given the jury’s determination that plaintiffs’ suit against Century was without merit. Erb was forced to defend against plaintiffs not because of any wrongful conduct on Century’s part, but rather simply because plaintiffs filed suit.
Although Erb claims that Century was responsible for wrongdoing in that Century failed to take on Erb’s defense against plaintiffs’ suit, this contention is groundless since Century had no duty to defend Erb. Erb points to no implied or express contractual promise by Century to defend Erb in a suit such as that brought by plaintiffs. Finally, although Erb suggests that the court violated its own order directing a verdict for Erb, that order provided that Erb was entitled to "any costs or attorney fees allowed to be taxed” as part of its right to indemnification. Since Erb ultimately-failed to establish any right to indemnification, given the verdict of no cause of action against Century, there are no costs and attorney fees which Erb is allowed to tax against Century.
Affirmed. Costs to appellee. | [
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Allen, P.J.
In this dispute between plaintiff, a no-fault automobile insurer, and defendant, a group hospitalization and medical insurer, over which insurer is responsible for the medical and hospital expenses of Cheryl J. Stirdivant arising out of an automobile accident on May 31, 1977, plaintiff appeals as of right from an order of the trial court dated September 23, 1982, granting summary judgment in favor of defendant under GCR 1963, 117.2(3). The principal issue raised on appeal appears to be of first impression in Michigan.
On the date of the accident, Cheryl J. Stirdivant was a school teacher employed by the Comstock Park School System. In this capacity, she was covered for hospital and medical expenses under a basic hospital care certificate, a basic medical care certificate and a supplemental benefit certificate issued by defendant Blue Cross & Blue Shield of Michigan (BCBS). Mrs. Stirdivant was also covered for the medical and hospital costs incurred as a result of the automobile accident on May 31, 1977, under a no-fault policy issued to her husband by plaintiff, Auto-Owners Insurance Company.
The coverage provided by BCBS was provided under a group contract entered into pursuant to a collective-bargaining agreement between the Com-stock Park School District and the union representing the teachers. The scope of the coverage was negotiated between the school district and the union. Under the three certificates which provided the coverage finally agreed upon between the parties, all members of the group were entitled to coverage only so long as: (1) they remained eligible members of the group, and (2) the school district continued to pay premiums on their behalf. Upon loss of group eligibility or nonpayment of a premium, coverage was to terminate "automatically” and "without further action on the part of’ BCBS. Termination was to be effective at the end of the monthly period in which a failure to pay or termination of eligibility occurred.
The certificates also provided that in the event a teacher lost his or her group coverage, by reason of termination of employment or otherwise, there would be a conversion privilege entitling the teacher to convert to a group conversion plan at a cost of approximately $139 a month. The conversion privilege could be exercised only by written notice to BCBS within 30 days after the end of the monthly payment period in which the eligibility terminated.
Because Mrs. Stirdivant was severely injured in the accident, she was unable to resume her teaching duties, in September, 1977. The school district paid premiums on her behalf to October 1, 1977, but removed her from the payroll and stopped paying premiums October 1, 1977. Although not required by the express terms of the contract, BCBS mailed a group conversion contract and billing for $139 to Mrs. Stirdivant. The bill was never paid nor was the conversion privilege otherwise exercised. However, BCBS did not undertake an investigation to determine why the conversion privilege was not exercised.
After BCBS ceased making payments, Auto-Owners picked up the medical and hospital costs incurred after October 1, 1977. On May 1, 1980, Auto-Owners filed a complaint for declaratory judgment, alleging that plaintiff, under the coordi nation of benefits clause, was entitled to an offset in the amount of the benefits which Mrs. Stirdivant should have received from BCBS. On July 6, 1981, at a hearing on the call of the no-progress calendar, the suit was removed from the no-progress calendar and on September 18, 1981, defendant filed an answer and affirmative defenses.
Following the submission of two sets of interrogatories to plaintiff, defendant filed a motion for summary judgment on July 26, 1982. In support of that motion, BCBS filed two affidavits setting forth the contract provisions, the termination of coverage and the fact that the conversion privileges had never been exercised. Auto-Owners filed a brief in opposition to the motion, an opposing affidavit and a first set of interrogatories to defendant. The interrogatories inquired into the circumstances surrounding Mrs. Stirdivant’s failure to convert. The affidavit recited that Mrs. Stirdivant was comatose during the period in which her conversion privilege was to be exercised. However, plaintiff does not dispute the contract provisions or terms of coverage as set forth in this opinion. Instead, in its brief in opposition to BCBS’s motion for a summary judgment and at the hearing on the motion on September 10, 1982, plaintiff argued that summary judgment would be improvident without first ascertaining whether BCBS ever made more than a cursory effort to notify Mrs. Stirdivant or her family of her right to convert and further ascertaining the full circumstances of why the conversion privilege was not exercised.
The trial court rejected plaintiffs argument stating that the claims were "hypothetical” and that "there is no legal basis for any obligation of the insurance company to submit a copy of the certificate to the participant or to explain to her or give her notice of her right to convert”. In its written opinion dated October 4, 1982, the trial court further explained:
"the court does not consider the circumstances of failure to convert to be relevant in this situation. There simply was a failure to convert and defendant’s responsibility should properly be limited to the terms of the contract it entered. The court simply doesn’t agree with the rather limited authorities relied on by the plaintiff for the proposition that no matter what the contract says, it must be construed or applied to relate to all medical expenses arising from any one accident in perpetuity.”
On appeal to us, plaintiff argues that the trial court erred in granting summary judgment because: (1) a question of fact existed concerning the circumstances surrounding Mrs. Stirdivant’s failure to convert; (2) discovery was not completed and was still being pursued by both parties, Goldman v Loubella Extendables, 91 Mich App 212, 218; 283 NW2d 695 (1979); (3) even though the contract was legally terminated in accordance with the contract and policy provisions, Mrs. Stirdivant’s rights to benefits had vested at the time of her injuries and payment for injury-related expenses continues after contract termination. Myers v Kitsap Physicians Service, 78 Wash 2d 286; 474 P2d 109 (1970). It is plaintiff’s third ground of error which raises a question of first impression in Michigan.
I
Prior to analyzing the issues, it will be helpful to comment on the general posture of this matter. This is not a contest between Cheryl Stirdivant, a member of the group, and BCBS, the insurer of the group. Cheryl Stirdivant is not even a party to the suit. Instead, this is a contest between two insurance companies over which is responsible for Mrs. Stirdivant’s medical and hospital expenses incurred after the subscriber was no longer carried on the payroll and coverage was cancelled October 1, 1977. Up to that date, BCBS had paid some $54,000. Since October 1, 1977, Auto-Owners has paid such expenses. Regardless of which insurer prevails in this appeal, Mrs. Stirdivant has nothing to gain. Either way, her medical and hospital expenses will be paid.
Indeed, Mrs. Stirdivant might be prejudiced if Auto-Owners prevails on appeal, since in order for Auto-Owners to recover from BCBS, Mrs. Stirdivant or her representatives would have to effectuate conversion. As noted earlier, conversion requires a monthly payment of $139.06 a month, or $1,668.72 a year. In the five-year period between cancellation of the policy on October 1, 1977, and the trial court’s written opinion on October 4, 1982, conversion could have cost the Stirdivant family $8,343.60 and would only have duplicated the coverage already supplied under the Auto-Owners no-fault policy.
Given the clear and undisputed language of the medical certificates that coverage was provided to members of the group only so long as they remained members of the group and premiums were paid on the members’ behalf and that coverage terminated "automatically” and "without further action” by the insurer, and given the further undisputed fact that Mrs. Stirdivant was removed from the payroll October 1, 1977, and no premiums were received on her behalf since that date, we fail to see how inquiry into the circumstances surrounding the scope or clarity of the notice of the right to conversion given Mrs. Stirdivant or the reasons why the conversion privilege was not exercised were relevant. BCBS was not required to give any notice.
Therefore, we agree with the trial court that the circumstances concerning the failure to convert are not relevant. Accordingly, we do not find that a factual situation potentially existed precluding the exercise of summary judgment under GCR 1963, 117.2(3). This is not to hold that merely because Mrs. Stirdivant was removed from the payroll and further premiums were not paid, she automatically lost all rights against BCBS for benefits for medical and hospital expenses resulting from the accident. That question is explored in issue III of this opinion. But we do hold that even though Mrs. Stirdivant was comatose, the reasons why she did not exercise her privilege of conversion and the circumstances of receiving notice of her right to convert were not relevant to the motion for summary judgment.
II
Was summary judgment improper because discovery was still being processed at the time the motion for such judgment was made and decided? Auto-Owners contends that even though it filed suit on May 1, 1980, and did not ask for interrogatories from defendant until August 18, 1982, the grant of summary judgment on September 23, 1982, was still invalid because defendant had not responded to plaintiffs interrogatories. In support of this argument, plaintiff relies on Goldman, supra. We are not persuaded for several sound reasons.
First, plaintiff’s request for interrogatories was not made until shortly before the hearing on defendant’s motion for summary judgment. Meanwhile, defendant had sent three sets of interrogatories to plaintiff. Second, plaintiff’s interrogatories to defendant exclusively pertained to the circumstances under which Mrs. Stirdivant failed to exercise the right of conversion — a subject matter we have held not to be relevant. Third, unlike the situation in Goldman which involved a complex and undisputed factual situation regarding price-fixing, the facts in the instant case were relatively simple, were not disputed, and were apparent from the terms of the contract. We agree with defendant that plaintiff, having had five years to gather evidence from the time BCBS discontinued payments, and having failed to do so, can hardly claim that the trial court acted prematurely.
Ill
The main thrust of plaintiff’s claim for recovery of hospital and medical expenses incurred after plaintiff was no longer a member of the group insured is predicated on "vesting”. Under this theory, a subscriber’s right to coverage "vests” at the time the accident or illness occurs and a subsequent cancellation of the policy on grounds that the subscriber is no longer a member of the group does not cut off the subscriber’s rights to reimbursement for medical and hospital expenses incurred after cancellation of the policy. Plaintiff cites two cases supporting "vesting”. Myers v Kitsapp, supra, and the dissenting opinion in Blue Cross of Florida, Inc v Dysart, 340 So 2d 970 (Fla App, 1976). Plaintiff submits that the majority opinion in Dysart is poorly reasoned and asks this Court to reject it in favor of the dissenting opinion.
Defendant argues that the instant situation does not present a question of first impression but is similar to and controlled by Van Zanten v National Causalty Co, 333 Mich 28; 52 NW2d 581 (1952). In that case, plaintiff was injured in an automobile accident at the time he was covered by a group accident and health policy issued to his employer. Like the policy here, that policy provided for automatic termination in the event the insured member terminated his membership with the group. However, that policy also provided that if membership was terminated while the member was wholly and continuously disabled, the policy was automatically extended for 90 days. Because he could not work, plaintiffs policy was terminated November 1, and, under the 90-day clause, his employer paid for all expenses up to February 1. Plaintiff sued claiming he was entitled to expenses incurred after January 31. The Supreme Court first noted that insurance contracts should be interpreted in favor of the insured but found the rule inapplicable since the provisions for termination were not uncertain or ambiguous. Quoting from Hawthorne v Metropolitan Life Ins Co, 285 Mich 329, 335-336; 280 NW 777 (1938), the Supreme Court said:
"Group insurance policies are issued to the employer to insure employees. One who is not an employee is not insurable. The employee is entitled to coverage under the certificate issued to him only while he remains in the employ of the employer and upon payment at the beginning of each month of the premium upon the insurance policy. Aetna Life Ins Co v Carroll, 188 Ark 154; 65 SW2d 25 (1933). No recovery may be had upon an insurance policy for the death of one who has been an employee of the insured under a group policy after the termination of his employment (Colter v Travelers Ins Co, 270 Mass 424; 170 NE 407 [1930]), except in strict compliance with the terms of the policy. Nelson v Aetna Life Ins Co of Hartford, Conn, 115 Pa Super 15; 174 A 624 (1934). The very purpose of the group insurance is to safeguard or provide for employees. It would be unreasonable to conclude the policy would inure to the benefit of those who have ceased to be employees.” Van Zanten, p 40.
Contrary to the claims of both plaintiff and defendant, we do not find Van Zanten, Kitsap, or Dysart controlling. Unlike the situation here, all involved suits by the subscriber against the insurer. None involved a situation where the subscriber’s medical and hospital expenses had been paid and the dispute was over which of the two insuring companies should be charged with such costs. Thus, the instant appeal does present a question of first impression. Furthermore, Kitsap is also distinguishable in that there the defendant insurer changed the terms of the coverage when it renewed the group contract for another year. In the instant situation, the insurer made no changes in the coverage nor did the insurer remove the subscriber from the payroll.
We have found no case either in Michigan or in other jurisdictions involving a contest between two otherwise liable insurers concerning which policy covers claims for medical treatment and hospitalization furnished at a time when the policy is no longer in force. However, we have found a few cases where the dispute is between the insured subscriber and the insurer. These cases are summarized in Anno: Elimination of Particular Cover age, or Termination, of Health, Hospitalization, or Medical Care Insurance Policy As Affecting Insurer’s Liability for Insured’s Continuing Hospitalization or Medical Expenses Relating to Previously Covered Illness, 66 ALR3d 1205. The annotation deals with liability under health or hospitalization care policies as distinguished from the insurer’s liability under an accident policy. Only cases in which hospitalization or medical treatment had begun prior to termination of the policy are included in the annotation.
The cases come to conflicting results depending upon the court’s construction of the language in the policy as to the particular risk involved. Does the policy insure against expenditures arising out of an accident or does it insure against expenditures for services rendered while the employee is a member of the group? Stated another way, is it a health-accident policy or is it a medical expense policy? Often the courts find the policy ambiguous as to the risk insured. Where the court finds the language concerning the risk to be covered ambiguous, application of the rule that ambiguity is to be construed against the insurer and in a manner favorable to coverage results in a decision against the insurer. This was the rationale employed by the court in Kitsap, supra. Likewise, it was the rationale followed to find the insurer liable in Houghton v American Guaranty Life Ins Co, 692 F2d 289 (CA 3, 1982), in the dissenting opinion in Dysart, supra, and in Danzig v Dikman, 78 App Div 2d 303; 434 NYS2d 217 (1980).
On the other hand, where the court finds the contract to be a hospitalization and medical expense policy rather than an accident policy and where the language is unambiguous, the insurer is not held liable for expenses incurred after the subscriber is no longer on the payroll. As was stated in the majority opinion in Dysart, supra, p 972:
"We think the trial court erred. While the court’s rationale may, in proper instances, be applicable to an accident and health policy, it is not applicable to hospitalization and medical expense policies which afford benefits only during the time of coverage. Here, coverage was provided to the plaintiff as a Blue Cross/Blue Shield group subscriber. Continuation of that coverage was to be furnished in consideration of payment in advance of the rates applicable for the type and extent of coverage specified in the contract. Thus, it appears coverage, to be effective, is dependent upon continued payment of premiums by the subscriber. It seems, therefore, axiomatic that upon termination of the contracts and cessation of premium payments, the only coverage available is that stipulated in the contracts. We note the lack of any stipulated posttermination benefits in the contracts in this case.”
Similarly, in Wulffenstein v Deseret Mutual Benefit Ass’n, 611 P2d 360 (Utah, 1980), the defendant insurer was not found liable for medical expenditures resulting from an automobile accident which occurred while plaintiff was gainfully employed but which expenses were incurred after she was dismissed from the payroll. There, defendant issued to plaintiff’s employer a "Group Hospital, Surgical, and Medical Expense Insurance Policy”. The policy provided "[t]he insurance of an employee shall automatically terminate immediately upon * * * (1) The date termination of his employment occurs”. On December 28, 1973, while still on the payroll, plaintiff was injured in an automobile collision. She was granted a leave of absence (during which time she was still considered an employee by the terms of the policy) but thereafter on April 1, 1974, her employment was terminated. Defendant honored her medical expenses through March 31, 1974, but declined to pay any expenses incurred after March 31, 1974, including claims for surgery in January, 1975. Plaintiff sued contending that the right to payment for all expenses whenever incurred vested at the time of the accident. Defendant claimed that it was liable only for those expenses incurred during employment.
The Utah Supreme Court examined the policy language to determine the risk that was insured, was it the illness or accident or was it medical expenses incurred while employed. Finding that the risk insured was medical expenses, the court held:
"The policy involved here could have been an accident or sickness policy, in which case the risk insured against would have been an accident or illness, and rights to any claims arising therefrom would have vested at the time of the accident or illness. However, the policy issued by the defendant was not an accident or sickness policy, but a medical expense policy. As the District Court found, the risk insured against was the incurring of expenses, and until expenses were incurred there was no loss. Thus, defendant is not liable for expenses incurred after the coverage terminated. An analysis of the language of the policy makes this clear.” 611 P2d 361.
The court then proceeded to reject plaintiff’s heavy reliance on Myers v Kitsap, supra, noting that the policy in Kitsap was ambiguous:
"The Washington Supreme Court held that the contract was ambiguous, and that the plaintiff’s rights became vested when medical treatment became necessary, so later termination of the particular policy in force at that time did not affect that right to treatment. * * * The Court in Myers appears to have reached its result by a keen concern to protect the plaintiff in an unusual situation. Unlike Myers, this policy is not ambiguous, and its terms clearly extend coverage only for expenses incurred by employees. But if Myers can, arguendo, be cited as authority for us to reverse here, we choose not to follow it.” 611 P2d 363.
The necessity of carefully distinguishing the risk insured in an accident and health policy as contrasted with the risk insured in a hospitalization and medical expense policy, noted in the majority opinion in Dysart, supra, and in Wulffenstein, supra, was also observed by this Court in Hoehner v Western Casualty & Surety Co, 8 Mich App 708; 155 NW2d 231 (1967). Defendant insurer had issued a policy containing a provision that it would "pay all reasonable expenses incurred within one year from the date of accident for necessary medical, surgical and dental services * * * for each person who sustains bodily injury, sickness or disease, caused by accident”. While the policy was in force, the insured’s minor son fell, injuring his teeth. He was taken to a dentist who performed temporary treatment but postponed further treatment until the boy reached more mature physical growth. The insured made claim for the additional expense necessary to repair his son’s teeth, but defendant denied liability on grounds that such expenditures would not be incurred within one year. The trial court held in favor of plaintiff and defendant appealed relying on Van Zanten, supra. In affirming the trial court, our Court distinguished Van Zanten on grounds that there the policy was a group policy negotiated with the union and under which benefits would not be provided once the employee was no longer employed.
"However, defendant has apparently chosen to omit discussion of both the heandotes of the VanZanten Case and several of the comments in the ALR [75 ALR2d 876] annotation wherein the fact that the employee in the VanZanten Case was insured under a group policy issued to his entire union local led that Court to terminate the liability of the insurance company in accord with the clear intent not to provide benefits to any employee once the employee was no longer employed.” 8 Mich App 716.
Application of the above described legal principles to the instant situation leads us to two conclusions. First, the language of the policy clearly discloses that the risk insured was not an accident or a described illness but instead was the expense for services incurred as a result of such accident or illness during the period of the insured’s membership in the group. The hospital care certificate repeatedly refers to "Hospital Service” (¶ III); "Service in NonParticipating Hospitals” flj IV); "Conditions of Eligibility for Hospital Service” (¶ VI). The group benefit certificate commences by defining "services” (§ I), and then tying benefits paid to service (§ II) and then describing in detail what "services” are not compensable (§ III). The master medical benefit certificate also ties benefits to services (Article II) and defines exclusions in terms of services (Article V). Each of the three certificates specifically provides, though in somewhat different language, that the contract is automatically terminated once the subscribing member is no longer on the payroll.
Second, the policy language is not ambiguous regarding the risk insured. Not only is there no language indicating the existence of liability on the part of BCBS for expenses incurred after termination of coverage, there is language expressly saying that upon termination of coverage no further services will be provided. Where a contract is not ambiguous, the rule that the contract will be construed in favor of the policyholder does not come into play. In short, the instant case is governed by the holding in Wulffenstein, supra, and the majority opinion in Dysart, supra, that the insurer is not liable for expenses incurred after coverage was terminated.
Finally, we do not posit our opinion on these grounds. We find an additional and even stronger reason for affirming the grant of summary judgment in favor of defendant. In none of the cases referred to above has the subscribing member prevailed unless the court, upon appellate review, first found the contract ambiguous as to the nature of the risk insured and then called into play the rule that ambiguity is construed in favor of the party insured. In all of the cited cases the party insured was the plaintiff. But in the instant case, the subscribing member is not the plaintiff or even a party to the suit. As stated earlier, Mrs. Stirdivant will or has had her medical expenses paid, no matter who wins this suit. The dispute is simply between two insurers, one of whom (plaintiff) seeks to avoid liability under its own insurance policy. Under these circumstances, we doubt that Auto-Owners is entitled to the presumptions which could be applied to the subscribing member. Accordingly, even if the contract in the instant case were ambiguous as to the risk insured, plaintiff could not prevail.
Affirmed. Costs to defendant.
Transcript of trial court’s opinion delivered from the bench September 10,1982.
In Kitsap, the insured suffered a kidney ailment which required hemodialysis. Defendant, a health care provider under the provisions of a one-year renewable contract, paid for the treatments but then excluded hemodialysis when it renewed the contract for another year. The Washington Supreme Court held the contract was ambiguous and that the plaintiffs rights became "vested” when treatment became necessary, so later termination of the policy did not cut off the right to treatment.
"* * * shall be terminated automatically in the event of termination of eligibility of the subscriber for coverage as a member of the group” (hospital care certificate); "shall be terminated automatically in the event of * * * (b) termination of eligibility of the Subscriber as a member of the group through which he enrolled” (group benefit certificate); "this certificate and all rights hereunder shall terminate * * * if the eligibility of the subscriber for coverage as a member of the group through which his coverage is effected shall terminate by reason of * * * (b) the subscriber having ceased to be a member of the group through which he became enrolled in the program” (master medical benefit certificate). | [
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Per Curiam.
This case arises from plaintiff’s discharge from his position as building maintenance supervisor at the Blandford Nature Center, which is part of the Grand Rapids Public Museum. Plaintiff was a non-union, non-civil service employee of defendant City of Grand Rapids and his immediate supervisor was defendant Mary Jane Dockeray, Director of Blandford Nature Center. Plaintiff appeals as of right from an order of the circuit court dismissing all counts of his amended complaint. We reverse.
One of the counts alleged in plaintiff’s amended complaint was that of breach of contract by defendant city in wrongfully terminating plaintiff without just cause, in contravention of defendant city’s "Employee Handbook”, which provides that, upon "successfully completing the probationary period, you may be discharged or demoted only for cause”. This claim of plaintiff is based on Toussaint v Blue Cross & Blue Shield of Michigan, 408 Mich 579; 292 NW2d 880 (1980). In addition to defendant city’s "Employee Handbook”, the museum had its own handbook entitled "Museum Staff Handbook”, which set forth a review and appeal procedure under which an employee "who believes he has received inequitable treatment” could seek relief. Upon receiving notice of his discharge, plaintiff invoked this procedure. "Step 1” of the procedure involved discussion with his immediate supervisor, and "Step 2” involved review by the museum director; both steps were resolved unfavorably to plaintiff, finding that his termination was based on just cause. Plaintiff then invoked "Step 3” of the procedure, which is described in the "Museum Staff Handbook” as follows:
"Step 3: If the employee is not satisfied with the settlement of the problem, he may ask, in writing, for a review by a Grievance Committee. The Grievance Committee of five people will be elected annually at the beginning of each fiscal year at a meeting of Museum employees excluding the Director and Assistant Director.
"The Grievance Committee will hold interviews with and obtain written statements from all parties concerned.
"This committee, serving as an impartial group will make recommendations for a satisfactory solution based upon their investigation within eight working days of the time of receipt of the request from the employee. These recommendations shall be forwarded to the employee, the Museum Director, and the Art and Museum Commission for final action.
"If the employee is not satisfied with the recommendation of the Grievance Committee, he may ask, in writing, for a review by the Art and Museum Commission within five working days, or he may ask for a hearing before the Commissioners at which time the employee and one representative of his choice will be allowed to defend his point of view. The Commissioners may call any additional personnel involved in the case to present their side.
"If the Grievance Committee wishes to have the case reviewed by the Art and Museum Commission, they may so request in writing.
"In any case, all information, written statements, and documents must be made available to the Art and Museum Commission.
"If the problem involves legal advice, a written opinion must be obtained from an attorney.
"Disposition of the case will be made by the Art and Museum Commission at its next regular meeting, or as soon as practicable.”
The grievance committee, consisting of other museum employees, issued a report which was in large part favorable to plaintiff. The committee recommended that the Art and Museum Commission more fully investigate the circumstances surrounding plaintiff’s termination and recommended as possible solutions that plaintiff be given a job in another city department or be allowed to retire without loss of benefits. After a hearing before the Art and Museum Commission, however, the commission found that there was just cause for discharge and issued a final decision terminating plaintiff’s employment.
The circuit court concluded that plaintiff was not entitled to submit his Toussaint wrongful discharge claim to a jury since the Art and Museum Commission’s final decision to terminate plaintiff was not subject to de novo review. The court found, relying on Viculin v Dep’t of Civil Service, 386 Mich 375; 192 NW2d 449 (1971), that the decision to terminate was that of an administrative agency to which Const 1963, art 6, § 28 applied, and treated plaintiff’s complaint as one seeking an order of superintending control under which the scope of review was limited to determining whether the commission’s decision was "supported by competent, material and substantial evidence on the whole record” as provided under Const 1963, art 6, § 28. The court concluded that plaintiff’s discharge was supported by competent, material, and substantial evidence, and affirmed the commission’s decision. The court then issued an order dismissing plaintiffs wrongful discharge count and also dismissing all of plaintiffs other counts, finding that its affirmance of the commission’s decision to terminate was dispositive of plaintiffs other counts as well. We question the court’s determination that its affirmance of the commission’s decision to discharge necessarily disposed of virtually all the other claims set forth in plaintiffs additional counts for negligence, retaliatory discharge, discrimination, promissory estoppel, detrimental reliance, interference with contractual relationship and prospective economic opportunities, libel and slander, and intentional infliction of mental distress. But, moreover, we find that the underlying reason for the court’s dismissal of plaintiffs complaint, that the commission’s decision to discharge plaintiff was subject to only limited judicial review, was error.
Defendants argue that the court properly treated the Art and Museum Commission’s final decision to terminate plaintiff as that of an administrative agency for which the standard of review is the minimum review provided in Const 1963, art 6, § 28. We cannot agree. That constitutional provision states in pertinent part as follows:
"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. * * *” Const 1963, art 6, § 28.
The threshold question is whether the Art and Museum Commission is a judicial or quasi-judicial administrative agency existing under the constitution or by law. We find that it is not, and that therefore Const 1963, art 6, § 28 is inapplicable.
In Viculin, supra, p 385, relied on by the circuit court and by defendants on appeal, the Supreme Court held that § 28 applied to final decisions of the Michigan Civil Service Commission. Defendants also direct our attention to Montiy v East Detroit Civil Service Bd, 54 Mich App 510, 513; 221 NW2d 248 (1974), where this Court noted that the standard of review applicable to the decision of the Civil Service Board of East Detroit was that provided in § 28. However, the present case is distinguishable. A municipal officer, board, commission, or the like may be authorized by law to conduct hearings on the removal or suspension of employees. 4 McQuillin, Municipal Corporations (3d ed), § 12.259, p 392. The powers of a local government board or commission are limited to those provided by the city charter or local ordinance. Division 26 of Amalgamated Ass’n of Street, Electric Railway & Motor Coach Employees of America v Detroit, 330 Mich 195, 212-213; 47 NW2d 70 (1951); Hubbard v Board of Trustees of Dearborn Retirement System, 319 Mich 395, 399; 29 NW2d 779 (1947). Here, the Art and Museum Commission was not authorized, either by the city charter or ordinance, to act as a quasi-judicial administrative agency having the responsibility of adjudicating claims brought by museum or any other city employees.
Defendants cite the following provision of the city charter in support of their assertion that the commission is a quasi-judicial administrative agency:
"244. Employees. Sec. 4. It shall be the duty of the Board [of Art and Museum Commissioners] to appoint and employ such employees as the economical and efficient service of this department shall require and to prescribe and fix their duties and compensation.”
However, we fail to perceive in this provision any intention of the city charter’s framers that the Art and Museum Commission function as a quasi-judicial administrative agency. In contrast, the Michigan Civil Service Commission involved in Viculin, supra, is vested by the State Constitution with plenary power to "make rules and regulations covering all personnel transactions, and regulate all conditions of employment”, Const 1963, art 11, § 5. Also contrast Goodfellow v Detroit Civil Service Comm, 312 Mich 226; 20 NW2d 170 (1945) (limited judicial review of decision of defendant commission, which under city charter must hear appeals by discharged employees); In re Fredericks, 285 Mich 262; 280 NW 464 (1938) (limited judicial review of decision of city police and fire commission, authorized by charter and statute to conduct hearings on removal of employees). While the above-quoted provision gives the Art and Museum Commission authority to decide whom to employ and to fix the compensation and duties of museum employees, it does not empower the commission to hear appeals or hold hearings to adjudicate employee grievances, nor does it give the commission plenary regulatory and rulemaking powers.
We conclude that the commission was not functioning as a quasi-judicial administrative agency under the city charter or ordinance when it issued its final decision to discharge plaintiff, and therefore the limited scope of review provided in Const 1963, art 6, § 28 is inapplicable. The commission was, however, functioning as a self-designated deci sionmaking body, and so we must now determine whether its decision to discharge plaintiff made in that capacity precludes plaintiff from submitting his claim of wrongful discharge to a jury.
In recognizing an employee’s cause of action for wrongful discharge based on an employer’s breach of an oral or written policy statement that the employee could be discharged only for just cause, the Court in Toussaint, supra, p 624, explained:
"Additionally, the employer can avoid the perils of jury assessment by providing for an alternative method of dispute resolution. A written agreement for a definite or indefinite term to discharge only for cause could, for example, provide for binding arbitration on the issues of cause and damages.”
However, the Court also noted that the "promise to terminate employment for cause only would be illusory if the employer were permitted to be the sole judge and final arbiter of the propriety of the discharge”. Toussaint, supra, p 621. The principle we derive from these statements by the Court in Toussaint, supra, is that an employer, in conferring upon its employee the right to be discharged only for cause, might also provide a procedure for resolution of disputes over whether cause to discharge existed, and the decision reached under that procedure might preclude submission to a jury of a wrongful discharge claim and be subject only to limited judicial review, but only where the dispute is resolved by some impartial arbiter.
In the present case, the final decision to discharge was made by the Art and Museum Commission under the dispute resolution procedure set forth in the "Museum Staff Handbook”. We find that the commission’s decision was not that of an impartial arbiter since the commission had partici pated in the initial decision to terminate plaintiffs employment. Plaintiff was notified of his discharge by the museum director, W. D. Frankforter, who sent plaintiff a letter dated January 30, 1980. The minutes of a meeting of the Art and Museum Commission held December 19, 1979, include the following:
"(1) Nature Center
"1.1 Staff: Director Frankforter reviewed the meeting he had had with Mr. Len Van Der Toorn and Mr. Andy VanderVeen. After considerable discussion, it was suggested that Mr. Van Der Toorn have counseling but when an appointment was set up for him, he refused to go. The only two alternatives which remain are: (1) Early retirement, or (2) dismissal. It was suggested that Mr. Frankforter talk with Mr. Van Der Toorn’s wife, and that nothing be decided or done until after the first of the year.”
Also, museum director Frankforter testified at the hearing on plaintiffs discharge held before the Art and Museum Commission as follows:
”Q. Now, at this same place in your record, 12-19 notation, you indicate that there are only two alternatives. Now, are these the alternatives that the board gave you, or is this what you’re presenting to the board?
”A. Well, I think it was the conclusion of the board after my presentation concerning the past two years, and the statement that Mr. Van Der Toorn chose not to have counseling, then they suggested these are the alternatives.
”Q. Okay, next notation, January 3rd, 1980, you called Mary Jane Dockeray, we have got suggesting early retirement to Len?
"A. Right.
”Q. At that point in time, had you decided that she was not a good person to discuss this with Len?
"A. She is a supervisor, but she’s not the one who made the decision to either retire or terminate him. That was a decision made in the Art and Museum Commission meeting, which again is the governing body.”
Defendants argue that the commission did act as an impartial arbiter in rendering the final decision upholding plaintiff’s discharge since the commission had earlier merely acted in an investigative role and was familiar with the facts of the case, citing Withrow v Larkin, 421 US 35; 95 S Ct 1456; 43 L Ed 2d 712 (1975), and Hortonville Joint School Dist No 1 v Hortonville Education Ass’n, 426 US 482; 96 S Ct 2308; 49 L Ed 2d 1 (1976). In Withrow, supra, the Supreme Court found no due process violation where the licensing board first conducted an investigation into whether the licensee had engaged in proscribed conduct, and later decided to temporarily suspend the license and to initiate an action for license revocation, finding that probable cause for revocation existed; the Court explained that "the combination of investigative and adjudicative functions does not, without more, constitute a due process violation”. Withrow, supra, 421 US 58. In Hortonville, supra, the school board had been engaged in collective bargaining with the teachers, the teachers then went on strike, and the board conducted hearings on whether the teachers should be disciplined; the Court held that due process did not prevent the board from disciplining the teachers merely because the board was familiar with the facts via its earlier bargaining activities. Hortonville, supra, 426 US 493.
However, neither Withrow nor Hortonville dis turbed the principle that the due process right to an impartial decisionmaker is violated where the decisionmaker sits in review of a decision in which it participated. Withrow, supra, p 58, fn 25; Goldberg v Kelly, 397 US 254, 271; 90 S Ct 1011; 25 L Ed 2d 287 (1970); Crampton v Dep’t of State, 395 Mich 347, 353-355; 235 NW2d 352 (1975). In the instant case, as reflected by the above-quoted excerpts from the commission’s minutes and Frankforter’s testimony, the commission was not merely familiar with the facts and did not merely make an investigation and some preliminary determination, but rather actually participated in the decision to terminate plaintiffs employment, the same decision the propriety of which it later reviewed. Hence, we conclude that the commission’s final decision upholding plaintiffs discharge as based on just cause was not that of an impartial arbiter so as to preclude a jury’s assessment of whether just cause existed under Toussaint, supra, p 624.
In sum, we find that the circuit court erred in treating the commission’s decision upholding plaintiffs discharge as that of an administrative agency subject only to limited judicial review, and further that the commission’s decision was not that of an impartial arbiter so as to preclude jury consideration under Toussaint, supra. Since the court dismissed plaintiffs count of wrongful discharge and all the other counts in plaintiffs complaint because of its erroneous affirmance of the commission’s final decision to discharge based on the limited scope of review applied by the court, we reverse that order dismissing plaintiffs complaint in its entirety. Upon presentation of the necessary proofs, plaintiff is entitled to submit to a jury his Toussaint-based claim of wrongful discharge, as well as the other claims set out in his additional counts for negligence, retaliatory discharge, discrimination, promissory estoppel, detrimental reliance, interference with contractual relationship and prospective economic opportunities, libel and slander, and intentional infliction of mental distress. Whether and to what extent some of plaintiffs claims may overlap with his Toussain ¿-based wrongful discharge claim, we leave to resolution on remand.
Reversed and remanded for proceedings consistent with this opinion; no costs, a question of public significance being involved. | [
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Per Curiam.
Plaintiff Sherry Gautz (formerly Bert) and defendant David Bert were divorced by order of the Monroe Circuit Court on July 23, 1982. Ms. Gautz was awarded custody of the parties’ minor daughter. David Bert was granted reasonable visitation with the child. No provision was made in the judgment of divorce for visitation by any of the child’s grandparents.
David Bert was shot and killed on December 21, 1982. On February 12, 1983, Ms. Gautz remarried and moved to Toledo, Ohio, with her daughter and new husband. Adoption proceedings were begun in Ohio. The child was legally adopted by Ms. Gautz’s new husband on December 20, 1983.
On February 15, 1983, David Bert’s mother, Mrs. Mildred Bert, filed a petition in the Monroe Circuit Court as intervening defendant in the Bert v Bert divorce case. In the petition Mrs. Bert sought specific visitation with her deceased son’s daughter. Jurisdiction was apparently predicated on the circuit court’s authority to issue additional orders concerning the child’s custody, maintenance and support following Ms. Gautz and Mr. Bert’s divorce. MCL 552.17a; MSA 25.97(1).
On the basis of Mrs. Bert’s petition, Ms. Gautz and Mrs. Bert appeared before the circuit court and an investigation of the advisability of the proposed visitation was conducted by the Monroe County Friend of the Court. Despite Ms. Gautz’s objection to visitation by Mrs. Bert outside Ms. Gautz’s home, an order was entered on April 22, 1983, allowing such visitation.
Ms. Gautz did not comply with the visitation order. Upon motion by the friend of the court, a hearing was held on December 20, 1983, for Ms. Gautz to show cause why she should not be held in contempt of court. Ms. Gautz did not appear at the hearing. The circuit court authorized a bench warrant for Ms. Gautz’s arrest and order that Mrs. Bert have immediate possession of the child until further order of the court.
Enforcement of the visitation order and the bench warrant was stayed as of April 17, 1985, pursuant to an agreement reached in a related federal district court action.
The validity of the trial court’s actions in regard to the petition for grandparent visitation are now before this Court on leave granted.
Ms. Gautz first argues that the Monroe Circuit Court lacked the power to enter its April, 1983, visitation order since David Bert’s death divested the court of its jurisdiction in the Bert v Bert divorce proceeding. We agree that the court improperly entered the visitation order, but for a different reason.
Jurisdiction in divorce cases is purely statutory and every power exercised by the circuit court must have its source in a statute or it does not exist. Gray v Independent Liberty Life Ins Co, 57 Mich App 590, 594; 226 NW2d 574 (1975); Ewald v Ewald, 14 Mich App 665, 671; 166 NW2d 49 (1968). The statutory provisions relative to divorce proceedings are found at Chapter 552 of the Michigan Compiled Laws, MCL 552.1 et seq.; MSA 25.81 et seq. Under this chapter, the court is empowered to make orders concerning the care, custody, and maintenance of minor children during the pendency of a divorce action, MCL 552.15; MSA 25.95, upon entering a judgment of divorce, MCL 552.16; MSA 25.96, and subsequent to the entry of a judgment of divorce, MCL 552.17; MSA 25.97. The divorce court’s jurisdiction over child custody and visitation matters continues until the parties’ children reach age eighteen. MCL 552.17a; MSA 25.97(1) provides in pertinent part:
The court shall have jurisdiction in making such order or judgment relative to the minor children of such parties as authorized in this chapter to award custody of each child to 1 of the parties or a third person until each child has attained the age of 18 years. [Emphasis added.]
Thus, by statute, the Bert v Bert court remains authorized to enter orders relative to the minor child until she reaches eighteen years of age, notwithstanding the death of David Bert.
Nevertheless, under the above-quoted statutory provision, the court’s continued jurisdiction relative to matters of child custody and visitation is limited to the entry of orders "authorized in this chapter,” i.e., Chapter 552. Visitation by grandparents is not authorized by Chapter 552; it is authorized as part of the Child Custody Act, MCL 722.21 et seq.; MSA 25.312(1) et seq. The only provision within Chapter 552 empowering a court to entertain postjudgment child custody and visitation claims is found at MCL 552.17; MSA 25.97, which allows the court to enter postjudgment child custody orders "on the petition of either of the parents.” Here, Mrs. Bert is not a parent of the minor child. We therefore conclude that the circuit court was without jurisdiction to enter its visitation order under the divorce act.
We do note, however, that the circuit courts have subject matter jurisdiction to hear grandparent visitation claims pursuant to the grandparent visitation provision of the Child Custody Act, MCL 722.21 et seq.; MSA 25.312 et seq., particularly MCL 722.27; MSA 25.312(7). A grandparent’s right to visitation with the child of divorced parents is governed by § 7b of the Child Custody Act. That section provides two methods by which a grandparent may obtain court ordered visitation. Determination of the proper method for requesting visitation depends on whether the natural parent of the minor child is deceased. MCL 722.27b(l); MSA 25.312(7b)(1). If a custody dispute is pending, and the natural parents of the child are still alive, a grandparent of the child may seek an order of visitation by intervening in the dispute and filing a motion to show cause. MCL 722.27b, subds (1) and (3); MSA 25.312(7b), subds (1) and (3).
, If, however, the natural parent of the child is deceased, a parent of the deceased person can obtain visitation by "commencing an action” whether or not a child custody dispute is pending. MCL 722.27b(1); MSA 25.312(7b)(1); Olepa v Olepa, 151 Mich App 690; 391 NW2d 446 (1986). In this circumstance, the action is to be commenced by filing a complaint or a complaint and motion for an order to show cause. MCL 722.27b(3); MSA 25.312(7b)(3).
Since the father of the child was deceased, Mrs. Bert could only obtain visitation in the instant case by filing a complaint and commencing an action. Mrs. Bert did not file a complaint with the court as required by § 7b. Instead, she filed a petition and attempted to "intervene” in the original divorce action. Because she did not properly follow the statutory procedure set forth in § 7b, the trial court’s consideration of her petition was improper.
Moreover, even if Mrs. Bert had filed a complaint with the Monroe Circuit Court, venue to consider the petition would not have been proper. Section 7b(3) provides that the action must be commenced "in the circuit court in the county in which the grandchild resides.” MCL 722.27b(3); MSA 25.312(7b)(3). "Resides,” as used in this act, refers to the "personal, actual, or physical habitation” of the child. Kubiak v Steen, 51 Mich App 408, 414; 215 NW2d 195 (1974). The purpose of requiring filing in the county where the child "resides” is to limit litigation to "where the child can be found or actually lives,” so that the child’s personal life will be subjected to the least disruption over the duration of the suit. Kubiak, supra, p 414.
In the present case, the child had been living in Monroe County, Michigan, but moved to Lukas County, Ohio, just prior to the filing of Mrs. Bert’s petition. Despite the relative immediacy of the child’s move to Lukas County, the child was in fact residing in that county. Because the child was not residing in Monroe County, venue would not have been proper in that county. Thus, even if Mrs. Bert had "commenced an action” by filing the petition, the petition was filed in the wrong court and should have been dismissed because of improper venue. Such an action was necessary to safeguard the child’s interests in having the action brought in the county of the child’s residence.
Whether Mrs. Bert could file an action in the child’s county of residence in Ohio is a determination which must be made pursuant to Ohio law and the provisions of the Uniform Custody Jurisdiction Act. We note, however, that Ohio law, like Michigan law, provides for grandparent visitation. Ohio Revised Code, § 3109.11.
Because the petition in the Monroe Circuit Court should have been dismissed for lack of jurisdiction in the Bert v Bert case, and the improper venue under the Child Custody Act, the grant of visitation to Mrs. Bert and subsequent order for custody of the child were invalid. Although this finding does not necessarily render the contempt citation and bench warrant issued against Ms. Gautz unenforceable, we find that under the particular circumstances of this case further enforcement would serve no legitimate purpose and should be permanently stayed.
As an alternate ground for setting aside the visitation order, Ms. Gautz argues that the actions of the friend of the court in attempting to have the April, 1983, order enforced were improper. While resolution of the procedural issues makes review of the friend of the court’s actions unnecessary, we note that, under MCL 552.509(3); MSA 25.176(9)(3), the friend of the court was required to "initiate and carry out proceedings to enforce all orders entered in a domestic relations matter regarding custody, visitation, and support.” Contrary to Ms. Gautz’s suggestions, the friend of the court was not required, nor empowered, to resolve issues regarding jurisdiction and venue. Nor did the friend of the court in the present case "institute” a suit against Ms. Gautz as is claimed on appeal. Rather, the friend of the court, in filing its motion to show cause why Ms. Gautz should not be held in contempt, was merely complying with its statutory duty to enforce the visitation order which had been entered as a result of Mrs. Bert’s petition. We, therefore, conclude that there was no wrongdoing or abuse of authority by the circuit court or the friend of the court in bringing a motion to show cause why the April, 1983, order should not be enforced.
The orders of April and December 20, 1983, are reversed. No costs to either party. | [
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